Over the past ten years, franchise valuations in the fiercely competitive NFL have surged dramatically, reflecting a variety of factors ranging from market size and ownership strategy to team performance and brand power. Among these, the Rams and Chargers, two teams in Los Angeles, stand out for reasons more than merely their rivalry on the field: there is a big difference in their different valuations. The Los Angeles Rams are worth around $2 billion more than the Los Angeles Chargers according to the most recent Forbes appraisal. However, why?
Brand and Market Awareness
The Rams have a long history in Los Angeles, having first settled there in 1946 and remaining there until 1994 when they relocated to St. Louis. They later returned in 2016. They have been able to amass a devoted following that has lasted decades thanks to this historical relationship. In contrast, the Chargers left San Diego in 2017 after 56 years of residence. They have been in Los Angeles for a few years, but they haven’t been able to create the same kind of presence as the Rams.
Investment and Ownership
In the NFL, ownership is important, and Stan Kroenke, the owner of the Rams, is among the richest and most powerful owners in sports. Real estate entrepreneur and sports billionaire Kroenke also owns teams in the Premier League, NHL, and NBA. His goal for the Rams was always to establish a worldwide brand, which is best represented by the $5 billion SoFi Stadium in Inglewood, rather than only focus on the team.
Star Power and Performance
The Rams have been one of the more successful NFL teams since moving back to Los Angeles. Under head coach Sean McVay, they emerged as contenders very fast, making many trips to the postseason and taking home the Super Bowl LVI title in 2021. The Rams’ on-field performance has contributed to their ability to draw in top players, keep a high profile, and establish themselves as one of the best teams in the league.
The LA Factor
As the country’s second-largest media market, Los Angeles attracts a lot of attention from sports clubs. It’s also a famously difficult market to succeed in, since people have limited tolerance for mediocrity and a plethora of entertainment options. The Rams have been able to establish themselves as LA’s club by attracting the attention of the city with their winning formula, elite players, and cutting edge stadium.
In Summary
The Los Angeles Rams and the Los Angeles Chargers have a $2 billion valuation difference that can be linked to a combination of market strategy, ownership, performance, and history. The Rams have become one of the most valuable teams in the NFL by effectively utilizing their longstanding ties to Los Angeles, as well as an aspirational ownership group, an amazing stadium, and recent on-field accomplishments.