New Orleans Louisiana Saints, Limited Partnership, Benson Football, Inc. Tax Matters Partner - Page 8

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               In July 1984, the Mecom Group and LSED executed a second               
          amendment to the 1975 Lease (the Second Lease Amendment).  This             
          amendment was in response to the alleged contractual breach that            
          occurred when LSED entered its lease with the Breakers.  In                 
          exchange for relinquishing its breach of contract claim against             
          LSED and the State, the Mecom Group received a reduction in its             
          rental terms under the 1975 Lease.  The Second Lease Amendment              
          reduced the rent payable by the Mecom Group for the Saints' use             
          of the Superdome to the greater of $25,000 per game or 5 percent            
          of gross ticket sales, and provided that all costs and expenses             
          of providing utilities and day-of-game staff are part of the                
          consideration for the rent paid by the Mecom Group.  According to           
          petitioner's calculations, the improved rental terms generated an           
          annual saving of approximately $730,000.                                    
          The NFL and Public Financial Assistance                                     
               In 1985, the NFL consisted of 28 teams and was the focal               
          point of professional football.  The USFL's attempt to establish            
          itself as a reputable professional football league had failed and           
          that league was in its final year of existence.  By this time,              
          municipalities across the country had begun to appreciate that              
          substantial economic incentives were associated with hosting a              
          professional football franchise and demand for those teams out              
          paced their supply.  Despite this notable disparity, the NFL was            
          reluctant to expand and that reluctance fostered a competitive              
          environment among localities interested in attracting an NFL team           




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