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How LAFC’s Banc of California Stadium deal pays off instantly

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A lot of money at play here, but LAFC recoup most of what they paid to get in MLS.

MLS: LAFC Groundbreaking Ceremony Gary A. Vasquez-USA TODAY Sports

Los Angeles Football Club announced a stadium naming rights deal with Banc of California on Tuesday during their stadium groundbreaking event, and the details emerging from the deal shows an interesting development on one front for the club.

Bloomberg reported on Tuesday that the deal to name the expansion team’s new home Banc of California Stadium is a 15-year, $100-million deal, making it the most lucrative to date in MLS and bigger than some reported deals in “bigger” U.S. pro leagues.

What else does that $100 million figure represent? It means LAFC will nearly recoup their expansion fee to get into MLS, which was $110 million.

Now, LAFC paid their expansion fee, in full, long ago, and the Banc of California naming rights deal appears to be a deal that will be paid out in increments over 15 years.

But taking the largest MLS expansion fee to date and recouping nearly that entire investment in principle a year and a half before the team will even take the field? That seems unusual, but if the club is attracting major investment now, then the massive cash outlay to get into MLS and build their own stadium can hopefully be put towards other segments to make the team, on and off the field, successful for many years to come.

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