News of the Arroyo


Title:

Details of NFL term sheet revealed

Subtitle:

Date:

2005-05-12

Summary:

May 12, 2005 - "City Council must decide on deal, EIR" - The NFL deal is getting thinner and thinner and seems to be dampening the enthusiasm of professional football advocates.

Author:

Gary Scott, Staff Writer

Publication:

Pasadena Star News

Content:

Wednesday, May 11, 2005 - PASADENA -- Along with the hundreds of pages of arcana that constitute the Rose Bowl Environmental Impact Report, the City Council will consider a term sheet for a potential deal with the National Football League when it meets next week.

The 12 deal points are the result of two years of negotiations with the league, a slow and grinding process that has left the council and the community weary.

\"I haven\'t been impressed with the process and I haven\'t been impressed with the responses to our city\'s needs,\' said Councilman Victor Gordo, echoing the frustrations expressed by several of his colleagues.

\"At some point they are going to have to signal to us that they are serious about Pasadena,\' he added. \"I\'m not willing to have our city strung along indefinitely.\'

The tough talk may be part of a negotiation tactic, but patience with the league is definitely wearing thin even among the most ardent NFL supporters on the council.

Though there appear to be enough votes to approve the EIR and rough terms for a deal in time for the NFL owners\' meeting on May 24-25, the council will be looking for reciprocation if the city is to remain in the race.

The deal points under consideration are based on the 15 goals the City Council enumerated in May 2003. A comparison reveals the NFL has won a few notable concessions, including getting the city to drop its demand for a certain number of Super Bowl games to be played here over the life of the lease.

Super Bowls are the most lucrative of all pro games.

\"The deal is getting awfully skinny,\' said Councilman Steve Haderlein, whose support for pursuing an NFL team has waned in recent weeks.

Haderlein was particularly concerned that the lease agreement ensure the city no longer has to borrow any money from Brookside Golf Course revenues to pay off stadium debt. The deal does not meet this threshold, in his opinion.

\"The deal is just getting thinner and thinner and eventually is going to break,\' Haderlein said. \"What used to be a pot of money is now a teacup of pennies.\'

City Manager Cynthia Kurtz said the terms, as written, will give the city \"more than enough to pay off the bonds without using the golf course.\'

There are additional opportunities to raise revenue, Kurtz continued, such as charging the NFL rent on the Rose Bowl and placing a surcharge on game day parking.

\"We won\'t give the bowl away. It has to be a good economic package for the city,\' Kurtz said.

The terms call for a 25-year lease with the NFL, with the option of six five-year extensions. The city of Pasadena would continue to own the stadium, though the league would manage it and pay all maintenance, operations and repair costs.

A maximum of 25 major events would be allowed at the Rose Bowl during the year eight would be reserved for UCLA, two for the Tournament of Roses and the remainder for the league.

The NFL also would have to agree to hold UCLA and the Tournament of Roses harmless from any adverse financial impacts from reducing the number of seats at the stadium.

The term sheet goes on to say the NFL would participate in local nonprofits and youth programs, and hire locals for construction at the stadium.

\"Everything that is being discussed with the NFL now is nonbinding,\' Kurtz noted. \"The council would not be asked to enter into a binding agreement unless we moved to the next step, which is a detailed contract.\'

Contract negotiations will only begin if the NFL chooses the Rose Bowl as its preferred stadium site. The league has not had a team in the Los Angeles area since 1995.

The Coliseum in Los Angeles and the cities of Anaheim and Carson are also competing for the NFL franchise.

Like the Rose Bowl, Anaheim officials are hoping the league makes a decision sooner rather than later.

\"Anaheim is a vanishing opportunity. If it is not acted upon soon, it is not going to be available,\' said David Carter of the Sports Business Group.

Carter, who helped hatch the Rose Bowl bid and is now working to promote Anaheim, said rising property values and advantageous development proposals could convince that city to leave the NFL derby.

\"It would behoove the NFL to give some direction in this market,\' Carter said.

Insiders are skeptical the league will make a selection at the May owners\' meeting, though one or more sites could be cut from contention.

Out of frustration, Councilman Gordo floated a modest proposal that the four sites meet to devise a regional strategy for dealing with the NFL.

\"If the other three cities are open to a four-way discussion, I am open to it,\' Gordo said. \"We shouldn\'t allow the NFL to have its way.\'

Gary Scott can be reached at (626) 578-6300, Ext. 4458, or by e-mail at gary.scott@sgvn.com .

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