The 18,000 seat all-electric Intuit Dome for the National Basketball Association team is scheduled to open in 2024.
Terms weren't disclosed, but CNBC reported that the deal is a 23-year agreement valued at north of $500 million.
For comparison, Chase Bank (JPM) - Get JPMorgan Chase & Co. (JPM) Report has a 20-year $300 million naming-rights deal with the Golden State Warriors, and the Staples Center across town in downtown Los Angeles is named as part of a $100 million contract Staples paid to AEG in 1999.
The Clippers and the Los Angeles Lakers have shared the Staples Center since 1999.
“This stadium is about being optimistic about our team,” Ballmer told CNBC.
The new arena will feature four courtside cabanas directly behind the courtside baseline and 10 backstage bungalows -- private suites -- on the floor level.
Ballmer financed the building of the stadium himself, paying more than $1 billion for construction and $66.2 million for the land.
He also paid $400 million to purchase the Forum in Inglewood from Madison Square Garden (MSGS) - Get Madison Square Garden Sports Report last year. The Forum was formerly the home of the Lakers, the National Hockey League's Los Angeles Kings and the Women's National Basketball Association's Los Angeles Sparks.
The Intuit Dome is expected to generate about $260 million in annual economic activity for the city, with over 7,000 full-time and part-time jobs.
The groundbreaking for the facility is scheduled today.