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Buyout clause in lease ONLY to move to new stadium NOT for relocation


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#1 Fingon

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Posted 13 April 2014 - 08:32 AM

http://www.buffalone...-bills-20140412

Basically, they can leave in year 7, but any discussion or negotiations of leaving before that are a violation of the lease. This means the new owner would have to pay a $400 million fine in 30 days, and even then a court could order an injuction. This essentially means that the year 7 opt out is very unlikely to happen. Someone would basically have to build a stadium in the hopes that in 2020 the Bills would decide to play there. However, the developer wouldn't even be able to discuss the project with the Bills new owner until the opt-out came around. Does anyone really think a city/developer is going to build a billion dollar stadium without the commitment that a team will play there?

#2 mannc

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Posted 13 April 2014 - 08:40 AM

This seems pretty definitive.  Team will be here at least until 2020.  Only out would be if the landlord somehow breached the agreement by failing to fund the improvements, etc.  This lease will be a huge deterrent to potential buyers looking to move the team.  That is a long time to wait.

Edited by mannc, 13 April 2014 - 08:45 AM.


#3 Mr. WEO

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Posted 13 April 2014 - 08:42 AM

In before merged and locked!

#4 dave mcbride

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Posted 13 April 2014 - 08:48 AM

One question I have - does that injunction come into play even in year 7? If so, then it'll cost a lot more than $28 million to get out of the lease. I'm assuming that language applies to all ten years.

#5 thebandit27

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Posted 13 April 2014 - 08:54 AM

View Postdave mcbride, on 13 April 2014 - 08:48 AM, said:

One question I have - does that injunction come into play even in year 7? If so, then it'll cost a lot more than $28 million to get out of the lease. I'm assuming that language applies to all ten years.

Yes

The $28M would basically serve as the County's agreed upon settlement for letting the team out of the lease to go play in a new stadium in WNY

EDIT...

Hopefully now that there's an article defining what many of us have been trying to explain for weeks we won't have to hear any more rubbish about how easily a new owner can move the team.

Edited by thebandit27, 13 April 2014 - 08:56 AM.


#6 Fingon

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Posted 13 April 2014 - 08:58 AM

View Postdave mcbride, on 13 April 2014 - 08:48 AM, said:

One question I have - does that injunction come into play even in year 7? If so, then it'll cost a lot more than $28 million to get out of the lease. I'm assuming that language applies to all ten years.
The injunction can only happen before year 7 and from years 8-10. So a judge could order Bon Jovi or whoever to stop working on his plans to move the team until year 7. Which means someone completely unaffiliated with him will have to have a stadium ready for 2020. The team could then opt out for $28 million and move to that stadium. Then again, this all hinges on the chances of a modern NFL stadium just laying around vacant for the team to move to.

#7 dave mcbride

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Posted 13 April 2014 - 09:01 AM

View Postthebandit27, on 13 April 2014 - 08:54 AM, said:

Yes

The $28M would basically serve as the County's agreed upon settlement for letting the team out of the lease to go play in a new stadium in WNY

EDIT...

Hopefully now that there's an article defining what many of us have been trying to explain for weeks we won't have to hear any more rubbish about how easily a new owner can move the team.

The Bills are not leaving.

View PostFingon, on 13 April 2014 - 08:58 AM, said:

The injunction can only happen before year 7 and from years 8-10. So a judge could order Bon Jovi or whoever to stop working on his plans to move the team until year 7. Which means someone completely unaffiliated with him will have to have a stadium ready for 2020. The team could then opt out for $28 million and move to that stadium. Then again, this all hinges on the chances of a modern NFL stadium just laying around vacant for the team to move to.

Are you sure about that? It didn't say that in the piece. Just because the move-out fee is lower doesn't mean the injunction language doesn't apply, right?

#8 Fingon

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Posted 13 April 2014 - 09:04 AM

View Postdave mcbride, on 13 April 2014 - 09:01 AM, said:

The Bills are not leaving.



Are you sure about that? It didn't say that in the piece. Just because the move-out fee is lower doesn't mean the injunction language doesn't apply, right?
"A New Stadium Working Group has been assembled to confront that reality, knowing all the while that the lease does allow the Bills to leave town relatively painlessly in 2020."
I dont think you can describe a court injuction barring you from leaving as "relatively painlessly"

#9 mannc

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Posted 13 April 2014 - 09:05 AM

View Postdave mcbride, on 13 April 2014 - 08:48 AM, said:

One question I have - does that injunction come into play even in year 7? If so, then it'll cost a lot more than $28 million to get out of the lease. I'm assuming that language applies to all ten years.
No.  In year 7, the only thing preventing the owner from breaking the lease is $28 million.

#10 dave mcbride

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Posted 13 April 2014 - 09:10 AM

I re-read the piece, and it does seem that an owner can get out in 2020 (although I wish it had been clearer whether an injunction would be effective that year).

#11 K-9

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Posted 13 April 2014 - 09:19 AM

View Postthebandit27, on 13 April 2014 - 08:54 AM, said:

Yes

The $28M would basically serve as the County's agreed upon settlement for letting the team out of the lease to go play in a new stadium in WNY

EDIT...

Hopefully now that there's an article defining what many of us have been trying to explain for weeks we won't have to hear any more rubbish about how easily a new owner can move the team.

Have I mentioned how easy it would be for a new owner to move the team?

GO BILLS!!!

#12 PromoTheRobot

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Posted 13 April 2014 - 09:22 AM

I thought the 2020 buyout was put there by the NFL because that is the year the collective bargaining agreement expires. It gives the team an out if the new agreement is unfavorable to the Bills staying.

#13 Kellyto83TD

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Posted 13 April 2014 - 09:27 AM

View PostFingon, on 13 April 2014 - 08:32 AM, said:

http://www.buffalone...-bills-20140412

Basically, they can leave in year 7, but any discussion or negotiations of leaving before that are a violation of the lease. This means the new owner would have to pay a $400 million fine in 30 days, and even then a court could order an injuction. This essentially means that the year 7 opt out is very unlikely to happen. Someone would basically have to build a stadium in the hopes that in 2020 the Bills would decide to play there. However, the developer wouldn't even be able to discuss the project with the Bills new owner until the opt-out came around. Does anyone really think a city/developer is going to build a billion dollar stadium without the commitment that a team will play there?
Ok guys lets get to reality. The lease can say whatever it wants, it doesn't make it LEGAL. Bottom line no court can or will force an entity to be a tenant against their will. The state can file an injunction and any owner with a law firm worth its salt will get it busted in appeals court in 15 days tops. The County has to prove 400 mill in damages and they cant.  Look its all bluster to appease fans and keep them calm as long as possible. The real bottom line is this, a new owner could move them in 2016 if he saw fit. You aren't going to detract billionaires with a 400 million fine. BTW saying any fine, etc of that magnitude has to be paid in 30 days is pure bull **** as well.

View Postdave mcbride, on 13 April 2014 - 09:01 AM, said:

The Bills are not leaving.



Are you sure about that? It didn't say that in the piece. Just because the move-out fee is lower doesn't mean the injunction language doesn't apply, right?
There is no way in hell you can say that and be 100% correct. Now I get it makes many of you feel good while whistling through the grave yard, but reality of business is if they want to move them this lease won't stop it.

#14 PromoTheRobot

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Posted 13 April 2014 - 09:39 AM

View PostKellyto83TD, on 13 April 2014 - 09:27 AM, said:


Ok guys lets get to reality. The lease can say whatever it wants, it doesn't make it LEGAL. Bottom line no court can or will force an entity to be a tenant against their will. The state can file an injunction and any owner with a law firm worth its salt will get it busted in appeals court in 15 days tops. The County has to prove 400 mill in damages and they cant.  Look its all bluster to appease fans and keep them calm as long as possible. The real bottom line is this, a new owner could move them in 2016 if he saw fit. You aren't going to detract billionaires with a 400 million fine. BTW saying any fine, etc of that magnitude has to be paid in 30 days is pure bull **** as well.

There is no way in hell you can say that and be 100% correct. Now I get it makes many of you feel good while whistling through the grave yard, but reality of business is if they want to move them this lease won't stop it.
So no matter what the lease says it won't work because you can wish it away? Right.

#15 Bills Fan of Maryland

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Posted 13 April 2014 - 09:41 AM

Look, all we can do is fill the stadium every Sunday and hope that a local owner is found or at least an owner who respects the city and its fans.  The fans of WNY supported this team through some of the most abysmal football on record.  (I grew up in the 70's thinking we would never beat the fins.)  The reason it is valued at close to 1B and didn't fold up long ago, are the BB fans.  If the stadium is full and the area continues to support the team through merchandising, I don't think a new owner would gamble on moving a team for potential gain. Toronto, London, etc are major risks.  LA has failed at least 2x in my memory.  Get a stadium built (I like the option of the west side of Amherst) and there is no way this team moves.

#16 dave mcbride

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Posted 13 April 2014 - 09:49 AM

View PostKellyto83TD, on 13 April 2014 - 09:27 AM, said:

Ok guys lets get to reality. The lease can say whatever it wants, it doesn't make it LEGAL. Bottom line no court can or will force an entity to be a tenant against their will. The state can file an injunction and any owner with a law firm worth its salt will get it busted in appeals court in 15 days tops. The County has to prove 400 mill in damages and they cant.  Look its all bluster to appease fans and keep them calm as long as possible. The real bottom line is this, a new owner could move them in 2016 if he saw fit. You aren't going to detract billionaires with a 400 million fine. BTW saying any fine, etc of that magnitude has to be paid in 30 days is pure bull **** as well.

There is no way in hell you can say that and be 100% correct. Now I get it makes many of you feel good while whistling through the grave yard, but reality of business is if they want to move them this lease won't stop it.

You do realize that any such case will occur in NY State courts?

#17 CodeMonkey

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Posted 13 April 2014 - 09:50 AM

View PostKellyto83TD, on 13 April 2014 - 09:27 AM, said:

Ok guys lets get to reality. The lease can say whatever it wants, it doesn't make it LEGAL. Bottom line no court can or will force an entity to be a tenant against their will. The state can file an injunction and any owner with a law firm worth its salt will get it busted in appeals court in 15 days tops. The County has to prove 400 mill in damages and they cant.  Look its all bluster to appease fans and keep them calm as long as possible. The real bottom line is this, a new owner could move them in 2016 if he saw fit. You aren't going to detract billionaires with a 400 million fine. BTW saying any fine, etc of that magnitude has to be paid in 30 days is pure bull **** as well.

There is no way in hell you can say that and be 100% correct. Now I get it makes many of you feel good while whistling through the grave yard, but reality of business is if they want to move them this lease won't stop it.
Let them believe a lease can never be broken and can force a new owner to stay somewhere they do not wish to stay.
As you said, it makes them feel better. And at the end of the day there is really no harm believing anything until there is a new owner and that owner makes it clear what they intend on doing with the team.

#18 mannc

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Posted 13 April 2014 - 09:54 AM

View PostKellyto83TD, on 13 April 2014 - 09:27 AM, said:


Ok guys lets get to reality. The lease can say whatever it wants, it doesn't make it LEGAL. Bottom line no court can or will force an entity to be a tenant against their will. The state can file an injunction and any owner with a law firm worth its salt will get it busted in appeals court in 15 days tops. The County has to prove 400 mill in damages and they cant.  Look its all bluster to appease fans and keep them calm as long as possible. The real bottom line is this, a new owner could move them in 2016 if he saw fit. You aren't going to detract billionaires with a 400 million fine. BTW saying any fine, etc of that magnitude has to be paid in 30 days is pure bull **** as well.

There is no way in hell you can say that and be 100% correct. Now I get it makes many of you feel good while whistling through the grave yard, but reality of business is if they want to move them this lease won't stop it.
You quite simply have no idea what you are talking about.

#19 thebandit27

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Posted 13 April 2014 - 09:55 AM

View PostKellyto83TD, on 13 April 2014 - 09:27 AM, said:


Ok guys lets get to reality. The lease can say whatever it wants, it doesn't make it LEGAL. Bottom line no court can or will force an entity to be a tenant against their will. The state can file an injunction and any owner with a law firm worth its salt will get it busted in appeals court in 15 days tops. The County has to prove 400 mill in damages and they cant.  Look its all bluster to appease fans and keep them calm as long as possible. The real bottom line is this, a new owner could move them in 2016 if he saw fit. You aren't going to detract billionaires with a 400 million fine. BTW saying any fine, etc of that magnitude has to be paid in 30 days is pure bull **** as well.

There is no way in hell you can say that and be 100% correct. Now I get it makes many of you feel good while whistling through the grave yard, but reality of business is if they want to move them this lease won't stop it.

Read the lease. The language states very clearly that both parties agree that relocation would represent "irreparable harm" to the County and be grounds for an injunction.

No, an owner cannot move the team...why are you so vehemently supporting the notion that they could?

Case closed.

#20 K-9

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Posted 13 April 2014 - 09:59 AM

View PostCodeMonkey, on 13 April 2014 - 09:50 AM, said:

Let them believe a lease can never be broken and can force a new owner to stay somewhere they do not wish to stay.
As you said, it makes them feel better. And at the end of the day there is really no harm believing anything until there is a new owner and that owner makes it clear what they intend on doing with the team.

Any lease can be broken. That's a given.

The "let them believe a lease can never be broken" can just as easily apply to any new prospective owner as well as the fans you seek to condescend to here.

There is no denying that this lease will be an expensive proposition to break.

GO BILLS!!!

Edited by K-9, 13 April 2014 - 10:01 AM.