AEG no longer for sale, Leiweke out

There may have been a temblor in SoCal earlier this week, but today’s news coming out of LA is truly earth shattering. Sports and entertainment conglomerate AEG is having its auction halted. An executive shakeup has also occurred, with longtime CEO Tim Leiweke leaving. Owner Phil Anschutz will be “more engaged” in the company, and COO/CFO Dan Beckerman will now take the reins over Leiweke.

With Leiweke leaving, there is no longer a champion for Farmers Field. Beckerman may have been key to expanding the AEG empire to what it is today, but he’s still a bean counter at heart, not a vision guy. Leiweke was the visible champion for many projects, from Staples Center to MLS (in its early years) to Farmer Field. Unless Anschutz gains a newfound desire finish the job of bringing one or more NFL teams to LA, and Beckerman can sign off on the profit-related compromises that may be required to make it happen, Farmers Field is dead.

Beckerman’s first comments after today’s news spun it as if Farmers Field remains a major priority:

“The Company has a number of interesting business opportunities, and the expertise of the management team and our 26,000 employees around the world will allow us to select those prospects that best enhance the Company’s performance. Priority projects going forward include the development of Farmers Field adjacent to our L.A. Live campus and the pursuit of our plan to bring the NFL back to Los Angeles…”

AEG is only positioning in this manner because it’s potentially more valuable with Farmers Field in the portfolio, even if it’s only a fantasy at the moment. If one of the bidders were to come up with the $10+ billion offer to buy AEG, Anschutz would take it in a heartbeat. That’s not what he’s getting offered, so that’s why the company is being pulled off the table.

What does this mean for AEG’s operations at the Coliseum? It’s all status quo for now. When Oakland/Alameda County get around to settling on the scope of Coliseum City, then things could get interesting.

19 thoughts on “AEG no longer for sale, Leiweke out

  1. Good news for Chargers and Rams fans since it was those two teams that seemed highest on AEG’s wanted list particularly as the first time. Don’t see this changing the Raiders situation much since the NFL always wanted them in Santa Clara first and the group they’ve had more contact with (and who wanted them) in LA was Roski whose plan is still waiting a team.

  2. You never really know for sure, but i’m fairly confident that my Oakland Raiders will not call a stadium on ‘Joe Montana Boulevard’, their permanent home. Maybe play a few games while something else is being built, but not home.

  3. I wonder if Roski’s plan is starting to look favorable to the NFL? Unless Mark Davis, the Spanos clan or Stan Kroenke decide they want to sell majority interest… It ain’t happening.

    • Another LA times fallout report: Anchutz’s offer to Dean Spanos was $249 million for 49% of the team, or $5 million per point. He also wanted a right of first refusal if Spanos sold the team. The low price would be in exchange for footing the bill to build Farmers Field.

      Also – Anschutz was just interviewed and claims that he has spent $45 million so far on Farmers Field. He’s not in that deep to not build it.

  4. The LA Times seems to think he’s in that deep but won’t build it. And frankly it wouldn’t surprise me. If the Chargers have already turned him down, and he doesn’t want the Raiders, he’s fast running out of options. Only team left would seem to be the Rams.

  5. Didn’t finish my thought. Frankly the fact he’s out 45 mil might be why Leiweke is now pounding the pavement. This was his baby, not Phil’s, and Leiweke couldn’t get it done even after having wasted 45 mil of the boss’ cash.

  6. The NFL NBA and MLB need to tell California that they will not get any new stadium without a lilttle public funding.

  7. My feeling is that unless they sell to another group, the stadium isn’t going to get built. NFL doesn’t want to do business with Ed Roski in the City of Industry, only use it as a bargaining chip. And I don’t see how you build a stadium in Elysian Park next to the Dodgers, the logistics are terrible to get into and out of the stadium now, just imagine what a football team would be like as well, the EV residents will fight it to the teeth, there is already a controversy over a local hospital wanting to build market rate housing on the site of their property there and it has been slow to move.

    I think recipe for no progress. And where are the Raiders in all this? stuck at the Coliseum until I think they decide if Santa Clara is truly an option.

  8. At this point for the Raiders, a short-term lease deal at Santa Clara(five to ten years) is a low risk option as a trial run. A determination could then be better made on whether this stadium sharing arrangement and stadium locale would be both acceptable and workable for both the Raiders and their core fans. A return to the Coliseum, whether in a new, renovated, or as is state(minus the A’s) would still be one of the options available to the Raiders.

  9. “The NFL NBA and MLB need to tell California that they will not get any new stadium without a lilttle public funding.”

    And California can reply that they have better things to spend tax dollars on

  10. Aside from a few tax abatements and help with the permitting process, I don’t see how any help can come from CA cities. Mind you, Prop. 30, an improving economy and the work in Sacramento has helped to get the state onto its feet, but still I think long gone are the days that anything other than legislative help will come.

  11. As Bill Walsh and Al Davis were long-time friends, seems like the name of the surrounding streets would would be the least of their concerns about moving in. Assuming the new stadium could be de-49erd enough on a game day to suit the Raiders.

    Follow the money, and if that leads them to Santa Clara, then that’s where they’ll be.

  12. Walsh was an assistant for the Raiders and Davis was the one who recruited DeBartolo himself to keep Wayne Valley from buying the 49ers, so it’s not that foreign.

  13. @Tim, uuuummm not really , Cali would be hurt to lose sports in general trust me.

  14. @Berry,
    Will you just stop for once! Tim is 100% right. There’s a reason why Wolff is planning on PRIVATELY FINANCING Cisco Field in San Jose…(and its not just because he’s a nice guy)

  15. I’m curious how they would handle the statue situation at the new park, if the teams shared for a while. I can guarantee there would be hacksawed statue heads ala the Simpsons.

  16. I think a deal could be put in place to allow Raiders statues somewhere. It’s not really a big deal. Stadium colors, street names… It’s not enough to kill a deal. If the Raiders are paying rent, the Niners aren’t going to screw them over.

  17. So some people are already spinning ideas about the Raiders moving to Santa Clara? Until we hear or see the press conference is just a pipe dream. Same as the A’s moving to San Jose. If one is wondering how shared stadiums work than you would have to look at both the Jets and Giants. The other teams logo and other effects like statues, Championship Trophies, etc are covered up on game day. Some of you guys might remember the story of some Giants personnel being upset that their Super Bowl marquee being covered up by the Jets for a Jets/Giants game. The game was a Jets home game. As for statues who knows, we won’t know unless it actually happens.

    http://www.nytimes.com/2010/09/14/sports/football/14stadium.html?_r=0

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s