Hornets agree to stay in N.O. through 2014 if attendance increases

New Orleans CityBusiness, Jan 9, 2008

The state of Louisiana and the New Orleans Hornets have reached an agreement to extend the team's lease two years through 2014. The extension essentially makes up for the time the team spent in Oklahoma City following Hurricane Katrina in 2005.

Under the lease terms, the soon-to-be expanded Alario Center in Jefferson Parish will continue to serve as the Hornets practice facility. The state will be relieved of its responsibility to construct a practice facility for the team.

The Hornets will continue to be eligible to receive financial incentives based upon ticket sales at substantially the same amount as the previous agreement.

The extended lease agreement includes specific benchmarks the Hornets and state believe are reachable, fair to both sides and allow the team to operate and perform at competitive levels in the National Basketball Association.

The Hornets can opt out of the agreement if the team fails to draw an average attendance of 14,735 at the end of the 2008-09 season and beginning Dec. 1 of 2007, which reflects the team's average per game attendance for the three seasons before Hurricane Katrina.

The average attendance benchmark would place the Hornets third from the bottom in the NBA. The Hornets are last in the NBA in attendance with fewer than 12,000 attending per game.

Leaving Louisiana would be expensive for the Hornets, costing up to $100 million based on estimated inducement reimbursements and penalties imposed by the state and the NBA in addition to relocation costs.

"Both the state and Hornets ownership have great confidence in the team's fan base," said Gov. Kathleen Babineaux Blanco. "With the team's performance on the court thus far and their work to help rebuild New Orleans, I believe the Hornets and their fans are on the right track.

NBA Commissioner David Stern was pleased the lease was extended. "The NBA has reached out to assist New Orleans in its recovery. We are committed to making the franchise more successful than ever, and we hope that the Hornets will remain in the city for many years to come," said Stern.

Hornets owner George Shinn said: "New Orleans is the right community for the Hornets. We are exceeding many of the benchmarks that we set out for our return, including suite sales and premium seat sales. I am betting that fans want to be part of a winning organization. The ingredients are in place for the Hornets to be successful in south Louisiana. We have a young team that is winning now and features dynamic leaders in Chris Paul and Tyson Chandler. We celebrated our first sellout of the season last week and expect even greater fan support at our upcoming games and into the playoffs."