The Warriors and San Jose "have all but completed
negotiations that could move the NBA franchise into the San Jose
Arena next year," according to this morning's SAN FRANCISCO
CHRONICLE. But today's SAN JOSE MERCURY NEWS focuses on the
Warriors' bid for a "Raiders-style financial deal" for a $140M,
publicly financed Oakland arena.
DO THEY KNOW THE WAY TO SAN JOSE? Mark Simon reports the
only thing holding up a deal in San Jose is negotiation with the
Sharks over revenues to each team and operation of the Arena.
One source close to the talks: "The city and the Warriors pretty
much have an agreement in place and the Sharks and Warriors are
very close." The Sharks are managing tenants of the Arena,
paying rent to the city and booking all events in the 19,000-seat
facility. One official notes, legally, the Sharks have "final
say" on who can move into the Arena. In addition to splits on
suite and box sales, parking, concessions and advertising, the
Sharks want compensation for giving up their "exclusive hold on
the San Jose major league sports market," and for the 40-45 dates
they could book at the Arena. The deal between the city and the
Warriors is a 10-year, $43M package -- $8M in improvements to the
Arena and Civic Auditorium, where the team will practice, and a
$35M relocation fee. Money would come from city redevelopment
funds and a hotel tax. The city would get more than $19M back in
rent and other income from the Warriors over the 10 years (S.F.
CHRONICLE, 10/19).
EASY BAY POWER PLAY: Following the team's Tuesday offer
that the city of Oakland and Alameda County assume more risk in
the form of bonds to pay for a new arena to be paid off through
PSLs, Warriors General Counsel Robin Baggett said that leasing a
new arena from the Coliseum "may be the easiest deal economically
to get done" in Oakland. Baggett insisted the team was not
fueling a "bidding war" between the two cities. Oakland City
Councilman Ignacio De La Fuente said a publicly financed arena is
"in the realm of possibility," but City Manager Craig Kocian said
they would not retain the Warriors "at any cost." County Board
of Supervisors President Gail Steele: "I have my concerns
because my ear is still ringing from criticism of the Raiders
deal" (Azizuki & Ostrom, S.J. MERCURY NEWS, 10/19).
