With little time to spare in order to make a bid on bringing the Super Bowl back to New Orleans in 2013, the Saints and state of Louisiana agreed on a lease extension that will keep the team in the Superdome through 2025.
The new deal was announced Thursday by Louisiana Gov. Bobby Jindal and Saints owner Tom Benson in the Superdome, which, as part of the deal, will receive $85 million in improvements.
The current Saints' deal, which was essentially set to expire after the 2010 season, paid the team $186.5 million in cash subsidies over a 10-year period. But the new lease worked out by the state and team will pay far less in direct payments to Benson, who contended in 2001 that he needed the extra cash to compete as a small-market franchise in the NFL.
"With this new deal with the state, we're going to be here for a long, long time," Benson said in a video shown to state legislators in Baton Rouge on Wednesday. "I've got a lot of confidence in our city."
Benson, a New Orleans native, needed a long-term lease extension in place to enhance the city's chances of landing the 2013 Super Bowl, which is expected to be awarded at the NFL's spring meetings later this month.
State Sen. John Alario said the deal will cap direct cash payments to the team at about $6 million per year. That figure could be less depending on how much money the Saints pull in from other sources. By comparison, the state will pay the Saints $23.5 million this summer and next on the previous deal brokered by former Gov. Mike Foster.
The Saints will get the money in other ways now. The state has agreed to spend $85 million to improve the Superdome and additional money to lease office space for state agencies at downtown property Benson has an agreement to buy. The property is adjacent to the Superdome.
The improvements to the Superdome -- expanded field-level seating, new exclusive lounges, additional luxury suites and more concession stands -- will create more revenue for the Saints.
As part of the deal, the Saints agreed to give back $10.5 million from the remaining payments on the previous lease so the Louisiana Stadium and Exposition District can use that money for redevelopment projects in the abandoned mall.
"This is a great day for Saints fans and the whole state of Louisiana," said Jindal. "Throughout this process, I said we would make sure this deal makes sense for Louisiana taxpayers. By executing this agreement we will save the state hundreds of millions of dollars, while making what will be an incredibly successful investment for our state."
