Continental Divide: Arena Rights Fee Reduction Granted In NJ

The NJ Sports & Exposition Authority (NJSEA) has "agreed to let Continental Airlines off the hook for more than" $1M per year in its naming-rights deal at the Meadowlands, according to Matthew Futterman of the Newark STAR-LEDGER. NJSEA BOD member Raymond Bateman said Continental had been seeking the modification in its deal for several years and confirmed that the revised agreement "received preliminary approval" yesterday. Under the agreement, Continental will pay the NJSEA $1.4M per year instead of $2.5M. Continental and NJSEA officials "refused to comment on whether the reduced fee had anything to do with the expected closing of the arena." Futterman adds Continental agreed in return to "give up advertising space at the Meadowlands as well as the right to be the exclusive airline sponsor at the complex." In addition, Continental extended by three years to 2011 its 12-year agreement with the NJSEA and can "no longer terminate its agreement by simply giving two years' notice." Sports Business Group President David Carter: "This could be a trendsetting deal. This may be just the kind of opening sponsors have been looking for to reopen negotiations" (STAR-LEDGER, 7/12).