Building a new NBA arena is hard — even if the team’s owner has Steve Ballmer’s money. Or did Steve Ballmer. It took him a decade to do it – the Clippers’ new Intuit Dome arena just opened and will host the team next month – and Ballmer had to find a cooperative local city government (Inglewood), get some friendly legislation, buy a competing building. then promise not to demolish the current concert hall (the Forum, former home of the Lakers), and then build the building according to a tight schedule.
The Philadelphia 76ers want to move out of the Wells Fargo Arena in Philadelphia when their lease ends in 2031 and the clock is ticking. last week, the City of Philadelphia published a series of reports – which are a required part of development – detailing predictions about how a proposed arena in Downtown, a block from Chinatown, will impact parking, traffic, neighborhoods and more. Those reports contain concerns about parking and traffic if the public transport targets for people going to the site are not met. There is also an organized residential group in Chinatown that opposes the development.
This week, the 76ers gained leverage in their efforts to get the building approved from an unexpected source: Camden, New Jersey — a city just across the Delaware River from Philadelphia. New Jersey Governor Phil Murphy sent a letter to the 76ers — not so coincidentally a letter made public — offering up to $400 million in tax breaks and saying a new arena could be part of a mixed-use waterfront development in Camden, just across the river. from Philly.
76ers ownership knows leverage when they see it. Here’s what team spokeswoman Molly Mita McEndy said in an email to Associated Press:
“The reality is that we are running out of time to reach an agreement that will allow the 76ers to open our new home in time for the 2031-32 NBA season. As a result, we must take all possible options seriously, including this one.”
Pennsylvania Gov. Josh Shapiro said he hasn’t been asked for tax incentives for the 76ers’ new building, nor has he offered any, but he loves the team in Philadelphia itself.
This process is not uncommon for any major urban development (take it from someone who, early in his journalistic career, covered these issues). Everyone wants their pound of flesh – the cities, developers/builders, neighborhood organizations, lawyers and anyone else who can hook up to make a few bucks. There’s a push and pull with city agencies and (in this case) the 76ers, all trying to get the best outcome for themselves.
No doubt New Jersey’s offer is legitimate, but for the 76ers, it’s leverage — if they have options and can walk away from the negotiating table, they can get more of what they want in the Downtown development. Expect a very public local push and pull before a decision is made on the proposed new arena, but that decision should come relatively soon. The clock is ticking.
