The name "Amway Arena" won an official nod of approval from the Orlando City Council today.
Commissioners voted unanimously to accept the naming-rights agreement negotiated between the Orlando Magic and Amway Corp that renames the building formerly known as the TD Waterhouse Center.
The city owns the arena but gave the Magic control over naming-rights when the team renewed its lease in 1998. The 17-year-old building was known as the Orlando Arena when it was built but was named after the brokerage firm until the recent expiration of its naming-rights agreement. The city renamed the building The Arena after dropping the TD Waterhouse name, but it didn't stay that way for long.
Amway, which was co-founded by billionaire Magic owner Rich DeVos in 1959, will pay the city $1.5 million for the four-year deal, or $375,000 a year.
TD Waterhouse paid about $1.7 million a year, but the Magic kept most of the money. In 2005, the city's share was $466,100.
While the city will earn less under the new deal, the old agreement came with strings: The city had to spend a portion of its share on improvements to the arena. In 2005, the city collected $303,000 after those expenses.
The new agreement does not dictate what the city can do with the money, so its net income is greater, city officials said.
Amway also will have the initial exclusive opportunity to negotiate a naming-rights agreement for the proposed new arena, which if approved by city and county officials could open in 2010