Oklahoma City Council approved a letter of intent(PDF, 143KB) with the Oklahoma City Thunder today that potentially retains the team in OKC beyond 2050 and called a citywide election for Dec.12 to build a new, publicly owned downtown arena. The new arena is the primary condition for securing the commitment from the team.
The new arena is proposed to be funded in part by a 72-month, one-cent sales tax that will start when the MAPS 4 tax ends and will not increase the sales tax rate.
In the letter of intent, the Thunder’s ownership group agrees to keep the NBA basketball team in Oklahoma City beyond 2050 and contribute $50 million toward the cost of the new arena.
The new arena will secure Oklahoma City’s status as a destination for premier concerts and similar events. If passed, the new arena will be built downtown, but the exact location has not been determined.
Workforce Intermediary Programs
City Council also adopted a resolution directing the City Manager to negotiate the use of workforce intermediary programs(PDF, 113KB) by the new arena operator for recruitment, training and hiring of Oklahoma City residents who are in most need of jobs. The resolution also requires the new arena operator to pay its part-time and full-time employees a wage equal to what City of Oklahoma City employees earn for similar work. Additionally, the resolution creates a working group to study and evaluate the use of labor peace agreements at the new arena.
Budget
In addition to the 72-month one-cent temporary sales tax, the arena will be paid for with $70 million in MAPS 4 funding and $50 million from the Oklahoma City Thunder ownership group.
Paycom Center
The Oklahoma City Thunder will play all home games at the Paycom Center until the new arena is ready to move in, no later than the start of the 2029-2030 National Basketball Association season. The Thunder’s 25-year commitment to remain in Oklahoma City begins when they move into the new arena.
The Paycom Center is the smallest in the NBA by square footage, it has the second-smallest capital investment of all NBA arenas, and at 21 years old, it is increasingly within range of the oldest arenas in the entire NBA.
The Paycom Center is not capable of securing a long-term lease with an NBA team. Meanwhile, there are U.S. markets larger than Oklahoma City that don’t have an NBA team, some of which already have or are planning an NBA-ready arena. Also, without a new arena, it will prove more and more difficult for Oklahoma City to retain and attract new major concerts, family shows, and other similar events.
Arena Background
The Oklahoma City Thunder has called Oklahoma City home since 2008. In 2023, the initial term of the 2008 use license agreement expired. The Thunder exercised an option to extend the agreement for three years to allow time for the city to develop a plan for a new arena.
“I commend the Council for authorizing me to sign this historic letter of intent, I thank the Thunder for their partnership, and I congratulate all of OKC for getting to this point,” Mayor David Holt said. “One step does remain, and that is the vote of our residents on December 12th. We encourage everyone to come out and set the course for our city’s future.”
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Media Contact
Kristy Yager
(405) 297-2550
kristy.yager@okc.gov