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 over the Inglewood venue from MSG after reaching an agreement that also resolves disputes over plans for a new NBA arena. Under the terms of this agreement, all existing Forum employees of MSG will be offered jobs by CAPSS LLC, the new owner.
CAPSS LLC is buying The Forum for $400 million in cash. The sale, which is still subject to Hart-Scott-Rodino and other standard closing conditions, is anticipated to be finalized in the second quarter of 2020.
The latest Clippers arena project, which is set to be privately funded, aims to build a cutting-edge 18,000-seat basketball arena, team headquarters complex, and community center. It will be situated on West Century Boulevard, nestled 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 take place later this summer.
“Though we are in an unparalleled period, we have faith in our shared future,” Ballmer expressed. “Our dedication to our investment in Inglewood remains firm, a decision that will prove beneficial to the community, the Clippers, and our fans.”
The same ownership of The Forum and the new Clippers arena will facilitate coordinated programming between the two venues, thus alleviating traffic congestion during basketball games and concerts.
Chris Meany, a principal of Wilson Meany, the developer managing the new basketball arena project, acknowledged that traffic concerns are a significant issue for many Inglewood residents. He stated, “We have implemented an unmatched traffic-management plan for the new basketball arena. However, this acquisition further enhances our ability to organize and prevent simultaneous events at both venues.”
The new arena of the L.A. Clippers is estimated to generate 7,500 high-paying construction jobs and 1,500 permanent positions once the facility is operational. The Clippers are also proposing a $100 million package of community benefits, adding to the economic and civic advantages.
