Warriors make $2bn from arena still being built



Linkedin Twitter

Golden State Warriors Chase Center update - April 2019 Image: Golden State Warriors

The Golden State Warriors’ new arena is already setting revenue records, even though the doors haven’t opened yet, according to media reports.

The National Basketball Association (NBA) champions have taken in an unprecedented $2 billion in the form of tickets, suites and sponsorships, more than double the franchise’s estimate for the privately financed Chase Center in San Francisco, according to team President Rick Welts, Bloomberg news agency reported.

“The perfect market, perfect time – the Bay Area is on fire,” Welts was quoted as saying on the Bloomberg Business of Sports podcast. “Couldn’t be a better economic time. Couldn’t be a better basketball team.”

The Warriors have become an example of how to build a new arena with private money, rather than the government subsidies demanded by many pro teams. But it hasn’t gone entirely smoothly. According to Welts, the project will cost around $1.3 billion, which is 30 percent over budget.

Welts jokes that he’s hatched a plan for whenever the team’s majority owner, Joe Lacob, expresses concern about cost overruns.

“We tell Joe, ‘Just go back and look at those championship rings in your office and you’ll feel much better about the whole thing’,” he said.

The 18,064-seat arena is scheduled to open September 6 with a concert featuring Bay Area band Metallica and the San Francisco Symphony. The Warriors’ first preseason game is slated for October 5 against LeBron James and the Los Angeles Lakers.

Besides JPMorgan Chase & Co., which will put its name on the arena, other sponsors include United Airlines, PepsiCo, Accenture and Google Cloud, which, according to Welts, hadn’t previously made a sports deal.

The arena is the centerpiece of an 11-acre mixed-use development in the Mission Bay neighborhood. It’ll include two office buildings and 29 retail locations.

A Lacob-led group bought the team in 2010 for about $450 million. The Warriors are now worth $3.5 billion, third in the league behind the New York Knicks and Los Angeles Lakers, according to Forbes.

Welts credited much of the franchise’s success on and off the court to Curry, who is among the most popular athletes in the world. Curry is paid about $37 million this season. Asked if he was worth 2X or 3X that amount, Welts said: “He’s the heart, soul, identity of our franchise. Whatever the biggest X is, he would be the biggest X.”

Continue to follow Coliseum for latest updates on venues business news. Coliseum is dedicated towards building the best global community of sports and entertainment venue executives and professionals creating better and more profitable venues.

Coliseum facilitates a dialogue between stadiums, arenas, clubs, leagues and experts and enables them to learn from each other while establishing relationships. Coliseum’s digital 365Coliseum Business Center is a vast pool of resource for the stadium and arena industry world-wide.




« Previous News:
» Next News:



More News

Sacramento Kings and block chain technology

Sacramento Kings’ bid to boost bonhomie with fans

Published: October 21, 2019

The American professional basketball team Sacramento Kings is all set to launch the league’s...
» Read more

Everton FC update October 2019

Huge response to Everton’s consultation on new facility

Published: October 21, 2019

Everton Football Club – the English professional football club based in Walton, Liverpool – has...
» Read more

London Stadium new stands

Straight sections to come up at West Ham club

Published: October 21, 2019

West Ham United football club had claimed way back in February that it is all set to give an...
» Read more

Silverstone Racetrack

MATCH Hospitality promises (match) less services

Published: October 21, 2019

MATCH Hospitality – the company whose forte is management and sales of commercial hospitality...
» Read more


Newsletter sign-up