Wait: who’s paying for the new arena?

Last October, Oklahoma City voters overwhelmingly passed all 11 propositions tied to a $2.7 billion bond election––the largest in state history. The 2025 general obligation bond was designed to address growing infrastructure needs, maintain past investments, and enhance residents’ quality of life.

Among the 547 itemized bond projects is $25 million for the buildout of a new front office for the NBA’s Oklahoma City Thunder, adjacent to the new downtown arena being constructed on the site of the former Myriad. The Thunder has requested a minimum of 50,000 square feet to house its business operations. In lieu of being provided office space, the team’s Arena License Agreement with the city designates the Thunder as responsible for utilities, janitorial services and routine maintenance of the space.  

The Thunder’s financial reliance on the city is not new. In December 2023, 71 percent of voters approved construction of a new downtown arena for a minimum of $900 million by extending an existing one-cent sales tax for six years. The state-of-the-art venue is being built with $850 million in taxpayer funding plus a $50 million contribution from the Thunder––a fraction of the percentage invested by team owners in recent NBA arena projects.

The voter approval drew praise from big-league sports owners and criticism from opponents of public funding for privately owned professional sports teams. Recent NBA arena projects illustrate a wide range of funding structures, from fully private models to heavily subsidized public-private partnerships. The median public share for NBA arenas built in the 2020s is roughly 40 percent.

“The $50 million contribution by Thunder owners is absolutely laughable. It’s embarrassing,” said J.C. Bradbury, an economist at Kennesaw State University.

Oklahoma City Mayor David Holt championed support for the new arena and acknowledged the city did not hold leverage in negotiations. He publicly expressed concern that Oklahoma City could lose the team without a new facility. 

“Cities like ours never have leverage in these situations,” he told Front Office Sports. “We in Oklahoma City haven’t had the team long enough to forget what it was like before we had the team.”

Forbes currently values the Thunder at $4.35 billion, a 1,143 percent increase over two decades. According to Forbes, the team’s net operating income for the 2024-25 championship season was estimated at $114 million, following $74 million during the 2023-24 campaign. The franchise appears to be on solid financial footing.

Let’s bring the conversation back to the proposed office space: At $25 million for 50,000 square feet, the project equates to roughly $500 per square foot. For comparison, the 50-story Devon Tower, completed in 2012, cost $750 million and spans 1.8 million square feet – approximately $416 per square foot. The average price per square foot for homes sold in Nichols Hills over the past year is about $362.

“All we do is win in OKC.” Mayor Holt said following the passage of the general obligation bond. It appears in this instance the Thunder ownership won, while OKC taxpayers did not. 

This article appears in Spring Break Splash.