The BMO Harris Bradley Center today announced it has reached agreement with the Milwaukee Bucks on a six-year lease extension through Sept. 30, 2017.
The lease extension is the longest between the Center and the team in more than a decade and the first multi-year extension since 2007.
“This six-year lease extension represents a long-term commitment between the BMO Harris Bradley Center and the Bucks, offering security for the next five years as the community continues to determine its potential path to a new arena,” said Marc Marotta, BMO Harris Bradley Center board chairman.
Marotta said that in addition to a long-term positive relationship and strong spirit of cooperation between the BMO Harris Bradley Center and the team, two factors in particular made the new, multi-year agreement possible. They were the financial support from new restaurants, lounges, seating options, valet parking and other revenue generators the Center has been able to put into place; and the involvement of metro Milwaukee businesses – including BMO Harris Bank – that have provided the Center more than $18 million in sponsorships and other support through the Metropolitan Milwaukee Association of Commerce Champions of the Community effort.
“As an aging building operating amid the rapidly escalating economics of the sports and entertainment industry, the BMO Harris Bradley Center simply would not have been financially stable enough to support a multi-year lease without these key factors,” Marotta said. “While we’re still not quite in the position to meet all of the Center’s significant fiscal needs, we are getting close. The new lease extension is an important step forward – and there is still more to do to enhance our fiscal position, maintain Mrs. Pettit’s generous community gift and keep the building safe and enjoyable for the next several years.”
The lease’s financial terms are substantially the same as in recent years, and will not escalate during the six year term. The Bucks will continue to receive 27.5 percent of concession sales and 13.75 percent of food and beverage sales in the suites, as well as 30.0 percent of merchandise sales at Bucks games. Additionally, the Bucks will continue to receive 19.0 percent of net suite revenue and a suite revenue share of $2.1 million annually.
“This is a good agreement that provides stability for both sides as the community decides its future,” said U.S. Sen. Herb Kohl, owner of the Milwaukee Bucks. “We are pleased to have this lease in place and put 100 percent of our focus on an exciting 2012-13 NBA season.”
The lease has been approved by the NBA.