Why the Sixers new Center City Philadelphia Arena is the right decision
News of the Sixers plan to build 76 Place at Market East, a $1.3 Billion arena in Center City’s Fashion District by 2031 came with an incredible amount of controversy and questions.
How will they do it? Where will it be? Why are they doing it? When will it be completed? What will happen to the Wells Fargo Center? How will the surrounding communities react? Who is going to pay for it? Would SEPTA be able to support the increased volume of travelers once it is completed? And of course, how will parking work?
I was initially shocked and slightly confused when I heard the news, but after thinking it over and considering the impact that it would have on the city, I quickly realized that it was genius.
We are going to analyze the newly proposed arena from a business and societal perspective, specifically focusing on the impact that it will have on Philadelphia and particularly Center City.
Philadelphia is Pennsylvania’s largest city with approximately 1.61 million residents within city limits and about 5.76 million people currently living within the surrounding metro area, making it the 6th largest city and the 4th largest media market in the United States. Philly is also well known as the nation’s first capital and one of the oldest large cities in the United States. The city has experienced notable recent growth in real estate, media, technology, healthcare, life sciences, financial services and entrepreneurship. The city has maintained its long-standing reputation as a dedicated sports town despite the inconsistent frequency of championship success in the city.
Wells Fargo Center
The Sixers have been playing at the Wells Fargo Center in South Philadelphia since 1996 when Allen Iverson was a rookie. Comcast Spectacor owns the Wells Fargo Center and previously owned the Sixers up until the Harris-Blitzer acquisition in 2011. Comcast Spectacor owns the Philadelphia Flyers, who currently share the Wells Fargo Center with the Sixers. Comcast Spectacor is owned by Comcast, a industry-leading global media and technology corporation headquartered in the Logan Square section of Center City West. It is also one of Philadelphia and Pennsylvania’s largest employers.
In the past few years, the Wells Fargo Center has renovated multiple sections of the stadium partially in an attempt to entice the Sixers to stay (at a cost reportedly upwards of $350 million) as there have been many rumors over the years of the Sixers potentially relocating to either Penn’s Landing (which they were rejected for), the Navy Yard (which is quite close to where they currently play so it wouldn’t be too much of a change, even though it would feel very different) or Camden (which is in New Jersey and would be vehemently rejected by most local fans and likely discourage tourists from attending games).
Tourists will be referenced throughout this article since it is extremely important, in an economic sense, for the city to continue to attract and accommodate tourists. Tourists typically visit Philadelphia to see historic sights, try the local cuisine, enjoy the nightlife, attend conferences and business events. Tourists spent $7 billion and generated nearly $1 billion in tax revenue annually for Philadelphia and Pennsylvania pre-pandemic. Philadelphia was also recognized #2 as the Best Places to Visit in the USA and Best Historic Destinations in the USA in 2017 by U.S. News & World Report. Tourists are also attracted to the city to attend Sixers, Eagles, Flyers, Phillies and Union games, in addition to the abundance of popular collegiate programs in the region.
Since Comcast Spectacor owns the Flyers they will always have favorable scheduling rights over the Sixers. It is time-consuming and inefficient to have to transition from a hockey and basketball court in one day, as it can actually impact the quality of the games. In addition, the Wells Fargo Center frequently hosts collegiate games, Wings Lacrosse games, concerts and other events. The Sixers are almost never able to host prime-time holiday games because of the preferential scheduling that Comcast Spectacor has and will continue to use for other events. This is one of the main reasons why the Sixers are likely going to leave the Wells Fargo Center in 2031 once the lease has expired regardless of whether the 76 Place at Market East arena will be built or not. The Sixers want to be able to have priority scheduling and that has not been on the table since Comcast sold the team in 2011.
By 2031 when the Sixers lease will have expired, the Wells Fargo Center will be among the oldest stadiums being used by an NBA team at that time. I certainly have no ill will towards the Wells Fargo Center, as I think most fans have come to love it just like the way we felt about the Spectrum, where the Sixers played from 1967 to 1996. However it is understandable that purely from a technology, efficiency and experiential perspective that a new arena is going to have state-of-the-art features that we may never see in the Wells Fargo Center regardless of if the Sixers were to stay there or not. Even though the Spectrum was demolished once it reached the age of 45, it is much less likely that the Wells Fargo Center will have that fate based on its usage, recent upgrades, proximity to the airport and ownership by Comcast Spectacor. Once the Sixers move to Center City, the Wells Fargo Center will continue to be used by the Flyers and will likely have more concerts, collegiate games and events to fill the void left by the Sixers ultimate departure.
Here’s a statement from Comcast Spectacor, regarding the announcement of the new arena:
We’ve had a terrific partnership with the Sixers for decades and look forward to hosting the team in this world-class facility until at least 2031. We’ve invested hundreds of millions alongside the City, Phillies, and Eagles to make the South Philadelphia Stadium District an incredible destination for sports, entertainment and our passionate fans. We think it rivals any in the nation and will continue to draw the best events — the 2026 FIFA World Cup is a perfect example. — Comcast Spectacor
76 Place at Market East Arena Details
On July 21, 2022 the Sixers announced their plan to build 76 Place at Market East, a $1.3 Billion arena in Center City’s Fashion District by 2031. The initiative will be overseen by 76 Devcorp and led by Philadelphia business leader David Adelman, in partnership with Harris Blitzer Sports Entertainment (HBSE). Adelman is a globally acclaimed real estate development professional, with extensive experience in the Philadelphia real estate, philanthropic and startup environment.
“The Philadelphia 76ers’ extensive evaluation of potential sites for an arena over the past two years culminates today with plans to pursue the Fashion District Philadelphia site as the proposed new home of the team. The chosen location is a key step in the process of developing a destination that provides Center City and surrounding communities with an economic engine generating activity through 76ers and youth games, concerts, events and more.” — David Adelman
As previously noted, multiple locations were considered for this new arena but the Fashion District was chosen due to it’s transit-centric location for the greater Philadelphia area, the ability to redevelop an existing commercially-zoned space, and the potential impact that it could have on the economy of the city. The new arena will be privately-funded and will cost approximately $1.3 billion. In exchange, the Sixers would receive the favorable tax treatment that the current tenants of the Fashion District have. This is going to provide an extremely positive boost for the local economy in a number of ways. The arena will provide $1.9 billion in overall economic output during construction and $400 million annually upon opening to support Philadelphia’s long-term economic growth and sustainability.
“The project is expected to be a major economic driver for Philadelphians, creating jobs and contract opportunities during construction and after opening. We are committed to connecting these economic opportunities to residents and businesses in the surrounding neighborhoods and underrepresented communities across the city.” -76place.com
When was the last time that the city received this kind of economic boost that would be sustainable?
This is the kind of post-pandemic economic uplift that Center City (and particularly the Market East District) needs. It is going to create thousands of jobs and many lucrative business opportunities in the area for local residents and businesses, while tourists will be amazed and absolutely love the new entertainment center that will surround the arena. It will include new shops, restaurants, bars and amusements. 76 Devcorp has outlined examples of a plan to help local small businesses with support programs, loyalty packages and vendor opportunities. They’ve even stated that they plan on launching promotional programs to encourage fans to spend money at restaurants in the neighborhood on game days.
76 Devcorp has stated that the new arena will host games, concerts and community events for approximately 150 days per year. It is being designed to accommodate 18,500 guests.
“The Philadelphia 76ers are a storied Philadelphia institution with a proven track record of investing in their community. That’s why we’re committed to building a world-class home in the heart of the City and creating a privately funded arena that strengthens ties within the local community through investments that prioritize equity, inclusivity and accessibility. David Adelman shares our vision for ensuring that the new arena is an anchoring force in the local community, creating well-paying jobs and economic opportunities for those who need them most,” — Josh Harris, 76ers Managing Partner.
The new arena is going to be located where the AMC currently is on top of Jefferson Station, accounting for about 1/3 of the existing Fashion District. The Philadelphia Greyhound Bus Terminal that is currently located next to the Fashion District will have to be relocated. The bus station was previously located closer to Suburban Station in the location where the BNY Mellon Center is currently located, prior to its completion in 1990.
The term that the Sixers representatives have been using to describe the space where the AMC, shops and bus station is has been to ‘repurpose’ and ‘reimagine’ the area. It is hard to say what exactly that is going to look like but the messaging from 76 Devcorp seems to indicate that they will work with the owners of the existing Fashion District to restructure other parts of the area to accommodate them. No private residences will be displaced as a result of this project.
In the months since the announcement about the plans for the new arena, multiple groups have publicly stated their displeasure with the plans for a multitude of reasons. The most popular reasons that I’ve seen have been concerns about increased traffic, lack of parking, potential for increased crime, confusion about why the Sixers can’t stay where they are and the claim that the new arena could have a negative impact on Chinatown. Each of these concerns are addressed at some point in this article.
The Chinatown argument has been notable particularly since some groups in the area have organized to protest the new arena proposal, including a portion of the appoximately 3,000 residents of Chinatown. It is very important that we recognize that the new arena will not be built in Chinatown. The new arena is going to be built on top of an existing transit center and attached to a large mall on commercially-zoned property (similar to the nearby Philadelphia Convention Center), neither of which are in Chinatown. It is going to be located in the neighboring Market East District. The argument has been inflamed by references to the Phillies failed attempt to build a stadium in 2000 at a Center City site nearby, which resulted in ample dismay and many angry protests. Even though it is understandable that some local residents may be uninterested in significant change to a neighboring area, the Sixers have been very vocal about trying to make the new proposal a win for everyone by getting a variety of stakeholders involved with the plan, which could and should result in more visibility and foot traffic for local small businesses which fuels the economy of many neighborhoods, particularly in Chinatown.
“Our pledge is to advance equitable, community-driven revitalization through this project and to ensure the arena is a win for fans, Philadelphia and the surrounding communities. We look forward to listening to and working with the local community, including local organizations, businesses and residents, especially in Chinatown and Washington Square West, to develop a Community Benefits Agreement that results in long-term positive impact.”- David Gould, 76ers Chief Diversity and Impact Officer
In order for Philadelphia to advance and be able to compete with comparable large-market cities, it is important for the city to be able to capitalize on its strengths and assets. Culture, access and entertainment are among its primary strengths and this new arena is a perfect way to capitalize on that and drive further development across the region.
The Concourse
When the city transit system was originally designed in the early 1900s, a network with multiple miles worth of concourse walkways were built, with some of them still in use to this day while much of the concourse system has either been temporarily or indefinitely closed (while some of it was actually never opened to the public). The concourse system was created to facilitate the movement of supplies during construction of the city’s transportation system as well as a way for pedestrians to travel during poor weather conditions. The original plan also included the addition of shops and farmers markets in the concourse, some of which actually exist today. The concourse system is one of the primary reasons why the Fashion District exists. When the Fashion District was restructured in 2019 (replacing the popular and fondly remembered Gallery Mall that was opened in 1977), much of the concourse system in the area was renovated to meet the needs of the transit system and shoppers, so I foresee that being one of the primary ways to accommodate the additional foot traffic in the area, alleviate street-level pedestrian traffic, while also creating the potential for new shops in or around the concourse system as it was originally intended many years ago when it was concepted and built.
Safety
Many skeptics have referenced increased crime as a potential issue with the announcement of the new arena. Philadelphia has a significant crime problem. It is unfortunate, but it is real. However, Center City is generally considered to be very safe and typically media and law enforcement officials reference ‘safety in numbers’ as one of the reasons why the area is among the least dangerous in the city, generally speaking. The Fashion District also has a notably robust presence of staffed guards and it is expected that by 2031 the officials that are managing the Fashion District, Sixers staff, City of Philadelphia and SEPTA (Southeastern Pennsylvania Transit Authority) Police department should be able to coordinate a plan to manage the increased foot traffic at that time.
76 Devcorp has outlined a variety of safety provisions in their plan.
Parking
Parking is probably one of the biggest concerns with the new arena plan as traffic in Center City is already incredibly troublesome since the city is extremely old and was not built to support the amount of cars that travel through the city. According to the Sixers, there are currently at least 29 parking garages within 1/2 mile of the proposed arena location. This is still going to be an issue. I don’t think that the Sixers are expecting people to try to drive to the games like they do now. It is important to keep in mind that this new arena is going to be set up similarly to Capital One Arena in Washington, DC, Barclays Center in Brooklyn, NY and Madison Square Garden in Manhattan, NY (Haven’t you heard? Center City is becoming Manhattan now. Try eating out at a few restaurants, attending any entertainment event and going to a hotel in Center City and you will see that it’ll be an expensive support to my claim).
Most fans use conveniently located public transportation to attend the games, with a relatively small amount of fans driving to the games. So if you oppose the Sixers new arena because of how limited and inconvenient the parking situation is going to be, I cannot argue that point because it is going to be rough whether they build new parking garages nearby or not. Parking (and quite frankly driving) in that area is already arduous and can be pricy. So I recommend embracing the change and planning on using public transportation to attend the games and events at the arena.
Another Potential Location?
A thought that I had around the time when they announced the new arena was, why couldn’t they put it near 30th Street Station? So before you get upset with me, the reason why I thought that could work is because if the intent is to get local fans to use public transportation and still make the games more accessible for tourists, than anything near 30th Street Station would make the most sense since it is easily accessible by Amtrak, SEPTA regional rail, busses and the subway. In fact, 30th Street Station is the third busiest Amtrak train station in the United States with over 4.5 million yearly visitors (pre-pandemic). So I would be open to that if leveraging public transportation access is their primary target. As I conducted further research, I found that they actually did look into the area surrounding 30th Street Station, as well as Spring Garden and Front Street.
There are many reasons why they wouldn’t consider the 30th Street Station area though, probably starting with the fact that a lot of that area has actually been claimed for new skyscrapers that’ll be built over the next few years surrounding Schuylkill Yards. It will be interesting to see how that area transforms, and how it’ll alter the appearance of the iconic city skyline, since its emergence in 1987 with the completion of One Liberty Place. Ironically, if the Sixers do get to build the new arena at the Fashion District, then the Greyhound Bus Terminal that would be displaced as a result may get relocated to be nearby 30th Street Station. There are also currently far less attractions and entertainment options surrounding 30th Street Station compared to the Fashion District, which would be less desirable for local fans and tourists. A new proposed arena near 30th Street Station would probably be even more scrutinized than the proposed idea of having the new arena at the Fashion District.
In conclusion, this is a fantastic opportunity for Center City and the entire Greater Philadelphia Area as we can welcome a gorgeous new ultramodern arena into a thriving metropolitan market that will foster growth across the area, provide new lucrative opportunities and create a revolutionary entertainment experience that the city will use as a catalyst to build upon well into the future.
Thank you for your time and I would be happy to discuss this project and hear your thoughts and feedback. Connect with me on LinkedIn and Twitter.
Go Sixers!! #BrotherlyLove and #TrustTheProcess of course
Andrew C. Belton, MBA is a Digital Marketing and Financial Services Professional, Writer and Owner of Symmetrical Media Marketing. He has been featured in LinkedIn News, LinkedIn Pulse, Startup Stash and Business2Community. He is a Philadelphia native, Philly Sports fanatic, West Chester University graduate and is passionate about helping small businesses, education and challenging the limits of technology and communications.
