It won’t be cheap for the Golden State Warriors (NBA) to leave Oracle Arena, as rent for the 2017-2018 and 2018-2019 seasons will go up 67%, or $1 million per year, under the terms of a two-year lease.
The Warriors will pay $2.5 million annually in Oracle Arena rent on the basic lease for the next two seasons, in addition to the $7.5 million paid annually to pay down renovation debt. In addition, the team could be on the hook for more — up to $2.5 million — depending on when the lease ends in future years. The team is currently working on a new downtown San Francisco arena, Chase Center. From SFGate:
“This is an exhilarating time in the history of our franchise and we’re pleased to have reached an agreement in principle that will enable the Warriors to continue to play in Oracle Arena for the next two seasons. … The increase in rent is simply a part of doing business and, at the end of the day, it’s a win-win for everyone — the Warriors, the (Coliseum Authority), the City and the County,” Warriors President Rick Welts said in a statement.
Council President Larry Reid, vice chair of the Coliseum Authority, said that some city and county officials initially had concerns about the lease extension but that those problems have since been eliminated.
The Warriors, he said, are “just waiting for the public entities to take action. They’re waiting on us to get this thing done.”
It doesn’t sound like there was too much drama in the negotiations regarding the Oracle Arena rent, despite the hike.