NFL and Rams reach more than $700 million settlement in St. Louis relocation case, report says

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  • St. Louis officials are seeking $1 billion in damages after the Rams relocated from St. Louis to Los Angeles in 2016.
  • The reported settlement comes just before the trial is set for January.
  • Earlier this month, the NFL and the Rams lost an attempt to try the case elsewhere in Missouri rather than in St. Louis, the team’s former home.

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National Football League and Los Angeles Rams owner Stan Kroenke has settled with officials in St. Louis for more than $700 million, St. Louis Post-Dispatch Reported on Wednesday.

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The settlement stems from a 2016 lawsuit over the Rams’ relocation to Los Angeles. The city, St. Louis County, and the Regional Conference and Sports Complex Authority sued the NFL and the Rams in 2017. He claimed that the league did not honor itself. Conduct goodwill talks to prevent relocation policy and relocation of the Rams from St.

The agreement also comes just ahead of a test set for January. Earlier this month, the NFL and the Rams lost an attempt to try the case elsewhere in Missouri rather than in St. Louis, the team’s former home.

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The defendants in the lawsuit are Kroenke Sports & Entertainment, owner of the Rams, and their owners of other 31 professional football teams. The suit sought at least $1 billion in damages.

NS St. Louis Post-Dispatch As previously reported, the parties have agreed to settle the matter, noting that the amount is $790 million.

The NFL declined to comment, and representatives for the Rams did not return requests to discuss the settlement.

The NFL also risked sensitive documents about NFL owners’ finances becoming public when the case reached hearing. Louis Circuit Judge Christopher McGraw, who handled the case, last October issued fines of nearly $44,000 to four NFL owners for failure to turn over financial documents. Another hearing on the matter was also scheduled in December.

St. Louis officials sought financial damages, claiming they suffered damages when the Rams moved to Los Angeles. The move left St. Louis with debt on the team’s former stadium, which was built with public funds.

Officials alleged that the city lost $1.85 million in entertainment and ticket tax collections and $3.5 million per year, $7.5 million in property taxes and $1.4 million in sales taxes, losing more than $100 million in annual revenue. Happened.

The suit also claims that St. Louis County also lost hotel, property and sales tax revenue after the Rams relocated. According to the suit, the impact on the state is more than $15 million, which used data from the Missouri Department of Economic Development.

According to the suit, St. Louis officials also asked for a piece of the inflated valuation linked to the Rams’ transfer. That total assumes $1 billion.

In addition, the NFL risked headlines by litigating Super Bowl LVI in early 2022 as well as being played at the Rams’ new home complex, Sophie Stadium.

So, settling down before that was a “smart move,” sports attorney Irwin Kishner told CNBC on Wednesday.

“The fact is that the St. Louis judicial system is overwhelmingly supportive of the hometown,” Kishner said. “Why go through years of litigation, paying millions of fees, and facing the uncertainty of a lawsuit? It just makes sense so people can focus on the finer things.”

When asked about the reported amount of more than $700 million, Kishner called the amount “reasonable,” but did not comment further. “We don’t know enough about it,” he said, questioning whether the settlement would be paid for years or in advance.

Patrick Riche, director of the sports business program at the University of Washington, called the large settlement figure “unprecedented,” especially when considering matters like this that usually favor sports leagues and owners.

“If you asked sports officials or sports lawyers four years ago, ‘How do you think this case is going to be settled?’ I think most people would have said zero,” said Rish. “So for City to walk with about $800 million, it’s not only phenomenal, it’s going to make a mark with every team and every league.

“Ownership and the league will need to be transparent, forthcoming and rule compliant otherwise this can happen,” Riche said.

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