Arsenal owner and US billionaire, Stan Kroenke, becomes the lead investor in the San Diego Sports Arena redevelopment, promising a significant transformation to the 48.5-acre site through his involvement with Midway Rising.
- Stan Kroenke acquires a 90 per cent ownership interest in San Diego Sports Arena redevelopment, set to increase to 95 per cent once construction begins.
- Midway Rising plans to construct a 16,000-seater arena, over 4,000 residential units, and additional hospitality and recreational facilities.
- Despite no official talks about relocating professional teams, San Diego’s mayor Todd Gloria recognises Kroenke’s sporting connections could bring potential franchise presence.
Known for his ownership of Premier League club Arsenal, US billionaire Stan Kroenke has embarked on a new venture.
In a significant move, Kroenke has become the lead investor and a limited partner of the Midway Rising team, the driving force behind the redevelopment of the 48.5-acre San Diego Sports Arena site.
Redevelopment plans at a glance
Confirmed reports from the San Diego Union-Tribune reveal that The Kroenke Group (TKG) now owns a 90 per cent stake in the project.
This is set to increase to 95 per cent once construction begins.
The ambitious project involves the construction of a new 16,000-seater arena, 4,250 residential units, a 200-room hotel, and an expansive 20-acre park and plaza space.
Keeping stakes and shares
In the project’s initial stages, housing developer Zephyr and specialist agency Legends remain as general partners, each holding a five per cent stake.
However, these shares are set to halve further once construction commences.
Interestingly, the house-building firm Chelsea remains a partner on the project but does not hold an ownership stake.
As per the agreement, the limited partner and general partners are reportedly set to share 75 per cent of the proceeds proportionately, based on ownership interest after capital investments are recouped.
Zephyr and Legends will split the remaining 25 per cent of the project’s proceeds.
Kroenke’s connection to San Diego
Stan Kroenke is a significant figure in the sports world, holding ownership of the NBA champions Denver Nuggets and the NFL’s Los Angeles Rams.
His companies operate several stadiums that house his teams, such as Arsenal’s Emirates Stadium and the Rams’ SoFi Stadium.
However, Kroenke has a contentious history with San Diego, having relocated the Rams from the Southern Californian city to Los Angeles.
Local sentiments
San Diego’s mayor, Todd Gloria, expressed optimism about the project in a statement to the Union-Tribune.
“That someone of this calibre is willing to make this investment in partnership with the team that we selected… it makes it more likely [that the project] will come to pass, to not only provide the world-class venue that we want but also the housing that we desperately need,” said Gloria.
Future prospects
Zephyr’s chief executive, Brad Termini, confirmed there were no ongoing talks concerning the relocation of professional basketball or hockey teams to the venue, however, Mayor Gloria hinted at such a possibility.
He recognised that Kroenke’s extensive sporting connections could open doors for a franchise’s presence in the future.
In conclusion
Stan Kroenke’s investment in the San Diego Sports Arena redevelopment signifies a major move in the city’s sports and housing landscape.
Despite the absence of any official communication regarding team relocations, Kroenke’s sporting influence might introduce new dynamics to San Diego’s professional sports scene.