The Philadelphia 76ers made a dramatic change to their market plans on Monday, revealing a “50-50 combined venture” with Comcast on a new facility that does house both the NHL’s Philadelphia Flyers and the NBA group. Following almost two years of frequently vile battle between the group’s masters and Comcast, the City Council voted to approve the 76ers ‘ past program, a questionable$ 1.3 billion tower in a different part of town. The strategy for a new shared location in South Philly’s existing pro sports city, which both groups called a bargain, came up in just the last several weeks. ” The trip to the best solution doesn’t usually go in a direct line”, Flyers co-owner Josh Harris said Monday in a press conference. ” But I am certain that now we have discovered an extremely beneficial alternative for Philly. Now it’s time to get to work”.But what exactly does that alternative entail? What changed in recent months? And what concessions were made? 1 ) New NBA TV Deals: It’s probably not an exaggeration to say that this deal might not have happened if Comcast hadn’t joined the NBA’s new$ 77 billion media deals last year. In addition to its RSN assets, Comcast is now a leaguewide advertising partner, which entails a whole new set of obligations and stresses. NBA commissioner Adam Silver, who spoke primary during Monday’s press conference, clearly played a major part in the discussions. Gold was present in Harris ‘ package for a meeting that reportedly helped the two factors thaw the relationship between the two teams at the Washington Commanders match on December 1. Comcast head Brian Roberts and a number of other business leaders were also present. Silver and the NBA’s role in the new partnership were both mentioned by Harris and Philadelphia Mayor Cherelle Parker. Ryan Boyer, who is in charge of a coalition of powerful unions in the city, did the same. ” Listen, Comcast is now the media partner for the NBA, so obviously that played into the deal”, Boyer, business manager of the Philadelphia Building and Construction Trades Council, said Monday, according to the Philadelphia Inquirer. ” The NBA is back on NBC. Peacock—they’re going to be streaming some games. So, I’m confident that, despite how belated it may be, the partnership played a significant role in this choice. ( An NBA spokesman didn’t respond to an email seeking comment on Silver’s involvement, a representative for the Sixers declined to comment on specific deal points ). 2 ) 50-50 Partnership: The two sides haven’t released any details on how they’ll share revenue and expenses, but there is plenty of precedent across pro sports. In the mid-2000s, for example, the New York Jets and New York Giants teamed up to build MetLife Stadium at a cost of$ 1.6 billion. The two NFL teams split the costs equally and are responsible for running the venue. Additionally, they equally divided the money, including those derived from Verizon and Bud Light’s cornerstone building sponsors and the MetLife naming rights. When creating a team revenue blend, things become a little more complicated. MetLife sells all-event suites, but the Giants and Jets also sell their own, which stays on each team’s side of the financial ledger. Ticket sales from their own games—Giants tickets are generally more expensive—also remain on each team’s P&amp, L. There are similar arrangements in the NBA/NHL—two teams with different ownership groups, a 50-50 arena venture and shared economics. In Chicago ( Bulls and Blackhawks ), and in Dallas ( Stars and Mavericks ), venues are operated along similar lines. This contrasts with the 76ers ‘ current setup at the Wells Fargo Center, where the arenas are managed by one team with another as a tenant, and Boston’s TD Garden. 3 ) Lack of Competition: Going from two Philly-area arena projects to one also concentrates revenue opportunities on non-gamedays. With the current plan, the Flyers won’t be competing against the Sixers trying to lure concerts, monster truck rallies, rodeos and other events that boost revenue when the teams aren’t playing. There are only a few cities in North America with multiple 15, 000-seat arenas that each house the NHL and NBA teams, besides New York and Los Angeles. 4 ) Naming Rights: As part of the deal, Comcast will have naming rights to the new building, which is set to open in 2031. Although it’s not clear whether the company is paying directly for the right or if it’s an in-kind concession, it’s valuable advertising real estate either way. Projecting value seven years in advance is inexact, but based on current deals for multi-team arenas, those naming rights could be worth$ 25 million to$ 35 million per year, according to sponsorship consultant Eric Smallwood, president of Apex Marketing Group.
5 ) Equity: Comcast is also “planning to take a minority stake in the 76ers”, according to the press release. Again, it’s unclear if Comcast would pay for that ( and at what valuation ), or be given it as part of the partnership, but it’s another major financial concession. The Sixers are worth$ 4.57 billion, according to Sportico’s most recent number, which ranks eighth in the NBA. This equity is almost certainly Sixers-only, and will not include HBSE’s other major sports asset, the New Jersey Devils. The company is unable to hold equity in multiple NHL teams because of Comcast’s ownership of the Flyers. It likely does, however, extend to a possible WNBA franchise. The expansion fee for the W’s 16th team could easily reach$ 100 million, and the average WNBA team is now worth$ 96 million, according to Sportico. This wouldn’t be the first time a league’s national broadcaster also holds equity in a team. Rogers Communications ( NYSE: RCI) has the NHL’s Canadian TV rights —a 12-year deal signed back in 2004—and is also a prominent investor in MLSE, which owns the Maple Leafs. 6 ) WNBA Expansion: Speaking of the WNBA, this announcement certainly strengthens Philadelphia’s push to land an expansion team. There are several cities competing for the 16th spot, some of which are NBA owners, while others are not, and it’s still a question whether or not the NBA would weigh their own decision. Recent expansion choices have represented both—Golden State ( NBA owner ), Portland ( non-NBA owner ) and Toronto (tied to NBA owner ). It’s worth also noting that comedian Wanda Sykes and her wife, Alex, were both present on the stage at Monday’s press conference alongside Harris, co-owner David Blitzer, Roberts, Mayor Parker, Phillies owner John Middleton and others. Parker has joined the effort, with WNBA commissioner Kathy Engelbert confirming in October that Philadelphia was “on the list.” Wanda and Alex Sykes have long pushed for Philadelphia to acquire a WNBA team. The Philadelphia offering now has a new arena to promote and the focused attention of Silver, and WNBA expansion bids are due in the upcoming weeks. 7 ) Lingering Bitterness? Just a few months ago, when the two parties tried to undermine one another in public and behind closed doors, this partnership seemed unthinkable. Some of the Sixers ‘ projections for their own arena were deemed a “myth” by the Wells Fargo Center’s X account in September 2023. Around the same time, David Adelman, a Sixers investor and the team’s lead negotiator on the project, accused Comcast of “lurking in the shadows, hiding behind others, while it lobbies decision makers and twists arms to try to stop the]76ers ] from building our own privately funded arena” .How much of that bitterness still exists? It’s unclear, though it wasn’t present at Monday’s press conference. ” I don’t think there’s anyone more surprised that we’re standing together than me”, Adelman said. Being on the same team is a much better feeling, according to Kurt Badenhausen, despite having spent the last couple of years on the opposing team.