SBD/30/Facilities Venues

MORE WOES BY THE BAY: WARRIORS' ARENA COULD FALL $20M SHORT

          Revenues from the Warriors' renovated arena "could fall
     more than" $20M short of the "amount needed to cover annual
     bond payments and arena expenses during the next 10 years,"
     according to a report prepared for the Oakland-Alameda
     County Coliseum Authority and cited by Renee Koury of the
     SAN JOSE MERCURY NEWS.  The issue of whether the team or the
     city and county "should cover any financial gap" in the
     $140M Warriors deal "has become a sticking point in the
     negotiations for a contract giving" team Owner Chris Cohan's
     Warriors Arena Management (WAM) control of the arena.  The
     contract proposal "was pulled at the last minute from the
     Coliseum authority's agenda Thursday."  Under a proposed 30-
     year deal, WAM would run the arena and pay bond debt on the
     renovated facility.  But Oakland City Manager Robert Bobb
     said that because WAM is "separate from the team and worth
     just" $500,000, the city and county would have "little
     recourse if it failed to pay" the arena bills.  Team General
     Counsel Robin Baggett said the team "may voluntarily cover a
     shortfall, but we will not guarantee it contractually." 
     Some Oakland city execs "are insisting the Warriors
     management agreement should protect the public" from
     covering the shortfall.  The report said that the city and
     county "are better off letting the Warriors run the Arena,
     projecting deficits" of $30M-$34M over 10 years if the
     Coliseum manages the arena itself (MERCURY NEWS, 1/30).

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