Lease deal on N.O. Arena: A signal of Hornets’ commitment to stay?

Gov. Bobby Jindal says the state and the Hornets have reached an agreement on a 10-year lease extension at the New Orleans Arena. The governor announced the new deal, which will run through 2024, earlier today. The deal requires legislative approval of a bond issue that will help fund about $50 million in arena improvements that should give the Hornets more revenue streams. The new lease would not require any new taxes. The extension was done in conjunction with the NBA’s efforts to find a new owner for the team, which is currently owned by the league. A new owner would be bound to the new lease. NBA Commissioner David Stern says in a news release that the “announcement is an important and necessary step toward reaching an agreement with a new owner.” The hope is that a long-term lease and new ownership will stabilize a franchise that has at times been on shaky ground since moving to Louisiana from Charlotte in 2002. The Hornets also spent two full seasons in Oklahoma City after Hurricane Katrina devastated New Orleans in August 2005. The new lease does not have such an escape clause, which is meant to send a message to fans in Louisiana that the new ownership is committed to the region long-term. Read the full story from The Associated Press here.