The Nashville Sports Authority has approved a lease and
development agreement with the Oilers which paves the way for
construction to begin on a new stadium by the middle of June.
The deal is still contingent on city, state and private sector
completion of a $292M stadium and relocation package. According
to the HOUSTON CHRONICLE, under the agreement, the Nashville
Metropolitan Council will build a $125M facility which will
include an additional $35M in infrastructure costs. The NSA will
then take deed of the stadium and lease it to the Oilers for
$200-300,000/year. In return, the team will operate the stadium
and keep all ticket, concession, and advertising revenue. Unlike
the Oilers' Astrodome lease, the proposed deal also includes a
performance/damages clause which states the Oilers must play "all
home games in the new stadium for 30 years." The team must pay
$117M in penalties if they should abandon Nashville in the first
12 years of the deal, $87M if they leave between Years 13-22, and
$34M if they leave during the final eight years (John Williams,
HOUSTON CHRONICLE, 2/14).
