Heat announce Miami lease deal with mayor, mayor says “Not me!”

It’s not just the Oakland A’s engaging in stupid press release wars this week: Last night, Miami Heat owner Micky Arison sent out an email announcing an agreement with Miami-Dade Mayor Carlos Gimenez on a new lease for his team — only to have Gimenez retort an hour later that he’d agreed to no such thing.

The terms of Arison’s proposed lease deal are still pretty much the same as when he first proposed it back in January: The team would stay put for an additional ten years (from 2029 until 2039) in exchange for annual operating subsidies — i.e., the county paying the Heat to play there. (The subsidies would actually start at $12 million and rise over time to $17 million, which is slightly less than had been previously reported, meaning the total present value would be a little over $50 million, not the $66 million I’d previously estimated.) The Heat would also ditch its profit-sharing agreement that never actually generates any profit for the county and instead pay a yearly rent starting at $500,000 and rising over time to $1.5 million; that’s potentially a small value for the county, though since the county would also be giving up other things (like the chance at a share of future naming-rights revenues), it could end up being a wash or worse.

Miami-Dade commissioner Juan Zapata called the proposed deal “horrible” and said he’d “never seen anything so ridiculous”; that seems a bit over the top, given that Miami would effectively be paying the Heat $5 million a year (in 2014 dollars) to promise to stay put for another ten years, and there are certainly worse lease subsidies out there. It still doesn’t make it a good deal — the Heat don’t have a viable threat to leave town right now, though it’s always possible things will have changed by 2029, especially if Miami is a post-apocalyptic hellscape by then — but it’s only ridiculous in, you know, a routine kind of way.

Anyway, from the sound of things Gimenez is only complaining about the scale of the subsidies he’s being asked to provide to the Heat, not the principle of the thing, so expect this to be worked out eventually. Whether the county commission goes along with it will be another story, but in Florida those things can usually be worked out.


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