Saints make Superdome renovation payment, diffuse standoff with state officials

NEW ORLEANS — The New Orleans Saints have contributed $11.4 million towards the Superdome renovations on Friday, resolving a public dispute between the NFL team and the state officials responsible for the stadium, which is set to host the upcoming Super Bowl.

Announcement of the payment by the club and the Louisiana Stadium and Exposition District came hours after Saints president Dennis Lauscha, in comments published on the team’s website, decried “disingenuous and unprofessional” conduct by the state commission that oversees the Superdome.

Lauscha also affirmed that the team’s choice to withhold payments since last December was due to their displeasure with the state’s stance in concurrent negotiations for a long-term Superdome lease.

Lauscha stated on the team website that the LSED was notified that substantial progress towards a long-term lease was a prerequisite for continued payments. He added that as of the end of last week, the required progress was not achieved. Consequently, the Saints once again informed them that payments would be withheld until significant advancements were made on the lease.

Officials stated late Friday afternoon that a payment had been made following a “productive call” between Lauscha and LSED board chairman Rob Vossbein.

During an LSED board meeting on Wednesday, the dispute was made public. The staff informed the commission board members that the Saints were behind on their payments for the Superdome renovations, which are set to be completed this summer.

The NFL team put out a statement later that day, saying it was ready to pay its part, but only once it received “documentation” that was not specified at the time. In response, LSED officials stated they “do not understand” what documentation the Saints are asking for, as no renovation-related work invoice had ever been disputed.

Lauscha stated that it was “completely insincere and unprofessional of the LSED to claim they do not know what we are seeking.”

However, the LSED statement did mention the lease negotiations.

The LSED affirmed, “The agreement is entirely separate and independent. There is no legal justification to withhold payments under the Superdome Renovation Project Development Agreement due to efforts to negotiate a longer-term extension.”

The amount of money at issue was small relative to the nearly $550 million scope of the renovation project, which has grown from an initial $450 million plan formally approved in 2019. But further delay by the team in paying could have caused cash flow problems and hinder the LSED’s ability to complete remaining work — unless the state quickly found an additional funding source as a stop-gap measure until the impasse was resolved.

Lauscha stated that Louisiana Gov. Jeff Landry had a “wonderful conversation” with Saints owner Gayle Benson when he called her on Thursday night.

Lauscha said that an LSED attorney “contacted us after the call expressing their desire to meet with us in order to resolve our stalemate, and we appreciate that.”

Lauscha stated that the Saints’ anxiety over lease negotiations arose when the LSED and ASM Global, the firm hired by the state to oversee the dome, informed the team about their desire to reconsider some of the privileges given to the team in the existing lease.

“Lauscha stated, ‘This clearly wasn’t in line with our agreement and was frankly quite shocking, especially considering how crucial those rights were to the functioning of our partnership.’ He didn’t clarify which ‘rights’ were under assault by state negotiators. ‘In light of this threat, we informed ASM and the LSED that we would have no alternative but to withhold construction payments until they consented to honor the commitments they made to safeguard our rights,'” he added.

At present, the Saints possess rights to various revenue streams produced by the dome, including those coming from naming rights agreements and advertising space.

Spokesman Mike Hoss said the LSED declined to comment further on the matter on Friday, continuing to stand by previous statements.

The majority of the renovations have been finalized. There is still approximately $58 million worth of work to be done, with the Saints footing the bill for around $41 million of that. According to a statement from the team, the Saints have pledged to contribute around $200 million towards the renovations of the Superdome.

The project, which was largely completed before last season, encompassed the revamping of stadium entrances, concourses, and kitchens. It also involved installing towering new escalators and replacing older ramps with staircases and elevators.

Work is expected to be finished before the start of the NFL season, roughly six months prior to the nearly 50-year-old stadium hosting the Super Bowl on February 9.

Copyright Associated Press 2024