Foxborough, Kraft Group Reach Agreement on Lost Stadium Revenue

Town and Gillette Stadium officials have agreed on a temporary solution for the issue of lost revenue stemming from the addition of the Optum Field Lounge.

Tuesday night, the selectmen voted 5-0 to allow Town Manager Bill Keegan to sign a memorandum of understanding that will allow both sides to work on a long-term solution while taking care of the current season.

“This is a good-faith compromise from both parties and I am pleased to bring this forward,” Keegan said.

In the compromise agreement, the town will receive a $15,525 as a “transition payment.” The number represents half of the revenue the town would have received if the 2,052 seats removed from the stadium were sold for 10 NFL games.

Talks of a payment began earlier this year after the board expressed concerns over a potential loss of $30,000 in ticket fees from the seats that were removed for the lounge.

Instead of paying taxes, the stadium gives the town $1.52 for every seat sold for Patriots and Revolution games. A higher figure is used for all other events.

The agreement will expire at the end of the football season and does not make any changes to the stadium’s lease. Further talks on modifications to the lease are expected in the near future.

“What this does it allows us to move further and have discussions about the terms of the lease and as you can see the business is evolving in front of our eyes,” Keegan said. “Everyone has done their due dalliance about this agreement and now it’s time to move on to the next phase,” Keegan said.

Any changes to the stadium’s lease with the town will have to be approved at town meeting.