At Staples Center, Ballmer said, the Clippers only saw a “small percentage” of revenue streams like suite sales.Īsked how big the difference was between owning a stadium and being a tenant, Zucker said: “What is the largest measurement that you can possibly think of?”Īrenas generate revenue in fairly obvious ways-tickets, merchandise, concessions, parking, sponsorship, etc.-and modern buildings are designed to maximize those opportunities. Sportico’s most recent valuations pegged the team’s revenue in 2018-19 (a pre-COVID number) at roughly $300 million, a number that will increase when the team has its own arena. With a team-owned arena, that percentage will likely change dramatically. ![]() The team plays in a big market, which helped fuel one of the NBA’s largest local TV deals, and has spent the last 20 years as the third-wheel tenant in the Staples Center, owned by AEG, an investor in both the NBA’s Lakers and NHL’s Kings. For the Clippers those numbers are currently skewed more towards media. NBA teams typically make about half of their revenue from local and national media, with 40-45% coming from arena sales and sponsorships. “By the time we are done with all of this, more than 3.5 million minutes ( editor’s note: that’s more than 6 ½ years) will have been invested in the design, the redesign, and the redesign redesign.” “The building is super personal to Steve, to call it a passion project would be an understatement,” Zucker said. The team plans to open the venue for the 2024-25 season. It’s been an arduous process, including a lawsuit involving the owners of the Knicks, but on Thursday afternoon, Ballmer and CEO Gillian Zucker laid out their vision for the 18,000-seat venue, which will also serve as its practice facility and headquarters. The Intuit Dome, as the arena will be called, has been a goal for Ballmer since he purchased the team in 2014 from the family trust of embattled real estate mogul Donald Sterling for $2 billion, at the time a record for an NBA team. To get all of our products-Credit Karma, TurboTax and QuickBooks-all in the hands of more customers.” ![]() “And we are able to use this as a platform to share our brands. “We wanted a partner that was customer-obsessed and tech-obsessed,” Intuit CMO Lara Balazs said. In December the company closed an $8.1 billion purchase of personal finance company Credit Karma this past week it announced a $12 billion acquisition of email marketing platform MailChimp. The deal continues a big year for Intuit, whose brands include TurboTax and QuickBooks. While terms weren’t announced, someone familiar with the deal said it was the most expensive, in total dollars, in NBA history. The franchise has signed a new 23-year naming rights deal with fintech platform Intuit. The Clippers officially break ground on the building in a ceremony on Friday in Inglewood, and will do so with a big piece of the financial plans already locked in. ![]() “We made some design decisions that cost money,” Ballmer said, “because we care a lot about the environment and a lot about our fan base.” The leg room - which will be a constant throughout the arena, from the lowest rows all the way to the very top - is going to far exceed the standard in most buildings.That’s one of the luxuries of running a private company as opposed to a public one (Ballmer spent nearly 15 years as Microsoft’s CEO)-you can spend an extra $500 million on your headquarters. He wants them comfortable in those seats, too. and we’re trying to get you back in your seat as quickly as we can,” Ballmer said. The reason is simple: Ballmer wants fans watching the game from their seat and being part of a home-court advantage. Other than the paying-for-it part, it would be akin to opening the refrigerator at home, getting a drink and going back to the couch.Įven the best suites won’t have big televisions. There would be no cashier, nobody to take the order, and the customer’s account would be charged automatically. Technology will be everywhere, such as some that would allow fans to leave their seat, walk to a concession stand in the concourse, grab a beverage or snack and then - if they do as Ballmer hopes - get right back to their seat. “Today, a construction site but tomorrow, a global destination for basketball fans, music lovers and anyone who’s ever been moved to stand with 18,000 voices that echo as one,” Clippers President of Business Operations Gillian Zucker said.
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