The city of Indianapolis will continue to host the Pacers for at least the next 10 years after a $160 million deal was struck to keep the team in town, reports the Indianapolis Star.
The deal also keeps the team at the Bankers Life Fieldhouse through the 2023-24 season, with three one-year renewal options, according to the report.
The $160 million is to be used for operating costs and upgrades to the arena, which includes $33.5 million for upgrades and $10.8 million per year for operations.
Bankers Life Fieldhouse opened in 1999 and Indianapolis leases the building to the Pacers for $1 a year. The team keeps all game and non-game revenue.
The city's Capital Improvement Board is expected to vote on the deal Monday. According to the plan, the city also gets the right of first refusal if owner Herb Simon dies and his heirs put the team up for sale.
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The deal sticks even if the Pacers begin to lose money. The Capital Improvement Board will subsidize fieldhouse operating costs to the tune of $3.7 million a year. That will cover things such as liability insurance, security and utilities. The CIB also will pay the fieldhouse's manager $7.1 million a year, with that amount rising 3 percent each year.