Venue Detail
Orlando Magic
Revenues From Sports Venues Pro Facilities Report
February, 2012
Orlando Magic
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8701 Maitland Summit Blvd Orlando, FL 32810 Phone: 407-916-2400 Fax: 407-916-2987 URL: www.orlandomagic.com Owner: Rich DeVos League: National Basketball Association, Eastern Conference, Southeast
Venue
Amway Center, 400 W Church St, Orlando, FL 32801 Owner: City of Orlando Managed by: Owner Built: 2010 Capacity: 18,600 Concessionaire: The Levy Restaurants Suite caterer: The Levy Restaurants Soft drink: Pepsi Cola Beer: Anheuser-Busch InBev
Naming rights
Sold to: Amway Global Price: $40,000,000 Term: 10 years Expires: 2019
Ticket prices
Season tickets range from $450 to $4,455 Single tickets range from $40.00 to $295.00
Attendance
2009 average attendance: 17,900 2010 average attendance: 17,461 2011 average attendance: 18,972
Suites
Quantity: 60 Term: 3 to 10 years Price: $135,000 to $295,000 Seats: 16 to 16
Club seats
Quantity: 1,400 Term: 1 to 3 years Price: $4,725 to $5,400
Financing
The arena along with an upgrade of the Citrus Bowl and a new performing arts center are funded by a complex mix of more than a half-dozen sources, but the biggest chunk would come from the tourist tax levied on hotel rooms.
City and county officials are counting on continued growth to pay for venues. But the tax is tied to the health of Central Florida's tourism industry; if vacation visits decline, so do tax proceeds. While construction began on the arena before the 2009 recession began, the work on the Citrus Bowl and a performing arts center was delayed.
The arena’s cost was pegged at $480 million.
In addition to a last-minute public gymnasium agreement, the team pledged $50 million plus interest upfront, lease payments with a present value of $12 million, plus other revenue, bond and insurance guarantee provisions. The team also promised to cover cost overruns.
Magic owner Rich DeVos also promised to contribute $10 million to help build the performing-arts center.
Orange County joined Orlando in approving a $1.1 billion plan to build a new arena for the Magic, make upgrades to the Citrus Bowl and create a new performing arts center. Work began on the arena, but the two other projects were put on hold until economic conditions improve.
The agreement will pay for the new venues from a mix of tourist taxes, downtown property taxes, private contributions and other sources.
The deal brings a new home court and a 25-year lease for the Magic, an arts center with three state-of-the-art performance halls and an extensive renovation for the aging Citrus Bowl stadium.
The $480 million arena is more than twice the size of the former arena, with about 750,000 square feet, and will hold more than three times the number of luxury suites. The old Amway Arena will be sold and could be torn down.
The Magic’s new arena has 66 loge boxes. The four-seat units sell for $40,000 annually and six-seaters for $60,000.
It features the Mercedes Benz Star Lounge, a club is restricted to about 1,000 premium seat holders paying per-game ticket prices of $275 for Superstar Seats to $1,350 for Courtside Seats. Inside the lounge, they receive an all-inclusive buffet meal operated by Levy Restaurants, the arena's food provider. Beer, wine and soda are part of the meal package, but hard liquor is a separate cost.
Under its deal with the city, the team will pay $1 million a year in rent for the first 25 years, then move to $2 million a year with an annual increase equal to the previous year’s Consumer Price Index.
The team will get all revenue from NBA events while the city gets all revenue from other events.
The Magic will guarantee $750,000 a year from naming rights plus $1 million from luxury suite revenue, increasing by three percent annually. (Basketball, Facilities, Financial, NBANBA, Professional Sports)