The ongoing conflict between Inglewood and the companies involved in SoFi Stadium has escalated, as a judge has ruled the long-standing $400 million agreement invalid.
In a decision made on September 1, Superior Court Judge David Reinert delivered a significant win for the city in its legal battle against firms associated with Rams owner Stan Kroenke, leaving the financial dynamics around the extensive Hollywood Park project uncertain.
Hollywood Park contends that Inglewood owes approximately $400 million for infrastructure upgrades and other expenses incurred under the contract. However, the city argues that this agreement is not enforceable, according to reports.
The legal troubles began when the stadium companies filed a lawsuit against Inglewood in December 2025 after the city questioned the contract’s legitimacy.
Skip Miller, the lead attorney for Inglewood, stated in a press release that “this decision has huge repercussions for the 300-acre SoFi Stadium/Hollywood Park development.” He emphasized that without a valid development agreement, the area tied to Hollywood Park and SoFi Stadium lacks vested rights, relieving the city of any obligations stemming from the 2015 Development Agreement.
Hollywood Park is contemplating an appeal, asserting its disagreement with the ruling. A spokesman indicated that they hold a different view of the court’s decision.
The dispute could potentially unravel the arrangement that transformed the former Hollywood Park Racetrack into the large-scale development now featuring SoFi Stadium, YouTube Theater, and additional real estate projects.
Under the 2015 agreement, Kroenke’s firms had initially financed infrastructure costs, expecting reimbursements from Inglewood down the line. Payments from the city were meant to start only after Hollywood Park brought in $25 million in tax income for Inglewood in a single year.
The companies maintain that this revenue threshold was met in 2022 and has been consistently reached each year since.
However, the central issue revolves around the agreement establishing these financial responsibilities. Inglewood claims that the approval process for the development did not create an enforceable contract.
Over 22,000 signatures were collected in support of the project before the City Council unanimously approved the stadium’s development in February 2015. This approval process allowed the project to proceed without the extensive hearings and reviews typically required for public ventures of this magnitude.
Judge Reinert noted that California courts have previously invalidated similar development agreements linked to the initiative process dating back to the 1990s, leading him to rule that this Development Agreement must also be annulled.
This ruling has emerged amid growing tensions between Kroenke and Inglewood Mayor James Butts, who were once partners in bringing the NFL back to the region.
Hollywood Park’s legal representatives have accused Inglewood of altering its stance only after the project was completed and started generating financial benefits. Butts claimed that the city was unaware of potential legal issues related to the agreement when it was ratified in 2015.
While he acknowledged the ruling, Butts expressed a desire to move forward in partnership despite the ongoing legal battle, stating, “I look forward to talking with them and seeing what we can do to move forward as partners.”
If Reinert’s decision stands, Hollywood Park will have to evaluate whether a new arrangement can replace the one that has been in place for over ten years. SoFi Stadium is set to host the 2027 Super Bowl and will also be the venue for the Opening Ceremony of the 2028 Olympics.
