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Magic Win Yearly Leasing Deal

ORLANDO-When the team's existing contract is up in 2004, the NBA franchise will rent the TD Waterhouse Centre on a year-by-year term instead of signing for five-year extensions. The Magic pay the city $15,000 per game or $600,000 for 40 home games.

By Alex Finkelstein | Updated on October 16, 2001

ORLANDO-Who got the better part of the deal in a new arena lease negotiated by Orlando Magic with the city?That’s the latest topic being debated by fans of the National Basketball Association team that suggested a seven-year lease only two months ago.

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.

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