STRATEGIC PRIORITY: Vibrant
AGENDA DATE: June 11, 2025
COUNCIL DISTRICT(S): 6, 7
DEPARTMENT: Park & Recreation Department
EXECUTIVE: John D. Jenkins
______________________________________________________________________
SUBJECT
Title
Authorize (1) a three-year license agreement for use of the Cotton Bowl with a professional sports team Atlético Dallas dba USL with two one year renewal options; and (2) a three-year lease agreement for MoneyGram Soccer Park Complex with a professional sports team Atlético Dallas dba USL with two one year renewal options - Not to exceed $3,000,000.00 over three years - Financing: Convention Center Construction Fund (subject to annual appropriations); Estimated Minimum Revenue: Fair Park Special Maintenance Fund ($900,000.00) and Elm Fork Athletic Complex Fund ($300,000.00) over three years
Body
BACKGROUND
In collaboration with the Department of Convention and Events Services, this agreement represents an opportunity to attract a men’s professional sports team Atlético Dallas dba USL to the City of Dallas. This agreement will allow for a professional sports team to use the Cotton Bowl as their home stadium for up to 24 matches per season. As the completion of scheduled renovations at Cotton Bowl Stadium is near, it’s important to activate the facility for use. This opportunity will significantly increase use of the stadium and the Fair Park campus.
The initial term of this agreement comprises three seasons (2027, 2028, and 2029) with the first league game in March 2027. All matches will be held on dates and times to be mutually agreed between both parties. An annual payment of $1,000,000.00 will be used for the purchase of 2500 tickets per game at $20 each for 20 games per season. The significant license terms are as follows:
• Fair Park to receive:
• Use fee - $12,500.00 per game
• 100% of all parking revenues (less 200 spaces provided to team)
• Team to cover major costs associated with game day presentation
• Per Ticket Sold Revenue
• $1.00 per ticket 7,501 - 15,000 sold
• $2.00 per ticket 15,001 - 30,000 sold
• $3.00 per ticket after 30,001 sold
• Professional sports team Atlético Dallas dba USL to receive:
• Incentive per game - City to purchase 2500 tickets @ $20.00 each for 20 games per season
• 100% of gameday sponsorship/branding revenues (if sold by team)
• 85/15 revenue split for gameday sponsorships (if sold by City)
• 90/10 revenue split for merchandise
This agreement will also allow the professional sports team Atlético Dallas dba USL to lease MoneyGram Soccer Park Complex for a term of three years with the option of two one-year extensions. Upon termination of the agreement between the City and FC Dallas, the City will enter into a lease agreement. The team intends to use the complex for practices, matches, and tournaments. The term of the lease will be concurrent with the license agreement at the Cotton Bowl. The significant lease terms are as follows:
• The team Atlético Dallas dba USL, as tenant, will be responsible for all expenses related to its use, including all operations and management of the Soccer Park Complex, during the Term
• Team Atlético Dallas dba USL will pay an annual lease payment of $100,000.00 or 15 percent commission of net income, whichever is greater
o City will direct a portion of annual rent to a capital reserve fund controlled by City
• City to retain scheduling of existing five youth fields
o When fields not in use by City, City agrees to allow Team to reserve the fields
o City has right to use (part of whole) of the complex for Dallas Park and Recreation special events up to four times per year subject to reasonable notification
o Capital improvement for lighting of two soccer fields funded by Atlético Dallas dba USL
• Team Atlético Dallas dba USL to provide facility maintenance plan to be approved by City
• City grants exclusive naming and sponsorship rights to tenant
o City to receive even split of revenue from any future naming rights opportunity
• Any capital improvements made by tenant are owned by the City
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On April 17, 2025, this item was discussed in Park Board Executive Session.
On May 12, 2025, this item was presented to Sports Ad Hoc Committee Executive Session.
On May 27, 2025, this item was discussed in Park Board Executive Session.
On June 2, 2025, this item was presented to Parks, Trails and the Environment Committee Executive Session.
On June 5, 2025, the Park and Recreation Board will consider a three-year license agreement for use of the Cotton Bowl with a professional sports team Atlético Dallas dba USL with two one-year renewal options; and a three-year lease agreement for MoneyGram Soccer Park Complex with a professional sports team Atlético Dallas dba USL with two one-year renewal options - Not to exceed $3,000,000.00 over three years.
FISCAL INFORMATION
|
Fund |
FY 2025 |
FY 2026 |
Future Years |
|
Convention Center Construction Fund |
$0.00 |
$0.00 |
$3,000,000.00 |
Estimated Minimum Revenue: Fair Park Special Maintenance Fund ($900,000.00) and Elm Fork Athletic Complex Fund ($300,000.00), over three years
OWNER/EXECUTIVES
Atlético Dallas dba USL
Luther Ott, Co-Founder
Matt Valentine, Chairman and Co-Founder
MAPS
Attached