Swiss investment bank UBS has acquired the naming rights for the New York Islanders’ arena at Belmont Park in a deal reportedly worth over $300 million for 20 years.
This agreement, made with the National Hockey League (NHL) team and Oak View Group (OVG), the arena’s developer and the Islanders’ sales agency, will see the new venue named UBS Arena, with plans for it to open in time for the 2021/22 season. This marks OVG’s second naming rights agreement in just a month for an NHL facility they are developing, following Amazon’s deal for Climate Pledge Arena, which will serve as the home for Seattle’s expansion team, reached in June. VenuesNow has reported that Amazon’s contract is valued at “between $300 million and $400 million,” but the same outlet—owned by OVG—indicates that the UBS Arena deal surpasses the Climate Pledge Arena agreement due to its financial services focus and its location in the largest market in the U.S. VenuesNow also mentions that certain performance metrics need to be met for the Seattle venue to reach the $400 million figure. Both naming rights arrangements set records for NHL-only venues, which typically average about $5 million per year. In contrast, both Belmont Park and Seattle’s arenas are expected to generate an average of $15 million annually.
The Islanders’ new venue, which will host over 150 events annually, is at the heart of a US$1.5 billion redevelopment project being financed by New York Arena Partners, a collaboration between Sterling Equities, the Scott Malkin Group, and OVG. This initiative is projected to create around US$25 billion in local economic impact, including 10,000 construction jobs and 3,000 permanent positions. The investment also includes an additional US$100 million for transit and infrastructure improvements, marking the first new Long Island Railroad station to be built in nearly 50 years. Furthermore, a high-end retail village will also be developed as part of the project. For UBS, this naming rights agreement represents their first of this nature and complements their other sports sponsorships, such as with the Mercedes Formula One team. Reportedly, as part of the Belmont Park arrangement, UBS might have the chance to establish a bank within the retail village, although that is not their primary focus. Instead, they aim to utilize the arena’s premium spaces for client entertainment and networking. OVG anticipates that the new venue will rank among the ten busiest concert locations globally, enhancing its appeal to UBS. Regarding the partnerships with UBS and Amazon, Tim Leiweke, CEO and co-founder of Oak View Group, told VenuesNow:
“This shows we’re making progress in revitalizing the industry. “These two companies trust our capability to create safe venues and recognize the significant demand for live entertainment. This is a strong endorsement of the future of our industry. We will recover and thrive next year.” In addition to marketing prospects, UBS may also assist in financing OVG projects, Leiweke noted. “They recognize a company that is constructing some of the largest arenas worldwide simultaneously,” he remarked. “They understand our strategic approach to these projects and feel confident in wanting to grow alongside us. They’re one of the leading banks and brands globally, and what has become clear during our negotiations is our desire to expand our partnership beyond just developing [UBS Arena] together.” Swiss investment bank UBS has obtained the naming rights for the New York Islanders’ arena at Belmont Park, with the deal reportedly valued at over US$300 million for 20 years.
The agreement between the National Hockey League (NHL) franchise and Oak View Group (OVG), the developer of the arena and the Islanders’ sales agency, will see the new facility named UBS Arena, which is still anticipated to open for the 2021/22 season. This marks OVG’s second naming rights deal for an NHL property it is developing within the past month, following Amazon’s partnership for Climate Pledge Arena, the upcoming home of the Seattle expansion franchise announced in June. According to VenuesNow, the contract is valued between $300 million and $400 million; however, due to the deal’s association with the financial services sector and its location in the largest market in the U.S., the total worth of the UBS Arena agreement surpasses that of Climate Pledge Arena. The outlet, which is owned by OVG, notes that certain benchmarks must be achieved for the Seattle venue to reach the $400 million figure. Both naming rights agreements set records for NHL-exclusive venues, which typically average around $5 million per year.
In contrast, both Belmont Park and Seattle are expected to generate an average of $15 million annually. The Islanders’ new venue, slated to host over 150 events each year, is a centerpiece of a $1.5 billion redevelopment initiative funded by New York Arena Partners, a consortium that includes Sterling Equities, the Scott Malkin Group, and OVG. This project is projected to contribute approximately $25 billion to the local economy, creating 10,000 construction jobs and 3,000 permanent jobs. The investment will also encompass $100 million for transit and infrastructure improvements, which includes the first newly built Long Island Railroad station in nearly 50 years. Additionally, a luxury retail village will be part of the development. For UBS, this naming rights partnership is the first of its type for the banking firm and complements its existing sports sponsorships, such as with the Mercedes Formula One team. According to reports, UBS may have the opportunity to establish a bank within the retail village, although this is not a primary focus. Instead, the company plans to utilize the arena’s premium areas for entertaining and networking with potential clients.
To enhance its appeal to UBS, OVG anticipates that the new venue will rank among the top ten busiest concert destinations worldwide. Speaking on the UBS and Amazon agreements, Tim Leiweke, CEO and co-founder of Oak View Group, remarked, “This shows that we are on the path to rejuvenating the industry. “Both companies have confidence in our ability to create safe facilities and recognize the significant demand for live entertainment. This serves as a strong endorsement of the industry’s future.
We are confident that we will recover and thrive next year.” In addition to marketing opportunities, UBS may also assist in financing OVG projects, Leiweke noted. “They recognize a company that is simultaneously developing some of the world’s largest arenas,” he said. “They appreciate our strategic approach and execution on these projects, leading to their desire to grow alongside us. They’re one of the top banks and brands globally, and it has become clear through our discussions that we wish to expand our partnership beyond just the construction of UBS Arena.”
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