Magic Disappearing Act: Team Sold Out Of Suites At New Arena

By Don Muret, Staff Writer, SportsBusiness Journal

Magic Sell Out All 51 Suites In New Arena

Three months after going to market, the Magic have received commitments for all 51 suites at its new arena, said Magic COO Alex Martins. HOK Sport's design for the $295M facility contains space on two premium levels for 56 suites tied to multi-year contracts with the flexibility to plan more units. Five of those are reserved for founding partners. Construction is scheduled to start August 1 to meet a fall 2010 opening date. "We never expected to be at this stage at this early juncture in the suite-selling process," Martins said. "The feedback has been that most companies see this as a long-term decision and the economy will rebound, and in time for when this building opens." Suite buyers are paying $10,000 non-refundable deposits up front for suites plus 25% of the first year's lease. The deals range from $150,000 annually for a three-year contract to $295,000 a year for five-, seven- and 10-year agreements. The 51 suites all have 16 seats; prices depend on location. The new arena's 66 loge boxes are expected to go on sale this month. The Magic have a database of 250 small to mid-size companies and individuals to contact. The four-seat units sell for $40,000 annually and six-seaters for $60,000, Martins said.