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Rule #1

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Indianapolis Star

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The legal means of watching or listening to NBA games are NBA League Pass Broadband (for US, or for International; both cost money) and NBA Audio League Pass (which is free). Look for them on NBA.com.

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City, Colts agree on 30-year lease

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  • #1

    City, Colts agree on 30-year lease

    Colts here for another 30 years !

    August 31, 2005
    City, Colts agree on 30-year lease

    State and team must finish separate development deal
    New site: A $500 million stadium for the Colts is planned for this site, south of the RCA Dome. Groundbreaking, originally set for Aug. 1, can't take place until a stadium development agreement between the state and the Colts has been finished. -- Kelly Wilkinson / The Star

    About the deal
    Negotiation is always a game of give and take. Here's what both sides got in the lease deal:

    What the city got:

    • Requires the Colts to play all home games in the new stadium until 2034.

    • Forbids Colts playing home games elsewhere or negotiating a relocation.

    • Requires the team to keep its headquarters and training facility within the city.

    • Ends the city's previous obligation to make up the difference between the team's annual revenues and the NFL median.

    What the team got:

    • Retains the Colts' rights to all football-related revenue in the new stadium, as well as half the annual nonfootball revenue up to $3.5 million.

    • The team receives all revenues from a stadium name, signs and sponsorships in the new stadium.

    • The city's Capital Improvement Board is responsible for maintenance of the new facility and game-day expenses such as security.

    • The team gets space to develop a restaurant and Hall of Fame at its own cost and risk.


    By Brendan O'Shaughnessy
    brendan.oshaughnessy@indystar.com

    The Colts and the city reached agreement Tuesday on a 30-year lease for a new stadium, putting pressure on the state to finish separate negotiations on how the $500 million stadium should be built.

    The 85-page document formalizes a deal announced in December and ensures that the Colts will stay in the city until at least 2034, said Fred Glass, chairman of the Capital Improvement Board, which negotiated the deal. The board will operate the stadium.

    "The lease means the Colts will be here for a generation," Glass said. "Folks can feel comfortable buying their grandkids a Colts T-shirt."

    The lease governs everything from the Colts' tenure in the new stadium to who gets to use the building for up to 200 events per year other than pro football. The pact includes the team's $250,000 annual rent, the number of parking spots available and the Colts' rights to any new revenue created at the stadium.

    The agreement outlines use by future NCAA basketball tournaments and makes room for the Convention Center expansion that will pump thousands of jobs and billions of dollars into the city's economy, Glass said.

    "We are pleased to have reached agreement on all issues with the CIB related to the lease and look forward to the successful completion of all other unfinished agreements," Colts owner and Chief Executive Officer Jim Irsay said in a prepared statement.

    But groundbreaking, originally scheduled for Aug. 1, can't take place until a stadium development agreement between the state and the Colts has been finished. Time is becoming an issue if the new stadium is to be ready for use in the 2008 season.

    The Indiana Stadium and Convention Building Authority was created by state legislators to work on the development agreement. That agreement will lay out the stadium's design and exactly what it will contain, including everything from the planned retractable roof to the number of seats, suites and even where concession stands will be located.

    Once the authority builds the stadium and expands the Convention Center, it will hand over operation of both facilities to the Capital Improvement Board. The lease governs the team's relationship with the city after that.

    No date has been set for finishing the development agreement, but authority officials have said they are getting close. Glass said Chairman David Frick congratulated him on completion of the lease and pledged to continue working toward an agreement as quickly as possible.

    The authority has no money to operate until the lease and development agreements are signed, allowing financing to begin. So far, the Capital Improvement Board has lent the authority about $10 million for design work and other preparations so the project can begin quickly once all the agreements are signed.

    The board gave Glass the authority to sign the lease as soon as all agreements are ready. Major work, such as digging the foundation for the new stadium before the ground freezes for winter, can't begin until the authority money begins to flow.

    "We think we've created momentum, and hopefully all the other dominoes will fall," Glass said. "We've really done what we can do."

    The lease obligates the Colts to play all home games in the new stadium, forbids negotiations to relocate and requires the team to keep its headquarters and training facility within the city. It also ends city payments required in the previous lease to make up the difference between the team's revenues and the NFL median, a growing expenditure that helped prompt the new stadium deal.

    In return, the Colts retain the rights to all football-related revenue in the new stadium, as well as half the annual nonfootball revenue up to $3.5 million. The Colts also will receive all revenues from a stadium name, signs and sponsorships in the new stadium.

    The board will continue to be responsible for most game-day expenses such as security.

    The agreement gives the team space to develop a restaurant and Hall of Fame at its own cost and risk. The board has the right to develop enterprises around the stadium's new boundaries.

    "We're happy the lease is completed," said Deputy Mayor Steve Campbell. "This is another step forward for the whole project."

    The stadium is being paid for through a combination of food and beverage taxes in the Indianapolis metro area, hotel and car rental taxes in Marion County and $100 million from the Colts. The city agreed Tuesday to help the Colts get a lower interest rate to finance their share of the stadium's cost.

    Glass emphasized that there were few surprises but said the city succeeded in negotiating a few more favorable details. For example, he said the team could get a court order to ensure the board maintains the facilities, but it can't use something such as field maintenance as an excuse to break the lease and move away, as other teams have threatened.

    "It was important for us not to give away at the drafting table what we'd won at the negotiating table," Glass said.

    http://www.indystar.com/apps/pbcs.dl...04/1004/SPORTS

    Why Not Us ?

    Tags: None
  • #2
    Re: City, Colts agree on 30-year lease

    YAY!!! Take that LA

    Comment

    • #3
      Re: City, Colts agree on 30-year lease



      Awesome. Can't wait for the new stadium...ahhh the first game there.........

      Super Bowl XLI Champions
      2000 Eastern Conference Champions




      Comment

      • #4
        Re: City, Colts agree on 30-year lease






        LA :finger:

        Comment

        • #5
          Re: City, Colts agree on 30-year lease

          Yeah, screw LA.

          Super Bowl XLI Champions
          2000 Eastern Conference Champions




          Comment

          • #6
            Re: City, Colts agree on 30-year lease

            Nobody in LA even wanted the colts, so I don't know what you guys are talking about. Nobody around here gives a crap about football, OK.

            17 Million people and not one team has made it over MULTIPLE attempts.

            You guys got worried over nothing.
            “Success is not final, failure is not fatal: it is the courage to continue that counts.” - Winston Churchill

            “If you can't be a good example, then you'll just have to serve as a horrible warning.” - Catherine Aird

            Comment

            • #7
              Re: City, Colts agree on 30-year lease

              Originally posted by Los Angeles
              Nobody in LA even wanted the colts, so I don't know what you guys are talking about. Nobody around here gives a crap about football, OK.

              17 Million people and not one team has made it over MULTIPLE attempts.

              You guys got worried over nothing.
              Ok lets be specific here, people in LA have a lot more things to do and keep themselves occupied year round, unless there is a sports Figure like Shaq or a sports team is doing great and making a championship run, which then makes that place the "place to be seen at" then and only then the fans will attend.

              But it is not the Fans that is driving this. The NFL will have a franchise in LA within the next 5 years because it's all about the dollar signs, the Politicians and Investors will come out with some numbers on how much money they can bring to the NFL by having one back in LA the second largest market in the us and I think its like the 4 largest economy in the WORLD ? and once again regardless of the lack of fan Support the NFL will plop down another team in LA...You can bet on it, so In my humble opinion it has nothing to do with the actual Fans wanting a team, and everything to do with the bottom line.

              Why Not Us ?

              Comment

              • #8
                Re: City, Colts agree on 30-year lease

                Originally posted by Frank Slade
                Ok lets be specific here, people in LA have a lot more things to do and keep themselves occupied year round, unless there is a sports Figure like Shaq or a sports team is doing great and making a championship run, which then makes that place the "place to be seen at" then and only then the fans will attend.

                But it is not the Fans that is driving this. The NFL will have a franchise in LA within the next 5 years because it's all about the dollar signs, the Politicians and Investors will come out with some numbers on how much money they can bring to the NFL by having one back in LA the second largest market in the us and I think its like the 4 largest economy in the WORLD ? and once again regardless of the lack of fan Support the NFL will plop down another team in LA...You can bet on it, so In my humble opinion it has nothing to do with the actual Fans wanting a team, and everything to do with the bottom line.
                You hit the nail on the head. Like RWB said, they were much closer to leaving than most people thought. But with all that BS behind us it's time to enjoy the team thats gonna be here until I'm at least 49.

                Comment

                • #9
                  Re: City, Colts agree on 30-year lease

                  Originally posted by btowncolt
                  Like Frank said above me, this team would have been in LA in 4 years for reasons regardless of LA's previous inability to support a team.

                  The Colts WOULD have been gone.
                  But to LA? Bull****. (I say that with a smile.)

                  I give you that - of all people - the Irsays are the owners that would try and pull this. I also agree that on paper a team here makes sense in only the very short term, and that business people only care about what it says on paper anyway.

                  But saying that and proving to me that LA is going to have a team and that team was going to be the colts and none other just sounds like ultra-fan internet panic with no backbone.

                  Again, it might have looked possible on paper, but all you can do with that is make a paper hat.

                  SO TAKE THAT INDY!!
                  “Success is not final, failure is not fatal: it is the courage to continue that counts.” - Winston Churchill

                  “If you can't be a good example, then you'll just have to serve as a horrible warning.” - Catherine Aird

                  Comment

                  • #10
                    Re: City, Colts agree on 30-year lease

                    I never thought that LA was going to get the Colts. Really no one would have cared if they came either. Honestly people don't even watch the Superbowl out here.

                    Were I the NFL I'd look at putting a franchise in Anaheim rather than LA.
                    "They could turn out to be only innocent mathematicians, I suppose," muttered Woevre's section officer, de Decker.

                    "'Only.'" Woevre was amused. "Someday you'll explain to me how that's possible. Seeing that, on the face of it, all mathematics leads, doesn't it, sooner or later, to some kind of human suffering."

                    Comment

                    • #11
                      Re: City, Colts agree on 30-year lease

                      Originally posted by Arcadian
                      Were I the NFL I'd look at putting a franchise in Anaheim rather than LA.
                      Careful, people out east don't know that those are two completely different cities.

                      Kind of like how people out here say that Indy is "on the east coast." :shakehead
                      “Success is not final, failure is not fatal: it is the courage to continue that counts.” - Winston Churchill

                      “If you can't be a good example, then you'll just have to serve as a horrible warning.” - Catherine Aird

                      Comment

                      • #12
                        Re: City, Colts agree on 30-year lease

                        Originally posted by Los Angeles
                        Careful, people out east don't know that those are two completely different cities.

                        Kind of like how people out here say that Indy is "on the east coast." :shakehead
                        That's funny when I first came out to Cali form Indy/Chicago people would ask what it is like from back East.
                        "They could turn out to be only innocent mathematicians, I suppose," muttered Woevre's section officer, de Decker.

                        "'Only.'" Woevre was amused. "Someday you'll explain to me how that's possible. Seeing that, on the face of it, all mathematics leads, doesn't it, sooner or later, to some kind of human suffering."

                        Comment

                        • #13
                          Re: City, Colts agree on 30-year lease

                          Originally posted by Believe_in_blue
                          You hit the nail on the head. Like RWB said, they were much closer to leaving than most people thought. But with all that BS behind us it's time to enjoy the team thats gonna be here until I'm at least 49.
                          Sounds good to me !!

                          Why Not Us ?

                          Comment

                          • #14
                            Re: City, Colts agree on 30-year lease

                            Originally posted by Arcadian
                            That's funny when I first came out to Cali form Indy/Chicago people would ask what it is like from back East.
                            Sometimes I think "Back East" means anything east of San Bernadino.

                            I just read my post and even I said "out east". Resistance is futile.
                            “Success is not final, failure is not fatal: it is the courage to continue that counts.” - Winston Churchill

                            “If you can't be a good example, then you'll just have to serve as a horrible warning.” - Catherine Aird

                            Comment

                            • #15
                              Re: City, Colts agree on 30-year lease

                              You are just like them. When I moved what astonished me most, geographically speaking, was the number of people who thought Las Vegas was in California.
                              "They could turn out to be only innocent mathematicians, I suppose," muttered Woevre's section officer, de Decker.

                              "'Only.'" Woevre was amused. "Someday you'll explain to me how that's possible. Seeing that, on the face of it, all mathematics leads, doesn't it, sooner or later, to some kind of human suffering."

                              Comment

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