The Rockets and the Harris County-Houston Sports
Authority "declared an arena agreement complete" last night,
according to Eric Berger of the HOUSTON CHRONICLE. The $175M
deal has been accepted by the Rockets but is subject to the
approval of the 13-member Sports Authority, whose five
negotiators "expect that to be little more than a formality,
likely occurring next week." Berger writes that there are
differences between the current deal and one defeated at the
polls last year. The "financial arrangements" of the new
agreement "are more amenable" to a potential NHL team, in
"an attempt to placate would-be team owner" Chuck Watson.
There is also "greater financial commitment" from the
Rockets, as their "effective up-front contribution" is $105M
versus the $74M in a '99 agreement. Additionally, there is
no ticket tax and the city will receive 5% of arena naming
rights, estimated at $200,000 per year, whereas in previous
proposals this year, naming rights revenues "would have gone
to" the Sports Authority as part of the Rockets' rental
payments. The city will "have more access" to the arena, 20
dates versus 10. But Berger writes that it "remains
unclear" whether opponents of the earlier deal will go along
with the new agreement. Once approved, the public will vote
on the proposal November 7 (HOUSTON CHRONICLE, 7/26).
