SBD/2/Facilities Venues

HEAT'S LACK OF LEVERAGE LEADS TO HIGHER RENT IN NEW LEASE

          The Heat yesterday agreed to a two-year lease agreement
     to play at Miami Arena that calls for the team to "pay
     nearly four times its current rent and give up valuable
     advertising revenue as well," according to Barry Jackson of
     the MIAMI HERALD.  Heat President/Business Operations Jay
     Cross said that the Heat wanted to wrap up the lease quickly
     because the team "wanted to stay in Miami and didn't have an
     alternative arena."  Cross: "It's not one of the best deals
     I've negotiated.  We understood it would be expensive, but
     we didn't have any leverage."  The Heat will pay about
     $50,000 per game in rent, up from its current fee of $13,000
     per.  In the new deal, Miami Arena will retain all revenue
     from the 16 arena suites and nearly all arena advertising. 
     Under the existing agreement, the Heat keeps all suite and
     ad revenue.  The Heat will also pay rent for the entire '99-
     2000 season, even though it plans to move into its new arena
     in January or February 2000.  Jackson adds that the new deal
     is "profitable" for the Miami Sports & Exhibition Authority,
     which owns the arena (Barry Jackson, MIAMI HERALD, 4/2).

Return to top

Related Topics:

Facilities, Miami Heat

Video Powered By - Castfire CMS Powered By - Sitecore

Report a Bug