Details of the Nets' lease with the Meadowlands were
made public Tuesday, and Richard Sandomir of the N.Y. TIMES
writes that the lease "significantly alters the Nets'
revenue stream, but imposes stiff penalties on the team if
it moves from New Jersey." The team is allowed to move
after the '99-2000 season if it gives six months notice, and
can relocate to Newark without a financial penalty because
the state "is expected to play some financial role in that
facility." However, if the Nets leave the state, they would
have to pay the NJ Sports & Exposition Authority $15M after
next season, $10M after the '00-01 season, $7.5M after the
'01-02 season and $5M after the '02-03 season. The lease
was written so that the NJSEA "has time to study whether to
overhaul Continental Arena, or build another arena in its
place at the Meadowlands Sports Complex in East Rutherford."
Nets President Michael Rowe: "It's a satisfying lease
because it recognizes our desire to relocate to Newark, but
gives the sports authority time to show us whether the
Meadowlands is the best place for us." The team must pay
NJSEA rent based on 2-5% of gross ticket receipts,
contingent upon attendance, down from 10.5-25% in the
previous lease. The Nets will also get 40% of gross luxury
box revenues (up from 25%), 100% of net parking receipts (up
from 50%) and 100% of the NJSEA's share of concessions (up
from 50%). In addition, the Nets will also get 60-70% of
new in-arena ad revenue (N.Y. TIMES, 11/25).
RUNNING WITH THE DEVILS? In NJ, Doug Most writes that a
"key factor" where the Nets end up is where the Devils play.
Devils Owner John McMullen wants to build his team an arena
in Hoboken, NJ. McMullen: "I'd be willing to go to Hoboken
alone. It's the finest site in [NJ]. I don't think Newark
is a good site." Nets President Michael Rowe, who "hopes"
they can share a Newark arena: "We have asked to convince
[the NJSEA] that Newark is the best location, and they have
agreed to keep an open mind" (Bergen RECORD, 11/25).
