Los Angeles Clippers chairman Steve Ballmer's plan to provide his team with its own home arena took a major step forward Tuesday.
Through the formation of CAPSS LLC, Ballmer and Clippers vice-chairman Dennis Wong reached an agreement to purchase the Forum from the Madison Square Garden Company for $400 million, the Clippers announced in a release.
"This is an unprecedented time, but we believe in our collective future. We are committed to our investment in the city of Inglewood, which will be good for the community, the Clippers, and our fans," Ballmer said in a statement.
The acquisition concludes a lengthy legal battle between Ballmer and MSG over the development of the Clippers' proposed arena, which is slated to be constructed in close proximity to the Forum - the former home of the Los Angeles Lakers. New York Knicks owner James Dolan, who owns MSG, previously fought against the proposed development, largely because of the increased competition the Forum would have faced.
Events can now be coordinated more seamlessly between the Forum and the Clippers' new arena - scheduled to be completed by 2024 - and traffic congestion in the area will also decrease.
The deal is expected to close in the second quarter of 2020. Ballmer plans to keep the Forum as a music venue, and he'll also extend offers of employment to MSG's current staff working at the location.