The 20-year contract will result in the renaming of Philips Arena to State Farm Arena.
According to WSB's Zach Klein initially reported the news:
Zach Klein @ZachKleinWSB
Breaking: Multiple NBA League sources tell me Hawks have a new naming rights deal - Have signed a 20-year-deal with State Farm to play at State Farm Arena - They played at Philips Arena since 1999 - State Farm Arena is undergoing $192-million renovation https://t.co/E6gb1Gh5zk
Klein noted the soon-to-be State Farm Arena is undergoing $192 million in renovations.
Philips Arena officially opened in 1999 after the Hawks spent 25 years playing at the Omni Coliseum, which has since been demolished.
While waiting for Philips Arena to be completed, the Hawks spent two seasons alternating between the Georgia Dome and Alexander Memorial Coliseum.
Renovations on State Farm Arena are expected to be completed in time for the start of the 2018-19 season.
Several unique additions were announced last year, including a barbershop with a view of the court, golf simulators and a courtside bar.
The Hawks are coming off their worst record since 2004-05, as they went 24-58 last season after tearing down the their roster.
Prior to that, Atlanta had reached the playoffs 10 consecutive times.
The Hawks are expected to struggle again in 2018-19, but due to the developments regarding the arena and the arrival of rookie guard Trae Young, there is a notable buzz surrounding the organization.