San Antonio Spurs to Make $1 Billion Arena Move

In September 2024, an open-records request revealed the City of San Antonio was "exploring" the idea of a downtown sports and entertainment district. The initiative, now known as Project Marvel, is set to include a new Spurs arena and several other renovations and expansions to major downtown structures, including the Henry B. González Convention Center and the Alamodome.

It will cost between $3-4 billion.

"We have participated in this process because we believe that building a downtown district by combining our private resources with state tax dollars collected from tourists presents a generational opportunity to grow our economy," Holt wrote in his letter.

"To reiterate our commitment, Spurs Sports & Entertainment investors and future development partners are willing to invest over $1 billion in this effort."

That sum was split into three major categories:

• $500 million toward guaranteed coverage of cost overruns for a new arena
• $500 million toward adjacent downtown development
• $60 million toward additional community incentives

Concerning the latter point, the Spurs aim to allocate 30 percent of the arena construction contracts to locally-owned companies, provide a "Park & Ride" shuttle for up to 2,000 single-game ticket buyers per night and price 500 single-game tickets per game at $25 or less.

The team also wants to underwrite a new policy to target early childhood education and child care challenges in the immediate community.

"We recognize there is still work to do and we welcome it," Holt said. "In particular, in making the case to our community about the need for this project and its benefits to our local economy."

Two physical hurdles were in the way of bringing Project Marvel to fruition before ground was broken. One was the U.S. General Services Administration building in the southeastern quadrant of Hemisfair, which has since been put up for sale, and the other was the Institute of Texan Cultures building in the heart of Hemisfair. Demolition of the ITC began in April.

In February, San Antonio city council members green-lit negotiations between the City of San Antonio, Bexar County and the San Antonio Spurs to reach a non-binding Memorandum of Understanding. Around the same time as demolition began on the ITC, an agreement was reached, stating the three parties' intentions to complete said initiative.

"We appreciate the partnership between the City and County as we take steps together in exploring a future downtown Spurs arena," Spurs CEO R.C. Buford said via a team statement following the MOU. "This is an exciting project that we believe presents the opportunity to energize our economy, strengthen our community and position San Antonio for long-term success."

Now that an MOU has been reached, necessary voting, budgeting and construction can begin. Per Walsh, expanding the convention center is first on the docket.

Before that, the city has cited a need for a $220-250 million bond to make necessary improvements to nearby infrastructure. Citywide voting on that bond could happen as soon as November, but that's dependent on the incoming City Council to call an election by Aug. 18.

With some committed money at play, that's more likely now. For the Spurs, that's good news, especially as they continue their pursuit of Western Conference contention.

The team's current contract with Frost Bank Center, its home arena since 2002, is set to expire following the 2031-32 season.

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