Sacramento, California
Sacramento Kings Golden 1 Center Deal Terms Advisory
After more than 25 years in operation, the home arena for the Sacramento Kings was on a threshold of change. Hunden Partners, well positioned due to their advisory experience with the NBA and other professional sports teams, was engaged by the Kings to assist with term sheet review, risk mitigation and opportunity analysis, and a deal-point analysis as well other studies related to the need for a new arena. The Golden 1 Center opened in 2016.
Situation
The Sacramento Kings were exploring the need for a new arena while housed in the 17,000-seat Sleep Train Arena. Opened in 1988, the facility was considered outdated by modern arena standards and was often cited as one of the least competitive venues in the NBA. The Team sought to develop a new arena in downtown Sacramento.
Hunden Partners was retained to review the terms related to the development of the Entertainment Sports Center (ESC), with the Sacramento Kings as the primary tenant. The goal of the analysis was to minimize public-sector risk associated with the investment while remaining cognizant of the operational and financial realities of NBA arenas.
Approach
Drawing on its experience with NBA and other professional sports facilities, Hunden Partners evaluated the development agreement terms and provided recommendations to the City regarding risks, opportunities, and potential improvements to the deal structure. A deal-point analysis with comparisons to other arena agreements was also provided.
Impact
Since opening in 2016, the $558.2-million, 17,500-seat Golden 1 Center has become one of the NBA’s strongest mid-market arenas, hosting more than 100 events annually and driving significant downtown activity.
In 2024, the arena generated approximately $665 million in annual regional economic output, supported more than 2,000 jobs, and produced approximately $42 million in annual visitor spending. The Leadership in Energy and Environmental Design (LEED) Platinum-certified venue is also the NBA’s first arena to operate entirely on solar energy, incorporating advanced efficiency and sustainability systems that set new standards for environmentally responsible design.
