A trio of local owners have taken control of LAFC, Bloomberg reported earlier this week.
Apollo Global Management senior partner Larry Berg told Bloomberg that he has become lead managing owner of the club, which is set to begin play in MLS in 2018. Berg also said that Brandon Beck, co-founder of Riot Games and co-creator of the popular video game League of Legends, and Bennett Rosenthal, co-founder of Ares Management, are now co-managing owners of the club. All three are local to LA and had previously been limited partners in the club.
Berg’s announcement has been reflected on LAFC’s website, which now lists former LAFC managing partner Henry Nguyen as vice-chairman and owner.
“It’s easier to energize with local ownership,” Berg told Bloomberg. “It’s amazing what a difference it makes.”
In addition to the ownership changes, there are also developments surrounding LAFC's soccer-specific stadium on the site of the old LA Sports Arena in South Los Angeles.
Bloomberg reported that the loan for the $350-million stadium, which will seat 22,000, will be collateralized solely with revenue from the facility, making it the first stadium loan of its kind in MLS history. According to Bloomberg, previous MLS stadium loans included recourse debt, which means that team owners were responsible for paying back debt holders if revenue from the stadium fell short.