Wednesday, March 16, 2011

CIB and Colts Settle Concession Dispute; CIB Agrees to Pay 150% on Concession Sales

It was announced today that the Capital Improvement Board and the Indianapolis Colts had settled their dispute over concession revenues inside Lucas Oil Stadium.
Lucas Oil Stadium

Presently the Colts receive 100% of the profits from game day concessions.  During negotiations, the Colts demanded 200% of the revenue and threaten to terminate their contract and relocate the team if the CIB didn't accept the deal.  After what CIB President Anne Lathrop describes as "hardball negotiations," the CIB agreed to give the Colts 150% of the concession revenue.

Both parties described the deal as a "win-win."  Lathrop remarked that "the importance of the Colts to the economic vitality of Indianapolis cannot be disputed because we paid for a study that would say exactly that.  We can't have the Colts moving to Los Angeles or some other venue where the team can make more money."

Jim Irsay, the owner of the Colts, said he was happy with the 150% deal.  "While we never threatened to move the team, we were glad when the CIB suddenly contacted us and offered to pay us more concession revenue," the Colts owner said. "That was very generous of the CIB."

As a result of the deal, when a patron buys an $8 beer, the CIB will have to kick in an additional $4 to the Colts.

Mayor Greg Ballard emphasized the importance of keeping the Colts happy.  "Years ago the city's leaders built downtown a certain way.  Every piece is critical.  You take away a piece, like the Colts, and the whole economic engine could collapse."   At that point, Mayor Ballard said concessions stands should offer Chinese food and that if the Super Bowl gets cancelled, the city could put on a cricket tournament instead.

Meanwhile the Pacers have announced that the team would demand a similar concession contract from the CIB.  In response, Lathrop threatened that the CIB would be a tough negotiator.  "Let me just warn the Pacers that we take the responsibility of stewards of taxpayer money very seriously.  The Pacers can expect the same tough negotiations last year when we agreed to pay only $30 million to the team to run a building it gets 100% of the profit on."

15 comments:

marksmall2001 said...

So do we discourage people from buying beers at Colts games? If it costs me more money w/each brewskie, I want a bunch of tee-totalers in those seats. At least the CIB, a group that taxes without election into office (what? Taxation w/o representation? Huh?) is getting tough with the Pacers! Oh, "tough" in the form of the same deal as the Colts?

Paul K. Ogden said...

Of course this is an early April Fool's piece, Mark.

Though given the CIB and how the sports owners act, it rings true.

Downtown Indy said...

But will it become true? The Colts actually ARE having some sort of concessions dispute with the CIB.

I wold not be surprised to learn the CIB is going to pay irsay an extra million or two as compensation for being inconvenienced while that 2 million in plumbing repairs are made.

Cato said...
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Paul K. Ogden said...

Yeah, DI, since the Colts are maxed out at 100% of the revenue, the Colts are trying to make even more by shovign off expenses to the CIB, i.e. the taxpayers.

Paul K. Ogden said...
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Had Enough Indy? said...

Why does this sound like it actually could be true?????

Thanks for the laugh.

Bill said...

$5 beer? Apparently Paul hasn't been to a game in awhile. A year and a half ago they were running $8.

Paul K. Ogden said...

Bill,

I was thinking the same thing...I should up it to $6. $8??? Wow. That's like 50 cents a drink.

Paul K. Ogden said...

Corrected the beer prices. Seriously $8 for a beer?

Pete Boggs said...

Citizens need their own "See I be."

Jon said...

Jimmy needs the spare change for Peyton's new contract. I'm sure we will see and hear more from Jimmy about why he needs more money, lack of revenue in a small market and so forth. After all, he needs to maintain his position on the Forbe's billionaires list.

Hoosiers for Indiana said...

You got me! I can see Mayor Ballard, City Council and the CIB doing something this goofy.

Citizen Kane said...

As I started to read it, I thought to myself that this must be an April Fools blogpost - but then I realized it was a few weeks away. But then the made-up quotes gave it away, but as you said it really rings true - sadly.

guy77money said...

When we go to Reds games down in Cincinnati we usually dine at Rock Bottom Brew Pub. During the week they have two dollar hand crafted beers in 16 oz glasses before the game. Then you walk over to the stadium and they are selling 12 oz Miller Lite's for 6 dollars which aren't even cold. The better beer is going for 8 to 8.50 a crack. Needless to say I don't drink any beer when I go to a Red's game.