LA Clippers-Intuit closes over $ 500 million arena naming rights deal

New LA Clippers arena.

Source: LA Clippers

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

The Clippers will call their new complex the Intuit Dome, giving the company increased brand awareness with signage on and around 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 were not made public, but sources from the National Basketball Association told CNBC that the deal is a 23-year deal that overshadows $ 500 million.

By comparison, Chase Bank reached a period of 20 years, roughly $ 300 million naming rights agreement with the Golden State Warriors. And Staples paid entertainment company AEG for $ 100 million when it closed its naming rights agreement for the downtown Los Angeles building in 1999. The company renewed the pact in 2009 and now has lifetime rights to the Staples Center, which currently houses the Lakers and Clippers.

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 automatically billed without the use of cash or cards.

New LA Clippers Arena

Source: LA Clippers

The Clippers estimate that the Intuit Dome will generate about $ 260 million in annual economic activity for Inglewood, including 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. A first official groundbreaking ceremony for the Intuit Dome will take place on Friday afternoon.

“We have designed a product that I am very proud of,” Ballmer told CNBC. “But we are sitting here to celebrate, and we have three years before this thing is done,” he added. “We’re just at a milestone along the way.”

Ballmer said the arena’s exterior design is symbolic of a basketball splashing through a net. He also expressed his enthusiasm for using the concept of the National Football League by “inventing the feel of end-of-zone sequels.” The Intuit Dome will take advantage of four court-side huts directly behind the baseline of the court where Ballmer sits. It will also feature 10 backstage bungalows – private ground-level suites.

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

“It’s about being optimistic for our fans – getting into the building, refueling, energizing,” Ballmer added, clapping his hands like he had just experienced a winning shot. . “Your energy can fuel our team to greater success.”

“Home advantage”

The Intuit Dome was not cheap.

Besides the cost of more than a billion dollars, the former CEO of Microsoft paid $ 66.2 million for the land and $ 400 million in cash to buy the Forum in Inglewood from Madison Square Garden Co. last year. This freed Ballmer from legal battles along with MSG, the company run by NBA team owner James Dolan, who was threatening construction.

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

The Clippers will also capitalize on more team income with their building. The team earns around $ 262 million, according to Forbes. Intuit Dome will help increase this number once opened.

Zucker said the building will be used as an attraction for NBA free agents. Additionally, the Intuit Dome will house the Clippers’ business operations and the team’s training site, which will be located near the top of the area, 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. “This is a home advantage.”

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