Sixers abandon plan to build $1.3 billion Center City arena, per reports
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The Sixers have ditched their plans to build a $1.3 billion arena in Center City in favor of staying in South Philadelphia, per several outlets.
Why it matters: It's a stunning turnaround for the 76ers, which spent millions of dollars in the more than two-year effort to secure city approval on the Market East project.
- And it's a coup for Comcast Spectacor — the owner of the Wells Fargo Center, which has been pursuing a $2.5 billion plan to redevelop the South Philly sports complex area.
Driving the news: The Sixers and Comcast Spectacor have agreed to build a new arena together in the South Philly complex, sources familiar with the deal told the Philadelphia Business Journal.
- Plus: The company and the team are expected to make unspecified investments in Market East, where City Council signed off on the Sixers' original arena project last month, per 6ABC.
- The Sixers, Comcast Spectacor and Mayor Cherelle Parker's administration did not immediately return Axios' request for comment.
Catch up quick: The Sixers were expected to open their arena at 10th and Market streets by 2031, when its current lease with Comcast Spectacor runs out.
- The team had also agreed to pay out $60 million in a community benefit agreement that would pay for improvements and programs around the arena, as well as other city investments.
Between the lines: Comcast Spectacor always wanted the Sixers to remain in South Philly.
- Despite some public feuding between the two sides, Comcast Spectacor had previously floated sharing ownership of the Wells Fargo Center with the Sixers to keep the team there.
- If the team left, Comcast Spectacor was at risk of losing a valuable tenant and gaining a competitor for events and big acts.
Zoom in: The future of Market East is now in doubt.
- Arena supporters had pitched the stadium as an anchor in a transformational project to turn around the struggling business district.
- The other side: Opponents worried the project would increase traffic and property values, while hurting existing businesses, particularly in neighboring Chinatown.
What they're saying: City Councilmembers Kendra Brooks and Nicolas O'Rourke slammed the Sixers' about-face as a "power struggle between billionaires and corporations," per a released statement.
- "Their plans can change on a whim, and these latest developments are a clear example of why the Mayor and City Council should never waste precious time and resources prioritizing billionaire projects over the work Philadelphians elect us to do," they said.
What's next: Parker is expected to reveal more details about the new plan on Monday, per the Business Journal.