Stadium Talks Move Forward

There has finally been movement made by the San Diego Chargers and the City of San Diego in the stadium negotiations. A proposal was made by businesses within the community yesterday and the Chargers have accepted that proposal in its entirety. Now the pendulem swings back tot he City. The following is a statement from Mark Fabiani, Special Counsel to the San Diego Chargers :

The Chargers accept without qualification the proposal made on October 9, 2003 by the leaders from labor, business and the community. The Chargers will eliminate the ticket guaranty for two years (this season and next season), pay $1 million in rent to the City for each of these two years, refund the $3.6 million that the city has already paid under the ticket guaranty this year, and submit the trigger and termination fee issue to binding arbitration. This proposal from labor, business and community leaders goes beyond anything the Chargers have so far offered to the City, but the Chargers have tremendous respect for these community leaders and we accept their proposal.

FACT SHEET

This is the proposal made by the community leaders on Thursday, October 9, 2003:

The Chargers should eliminate the ticket guarantee for this season.

The Chargers should refund to the City all money paid under the ticket guarantee so far this season - a total of more than $3.6 million to be refunded by the Chargers to the City immediately. The Chargers should eliminate the ticket guarantee entirely for next season as well.

For this season, and for next season, the Chargers should pay the city $1 million a year in rent.

The City and the Chargers should begin binding arbitration proceedings on the trigger and the termination fee. The Chargers and the City should agree on a respected judge to serve as the arbitrator.

* The proposal made by the community leaders eliminates a second full year of ticket guaranty. The most the Chargers have ever proposed was eliminating the ticket guaranty for one season.

* The community leaders' proposal requires the Chargers to refund all money paid by the city this year under the ticket guaranty. The most the Chargers ever proposed was eliminating the ticket guaranty before the season began. The team has never proposed to refund money already paid.

* The community leaders' proposal requires the Chargers to refund about a total of $3.6 million. Of this $3.6 million, $1.2 million has already been paid by the Chargers to the NFL for the visiting team's share. There is no way to retrieve this money from the NFL, which means that the Chargers would have to refund this $1.2 million out of team revenues. The team has never proposed any such payment to the city.

* During the last two weeks, during the course of negotiations with the City, the City offered to submit the termination fee issue to binding arbitration. In other words, the city has accepted the idea of binding arbitration for the termination fee - but refuses still to accept binding arbitration for the trigger.



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