WADR:

Posted on: May 12, 2020 at 21:32:43 CT

A quick internet search indicates Kroenke's net worth is estimated to be about 10 billion. His wife's net worth is estimated to be about 8 billion.

It is highly likely that virtually all of Kroenke's major assets are held by separate legal entities and therefore each entity's assets are insulated from the liabilities of the other entities.

If memory serves, the Rams stadium is being built on the on the old Hollywood Park Race Track (yes, it's a long way from Hollywood, but that was the name). If memory serves, it's a couple of thousand acres and the centerpiece of a Kroenke, commercial, office and residential development. They are undoubtedly separate entities and the assets of each entity are almost certainly insulated from the liabilities of the other entities. In time, the development may well be worth more than the Rams and their stadium.

The St. Louis litigation is a long way from being completed. The standards for keeping a case in court are substantially lower in pre-trial than the standards for winning at trial. Additionally, if the case goes to trial and the Rams lose, they have the options of appeal or filing a Chapter 11 Reorganization.

The St. Louis litigation could well drag on for years, perhaps a decade or more. Dragging out a case until the plaintiff runs out of energy, motivation and funds and then settling is a time tested defense strategy.

Clearly, the Rams did not anticipate the cost overruns they've experienced on their stadium (for what it's worth the cause of the overruns is supposedly increased demand for construction materials, etc. in LA due to the fact that LAX is also being renovated.

Finally, Kroenke and Jerry Jones, the Cowboys owner and widely regarded as the most powerful NFL owner, are reportedly great friends. It's tough to see Jerry rolling over on anything that would reduce the NFL's power.

All in all, while the Rams Stadium project has not gone according to plan and the Rams have lost the preliminary rounds of the St. Louis litigation, this story is a long, long way from its ending. Betting against a multi-billionaire in these situations doesn't seem like a particularly wise course of action.

One final thought, legal fees can be very high, i.e. it wouldn't surprise me if the hourly rates for the Rams' chief counsel are in the range of $3,000 to $5,000 per hour. But even at those rates a hundred million buys a lot of lawyer time.

Edited by ScottsdaleTiger at 21:47:11 on 05/12/20