Los Angeles city officials want the owners of the Los Angeles Kings to develop a $240 million, 20,000 seat sports and entertainment complex near the downtown Los Angeles Convention Center. The arena could also be used by the Los Angeles Lakers, which currently share the Great Western Forum in Inglewood with the Kings. Lakers owner Jerry Buss has said he would follow the Kings to a downtown facility, but he would prefer to have a new arena built in Inglewood, 15 miles southwest of downtown. August 9, 1996.
Edward Roski, an owner of the NHL's Los Angeles Kings, has signed a formal proposal to build a $240 million sports arena near the downtown convention center if the city agrees to a financing plan. The arena would house the Kings and Lakers beginning in 1999-2000. August 16, 1996.
Los Angeles officials have signed a letter endorsing a formal proposal by the owners of the Los Angeles Kings to build a $240 million sports arena by 1999. Edward Roski, an owner of the Kings, signed the formal proposal to build the arena near the downtown convention center on August 16, 1996 - provided the city agrees to a financing plan. August 20, 1996.
The planned arena would be developed and owned by the Los Angeles Kings, a hockey franchise and shared by the Lakers. Though the facility could cost more than $200 million, the payoff is expected to be substantial.
August 22, 1996 - The Lakers now play in the Great Western Forum, which was built in 1967 and is one of the oldest arena's now used in pro basketball. It has 17,505 seats, compared with 20,000 planned for the new arena. More important, the Forum has no skyboxes or other corporate suites, which can sell for as much as $60,000 a season, or room for the clubs, restaurants and retail stores that accessorize modern arenas.
March 31, 1998 - Official groundbreaking ceremonies took place last week for the Staples Center, L.A.'s new $300-million sports and entertainment facility that will be the new home of the Kings and the NBA's Lakers
April 18, 1998 - The Los Angeles Clippers will share the new Staples Center with the Lakers and Kings, making the downtown facility the first to host three professional sports teams.
The Clippers Friday agreed to a six-year lease to play in the $300 million Staples Center in downtown Los Angeles when it opens in the fall of 1999.
The Clippers' NBA brethren, the Lakers, and the NHL Kings previously announced plans to play in the Staples Center and leave the Great Western Forum, where they have played since 1967.
In addition, The Fox Group, which spent $311 million to buy the baseball Dodgers, announced it has entered into a partnership with the L.A. Arena Company that grants Fox a minority interest in the Staples Center development. The L.A. Arena Company operates the Staples Center and is co-owned by the Anschutz Corporation and Edward P. Roski Jr., who also own the Kings.
The agreement calls for the Fox Group and the L.A. Arena Company to be partners in a proposed entertainment complex to be built at a later date near the arena.
The partnership gives Fox and option to acquire a minority share in the Kings, subject to approval of the NHL. In addition, Fox signed a letter of intent to participate, along with Philip F. Anschutz, in the acquisition of a minority stake in the Lakers, subject to NBA approval.
"Although it will take the most creating scheduling ever, the extraordinary and technically advanced features of our building will give us the ability to provide this unique gift to Los Angeles sports fans," said L.A. Arena executive vice
president Timothy L. Leiweke. "We had many discussions with regards to scheduling with both the NBA and NHL, and they are quite comfortable with our plan for Staples Center to simultaneously host the three teams."
The Clippers previously turned down a deal to move all of their home games to the Arrowhead Pond in Anaheim, where they will have played eight home games this season. The Clippers play the rest of their games at the antiquated Los Angeles Sports Arena, the oldest current facility in the NBA.
Details of the partnership were not disclosed, but the Los Angeles Times reported that the Fox Group will acquire a 40 percent stake in the new arena, which would be a victory for Fox in its ongoing corporate battle with the Walt Disney Company, which owns the Arrowhead Pond.
Friday's decision puts one of the more successful franchises in NBA history, the Lakers, in the same building with one of the worst in the Clippers. The Clippers have made the NBA playoffs just three times since moving to Los Angeles in 1984.
"The unique partnership formed here Friday is sure to produce a world-class environment for our fans and our entire organization and will provide a solid foundation for improving our franchise," said Clippers executive vice president Andy Roeser.
The agreement also calls for the formation of a Board of Directors to oversee all aspects of the L.A. Arena Company. Board members will include several Fox executives.
The Staples Center is being built with private financing and will seat 20,000 people for basketball and 19,000 for hockey. It will include 160 luxury suites, two restaurants and private clubs.
March 8, 1999 (AP) - A fire devoured stacks of roofing insulation atop the unfinished Staples Cente in Los Angeles, but damage was considered minor and there should be no delays in the scheduled October opening of the new home for basketball's Lakers and Clippers and hockey's Kings. The blaze was attributed to an electrical problem.
STAPLES ARENA READY FOR DEBUT
October 14, 1999
Copyright 1999 MediaVentures
The $375 million Staples Center in Los Angeles is ready for a Hollywood-style premiere Sunday with a concert by Bruce Springsteen. The venue was constructed in a
record 18 months and is already setting records. The venue set a new record for naming rights in a $100 million deal with office-supplier Staples and it is the only venue to
host two NBA teams and one NHL team. The NHL Kings will call the arena home while the Lakers and Clippers of the NBA will work the venue's new boards. The venue has
also landed the 2000 Democratic National Convention and the Emmy Awards telecast. The Arena Football League's Avengers will debut in the venue next year.
The 900,000 square foot building seats 20,000 for basketball and 19,000 for hockey. It has 22 concession stands over 5 concourses, an eight_sided video scoreboard
and a 20,000 square foot plaza entrance with a large, digital screen to greet visitors.
Suites are arranged in three levels in the center of the bowl. A private restaurant, the Premier Club, will be available to members only. The club will only take 200 members
and they pay $10,500 annually for the privilege. The club will also have access to a private wine cellar and humidors. Another upscale restaurant, The Arena Club, will seat 500
and will feature menus and prices to match the city's top restaurants. Food will be prepared by a renowned chef. Only suite holders and club seat holders will be allowed to
A separate sports bar and restaurant will be open to the public. Levy Restaurants, the suite concessionaire, plans themed menus, grilled specialties along with Asian and
Italian offerings in its service to club seat and suite customers. The 160 suites lease for $197,500 to $307,500.
For 2,500 club seaters, in_seat service will be available. The center was designed by NBBJ Sports and Entertainment. The building will also have retail and team office
The spoils aren't only for the affluent. Pacific Bell is sponsoring a service that will have an attendant bring a wireless phone to your seat if a call comes in for you. The
caller must only know your seat number.
The venue was built by Kings owners Edward Roski Jr. and Philip Anschutz. Rupert Murdoch's Fox broadcasting group has purchased a 40% stake in the building along
with an option to buy a 40% share of the NHL Kings. The company will also join the L.A. Arena Company in a proposed entertainment district to be built on a 28_acre site
around the new venue. Anschutz and Fox also have signed a letter of intent to buy a 25% interest in the NBA Lakers owned by Jerry Buss.
Construction and operations were overseen by Tim Leiweke, president of the arena, Kings and MLS Galaxy. Leiweke also helped launch the Pepsi Center project in
Denver and the Target Center in Minneapolis.
The arena comes after Roski and Anschutz guaranteed not only their part of the bargain, but that repayment of the city's municipal bonds won't come out of property or
sales taxes. They will also pay for use of the land. Both the Kings and the Lakers signed 25_year leases for the arena. The Clippers have a six year lease. The city is investing
a total of $70 million.
The center is expected to draw more than 3 million visitors a year and host more than 230 events a year. Developers also hope to attract all_star games, tournaments,
concerts and award presentations.
Even officials at Arrowhead Pond in Orange County aren't sad to see the arena open. Officials there say there's plenty of business for two arenas and that Los Angeles
and Orange County are really two separate markets. They point out that the in-demand Ricky Martin is playing both the Pond and the Staples Center in November and Bette
Midler is doing the same in December. On New Years Eve, the Staples Center will feature the Eagles while at the Pond, it's Disney on Ice. Overall the Pond expects to host
200 events a year.
THE ULTIMATE SPORTS ROAD TRIP
By: Andrew Kulyk & Peter Farrell
January 17, 2000
|Staples Center Ranking by USRT|
|Fan Support|| 7|
|Concourses/Fan Comfort|| 6|
|Total Score|| 55.5|
January 18, 2000
December 2, 2007
December 6, 2007 - The Staples Center - our experience here evokes some of our best.. and worst stories, as we shall explain. This facility was built at a cost of over $400 million, and no expense was spared into making this arena a place with zest and pizzazz, a typical showcase for the world's entertainment capital. The arena is built in the downtown core, and with it comes hope for a rebirth of the area by designating a 30 acre "entertainment zone", anchored by the Staples Center and the adjacent convention center.
We arrived via the light rail line, which deposited us about a block away, and we found surface lots around the arena in abundance. Some of the adjoining neighborhood looked pretty seedy, but the potential is there, and once you arrive at the building itself, you are overwhelmed at its sheer size and imposing architecture. Step inside, and you are immersed in a sweeping lobby with glass rising to the ceiling and gigantic video boards, sculptures, plants and glass lined escalators to take you upstairs.
Bright, roomy, and high tech advertising boards, impressively designed kiosks, concession stands and vending carts everywhere. The Team LA merchandise store and the FOX sports cafe are off the main concourse. The upper concourses have outdoor balconies, where fans can step up to an outdoor bar, order a drink and enjoy the warm California weather.
Pretty big and imposing, the levels are broken down into 100 level, 200 level with Premier Seating, THREE levels of suites, and then the 300 level way way up high. In the end zone above the 200 level is a restaurant for Premier Seat holders with a view of the playing surface. An 8 sided scoreboard hangs in the center, and among the many ad panels and message boards are three out of town scrolling scores - one for NHL, one for NBA, and the third for NCAA. Pretty cool!
Great selection at boxcar prices, but somebody has to pay for all this! Best of show here is the mexican stand - with the fajitas and the nachos grande.
The Los Angeles Lakers have had the greatest success here, with their six NBA championships. Their retired numbers include the names Chamberlain, Jabbar, West, Baylor, Johnson, Goodrich and Worthy. The Kings have hung the names of Rogie Vachon and Marcel Dionne. The Clippers???? movin on..
Now the Bad News
We walk in the building for the Lakers game, and start snapping photos. Immediately we are confronted by a security guard (skinny kid, about 19 years old, 120 lbs impeccably dressed) who insists that we turn over our camera. When we balked, he "escorted" us to guest relations, leading Andrew by the arm until Andrew told him that he was perfectly able bodied and did not require assistance. We were forced to surrender the camera, even though we identified ourselves as visitors, told them about our project and pleaded with them to take even one inside photo. Nothing doing. It doesn't end there... ushers, vendors, security people and concession workers all had this mean and surly attitude about them. Maybe it's a SOCAL thing, but we were treated very shabbily. And no, there is no inside photo on this profile, because we had no camera.
Amazing building, lots to see and do, and we are hoping that our Clippers experience in 2001 will make up for the rough time we had with the Lakers and the Kings. We will sneak in the camera, and post an update, hopefully with a lot of cool pics!
September 3, 2009
Copyright 2009 MediaVentures
Eight luxury suites on the top level of the Staples Center in Los Angeles will be converted to a
new Hyde Lounge, a spinoff of the nightclub with the same name that operates a few miles from
the arena. The goal is to sell memberships to the club.
STAPLES SIGNS LIFETIME DEAL FOR LA VENUE
October 22, 2009
Copyright 2009 MediaVentures
Los Angeles, Calif. - Staples Inc. has converted its 20-year naming rights deal for the
downtown Los Angeles arena into a lifetime agreement. Terms of the deal with venue owner AEG
were not announced.
The deal is the first lifetime naming rights deal for a major-market arena. The original Staples
Center deal was also the first to reach $100 million.
Staples has owned the naming rights to STAPLES Center since the arena`s opening
in October 1999 as part of the company`s original agreement with AEG. The 10th year of this
agreement included an option for a naming rights extension.
"Staples has been a great partner since day one," said Timothy J. Leiweke, president & CEO of
AEG and STAPLES Center. "They had the vision to enter into a
groundbreaking agreement 10 years ago, which has certainly paid off with a partnership to create
an association with the most widely recognized venue in the world. This lifetime deal, with a
leading global brand, will continue to be heralded as a great investment and one that will help
secure the future of STAPLES Center as a world-class sports and entertainment destination."
With annual attendance of more than four million people and about 250 events annually, the
Staples Center is the host of many high-profile events of national and
international distinction. These include the 2000 Democratic National Convention, the 2002 NHL
All-Star game, the 2004 NBA All-Star Game, 2009 ISU World Figure Skating Championships, nine
GRAMMY Awards shows, the ESPN X Games, the WTA Tour Championships, and is home to the
NCAA Men`s Pacific Life Pac 10 Basketball Championships. Most recently, the arena received
global attention for the Michael Jackson memorial service which was watched by over 2 billion
SUITES 100 PERCENT LEASED AT STAPES CENTER
February 18, 2010
Copyright 2010 MediaVentures
Los Angeles, Calif. - Officials at the Staples Center say all 150 luxury suites at the building are now leased. The suites were not fully leased last year.
The price of VIP entertainment is not cheap - boxes that hold as many as 14 people cost between $250,000 and $475,000 a year, depending on their location in the downtown Los Angeles arena. For that, owners get about 2,500 tickets a year to every public event held at Staples. Those include Los Angeles Lakers, Clippers and Sparks basketball games and Los Angeles Kings hockey games, along with concerts, lectures, the X games and the occasional wrestling match.
The boxes didn't sell out in 2009, AEG spokesman Michael Roth said, but they did for 2010. A few of the boxes are held by individuals, but most are rented by companies that use them to entertain clients.
AEG TO HELP PAY COST OF JACKSON EVENT
June 24, 2010
Copyright 2010 MediaVentures
Los Angeles, Calif. - A $1.3 million donation from Anschutz Entertainment Group and the
estate of Michael Jackson is expected to cover most of the costs of an event staged near the Staples Center last year after the singer's death.
City officials have sought pledges of donations since there is no clear-cut legal requirement that private companies chip in for police overtime and other costs associated with large-scale civic happenings. Other cities have also grappled with the dilemma of how to finance services for spectacles that draw large crowds.
The AEG donation - $1 million for the city's general fund and an additional $300,000 for crime-fighting equipment - is meant to cover police services, trash pickup, traffic control and other costs stemming from the late pop icon's star-studded tribute last July 7 at a packed Staples Center. An overflow crowd watched on screens at the Nokia Theatre across the street.
Some public estimates of the city tab for the tribute have topped $6 million; one report to the City Council put the cost at $3.2 million. A city study last year also found the event may have brought in some $4 million in additional revenues for hotels, restaurants, taxis and other businesses. But Miguel Santana, the city administrative officer, said the additional cost to the city was about $2 million, mostly in overtime payments for police, sanitation workers and traffic control officers. The donation of $1.3 million will cover the bulk of those costs, he said.
The announcement followed an earlier statement from the Los Angeles Lakers that they would pay the costs of a public celebration of the team's NBA championship victory.
AEG LAUNCHES ENERGY REDUCTION PLAN
November 18, 2010
Copyright 2010 MediaVentures
Los Angeles, Calif. - AEG has launched AEG 1EARTH, a program designed to reduce and
track the energy used by the properties it owns and manages, the company said.
The goal of reducing and greenhouse gas emissions, solid waste and water usage by at least 20 percent was developed in partnership with Ecologix by Xanterra and verified by FCI Management
Consultants. The goal is targeted for completion by 2010. The goals include:
* 20 percent reduction in greenhouse gas emissions (CO2 intensity).
* 15 percent of all electricity usage derived from renewable energy sources.
* 25 percent of all solid waste diverted from landfill.
* 20 percent reduction in water use intensity.
The AEG report contains metrics, collected from 20 facilities from within AEG's global network of venues, including STAPLES Center, Nokia Theatre L.A. LIVE, The Home Depot Center and Ontario's Citizens Business Bank Arena.
NBA LOCKOUT EXPECTED TO HAVE MAJOR IMPACT ON STAPLES CENTER
September 29, 2011
Copyright 2011 MediaVentures
Los Angeles, Calif. - If the NBA season is cancelled, one of the arenas to be most affected will
be the Staples Center, the Los Angeles Times reported.
"It's going to devastate these workers," said Mike Garcia, president of the SEIU-United Service
Workers West union, with nearly 1,000 members working at the three NBA arenas in California: Staples Center, Oracle Arena in Oakland and Power Balance Pavilion in Sacramento. "They have become very dependent on these jobs," he told the Times. The workers include janitors, ushers and ticket-takers who earn about $11 an hour on average.
An additional 700 food-service workers at Staples Center would be idled if Lakers and Clippers games were scrapped, Tom Walsh, president of Hotel Employees and Restaurant Employees Local 11, the workers' union told the newspaper.
A canceled NBA season also would be a huge financial hit to the food-service companies that employ them, such as Levy Restaurants, which operates in 17 NBA arenas, including the three in California. Levy declined to comment to the Times.
With players locked out by team owners amid the contract dispute, the NBA already has delayed the start of training camps and canceled 43 preseason games through Oct. 15.
The 18,997-seat Staples Center is owned and managed by billionaire Philip Anschutz's Anschutz Entertainment Group, and Anschutz owns 30 percent of the Lakers. NBA owners are prohibited from speaking publicly about the labor dispute while the contract talks continue. AEG spokesman Michael Roth had no comment for the Times.
If the NBA cancels games this fall in dribs and drabs it will create a financial headache for many arenas. Only a limited number of entertainers, such as Lady Gaga, Taylor Swift and U2, can sell out NBA-sized arenas, and those shows are booked months in advance and can't be signed by arenas on short notice, the Times said.
"There's really no way it could be made up," said Mark Kaufman, executive director of the Oakland Alameda County Coliseum Authority, a city-county entity that owns Oracle Arena, where the Golden State Warriors play.
The financial impact of canceled games on the 30 NBA teams and the arenas would vary widely because of vastly different lease agreements.
For example, the Lakers don't pay rent at Staples Center, but pay an undisclosed percentage of their games' ticket sales to the arena, according to one source familiar with the arrangement who was not authorized to comment publicly to the Times.
However, both the Warriors and Phoenix Suns will owe their full rent to their government-owned arenas if the season is canceled.
The Warriors' rent obligation is $1.5 million a year (about $36,500 for each regular-season game), Kaufman said. If the entire NBA season were lost, the team would also be on the hook eventually for nearly $6 million that normally would be paid to the county authority by the Warriors mainly from premium-seating revenue and concessions at Oracle Arena, he said.
In the meantime, "my biggest fear is we're going to lose so many season-ticket holders" who would not renew if this season is lost "and never get them back," Kaufman said.
Phoenix gets roughly $1.6 million a year from the Suns for playing at the city-owned US Airways Center.
"We're not very heavily exposed" financially if there are no Suns games this season, because of the terms of the lease deal, Jeff DeWitt, finance director for the city of Phoenix told the newspaper.
Phoenix gets a fixed lease payment of about $850,000 from the Suns, and a 10 percent portion of the team's net revenue that has been totaling about $750,000 a year, DeWitt said.
The $850,000 must be paid by the Suns regardless of the labor dispute, but the city's $750,000-or-so share of the team's revenue could be lost if there are no games, he said.
Plus, "the economy will take a hit, particularly downtown, from not having 41 NBA games because those sell very well in Phoenix," DeWitt said.
The NBA labor dispute already is being felt by some venues that host preseason games.
Citizens Business Bank Arena in Ontario, a 9,600-seat facility owned by the city, was scheduled to host an Oct. 12 exhibition between the Lakers and Atlanta Hawks that was expected to be sold out, but that game was canceled.
The Lakers do not owe the arena a cancellation fee or other compensation, Ontario arena General Manager Steve Eckerson told the Times, adding that the arena booked the game knowing a lockout was a possibility.
"This is just a flat-out loss" and the "total impact is over $1 million to the arena, to the city and to local businesses" such as restaurants that would have benefited from the game, he said.
FITCH ISSUES ADVISORY ON ARENA BONDS
October 13, 2011
Copyright 2011 MediaVentures
New York - Bonds issued to help build the Staples Center in Los Angeles, the Pepsi Center in
Denver and offerings from the NBA have been placed on Fitch Ratings' Rating Watch Negative list because of the possible loss of the upcoming season, the company reported. The move is advisory and does not reduce the bonds' existing rating.
"Fitch Ratings has placed the 'BBB+' rating on the NBA's $957 million league-wide revolving facility borrowings (privately placed through its affiliate Basketball Funding, LLC) and the 'BBB+' rating on the NBA's $1.34 billion senior notes (various issues due through 2020; privately placed through its affiliate Hardwood Funding, LLC) on Rating Watch Negative.
"Additionally, Fitch is also placing the 'BBB+' rating on the L.A. Arena Funding LLC's (Staples Center) $234 million arena-revenue backed bonds and the 'BBB-' rating on the Denver Arena Trust's (Pepsi Center) $46.7 million revenue-backed bonds on Rating Watch Negative. Fitch has also placed private ratings on approximately $500 million of arena revenue-backed bonds with an NBA anchor tenant on Rating Watch Negative," the company said.
The company said there are a number of potential outcomes that could lead to further action.
"If a new agreement cannot be met, Fitch will closely monitor future negotiating sessions to determine additional rating actions," it said in a statement.
"While Fitch notes that sports industry labor agreements have historically been agreed upon in the final hours of negotiations while avoiding a delay in the season or missed games, it is Fitch's opinion that recent negotiations have lacked momentum to reach an equitable agreement in the near term in order to start the regular season on time."
The company said all the firms involved have sufficient reserves to meet at least one year's worth of debt payments.
"Fitch will monitor ongoing operations of each individual arena rating on case-by-case basis to determine potential impacts on the rating. The spectrum of potential rating actions will vary depending on financial flexibility and performance to the extent there is a significant reduction in regular season games," the company said.