As the Miami HEAT embarks on its historical quest for a fourth straight appearance in the NBA Finals and our third consecutive NBA Championship, I am happy to announce that we have come to an agreement with Miami-Dade County Mayor Carlos Gimenez, subject to the approval of the Board of County Commissioners, to extend our partnership with Miami-Dade County for an additional 10 years and remain at the County-owned AmericanAirlines Arena through the 2040 NBA season. We make this agreement with Miami-Dade County proudly as we finalize our commitment to remaining in the Magic City.
By any measure, the partnership between the Miami HEAT and Miami-Dade County has been a hugely successful one; today we are committing to keep that success going. We thank Mayor Gimenez for his vision, commitment and professionalism.
As part of the agreement, The HEAT Group will make an annual guaranteed payment to the County for the benefit of the perpetually underfunded County Parks and Recreation efforts and activities, which we believe will enhance the quality of life for all Miami-Dade residents.
Additionally, the agreement provides cost certainty for the franchise, a necessity in this age of punitive NBA luxury taxes, and will allow us to more proactively plan our future basketball spending and maintain our commitment to all of you to put the best possible product on the floor.
The agreement also provides an inflation-adjusted operating subsidy from the County’s CDT fund to the arena during the 10-year extension term totaling $147 million that will allow us to continue doing what we’ve always done: reinvest in the County-owned AmericanAirlines Arena in order to maintain the level of excellence you’ve come to expect. This season alone we upgraded our concession stands and Flagship Lounges and vastly improved our wireless capabilities in an effort to provide you with a sports and entertainment experience that is second to none.
Lastly, the agreement enables The HEAT Group to continue driving the growth of South Florida’s economy. Last spring, the Washington Economic Group conducted an economic impact study, which concluded that together, the team and the Arena generate an estimated $1.4 billion annually for the benefit of our local community. From the community’s perspective this extension has already paid for itself and then some.
We anticipate being before the Board of County Commissioners for a vote on May 6th. Your continued support is very much appreciated.
Let’s Go HEAT!
Sincerely,
Micky Arison
Managing General Partner