Taking them out of San Diego seems to have been a disaster. These missteps could potentially see them on the verge of collapsing given the lack of support in LA, along with the fact I would think no free agents are going to willingly want to move to London...or at least it would seem unlikely. The other question - and maybe those across the pond could shed some light on this - is I don't know salary-wise how taking a deal there would hurt the player vs playing in the states taxes-wise.
But this news could be bad. At least in LA, you're in a stadium everyone at least wants to go to and have a shot at possibly getting back into it and building a fan base. But moving to Europe? I just can't see that working out since it probably wouldn't be competitive unless they're able to figure out a way to make it attractive enough to attract players. Otherwise, they'll be forced to give every free agent a deal they can't refuse to get them.
They'd be better off to move to St. Louis since that city at least cared about football, or another market here in the U.S. But for now, they appear to be a team in limbo who I'm sure, will be in even worse shape when the players/staff hear about this.