USC Gains Approval On L.A. Coliseum Lease, Set To Control Nearly All Revenue
The California Science Center yesterday "gave final approval" to a deal that grants USC control over L.A. Memorial Coliseum and "nearly all of its revenue for the next century," according to Lin & Pringle of the L.A. TIMES. The lease agreement "passed on a voice vote by five of the eight Science Center board members." The Science Center "loses control of its parking lots to USC up to 10 times a year, depending on the football calendar." USC "took over Coliseum operations in July." The lease package, which also "turns over the Sports Arena to USC, commits the university to spending" up to $100M on improvements in the Coliseum. The school will pay the state $1M in annual rent, which rises to $1.3M in '16 and "afterward will be adjusted for inflation." USC "retains all ticket and concession revenues from football games and other Coliseum and Sports Arena events -- and as much as 95% of the naming rights and advertising proceeds from the properties." Sports economists said that the properties "initially could sell" for a combined $4-6M per year. The school "must pay the state 5% of the naming rights receipts from the Coliseum." USC "would pay escalating shares to the government" if it shows a profit on overall stadium operations, starting with 5% of the first $2.5M in net gains. The school also has "the option to develop a soccer stadium at the Sports Arena site" (L.A. TIMES, 9/5).