LOS ANGELES – The Los Angeles Clippers scored a huge off the court win on Tuesday, as The Madison Square Garden Company (NYSE: MSG) reached an agreement with the newly formed CAPPS LLC to sell The Forum in Inglewood.
What was once the biggest hurdle in the Clippers’ quest to build a new arena in the Inglewood area has now been cleared. CAPPS LLC was recently formed by L.A. Clippers Chairman Steve Ballmer and vice-chairman Dennis Wong for the purpose of acquiring The Forum. The new deal is a double victory: CAPPS LLC will acquire the venue, which also puts to an end nearly two years of litigation regarding the new arena. As part of the agreement, all of MSG’s current Forum employees will be extended employment offers by CAPPS LLC.
The transaction is pending, as it remains subject to Hart-Scott-Rodino and other customary closing conditions. However, the transaction is expected to close during the second calendar quarter of 2020. CAPSS LLC is purchasing The Forum for $400 million in cash.
“This is an unprecedented time, but we believe in our collective future,” said Ballmer. “We are committed to our investment in the City of Inglewood, which will be good for the community, the Clippers, and our fans.”
With The Forum and the new Clippers arena being under the same ownership, this will allow for coordinated programming between the two venues, which will help with traffic congestion around Clippers games and concerts.
“We know traffic is something that many Inglewood residents worry about. While we have gone to great lengths to provide an unprecedented traffic-management plan for the new basketball arena, this acquisition provides a much greater ability to coordinate and avoid scheduling events at the same time at both venues,” said Chris Meany, a principal of Wilson Meany, the developer overseeing the new basketball arena project.
The new Clippers arena will be a privately financed, state-of-the-art, 18,000 seat arena as well as team headquarters complex and community center, located on West Century Boulevard between South Prairie Avenue and South Yukon Avenue. The new project is currently undergoing an environmental review by the City of Inglewood, with a public hearing expected to begin this summer to approve the project.
The Forum will continue operating as one of the premier music venues in the United States.