The NBA’s retail arm has reportedly been sued for its failure to comply with the terms and conditions of its lease at 545 Fifth Avenue in New York City, per Darren Heitner of HEITNER LEGAL, P.L.L.C.
NBA Media Venures, LLC owes in excess of $1.25 million in fixed rent:
The dispute is based on plaintiff’s claim that NBA Media Ventures owes in excess of $1.25 million in fixed rent ($625,000 per month) and additional rent based on an absolute and unconditional obligation to pay, without any abatement, deduction, counterclaim, offset or setoff for any reason whatsoever unless specified in the lease. It is assumed, since the lease was not attached as an exhibit to the Complaint, that the lease does not include any force majeure clause that contemplates a suspension of rent payments in the case of an epidemic, pandemic or otherwise.
The 2019-20 NBA season was suspended in March after Utah Jazz All-Star center Rudy Gobert tested positive for COVID-19. The NBA has lost a ton of money since games were suspended and the league could lose around 1 billion if the 2019-20 campaign gets canceled altogether.
NBA Media Ventures, LLC is not the first major corporation to default on its large commercial lease obligations, per Heitner’s report.
The NBA is hoping to resume the season in July at Walt Disney World in Orlando, Florida. Whenever games resume, whether that’s in the summer or in 2020-21, the league will need to use the revenue to fully comply with the terms and conditions of its lease at 545 Fifth Avenue, New York, NY.
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