OVG to operate and manage new US arena

Oak View Group (OVG) has added another arena project to its portfolio, having signed a 22-year contract to operate and manage a new venue in the City of Mobile in Alabama.

As the demolition of the outdated Mobile Civic Center enters its final phases, the city is teaming up with OVG to build and operate a 10,000-capacity replacement on the same property.

Based on current designs, the demolition of the current Civic Center site and construction of a new arena is projected to cost around $300 million.

It will be financed through cash contributions from the City, project partners, sponsorship opportunities, strategic borrowing through the bond market and other funding sources. As part of the agreement, OVG will contribute $15m to the construction of the new arena and establish a dedicated capital improvement fund for ongoing maintenance at the facility.

The city has previously engaged OVG to manage two other downtown venues: the Arthur Outlaw Convention Center and the historic Saenger Theater.

“Together, we’re building something that will serve Mobile for decades to come”

“We’re thrilled to take the next step in our partnership with the City of Mobile as we move forward with plans for the new Mobile Arena,” said Peter Luukko, co-chairman, OVG360. “Together, we’re setting the stage for unforgettable live experiences including music, sports and family shows. The possibilities are endless for this deserving community.”

In addition to concerts and live performances, the new civic arena will be built to host professional ice hockey, with a minor league team being targeted, along with ice skating performances and youth, collegiate and professional sporting events. It will also be ‘uniquely designed’ to accommodate Mardi Gras balls and other longstanding local events.

“This arena will be a generational investment in our city that will enhance the quality of life for Mobilians and attract visitors from across the region,” Mobile mayor Sandy Stimpson said in a statement. “Oak View Group is an industry leader with the experience and partnerships to turn this new venue into a hub for entertainment, culture, and community on the Gulf Coast. Together, we’re building something that will serve Mobile for decades to come, and we couldn’t be more excited for what’s ahead.”

Peter Luukko, co-chairman of OVG360, adds: “Together, we’re setting the stage for unforgettable live experiences including music, sports and family shows. The possibilities are endless for this deserving community.”

Construction of the new arena is planned to begin in March, with the venue scheduled to be completed in early 2027.

Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.