Paycom Center (formerly Chesapeake Arena)

[kevin lee]

I will never understand for the life of me understand why the city felt the need to bend over and pay for Billionaire's improvements to their Arena. It is nuts. Do they think that these owners would have sold or moved their team to a different city?

Well, that's exactly the recipe and exactly how we got the team in the first place.

[Southsider2]

The argument for billionaire owners paying for arena renovations holds essentially no weight in small markets due to lack of leverage. I agree with Kevin it's exactly how we got the team and that was in Seattle with much more wealth/leverage to go around. In this case, the improvements touch essentially every part of the arena that is used for multiple purposes outside of basketball, it's a no-brainer to me. Obviously, there will always be other needs in the community but that's the beauty of MAPS having numerous projects.

[Laramie]

The Chesapeake Energy Arena is owned by our city with the Thunder as anchor tenant.

When we agreed to the relocation of the Seattle Supersonics franchise owned by Oklahoma businessmen, The Professional Basketball Club, LLC, an arena and a practice facility (both owned by the city) were apart of the total package agreed to in the relocation agreement.

In anticipation of the team’s arrival, Oklahoma City voters last month approved a $121 million sales-tax package to renovate the city’s Ford Center arena and build an NBA practice facility.--Seattle Times, April 18, 2008.

https://www.seattletimes.com/sports/...oklahoma-city/

If we want to continue to support an NBA franchise in our city, we need to maintain a viable NBA arena. If not, Tulsa would gladly welcome the NBA to the BOK Center in Tulsa.

[Southsider2]

Austin and Kansas City are hungry for more pro sports too^^

[Dob Hooligan]

I kinda feel bad because I suggested last week that Thunder ownership be good city fathers and volunteer to pay for their improvements up front. It was reported that they wanted to be first in line for MAPS money, and I am of the opinion that a win-win would be the Thunder paying for the improvements now, with the understanding they will get their money at the end of the 8 year MAPS tax extension. The clear advantage for the Thunder is that they will get increased revenue (and profit) from the Chesapeake upgrades the moment they are completed.

Let's say the MAPS revenue dedicated to the arena is 2 years out of 8. And the Thunder pay and build now, with the understanding they get repaid in years 7 and 8. Then it looks to me that they will get enhanced revenue (and profit) in years 3-4-5-6. Looks to me that the simple explanation would be that the interest rate paid on the expansion cost by the Thunder would be about 6% a year, and the increased profit would be larger than that dollar amount.

As we get into the weeds, it might be suggested that the borrowed amount might constrict the Thunder's overall borrowing ability (debt ratio). I don't think that is the case, and I think that there are tax deductions and/or credits that will offset the costs.

A win-win. It allows great things to be done for OKC on the social services area now that might have to wait on the Thunder otherwise. That is the act of good city fathers.

[OKCPetro83]

I kinda feel bad because I suggested last week that Thunder ownership be good city fathers and volunteer to pay for their improvements up front. It was reported that they wanted to be first in line for MAPS money, and I am of the opinion that a win-win would be the Thunder paying for the improvements now, with the understanding they will get their money at the end of the 8 year MAPS tax extension. The clear advantage for the Thunder is that they will get increased revenue (and profit) from the Chesapeake upgrades the moment they are completed.

Let's say the MAPS revenue dedicated to the arena is 2 years out of 8. And the Thunder pay and build now, with the understanding they get repaid in years 7 and 8. Then it looks to me that they will get enhanced revenue (and profit) in years 3-4-5-6. Looks to me that the simple explanation would be that the interest rate paid on the expansion cost by the Thunder would be about 6% a year, and the increased profit would be larger than that dollar amount.

As we get into the weeds, it might be suggested that the borrowed amount might constrict the Thunder's overall borrowing ability (debt ratio). I don't think that is the case, and I think that there are tax deductions and/or credits that will offset the costs.

A win-win. It allows great things to be done for OKC on the social services area now that might have to wait on the Thunder otherwise. That is the act of good city fathers.

Are they paying market rates for improvements of that? The answer is likely no and no.

[Laramie]

The Peake is the city's main arena; economic Impact of no fans at Thunder games https://www.newson6.com/story/5fdab5...thunder-games-

[theanvil]

Are they paying market rates for improvements of that? The answer is likely no and no.

Nor should they. For every home game, the Thunder generates millions in economic impact for the city. Add to the fact the way they have catapulted OKC's national and local perception, they should receive a generous deal. It's smart business, and I can only imagine that the deal is structured similar to any other NBA teams in other cities.

[onthestrip]

Does anyone have any idea what the Thunder pays in rent for CHK Arena? And does it go up if we pour in millions for improvements that mostly are for their benefit.

Dont forget that we dont charge sales taxes on their tickets and Thunder recieved Quality Jobs Act money too.

[Laramie]

Rent

The Thunder pay$1,640,000 in annual Arena Rent ($40,000 per game) for forty-one (41) regular season NBA home games. Additional Rent of $40,000 is to be paid for each preseason and postseason home game. Rent is subject to periodic CPI adjustments, capped at 3% annually. The Thunder also pay an annual Practice Facility Rent of $100,000.

Have no idea if the rent/lease agreement goes up; that will be decided in the next renewal agreement.

Link: https://law.marquette.edu/assets/spo...ty-thunder.pdf

[Laramie]

MAPS 4 proposal for Chesapeake would prolong life of arena, backers say

An estimated $115 million would go toward Chesapeake and the Thunder’s practice facility in northwest Oklahoma City. If sales tax revenue meets projections, the arena would receive about $104 million, with the rest going to the practice facility.

• An expansion of the 300 seating level, known as Loud City, to give the upper deck fans
some of the same amenities as those below, mostly more space to congregate and some
sit-down dining options. More restrooms and elevators are part of the plan.

• An outdoor patio on the second level.

• Replacing all the original seats on every level.

• Installing a new scoreboard with a 34-foot by 19-foot video board. The video board
in place is 20 feet by 10 feet. Video monitors would be placed above seating tunnels.

A better Loud City https://stories.usatodaynetwork.com/...life-of-arena/

[Paule4ou]

Wish they'd paint the roof or spruce it up a bit. It always looked terrible on the aerial shots during NBA telecasts (especially when we used to be televised nationally).

[OklahomaNick]

When is Chesapeake's contract with the arena naming rights up?
I believe they signed a 12 year deal back in 2010?

Surely it will be something else soon.

[Laramie]

The naming rights deal is currently scheduled to expire after the 2022-23 season.

Tom & Judy Love owners of Love's Travel Stops & Country Stores will be in a position to bid on the new naming rights. They paid $10 million for the small yellow NBA patch; so they may have what it takes for arena naming rights--stay tuned.

[Anonymous.]

There is nothing small about that heinous Loves patch.

[jn1780]

Hope everyone likes yellow, if Loves ends up buying the naming rights.

[citywokchinesefood]

Hope everyone likes yellow, if Loves ends up buying the naming rights.

They are going to have to compete with Velveeta. I have on good authority they intend to purchase the naming rights and call it the Liquid Gold Thunderdome.

[Laramie]

They are going to have to compete with Velveeta. I have on good authority they intend to purchase the naming rights and call it the Liquid Gold Thunderdome.

Wow!

That sounds like when Louisville built their new arena (KFC Yum Center) and KFC first submitted 'naming rights' to call it The KFC Bucket...

[Dob Hooligan]

Wow!

That sounds like when Louisville built their new arena (KFC Yum Center) and KFC first submitted 'naming rights' to call it The KFC Bucket...

I think it is quite clear that the source of your story is flawed....please note that it is Yum! Brands. And the name Yum! must have the exclamation point...!... The Yum! Brands lineup today is Taco Bell, Pizza Hut, KFC and WingStreet, plus a couple other small concepts.

Now, to get to the naming of Chesapeake Energy Arena; I'm guessing that Love's gets their money's worth through the uniform logo, and the better arena sponsor is Paycom.

[Laramie]

Flawed or whatever, I definitely remember the proposal at the time. Posters were laughing and making jokes about an arena that resembled a big ole greasy bucket of fried chicken--with red & white strips.

However, I like your Paycom idea and hopes it comes to fruition.

Paycom Palace . . . on the Prairie

My money is on Tom & Judy Love presenting the winning bid on naming rights.
.

[citywokchinesefood]

Flawed or whatever, I definitely remember the proposal at the time. Posters were laughing and making jokes about an arena that resembled a big ole greasy bucket of fried chicken--with red & white strips.

However, I like your Paycom idea and hopes it comes to fruition.

Paycom Palace . . . on the Prairie

My money is on Tom & Judy Love presenting the winning bid on naming rights.
.

Paycom Palace is something a Boomer would come up with, its just not hip. Kids these days want names that have some meme potential. The bigger the meme the better the name for the arena. You wont see Paycom palace trend on twitter, but Liquid Gold Thunderdome already has in connection to the naming rights coming up with Velveetas official twitter account tweeting at players and fans. Give the people what they want and you will instantly making that Arena more iconic.

[OkieBerto]

[Anonymous.]

Paycom Palace is something a Boomer would come up with, its just not hip. Kids these days want names that have some meme potential. The bigger the meme the better the name for the arena. You wont see Paycom palace trend on twitter, but Liquid Gold Thunderdome already has in connection to the naming rights coming up with Velveetas official twitter account tweeting at players and fans. Give the people what they want and you will instantly making that Arena more iconic.

This is pretty good point. Meme culture is the move. I do like the Velveeta thing, just because of how hilarious it is. But I do wonder, is there any connection whatsoever with Kraft Foods and OKC/OK?

[Laramie]

Great pic, OkieBerto

There are a lot of Oklahoma casinos who participate in Thunder sponsorships and ads who might be interested in the bidding process. Let's not rule out WinStar World Casino or many of the local casinos in our area.

[dankrutka]

lmao.