Hmm, this part is interesting.... Buyout option window is brief

[Michael82]

While the exact length of time for the Bills to exercise a buyout option in Year 7 of the lease agreement with Erie County and New York State is not specifically spelled out in the memo of understanding signed by the Bills, the county and the state Friday, it is said to be brief. Here is why that is significant.

The exact time frame for the buyout option, in which the Bills would have to pay a termination fee of just over $28M, will be spelled out once the Memorandum of Understanding is ratified by the NFL as well as the state and county legislatures. But once that brief buyout window closes, the remainder of the term of the deal (3 years) will still operate under the $400M relocation penalty.

So essentially the $400M relocation penalty exists for almost the entire length of the deal, not just the first seven years.....

http://blogs.buffalobills.com/2012/12/21/buyout-option-window-is-brief/

[Night Train]

Re: Hmm, this part is interesting.... Buyout option window is brief

Good find, Mikey.

You folks do realize the Bills could have left each of the last dozen years for far less. This is one small window after 7 years is for the next owner, just in case the area completely collapses and no one is attending the games. Gives new ownership time to decide on their path of possibly getting a new stadium.

Now San Diego, Oakland and Jacksonville are on the clock for L.A. They are not waiting 7 years.

[YardRat]

Re: Hmm, this part is interesting.... Buyout option window is brief

I thought I heard Polencarz mention something about no buyout clause for the last three years, but half of any monies owed Erie County over that time period would be put into escrow for intial costs of a new stadium.

Also, re: Trains comment, supposedly the team could have walked for 2mil in any one of the last several years.

[OpIv37]

Re: Hmm, this part is interesting.... Buyout option window is brief

Also, re: Trains comment, supposedly the team could have walked for 2mil in any one of the last several years.

I don't really think that came as a surprise to anyone. Ralph has always said he wouldn't move the team, and while I'm no fan of Ralph, I always believed him on that because if he was going to do it, it would have happened years ago. Most of us were more concerned that the team would move when new ownership takes over, which is going to happen sooner rather than later because of Ralph's health. The fact that he didn't attend such an important event today is very telling.

But. With today's development, the team will definitely not move in the next 7 years and is unlikely to move in the next 10. So, we don't have to worry about the ownership change in the short term.

[BLeonard]

Re: Hmm, this part is interesting.... Buyout option window is brief

I thought I heard Polencarz mention something about no buyout clause for the last three years, but half of any monies owed Erie County over that time period would be put into escrow for intial costs of a new stadium.

Also, re: Trains comment, supposedly the team could have walked for 2mil in any one of the last several years.

Yes, they could have left prior to this season for a buyout of $2 million: http://www.erie.gov/billslease/stadium.phtml

Termination Fee

Lease Year
Notice Date
Termination Date
Termination Fee

6
February 28, 2004
July 31, 2004
$20,000,000

7
February 28, 2005
July 31, 2005
$17,000,000

8
February 28, 2006
July 31, 2006
$14,000,000

9
February 28, 2007
July 31, 2007
$12,000,000

10
February 28, 2008
July 31, 2008
$10,000,000

11
February 28, 2009
July 31, 2009
$8,000,000

12
February 28, 2010
July 31, 2010
$6,000,000

13
February 28, 2011
July 31, 2011
$4,000,000

14
February 28, 2012
July 31, 2012
$2,000,000

I've read over the old (current) lease quite a bit in the past few years. I'm not an expert or a lawyer or anything, but the lease agreed on today seems to be a helluva lot more balanced between Erie County and the Bills, as opposed to one-sided towards the Bills, like the current lease is. At least based on what has leaked out so far. I'll be interested to see the details when it is all done and official.

-Bill

[Night Train]

Re: Hmm, this part is interesting.... Buyout option window is brief

Yes, they could have left prior to this season for a buyout of $2 million: http://www.erie.gov/billslease/stadium.phtml

Gasp !

And yet... L.A. still doesn't have a team !

I believe the " Wolf,Wolf " crowd is in mid-migration to another message board.

[BertSquirtgum]

Re: Hmm, this part is interesting.... Buyout option window is brief

Good find, Mikey.

You folks do realize the Bills could have left each of the last dozen years for far less. This is one small window after 7 years is for the next owner, just in case the area completely collapses and no one is attending the games. Gives new ownership time to decide on their path of possibly getting a new stadium.

Now San Diego, Oakland and Jacksonville are on the clock for L.A. They are not waiting 7 years.

Or there will be a new stadium built and the Bills buy it out so they will be playing there.

[Michael82]

Re: Hmm, this part is interesting.... Buyout option window is brief

I think one of the other California teams will end up moving to LA. Honestly, Ive never been really worried about LA. And I have said for years that there is too many powerful people that wont let a team leave the state of NY. Chuck Schumer is one of the main ones, but so is Andrew Cuomo and many others. I'm thrilled about the new lease extension and looking forward to seeing the enhancements, I could still see the team using that stadium for another 10-20 years with proper upkeep. And I could also seeing the lease help the city and team towards eventually giving in to build a brand new stadium, with the help from the new owner.

- - - Updated - - -

Or there will be a new stadium built and the Bills buy it out so they will be playing there.

That's exactly what I'm thinking!