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HEAT'S LACK OF LEVERAGE LEADS TO HIGHER RENT IN NEW LEASE
Published April 2, 1998
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).