CAPSS LLC has reached an agreement with The Madison Square Garden Company (NYSE: MSG) to purchase The Forum in Inglewood, Calif., which will continue to operate as one of the premier live-music venues in the United States. The formation of CAPSS LLC and the acquisition of the Forum were driven by LA Clippers Chairman Steve Ballmer and LA Clippers Vice Chairman Dennis Wong.
CAPSS LLC is set to acquire the Inglewood venue from MSG, through an agreement that also settles litigation over plans for the new NBA arena. In the agreement, it is stipulated that all of MSG’s existing Forum employees will receive job offers from the new owner.
CAPSS LLC is expected to finalize the purchase of The Forum for $400 million in cash during the second quarter of 2020. The transaction still needs to meet Hart-Scott-Rodino and other standard closing conditions.
The proposed Clippers arena project is set to be a privately funded, cutting-edge, 18,000-seat basketball arena, along with a team headquarters complex and community center. The location is planned to be on West Century Boulevard, between South Prairie Avenue and South Yukon Avenue. The City of Inglewood is currently conducting an environmental review of the project. It is anticipated that public hearings for the project’s approval will take place later this summer.
Ballmer stated, “We are in an unparalleled period, but we have faith in our shared future. Our dedication to our investment in the City of Inglewood remains unwavering. This will benefit not only the community but also the Clippers and our supporters.”
The same ownership of The Forum and the new Clippers arena will facilitate coordinated scheduling between the two venues, thus alleviating traffic congestion around basketball games and concerts.
Chris Meany, a principal of Wilson Meany, the developer responsible for the new basketball arena project, acknowledged the concerns many Inglewood residents have about traffic. He stated, “We understand that traffic is a significant worry for many living in Inglewood. We’ve developed an exceptional traffic-management plan for the new basketball arena. However, this acquisition will greatly enhance our ability to manage and prevent simultaneous events at both venues.”
The new arena for the L.A. Clippers is projected to generate about 7,500 high-wage construction jobs and 1,500 permanent jobs once it’s operational. Besides the economic and civic advantages, the Clippers are also proposing a community benefits package worth $100 million.
