INGLEWOOD, CALIF. — CAPSS LLC, a new company formed by Los Angeles Clippers’ chairman Steve Ballmer and vice chairman Dennis Wong, has agreed to acquire The Forum in Inglewood for $400 million in cash.
By reaching an agreement with The Madison Square Garden Co. (NYSE: MSG), the litigation battle between the team and seller over the proximity of the basketball team’s new arena to the older events venue will end.
MSG, which also owns the New York Knicks, argued that the Clippers’ proposed NBA arena was too close to The Forum and would compete as an events venue. CAPSS says the 17,500-seat Forum will continue to operate as a music venue and the new ownership will extend employment offers to current employees. The parties expect to close the sale in the second quarter of this year.
The new Clippers arena will be situated on West Century Boulevard between South Prairie Avenue and South Yukon Avenue, one mile south of The Forum. The proposed stadium will offer 18,000 seats and will include the team’s headquarters and a community center.
The stadium will be privately funded and is currently undergoing an environmental review by the City of Inglewood, which the Los Angeles Times reports will occur this summer. After it is certified, a 270-day window will be opened for legal contention. Public hearings to approve the project are planned for later this summer.
The Clippers are expecting to break ground on the stadium in summer 2021, and to open the stadium in time for the 2024-25 season. The Clippers’ lease at Staples Center ends in 2024.
The new Clippers arena will be situated on West Century Boulevard between South Prairie Avenue and South Yukon Avenue, one mile south of The Forum. The proposed stadium will offer 18,000 seats and will include the team’s headquarters and a community center.
“This is an unprecedented time, but we believe in our collective future,” says Ballmer. “We are committed to our investment in the City of Inglewood, which will be good for the community, the Clippers and our fans.”
According to CAPSS, having The Forum and the new Clippers arena under the same ownership will allow for coordinated programming between the two venues, improving traffic congestion around basketball games and concerts.
The Los Angeles Lakers of the NBA and Los Angeles Kings of the NHL played their games at The Forum until 1999, when both teams, as well as the Clippers, moved to Staples Center in Los Angeles. Over its 50-year history, The Forum has hosted events for the 1984 Summer Olympics, as well as legendary performances by acts such as The Rolling Stones, Led Zeppelin, Bob Dylan, Barbra Streisand, The Eagles and Kiss.
MSG’s stock price closed on Wednesday, March 25, at $231.87 per share, down from $286.11 per share a year ago.
— Alex Tostado