OKC and Thunder approve agreements to keep the Thunder in OKC through at least 2053
6/17/2025
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On Tuesday, the Oklahoma City Council approved four agreements that will retain the Oklahoma City Thunder NBA basketball team in OKC through at least 2053.
The agreements are as follows:
- Arena Use License Agreement
- New Arena Food and Beverage Agreement
- Amended Facility Management Agreement
- Preferential Rights Agreement
“Becoming a big league city has changed us forever, as the last few weeks have reminded us,” Mayor David Holt said. “Since 2022, we have worked as a community to secure our long-term status as a big league city. This agreement represents the culmination of that work. I thank the team ownership and staff, the Council, the City staff and ultimately the voters and residents for their work to bring about this day. Now, we know officially that our relationship with the Thunder is secure through at least 2053.”
Arena Use License Agreement
The Arena Use License Agreement is between The City of Oklahoma City, SMG/ASM Global and the Thunder.
This 25-year agreement includes the opportunity for five three-year additional renewals. The 25-year period begins when the Thunder moves into the new Paycom Center in the summer of 2028. The NBA must approve the Arena Use License Agreement before it takes effect.
If the team leaves OKC in the first five years of moving into the new Paycom Center, the Thunder will pay the City $1 billion. If they leave in years 6-10, they will pay the City $850 million. The scale continues for 25 years.
The Thunder will pay the City of Oklahoma City $58,000 per game to use the building. These payments increase by 3% for years 2-5, with annual increases after year five not to exceed 3% of the Consumer Price Index.
The City is responsible for maintaining the building and operating the new Paycom Center. The team will retain control of the building's naming rights.
The Thunder will have the option to operate the new Paycom Center when the agreement with SMG/ASM Global ends, provided the Team and the City can agree on terms.
Read the agreement.
New Arena Food and Beverage Agreement
The New Arena Food and Beverage Agreement is between the City of Oklahoma City, SMG/ASM Global and the Thunder. It simplifies financial terms for revenue sharing (compared to the past agreement) and updates the terms for local vendor concession revenue sharing. It also requires the operator and the team to agree on the concessionaire. The agreement begins when the new Paycom Center opens.
One percent of gross concession sales will be allocated to a repair or replacement fund for food and beverage equipment.
Read the agreement.
Amended Facility Management Agreement
This renewal agreement is between the City and SMG/ASM Global and extends through the first five years of the new Paycom Center's opening.
Read the agreement.
Preferential Rights Agreement
This agreement is between the City of OKC and the Thunder. The Thunder ownership will have exclusive rights to purchase the existing Paycom Center property within five years of the new arena's opening. If the team does not purchase the site within the first two years of the new Paycom Center's opening, it will reimburse the City for 50% of the cost to maintain the current center.
If the Thunder takes this option, the existing arena must be demolished within 12 months of purchasing the property. Demolition costs paid by the Thunder ownership will be credited against the property's fair market value purchase price.
Read the agreement.
Arena History
Demolition of the former convention center
Demolition of the former convention center began in March 2025 and will last through late 2025. The former convention center opened in 1972 as the Myriad Convention Center. Over the years, its name changed to Cox Business Services Convention Center and Prairie Surf Studios. The building has hosted thousands of events in the past 50 years.
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New Paycom Center background
In December 2023, Oklahoma City voters overwhelmingly (71%) approved a penny sales tax to build a new, publicly owned arena (AKA the new Paycom Center). In May 2024, the Oklahoma City Council approved a development agreement for the City’s new arena between the City and PBC Sports and Entertainment, LLC (PBCS&E), owners of the Oklahoma City Thunder and the Oklahoma City Blue.
The new arena will be funded by a 72-month, one-cent sales tax starting when the MAPS 4 tax ends. The sales tax rate will not increase. The arena will also be paid for with $78 million in MAPS 4 funding and $50 million from the Oklahoma City Thunder ownership group.
The $900 million arena will be at least 750,000 square feet and be built to:
- Benefit the residents of Oklahoma City.
- Meet/and or exceed NBA specifications and requirements.
- Maximize team revenues, ensuring the sustainability of major league professional sports in Oklahoma City.
The Thunder will continue to play home games at the existing Paycom Center until the new one opens, with a target completion date of June 2028 and a contractual obligation to open the new arena by June 2029. The Thunder’s 25-year commitment to remain in Oklahoma City begins when they move into the new arena.
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Media Contact: Kristy Yager, (405) 297-2550, kristy.yager@okc.gov
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