SBD/May 31, 2012/Facilities

Jacksonville Withdraws Default Claim Against Jaguars After Khan Writes Letter

The city of Jacksonville yesterday "withdrew its charge" that the team defaulted on a contract with the city after Jaguars Owner Shahid Khan sent city officials a “blistering letter, saying he was ‘shocked,’ ‘perplexed’ and ‘at a loss’” by the action, according to Timothy Gibbons of the FLORIDA TIMES-UNION. Khan in his letter said the city “took an ‘unprecedented’ step" by claiming the team defaulted. Just hours later, the city dropped its charge, calling it a "misunderstanding." The city included “apologetic letters from the mayor and general counsel.” Khan in the letter said, “Please advise us of the method of your implementation of the default and termination, if that is your intention. We are on the cusp of training camp to begin the NFL season and will need to act quickly.” Jaguars Senior VP/Communications & Media Dan Edwards said that the statement “was not to be read as a threat.” Mayor Alvin Brown said in a letter to Kahn, “As a city, we have no interest in doing anything but strengthening our relationship with you and the entire Jaguars organization.” Gibbons notes the issue arose when two companies -- SMG and Global Spectrum -- submitted proposals to run EverBank Stadium. Within a week, the Jaguars sent the city a letter saying it had picked SMG, which has been managing city facilities since '91 (FLORIDA TIMES-UNION, 5/31).
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