N.J. Sports and Exposition Authority can’t keep contracts with entertainers secret, court rules
Published: Wednesday, November 30, 2011, 11:24 AM Updated: Wednesday, November 30, 2011, 12:17 PM
EAST RUTHERFORD — An appellate court ruled this morning that the New Jersey Sports and Exposition Authority cannot keep its deals with Bruce Springsteen and other major entertainers a secret.
In a unanimous opinion, the panel upheld a lower court ruling that found disclosure of the contract terms negotiated with dozens of concert and event promoters was mandated by New Jersey’s Open Public Records Act.
The ruling capped a two-year legal fight by The Star-Ledger to obtain the contracts, as part of an examination of the finances of the state-owned Izod Center in the Meadowlands, to determine whether deals being negotiated behind closed doors for events ranging from Disney on Ice to Britney Spears were undercutting other venues at taxpayers’ expense.
The newspaper had first requested copies of concert and event contracts negotiated with Izod back in March 2009, but the sports authority provided only redacted documents blacking out everything from how much the state received to book the circus, to fees charged for college graduation ceremonies.
After the newspaper filed suit, Superior Court Judge Claude M. Coleman in October 2010 ordered the contracts be released, finding the “public’s right to know was paramount” in a ruling that said the sports authority had violated the open records statute.
The authority, which to date has spent $362,000 in legal fees on the case, immediately appealed. In filings with the court, the sports authority, which operates the Izod Center, maintained that the public’s interest was served by maintaining the confidentiality of its entertainment deals, claiming the need to remain “competitive in the market and continue to generate profits for the state.”
The sports authority last year reported the arena had a net income of $2.1 million, representing $30.7 million in revenue against $28.6 million in expenses.
The newspaper, which was represented by Keith Miller of the Newark law firm of Robinson, Wettre and Miller, argued that the state had no legal authority to withhold the contractual information from public disclosure.
The appellate court said it concurred.
“The agreements are contracts for lease of a state-owned facility,” said the panel. “The fact the leases involve well-known entertainers will not shroud them in confidentiality.”
It noted that the terms of leasing the Izod Center was no secret to the industry, and found no evidence that release of the information would put Izod at a competitive disadvantage.
“Allowing examination of the government contracts is designed to dispel rumors of possible preferential treatment or untoward favoritism at the public’s expense, and also permits the public to monitor the efficient allocation of the state’s limited resources,” noted the court.
Sports authority officials had no immediate comment and said they were examining the opinion.
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