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The City Council will deliberate on an amendment to the Tournament of Roses Association’s Master License Agreement (MLA) for 2020-21.
The amendment would excuse and release both parties of responsibilities under the MLA.
The agreement requires payments related to the rental of city properties, and expense fees related to the staging of the New Year’s events. In addition, there are payments that the city receives from the tournament that are related to community support, and association gifts
“The COVID-19 pandemic has created an unforeseeable circumstance beyond the control of both the city and tournament,” according to a city staff report. “It therefore meets the criteria for a force majeure event, specifically related to the staging of the Rose Parade.”
A force majeure clause is a contractual provision which excuses one or both parties’ performance obligations when circumstances arise which are beyond the parties’ control and make performance of the contract impractical or impossible.
The parade will not be held for the first time since World War II due to the coronavirus, which is currently raging out of control across the country.
Following Tournament Year 2021, the city expense fee and other payments will revert to the terms stipulated in the MLA, unless subsequent amendments are needed
Fees will still be collected for the Rose Bowl game which is expected to be played on Jan. 1.
“With regards to expenses, the RBOC (Rose Bowl Operating Co.) and the tournament have agreed on a revised cost sharing structure for COVID-19 preparations and game-day expenses, regardless of whether or not the Rose Bowl Game is canceled,” according to a city staff report.
“The MLA also requires an additional payment from the tournament in the form of an association gift of $100,000 to the city/stadium. It is anticipated that the Tournament will continue to provide the association gift if the Rose Bowl Game occurs.”
The city and the tournament must agree to a force majeure, with both parties being excused and released of responsibilities under the MLA.
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