Oakland and San Jose have launched a "high-price" bidding
war over who will get the Warriors -- "with opening offers
running as high as $20M," according to story first reported in
Friday's SAN FRANCISCO CHRONICLE. Sources say reps from Oakland,
Alameda County and the Oakland-Alameda Coliseum Commission on
Wednesday presented the team with a roughly $20M offer that would
"pave the way for a new, privately financed arena." Other
sources say San Jose has offered the Warriors an "up-front"
relocation fee in excess of $20M in exchange for a long-term
commitment at the San Jose Arena. Said to be in the Oakland
offer: Between $6-8M in preconstruction arena costs, including
architectural and legal fees, and free land, worth "several"
million dollars (The new arena would be built on the parking lot
next to the existing arena). In exchange, the Warriors would
finance construction of a new 21,000-seat arena at an estimated
cost of $140M (Matier & Ross, SAN FRANCISCO CHRONICLE, 9/22).
SAN JOSE'S OFFER: The Warriors would get the revenue from
San Jose Arena's luxury suites on basketball game days, according
to the MERCURY NEWS' Herhold & Akizuki, and aside from the
relocation payment of more than $20M, sources say the deal would
also involve "additional city money" for improvements. The
"potential advantage" for Oakland is control of the revenue from
basketball and all other events. The Sharks control most
revenues from San Jose Arena. Sources say the "biggest question
mark" for Warriors Owner Chris Cohan is "how he approaches the
deal." Those close to him describe it as a "contest between his
ideas of prestige -- which dictate San Francisco first and
Oakland second -- and his pocketbook, which might favor San Jose"
(SAN JOSE MERCURY NEWS, 9/23). San Francisco officials say they
are moving ahead with their planned 13-18,000 seat arena project
in Rincon Hill (Matier & Ross, S.F. CHRONICLE, 9/25).
