USC Reaches Tentative Deal With Coliseum Commission
Feb. 13, 2008
The Los Angeles Memorial Coliseum Commission and USC today (Feb. 13) signed a letter of intent [LOI] setting forth key business terms that will become the basis of a new 25-year lease agreement.
The LOI commits USC and the Commission to negotiating a final, binding lease agreement within 60 days.
'Signing of this document is a significant step forward in USC's efforts to repair and restore the Coliseum and ensure that USC is able to continue its long football tradition at this historic facility,' said USC Senior Vice President for Administration Todd R. Dickey. 'We would like to thank the members of the Coliseum Commission, the Governor, and the Mayor for their commitment to this vision.
'This is an important step toward a newly reinvigorated and mutually supportive relationship between USC and the Coliseum Commission.'
The document was signed by Dickey and Coliseum Commission members after a meeting of the Commission at the Coliseum.
Among the provisions accepted by both parties in the 22-page document are:
- USC will receive a 25-year term lease with options to extend up to 47 years.
- USC will pay a facility rent equivalent to 8 percent of all gross ticket sales for home football games.
- USC will pay 50 percent of game day expenses within the stadium.
- USC will pay the Coliseum Commission 8 percent of revenue collected from live television broadcast of football games which are attended by less than 70,000 people.
- Minimum capacity for the stadium on game days will be 90,000 or more permanent seats.
- USC will retain right of consent over any amateur or professional football team desiring to play in the Coliseum.
- USC and the Coliseum Commission will cooperate in a Commission-led effort to acquire a naming rights sponsor for the facility.
- The Coliseum Commission will implement a program of substantial capital improvements to replace and upgrade the sound and lighting system, upgrade elevators and escalators, upgrade and add additional restroom facilities, upgrade and add concession areas, replace fencing around the facility, replace all of the seating, replace the field and drainage system, upgrade the locker rooms, upgrade the video and score boards on the Peristyle end of the facility and add an additional video/score board to the west end of the Coliseum. Numerous life safety improvements will also be implemented.
- USC will also have representation on the Coliseum Commission.
The LOI was a necessary precursor to final negotiations of a formal, binding lease agreement. After 60 days, if there is no final signed lease, USC retains the rights to play its fall 2008 games elsewhere - or to sign a one-year lease extension with the Coliseum Commission to play the 2008 season games at the Coliseum.
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