A new rendering of the Diamond District ballpark. (Images courtesy Richmond Flying Squirrels)
A not-so-well-kept secret has been made official: Richmond’s new baseball stadium will be called CarMax Park.
The Richmond Flying Squirrels and Goochland-based CarMax formally announced a multiyear naming rights deal Wednesday that Lou DiBella, the team’s managing general partner, said helped push the deal for the $117 million ballpark over the finish line.
“Without that CarMax deal and the comfort in knowing that their commitment was there, we would not have been able to make the extraordinary commitment that we made in our lease with the city,” DiBella told attendees at Wednesday’s announcement.
“Baseball,” he added, “is here because of CarMax.”
The name of the Goochland-based used-car giant will grace the ballpark at its entrances.
The investment amount and duration of the naming rights were not disclosed at the event, held at the recently renamed Midtown Green, the former Bon Secours Training Center that’s now Richmond Parks & Recreation’s home base.
While rumors have swirled in recent months that the used-car giant’s name would be on the new stadium, it wasn’t made official until Wednesday. The event also unveiled the latest renderings of the 10,000-seat ballpark that’s planned to anchor the Diamond District – the $2.4 billion mixed-use development set to replace and fill the land around The Diamond.
The new ballpark will rise just south of The Diamond, which will be razed once the new venue is completed. Site work for the new stadium got underway in recent weeks, and an official groundbreaking ceremony is scheduled this Friday.
At Wednesday’s event, CarMax CEO Bill Nash said the opportunity to be involved in creating a new neighborhood was as important to the company as having its name on the stadium.
CarMax CEO Bill Nash provided remarks at Wednesday’s event. (Jonathan Spiers photos)
“We’re a company that’s founded on values, and one of our values is putting people first: putting our associates first, our customers first and our community first,” he said. “We’re here to celebrate more than a ballpark; we’re here to celebrate the ability to strengthen our community and make sure we keep minor league baseball here in Richmond for a very long time.”
CarMax competed with other naming-rights contenders but broke away from the pack early on, DiBella said after the event.
“Their commitment sort of blew everybody else out of the water, in the sense of their interest in being part of this development,” DiBella said. “Not just our ballpark, but the fact that CarMax Park would be the anchor to develop a whole new neighborhood of the city, that was something that the people at CarMax were very focused on.
“It was clear to us almost from the get-go that they were the desired partner: a local company with a tremendous sense of community that really believes in the next 30 years in Richmond,” he said. “That’s what we needed.”
DiBella described CarMax’s investment as integral to getting the deal done for the 30-year lease. The Flying Squirrels will pay $3.2 million a year for the first 10 years for use of the stadium, which will be owned by the Richmond Economic Development Authority.
Lou DiBella shows a rendering of the new venue’s beer garden.
The rent will then drop to $1.34 million for the 11th year and rise 3% each year thereafter, bringing the Squirrels’ total rent over the life of the lease to $66 million. Virginia Commonwealth University will also pay a yet-undisclosed amount of rent to the EDA for its baseball team’s use of the new stadium.
The rents will be used to pay off $40 million in the lease revenue bonds financing infrastructure improvements for the first phase of the larger Diamond District development. The stadium is to be financed using $130 million in general obligation bonds, which are to be paid back using tax revenue generated by the overall development.
DiBella said the Squirrels’ lease is among the highest in Minor League Baseball and wouldn’t have been feasible without CarMax’s support.
“Our rent’s going up 16-fold. If we’re not the highest rent in all of minor league baseball, we’re one of the two or three (highest),” DiBella said.
“It’s almost a record-setting rent, and in order to do that, you need meaningful revenue to offset those expenses. Rent’s an enormous expense now – $3.2 million a year in the first 10 years. We needed a strong naming rights partner to help us make the commitment we needed to make to get the deal done.”
The stadium will include 20 suites and a corner “party suite” with views of the downtown skyline.
The lease with the city, which the parties signed two weeks ago after months of negotiations, allowed the Squirrels to sell the naming rights and retain revenue from it. “CarMax Park” builds on a sponsorship arrangement that CarMax has had with the Squirrels since 2016, according to a release, which said the company also supports several national and local sports leagues and teams.
The naming rights deal will give CarMax the ability to use the ballpark to host events, which Nash, the CEO, said would extend beyond the baseball season. While headquartered in Goochland, the company has a presence in Richmond that includes its Midtown Technology and Innovation Center at 2200 W. Broad St., just over a mile from the future CarMax Park.
“When you think about this new ballpark, it is really more than just a ballpark,” Nash said. “It’s going to be a phenomenal home to the Flying Squirrels, but it is also going to be home to music concerts, social events, partners being able to leverage it, so it’s really going to be used throughout the year, not just during baseball season.”
Also on hand for Wednesday’s event was Peter Woodfork, senior vice president of minor league operations and development for Major League Baseball, which oversees minor league venues. MLB required all pro baseball parks to meet new facility standards. CarMax Park is designed to meet those standards, which officials have said the decades-old Diamond cannot.
“Baseball’s future is bright in Richmond, due to the leadership and teamwork of this group,” Woodfork said, referring to the Squirrels, CarMax and the city.
“It’s a big step for us here at Major League Baseball to be in Richmond. We always wanted to be here, we knew it could happen, there were some peaks and valleys, but we can’t thank you all enough,” he said.
Mayor Levar Stoney addresses the crowd in front of City Council members and other Richmond officials.
Richmond Mayor Levar Stoney and the Squirrels’ Todd “Parney” Parnell acknowledged those peaks and valleys in their remarks, which noted the 15-year journey to get to this point since the Squirrels arrived in Richmond and were promised a new ballpark.
“After decades of inaction, we are finally here, and you can feel the energy. In Richmond, when we make a promise, we keep our promises,” Stoney said, to which DiBella heckled: “Some of you do.”
Laughing, Stoney added: “Fifteen years ago, the city made a promise to the Flying Squirrels, and now, fast forward to 2024, we are keeping our promise. With the 30-year lease and with CarMax’s partnership, I am proud to say that the Squirrels are here to stay.”
Todd “Parney” Parnell livens up the crowd with a round of towel-spinning during Wednesday’s event.
Added Parnell: “It has been a long journey. I think we’re all going to be better now having this new facility, but I don’t think we’d be as strong as we are now if we didn’t have to go through the last 15 years.”
The Squirrels and consultant Machete Group are handling design and development of the stadium, which is targeted for completion in time for the 2026 season. LaBella Associates is designing the stadium, and Gilbane Building Co. is the general contractor.
BizSense editor Michael Schwartz contributed to this report.
A new rendering of the Diamond District ballpark. (Images courtesy Richmond Flying Squirrels)
A not-so-well-kept secret has been made official: Richmond’s new baseball stadium will be called CarMax Park.
The Richmond Flying Squirrels and Goochland-based CarMax formally announced a multiyear naming rights deal Wednesday that Lou DiBella, the team’s managing general partner, said helped push the deal for the $117 million ballpark over the finish line.
“Without that CarMax deal and the comfort in knowing that their commitment was there, we would not have been able to make the extraordinary commitment that we made in our lease with the city,” DiBella told attendees at Wednesday’s announcement.
“Baseball,” he added, “is here because of CarMax.”
The name of the Goochland-based used-car giant will grace the ballpark at its entrances.
The investment amount and duration of the naming rights were not disclosed at the event, held at the recently renamed Midtown Green, the former Bon Secours Training Center that’s now Richmond Parks & Recreation’s home base.
While rumors have swirled in recent months that the used-car giant’s name would be on the new stadium, it wasn’t made official until Wednesday. The event also unveiled the latest renderings of the 10,000-seat ballpark that’s planned to anchor the Diamond District – the $2.4 billion mixed-use development set to replace and fill the land around The Diamond.
The new ballpark will rise just south of The Diamond, which will be razed once the new venue is completed. Site work for the new stadium got underway in recent weeks, and an official groundbreaking ceremony is scheduled this Friday.
At Wednesday’s event, CarMax CEO Bill Nash said the opportunity to be involved in creating a new neighborhood was as important to the company as having its name on the stadium.
CarMax CEO Bill Nash provided remarks at Wednesday’s event. (Jonathan Spiers photos)
“We’re a company that’s founded on values, and one of our values is putting people first: putting our associates first, our customers first and our community first,” he said. “We’re here to celebrate more than a ballpark; we’re here to celebrate the ability to strengthen our community and make sure we keep minor league baseball here in Richmond for a very long time.”
CarMax competed with other naming-rights contenders but broke away from the pack early on, DiBella said after the event.
“Their commitment sort of blew everybody else out of the water, in the sense of their interest in being part of this development,” DiBella said. “Not just our ballpark, but the fact that CarMax Park would be the anchor to develop a whole new neighborhood of the city, that was something that the people at CarMax were very focused on.
“It was clear to us almost from the get-go that they were the desired partner: a local company with a tremendous sense of community that really believes in the next 30 years in Richmond,” he said. “That’s what we needed.”
DiBella described CarMax’s investment as integral to getting the deal done for the 30-year lease. The Flying Squirrels will pay $3.2 million a year for the first 10 years for use of the stadium, which will be owned by the Richmond Economic Development Authority.
Lou DiBella shows a rendering of the new venue’s beer garden.
The rent will then drop to $1.34 million for the 11th year and rise 3% each year thereafter, bringing the Squirrels’ total rent over the life of the lease to $66 million. Virginia Commonwealth University will also pay a yet-undisclosed amount of rent to the EDA for its baseball team’s use of the new stadium.
The rents will be used to pay off $40 million in the lease revenue bonds financing infrastructure improvements for the first phase of the larger Diamond District development. The stadium is to be financed using $130 million in general obligation bonds, which are to be paid back using tax revenue generated by the overall development.
DiBella said the Squirrels’ lease is among the highest in Minor League Baseball and wouldn’t have been feasible without CarMax’s support.
“Our rent’s going up 16-fold. If we’re not the highest rent in all of minor league baseball, we’re one of the two or three (highest),” DiBella said.
“It’s almost a record-setting rent, and in order to do that, you need meaningful revenue to offset those expenses. Rent’s an enormous expense now – $3.2 million a year in the first 10 years. We needed a strong naming rights partner to help us make the commitment we needed to make to get the deal done.”
The stadium will include 20 suites and a corner “party suite” with views of the downtown skyline.
The lease with the city, which the parties signed two weeks ago after months of negotiations, allowed the Squirrels to sell the naming rights and retain revenue from it. “CarMax Park” builds on a sponsorship arrangement that CarMax has had with the Squirrels since 2016, according to a release, which said the company also supports several national and local sports leagues and teams.
The naming rights deal will give CarMax the ability to use the ballpark to host events, which Nash, the CEO, said would extend beyond the baseball season. While headquartered in Goochland, the company has a presence in Richmond that includes its Midtown Technology and Innovation Center at 2200 W. Broad St., just over a mile from the future CarMax Park.
“When you think about this new ballpark, it is really more than just a ballpark,” Nash said. “It’s going to be a phenomenal home to the Flying Squirrels, but it is also going to be home to music concerts, social events, partners being able to leverage it, so it’s really going to be used throughout the year, not just during baseball season.”
Also on hand for Wednesday’s event was Peter Woodfork, senior vice president of minor league operations and development for Major League Baseball, which oversees minor league venues. MLB required all pro baseball parks to meet new facility standards. CarMax Park is designed to meet those standards, which officials have said the decades-old Diamond cannot.
“Baseball’s future is bright in Richmond, due to the leadership and teamwork of this group,” Woodfork said, referring to the Squirrels, CarMax and the city.
“It’s a big step for us here at Major League Baseball to be in Richmond. We always wanted to be here, we knew it could happen, there were some peaks and valleys, but we can’t thank you all enough,” he said.
Mayor Levar Stoney addresses the crowd in front of City Council members and other Richmond officials.
Richmond Mayor Levar Stoney and the Squirrels’ Todd “Parney” Parnell acknowledged those peaks and valleys in their remarks, which noted the 15-year journey to get to this point since the Squirrels arrived in Richmond and were promised a new ballpark.
“After decades of inaction, we are finally here, and you can feel the energy. In Richmond, when we make a promise, we keep our promises,” Stoney said, to which DiBella heckled: “Some of you do.”
Laughing, Stoney added: “Fifteen years ago, the city made a promise to the Flying Squirrels, and now, fast forward to 2024, we are keeping our promise. With the 30-year lease and with CarMax’s partnership, I am proud to say that the Squirrels are here to stay.”
Todd “Parney” Parnell livens up the crowd with a round of towel-spinning during Wednesday’s event.
Added Parnell: “It has been a long journey. I think we’re all going to be better now having this new facility, but I don’t think we’d be as strong as we are now if we didn’t have to go through the last 15 years.”
The Squirrels and consultant Machete Group are handling design and development of the stadium, which is targeted for completion in time for the 2026 season. LaBella Associates is designing the stadium, and Gilbane Building Co. is the general contractor.
BizSense editor Michael Schwartz contributed to this report.
This should be very exciting for CarMax once the stadium is completed in 2034!
Oh, is that sarcasm?
How can you downvote a simple humorous observation?
Why would one downvote a question about downvoting? Do some of you do it’s just because you see a downvoting trend and you
Want to jump on the bandwagon. I hope at Carmax park they have a lemmingaid stand.
I guess they paid for the sponsorship by laying off 415 employees… got it.
Not sure why you got downvoted for that comment. It really does appear that way. I mean layoff 400+ people making around lets say $50k, well you just freed up $20 million dollars. That sure sounds like a multi-year naming rights deal to me… But I get it, people don’t care, they just want their baseball. And like Bill Nash said, This is an exciting time for Richmond and it’s people… well maybe not for the 400+ people who lost their jobs… But Yeah!
Down vote because this is a Right leaning, Pro business, Pro developer publication, I expected nothing less. I am glad you, like I ran the numbers and came to the same conclusion and would expect nothing less from a smuggler and leader in the Cardas organization.
I’m with you. I don’t like the optics of this. I am simultaneously thrilled that that the project is moving forward and perplexed that CarMax is the sponsor considering their numbers and decisions as of late.
I appreciate Carmax putting up the dough to help this become a reality but really? “Carmax Park”? The only people excited about corporate names for public spaces or fat pink CEOs. Couldn’t they have inserted their company name someplace in the signage but named the park after an actual human that might inspire other humans? A famous local athlete / baseball player who represents certain ideals perhaps? No one will ever be inspired by “Carmax Park”. Unless they are told to do so in a bulleted powerpoint slide explaining the “core company values”. Over a free pizza lunch, of course.
Sorry Bob, but this has literally been going on for almost 100 years across the globe (hint, Wrigley Field). Last I checked, dead athletes aren’t putting up $millions to have his name on a stadium. And besides, AA played Tennis….
Or named after a narcissistic rich guy… William Wrigley Jr. who just so happened to own a bubble gum company.
Heard. It sounds like what you’d name a dried-out little league field stuck in the barrens of Brandermill.
According to the supreme court, corporations are people.
What is a fat pink CEO? If the Richmond taxpayers were willing to put up the money perhaps, they could have named it Richmond Park. I guess the greedy stakeholders/stockholders of this company will foot the bill. Now go buy a car at Carmax. Ain’t capitalism great!
It’s an “easy” way to raise capital. What I am not sure of is the actual ROI for the money spent. It does not resonate as a goodwill/community-building gesture any longer. Personally, I find it annoying as the park name will change when the naming rights expire.
Of course, it is a community building gesture as the money could have been spent elsewhere. Altria Theatre is a good example of this. Capitalism is about taking risk because the ROI is unpredictable.
Capitalism is about taking educated risks. If I were in charge of the marketing budget at CarMax I would certainly be mindful of how this money is spent vs elsewhere. In this case, it does not resonate as goodwill as it comes on the heels of layoffs. I am still happy to see the Squirrels get the money.
Also, Altria Theater is a historic building. This is not an apples-to-apples comparison. Naming rights on ballpark stadiums are more of a commodity.
Educated risk or not ROI is unpredictable. There are very few sure bets in business or life, or they wouldn’t be called risk. I see this expenditure as coming from dollars budgeted to advertising. Will this be money better spent here or would TV/Internet ads be better? Which will bring the best returns? How many young, talented people enjoying Carmax Park will want to pursue a career at Carmax as an adult? When I was a kid, they used to have Pony Night at Parker Field. Merchants around town used to pass out free tickets and kids would dream of… Read more »
I can assure marketers are spending a lot of time ensuring their marketing dollars are put to the highest and best use. No one is just hoping for the best with millions of dollars. Someone did their research. I am simply curious.
I’ve been watching this “naming” debate with some humor of the past few days. It’s been a minute since anybody paid a nickel to cross the “Nickel Bridge,” but that name lives on. On the other hand, while many fondly remember and refer to it as “The Mosque,” “The Altria Theater” seems to have caught on. If I thought I could sell the naming rights to my dog, I’d be on my back porch screaming, “HERE, TOYOTA. Good boy” every darned morning.
They’re struggling with record-setting rent in Richmond, Virginia? Shocking! Sarcasm intended.
Details, details, details. Always lacking in facts just a press release is so Richmond. Serious irony that this is announced at the other major naming rights venue, now changed and renamed, development failure of the previous mayoral administration.
All the leases and naming rights payments are paying ofd the $40M in revenue bonds. City taxpayers will definitely be on the book for the $130 in general obligation bonds.
Do we really need continuous evidence that corporations own us?
owned by corporations because of a sports stadium naming rights deal? Perplexing.
George Carlin based an entire routine around this very topic back in the ’90s and in the very early ‘ought’s.
How about: “The Diamond @ CarMax Park”
How about Carmax Park at the Diamond?
Carmax park at the Diamond drive-thru district? I count 5 new drive thru’s, not exactly the urban Mecca that could have been there had our Mayor not put this on the back burner for Navy Hill and gambling oriented ‘economic development’.
Love it! Reminds me of what they did in Denver – “Invesco Field at Mile High” – instead of just going with the classic “Mile High Stadium”. I think the Chiefs have done the same thing – “Company name” (I can’t remember what it is) at Arrowhead. (Speaking of which, kickoff is in a few minutes I think…)
I’m so glad to hear that it’s going to be a multi-use facility! Looking forward to the opening!
Glad it is moving forward, but I will reserve my excitement until I see ticket prices. I’ve also never been a fan of watching concerts in baseball stadiums, so I’m only cautiously optimistic about the multi-use aspect.
I’m I the only one who finds it somewhat ironic that the words “car” and “park” are used (more or less) together in the stadium title?