Will Relocation to Los Angeles Help the Rams Attract Free Agents?
For the last 21 years, America’s most popular sports league hasn’t had a physical presence in arguably the nation’s most glamorous city. But with the Rams moving back to Los Angeles from St. Louis, that is about to change.
With all due respect to St. Louis, few places in the world are as vogue and alluring as L.A., where Hollywood, sunshine, fashion, big stars, an opulent nightlife and a large population of unarguably beautiful people reside.
Does that mean the NFL‘s return to the city will compel more free agents to join the long-struggling Rams? The city’s charms certainly won’t hurt, especially since so many NFL players call Southern California home. But as many of the people who represent said players pointed out, there are a multitude of factors at play.
The Glitz Factor
New York has the rich media culture and big population with endless opportunities. Miami has the gorgeous weather and hot nightlife. But there isn’t another city in America with such an ideal blend of top-tier entertainment, lifestyle and weather.
You’d have to think that would be a major draw for players looking to pursue media or entertainment careers, as well as those who just want to live the Hollywood life.
There are precedents that establish that. Agent Jack Bechta, whose company, JB Sports, represents about two dozen current and former players, has spent most of his career in Southern California. He had clients on the Los Angeles Raiders and remembers how cool it was for those players to be members of that team before it left for Oakland in 1995.
“You roll out with those guys, and I don’t care if he was the 53rd guy on the team, he was a superstar in L.A.,” Bechta said. “You’re rolling into the Forum Club with Charlie Sheen and Snoop Dogg. You really become a celebrity overnight, because L.A. is such a big market and there are only so many athletes.”
It’s true. The Greater Los Angeles Area has about 18.5 million residents. It’s the second-largest media market and the second-largest urban region in the United States, and yet for the last two decades, it has possessed two 15-man basketball teams, two 25-man baseball teams and two 23-man hockey teams. Lakers and Dodgers players have always been heavily celebrated, but the city hasn’t had a ton of options on the professional level.
“It’s a great opportunity for guys who are really looking to build a brand,” Bechta said. “They might want to use L.A. as a launching pad. If you’re one of the five or 10 best players on the L.A. Rams, you’re going to be a minicelebrity in that market.”
What happens when we get beyond that top five or 10? VIP access to the Forum Club (or its modern equivalent) aside, agents, publicists and managers I spoke with for this story generally agreed that second-rate members of the Rams wouldn’t likely benefit much from a marketing-and-entertainment standpoint.
“It’s really four or five guys per market, depending on the team. Could be less, could be a little more,” said Brian Amlani, an L.A.-based talent manager who represents NFL players Willis McGahee and Perrish Cox, among others. “Those guys really get the majority of the endorsements, and everybody else kind of has to bottom-feed off of local advertisers like car dealerships.”
And the thing about car dealerships is they exist everywhere. Yes, there are more in L.A. than in St. Louis and every other city with a smaller population, but the local endorsement market is diluted. Pro athletes in Los Angeles are forced to compete for those roles with stars from the music and entertainment industry.
On the bright side for impending free agents, the Rams lack stars in a major way. And what’s more, right here and right now, the No. 1 spot in L.A. is up for grabs. With Lakers legend Kobe Bryant set to retire this summer, the city will be left looking for a new legend. And the Rams aren’t bringing a single superstar with them from Missouri.
The next face of the Rams could also become the face of sports in the so-called Entertainment Capital of the World. The cross-promotional prospects are impossible to ignore.
“From a social and popularity standpoint—an off-field income potential earnings standpoint—there is no real megastar, if you will,” Bechta said. “So if you’re a free agent who has a big personality, and you want to have a career in front of the camera and build your social following, and everything being even on the money, L.A. is probably a place you would lean toward for those opportunities alone.”
After releasing defensive end Chris Long, linebacker James Laurinaitis and tight end Jared Cook last month, the Rams enter their first offseason back in L.A. with more than $50 million in salary-cap space.
That’s a good thing, because as Bechta pointed out, it’s doubtful many players will give the team a discount just in order to relocate to Tinseltown.
“Players do come here because of the limelight of Hollywood, even because they want to get into movies, being in the mix with directors and producers and all of that stuff,” Amlani said. “I just don’t know that players are going to take a pay cut to do so—maybe guys toward the end of their careers who want to get into media and TV and film. Maybe they’d consider that, but I think players go for where the money’s at.”
Some agents could even go out of their way to ensure their clients don’t become, well, deer in the limelight, because the optics associated with opting to play somewhere for nonfootball reasons aren’t always positive.
“Would a player rather wake up every day looking at the ocean than an ice storm? Sure! Will players who believe they are budding ‘entertainers’ place a disproportionate value on L.A. being the place to play? Absolutely,” said agent Jeff Sperbeck, who has represented over 100 NFL players in his career. “Unfortunately, it’s those players whose careers end sooner than others who place a higher priority on football.”
Going Home
But what if a free agent is drawn to Los Angeles simply because it’s closer to home? After all, Southern California is a hotbed for football talent.
According to analysis of 2015 opening-day rosters conducted by USA Football, California and Florida were the only states with more than 200 active NFL players. And a 2014 study by Scout found Southern California had produced more NFL players (153) than any other region in the country, topping South Florida (122) by a 25 percent margin.
“What plays in more than you guys think is where guys are from, and that’s why L.A. will be a draw,” said agent Brad Cicala, who has worked on a lot of second deals for veterans. “I have guys from Florida who have gotten offered more money on the West Coast—not a ton more, but maybe the terms and conditions were a little different—but chose to stay east just because they’re used to being in the east. I imagine you would get the same effect in L.A. I know some of my guys from L.A. would love to play there.”
Cicala said L.A. will be particularly attractive to L.A.-based veterans who want to wrap up their careers in front of family and friends, especially if they have media aspirations—Hollywood aside, NFL Network’s studios are situated in nearby Culver City—but he’s “not certain that guys would take less money to play there.”
Publicist Denise White, who runs EAG Sports Management, said she’s yet to meet a young athlete who is willing to take less money contractually “just to play in a certain city,” but she did leave the door open for veterans to offer up an L.A. discount.
“It does happen at the end of an athlete’s career, though,” she said, adding that she believes L.A. “will be the hottest free-agent destination” going forward.
Is It Worth It?
Each of the six agents who offered their opinions and expertise on this topic were quick to point out that living in California has its financial disadvantages.
To consider: California has the highest personal income tax rates in the country, with marginal top rates of 13.3 percent, per the Tax Foundation. By comparison, no other state with an NFL team has a top marginal personal income tax rate above 10 percent.
And on the other end of the spectrum, Florida, Texas and Washington (home to the Dolphins, Buccaneers, Jaguars, Cowboys, Texans and Seahawks) have no state income taxes at all.
“I do think that state taxes in California are a big negative, and I would always warn my players from establishing their residence in the state of California. But not every player thinks about things like that,” said agent Louis Bing, managing director at Zoe Sports. “If it came down to California vs. Florida, with both states having great entertainment and weather, it would be a no-brainer for an athlete to choose the state with no state taxes.”
Also to consider: living in that region is expensive. A 2014 study of cost-of-living index statistics by USA Today found California had the sixth-highest average cost of living in the country. And per LA Weekly, in 2013, Esquire called Los Angeles the most expensive city in America for “living well,” while in January the Telegraph tabbed it the 10th-most expensive city in the world.
“Cost of living might play into it. I have that with guys with the Giants and Jets and even Redskins. These are expensive places to live compared to where some of these guys are coming from,” said Cicala, who noted moving from a place like Indianapolis to a place like New York or L.A. represents “an extreme step up” in that respect.
Bechta says good agents always cover these seemingly ancillary factors with their clients.
“Let’s say you have Jacksonville, Tampa and the L.A. Rams bidding on a free agent, and they all throw $15 million a year at him,” Bechta said. “The flip side of that now becomes the cost of living and taxes. In California, 10 percent of your contract is going to go to state taxes versus Florida, which is zero. So, you’re looking at an extra $1.5 million per year in your pocket. Add cost-of-living expenses…and it’s at least another $100,000, maybe $200,000 in your pocket [in Florida].
“In Jacksonville, for $2 million, you can live like a king and have one of the best houses around,” Bechta added. “But $2 million doesn’t really get you a whole lot in L.A. It might get you a two-bedroom condo in Brentwood.”
The reality is there’s no indication the Dolphins have been getting discounts from free agents despite the fact Florida has no state income tax, and there’s no evidence the Lakers or Dodgers—who have by far the largest payroll in Major League Baseball—have been stealing free agents from teams located in less chic cities.
“I don’t think [California] is going to be detrimental to the Rams, but I don’t think it gives them quite the advantage some might think,” Cicala said. “When the sharp agents and managers break out what the tax consequences are going to be, I think it’s going to balance out a little bit.”
It’s Personal
A sharp agent or manager is also likely to remind his client that he might fit in better or have a stronger chance of flourishing in one market than another—regardless of the aforementioned advantages associated with playing in a vibrant city that might be closer to home.
“These are the peeling-the-onion conversations that agents have with their clients,” Bechta said. “Where is the team for you, fit-wise, to play the most? To blossom? What offense or defense is perfect for you? That’s really the initial conversation.”
Of course, for a lot of players, the opportunity to win also trumps most, if not all of those factors. So, it would probably help if the Rams—who are mired in an 11-year playoff drought during which they’ve posted the second-worst record in football behind only the Raiders—would actually start winning some football games.
“All things being equal, L.A. would certainly be appealing to a free agent based on its weather, culture and overall allure,” Sperbeck said. “But rarely are all things equal. Smart players with good guidance will evaluate the likelihood of success on a comprehensive level. They understand that scheme, coach, management, history of success, ability to win a Super Bowl and culture are every bit as important for their career longevity, ergo their financial security, than is the lifestyle that a city can provide.”
The final takeaway here might be that these decisions vary so much from player to player we’re unlikely to establish a particular trend. Young players might be inclined to stay close to home or live in a cool place like L.A., but you don’t typically get to decide where to play until you’re four seasons into your career. And even those who do reach free agency aren’t typically in high enough demand to completely control where they might go.
With all of the above factors in play, it seems most players will see L.A.’s seductive qualities as perks rather than deal-breakers.
“There’s not a universal answer for all players,” veteran agent Neil Cornrich said. “It really depends. Is the player a highly compensated star who puts the lifestyle over the cost of living? Or is it a player who would prefer to save every penny and have lower taxes and a lower cost of living? Is it a person who loves California and the weather, grew up there and has family there? Or is it a person who is from the other side of the country and it’s hard for his family to get out there to see him play?”
We’re talking about a small group of players to begin with, and money almost always speaks loudest. But on the other hand, all it takes is one high-profile free agent to become dead-set on La La Land for the Rams to start reaping the benefits associated with their new home.
All quotes obtained firsthand unless otherwise noted.
Brad Gagnon has covered the NFL for Bleacher Report since 2012.
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