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 will take ownership of the Inglewood venue from MSG by settling an agreement, which also resolves the pending litigation related to plans for the new NBA arena. The agreement includes a clause that ensures all existing Forum employees of MSG will receive job offers from the new owner.
CAPSS LLC is set to buy The Forum for $400 million in cash. The deal, still subject to Hart-Scott-Rodino and other standard closing conditions, is anticipated to be finalized in the second quarter of 2020.
The Clippers are planning a privately-funded state-of-the-art basketball arena with 18,000 seats, which would also serve as a team headquarters complex and community center. The proposed location is on West Century Boulevard, between South Prairie Avenue and South Yukon Avenue. At present, the project is under environmental review by the City of Inglewood. Public hearings for project approval are anticipated to take place later this summer.
“Ballmer asserted, “Though these are exceptional times, we have faith in our shared future. Our commitment to investing in the City of Inglewood remains strong. This will not only benefit 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, which will enhance traffic congestion management during basketball games and concerts.
“Many Inglewood residents are concerned about traffic. We’ve made extensive efforts to create an unparalleled traffic-management plan for the new basketball arena. However, this acquisition allows us to better coordinate and prevent simultaneous events at both venues,” stated Chris Meany, a principal at Wilson Meany, the development company managing the basketball arena project.
The new arena of the L.A. Clippers is projected to generate around 7,500 high-paying construction jobs and 1,500 ongoing jobs once the facility is operational. Beyond the economic and civic advantages, the Clippers have suggested a community benefits package worth $100 million.
