Why Oklahoma City Funded The Thunder’s New $900 Million Arena

Oklahoma City's Sports-Driven Growth: A Conversation with Mayor David Holt

Key Concepts:

• NBA Finals impact on Oklahoma City
• Public vs. private financing of sports arenas
• Economic and community benefits of sports investments
• Leveraging sports for city development
• Oklahoma City's unique sports landscape

Basketball Town: Oklahoma City's Embrace of the NBA

Oklahoma City has fully embraced basketball, becoming a "basketball town" after 17 seasons with the Thunder (and 19 including the Hornets). The city's identity is now intertwined with the team, especially during the NBA Finals run. The Finals have created an all-encompassing energy, with the city viewing its journey through the prism of this moment.

Economic Impact of the NBA Finals

The NBA Finals generate economic activity through additional games and increased downtown activity. More importantly, it provides a platform for Oklahoma City on the national and global stage. Hundreds of media members from around the world attended games in OKC, leading to interviews with outlets in Italy, Canada, the UK, and Norway. This exposure elevates the city's profile, potentially leading to future investments, tourism, and residents. "People don't invest in, visit, or live in cities they've never heard of," and the Finals have put Oklahoma City on the map for billions.

Small Market Success: Oklahoma City's Support for the Thunder

Oklahoma City, while not a large market (42nd largest MSA), has shown strong support for the Thunder, including a sellout streak of 419 games. As Mayor Holt points out, 90% of Americans live in places smaller than Oklahoma City. The city's singular focus on the Thunder, being its only major league team, allows for a strong rally of support. There's a sense of patriotism around the team, which is seen as a key element in elevating the city's status. The team's presence has coincided with improvements in the food scene, art scene, population growth, and economic diversification. The city currently has the lowest unemployment rate in the country. This is not seen as a coincidence, but rather a result of the "blue ribbon" status conferred by having an NBA team.

Arena Financing: A Public-Private Partnership

A new arena project, costing at least $900 million, is being funded through a 72-month tax, $78 million from the MAPS 4 public development program, and $50 million from Thunder ownership. The public investment is justified because private sector actors typically don't build arenas in markets of Oklahoma City's size. The 71% voter approval demonstrates the community's understanding of the necessity and value of the team. The Mayor emphasized that the vote was a conscious choice, with the community understanding what life was like before the NBA and not taking it for granted.

The New Arena: Securing the Thunder's Future

The new arena secures the Thunder's presence for another 25 years (functionally 30 years from the vote). Renderings will be released in the summer. The current arena, built for $90 million (with an additional $100 million invested later), is significantly less expensive than modern billion-dollar arenas. The new arena will be a top-tier facility.

Mixed-Use Development: Enhancing the Arena Experience

A $2 billion private mixed-use development project is planned around the new arena. The new arena will be across the street from the current arena, which will likely be redeveloped. The goal is to emulate districts like the Deer District in Milwaukee, creating immediately adjacent entertainment options.

Women's College World Series: A Longtime Success

Oklahoma City has been the home of the Women's College World Series (WCWS) for a long time. Surplus funds from the 1984 Los Angeles Olympics were used to build the original softball stadium. The stadium, after a $30 million investment in 2017, is now the largest softball stadium in the world. The WCWS has become a major event, with record-breaking TV ratings and ticket sales. The direct economic impact of the WCWS is larger than the NBA Finals due to the influx of visitors. The city has a deal to host the WCWS through at least 2035.

2028 Olympics: Leveraging Existing Infrastructure

Oklahoma City will host two sports (softball and canoe slalom) in the 2028 Los Angeles Olympics. This is possible due to the existing whitewater course and softball stadium. Oklahoma City is the only city outside of Southern California slated to host an entire sport. The canoe slalom event includes seven events (three for men and three for women). The city is committed to providing a world-class experience for athletes, fans, and officials.

Long-Term Vision: Betting on Sports for City Improvement

The city is also investing in a AAA baseball park and a soccer stadium. There are conversations about a professional women's team as well. Investing in sports makes other important initiatives possible. The economic growth generated by major league sports allows for investments in mental health, education, homelessness, and other social programs. MAPS 4 includes funding for mental health crisis centers, a family justice center, a civil rights center, and a diversion hub. The Mayor stated that he voted yes for the arena because he wanted funding for homelessness and other important issues. The NBA team, the league, and the players also make investments in the community, such as basketball courts and reading rooms.

Conclusion: Investing in Oklahoma City's Future

Oklahoma City's investments in itself, particularly in sports, have paid off significantly. The city's willingness to invest in itself has been unique on a national level. Mayor Holt advises other mayors to invest in their cities, as Oklahoma City has done.

NBA Finals Prediction

Mayor Holt predicts a split in Indianapolis, followed by the series returning to Oklahoma City for game five. He believes the Thunder have strong odds, but wouldn't be shocked if the series goes to six or seven games. He predicts "Thunder in six, Thunder in seven."