ANAHEIM, Calif. — An attorney representing Los Angeles Angels owner Arte Moreno is looking to recoup $5 million in "transaction costs" from the city after the $320 million deal of Angel Stadium fell through.

What You Need To Know

  • An attorney for Angels owner Arte Moreno wants the city to reimburse his client for transaction costs incurred after the Angel Stadium land deal fell through

  • The attorney said Moreno's real estate firm spent $5 million in title, escrow, legal and other fees

  • A city spokesperson said they are questioning the validity of the deal and will seek guidance from the city council

  • The city council voided the $320 million sale of Angel Stadium and surrounding land to Moreno after former Mayor Harry Sidhu was implicated in an FBI corruption probe involving the deal. Sidhu denied any wrongdoing

Allen Abshez, representing SRB Management, the real estate firm controlled by Moreno, sent a letter to the city saying that SRB is entitled to recover costs such as out-of-pocket title, escrow, legal and other inspection fees because the city rejected the deal. 

Abshez sent the letter Wednesday.

Anaheim spokesperson Mike Lyster said the city has already agreed to return the $50 million escrow deposit, and SRB would not seek a court order "compelling a sale, other legal positions and questions remained for future discussions."

"We continue to have concerns about whether the agreement any claim is based on is even valid, given what has recently come to light," said Lyster in an emailed statement to Spectrum News. "Nevertheless, we will process a claim as we would any other and look to any pending discussions with SRB as well as any guidance from our city council."

The letter is the latest fallout involving the city and Moreno regarding the voided sale of the 150-acre Angel Stadium and its surrounding parking lots. 

The Anaheim City Council voided the preliminary approved deal a day after the resignation of former Mayor Harry Sidhu, who was implicated in an FBI corruption probe involving the $320 million stadium land deal. 

The FBI alleges Sidhu, who led the city's negotiation team with the Angels, rushed the deal's approval in 2020. In return, upon the city finalizing the agreement, which was supposed to be this month, the FBI claims Sidhu planned to approach an Angels executive for a $1 million political contribution toward his reelection campaign in November.

Sidhu, through an attorney, denied any wrongdoing. 

Lyster said the city council will discuss the issue in a future meeting.