SBD/June 18, 2012/Facilities

O.co Authority Tables Management Contract Vote Over Poaching Concerns

One commissioner wants AEG to state that it will not try to lure teams out of Oakland
Bowing to the “potential ire of local sports fans, Coliseum Joint Powers Authority commissioners delayed voting on a management contract with Anschutz Entertainment Group over a provision to prevent the company from poaching the Raiders or Warriors,” according to Angela Woodall of the OAKLAND TRIBUNE. The commissioners were “expected to accept the five-year contract with AEG to manage day-to-day operations at the publicly owned O.co Coliseum and Oracle Arena.” But during the regular meeting Friday, the Coliseum authority “once again tabled the vote, this time postponing its decision until a special meeting” today. Suspicion among some fans is “still strong that AEG will sabotage Oakland by working with San Francisco to move the Warriors across the Bay or try to woo the Raiders to Los Angeles, where an arm of AEG is developing a stadium and needs a team to play in it.” The Warriors have already announced plans to relocate to San Francisco, but some groups are "holding out hope of keeping the team in Oakland." Commissioner Chris Dobbins wanted a “clear statement included in the contract that AEG would not try to lure the teams out of O.co Coliseum." But Authority Counsel Deena McClain said that the JPA “cannot block AEG or one of its affiliates from competing for one of the teams because of anti-trust laws.” The contract “allows the Coliseum authority to terminate the contract and keep millions of dollars AEG has pledged, including a $1 million signing bonus, $3.5 million sweetener and incentive fees.” The provision “kicks in if AEG enters into an agreement with the Raiders, Warriors or A's to relocate” (OAKLAND TRIBUNE, 6/16).
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