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Let's Try to Figure Out How Much of Downtown LA AEG Owns

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LA Live owner AEG has been put up for sale and the impact on the city and Downtown in particular could be huge. The company owns shares in the Kings and the Lakers, and they're working on a Downtown NFL stadium project that currently hangs in the balance (the city has approved it and now the NFL is taking the matter under consideration). AEG is privately-held so no one really has any idea what it's worth, but the Downtown News has taken a run at valuing its holdings in Downtown, since "a major portion of the buyer's investment will immediately make it a Downtown power broker"--they say their estimate is "as conservative as possible" and comes to about $4.4 billion. (Meanwhile, various sources have estimated the company's total value at $7 to $10 billion.) Let's run the numbers:

LA Live: $1.1 billion
LA's baby Times Square includes Regal Cinemas, Club Nokia, Nokia Theatre, the West Garage (with 2,667 spaces), East Garage (with 774 spaces), and two mixed-use office buildings that house ESPN studios, the Grammy Museum, and more. Combined, revenue from parking, rent, billboard fees amounts to about $55 million annually.

Farmers Field: $0-$700 million
AEG's proposed Downtown NFL stadium "may be one of the most valuable AEG holdings in Downtown? or it could be worth nothing." Yep, sounds about right. If the stadium is built, obviously it'll be worth a ton, but right now all they have is the permission to build plus a $700 million naming rights deal with Farmers Insurance.

Staples Center: $1.34 billion
In 2009, Staples "was the most lucrative North American sports arena," according to Forbes. It hosts the Lakers, King, Clippers, and Sparks, plus events like concerts and the X Games. A source says it had operating profits of $67 million in 2011.

South Park lot: $15.9 million
AEG owns a 60,000 square foot parcel at Olympic Boulevard and Georgia Street, right next to the under-construction double Marriott building (which it does not own).

JW Marriott: $329.2 million
The hotel shares a tower with the Ritz-Carlton hotel and the Ritz-Carlton Residences. DN's experts think its 878 rooms are worth about $375,000 each.

Ritz-Carlton Hotel: $49.2 million
The 123 Ritz rooms are estimated at about $400,000 each.

Marriott/Ritz hotels together: $435.2 million
The DN thinks there's a premium on the property since AEG has a 25-year city tax break "worth an estimated $246 million, or about $10 million per year."

Ritz-Carlton Residences: $154.2 million
There are 72 condos left in the 224-unit Residences (which share a tower with the Marriott and Ritz hotel). Average price per square foot in the building this year has been $836, and unsold units include "several penthouses."

Piece of the LA Kings: $208.8 million
A source says AEG owns "at least 90%" of the Stanley Cup-winning team, which was valued pre-championship at $232 million. The value will probably be higher if the new owner holds onto Staples too (since otherwise they'd have to pay rent).

Piece of the Lakers: $243 million
This gets a little complicated--Philip Anschutz, who heads AEG's parent company, owns 27 percent of the Lakers, but he's including that in the AEG sale. Altogether, the team is worth about $900 million.

AEG Live/Goldenvoice/AXS Ticketing: $854.7 million
The concert promotion arm of the company is second in the industry only to Live Nation. [Image via Sterlingdavisphoto / Curbed LA flickr pool]
· Downtown's $4.4 Billion Giant-Breaking Down AEG's Local Holdings [Downtown News]


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Farmers Field

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