The President of the New Orleans Pelicans, Dennis Lauscha, has finally decided to…
Creating a great fan experience is what drives us to make these improvements. I think it’s important to go back to what this historic renovation of the Caesars Superdome was all about: creating the best possible fan experience and saving an iconic state-owned stadium for decades to come. We have had a very positive and mutually beneficial working relationship with the state over the last 15 years or so, where we were able to align all parties’ interests so everyone could gain, and most importantly, our fans. This allowed us to enter into a partnership with the state where we would essentially foot the bill for fan amenity improvements (wider concourses, better concessions, technology upgrades, etc.) while they covered the costs for infrastructure repairs and upgrades. We worked closely with the state, LSED, and ASM to create a multi-year construction plan that would allow us to continue to play games, continue to host big events, and still produce a best-in-class experience for our fans. We are really proud of the result and the impact it will have for our fans, as well as the part this transformative renovation will have on our ability to attract major events.”
Question: “Can you explain and update the fans on the current agreement the team has with the state and the details of how the construction/renovation partnership works?”
Answer: “The Saints and the State of Louisiana announced in 2019 that we had agreed to a long-term deal along with a $450 million upgrade to the Caesars Superdome. At that time, the Saints agreed to pay $150 million of the $450 million. When we decided to make the $150 million investment in the long-term future of the Caesars Superdome, it came with a mutually agreed-upon commitment from the state, LSED, and the Saints to execute a long-term lease. We want to be in New Orleans for the long run. The deal terms were staying the same but with some updated wording and terms that reflected changes to the building since the original 2009 stadium lease, to recognize the team’s investment in the building, and to reflect current operations. A basic component of the agreement was that the team’s current rights in the building would be preserved and possibly enhanced. Ultimately, we chose not to pursue extra rights in the building and to just preserve the current rights that had proven to be successful for both the team and the state. We were assured the process of drafting the new deal would be completed relatively promptly, and since neither party wanted to do anything to slow down the construction in the Caesars Superdome, we began funding without an agreement being executed, relying on the good faith and positive working relationship we have enjoyed with the state, LSED, and ASM.”
Question: “Wednesday, while the LSED had gathered much of the local media, it claimed that the Saints have not paid construction bills since December. Can you explain?”
Answer: “Yes, I thought it interesting to see the full media presence at the LSED meeting. That was a first. But relative to the payments, we agreed that all parties would work in good faith to finish the lease documents while construction proceeded and both parties would fund the project. We have had numerous positive talks, and even though a new deal was not executed, the team continued its payments in good faith. Over the process of trying to finalize our long-term commitment to the state over the last two years, there was never any indication that the fundamental terms we agreed to when we entered into the renovation partnership were in doubt. Beginning in December, however, we started getting indications from the LSED and ASM that they wanted to discuss rolling back some of the rights granted to the team in the current lease. This was clearly not what was agreed to and shocking, to say the least, given how fundamental those rights were to making the partnership work as planned. Given that threat, we told ASM and the LSED that we would have no choice but to hold up construction payments until they decided to live up to the commitments they made to preserving our rights. We had positive talks with them and, as a result, continued to make payments. Unfortunately, as we continued to exchange drafts, there were further attempts to diminish the team’s rights, and we again warned the LSED we would have to hold payments if they continued to go back on their promise. We thought the problem was finally resolved in a meeting with ASM and the LSED on March 20, 2024, where they reaffirmed their commitment to preserving the team’s current rights. Instead, the LSED sent back a draft paper that not only did not represent what was agreed to in that meeting but further diminished the team’s rights and protections. This was, clearly, a significant setback and an unnecessary delay. Despite our repeated best and good faith attempts to get this agreement executed, or at least greatly advanced, through numerous communications, the lease remains mired in the abyss. We informed ASM and the LSED numerous times that we would withhold any further payments until significant progress was made. We thought that with relatively little conversation and negotiation, this could easily be accomplished. Shockingly, we have gotten almost no communication, and, in fact, members of the LSED’s negotiation team were instructed not to speak to us for days.”
