Categories
Sports

The NFL eyes a return to LA

The NFL may be readying a return to the City of Angels.

Or not.

Owners of the league’s 32 teams are slated to huddle on Jan. 12 and 13 in Houston to weigh proposals from the Chargers, Raiders and Rams for relocating to Los Angeles. The owners also will hear from San Diego, St. Louis and Oakland — the teams’ current home cities — about plans to keep the teams put.

The showdown stems from a mismatch between America’s most popular sport (according to a poll last year by Harris Interactive) and its second-largest city, which has been without a team since the Rams and Raiders decamped following the 1994 season.

(For more on why the teams left Los Angeles and why no team has returned since then, read here.)

In February, Roger Goodell, the NFL commissioner, formed a committee made up of owners of six teams. Goodell charged the panel with overseeing the application of the league’s relocation guidelines if a team or teams applied to move.

The guidelines reportedly give deference to keeping teams in place if their home cities can accommodate – generally meaning fork over their share of the cost of a stadium – them. But the owners can do what they want, according to a lawyer who represented the Rams in their move from Los Angeles.

“It doesn’t matter one iota,” Mark Levinstein, the attorney, told Sports Business Daily recently, referring to the guidelines. “It is written for litigation. The goal is to be able to say to jurors, ‘We had a good reason,’ when the reality is, ‘We had 28 guys voting for God knows what reasons. And we don’t want all the discussion and back-room dealing and all the rest the focus of the case.’”

The cities themselves have until this Wednesday to present proposals for blocking a move, which requires a three-fourths vote. Teams have until a week later, on Jan. 4, to apply for a move.

Rams owners Stan Kroenke – a billionaire who also owns a majority stake in the English Premier League club Arsenal, the Denver Nuggets, the Colorado Avalanche, and Major League Soccer team Colorado Rapids – has announced plans to build a domed stadium in Inglewood, about 12 miles southwest of downtown Los Angeles.

The Chargers and Rams have proposed to build and share an outdoor stadium in Carson, about 14 miles further south.

For their part, officials in St. Louis have offered to build a $1 billion stadium using mostly public funds. Officials in Oakland, which is still paying off its share of upgrades to the stadium where the Raiders play currently, say they would like the team to stay and suggest they might forgive the $100 million in debt the team owes on the building in return for the Raiders’ agreeing to remain.

San Diego has proposed to build a $1.1 billion stadium for the Chargers, but the team has rebuffed the plan, saying the city will be unable to persuade voters to commit to paying roughly a third of the cost.

In early December, the Rams told the NFL they would consider partnering with the Chargers or Raiders (they didn’t say which one) on the stadium in Inglewood, a compromise that might help persuade owners to back the Rams’ bid.

Though taxpayers nationwide have paid 60% of the $10.5 billion spent on new NFL stadiums since 1990, researchers concluded in a study published in 2011 that local communities derive few economic benefits from stadiums, sporting events and franchises.

Categories
Finance News

How the blockchain benefits financial transactions

A patent filing in early December by Goldman Sachs hints at the promise of digital currency to speed financial transactions.

The investment bank aims to create a cryptocurrency called SETLcoin, which would guarantee execution and settlement of securities trades within minutes, according to the filing.

The move, which was reported by American Banker, mirrors similar efforts by banks worldwide. At least 42 financial institutions, including JPMorgan Chase, Citigroup, Bank of America and Barclays, have joined a consortium that is developing distributed ledger technologies. Some of the same banks also have teamed up with the Linux Foundation to develop open-source software for business transactions.

To appreciate the potential of peer-to-peer technologies for exchanging stocks, bonds and other assets, consider the process as it exists currently. As described in the filing by Goldman:

“As implemented by [SETL.coin], a trader no longer trades securities by meeting at an exchange with an indication of cash for security and then settles the transaction seconds, hours, or days later, meanwhile bearing all of the associated credit risk in the interim.

Traders using the described technology exchange securities by presenting an open transaction on the associated funds in their respective wallets. SETLcoin ownership is immediately transferred to a new owner after authentication and verification, which are based on network ledgers within a peer-to-peer network, guaranteeing nearly instantaneous execution and settlement.”

The promise of the network turns on the so-called blockchain, a database for recording and verifying transactions that was developed in connection with the exchange of bitcoin, a digital currency that is traded independent of banks and governments.

In “Digital Gold,” his book about the origins of bitcoin, Nathaniel Popper summarizes the steps that form the process for exchanging bitcoins. As Popper describes a hypothetical exchange:

“To recap, the five basic of the bitcoin process were laid out as follows:

Alice initiates a transfer of bitcoins from her account by signing off with her private key and broadcasting the transaction to other users.

The other users of the network make sure Alice’s bitcoin address has sufficient funds and then add Alice’s transaction to a list of other recent transactions, known as a block.

Computers take part in a computational race to have their list of transactions, or block, added to the blockchain.

The computer that has its block added to the blockchain is also granted a bundle of new bitcoins.

Computers on the network start compiling a new list of unconfirmed recent transactions, trying to win the next bundle of bitcoins.”

For bitcoin, the blockchain enables the movement of money without a bank or central authority. For banks, the blockchain promises to virtually eliminate the risk that arises during the lag between a transaction and its settlement.

As Oliver Bussmann, chief information officer of UBS explained in August to CIO.com, instantaneous settlement means that someone who buys a share of stock for $100, for example, would settle the trade at $100, compared with a trade that takes days to clear, during which time the value of the share might fall, with the buyer bearing the risk.

Magnify that and you can understand why banks are experimenting with the blockchain. “The ability to do those changes within minutes or seconds instead of waiting two days for an execution… is a big change,” Bussmann said.

 

 

 

Categories
Sports

Warriors win streak ends at 24

It had to happen eventually.

The Golden State Warriors ended their NBA record of 24 straight wins when the Milwaukee Bucks topped them 108-95 on Saturday.

The first five minutes of the game foretold the outcome. The Warriors looked tired on the last stop of a seven-game road trip and seemed unable to get their offense going.

In the end, Golden State shot 6 for 26 from three-point territory. Stephen Curry, the Warriors all-galaxy point guard, hit just 25% of his shots from beyond the line or about half as many as he has sunk from outside the arc all season.

Center Greg Monroe led the Bucks with 28 points.

https://twitter.com/andrewbogut/status/675899017973342208

Warriors’ interim coach Luke Walton dismissed a suggestion that the loss spelled relief for his team. “Losing sucks,” he told reporters. “Even if you are 24-1, losing still sucks.”

Still, Walton speculated that his players might experience “a little relief mentally” now that pressure to maintain the streak has ended.