From the arena naming rights contract:This sounds absurd. Even if true I would imagine a work around could be agreed upon since the expansion would benefit them as well.
“During the Term, JM and Rutgers may jointly plan and develop an exterior plaza development (the ‘Plaza Development’) near the Arena intended as a potential showcase of the Agreement. All aspects of the Plaza Development, including timeline, investment levels and funding strategies of development will be mutually-agreed upon by the parties.’’
The rectangular land parcel between the RAC and Rockefeller Road is the logical location for a new arena. For Rutgers to build a new arena, Rutgers will need to cut Jersey Mike's into the economics of the arena deal.
This plaza parcel has a lot of value even if a new arena isn't built. The Livingston campus has been expanding in the direction of the plaza parcel for years, with new developments including the business school, the training center for 4 sports teams, and the retail and apartment project next to the plaza parcel. The naming rights contract gives Jersey Mike's an option to influence the economics of whatever happens on the parcel.
While valuing Jersey's Mike land option is difficult, this land deal helps offset the payments the company owes for the naming rights.