What's next for the Chargers? - KUSI News - San Diego, CA

What's next for the Chargers?

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What's next for the Chargers? What's next for the Chargers?

SAN DIEGO (KUSI) - Are the Chargers on the doorstep and on their way out of San Diego?

Mark Fabiani, spokesman for Dean Spanos, has confirmed the NFL has begun working on a framework for a deal that would send the Chargers to Inglewood with the Rams.

Fabiani sent KUSI this statement:

"We are at the very earliest stages of the process. And of course, Dean has to decide whether he wants to go in that direction in the first place."

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Related video: Phone interview with Inglewood Mayor James Butts Jr. 

Meantime, here are the pros and cons of a Chargers exit.

The good news for San Diego is the city gets up to another year to work something out.

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But if the Chargers are intent on going to Inglewood, they will have to let the city know fairly soon, according to Erik Bruvold of National University's Institute for Policy Research.

"The Chargers are going to have to make some decisions well within the next 60-days as to what they're gonna do moving forward," Bruvold said.

In Inglewood, there are incentives for Rams owner Stan Kroenke to get another team sooner rather than later because of a restricted clause in the resolution the owners passed.

"The restriction in the resolution on  Kroenke is going out and selling PSLl's or naming rights and other stuff until February of 2017," Bruvold said.

But that restriction goes away as soon as he gets another team.

"Kroenke's really got an incentive now to sit down and see of there's a deal with Spanos because clearly it would be in his interest to be able to get out into the marketplace and start to market the naming rights, the PSL's, suites," Bruvold added.

The downside for the Chargers is being a tenant as opposed to being an equity partner. A lot of the revenue streams would be off limits to a tenant, but a lot of debt comes with being an equity partner.

"The difference between, they don't own the stadium so they don't pay any debt at Qualcomm, versus if they become an equity partner in Inglewood they would be on the hook for tens of millions of dollars in debt servicing," Bruvold said.

Bruvold estimates $40 to $50 million a year.

"That puts the Chargers in a sort of strategic disadvantage which is how do you try to control and contain costs," he said.

San Diego presents another set of problems. One is the mayor remaining committed to the Mission Valley site. If he sweetens that deal, he may lose voters and lose the team over the ballot measure.

"Now to ask them to put, especially  the non-football fans, putting in more money I think that's just not going to be easy to get passed by the voters," Bruvold said.

He believes we'll know in a couple of weeks whether the Chargers are committed to San Diego.

"If the Chargers within two weeks are actively engaged with the city trying to craft something, really focused on making a deal in San Diego, I think it will be a pretty clear sign they can't live with the initial terms from Inglewood," Bruvold said.

What we don't know is the amount of resources Kroenke wants from a partner. 

On the other hand another team offers 10-more Sundays at the stadium, and if Spanos stays home Kroenke still has the Raiders option in his back pocket.



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