In a stunning reversal of fortune, St. Louis city officials accepted $790 million to settle litigation against the NFL and Los Angeles Rams owner Stan Kroenke, which had been lodged in 2017 by the St. Louis Regional Convention and Sports Complex Authority, the City of St. Louis, and the County of St. Louis, according to media reports.
Randy Karraker, 101 ESPN Radio morning host, was surprised by the paltry sum.
“I thought that if they settled that it would be closer to the date of the trial and I was surprised at $790 million because the way the lawsuit is written, the actual damages if St. Louis would have won, would have been at about $4 billion,” Karraker told the St. Louis Record.
The settlement was reached in mediation last week.
“I had been told that the St Louis side was going to participate in the mediation as a courtesy, simply as a show of good faith and good faith negotiating,” Karraker said. “The speculation is that the plaintiff's team that weren’t attorneys, because plaintiffs for a mediation have to be represented by somebody who is not an attorney, were in the mediation session and liked the idea of settling, avoiding a trial and just taking a bird in hand, as it were.”
Forbes Media estimated that the NFL’s franchises were valued at some $91 billion in 2019.
“I wonder if there was an outside influence that was forced by the other parts of the plaintiffs who weren't the attorneys,” Karraker added. “It shocked me when we got word last Wednesday morning that they finalized it.”
A pre-trial hearing was set for Dec. 3 and jury trial proceedings were scheduled to begin on Jan. 10.
“Within 30 days of last Wednesday, the league has to write that check and it will be placed in separate accounts,” Karraker said. “One account is for the city, county, and Regional Sports Authority and then the attorneys get 35%.”
The firms representing the city plaintiffs are Dowd Bennett and Blitz Bardgett & Deutsch. Their fees amount to $276.5 million.
Although Karraker didn’t expect a $4 billion settlement, he thought the case was well worth more than $790 million.
“People who were close to it and directly involved seemed happy with $790 million,” he said. “The mayor of St. Louis, the county executive of St. Louis County, and Dave Peacock from the Stadium Task Force were all happy with the $790 million offer.”
On Nov. 24, St. Louis Mayor Tishaura O. Jones and St. Louis County Executive Sam Page issued a joint statement.
"Today, St. Louis City, County, and the Regional Convention and Sports Complex Authority signed a $790 million settlement agreement with Rams owner Stan Kroenke and the National Football League," said Jones and Page in a statement online. "This historic agreement closes a long chapter for our region, securing hundreds of millions of dollars for our communities while avoiding the uncertainty of the trial and appellate process. The City, County, and STLRSA are still determining how settlement funds will be allocated. We will provide more updates as they become available."