The Memphis City Council’s approval Tuesday, Dec. 19, of a proposal to transfer ownership of Simmons Bank Liberty Stadium to the University of Memphis Auxiliary Services Foundation didn’t come until after some hard negotiations with Southern Heritage Classic founder Fred Jones.

Jones received a seven-year extension — a four-year contract and three more one-year options — for use of the stadium for the annual football game that doubles as one of Memphis’ most important cultural events. 

Memphis votes to give U of M Simmons Bank Liberty Stadium

But even after the extension, Jones continued to press a hard bargain. He told the council at one point that he had just learned of key provisions of his lease extension and needed time to review it. This came after he had spent significant time huddled in the hallway with Chandell Ryan, chief operating officer for the City, council members JB Smiley Jr. and Chase Carlisle, and the U of M’s Laird Veatch and Ken Moody. 

There was consideration of adjourning the meeting without a stadium vote, allowing for the possibility it could be reconvened to have such a vote when Jones was satisfied with the new contract. 

Instead, the council approved the ownership transfer but with the caveat that the U of M, the City and Jones would continue to negotiate and that the measure could be reconsidered on Jan. 9 if the parties can’t come to an arrangement. 

The council received copies of the new lease agreement Tuesday evening. The Daily Memphian also received a copy and reviewed the existing lease and the proposed new one. Here are the findings: 

Here’s what the existing lease says

Jones’ company, Summitt Management Corporation, pays the City about $56,000 in rent for the game, according to a copy of the contract on the city’s website. It pays a further $25,000 for an advertising fee. 

However, the City, under the current lease, provides significant in-kind services to the game. The City pays for the scoreboard operation — videos and graphics. The City also pays for 500 towels and 100 bags of ice, 50 per team. 

Details of the city’s deal with the U of M to transfer Liberty Stadium

It is Summitt’s responsibility to provide two ambulances in case a player or coach has a medical emergency during the game. However, the City provides ambulances for an emergency in the stands or outside the stadium at no cost to Summitt. 

The City retains two suites during the game. The rest of the stadium’s suites can be sold by Summitt with all of the revenue going to the company. 

The city receives the revenue for concession sales at the stadium, food and drinks, etc. However, any novelty concessions such as T-shirts and game programs are retained by Summitt. The City provides the parking and retains that revenue. 

What does the new lease say? 

The draft lease extension passed out to the council Tuesday, which may not be the final version, has some key changes for the Southern Heritage Classic. The terms are written out that the City and Summitt agree to the deal, but it specifies that the U of M Auxiliary Services Foundation would assume the document. 

It deletes a lease provision that required the City to provide other in-kind services. It also deletes an entire section that specifies what those services are, including: 

• Ambulance service for fans and guests 
• The 500 towels and 100 bags of ice 

U of M: Stadium renovations already being noticed by Big 12

The proposed lease provides that the City — in reality, U of M Auxiliary Services — would provide Jones with a furnished stadium that is ready for a football game. 

The proposal also says any agreement between Summitt and the city for services outside the stadium, which could include parking, will be negotiated. The City will still own the parking lots around Simmons Bank Liberty Stadium. 

Millions invested

The City has invested millions of dollars into Simmons Bank Liberty Stadium over the years, including weight rooms, the new scoreboard and improvements to the home locker rooms, which are primarily used by the U of M football team. 

All of those investments came from the City’s general fund — money that could have gone to other City services.