The fate of a new NFL stadium in downtown L.A. — and the return of pro football to Los Angeles — has been called in doubt by AEG's decision to put itself up for sale.
That's the implication from today's L.A. Times' man-on-a-wire profile of AEG CEO Tim Leiweke, which depicts the executive as furiously trying to sustain support for an NFL stadium in downtown L.A. as the company he effectively built goes on the block.
It's starting look as though Phil Anschutz — the Colorado billionaire who owns AEG — has been tangling with the NFL over just how much it would cost him to get the critical element of the stadium project in place: the team. This is from the LAT:
Anschutz, 72, risked billions of dollars backing AEG's Los Angeles developments starting with Staples Center in the late 1990s, and he insisted on being rewarded with a piece of a football team at below-market value, some observers said. Team owners have been clear, however, that they believe a discount sale would devalue all their franchises at a time when team prices have been dramatically rising.
Colony Capital and its Chairman, Tom Barrack, are reportedly among the bidders for sports and entertainment giant AEG.
Anschutz Entertainment Group, lovingly referred by every sport and concert fan in the Southland as AEG, has put itself up for sale. This is potentially a true humdinger of a deal for Phil Anschutz, the reclusive Denver billionaire who started AEG a decade-and-a-half ago and has — with this considerable assistance of Tim Leiweke, who has run AEG day to day — build the enterprise up into a giant that could be worth anywhere from $4 to $8 billion, according to various reports, speculations, and back-of-the-envelope math on the privately held and somewhat secretive company.
The bidders are lining up, led by the richest man in L.A., Patrick Soon-Shiong, who took a shot at the Dodgers earlier this year and already owns a small stake in the Lakers (AEG owns a third of the team). His $7-billion-plus net worth wasn't enough to get to the finish line, however, even in partnership with $8-billion-plus-net-worth hedge funder Steve Cohen.