Oakland set to offer $97M Coliseum lease extension to A’s
Tuesday’s meeting between the A’s and Oakland officials is shaping up to be a key moment in deciding whether the team will stay at the Coliseum beyond 2024. Oakland officials are set to offer a five-year, $97 million extension of the team's lease at the Coliseum, with an opt-out after three years. The proposal, obtained by ESPN and ABC7, would require the A's to pay the full amount even if they leave. This is a significant difference from what the city is asking for, a two-year deal worth $17 million. The A's' $67 million annual revenue from their deal to broadcast games on NBC Sports California is also a significant incentive for them to stay in Oakland. Oakland also plans to ask MLB for a year-long exclusive window to negotiate for an expansion team if the league does add franchises.
Publié : il y a 2 mois par Michael Nowels The Mercury News dans Finance
Tuesday’s meeting between the A’s and Oakland officials is shaping up to be a key moment in deciding whether the team will stay at the Coliseum beyond 2024.
City officials plan to propose a five-year, $97 million extension of the team’s lease with an opt-out after three years, according to documents obtained by ESPN and ABC7. Even if the team leaves after three years, the city’s proposal would require the A’s to pay the full amount.
That creates a significant gulf between what the city is asking and what the A’s have offered — a two-year deal worth $17 million, according to ESPN’s report, which stated that the current lease is $1.5 million per year. If they stay the full five years, the annual cost would be $19.4 million; if they opt out, it would be $32.3 million.
A major incentive for the A’s to stay in Oakland is the reported $67 million in annual revenue from the team’s deal to broadcast games on NBC Sports California. If the team were to leave for Sacramento, one of two cities it has targeted outside of Oakland and Las Vegas, it could potentially continue broadcasting games on that channel for at least a portion of that deal.
This week’s meeting will be the third in a series of discussions since the sides began extension talks in February.
The opt-out after three years would align with the A’s targeted date of opening their proposed stadium on the Las Vegas Strip in time for the 2028 season, though the Tropicana still sits on that site. The casino is set to close Tuesday as organizers begin preparing to demolish it, but the team still could be delayed by legal challenges to the $380 million in public funding earmarked for the stadium, which would be MLB’s smallest.
Oakland also asks that the A’s sell their 50% share of the Coliseum as part of the deal. Additionally, the city plans to ask MLB to commit to a year-long exclusive window to negotiate for an expansion team if and when the league does add franchises or a vote to leave the A’s brand in Oakland. A third alternative, per ESPN, would be to facilitate the team’s sale to a local buyer, but Fisher has said repeatedly that he does not plan to sell the A’s, despite fans’ protests.
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