The Oakland Coliseum will soon have a new owner.
Oakland A’s affiliate Coliseum Way Partners (CWP) has agreed to sell its interest in the property to the African American Sports and Entertainment Group (AASEG) to the tune of $125 million.
This announcement came just days after the group had agreed to purchase the other half of the stadium complex from the city.
“AASEG has a community-oriented vision for the long-term development of the site and will be strong stewards of the property,” A’s President Dave Kaval said in a statement. “Their leadership and development will provide substantial opportunities and benefits for East Oakland and the broader Oakland community.”
As Kaval said, this is quite the opportunity for the Oakland area. While it’s upsetting to see the baseball team leave, it might not be a bad thing for the community, since the AASEG has big plans for the space.
Details on the AASEG’s Coliseum purchase plans
The Alameda County Board of Supervisors still must approve the CWP’s sale of its stake in the Coliseum.
Under the other half of the deal, the AASEG will pay the city of Oakland a $5 million deposit after the agreement is officially completed. That deal comes out to $105 million, bringing the purchase price of the entire facility to $230 million.
The AASEG must make its first payment of $10 million to the city by Sept. 1. The subsequent payments will continue to increase, from $15 million by Nov. 1 to $33 million by Jan. 15, 2025, and so on until the final payment of $42 million, which is due on June 30, 2026.
The most crucial of these payments is the first one, due in September. In July, the Oakland City Council approved a $2.2 billion budget. However, if the city does not receive that first payment on time, the council will have to cut $63 million from the budget, affecting law enforcement and emergency responders such as firefighters.
It doesn’t appear that there’s any question of whether the first payment will go through, though. “They have the funds,” said Oakland Mayor Sheng Thao.
What plans does the AASEG have for the area?
Ray Bobbitt, the AASEG’s founder, said this deal has been in the works for years. It means a lot not only for him but also for the other stakeholders on his team, who all boast Oakland ties.
“We recognize that while this is a tremendous opportunity, it is above all a profound responsibility,” Bobbitt said. “We graciously accept this responsibility and look forward to working with the community on this generationally transformational endeavor.”
According to The Oaklandside, Bobbitt said this could be the largest development in the history of Oakland. The AASEG previously outlined plans that could cost $5 billion.
Those plans include housing — 25% of which would be affordable — shops and a convention center. The AASEG says it will also create a community benefits plan that details labor agreements, workforce training, and efforts to avoid residential displacement during construction.
It’s worth noting that the AASEG has been wanting a WNBA team to come to Oakland. When the league announced expansion plans last year, San Francisco landed a team. At that time, Bobbitt told the SF Gate that Oakland remains a candidate for future expansion plans. However, reports from The Athletic and The San Francisco Chronicle say that isn’t true.
But even if the WNBA doesn’t come to Oakland, that doesn’t mean these plans are for nothing. For example, there are talks of creating an entertainment space to host Disney shows or big-time singers.
Taking the glass-half-full approach, this stadium sale may be just what the community needs. This sort of investment wasn’t going to come from the A’s, and having homegrown leadership in control of the project gives area residents a voice.
How does this affect the A’s plans to build a stadium in Las Vegas?
The $125 million from the Coliseum sale will certainly help, but it doesn’t foot the entire bill for a new A’s ballpark.
Owner John Fisher hasn’t been mum about his desire to move the team to Las Vegas. And he hasn’t shied away from sharing how much it will cost. Plans for the Las Vegas ballpark total $1.5 billion, $850 million of which is expected to come from an equity investment.
However, according to the Nevada Independent, JMP Securities analyst Mitch Germain said private financing “may have hit a roadblock.”
MLB approved the team’s relocation to Las Vegas after this season. But a significant shortfall or delay in funding might lead to the A’s putting those plans on hold. And that means there’s a chance the team could wind up in Sacramento, where it will be based in the interim, for several seasons.
It’s sad how things have played out for the A’s. Fans in Oakland love the team, but Fisher’s decisions in recent years seem to have soured things.
The A’s have the lowest payroll in the MLB this season, clocking in at $47,275,000. For comparison, the next-lowest team, the Pittsburgh Pirates, spends almost $30 million more than the A’s on payroll.
Fans have called for Fisher to sell the team, but he said he has no plans to do so.
“I’ve now owned the team with my partner Lew Wolff since 2005,” he told the Las Vegas Review-Journal. “Our goal since then has been to find a new home and build a new home for our team.”
Whether they end up in Sacramento for longer than anticipated or make the leap to Las Vegas as scheduled, it doesn’t change that the A’s aren’t sticking around in Oakland.
However, this move could be a huge boost for the community, especially with leadership willing to invest in the project.
