Pending court approval, Missouri State University and JD Holdings, L.L.C. have reached an amicable settlement agreement regarding the university’s claim against the company for the remainder owed to Missouri State for the naming rights of JQH Arena.
Under the terms of the settlement, JD Holdings will pay the university an additional $8.4 million. JD Holdings previously paid Missouri State $1.8 million in May 2018.
The settlement payments total $10.2 million.
JD Holdings will pay the remaining $8.4 million in four installments – starting in 2019 and ending in 2022.
The university previously received a total of $24.4 million in payments from the Revocable Trust of John Q. Hammons in exchange for the arena’s naming rights. The balance of the Trust’s payment obligation to the university transferred to JD Holdings in May of 2018, as a result of a bankruptcy settlement reached between the Trust and JD Holdings.
Hammons Field license extended
In addition, the university’s license of Hammons Field will be extended through June 30, 2030 – another 12 years. The license fee is $225,000 per year, subject to an annual CPI increase.
Details of the settlement
The settlement provides the parties with both finality and certainty. It also allows the university to budget for the future, while working to structure a redemption of the Trust’s bond portion on April 1, 2022 – saving approximately $3 million in interest.
The Missouri State University Board of Governors Executive Committee approved the settlement on Sept. 19. The Missouri State University Foundation Board of Trustees approved the settlement on Sept. 21. The terms of the proposed settlement have now been submitted to the bankruptcy court for final approval.
“We are very pleased with the settlement agreement. We think the terms are fair,” said Clif Smart, Missouri State University president. “And we’re optimistic that between the settlement and the resale of the naming rights, the university will recoup the amount still owed.”