Oakland city officials have advanced a controversial deal to sell the city's stake in the Coliseum complex, a move drawing criticism over transparency and financing terms. The agreement, which is set for a final City Council vote next week, involves seller-financing $60 million of the purchase price at a 5% interest rate for the stadium parcel.
The deal has been complicated by the buyer, an affiliate of African American Sports and Entertainment Group (AASEG), previously missing a key payment deadline. Documents obtained by The Post also reveal that a competing bid from the Oakland Arena's longtime operator was not prioritized.
The revised agreement for the 112-acre Coliseum complex, which the city jointly owns with Alameda County, comes as the venue has seen the departure of several major sports franchises. The Oakland Roots soccer club is also preparing to leave the stadium after its second season.
Deal Details and Criticisms
Under the amended agreement, the city would sell the roughly 9-acre Arena parcel for $50 million in cash. The remaining 103-acre stadium parcel would be seller-financed for $60 million. The city expects this restructuring to relieve it of ongoing ownership costs and generate new revenue from a 6% ticket surcharge. Proponents estimate this surcharge will bring at least $3 million annually into the city's general fund.
Critics have accused Mayor Barbara Lee and City Council members of continuing with a problematic deal. A former Oakland city official involved in development projects stated that the proposal demonstrates an "absolute abdication of leadership." Concerns have also been raised about the financing structure, with questions about why the city is restructuring the AASEG deal instead of reconsidering other proposals.
The deal's origins trace back to 2021 when the City Council authorized exclusive negotiations with AASEG. The sale was first approved under former Mayor Sheng Thao in June 2024, just weeks before federal agents raided her home as part of a corruption investigation. Thao, who has since been recalled and indicted on unrelated charges, has pleaded not guilty. Prosecutors have not alleged any wrongdoing connected to the Coliseum transaction.
Competing Proposal
Documents indicate that Legends Global, which has managed the Oakland Arena since 2012, submitted a proposal on June 16. This offer valued the arena and its site at $102.5 million, including cash and the assumption of deferred capital repair obligations. Legends also proposed a 10% share of future exterior digital advertising revenue and suggested it could complete due diligence rapidly due to its familiarity with the property.
As an alternative, Legends offered to extend its management agreement for five years and contribute $5 million toward capital improvements at both the Arena and Coliseum. Sean Reinhart, managing editor of Oakland Report, expressed skepticism about the city's continued pursuit of the AASEG deal, noting that Legends' proposal appeared reasonable and offered cash. A spokesperson for the City Administrator's Office stated that the city had exclusive negotiations with Oakland Acquisition Co., an AASEG affiliate, and that all interested parties were referred to that organization.