2 min read
Posted on 02.01.13
  • 2 min read
  • Posted on 02.01.13

A panel of arbitrators ruled today in the matter of the Rams/CVC lease. The Rams' position prevailed. Here is what the CVC lawyer said:

Today the three Arbitrators who were charged with deciding the "First Tier" dispute between the St. Louis Convention & Visitors Commission and the St. Louis Rams made their decision and ruled in favor of the St. Louis Rams. The Arbitrators determined that due to several structural deficiencies in the size and dimensions of the Edward Jones Dome that only the Rams May 2012 Plan for demolishing and rebuilding the facility will make it First Tier under the terms of the existing lease between the parties. Under the terms of the Lease, the CVC will shortly determine, after consultation with its public partners, whether to notify the Rams that it will or will not commence the improvements called for by the Arbitrators decision. The CVC believes that a decision by CVC and the Sponsors under the Lease to commence construction of the Rams May 2012 improvements, which we estimate to cost in excess of $750 million, is very unlikely. The more likely outcome of this proceeding will be that effective March 15, 2015, the Rams lease will be converted to a year-to-year lease. The Rams decision with regard to its plans beyond that date is of course up to them.

As I read it, the decision means that the Rams will have to go back to the drawing board. Nothing keeps them from playing in the Dome, or building a new facility in St. Louis or elsewhere in the region. This only answers a legal question about a line in a lease signed years ago. Going forward, I hope to hear soon what the Rams have in mind.