Why the NFL and LA Rams will have to pay a $1 Billion settlement to the city of St. Louis
Time is running out for LA Rams owner Stan Kroenke and the NFL to settle out of court before their scheduled trial in January. The NFL filed a motion to have a 2017 lawsuit against the LA Rams dismissed, but the judge denied the request. This means that the case will go to trial unless a settlement is reached soon.
The lawsuit is centered around the LA Rams moving away from St. Louis. They are being accused of illegally transferring to their new city, Los Angeles, and causing financial turmoil to the city of St. Louis. This is a major accusation against both the team and the league. To say it will be expensive to fix is a bit of an understatement.
LA Rams and NFL should prepare to settle for at least $1 Billion
Getting tied up in a massive public trial is not something that the NFL, or any other major corporation, is generally interested in. Typically the most beneficial plan of action for these types of situations is to settle out of court. A settlement would grant guaranteed money to the accusers rather than risking losing a trial and getting nothing.
NFL fails to get St. Louis lawsuit dismissed. Absent a settlement, the NFL will stand trial on various claims arising from the relocation of the Rams. And people like Stan Kroenke and Roger Goodell will be grilled in open court. wp.me/pbBqYq-c1qr
A settlement is probably the smartest option for the LA Rams and the NFL as well. A public backlash, especially in today's social media world, would be a PR nightmare that they would much rather avoid. In addition, if they were to lose the trial then the price to pay financially could be extreme. Settling before trial would at least give them more control of how much they are paying.
According to Daniel Wallach and Front Office Sports, experts familiar with the case suggest that even one billion dollars could serve as a starting point for a settlement. Additionally, they are reporting that the value of the inflated losses in revenue in St. Louis could potentially exceed 10 billion dollars. As a result, a one billion dollar settlement could be a bargain for the LA Rams and the NFL.
From @FOS: NFL, Rams face billion-dollar trial, via @ByAJPerez (+ insights from me). The 🔑 to a 10-figure verdict will be whether the relocation fee and increased team value are recoverable damages. Jury gets first crack, appellate court gets last word. frontofficesports.com/newsletter/fos…
The timing of the trial, if it does in fact get there, is an interesting situation. The NFL Playoffs will be taking place at the same time the trial is scheduled to start in January. The LA Rams have a great shot at being a playoff team this year after looking very strong through two games played so far. The organization would want all of the attention on a potential Super Bowl run, not a lawsuit.
Finally, to make things even messier, this season's Super Bowl is scheduled to be played at the home of the LA Rams, the SoFi Stadium. That's a big reason why the NFL probably wants this entire thing to go away as quickly as possible. The easiest way to do that is to come to a settlement before the trial arrives.