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Magic, Orlando Officials Negotiating Lease Changes At City-Owned Amway Center

Orlando city officials and Magic execs are “negotiating changes to the team's lease to formally give the NBA team the authority to handle” high-tech audio-visual systems, selling advertising and renting party suites -- even during non-Magic events -- at the city-owned Amway Center, according to Mark Schlueb of the ORLANDO SENTINEL. At the same time, the two sides “will try to clarify their agreement to make sure the Magic's exclusive advertising rights aren't so restrictive they hobble other tenants and cause touring shows to bypass Orlando.” On the operations side, city and team officials are “expected to cement the practice of allowing team employees to handle many functions at the arena.” Magic employees “sell the advertising on those video screens during the team's home games, and for some time have been offering advertisers screen time during other events, too.” The city “keeps the revenue for those ads, and pays the Magic a sales commission.” The same is true “for the rental of eight hospitality suites at the arena.” When it comes to revenue, the Magic “already have control of six exclusive advertising categories, meaning other tenants such as the" AFL Orlando Predators "can't sell ads to those sponsors' competitors.” The arena sponsors are Amway, AirTran, Disney, Florida Hospital, Harris and Pepsi. City Attorney Mayanne Downs said that city officials and the Predators' management want “to know exactly how far that exclusivity extends” (ORLANDO SENTINEL, 11/8).

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