The City of San Diego announced April 20 that it has hired investment banker Citigroup and law firm Nixon Peabody to assist with developing possible financing options and related development for a potential new stadium for the San Diego Chargers.
“The hiring of nationally recognized experts,” Mayor Kevin Faulconer said, “is another positive step toward creating a real and responsible stadium plan. These experts in finance and negotiation will help make sure taxpayers get a fair deal. They have a proven track record of getting NFL stadiums done and will ensure that the financing plan we put together in San Diego is rock solid. We’re making progress toward a real solution that can garner broad public support.”
New York-based Citigroup has experience in the development and execution of public and private financing plans for stadiums, ballparks and arenas. Its recent projects include the new Atlanta Falcons stadium; MetLife Stadium (used by the New York Giants and Jets); the New York Mets’ Citi Field and the Orlando Magic’s Amway Center. The New York projects included stadium revenue pledges – including naming rights, premium seating, advertising and sponsorships – under consideration in San Diego.
International law firm Nixon Peabody has provided advice on more than 25 professional sports facilities. Earlier this month, the City Council and the county board of supervisors unanimously approved a partnership between the city and county to work collaboratively and share consultant costs for a potential new stadium for the Chargers.
Each government will pay half the costs for the retention of consultants, attorneys and other experts in stadium financing and development matters. Under the agreement, each shall not contribute a total of more than $250,000.
Faulconer had previously appointed a nine-member group of civic leaders – the Citizens’ Stadium Advisory Group – to advise him on the best location for a new stadium and how to pay for it. The group recently recommended the current Qualcomm Stadium site in Mission Valley as the best location and plans to release a proposed financing framework in May.
Nixon-Peabody was selected for the Chargers negotiations following interviews conducted by city and county staff, the City Attorney’s Office and the Office of County Counsel. Citigroup was selected following the city’s request-for-proposals for an investment banker to validate any financing options included in a stadium plan.