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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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Last modified: May 25, 2011