LA Clippers-Intuit Reaches $ 500 Million Arena Naming Rights Deal

LA Clippers-Intuit Reaches $ 500 Million Arena Naming Rights Deal

New LA Clippers Arena.

Source: LA shears

The Los Angeles Clippers announced on Friday a sponsorship deal with financial software company Intuit that will own the ownership rights to the team’s new $ 1.2 billion arena, which is slated to open in Inglewood in 2024.

Clippers will call its new campus the Intuit Dome, allowing the company to increase brand awareness through signage in the 18,000-seat all-electric arena.

Intuit is a financial management technology company that trades on the Nasdaq and has a market capitalization of $ 156.4 billion. The company’s products include TurboTax, Credit Karma, and QuickBooks.

Terms of the deal with the Clippers have not been made public, but sources from the National Basketball Association told CNBC that the deal is a 23-year deal that involves $ 500 million.

By comparison, Chase Bank signed a nearly $ 300 million 20-year naming rights deal with the Golden State Warriors. And Staples paid entertainment company AEG over $ 100 million when it closed its naming rights deal for the downtown Los Angeles building in 1999. The company renewed the deal in 2009. and now owns the lifetime rights to the Staples Center, which is currently the home of the Lakers. and shear.

Clippers owner Steve Ballmer and team president Gillian Zucker gave CNBC and other media a preview of the Intuit Dome on Thursday. The arena will feature a double-sided Halo video card with 44,000 square feet of LED light, along with technology that allows fans to purchase concessions and be billed automatically without the use of cash or cards.

The new arena inside the LA Clippers.

Source: LA shears

The Clippers estimate that the Intuit Dome will generate about $ 260 million in annual economic activity for Inglewood, which includes more than 7,000 full-time and part-time jobs. The Clippers also pledged $ 100 million in community benefits that will include investments in after-school programs, senior services, libraries and housing. The official foundation stone of Intuit Dome will take place on Friday afternoon.

“We have created a product that I am very proud of,” Ballmer told CNBC. “But we are celebrating here, and we have three years to complete this work,” he said. “We are at an important stage on the way.”

Ballmer said the arena’s exterior design symbolized a basketball splashing through a net. He also expressed his enthusiasm for using the concept of the National Football League as “pioneering the end zone sequels experience.” The Intuit Dome will feature four court side sheds directly behind the baseline of the court where Ballmer is seated. It will also feature 10 backstage bungalows – private ground-level suites.

“This stage is all about being optimistic for our team,” Ballmer said.

“This is for our fans to be optimistic – getting into the building, refueling, building up energy,” Ballmer said, clapping his hands as if he had just experienced a winning shot. . May your energy bring greater success to our team. “

“Home advantage”

The Intuit Dome was not cheap.

In addition to costing over $ 1 billion, the former Microsoft CEO last year paid $ 66.2 million for land and $ 400 million in cash to buy the Forum in Inglewood from the Madison company. Square Garden. This freed Ballmer from a legal battle with MSG, the company run by NBA team owner James Dolan, which had threatened construction.

Forum was once home to the Lakers, where the club played from 1967 to 1999. MSG bought The Forum in 2012 for $ 23.5 million.

The Clippers will also capitalize on more team income with their building. According to Forbes, the team earns around $ 262 million. The Intuit dome will help increase this figure when opened.

Zucker said the building will be used as an attraction for NBA free agents. In addition, the Intuit Dome will house the business operations and training of the Clippers team, located near the top of the arena with two basketball courts.

“There is a lot of competition in the NBA. We want to be where the players want to play, ”Zucker said. “These are home benefits.”

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