THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Friday, December 22, 1995 TAG: 9512220571
SECTION: SPORTS PAGE: C1 EDITION: FINAL
SOURCE: BY HARRY MINIUM, STAFF WRITER
LENGTH: Medium: 74 lines
Shreveport, La., mayor Bo Williams has signed a City Council resolution seeking $1 million from the CFL Pirates, who ended their month-long silence on the subject Thursday by saying Williams broke a promise not to seek the $1 million and that they may sue Shreveport.
Shreveport attorney Mark Gilliam, who represents the Pirates, said Williams told the Pirates the city would not seek any money from them during a meeting on Nov. 6 in Shreveport. Gilliam also provided copies of a story from the Shreveport Times in which Gilliam said: ``In all likelihood the city would get no money back (from the Pirates) because repayment is based on a certain number of ticket sales and revenues. They didn't meet those objectives.''
At issue is a complicated agreement in which the city provided the Pirates with $1 million to help compensate them for $3 million in losses last season. City officials say the Pirates must repay that money if they don't play in Shreveport in 1996. The Pirates have announced they will play next season in Hampton Roads.
However, Pirates general counsel Spencer Steel provided a copy of the contract to The Virginian-Pilot. The contract states: ``In the event Pirates receive gross ticket revenue for the prior season is less than $2 million, then Pirates shall not be obligated to refund any amount to Shreveport if Pirates should not play the season in Shreveport.''
The Pirates say they had less than $2 million in gate receipts.
Gilliam said the provision allowing the city to ask for the $1 million was included in case the Pirates drew well and still decided to leave. The Pirates were last in the CFL in attendance.
``It was agreed (at the Nov. 6 meeting) the Pirates had not had a good season at the gate, and that the city would not seek any money,'' he said.
The resolution passed by the city council offered the Pirates $1 million to play in Shreveport next season.
City officials acknowledge they don't want the Pirates to return, that inviting them to return is a legal maneuver intended to recoup money from the team. An East Texas investment group is seeking to purchase the Birmingham CFL club and move it to Shreveport next season.
``These guys think they're being smart or cute, but it's really an act of bad faith,'' said Gilliam, a Shreveport native who has practiced law there 14 years.
Gilliam said the Pirates sought to negotiate an end to the lease on Independence Stadium and other matters amicably, but that they may be forced to get tough. Among his options:
Sue the city for misrepresentation. When the city recruited the Gliebermans to bring the CFL to Shreveport, officials said 10,000 season tickets had been sold. Less than 6,000 had been sold, Pirates president Lonie Glieberman said. They also misrepresented the area's metropolitan area population, Gilliam said.
Sue for commercial signs used during the Independence Bowl. Gilliam says the Pirates own the signage rights to the game, which pits LSU vs. Michigan State next Friday.
He said the Pirates likely will hire a consultant to estimate the worth of sign usage in the stadium, then charge the city that fee. He said $250,000 is a ballpark figure.
Sue the city if it attempts to negotiate a lease with another CFL team. The Pirates still own a lease to the stadium.
Glieberman declined comment, other than to say he hasn't received a copy of the contract from the city. ILLUSTRATION: Color photo
KEYWORDS: LAWSUIT by CNB