Sale agreement OK’d by City Council may yield millions of dollars for immediate use plus 6% of future ticket sales
The Oakland City Council has approved a restructured $125 million agreement to sell the city’s remaining 50% stake in the Oakland-Alameda County Coliseum complex, marking a major step forward in long-term redevelopment plans for the historic site.
The deal transfers ownership to the African American Sports and Entertainment Group (AASEG) and its affiliate, Oakland Acquisition Company (OAC), and establishes a new strategic partnership with entertainment executive Irving Azoff’s Oak View Group (OVG). City officials described the agreement as a forward-looking move that balances immediate financial relief with long-term economic opportunity.
Azoff, co-founder of OVG and a legendary figure in the global music and entertainment industries – joined Council President Kevin Jenkins, Councilmember Janani Ramachandran and Mayor Barbara Lee to announce City Council’s vote this week on the city’s agreement to sell the Oakland Coliseum.
The resolution, which passed 6-1 at the Monday council meeting, authorized the sale of Oakland’s 50% stake in the complex for a lump sum of $110 million plus 6% of all future annual gross ticket sales from events held at the redeveloped complex. Councilmember Noel Gallo cast the lone dissenting vote, citing concerns about his clarity on the position of Alameda County.
The city will receive an additional $15 million ‘payment bonus’ as OAC obtains building permits for new construction, marking a major step forward in long-term redevelopment plans for the historic site.
The provision is designed to incentivize timely progress while aligning the city’s financial interests with project advancement.
Azoff is looking forward to bringing more music to Oakland. “Oakland is one of America’s great music cities – I spent some very special times earlier in my career working with Bill Graham on Day on the Green, and I have many fond memories of those days,” said Azoff. “We are honored to have the opportunity to become stewards of this iconic arena and build upon its
remarkable legacy. I look forward to once again bringing the very best artists
and events to Oakland and ensuring that the venue remains a source of pride for
the community for generations to come.”
“By approving this deal, we will ensure that the Coliseum complex is in the hands of dedicated professionals who will be committed to transforming this space into a world-class entertainment destination,” said Jenkins. “This will mean hundreds of new shows and events in Oakland annually, which will bring significant revenue into the city.”
Councilmember Carroll Fife (D-3) expressed appreciation for AASEG’s role in advancing a plan with community benefits. “With such a valuable asset underutilized for years, I’m glad to see the Coliseum positioned to serve an underserved and underdeveloped part of the city,” Fife said.
“This deal paves the pathway for a powerful economic revitalization in Oakland,” added Ramachandran. “I am excited for the new terms of the deal and additional stakeholders involved – including entertainment legend Irving Azoff. Not only does finalizing this deal save Oakland money and provide a significant one-time cash infusion but will also create a sustainable revenue stream that will help fund City services and uplift our economy.”
“My bottom line is always what’s best for Oaklanders and the City’s ability to serve them well — and this proposal is a step forward,” said Lee. “This deal will pave the way towards creating jobs and economic opportunities, specifically for east and deep east Oaklanders. Thank you to the city negotiating team for their hard work to bring this proposal forward.”
AASEG has emphasized its commitment to community-centered development, with plans that include entertainment venues, housing, and commercial space to revitalize East Oakland. The involvement of OVG, known for its work on major sports and entertainment projects nationwide, adds industry expertise and credibility to the effort.
AASEG President Ray Bobbitt called the agreement “a great win for East Oakland” that will benefit the entire city.
The restructured deal could also release the city from its long-standing financial obligations tied to the Coliseum by January 2027. Oakland has historically subsidized the complex, which has operated at a loss of approximately $6 million annually.
The deal includes:
- Initial Cash Sale (Arena Parcel): The city will sell the Arena parcel to OAC, receiving $50 million by early 2027.
- Subsequent Sale (Stadium Parcel): The Stadium parcel will be sold for $60 million, which includes a credit for the $5 million deposit already held by the city.
- Ongoing Revenue Stream: The city will receive 6% of annual gross ticket sales from all events at both the Arena and Stadium, a new ongoing income stream to Oakland’s General Purpose Fund.
- Financial Terms: Payments will be made to the city on a prescribed schedule without lending any funds to OAC, and the city will be immediately relieved of significant financial liabilities associated with ownership and operations.
Additional information on the project is available at www.oaklandca.gov/Government/Departments/City-Administrator/Oakland-Coliseum-Redevelopment-Project?
The post Oakland Celebrates $125 Million Coliseum Sale appeared first on BlackPressUSA.
