San Antonio Chargers

Posted by on Wednesday, November 7, 2018 in National Football League.

Interview with San Antonio Business Journal.

Our mayor has indicated that San Antonio leaders should reach out to Los Angeles Chargers ownership, in light of that team’s severe struggles in finding support in the City of Angels.

  • Do you believe there is merit to San Antonio at least initiating dialogue with the Chargers/why?

Yes because the negative-sum relocation of the SD Chargers into a 2-team LA market also occupied by the Rams was an economically inferior move to begin with. The League essentially shot itself in the foot by adding competition to a monopoly market in LA.

This was a negative-sum move because 2 NFL monopoly markets are always economically superior to one duopoly market, regardless of market size. The converse is also true: the positive sum relocation of the weaker dual market team to a monopoly market is always profit superior for the League. So the League as a whole would be better off without the self-defeating bottom line competition with itself in LA.

San Antonio-Austin is the next best available market for the League (assuming equal public stadium deals). This was also true with the heavily subsidized move of the Oakland Raiders to Vegas. So the devil of the new SA relocation proposal ultimately lies in the details of the stadium deals in SA and LA.

  • Do you believe that Jerry Jones still wields most of the power in the NFL and, thus, will remain a roadblock to San Antonio, or has he lost some of that power in more recent years due to his fight with Goodell and his involvement in the Rams, Chargers and Raiders moves?

Jerry Jones remains the defacto Commissioner of the NFL, and the San Antonio market extending to Mexico City belongs to Los Vaqueros. Jones owns about one-third of Legends, a hospitality-marketing company that sold the suites and sponsorships for the Rams, Raiders and Chargers relocations. So even if the Chargers were to relocate to San Antonio, Jerry jones could conceivably make money from the new opponent in Central Texas.


 

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