Javits Center, Jets Reach Deal on Stadium Operations

The Jacob K. Javits Center and the New York Jets have clinched a deal on the operations of the proposed West Side stadium, formally known as the New York Sports and Convention Center.

After months of discussions and conference calls, a memorandum of understanding was concluded "a couple of hours ago," the chairman of the board of the Javits Center, Robert Boyle, told The New York Sun late yesterday afternoon. The lead negotiator for the Jets on the memorandum, Thad Sheely, had no comment, and a spokesman for the team, Matthew Higgins, said the agreement has yet to be signed.

The Jets agreed to provide at least four permanent "blackout" weekend dates for convention and trade-show events during the September-through-November convention season "years in advance," according to the memorandum.

The National Football League team will have the exclusive right to book the stadium for all sports and entertainment events, and first priority to reserve all dates needed for football events. That agreement can be changed, however, for the booking of city or state events or for the Olympics.

"The city won't benefit unless the Javits Center has control of making the choice whether a given week is reserved for a trade show or a concert," Assembly Member Richard Gottfried, who represents the area and has opposed building a stadium at the Hudson rail yards, said.

"The Jets will want to book events that pay high rent, like concerts, but don't necessarily bring people from out of town, while the convention business is interested in low rents if they attract tourists that will boost the city's economy," Mr. Gottfried said.

The Javits Center will provide the labor for the Jets stadium but with a surcharge of roughly 15%, an official familiar with the convention center said. Like others who spoke about the deal, this official asked not to be identified. A public announcement of the agreement was expected today.

"The Jets want to use the Javits workers, because we have a no-strike provision and oversee all labor disputes," that official said. "The surcharge is because we supervise them, pay their workers' comp, and have a lot of administrative expenses. The Jets wanted us to discount the surcharge, which in almost every case wasn't possible."

The Jets will be responsible for all "front of house" operations and the costs of managing and operating the stadium.

The deal is profitable for the Javits Center because it doesn't pay the operating costs but still collects a fee for the labor, an official familiar with the team said.

"The more we grow and host events the better off Javits will be," the official said.

The convention center official said the agreement lacks specifics.

"It takes hundreds of hours working with the lawyers to do this, and we may not even have a stadium," the official said. "When it is real, we will be more willing to detail it out."

The memorandum comes at a time when the two top leaders of the state Legislature, who can block a $300 million state subsidy for the stadium, have held up a decision on the matter, citing, among other concerns, a lack of information about how the facility would be run.