City officials in Irving, TX, are planning to use "a
complex and obscure accounting procedure that parlays
Irving's stadium ownership into a funding source that would
bring in" $15-20M, according to Tony Hartzel of the DALLAS
MORNING NEWS. Some financial analysts say the procedure,
known as a "lease-lease back agreement," is "widely used in
rail and airline companies, but apparently has not been used
before in stadiums." The deal would be designed to sell tax
benefits that the city cannot claim because it is a tax-
exempt entity. The agreement "would work like this: Texas
Stadium would be leased to investors, and then Irving would
lease it right back." The deal would bring the city income
from a long-term lease contract, paid entirely up front.
Most of that money "would be reinvested, then used to lease
the stadium back from the investors. However, a portion of
the surplus would be set aside" for potential stadium
improvements. In return, investors would get a tax-
deductible lease payment. The $15-$20M raised would
"probably be put in escrow for stadium improvements." Bob
Power, an attorney for Cowboys Owner Jerry Jones, "stressed
that the Cowboys desire a long-term deal with Irving" (Tony
Hartzel, DALLAS MORNING NEWS, 3/14).
