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Lions to receive $55.2 million in relocation fees

kalinecountry

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https://www.prideofdetroit.com/2017...million-relocation-fees-rams-raiders-chargers
Lions to receive $55.2 million in relocation fees, per ESPN.
Thanks to the NFL?s constant shuffling of teams, the Lions will get a hefty payday over the decade or so.
PrideOfDetroit

http://www.espn.com/nfl/story/_/id/...st-los-angeles-rams-los-angeles-chargers-645m
Relocation fees to cost Rams, Chargers $645M, Raiders $378M.
espn

The 29 NFL teams that are staying put will each receive a gross sum of $55.2 million over a period of up to 11 years from the relocation fees associated with the moves of the Rams, Chargers and Raiders, sources told ESPN on Wednesday.

The Rams and the Chargers will each pay $645 million beginning in December 2019 and ending in December 2028. Neither the Rams nor the Chargers will receive revenue from the Los Angeles relocation fees.

The Raiders will pay $378 million over 10 years beginning in the year they move to Las Vegas, sources with knowledge of the numbers said. That money will be divided among every team but the Raiders.
 
The logic of Chargers owner Dean Spanos: So instead of just building a stadium on your own dime for $1 billion, for nearly 65% of the price you elect to move from a city you've been in for 50+ years where you are the only product in town to a city that has shown time and again they don't care about the NFL. Not only that, but you have to share a stadium which you do not own whatsoever when it is completed, and in the meantime share an MLS stadium you do not own whatsoever that seats about 30,000 people.

The thought of an NFL team being the least popular of the 8 major sports teams in the 2nd largest city in the country is just hilarious. I hope the Spanos family rots in hell.
 
Wow, that's a lot of money. Did they do this when previous teams moved?
 
It's so stupid. People vote to pay extra taxes to build these team stadiums. I just don't get it.
 
Here is the really amazing part about all of this...

Relocation fees are considered to be a payment to recoup the loss of fans that result, naturally, in a move. There were already NFL fans in Vegas, even though they had no team. They may have been Raider fans, but they also could have been Cowboy fans, Patriot fans, or even Lions fans. The assumption now is they will all jump, and become Raider fans, so the relocation fee is mostly there to buffer the long term cost of fan loss, and to deter teams from moving.

However, according to the NFL charter, a relocation fee is considered a "league fee" which gets split among all 32 NFL teams. It's not quite an even split, as there is a projected impact scale, but it's close.

That means the Raiders, for example, will actually still get their share of the fee's paid by the Rams and Chargers to move. AND.. and this is insane... will get their own share of the fee THEY pay to move.

I learned about this a little while back when the Patriots got hit with the million dollar fine for Deflategate. The Pats had to pay that, but it was divided among all teams.. including the Pats.. because the league charter specifies all league fees and penalties.

It's what allows the NFL to run as a non-profit and not pay taxes, even though they are not a 401(c)3 organization. They actually accrue no revenue, they just oversee the 32 teams that do accrue revenue.

Now, it's not like any of these teams will break even getting a share of their own fee, but you have to admit, it's weird they have to pay this fee, and part of it goes back to them.
 
Here is the really amazing part about all of this...

Relocation fees are considered to be a payment to recoup the loss of fans that result, naturally, in a move. There were already NFL fans in Vegas, even though they had no team. They may have been Raider fans, but they also could have been Cowboy fans, Patriot fans, or even Lions fans. The assumption now is they will all jump, and become Raider fans, so the relocation fee is mostly there to buffer the long term cost of fan loss, and to deter teams from moving.

However, according to the NFL charter, a relocation fee is considered a "league fee" which gets split among all 32 NFL teams. It's not quite an even split, as there is a projected impact scale, but it's close.

That means the Raiders, for example, will actually still get their share of the fee's paid by the Rams and Chargers to move. AND.. and this is insane... will get their own share of the fee THEY pay to move.

I learned about this a little while back when the Patriots got hit with the million dollar fine for Deflategate. The Pats had to pay that, but it was divided among all teams.. including the Pats.. because the league charter specifies all league fees and penalties.

It's what allows the NFL to run as a non-profit and not pay taxes, even though they are not a 401(c)3 organization. They actually accrue no revenue, they just oversee the 32 teams that do accrue revenue.

Now, it's not like any of these teams will break even getting a share of their own fee, but you have to admit, it's weird they have to pay this fee, and part of it goes back to them.

states in the article every team but the relocating team gets a portion of the fees. which would make more sense.
 
states in the article every team but the relocating team gets a portion of the fees. which would make more sense.

I don't "think" the article is accurate based on what I understand, but obviously, I am no journalist or expert.
 
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