Belmont arena to be named for Swiss bank UBS; deal value (on public land) claimed to be $275-$300M

Expected to open next year, Islanders' new home to be called UBS Arena, Newsday reported yesterday:

In announcing the naming rights agreement Wednesday, Islanders co-owner Jon Ledecky and Oak View Group Chief Executive Officer Tim Leiweke said UBS, a Switzerland-based bank, wanted to "send a strong message about their commitment to the future of this city, the metropolitan area and the economy" amid the coronavirus pandemic. 

UBS, which describes itself as "a global firm providing financial services in over 50 countries," has a 20-year agreement for the arena naming rights. Team executives declined to say how much the deal was worth.

Arena northeast entrance

Value murky

Pollstar reported:

The deal for UBS Arena is valued at more than $300 million over the course of the 20-year term, according to industry sources.

Sportico reported:

The deal will last at least twenty years and will pay the team a minimum of $275 million, according to a person familiar with the terms. The source was granted anonymity because the matter is private.

Though one lesson from @barclayscenter is to wait for documents to confirm it
Was announced at $400M, tho actually closer to $300M, renegotiated to $200M

— Norman Oder (@AYReport) July 22, 2020

Naming rights a gift from the public

From Newsday:

New York State, which owns the land at Belmont, agreed to allow the group to capitalize financially on the naming rights of the arena as long as the name was not offensive and did not include firearms or tobacco products, according to NYAP's lease.

In other words, it's the equivalent of a subsidy, which was never publicly calculated but surely part of the financial calculation for the "privately financed" arena.

The press release: "first third generation arena"

According to the arena press release, the arena is "built for hockey" and "made for music." The hype is mighty:

Like no other arena that has ever come before.
UBS Arena will become the new home for the New York Islanders, the first third generation arena in the industry, and a beacon of strength, resilience, achievement and community for decades to come.

Optimistic view: events coming back

From Newsday:

Leiweke said UBS' commitment to the arena "is a big, bold risk on their part to not get caught up in today and what we're dealing with. This is going to pass. The live industry, the National Hockey League, we're going to come back, and we're going to come back bigger, bolder and more exciting than before."

Optimistic view: new market

From Pollstar:

OVG hopes to ramp up concerts at UBS Arena around Thanksgiving 2021 after the hockey season starts. It all depends on the situation revolving around the pandemic, said Irving Azoff, the company’s co-founder and head of Azoff Music Management. Artists could potentially play multiple-night runs at Belmont Park, similar to Madison Square Garden.
“We think it’s a separate and distinct market from Manhattan and will complement what’s at the Garden nicely,” Azoff said.

Sure, it's separate and distinct form Manhattan, but there's also a transit-accessible arena in Brooklyn. The Belmont arena will be accessible by Long Island Rail Road, but it won't be simple.

Just remember

Every company has skeletons in its closet, right?

The press release