Happy Sunday! The term sheet for the Washington Commanders’ new stadium has been released, so I spent some time this weekend analyzing the most interesting parts.

Paid subscribers received a detailed breakdown of the stadium last week, but the newly released 30-page term sheet provides some unique details, including $1 annual lease payments, no property taxes, and complimentary luxury suites for the Mayor.

You can read the entire term sheet here. But since I assume many of you have better things to do with your weekend, below is a summary of everything you need to know.

• The Commanders will contribute at least $2.5 billion towards the project. They will also be responsible for any design and construction costs for the stadium, team administrative offices, and parking facilities that exceed DC’s contribution.

• DC will own the stadium and the land on which it sits. The Commanders will sign a 30-year lease with DC to use the stadium, team administrative offices, and parking facilities. This lease will begin once the stadium is complete and includes four consecutive 5-year renewal options, turning it into a 50-year lease agreement.

• The term sheet explicitly states that the stadium will have a dome.

• The Commanders will pay $1 annually to rent the stadium, its team administrative offices, and its nearby parking facilities.

• The Commanders will sign a 60-year lease for the commercial development (think entertainment district). This lease will have three consecutive 10-year renewal options, effectively making it a 90-year lease for the team.

• The Commanders will pay $1 annually for the initial 28 years of the Commercial Development Lease. After that term, an appraiser will determine the fair market value of the rent. Starting in the 28th year, rent payable will be set below fair market value, increasing annually until it meets fair market value in the 32nd year.

• The Commanders must play all home games at the stadium for the full term of the lease. There is a carve-out for the NFL’s international schedule and potential neutral-site games, but the Commanders have also signed a “Non-Relocation Agreement,” meaning they can’t relocate the team at any point during the lease.

• The DC government will receive two complimentary 18-person suites at the 30-yard line for exclusive use by the Mayor and Council. These suites must have the same finishes, services, and benefits as comparable suites.

• The Commanders will be responsible for maintaining the stadium “to the level of a world-class comparable NFL stadium.” Every five years, they must hire a third party to assess the stadium, identify any deferred maintenance or capital repairs, and provide maintenance recommendations for the upcoming 10-year period.

• DC and the Commanders have entered an exclusive negotiation period. This means the Commanders cannot discuss the terms of the proposal or the location where the team’s home games will be played until the legislation is voted on this summer. If the bill is denied or not put up for a vote at the Council meeting this summer, the exclusive negotiation period immediately ends.

• The first phase of the construction plan will focus on the stadium, the team’s administrative offices, and the gameday parking facility. It is expected to be completed by the 2030 NFL season. Then, the second phase will begin, which includes more parking facilities, parks, and the commercial development.

• DC must approve the architectural design and operational plan for the stadium, team offices, and parking facilities before construction begins.

• The Commanders will be granted exclusive rights to manage, operate, market, and control the stadium and will be entitled to receive and retain all stadium operating revenues, including those from naming rights, sponsorship, advertising (both interior and exterior), premium seating, ticket proceeds, merchandise, food and beverage, and parking for both NFL and non-NFL events. As a result, the Commanders will be responsible for all NFL and non-NFL expenses at the venue.

• The one caveat is that DC will be responsible for event-day expenses related to public and community events at the stadium that are not associated with the team.

• The Commanders will be responsible for all operating, maintenance, and repair expenses related to the parking facilities, but they will keep all operating revenues.

• The Commanders will be required to provide DC with a limited number (to be determined) of complimentary use days in the stadium for noncommercial public and community events, such as graduations and high school football games.

• The Commanders must attempt to activate the stadium for at least 200 days per year, including NFL games, concerts, and other sporting/entertainment events.

• The term sheet suggests that the stadium could eventually be used by a professional women’s soccer team.

• The Commanders are required to build at least 8,000 parking spaces.

• Any residential housing development must include affordable housing units.

• At least 30% of the campus must be reserved for parks and open space.

• DC will be responsible for creating a youth SportsPlex on the land.

• The Commanders will not be required to pay property taxes on the land used for the stadium and parking facilities.

• The Commanders will also not be charged a sales tax on income generated from the sale of Personal Seat Licenses or any parking-related revenue.

• Revenue generated from PSL sales must be used to fund stadium construction.

• The Commanders will be charged a sales tax on revenue generated in the stadium, including ticket and merchandise sales. This money will be placed into a reserve fund to pay the debt service on the city’s stadium bonds. Any excess cash will be used to attract events to the RFK Stadium Campus and help with ongoing costs for maintenance and repairs at the stadium, SportsPlex, and other facilities.

• DC and the Commanders can mutually agree to terminate the term sheet anytime.

• If the deal is terminated, each party is responsible for its own costs and expenses.

If you enjoyed this breakdown, share it with your friends.

Share