AEG, the sports and entertainment mega-firm, which owns the Los Angeles Galaxy and the Staples Center, among other things, is set to announce a $700 million naming rights deal with Farmers Insurance for a NFL stadium to be built in downtown Los Angeles.
AEG is one of two groups pursuing an NFL team for LA, but this deal certainly pushes it to the forefront. A deal for a yet to built stadium for a nonexistent team has to be the first of a kind, not to mention the largest naming rights deal ever made in North American sports.
AEG's proposed stadium is estimated to cost $1 billion and while its site may be preferred by city leaders, whether the city is willing to issue $350 million in bonds as AEG has requested is yet to be seen. In addition, AEG has to convince an existing NFL franchise to move to LA, while also convincing the owner to sell the team.
There are certainly a couple of franchises that have enough stadium issues to be in play, San Diego and Minnesota chief among them, but there is as yet no deal. Still, this deal substantially increases the likelihood that a team that comes to LA will be owned by AEG and will play in a downtown Farmers Insurance Stadium.