New Orleans Louisiana Saints, Limited Partnership, Benson Football, Inc. Tax Matters Partner - Page 28

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          that the rent required by the terms of the Second Lease Amendment           
          was markedly less than the rent required under the lease that               
          LSED executed with the Breakers in February 1984, which preceded            
          the execution of the Second Lease Amendment by a mere 5 months.             
               Respondent agrees that the terms of the 1975 Lease were more           
          favorable to the Mecom Group after the Second Lease Amendment               
          than before that amendment.  Respondent maintains, however, that            
          our evaluation of the fair market value of the 1975 Lease cannot            
          be performed properly by simply comparing values of the lease               
          before and after the Second Lease Amendment.  Instead, according            
          to respondent, a proper evaluation requires a comparison of the             
          value of the 1975 Lease with the value of several proposed leases           
          contained in bids entered by various cities interested in                   
          attracting the Saints away from New Orleans.  Those cities                  
          include Phoenix, Arizona; Indianapolis, Indiana; Philadelphia,              
          Pennsylvania; and Jacksonville, Florida.  In other words,                   
          respondent maintains that the "market" to be considered when                
          determining the fair rental value of the 1975 Lease must not be             
          limited to the geographical boundaries of New Orleans.  Instead,            
          it is respondent's position that the "market" must include cities           
          that had expressed interest in luring the Saints away from New              
          Orleans.  Respondent maintains that information contained in                
          material that petitioner used in its lobbying effort indicates              
          that the cities of Jacksonville, Phoenix, and Indianapolis                  
          offered free use of their stadiums in order to attract the Saints           




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