Steve Ballmer’s LA Clippers make a giant take care of TurboTax proprietor Intuit
New LA Clippers Arena.
Source: LA Clippers
The Los Angeles Clippers on Friday announced a sponsorship deal with financial software company Intuit, which will hold title rights to the team’s new $ 1.2 billion arena, due to open in Inglewood in 2024.
The Clippers will name their new complex Intuit Dome and give the company increased brand awareness through signage on and around the fully electric arena with 18,000 seats.
Intuit is a financial management technology company listed on the Nasdaq with a market capitalization of $ 156.4 billion. The company’s products include TurboTax, Credit Karma, and QuickBooks.
The terms of the deal with the Clippers were not made public, but National Basketball Association sources told CNBC that it is a 23-year deal that dwarfs $ 500 million.
For comparison: Chase Bank has signed a 20-year name rights contract with the Golden State Warriors worth around $ 300 million. And Staples paid entertainment company AEG over $ 100 million when it entered into its naming rights agreement for the building in downtown Los Angeles in 1999. The company renewed the pact in 2009 and now has lifetime rights to the Staples Center, which is currently home to the Lakers and Clipper.
Clippers owner Steve Ballmer and team president Gillian Zucker gave CNBC and other media a preview of the Intuit Dome on Thursday. The arena will feature a double-sided halo video board with 44,000 square feet of LED lights as well as technology that allows fans to purchase concessions and top up automatically without cash or cards.
In the new LA Clippers arena.
Source: LA Clippers
The Clippers estimate the Intuit Dome will generate approximately $ 260 million in annual economic activity for Inglewood, including over 7,000 full-time and part-time jobs. The Clippers also committed to a $ 100 million benefit package that will include investments in after-school programs, senior services, libraries and housing. The official groundbreaking ceremony for the Intuit Dome will take place on Friday afternoon.
“We have developed a product that I am very proud of,” Ballmer told CNBC. “But we’re sitting here and partying, and we have three years to go before this thing is done,” he added. “We are currently at a milestone on the way.”
Ballmer said the outside design of the arena is symbolic of a basketball splashing through a net. He also expressed enthusiasm for using the National Football League concept by “creating the feel of end-zone suites”. The Intuit Dome will use four cabanas on the field just behind the baseline on the field that Ballmer is sitting on. It will also include 10 backstage bungalows – private suites on the floor.
“This stadium is about being optimistic about our team,” said Ballmer.
“It’s about being optimistic about our fans – get in the building, inflate, recharge,” added Ballmer, clapping his hands as if he had just won a game. “Your energy can lead our team to more success.”
The Intuit Dome wasn’t cheap.
Aside from the $ 1 billion cost, the former Microsoft CEO paid $ 66.2 million for the land and $ 400 million in cash to purchase the Inglewood forum from Madison Square Garden Co. last year Year. It cleared Ballmer of litigation with MSG, the company run by its NBA team owner James Dolan that threatened construction.
The forum was previously the home of the Lakers, where the club played from 1967 to 1999. MSG bought The Forum in 2012 for $ 23.5 million.
The Clippers will also benefit from more team income with their building. According to Forbes, the team makes around $ 262 million. Intuit Dome will help increase that number once it is opened.
Zucker said the building would be used as an attraction for NBA free agents. In addition, the Intuit Dome will house the Clippers’ business operations and the team practice area with two basketball courts, which will be located in the upper area of the site.
“There’s a lot of competition in the NBA. We want to be where the players want to play,” said Zucker. “This is about home advantage.”