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Last updated on Tuesday, December 11, 2012
(Indianapolis, IN) - The city of Indianapolis has agreed to pay the Indiana Pacers another 10 million dollars to alleviate operating costs at Bankers Life Fieldhouse sustained through June of 2014.
The deal is an extension of an original agreement to keep the NBA franchise from relocating elsewhere in the nation.
The city has already paid out 33 million dollars in local taxpayer revenue over the course of three years, a supplement to the original agreement between the team and the city that's set to expire in 2019.
Indianapolis would recover some of the cash from the subsidy if the Pacers relocate before the end of the original contract, but would lose the money entirely if the franchise chooses to honor the life of the agreement.
The one-year extension of 10-million dollars will be paid in two increments and is seen as a short term fix in keeping the struggling franchise from leaving Indianapolis.
The Pacers rank near the bottom of the league in average attendance but will likely be fortified by the new N-B-A revenue sharing agreement in 2013.
Indiana could collect around 20 million dollars next year in new revenue, an amount that will be taken into consideration when negotiating a new long term deal.
The Pacers are coming off back-to-back playoff appearances and are 9-10 in their current campaign.
They host the 4-17 Cleveland Cavaliers tomorrow night.
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