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 through an agreement with MSG, effectively ending the litigation over plans for the new NBA arena. In the terms of the agreement, all of MSG’s current Forum employees will be offered employment by the new owner.
CAPSS LLC is buying The Forum for $400 million cash. This deal, still subject to Hart-Scott-Rodino and other standard closing conditions, is anticipated to be finalized in the second calendar quarter of 2020.
The Clippers are planning a new arena project that will be privately funded. The state-of-the-art project will include an 18,000-seat basketball arena, a team headquarters complex, and a community center. It will be located 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. Public hearings for project approval are anticipated to be held later in the summer.
“Ballmer stated, “We are living in an unprecedented era, but we have faith in our shared future. Our commitment to our investment in the City of Inglewood remains strong. This will benefit not only the community but also the Clippers and our fans.”
The same ownership of The Forum and the new Clippers arena will enable coordinated programming between the two venues, mitigating traffic congestion around basketball games and concerts.
“Many Inglewood residents are concerned about traffic, a fact we are well aware of. We’ve implemented an exceptional traffic-management plan for the new basketball arena. However, this acquisition significantly enhances our ability to synchronize and prevent simultaneous events at both venues,” stated Chris Meany, a principal at Wilson Meany, the firm managing the new basketball arena project.
The new arena of the L.A. Clippers is projected to generate approximately 7,500 lucrative construction jobs and 1,500 permanent jobs once the complex becomes operational. Beyond the economic and civic advantages, the Clippers have suggested a package of community benefits worth $100 million.
