Market Power

Musings by an academic economist on the power of markets and the power over markets.

Friday, February 18, 2005

The Rams Want a New Carpet

The St. Louis Rams want a new playing surface in the dome in St. Louis. What are their options if they don't get it? One is a lawsuit. Here is another option:

As part of the stadium lease deal negotiated between the Rams and St. Louis officials a decade ago, the dome had to remain in the top 25 percent of stadium facilities in the NFL after 10 years - or remain a first-tier facility. If not, the Rams could move the franchise.
Ah, market power at work. Los Angeles has no NFL team, and owners around the country have no qualms in pointing that out to their host cities/lease holders. How long will it be until that stick no longer has the oomph to scare host cities/lease holders into giving teams what they want?