NBA 2014 Standings & News: Pacers Stays in Indiana as Indianapolis Board Pays $160M

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First Posted: Apr 14, 2014 12:22 AM EDT

The Indiana Pacers will remain in the city after the Indianapolis Capital Improvement Board entered into an agreement to pay $160 million, ESPN reports.

On April 10, 2014, the Indianapolis Business Journal reported that the deal will be officially announced on April 14, 2014, which will keep the franchise in Indianapolis for another ten years or up to the 2023-24 season. Furthermore, an option to renew for three years is included after expiration of the ten-year period.

Part of the $160 million will be used to improve the Bankers Life Fieldhouse. Upgrades are said to cost around $33.5 million. Annual operational expenses are around $10.8 million. The deal also cited that the Pacers is not allowed to end the agreement due to operating losses. The city of Indianapolis has the right of first refusal in case the team owner, Herb Simon, who is 79 years old, dies and his heirs offers the franchise for sale.

According to Bleacher Report, the Bankers Life Fieldhouse replaced the old Market Square Arena in 1999. The arena also hosts other events and games for the WNBA and NCAA. The agreement includes Greg Ballard, mayor of the city. Ballard shared that the decision to make the Pacers stay in the city will improve its economic status. Hundreds of thousands of people flock to the city to watch their favorite basketball stars play. Considering how the No. 2 seeded Pacers is performing well and has its sights set to being on top of the Eastern Conference by the end of the NBA regular season, ticket sales are expected to continually rise.

There are also some criticisms on how the investment can turn sour in the next few years. The franchise earned $121 million in revenue and $12 million in profit during the 2012-2013 season. Zach Adamson, City-County Councilman stressed that the city may be spending too much on the team when there are other more serious issues to address, such as strengthening the police force and repairing roads and other public utilities.

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