A California judge has voided a $400 million deal between the city of Inglewood and the companies behind SoFi Stadium, a decision that significantly alters the financial landscape of the Hollywood Park development. The Sept. 1 ruling by Superior Court Judge David Reinert declares the 2015 development agreement invalid, marking a major victory for the city in its protracted legal dispute with entities associated with Rams owner Stan Kroenke.
The legal battle centers on the validity of the agreement that facilitated the transformation of the former Hollywood Park Racetrack into the sprawling complex that now houses SoFi Stadium, the YouTube Theater, and other real estate ventures. Hollywood Park argues that Inglewood owes approximately $400 million for infrastructure and other investments made under the contract. Conversely, the city contends that the agreement is unenforceable.
The stadium companies initiated a lawsuit against Inglewood in December 2025, shortly after the city challenged the deal's legitimacy. Skip Miller, lead counsel for Inglewood, stated that the decision has profound implications for the 300-acre development, asserting that without a valid agreement, Hollywood Park/SoFi Stadium loses its vested rights, and the city is absolved of its obligations under the 2015 Development Agreement.
Representatives for Hollywood Park expressed disagreement with the ruling and are considering an appeal. "We respectfully disagree with the Court’s ruling," a spokesperson told LA Local. "Hollywood Park has fulfilled every one of its commitments under an agreement that the City unanimously adopted, described as ‘the best [stadium deal] ever’, and benefited from for more than a decade. We remain hopeful that the City and its leadership will reverse course from their unilateral decision to abandon their commitments under the agreement and will honor their part of the deal."
Under the terms of the 2015 deal, Kroenke's companies agreed to cover upfront infrastructure costs, with reimbursement from Inglewood to follow. City payments were contingent upon Hollywood Park generating $25 million in annual tax revenue for Inglewood. The companies claim this revenue threshold was met in 2022 and has been surpassed each year since.
Inglewood's challenge to the agreement's validity focused on the process used for its approval. According to LA Local, over 22,000 signatures supported the project before the City Council's unanimous approval in February 2015. This process allowed the development to proceed without the extensive hearings, reviews, and voter approvals typically required for projects of such magnitude.
Judge Reinert's decision was influenced by existing California court precedents that had invalidated similar development agreements tied to the initiative process, dating back to the 1990s. "Therefore, here too, the Development Agreement must be set aside," the ruling stated.
The dispute arises amid increasingly strained relations between Kroenke and Inglewood Mayor James Butts, who were once allies in bringing the NFL back to the area. Hollywood Park's attorneys have accused the city of altering its stance after the project's completion and subsequent financial benefits. Mayor Butts indicated that Inglewood was unaware of the potential legal issues surrounding the agreement at the time of its approval in 2015.
"This is the ruling right now, and we agree with it," Butts said. He also expressed a desire to continue the partnership, stating, "I look forward to talking with them and seeing what we can do to move forward as partners."
If Reinert's decision is upheld, the parties will need to negotiate a new arrangement to govern the development. SoFi Stadium is slated to host the 2027 Super Bowl and the Opening Ceremony for the 2028 Olympics.