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Benson clarifies lease, team performance

10/3/2003 - New Orleans Saints

NEW ORLEANS -- Less than a week after the New Orleans Saints
lost 55-21 to the Indianapolis Colts and unhappy fans donned paper
bags and held up signs demanding changes, owner Tom Benson defended
his team.

Benson took a quarter-page ad in the Times-Picayune on Friday to
"set the record straight."

The Saints (1-3) have only one home victory since Dec. 8,
including the preseason. Sunday's prime-time loss sparked a rash of
complaining letters to the editor and disgruntled talk-show
discussions. One candidate for state Senate even ran spots blasting
her opponent for voting for a deal worked out by the state to keep
the Saints in Louisiana. She said the team needed defensive backs,
offensive linemen and a backup running back more than state money.

Requests for The Associated Press to talk to Benson were not
answered.

His letter discussed the Saints deal hammered out with the state
in 2001. At that time, Gov. Mike Foster and Benson announced a
10-year agreement under which the state would help the Saints
remain financially competitive by guaranteeing the team an
additional $186.5 million over 10 years.

Benson's letter said that the funds paid to the team were
"self-generated from ticket sales, sponsorship advertisements,
concessions, tax on visiting players and other similar sources."

The money, Benson said, would not exist if the Saints were not
playing in the state.

However, parts of hotel and motel occupancy taxes and revenue
from all events held in the Superdome and Arena, not just Saints
games, are used to fund the Saints payments.

"The bulk of the revenue that funds the Saints comes from the
hotel and motel tax," said Craig Gannuch, a budget analyst for the
senate financial office.

The second point of Benson's letter was that the $3 million
balance the state had to raise this year was the result of the
Superdome's management and the failure to sell the naming rights
for the Dome. No money, Benson pointed out, was taken from the
state's general fund to satisfy the obligation to the Saints.

To help cover this year's payments to the Saints and pro
basketball's New Orleans Hornets, the Superdome Commission agreed
to accept a $3 million emergency bailout from the stadium
management company in exchange for extending the firm's contract.

That prevented dipping into the general fund to pay the Saints,
but Sen. John Hainkel, R-New Orleans, believes that will happen
next year.

"That just put off the inevitable," Hainkel said. "It's my
opinion that the next governor is going to be faced with a big
question: do we want to break the contract or do we want to dip
into the general fund? And when that's decided, there's going to be
a hellacious battle about dipping into the general fund."

Although he would hate to see the Saints move, Hainkel said that
he believes more people are opposed to a state bailout.

"Certainly we don't want to lose an NFL team; symbolically it's
tough on a town that's taken a lot of body blows," Hainkel said.
"But more and more people think keeping these teams is too
expensive."

Benson went on to point out a University of New Orleans study
that said the Saints economic impact on the area last year was
$402.17 million and creates 4,686 jobs.

Finally, Benson's letter discussed this year's 1-3 start, the
worst since 2000.

"No one, including myself, is satisfied with our current
performance," Benson said. "But since assuming ownership of the
Saints in 1986, our win/loss percentage ranks 15th in the league,
ahead of Dallas, St. Louis, Atlanta and Tampa Bay and the
popularity of our team is reflected by the fact that its TV ratings
are fourth out of 32 teams in the National Football League."

The Saints, who have won only one playoff game in the 34-year
history of the franchise and not made the post-season since 2000,
have had 24 straight home sellouts and sold 53,313 season tickets
this year, setting a record.