Selectmen Question Lost Gillette Stadium Revenue from Removed Seats

Fans at last week’s Patriots game against the Green Bay Packers may have enjoyed the new Optum Field Lounge located behind the south end zone, but a loss of revenue from the seats removed to make way for the new space has the selectmen asking for further review.

Looking to find a solution for the modification, the selectmen had a discussion Tuesday night about the new stadium feature and the effect it has on the town’s revenue.

“I think the fundamental issue here is that there has been a permanent change to the property. If you look at the lease agreement, it says we receive revenue from seats. We understand that some seats won’t be filled at all events but if you permanently remove seats, that affects the town’s ability to raise revenue,” Town Manager Bill Keegan said.

While the lease agreement allows the stadium to alter the premises, town counsel Patrick Costello said the field lounge creates an ambiguity to whether the town is entitled to compensation.

While the seats are gone, the town will not lose out on a substantial amount of revenue per event. With the seats unused for concerts and rarely used for soccer matches, the town’s ticket revenue is estimated to go down by $3,340 per Patriots game according to Selectman Chris Mitchell.

Mitchell added that he was unsure if the lost revenue was worth a fight but said he would like to see the town meet with stadium officials to work out a solution for similar alterations.

Selectman Ginny Coppola, who originally asked for the discussion, echoed Mitchell’s call for looking towards the future

“My concern is what happens down the road. What I think this was doing is setting a precedent and I wanted to make sure this didn’t set a precedent,” she said. “If it’s not addressed now, and something changes three to five years from now they can said that we didn’t have a problem then.”

As noted in an email to Keegan by Kraft Group Vice President of Business Development and External Affairs Dan Murphy, the stadium does not need to seek the town’s permission to remove seats and is only obligated to give the town a minimum of $1.286 million or the fees from tickets sold. Addressing the issue of paying the town a fee for every field lounge pass sold, Murphy notes that the revenue will only come from payments for the right to occupy seats in the stadium.

During 2014, the town received over $2.6 million in ticket fees, the highest total in stadium history. The town will receive revenue from the field lounge and the Cross Pavillon in the form of the town’s meals tax.

Attorneys for the town and stadium are expected to meet in the future for further discussions on the issue.