DETROIT — The Detroit Lions have agreed to a $525 million deal with the top-ranked Cipro Dex Corporation for its Cipr Dex® product line, the team announced Friday.
The agreement also includes an option to purchase a second Cipri Dex product line of up to $5 million.
The Lions will receive a 10 percent stake in Cipra Dex, which makes the Cipradex® drug for treating arthritis, according to the team.
It also will receive equity ownership in the company.
The deal will be the most lucrative for a single company by far in the history of the NFL, according the Sports Business Journal.
The Lions’ new agreement is the second-largest in franchise history.
The team also owns the rights to the NFL’s Pro Football Hall of Fame and Pro Football Museum.
Detroit Lions owner Martha Ford and general manager Bob Quinn will receive cash compensation of $150 million for the new agreement, and $1.9 million for each of the first three years of ownership.
Detroit has a $7.8 billion franchise fee tied to the franchise fee.
The new deal includes an additional $600 million cash payment to help fund the Lions’ stadium renovation.
Detroit’s new stadium has been the subject of multiple proposals from multiple groups.
The city also has to pay $4 million to cover a $3.4 million hole in its debt to the city that was created when the city’s finances were devastated by the Great Recession.
The team is in the process of negotiating with Cipratex to finalize the deal.
The Cipracs deal with Lions is part of a multiyear strategy that includes the purchase of the Detroit Pistons franchise by the city and the acquisition of the NBA’s Detroit Pistons by the Pistons and the Detroit Lions, which is set to be completed this month.
Detroit and the Pistons will each retain a 51 percent share in the team that will be renamed the Detroit Red Wings, and the two sides are expected to begin negotiating a new five-year agreement for the team in January.
The city of Detroit has been working on the plan to rebrand the team for more than a year, and a deal is expected by the end of the year.
The deal will create a new professional sports team in the heart of the city.
The move also will give the Lions the largest sports team ownership group in the country.
The new ownership group will include the NFL franchise and the city of Cleveland, where the Lions are set to begin playing in 2021.
The group will have a combined ownership stake in the two teams that will form the new Detroit Lions.