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Does $400M Buyout Clause Exist?



Buffalo, NY (WBEN) - A report in Canada's Sun Media has some wondering if the Bills are safe in Buffalo until at least 2020.

The Sun Media report quotes Marc Ganis of SportsCorp Ltd as saying whoever buys the Bills cannot move the team out of Western New York at any point during the length of the lease except after the 2019 season, where the team could be moved for a fee of $28.4 million. Ganis says there is no $400 Million "buyout" clause.

While it is true that the 2013 Stadium Lease between the Bills and Erie County is non-terminable for its entire ten-year term and is not subject to a buyout right, there is a $400 Million penalty for breaking the terms of the lease and moving the team.

From the Memorandum of Understanding between the Buffalo Bills, Erie County Stadium Corporation, and Erie County:

"In the event injunctive relief is not granted or available to the County, ECSC or the State for breach of the Non-Relocation Agreement during the term of the 2013 Stadium Lease, the Bills will be subject to liquidated damages in the amount of $400,000,000. The Bills will have a one-time option to terminate the 2013 Stadium Lease and the Non-Relocation Agreement on the seventh anniversary of the 2013 Stadium Lease, upon notice to ECSC and the County and payment of a termination fee of $28,363,500"

According to the lease, if a new owner moved to relocate the team before 2020, that person would break the terms of the non-relocation agreement in the lease, and have to pay a $400 Million penalty for doing so.

The end result of that scenario would be a Bills team not loacted in Western New York, and an owner out $400 Million, just as what has been reported since the signing of the lease.



 

READ:  Canada Sun Media Article Here

 

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Locations : BuffaloErie CountyNew YorkWestern New York
People : Marc GanisRalph Wilson
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