When the team's existing contract is up in 2004, the Magic will rent the 17,500-seat TD Waterhouse Centre on a year-by-year term instead of signing for five-year extensions. The Magic paid the city $15,000 per-game rent or $600,000 for the 40-home game season in 2000. The team also paid the city 1% of ticket sales.

The city pays the Magic a percentage of the beer and food sales at each game. That amount was $827,000 last year. A new clause in the lease requires the Magic to pay the city the stipulated game rent even if the team should leave the city before the season is over.

The new lease comes in a year punctuated by ongoing squabbles among the team, the public, the city and the 5,000-member hotel/motel association on the fate of the 12-year-old Downtown arena.