Bradley Handwerger / WWLTV.com Sports Reporter
Email: bhandwerger@wwltv.com | Twitter: @wwltvsports
NEW ORLEANS For the first time since the Hornets returned from their Hurricane Katrina exile, two words can be stricken from the lexicon that has haunted the franchise's relationship with the city.
Benchmark and threshold.
The state and the Hornets announced Friday an agreement in principle between the two for a 10-year lease extension through 2024 with the New Orleans Arena, an accord that has eliminated any exit clauses for the team.
Additionally, in return for investing $50 million into upgrading the Arena, the state will get out of subsidizing the Hornets, achieving two goals modernizing a 13-year-old facility while keeping state monies from going somewhere other than what needs to be paid for in a tough economy.
When Jac Sperling took over for the league as the franchise's governor, he was tasked with turning it around financially, negotiate a long-term lease and sell the team to an owner who pledged the keep the team in New Orleans.
Friday marked No. 2 in that three-step process.
'This is a huge step in achieving step three, that is finding a local owner,' Sperling said. 'This is something that will help us. We are probably weeks away from trying to get some announcement in respect to ownership and this will be a huge step forward in advancing that cause.'
That the agreement comes without any exit options is something team president Hugh Weber said fans can rejoice in.
'I've talked to thousands of fans over the last few years and they've literally felt like someone is looking over their shoulders as to whether this is their team or not,' Weber said. 'I'm in has become I'm in for good.'
That there were no subsidies included in the agreement is something Jindal made clear during negotiations was a must.
'When you're trying to deal with professional sports while at the same time as trying to deal with education, hospitals, health care and other issues, it became a tough deal to work with,' said Ron Forman, chairman of the Louisiana Sports and Exposition District.
But Forman added, 'The clear message was keep sports, get out of the operation of the state general fund, invest capital money in our building and let them generate their own money.'
As part of the agreement, the state will fund $50 million in improvements to be finished by the beginning of the 2014 season. The emphasis of the improvements will be to provide the Hornets with more revenue-producing streams, including electronic billboards on the outside of the arena.
The Hornets will be allowed to host 15 events per year in Champions Square and, as part of the agreement, the NBA has promised to host an All-Star game at the Arena at some point during the lease's time.
The structure of the new lease will save the state nearly $72 million over the lifetime of the contract, the both sides said
