March 16, 2011
Chargers to stop paying rent during lockout
Now that NFL owners don't get to collect TV money during a lockout, apparently they're looking for other ways to save money while they're not paying their players. In the latest, Voice of San Diego reports that the San Diego Chargers are interpreting a clause in their lease saying they're absolved from paying rent in the event of a "force majeure event" — normally interpreted as an "act of God" — to mean that they can skip this year's $2.5 million rent during a lockout.
As our old friend Chargers stadium honcho Mark Fabiani told the paper, in the original Chargers lease that the new one modified, "Force Majeure Event explicitly includes lockouts":
"Force Majeure Event" shall mean any of the following events which prevents a party from performing its obligations hereunder: any act of God, strike, lockout, etc.
The punchline: Voice of San Diego's Andrew Donohue notes that the city could actually come out ahead on the deal, because in some past years "the city actually sends the Chargers more money than it receives from the team because the team gets rent credits for things such as property taxes on skyboxes and compensation for lost ticket sales because of the addition of disabled seating." The NFL: The only business where it can be cheaper to have no tenant at all than one that's actually playing games.
"...other ways to save money while they're not paying their players" - NFL players don't get paid in the off-season
Posted by Vic on March 16, 2011 02:42 PM
Right, but this would be for if the lockout lasts into the season.
Posted by Neil deMause on March 16, 2011 02:48 PM