The USC had previously threatened to relocate its matches to the Rose Bowl, another stadium in Los Angeles, due to a lack of progress on improvements to the 84-year-old Coliseum promised by the Coliseum Commission, which leases the stadium from the State of California.
Under the terms of the new deal, the USC can use the stadium for 25 years, extendable to 47; it has veto rights over an NFL team returning to the stadium, which means it can ensure the seating capacity never drops below 90,000 (the NFL prefers smaller stadiums); there will be significant improvements to the Coliseum, including new video displays, concession areas and seating, made free-of-charge to the university; and it has the right to terminate the agreement after two years if the stadium improvements are not being made at an agreed-upon pace. The university can also opt to pay for the improvements itself, then be repaid with interest.
In return, the Coliseum Commission gets to use USC's name, logos and images as part of a potentially lucrative naming-rights deal; 8 per cent of USC ticket sales, which last year amounted to $1.6 million; and a stable, credit-worthy, long-term tenant. However the money from any naming rights deal must be used to upgrade the Coliseum.
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