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, in a move that will also resolve ongoing litigation about plans for a new NBA arena. As part of the deal, all current Forum employees of MSG will receive job offers from CAPSS LLC, the new owner.
CAPSS LLC is expected to finalize their purchase of The Forum for $400 million in cash during the second calendar quarter of 2020. The transaction, however, is still subject to Hart-Scott-Rodino and other standard closing conditions.
The Clippers are planning to establish a new arena project, which will be privately funded. This state-of-the-art project will feature an 18,000-seat basketball arena, team headquarters complex, and a community center. The location is set to be on West Century Boulevard between South Prairie Avenue and South Yukon Avenue. Currently, the City of Inglewood is conducting an environmental review of the project. Later this summer, public hearings for project approval are anticipated to take place.
Ballmer stated, “We are in an unparalleled period, yet we have faith in our shared future. Our dedication to our investment in the City of Inglewood is unwavering, and it will benefit the community, the Clippers, and our fans.”
The same ownership of The Forum and the new Clippers arena will enable coordinated programming between the two venues, thus alleviating traffic congestion around basketball games and concerts.
Chris Meany, a principal of Wilson Meany, the developer managing the new basketball arena project, acknowledges the concerns of many Inglewood residents regarding traffic. He stated, “We’ve developed a unique traffic-management plan for the new basketball arena, taking significant measures to address this issue. However, this recent acquisition presents us with a greater capacity to coordinate and prevent simultaneous events at both venues.”
The new arena for the L.A. Clippers is projected to generate approximately 7,500 well-paid construction jobs and 1,500 permanent positions once the complex becomes operational. Beyond the financial and public advantages, the Clippers have suggested a community benefits package worth $100 million.
