|Hornets get new arena lease that could keep team in New Orleans through 2014|
|Written by Admin|
|Wednesday, 09 January 2008 11:26|
The new lease runs through 2014, an extension of two seasons.
``The extension essentially makes up for the time the team spent when it relocated to Oklahoma City following Hurricane Katrina in 2005,'' a joint news release from Gov. Kathleen Blanco's office, the arena's managers and the team said Wednesday.
It also allows the Hornets to opt out after next season, albeit with penalties ranging from $50 million to $100 million. The precise cost would depend on inducement reimbursements by the team to the state and a relocation fee imposed by the NBA.
The extended lease agreement includes specific benchmarks. For instance, the Hornets can opt out of the agreement if the team fails to draw an average attendance of 14,735 at the end of the 2008-09 season.
The benchmark is close to the team's average attendance for the three seasons before Hurricane Katrina. Such an average still would leave the Hornets in the bottom third of NBA attendance, league officials said.
``We believe that we have come up with an agreement that gives us a realistic expectation of success,'' Hornets owner George Shinn said. ``Everyone in the organization is in New Orleans because they chose to be here. We want this to be our home for a very long time, and we have great confidence that we will succeed.''
The Hornets, who were set to host the Los Angeles Lakers on Wednesday night, averaged 11,871 in their first 15 games this season, last in the league.
The new lease also relieves the state of responsibility to build a new practice facility. The team will instead continue to practice rent-free at the state-owned Alario Center, which has three basketball courts and is slated for expansion.
``Both the state and Hornets ownership have great confidence in the team's fan base,'' Blanco said in her statement. ``With the team's performance on the court thus far and their work in helping rebuild New Orleans, I believe that the Hornets and their fans are on the right track.''
The Hornets' return to New Orleans has met with mixed results. Major revenue sources such as suite sales and sponsorships are above pre-Katrina levels. However, entire sections of the less expensive seats in the upper deck have been empty so far this season.