Town of Foxborough fires back at Kraft Group over licensing fees lawsuit, asks court for dismissal
With just one World Cup match remaining in New England, the town of Foxborough is asking a judge to dismiss a lawsuit brought by the Kraft family company that owns Gillette Stadium, arguing that the company — not local taxpayers — is contractually obligated to pay the public safety costs associated with events at the venue.
Kraft Sports and Entertainment LLC and the New England Patriots sued the town in Norfolk Superior Court last month, accusing Foxborough officials of improperly using the stadium’s annual entertainment license renewal to impose nearly $1 million in charges that are not authorized under state law.
The Kraft Group alleged the town unlawfully used its licensing authority to extract additional payments in exchange for renewing the license required to host sporting events and concerts at Gillette. They contend the conditions attached to the license exceed the town’s legal authority and amount to an “illegal tax.”
On Tuesday, Foxborough officials asked the court to dismiss the complaint. They accused Kraft Sports of demonstrating a “startling lack of candor” by omitting what the town says are longstanding contractual obligations requiring it to reimburse Foxborough for public safety costs unique to events at Gillette.
In a 61-page answer and counterclaim, the town argued Kraft Sports “willfully” conflated state licensing law with its contractual obligations under the stadium lease and “purposely” failed to disclose those obligations.
“While the plaintiffs, a collection of multibillion-dollar corporations, would prefer to have Foxborough taxpayers bear these expenses, they are contractually bound to pay for the public safety services that are necessary to ensure safe and efficient events at their private venue,” the town wrote in its filing.
Foxborough officials said Gillette Stadium relies heavily on the town’s public safety departments to stage major events, noting its Police Department “coordinates a massive security effort” involving “dozens of Massachusetts communities” to provide security.
The town argued that if Kraft Sports were relieved of those contractual requirements, Foxborough would be unable to provide the necessary public safety services, and therefore could not issue the entertainment license.
A spokesperson for Kraft Sports did not immediately respond to a request for comment Tuesday.
The dispute stems from months of negotiations over Gillette’s entertainment license. In March, Foxborough’s Select Board members threatened to withhold the license needed to host the seven FIFA World Cup matches unless the Kraft Group paid $7.8 million up front to cover security costs. The board insisted that a small town should not be expected to foot the bill.
Read more Coco Gauff rallies to beat Jessica Pegula to reach semifinals; Jannik Sinner to face Novak Djokovic
That dispute was resolved to Foxborough’s liking after the Kraft Group pledged to underwrite the security costs. Kraft Sports alleged Foxborough then used what should have been a routine renewal for an entertainment license in April for the World Cup “as a pretext” to charge them about $1 million in new administrative fees. Under state law, the complaint alleged, the town cannot charge more than $100 for an entertainment license.
Kraft Sports and the Patriots already pay the town $8 million each year for other costs, the suit said.
The complaint said the town claims the new annual charge is not a “fee” but instead is a “condition of” the entertainment license for Gillette Stadium. Kraft asked the court to void the terms of the licensing renewal “to the extent they constitute a promise or obligation to pay financial consideration to Foxborough” in excess of the $100 renewal fee, except for “services rendered pursuant to freely negotiated contracts,” the suit said.
However, the town asserted Tuesday that many of the claims were “misleading” or “purposefully mischaracterized.” Town officials argued municipalities have “both a statutory right to charge reasonable administrative fees to process an application and a right to impose conditions relating to reimbursement of costs.”
The town also denied Kraft’s allegation that it had presented the company “with an invoice for $953,640” as the suit alleged, saying it instead had issued its first invoice — a one-twelfth installment —under the terms of the entertainment license.
In addition to asking the court to dismiss the lawsuit, Foxborough requested the court to award the town “its costs, fees, and expenses in the defense of this matter due to the frivolity of the complaint and the plaintiffs’ lack of candor to this tribunal.”
“The town remains committed to protecting both public safety and the interests of its residents while ensuring that events at Gillette Stadium can continue to be conducted safely and successfully,” Foxborough officials said in a statement.
The town also said it is committed to “ensuring that the owners of Gillette Stadium adhere to their obligations to the town.”
Read more Ruben Vargas sends Switzerland into WC quarterfinals in shootout win over Colombia
Material from a previous Globe story was used in this report.
Post Comment