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 take over the Inglewood venue after striking a deal with MSG. This move simultaneously settles lawsuits regarding plans for the new NBA arena. As per the agreement, all of MSG’s existing Forum employees will receive job offers from the venue’s new owner.
CAPSS LLC is buying The Forum for $400 million in cash. This transaction is still subject to Hart-Scott-Rodino and other standard closing conditions and is anticipated to be finalized during the second quarter of the 2020 calendar year.
The Clippers are planning a new state-of-the-art arena project. This privately financed project would feature an 18,000-seat basketball arena, a team headquarters complex, and a community center. The location is slated 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. Public hearings to approve the project are anticipated for later this summer.
Ballmer stated, “Despite the uniqueness of the current times, we have faith in our shared future. Our dedication to investing in the City of Inglewood is unwavering, benefitting 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, which will help improve traffic congestion during basketball games and concerts.
“Many Inglewood residents are concerned about traffic. We’ve developed an extensive traffic management plan for the new basketball arena. However, this acquisition will greatly enhance our ability to coordinate and prevent simultaneous events at both venues,” said Chris Meany, a principal at Wilson Meany, the company responsible for the new basketball arena project.
The new arena of the L.A. Clippers is projected to generate approximately 7,500 high-income construction jobs and a further 1,500 permanent jobs once the facility is operational. Besides the economic and civic advantages, the Clippers have suggested a community benefits package worth $100 million.
