Warriors Reiterate Stance On Leftover Debt At Oracle Arena
The Warriors in a letter to Oakland City Council last month reiterated that they "should not pay leftover debt at Oracle Arena" once they leave for Chase Center in '19, according to David Debolt of the EAST BAY TIMES. The Warriors’ argument is that the bonds to renovate the Oakland arena "were to be paid over 30 years, while at the same time the team signed a 20-year lease with the Coliseum joint powers authority and agreed to make annual payments to reduce the debt in those years." Warriors President & COO Rick Welts wrote the letter in response to Oakland Councilmember Rebecca Kaplan’s "demand last month that the Warriors pay whatever is left when the team departs," estimated to be $40M. Oracle Arena underwent about $100M worth of renovations in '96, including "redesigning the arena’s interior and adding more seats and luxury suites." The debt at the publicly owned arena, overseen by the Oakland-Alameda County Coliseum Authority, currently is approximately $55M. As part of their license agreement the Warriors have paid some $7M a year "toward the debt." Both sides will "argue their case in front of an arbitrator in July" (EAST BAY TIMES, 3/13).