Oakland Athletics Reach $125M Deal
The Oakland Athletics have entered into a tentative agreement to sell their portion of the Coliseum to the African American Sports and Entertainment Group (AASEG) for $125 million. This significant transaction marks a pivotal moment in the redevelopment of the Oakland Coliseum site, promising a future of dynamic transformation and revitalization for the area.
Unlocking Development Potential
“This really gives us a chance to get into the details of exactly how this development will work,” said Ray Bobbitt, the founder and manager of AASEG. “This unlocks the opportunity to move development forward sooner.”
AASEG recently purchased the City of Oakland’s half for $105 million. That money will be used to help Oakland balance a tight budget, but AASEG says full control of the land allows them to proceed with a master plan of changing the entire region.
Most Developable Site
“We think this is the most developable site in the country,” Bobbitt said. “It has access to all mass transit. Obviously, this site has had an undivided interest for so long and hasn’t been owned by one entity since its existence.”
Initial Plans
Bobbitt says the first plan is to keep the arena and build around it. He envisions the area looking like Crypto.com Arena, formerly known as the Staples Center, in Los Angeles.
“You might start with the arena and say the arena could be a centerpiece to what they call sports and entertainment tourism like you have in L.A. Live,” Bobbitt said. “The Staples Center is the center point and you have the restaurants around it.”
Further Development
He also mentioned the area could develop new housing and other entertainment centers. Since the deal is still pending county approval, Bobbitt did not share a timetable for when a project could start.
Concerns from the Oakland Police Officers Association
Not everyone is thrilled with this transaction. The Oakland Police Officers Association (OPOA) is concerned over how the A’s got more money than the city.
“I don’t recall ever seeing the city come out and say what the value of the property is,” said Huy Nguyen, with Oakland POA. “That is another concern to me that the A’s were able to sell for $125 million and the city sold it for $105 million.”
Reason for Price Difference
Bobbitt says the reason for the difference is because they had to account for what the A’s already invested into the site.
“The reason why it was different was not because of a fundamental difference between each side better than the other,” Bobbitt said. “It was just having to take into consideration what the A’s had already put in.”
Long-Term Solutions
Nguyen hopes the city doesn’t make a habit of selling off important assets to balance a budget.
“We have to stop selling our assets to fix temporary problems,” he said. “We have to see how to fix this for the long term, not this year or next year but five years from now.”
A Black-Owned Group
AASEG is a Black-owned group consisting of mostly Oakland natives. Bobbitt is thrilled for what he can do for the city.
“It is very hard to be anything but excited about this from a regional perspective and a cultural and historical perspective,” he said.
KaranRathod