SAN DIEGO -- Goldman Sachs, the longtime investment banker of the San Diego Chargers, is committed to cover any operating losses suffered by the team in the first few years of a potential relocation to Los Angeles, along with any costs for renovations necessary to a temporary venue, according to the Sports Business Journal.
Mark Fabiani, the point person on the stadium issue for the Chargers, would only confirm that the team has a long-standing working relationship with Goldman Sachs and that the investment banking firm will work with the Chargers on a finance plan for a new stadium in the Los Angeles market.
"We are in a hypercompetitive environment regarding Los Angeles at this moment, and so we won't be releasing specifics on our work with Goldman Sachs," Fabiani said. "The bottom line is that we, along with Goldman Sachs, are completely confident that the Raiders/Chargers L.A. stadium proposal can feasibly be financed."
The Chargers and the Oakland Raiders announced a partnership to build a $1.7 billion stadium in Carson, California, last month. Both teams said in a joint statement that they remain committed to finding a solution in their home markets but will continue to work in Carson to preserve their options in the event that efforts in their local markets fail.
The proposal was in response to an announcement in January in which a developer and a company operated by St. Louis Rams owner Stan Kroenke unveiled plans to build a stadium on land he owns near Hollywood Park.
Goldman Sachs also worked on the financial plan for Levi's Stadium, home of the San Francisco 49ers. The expectation is that the NFL stadium in Carson would be financed in a similar manner, using the selling of personal seat licenses as a revenue stream.
"In our view, we've concluded that the financing of the stadium here in Carson is very viable and is doable," Tim Romer, a managing director of Goldman Sachs, said during the announcement of the new stadium in Carson. "And we're committed to helping get this done. It's important to note that the financing will follow the model used up in Santa Clara. The financing will not rely on general fund moneys. The financing will not rely on taxes, new or existing. The taxpayers and the general fund will be isolated and protected from the financing.
"The financing which we provide will rely solely upon the revenue generated by the stadium from football and other events."
Although the Chargers are keeping their options open in Los Angeles, Fabiani said the team would take a less lucrative option for a new stadium to remain in San Diego.
A citizens' stadium advisory group appointed by San Diego Mayor Kevin Faulconer will hold a public forum Monday at Qualcomm Stadium to discuss a potential location and finance plan for a new stadium.