Oakland leaders vote to sell city's 50% ownership stake in Coliseum complex

OAKLAND, Calif. (KGO) -- Oakland city leaders on Monday approved a proposal to sell the city's 50% ownership stake in the Oakland Coliseum complex, a deal supporters say could bring new economic opportunities and development to the city.

The proposal follows years of negotiations surrounding the future of the 112-acre Coliseum complex. In 2024, Oakland agreed to sell its half of the property to the Oakland Acquisition Company, or OAC, an affiliate of the Oakland-based African American Sports and Entertainment Group.

"I am looking forward to this deal to pave a new pathway for Oakland," said Oakland City Council Member Janani Ramachandran.

Oakland Mayor Barbara Lee supports the deal and spoke Monday morning before the vote.

"This deal is so important in many, many ways," Mayor Lee said. "It really paves the way to create jobs and economic development, economic activity. Specfically in underserved areas in east Oakland and deep east Oakland."

Now that there's approval, the city will sell its ownership stake to OAC for a lump-sum payment of $110 million -- $50 million for the arena and $60 million for the stadium -- along with 6% of future ticket sales from events held at the complex. The city will also receive an additional $15 million as OAC obtains building permits for new construction.

MORE: Alameda Co. votes unanimously to move forward with sale of its ownership of Oakland Coliseum

Ramachandran said the benefits could extend beyond the Coliseum site itself.

"I'm excited for this new deal to not just be confined within benefits for the border of the coliseum complex but actually extend into east Oakland that has long been forgotten," she said.

The sale has faced several delays, including a lawsuit against Alameda County related to concerns about environmental cleanup at the site and affordable housing issues. That lawsuit has since been dropped.

The proposal also includes plans involving entertainment and event operations at the arena.

MORE: Oakland Coliseum purchase deal revised to raise price, speed up payments, mayor says

Irving Azoff, co-founder of Oak View Group, released a statement expressing support for the project.

"We are honored to have the opportunity to become stewards of this iconic arena and build upon its remarkable legacy. I look forward to once again bringing the very best artists and events to Oakland and ensuring that the venue remains a source of pride for the community for generations to come," Azoff said.

Ramachandran said the agreement could create new revenue streams and strengthen Oakland's cultural and entertainment industries.

"Revenue sharing from tickets sold, job creation, and a pathway for our incredible cultural scene to really have opportunities and thrive. As you prob know I'm a long time performing artist so I know the value of having real investment into the arts and into the industry. I can't wait to see al the great things this has for Oakland. It's helping the financial situation but also the growth of the entire city," she said.

"For the entire city, I think this can bring immense economic benefits. We will once again be respected as a world-class destination for the arts, for entertainment. We can double or triple the number of performances we have at the arena," Ramachandran added.

She also pointed to savings the city could realize by no longer operating the complex.

"We spend over $6 million a year of our general purpose fund money keeping operations open," Ramachandran said. "By selling the complex in that entire lump sum, we get rid of that financial burden as well."