Post by TheShadow on Jun 18, 2012 18:52:25 GMT -5
www.insidebayarea.com
By Angela Woodall
Contra Costa Times
After weeks of negotiating the Anschutz Entertainment Group won approval of a five-year contract to operate the O.co Coliseum.
The agreement is worth several millions to the Coliseum's bottom line. And there are great hopes fostered by AEG among the Coliseum authority and community stakeholders that the Los Angeles-based entertainment venue giant will bring with it a renaissance to the graying facility and more jobs and dollars to Oakland.
AEG stands to make at least $3 million a year and -- more importantly -- expand its West Coast market share.
The only catch to the win-win scenario comes from unresolved fears that AEG will try to poach the Warriors or Raiders. The issue held up final approval of the contract for weeks until Monday morning during a special meeting.
The contract approved Monday by a 7-1 vote includes provisions that would severely limit AEG from wooing any team as long as it is within 50 miles within Oakland. But there is nothing to keep the company from luring away the Warriors, Raiders or A's outside that boundary. Antitrust laws prevent an outright ban.
The recent presence of Raiders CEO Amy Trask at a forum in Los Angeles fed fears that AEG would try to lure the Raiders to the stadium AEG is building in Los Angeles.
The Raiders would prefer to stay in Oakland but want a new facility. The Warriors have already announced they would move to San Francisco.
"Is it AEG's intention to try to poach our teams," asked Authority Commissioner Nate Miley.
"Absolutely not," replied AEG's facility chief Chris Wright. He worked for SMG at the Coliseum for several years before being hired by AEG. He will take over as general manager temporarily and possibly permanently, Wright said after the meeting.
Wright said AEG intends to make the Coliseum a place where the teams want to stay, he said, as reflected in the contract.
Commissioner Chris Dobbins, who cofounded Save Oakland Sports, still had misgiving although he said he also was optimistic about AEG's performance. A lot of the fans view the Coliseum authority as a buffer, he said, adding that he hoped commissioners would not end up regretting their decision.
Nevertheless, Commissioner Ignacio De La Fuente was the lone "no" vote.
AEG would have to pay back the Coliseum at least $6 million if they poached the Raiders, Warriors or A's.
AEG will take over officially July 1. But incumbent operator SMG will stay on temporarily to assist with the transition. Current employees will be kept on for six months. The authority would have to refund a chunk of the $3.5 million capital contribution sweetener if it does not extend the contract for another five years when it expires in 2017. A competitor, however, could absorb that amount with a similar payment.
By Angela Woodall
Contra Costa Times
After weeks of negotiating the Anschutz Entertainment Group won approval of a five-year contract to operate the O.co Coliseum.
The agreement is worth several millions to the Coliseum's bottom line. And there are great hopes fostered by AEG among the Coliseum authority and community stakeholders that the Los Angeles-based entertainment venue giant will bring with it a renaissance to the graying facility and more jobs and dollars to Oakland.
AEG stands to make at least $3 million a year and -- more importantly -- expand its West Coast market share.
The only catch to the win-win scenario comes from unresolved fears that AEG will try to poach the Warriors or Raiders. The issue held up final approval of the contract for weeks until Monday morning during a special meeting.
The contract approved Monday by a 7-1 vote includes provisions that would severely limit AEG from wooing any team as long as it is within 50 miles within Oakland. But there is nothing to keep the company from luring away the Warriors, Raiders or A's outside that boundary. Antitrust laws prevent an outright ban.
The recent presence of Raiders CEO Amy Trask at a forum in Los Angeles fed fears that AEG would try to lure the Raiders to the stadium AEG is building in Los Angeles.
The Raiders would prefer to stay in Oakland but want a new facility. The Warriors have already announced they would move to San Francisco.
"Is it AEG's intention to try to poach our teams," asked Authority Commissioner Nate Miley.
"Absolutely not," replied AEG's facility chief Chris Wright. He worked for SMG at the Coliseum for several years before being hired by AEG. He will take over as general manager temporarily and possibly permanently, Wright said after the meeting.
Wright said AEG intends to make the Coliseum a place where the teams want to stay, he said, as reflected in the contract.
Commissioner Chris Dobbins, who cofounded Save Oakland Sports, still had misgiving although he said he also was optimistic about AEG's performance. A lot of the fans view the Coliseum authority as a buffer, he said, adding that he hoped commissioners would not end up regretting their decision.
Nevertheless, Commissioner Ignacio De La Fuente was the lone "no" vote.
AEG would have to pay back the Coliseum at least $6 million if they poached the Raiders, Warriors or A's.
AEG will take over officially July 1. But incumbent operator SMG will stay on temporarily to assist with the transition. Current employees will be kept on for six months. The authority would have to refund a chunk of the $3.5 million capital contribution sweetener if it does not extend the contract for another five years when it expires in 2017. A competitor, however, could absorb that amount with a similar payment.