AEG Worldwide to Increase Funding of New Los Angeles Stadium
July 26, 2011
Billionaire Phil Anschutz’s AEG Worldwide will take on a bigger share of the costs of the project to build a new Los Angeles football stadium than originally proposed.
The project, unhealthy if approved, symptoms would be the second NFL stadium out of the 23 built since 1992 to be financed entirely by private funds, according to a report. AEG would earn an estimated 6.7 percent annual return, less than half the rate of a typical stadium developer.
AEG, owner of the Staples Center basketball arena, has proposed putting the stadium on an adjacent site and bringing a National Football League team back to Los Angeles, the second- largest U.S. city. AEG has made concessions including paying for parking garages in an effort to win over city officials.
City Administrative Officer Miguel Santana said: “This is a significantly different deal than the one that was given us.”
The City Council is holding public hearings on the plan this week, and is expected to vote in August.