The Los Angeles Memorial Coliseum was flirting with insolvency, but that didn't stop its government overseers from incurring hundreds of thousands of dollars in legal expenses to keep secret their deliberations on a new long-term lease for the stadium.
For more than a year, the Coliseum Commission fought an open-government lawsuit that challenged the legality of the closed-door talks on USC's lease of the historic venue. The suit also sought to make records related to the deal public.
After losing the court battle, the commission had to pay about $415,000 in legal expenses incurred by the plaintiffs in the case, the Los Angeles Times and a 1st Amendment group called Californians Aware. The award, paid last week, is one of the largest ever granted under the state's transparency statutes, experts said.
The commission was also forced to give The Times hundreds of pages of Coliseum emails. Their contents support critics who said stadium officials worked closely with USC to limit scrutiny of the deliberations while drafting a lease that favored the private university at the expense of the taxpayers who own the Coliseum.
The emails, along with others obtained earlier under the California Public Records Act, show the Coliseum's top executive granting nearly every wish USC had for the negotiations and then helping the university build and maintain political support for the lease.
The emails between Coliseum executive John Sandbrook and USC administrators, which cover the four months of talks on principal terms of the lease, feature none of the bargaining-table tensions that are typical of such negotiations. The documents show Sandbrook and commissioners deferring to USC on matters of transparency; at the school's insistence, they signed a confidentiality agreement barring both sides from discussing the negotiations publicly.
USC Senior Vice President Todd Dickey, who also received the email, responded: "If you want us to hold an open house … and listen to 500 people speak for 5 hours, and maybe answer a few questions, I guess we can do that, but I see no value in that at all."
Knabe and Sandbrook dropped the idea of a special public hearing. Knabe was unavailable for comment, a spokesman said. Sandbrook and Dickey did not respond to requests for comment.
The lease talks, which began in 2011, were in stark contrast to the commission's negotiations with USC four years earlier, when the panel flatly rejected many of the school's proposals.
But the more recent discussions came as a corruption scandal unfolded in the Coliseum's management ranks. The controversy exposed the stadium's weak financial underpinnings and proved embarrassing to the commission.
As a result, a majority of the panel members, who represent the city, the Board of Supervisors and governor's office, opted to get out of the stadium management business and renegotiate their existing 25-year lease with USC, whose football team plays at the Coliseum.
The redrawn, 98-year agreement gave USC almost total control of the Coliseum and neighboring Sports Arena and nearly all revenue from the properties, including those from the sale of naming rights and advertising.
In return, the school picked up the commission's annual rent to the state for the Coliseum land, which starts at $1 million, and promised to spend at least $70 million on stadium improvements.
The Times first asked for the Sandbrook-USC emails in February 2012. The commission produced some later that year but said the rest were exempt from disclosure because they involved confidential real estate negotiations.
The commission also rejected The Times' position that the closed deliberations violated California's Ralph M. Brown Act, which requires the government to do its business in public.
In July 2012, The Times and Californians Aware sued. In October of this year, Los Angeles County Superior Court Judge Luis A. Lavin found that the commission repeatedly violated the records law and Brown Act. He also determined that Sandbrook testified falsely in connection with his claim that secrecy was warranted because of the threat of a lawsuit by USC.
In a deposition, Sandbrook said the commission's public agendas included references to closed-door discussions of a possible lawsuit by USC. However, the panel's internal records showed no such discussions.
Lavin ordered the commission to release the emails and other documents and record all its closed-door meetings for three years.