Indy Board Could Try To Renegotiate Leases With Colts, Pacers
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Lucas Oil Stadium Operator May Try To
Renegotiate Stadium Lease To Offset Deficit |
The Indianapolis Capital Improvement Board (CIB), which manages Lucas Oil Stadium and other sports venues, yesterday indicated that its operating deficit could grow to $43M by next year, "far worse than projected and too large for it to solve alone," according to Brendan O'Shaughnessy of the INDIANAPOLIS STAR. Part of the problem is the "expected renegotiation of the Indiana Pacers' lease of Conseco Fieldhouse." The team pays $15M a year to "cover game-day expenses, and the CIB, calculating the worst-case scenario, is assuming it could have to take over that cost." The BOD "already had projected an operating deficit of up to $20[M] per year in running Lucas Oil Stadium, and it added $5[M] to that total for other facilities this year." To "get out of its financial mess, the CIB could try to renegotiate better deals" with the Colts and "other sports teams that use the stadiums it runs." It also "could ask city taxpayers for help, though no new taxes could be raised without the OK of the city or state." CIB BOD members yesterday said that the goal "was to review the problem and kick off efforts to find solutions." CIB President Bob Grand said that the BOD "will need to work with the teams, the city and financial experts to get out of its trouble." However, Colts Senior Exec VP Pete Ward said the idea of "reopening a (lease) agreement that took four years to negotiate is ludicrous." And CIB BOD member Bob Cockrum said that raising taxes during the economic recession "likely would provoke a strong negative reaction" (INDIANAPOLIS STAR, 1/28).
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