Succeeding in the National Football League (NFL) is as much a business sport as it is an on-the-field one. A total of 32 teams each work towards not only winning Super Bowl Rings but also maximizing their value. Two teams that have recently moved to Los Angeles, the Los Angeles Rams and the Los Angeles Chargers, provide a clear example of this. The Rams are worth an estimated $4 billion while the Chargers stand at $2.6 billion. It’s time to delve into the reasons why the Rams command an additional $2 billion in overall value compared to their cross-town rivals.
The first critical point is their stadiums. The team’s respective locales and their facilities make a huge difference in their valorization. The Rams share the brand-new So-Fi Stadium with the Chargers, but it’s important to note that the construction of this $5 billion arena was led by Stan Kroenke, the Rams owner. The very design of the stadium, the largest in the NFL, reflects the Rams. It has unequivocally branded the Rams as LA’s team in the eyes of the fans, which has significantly boosted their value.
Secondly, the fan base cannot be overlooked. New to Los Angeles in 2016 and 2017 respectively, the Rams and Chargers faced the challenge of building a fandom in a city without an established NFL following. The Rams managed to leverage the power of branding and marketing to attract LA residents. NFL games are more than just sports events; they are social events with a strong bond to the local community. The Rams not only capitalized on LA’s large population but also skillfully fostered a powerful bond with their fans, making them a cherished town symbol.
Another critical factor is the team’s on-field performance. Historically, the Rams are the more successful franchise. The team has made it to the Super Bowl on four occasions and has brought home the prestigious title once. On the other hand, the Chargers have reached the Super Bowl stage only once, where they suffered a defeat. The Rams’ consistent performance and their greater historical success have garnered more public attention, thereby increasing their value.
Furthermore, media and sponsorship deals, another significant contributor to a team’s value, also tilt heavily in favor of the Rams. The Rams have struck lucrative deals due to their popularity and performance, boosting their income and, consequently, their value. Moreover, their merchandise sales are notably higher than the Chargers, thanks again to their larger and more devoted fan base.
Lastly, the role of ownership and leadership cannot be ignored. The Rams’ ownership has shown more investment, both financial and emotional, into building a successful franchise. This increased investment leads to higher levels of fan engagement, more publicity, and better-quality players and staff members. As such, the Rams appear more attractive to potential investors, naturally driving up their value.
Thus, when one examines both franchises’ stadiums, performances, fan bases, media deals, merchandise sales, and ownership, it’s clear to see why the LA Rams are worth a staggering $2 billion more than the LA Chargers. It is a combination of strategic decisions off the field and impressive performances on it that have resulted in the Rams establishing themselves as one of the premier football franchises in the world.
