USC Gets 25-Year Coliseum Lease; Deal Hinges On Naming Rights
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Coliseum Commission Agrees To
25-Year Lease Deal With USC |
The Coliseum Commission yesterday by a 9-0 vote agreed to a "non-binding letter of intent that gives USC a 25-year lease -- it can extend to 47 years -- and veto power over an NFL team returning to the Coliseum," according to Sam Farmer of the L.A. TIMES. The agreement "hinges almost entirely on the sale of naming rights." Lawyers will have two months to formalize the deal. L.A. Memorial Coliseum officials believe that a corporate sponsor "could pay $5[M] a year or more to rename the 84-year-old venue -- while keeping the 'Memorial Coliseum' part -- and also help fund a structural overhaul." Such a naming rights deal would "dwarf the most lucrative current deal for a college stadium." Coliseum officials "hope to raise at least $50[M] and perhaps much more to fund improvements" including new video boards, concessions, seats, elevators, escalators and locker rooms. USC can opt out of the deal after two years "if the commission cannot make the promised improvements in a timely manner." The school also has the right to "make the improvements itself and be repaid with interest." Farmer writes even if USC did not have veto power, the chances of an NFL team coming to a stadium with a naming-rights deal already in place "are virtually nil" (L.A. TIMES, 2/14). USC Senior VP & General Counsel Todd Dickey said the removal of USC's right to veto an NFL team would have been "a deal breaker" (L.A. DAILY NEWS, 2/14). In California, Mark Saxon reports USC will "be part of the discussion on naming rights and could shoot down any deal with a company it considers detrimental to the school's image" (ORANGE COUNTY REGISTER, 2/14).
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