Los Angeles Rams owner Stan Kroenke's recent acquisition of the Los Angeles Angels baseball team is drawing attention not just for the addition to his sports portfolio, but for the potential real estate implications. While some speculate Kroenke might move the Angels closer to his Rams' SoFi Stadium, experts familiar with his business dealings suggest the primary interest may lie in the approximately 152 acres of land beneath and around Angel Stadium in Anaheim. This prime Southern California location is described as highly desirable, with access to freeways, public transportation, housing, and entertainment.
However, Kroenke is purchasing the baseball team, not the land itself. The City of Anaheim currently owns Angel Stadium and the surrounding property. The team's lease agreement for the stadium has been extended through 2032, with options that could keep them in Anaheim until 2038. Any control or development of the city-owned land would necessitate a separate agreement with Anaheim, potentially through a long-term ground lease, development agreement, partnership, or even an outright purchase. Such a disposition of city land would require a public process.
The acquisition of the team, however, grants Kroenke significant leverage in future negotiations with the city. The value of the stadium site is intrinsically linked to its primary tenant, and Kroenke will soon control that tenant. Anaheim's future plans for the stadium district would likely require negotiation with the owner of the Angels.
Kroenke, known as a real estate developer, has a history of using sports venues as anchors for larger developments. The Hollywood Park development surrounding SoFi Stadium, home to his Rams, includes entertainment, offices, housing, and retail. A similar opportunity exists in Anaheim, where a previous stadium development plan envisioned thousands of homes, millions of square feet of commercial space, hotels, restaurants, and a renovated or replaced ballpark. An earlier agreement in 2020 to sell the site to the Arte Moreno family for approximately $320 million was ultimately canceled in 2022 amid a corruption investigation.
Any future deal involving the Anaheim land is expected to undergo intense scrutiny due to the previous failed process. Kroenke may need to structure an agreement that lowers his effective cost through infrastructure commitments, affordable housing, and public space contributions. The headline purchase price for the team may not reflect the full scope of the transaction's value.
While moving the Angels to Los Angeles is a possibility, it faces hurdles including site acquisition, navigating approvals, stadium construction, and abandoning an established fanbase. Anaheim, conversely, offers a large existing site, a stadium, infrastructure, and proximity to other attractions. The possibility of relocation also serves as bargaining power for Kroenke. Ultimately, the strategic acquisition of the Angels may be less about moving the team and more about positioning Kroenke to control and develop the valuable real estate in Anaheim.