INDIANAPOLIS, Ind. (April 10, 2014)– The Indiana Pacers have struck a deal with the city of Indianapolis to extend their contract for another decade.
According to documents obtained by FOX59, the city’s Capital Improvement Board (CIB) will spend $160 million over 10 years to lock the team in through the 2023-2024 season.
As part of the agreement, the CIB requires that the Pacers must create a separate management entity to operate Bankers Life Fieldhouse.
Here are some points from the agreement:
-$3.7 million will go straight into operating expenses and $7.1 for operating reimbursements payments.
-Another $26.5 million will be spent on improvements to the Fieldhouse, including work on the locker rooms and concession stands.
-$7 million will go to capital replacement items like putting in new carpet.
The deal also includes language addressing what would happen in case the team’s owner, Herb Simon, passes away. Currently, his heirs will take ownership of the team. If the Pacers’ lender “calls their current loans or those loans otherwise mature, the Pacers must try (for at least 60 days) to obtain replacement non-recourse financing.” The CIB would be able to assist the heirs in this process. If after 15 months, no such financing is obtained and a decision is made to sell the team, the “City is entitled to a Right of First Offer.”
The CIB is expected to vote and approve the deal Monday afternoon. The Pacers, CIB officials and Indianapolis Mayor Greg Ballard have scheduled a news conference that morning.