3 October 2023
Orioles fans cheered Thursday night when the club announced in a videoboard message that the team had agreed with the State of Maryland on a deal to keep the club O’s in Baltimore for the long term. The current stadium lease extension is set to expire Dec. 31.
No details were provided at the game. On Friday, representatives of the club and Gov. Wes Moore said they had signed a “memorandum of understanding,” containing a series of agreed-upon terms as a precursor to a lease.
The agreement was hailed by elected officials, fans and others. But questions remained about what the document proposes, when an actual lease might be signed, and why it has taken years to arrive at this point.
Here are 10 questions and answers about the lease situation:
What did the parties actually sign?
It’s a nonbinding “memorandum of understanding” that is not a lease but could be a significant step toward one. The MOU says it outlines “key components” of the team’s and stadium authority’s plans and remains subject to “additional modification.” It was signed by Orioles Chairman and CEO John Angelos and Maryland Stadium Authority Chairman Craig Thompson.
Is that different from what fans were told in the videoboard announcement during the game?
The Orioles’ announcement referred to a “deal” but did not say whether it was a lease, an MOU or something else. There was a broad assumption, based on the wording and the celebratory demeanor of Gov. Wes Moore and Angelos, that the agreement was final.
The announcement said: “Earlier today, the Orioles, Governor Wes Moore and the State of Maryland, and the Maryland Stadium Authority agreed to a deal that will keep the Orioles in Baltimore and at Camden Yards for at least the next 30 years!!”
Would the MOU terms commit the team to Baltimore for the long term?
The document says the lease will require the Orioles to play home games at Camden Yards. As many as six regular-season games are permitted to be played elsewhere under Major League Baseball rules.
What if a new lease is not finalized before the current one expires at the end of the year?
It is not known when a lease will be signed. The Orioles and the state say they will work diligently to sign a deal — and get it approved by the Board of Public Works — before Dec. 31. But they acknowledge that it could be necessary to sign another short-term extension of perhaps one or two years.
Why is the lease taking so long?
The parties started talking about the lease in conceptual terms in 2018. Because the negotiations are private, it’s not known what the holdup is.
Would the General Assembly need to approve funding if these terms end up in a lease?
It appears so. According to the MOU, the state would establish a safety and repair fund for ballpark projects. That would cost $3.3 million per year, or about $100 million over a 30-year lease. The memorandum says the fund would be created “subject to receiving the necessary legislative approvals.”
What big changes does the MOU propose?
The Orioles would cease paying rent to the state for Camden Yards but would assume responsibility for stadium operations and management. That’s a similar arrangement to what the NFL’s Ravens have.
The baseball team’s stadium rent is tied to a formula reflecting the team’s attendance and other factors. Because of the coronavirus pandemic and a string of losing seasons before last year, the rent paid by the Orioles had been relatively low.
Now that the club is performing better and attracting more fans, the rent will rise. The Orioles would benefit from stopping paying rent while they are drawing larger crowds.
Would there be layoffs at the Maryland Stadium Authority if it turned over Camden Yards operations and maintenance to the Orioles, as the MOU proposes?
The document suggests there could be. It says the Orioles will work with the state to make significant efforts “to hire, contract with, or relocate” MSA employees whose jobs are lost in the switch.
What other changes are contemplated?
The MOU would allow the Orioles to work with private firms to develop land around Camden Yards, including the warehouse and Camden Station, that the state and team have long said are underutilized. New development — for example, stores or residences — could entice more people to the area on non-game days, boosting tax revenues.
Under the plan, the Orioles would pay $94 million in rent over the 99-year term of the development agreement. But the state could lose out on several million dollars a year in rental income that it currently receives from leasing some of the warehouse properties.
Would the lease make changes to Camden Yards?
Leases present opportunities for teams to plan stadium upgrades. Most other big league teams have opened new ballparks since Camden Yards’ 1992 debut, when it was the forerunner of a new generation of baseball-only stadiums in downtown areas.
The club may explore design elements — such as open concourses and more social spaces — that could improve Camden Yards.
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