Oakland Coliseum deal moves forward, with city poised to get a portion of ticket sales

Oakland City Council approved the sale of the city’s stake in the 112-acre Coliseum complex Monday for $125 million and an amendment that will give the city a percentage of ticket sales.

The Oakland City Council approved the sale of the city’s 50% stake in the 112-acre Coliseum complex Monday for $125 million and an amendment that will give the city a percentage of ticket sales.

The property will be acquired by the Oakland Acquisition Co., an entity formed by the African American Sports and Entertainment Group and its financier, Loop Capital. Negotiations with AASEG began in 2021, and the city had hoped to be receiving payments by last fall. This was the second amendment to the deal first authorized by the City Council on June 26, 2024. 

The revised plan calls for the city to receive 6% of annual gross ticket sales from events held at the complex. The city estimates that will add approximately $3 million annually to Oakland’s general fund. 

The council approved the amendment on a 6-1 vote, with Noel Gallo opposed and President Kevin Jenkins absent.

Mayor Barbara Lee praised the deal at a news conference before the council meeting, saying the investment was long overdue.

“It really paves the way to create jobs and economic development, economic activity specifically in underserved areas in East Oakland and Deep East Oakland,” Lee added.

The deal

The Coliseum complex contains two separate properties: a 9-acre parcel containing the Oakland Arena and a 103-acre parcel that includes the Coliseum and surrounding parking lots. Oakland and Alameda County own 50% each in the complex. 

Oakland Acquisition Co. will split the arena from the complex and sell it to a third party, Oak View Group, co-founded by entertainment mogul and former Ticketmaster CEO Irving Azoff. 

The city and AASEG envision a development that incorporates housing and retail space with sports and entertainment. Azoff highlighted Oak View’s success in renovating CFG Bank Arena in Baltimore as a model for redevelopment of Oakland Arena. 

“Oakland has always been one of America’s great music cities. The Oakland Arena is a building with real history and real soul,” Azoff said at the news conference. “We’re looking at the cost to see if we can bring this up to an acceptable fan experience so that we can put some shows in there.”

The deal provides for a $50 million lump sum cash payment to the city between September and the end of January. The city will receive an additional $60 million for the Coliseum and $15 million more once Oakland Acquisition Co. gets permits to start building on the site.

Oakland Acquisition made a deposit of $5 million on the stadium in 2024. The remaining $55 million owed will be divided into three equal installments. The first will be due within five years of the closing, and all payments have to be cleared before Jan. 30, 2034.

The city will still pay $16,438 per day for operating costs, but that will stop by the end of the year. The city expects to save $6 million annually on operating expenses after the closing. 

Brendan Moriarty, Oakland’s director of real estate and special projects, told the City Council that the deal has an added measure of a payment bond, so the city will get its money if Oakland Acquisition delays payments. If Oakland Acquisition fails to get the bond by January, the purchase price will increase by $100,000 per month. 

The community

The storied sports complex has hosted legendary Oakland teams, all of which have left the city in the past seven years. The Golden State Warriors moved their home to San Francisco in 2019, followed by the Raiders, who went to Las Vegas and will soon be joined there by the A’s. Recently, the Roots soccer team announced they will no longer play at the Coliseum.

“We get a bad rap for losing three sports teams,” Jenkins said. “We are making a transition into a music city, where acts of all kinds want to come and perform in our city.

City officials said $50 million from the arena sale will be applied to the city’s pension liabilities.  The remainder will go to the general fund. 

The deal comes with a community benefits agreement that will bring more resources to the surrounding East Oakland neighborhood. Benefits being discussed include workforce training, a living wage, parks and other public open space, transit accessibility, and anti-displacement and housing preservation measures. Jenkins said at-large Councilmember Rowena Brown will lead those negotiations. 

“We will be steadfast that East Oakland organizations will be at the helm of that table. Black-led organizations will be fighting to be at the head of that table,” Jenkins said. “This is our community.”

Councilmember Ken Houston, who represents District 7, which includes part of the Coliseum property, said he has made a “handshake deal” with Azoff about community benefits but did not provide specific terms. 

“This is a deal that was lemons that we turned into sweet lemonade,” Houston said. 

The timeline

Nov. 16, 2021: City Council authorizes the city administrator to enter into exclusive negotiations with African American Sports and Entertainment Group.

June 26, 2024: City Council authorizes a purchase and sale agreement with AASEG for $105 million, requiring at least $60 million to be paid before July 1, 2025.

Aug. 31, 2024: The city enters an agreement with Oakland Acquisition Co., which puts down a $5 million deposit.

Sept. 23, 2024: The city and OAC amend the agreement to increase the purchase price to $110 million and add $15 million in post-closing payments, bringing the total to $125 million.

May 6, 2025: The City Council removes the July 1, 2025, payment deadline to allow for a simultaneous closing with the county’s sale of its interest.

July 13, 2026: The City Council approves an amended sale agreement with new terms. 

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With cheers and tears, fans say goodbye to the A’s and the Coliseum: “I have so many memories here’