© Kelley L Cox | 2018 May 31
An arbitrator has settled a dispute between the Golden State Warriors and Oracle Arena, ruling that the team must pay the remainder of a debt incurred in renovating Oracle Arena in 1996. The sum is estimated to be $40 million when the team leaves for San Francisco, according to the San Jose Mercury News.
The issue surrounded the language of the team’s 20-year lease agreement with the arena signed in 1996. The Warriors believed they’d be off the hook in paying for the remaining renovation debt once they are no longer tenants at the end of this season. The Coliseum authority officials said the team was still contractually obligated to cover the costs.
“This was an after-the-fact attempt by the Warriors to rewrite the parties’ deal, and it would have left the people of Oakland and Alameda County holding the bag,” said Daniel Purcell, a partner Keker, Van Nest & Peters, which represented the city and county. “We are grateful that the arbitrator saw it our way.”
Warriors PR spokesman Raymond Ridder said the team would issue a statement Monday. Since the contract was signed, the Warriors have paid $7.5 million annually towards the debt, which will sit at about $40 million remaining after this season.
“The Warriors committed to pay this debt. This money was spent to make specific renovations to meet the Warriors’ needs,” Coliseum Authority Executive Director Scott McKibben said. “We simply wanted them to honor the agreement, regardless of where they will be playing their home games in the future.
“We are pleased by today’s ruling and believe that it’s the Warriors, not the Oakland and Alameda County taxpayers who should repay this debt,” said Coliseum Authority Chair and Alameda County Supervisor Nate Miley.”
Though Oracle has no plans to add a longterm tenant after the Warriors leave, there are currently no plans to tear down the arena, which hosts concerts and other events.