Facts

Presto Hospitality (Presto) is a public company that is in the process of signing a 10-year concessions agreement with a major league baseball stadium owner (Stadium Co.). The agreement would give Presto the right and obligation to operate all of the stadium's fixed concession stands and portable food and beverage carts, to provide food and beverage service to premium seating areas (including suites), and to have hawkers selling concessions in the aisles of the stadium (Sodas! Peanuts!), collectively, the "Food and Beverage Facilities." The locations of fixed concession stands within the stadium are designated in architectural drawings included within the draft concessions agreement. The draft contract states that Stadium Co., at its option and at its cost (such as the cost to rebuild leasehold improvements), can require Presto to move its locations within the stadium.

The concessions agreement will require Presto to remit 50% of its gross food sales and 52% of its gross alcohol sales to Stadium Co. in exchange for the right to operate at the stadium. Presto will also be required to make an upfront payment of $5 million to Stadium Co., which will be used toward capital improvements, build-outs, and branding of the concession facilities. Throughout the operating period of this agreement, Stadium Co. will have the right to approve all of Presto's proposed menu items, pricing, and choices of suppliers, and Stadium Co. has indicated during negotiations that it plans to actively exercise this approval authority. To be chosen as the concession provider for this stadium, Presto submitted a successful bid and was selected from a group of competing potential concessionaires.

QUESTION:

I know that if it were a lease agreement, the $5 million payment would be recorded as a leasehold improvement that I amortize over the 10 year period. Assuming Presto's contract is NOT a lease agreement, what is the accounting for the $5 million up front payment?I was trying to find it in the FASB codification, but I am coming up empty.