Experts in stadium economics estimate the Angels generate $100 million in revenue annually at Angel Stadium, but Anaheim only receives a small portion of that total since the revenue formula relies on ticket sales rather than the overall cash value generated by those sales.
Only $1.6 million in revenue has been generated since 2010 for Anaheim by way of food and merchandise sales at Angel Stadium, but City Council members say they want the team to pay market-based rent in a new lease agreement, which means that the team should pay whatever rent the city can get by renting out its 155-acre stadium land.
Stadium finance expert Neil deMause stated that obtaining rent from the Angels during the next lease negotiations would be a wise move for Anaheim, as the income will not be dependent on how well their teams perform in terms of attendance at games and other events.
There’s no evidence that baseball and football stadiums generate revenue for towns during the off-season, according to sports economist and Chicago University professor Allen Sanderson, who doesn’t dispute with deMause’s rent assessment.
As far as I can see, there is nothing else you can do with the stadium. So, the Major League Baseball teams have the lion’s share of the leverage in stadium discussions,” Sanderson said.
When negotiating with a monopolist, “you’re not going to do well,” as the saying goes.
When it comes to negotiations, Anaheim needs to be more proactive, and willing to let the team go.
To avoid losing money on the deal, Sanderson advised, “You have to be more hard nosed or whatever in terms of talks and you must be willing to let the team depart.”
In contrast to retail malls, which are open 24/7 throughout the year, baseball stadiums, according to him, have a much more limited business season.
In addition to concerts and other events throughout the year, Sanderson said arenas can house both a National Hockey League club and a National Basketball Association team, and “you can make that pay or get close to paying.”
How Much Are The Angels Worth?
The Los Angeles Angels have a net worth estimated at 2.2 billion dollars in 2022.