The Bills, Erie County and the State of New York agreed
"on a new 15-year Rich Stadium lease designed to keep the
team [in Buffalo] for at least the next six years --
provided enough luxury boxes and club suites are sold next
year," according to Gene Warner of the BUFFALO NEWS. NY
Gov. George Pataki: "We've done what Los Angeles, Cleveland
and Houston couldn't do, and that's hold onto our NFL team.
... With the support of the fans and the entire community,
we can assure that professional football is here to stay."
Erie County Exec Dennis Gorski: "Not only have we kept the
Bills, but we've done it in a way that won't cost county
property taxpayers a dime" (BUFFALO NEWS, 7/31).
TERMS OF THE DEAL: The NEWS' Warner wrote that the
state will pay $63.2M for the "total stadium improvement
package -- including 76 new luxury boxes, new club seating,
and a new administrative building." The county, through a
tax on alcohol and tobacco products, would raise another $6M
a year "to offset revenues lost and new costs assumed under
the new lease." The Bills and the state will "spend the
next year marketing" the 76 new boxes, in addition to the 88
existing ones at Rich Stadium. Warner: "If the '99 revenue
for all luxury boxes and club suites reaches $11 million,
then the next five years [of the deal] would be guaranteed."
If the revenue does not hit $11M for '99, the Bills do not
have to abide by the agreement. Wilson also has a buyout
clause in the deal that begins in 2004. In 2004, the buyout
is $20M, with the fee declining annually after that. If
Wilson sells, the buyout clause increases 50% (BUFFALO NEWS,
7/31). The Bills will keep all profits from concessions and
parking -- "as opposed to the current 50-50 split with the
county" -- and would obtain the naming rights to the
stadium. The county will take over the operating and game-
day expenses including utilities, security and ticket
taking. The county's "proposed tax" on alcohol and
cigarettes adds $.1 for beer, $.26 for a liter of liquor and
$.8 for a pack of cigarettes. Rich Stadium capacity will
decrease from 80,000 to "about 75,000" (BUFFALO NEWS, 8/1).
REAX: The NEWS' Warner adds that Bills fans "received
no guarantees Thursday that the team would be here past the
1998 season. No matter how many Bills fans buy season
tickets or flock to Rich Stadium, the team could leave after
1998, unless $11 million in luxury boxes and club seats are
sold. ... However, the lease deal does ensure that the
moving vans won't be backing up to Rich Stadium for at least
two more seasons" (BUFFALO NEWS, 8/1).
