Braves, D-backs in Litigation with Cities Over Stadium Leases
Currently, more than 75% of major-league teams — 23 out of 30, to be exact — play their home games in stadiums publicly owned by a local government entity. Each of these relationships between the franchise and its host municipality is, in turn, governed by a contract specifying the terms under which the government has leased its stadium to the MLB team.
As one might expect, disagreements between the franchises and their local communities occasionally arise under these lease agreements. Recently, two such disputes — one involving the Atlanta Braves and the other involving the Arizona Diamondbacks — progressed to the point that the team or local municipality opted to file a lawsuit against the other in state court.
S.M.P. Community Fund v. Atlanta Braves
In late December, the Atlanta Braves were sued in local state court by the S.M.P. Community Fund, an entity formed by the City of Atlanta to distribute funds generated by the Braves’ former stadium — Turner Field — throughout the local community. Under the terms of the Braves’ lease agreement, the team was obligated to contribute 8.25% of the parking revenue it generated at Turner Field, along with 25% of the net revenue generated from any special events held at the stadium, to the Fund. The Fund would then use these proceeds to benefit the neighborhoods immediately surrounding Turner Field.