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Major Renovations Planned for Honda Center, Home of the Anaheim Ducks
Bird’s-Eye View: The Anaheim Ducks’ home arena, the Honda Center, will get a five-story grand entrance as part of a major renovation, shown here in a rendering.
Honda Center’s Historical Significance
Anaheim Arena first opened its doors in June 1993, initially featuring a sold-out concert by Barry Manilow. Costing $123 million to construct, it was heralded as a cutting-edge facility. That fall, it became the home of the NHL’s expansion team, the Mighty Ducks of Anaheim.
Over the past thirty years, the venue has evolved significantly. Renamed Honda Center, the arena’s last major music act was Justin Timberlake in January. As the NHL’s fourth-oldest arena, it is beginning to show signs of wear. Fans frequently encounter long waits for concessions, and logistics have become increasingly challenging; while four loading docks once sufficed, modern touring requirements now demand more—Timberlake’s show required 25 semitrailers for equipment.
Investment in the Future
Henry Samueli, a billionaire involved in the microchip industry, purchased the Ducks in 2005 from the Walt Disney Company. He plans for the Honda Center to be the highlight of a $4 billion entertainment complex dubbed OCVibe. To rejuvenate the arena, Samueli is committing an additional $1 billion to extensive renovations, as announced by Anaheim Mayor Ashleigh Aitken.
“We are thrilled to invest our funds into the facility, which is unnecessary but vital for its extended lifespan,” stated Bill Foltz, CEO of OC Sports & Entertainment, Samueli’s holding company. “A major upgrade is overdue, and we believe taking action now is crucial.”
Notably, the Ducks stand as one of only two significant professional sports teams in Southern California that play in a venue owned by their city, along with the MLB’s Padres. Foltz emphasized that Samueli’s investment ranks among the largest private contributions to a public venue. The proposed updates include a new five-story entrance, renovated suites, additional escalators, enhanced food options for fans, and a significant expansion of loading docks at a cost of $65 million. Construction will commence immediately and span three years while the arena remains operational.
A Long-Term Commitment
The Ducks have options for extensions that could keep them tied to the Honda Center until at least 2064. “We’re here for the long haul,” Foltz remarked, adding that it’s a strategic investment for the next three decades.
This renovation project will be entirely funded by Samueli, who co-founded Broadcom. His financial success came when the company went public in 1998 and was later sold for $37 billion in 2016. Now serving as chairman, Samueli has seen his wealth dramatically increase, bolstered by the booming demand for technology chips in recent years. His personal fortune has escalated from $7.7 billion in 2023 to $19.5 billion, according to Forbes estimates.
After acquiring the Ducks for approximately $70 million, the team achieved its first Stanley Cup victory in 2007. Although they have not made the NHL playoffs for seven consecutive seasons, rising media rights deals have propelled the franchise’s value to $1.3 billion, despite their current ranking of 26th out of 32 NHL teams and 29th in home attendance this season.
Anticipated Impact of Renovations
The upcoming changes to the Honda Center are expected to boost fan attendance and improve sponsorship and premium seating options, crucial as the team adapts to a shifting media landscape that could affect annual revenue significantly.
According to the Ducks’ current lease signed in 2018 with Anaheim, Samueli’s company retains 47.5% of any arena revenue surpassing $6 million each year, calculated after deducting expenses from facility upgrades.
The Honda Center’s renovation will revamp its premium spaces, including the club shown in this rendering.
Michael Schulman, the Ducks’ CEO, remarked on the financial commitment, saying, “Pouring this much capital into the center makes it unlikely for us to recoup our expenses. While many teams depend on public funding for arenas, we are investing our own money into a project for which we won’t gain ownership.”
The OCVibe District: A Vision for Community and Development
The OCVibe development promises a 50,000-square-foot food hall, live venues, restaurants, hotels, a public transit station, and expansive green spaces. The project will be executed in phases over the next four years, having already incurred $1 billion in costs, including the imminent completion of a new parking garage this fall.
Once completed, Foltz anticipates that Anaheim will see $10 million annually in direct tax revenue, primarily from hotel taxes, though the hotels may not open until late 2028. The goal is to have most project components ready by the summer of 2028, aligning with the indoor volleyball events of the Los Angeles Summer Olympics.
In recent years, various entertainment districts, like the Battery in Atlanta and the Star in Dallas, have emerged near sports arenas, aiming to capture fans’ spending before and after events. What differentiates OCVibe is the singular ownership model by the Samueli family, allowing for a cohesive experience for visitors.
“This unique ownership enables us to manage all aspects efficiently,” Foltz stated. “It allows for a seamless visitor experience from the moment they arrive to when they leave.”
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