Inglewood wins a legal victory over its most famous building

LOS ANGELES — The World Cup was supposed to be a moment of unalloyed triumph for the city of Inglewood and the owner of SoFi Stadium, the signature sports venue where the United States will play its final group-stage match today, against Turkey.

But the estranged partners have been embroiled in a long-simmering legal dispute, and now Inglewood has emerged with a victory in court that could have major ramifications for California property-rights law long after the soccer world has moved on from the city.

Hollywood Park, the sprawling mixed-use property that includes the $5 billion-plus stadium filed two lawsuits against the city after it struck a deal last year with digital billboard company WOW Media to install signs in Inglewood, including near the stadium.

In one complaint, Hollywood Park, which is controlled by Stan Kroenke — the billionaire who also owns the Los Angeles Rams, SoFi’s marquee occupant — alleged that the city’s billboard deal “siphons” money from its property. In its second lawsuit, Hollywood Park sought about $400 million from Inglewood that it said it was owed for public infrastructure upgrades and other improvements, arguing the city was required to reimburse those costs once certain tax revenue thresholds were met.

But the city countered that the development agreement cited by Hollywood Park was unenforceable because it was adopted through an initiative approved by voters — and not a legislative body, the far more common route.

Now, Inglewood has prevailed. A Los Angeles Superior Court judge upheld, in a ruling dated Tuesday, the long-term agreement between the billboard company and the city, affirming that it did not violate the law.

In an interview with POLITICO, Inglewood Mayor James T. Butts sought to lower the temperature, extolling Hollywood Park as a “great partner,” adding that “there is no animosity between” the city and the property owner. And he said that the litigation has not put a damper on enthusiasm for the World Cup.

SoFi, which opened in 2020, is drawing praise from soccer fans and athletes alike. Tens of thousands of visitors have poured into Inglewood, a city of roughly 100,000 just southwest of Los Angeles, and the games have unfolded without major incident.

“We’re appreciative for the partnership that we’ve had” with Hollywood Park, Butts said. “And I believe that these issues will be worked out as they should be — during negotiation. This is just a great time for us, and it’s a great time for SoFi.”

In a statement, a Hollywood Park spokesperson said that the developer would appeal the court’s decision.

“We respectfully disagree with the Court’s decision regarding the City’s long-term agreement with WOW and continue to believe that leasing public rights-of-way in this manner is inconsistent with state and municipal law,” the spokesperson said. “...Despite the court’s decision, Hollywood Park remains committed to continuing its investment in Inglewood and supporting the community’s long-term success.”

WOW CEO Scott Krantz said in a statement that the company was pleased with the court’s “decisive ruling,” adding that the agreement with Inglewood delivers “significant, ongoing revenue” to the city. “WOW has enjoyed a long, successful, and mutually beneficial partnership with Inglewood, and we look forward to strengthening that relationship in the years ahead,” he said.

Butts characterized the skirmish with Hollywood Park as a “business dispute,” adding that the city has “the right to self-determination.”

“The reality is even the best of partners will have business disputes,” he said, noting that SoFi Stadium, also home to the Los Angeles Chargers, will co-host the 2028 Summer Olympics opening ceremony and swimming events.

Butts said he might attend a forthcoming World Cup match at SoFi, which will host the U.S. team’s game on Thursday against Turkey. “I likely will,” he said. “But that’s not what I’m here for — to go to games. I’m here to oversee the city’s public safety and quality of life, and parking and traffic response. That’s the thrill for me.”

Inglewood also prevailed in a similar legal challenge from the owner of Intuit Dome, a nearby arena developed by billionaire Steve Ballmer that is home to his Los Angeles Clippers. A representative of Intuit Dome did not immediately respond to a request for comment.