County to reap bigger sales share from Miami Heat Store at airport

The Miami Heat Store, which has been operating on a month-to-month lease since its 2011 contract at Miami International Airport expired, is about to get a new lease on life from Miami-Dade commissioners – with the county getting a larger percentage of sales revenues.

The store, owned by an affiliate of the Miami Heat basketball team, has been scoring high in revenue ratings for about 15 years, based on the popularity of the team. Revenues tend to rise with team standings.

Until now, the store has been paying as rent 8% of revenues garnered by selling a full assortment of Miami Heat-licensed merchandise including team-licensed gear, jerseys and novelty items. While other airport stores provide items symbolizing the Heat, none has the range of merchandise that the Miami Heat Store offers in its 1,381 square feet in Concourse D.

But a new lease and concession agreement facing an Airport and Seaport Committee vote this week ups the ante from the store to either 10% of gross revenues or the prevailing terminal rental rate for the lease of the location.

There was no competition for the lease. “Market Research did not identify any other vendors who would be authorized to operate a Miami Heat-licensed retail store,” a memo to the committee from Mayor Daniella Levine Cava said. The lease is with Airball Sports II, which owns the Miami Heat Store and is part of the Heat business structure – Airball’s principal is Eric Woolworth, president of business operations of the Heat Group.

Although other sports teams including the Miami Marlins have since had a presence in the airport’s retail scene, the Miami Heat Store came first.

Local business and civic leaders had been seeking a sports presence at the airport to serve visitors to Miami. The Greater Miami Chamber of Commerce’s Sports Committee had taken the lead in that for a few years, followed by the Miami-Dade Sports Commission, which in 2009 took up the banner, working with the airport to create a single store serving all area professional teams.

In the end, though, it was the Miami Heat alone that opened a store. In its first 12 months the store’s revenues were reportedly $1.1 million, a number destined to rise.

The new contract when approved will give the Miami Heat Store an eight-year lease with two more years at the airport’s option. The estimated revenues to the county alone for 10 years is $17 million, which, at 10% of sales, would put the store’s 10-year total sales at $170 million.

Because the contract is a non-competitive agreement, it will require two-thirds positive votes both in committee and then from the county commission to move the store from its month-to-month lease to a long-term agreement.

The Heat has been among sports leaders in marketing its gear. It won the National Basketball Association’s Team Retailer of the Year award in 2003, 2006 and 2011, when it signed its lease at the airport. The airport became the Heat’s fourth retail site, following stores at what then was AmericanAirlines Arena, the Dolphin Mall and an online store.

“Given the international appeal of our team, Miami International Airport is the perfect destination for the newest Miami Heat Store,” Mr. Woolworth said at the time. “We are confident the store will be a tremendous success.”

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