On Tuesday, Legends Global contacted Oakland and Alameda County, asking to purchase the Oakland Arena for $102.5 million. The company’s interest in the Arena is a surprising development that could further complicate an already intricate deal the city and county have been pursuing for several years to offload their interests in the massive East Oakland sports and entertainment properties.
Legends Global also said it would commit to giving a portion of its advertising revenue to the city and county if it’s picked to buy the Arena.
These developments were first reported by the San Francisco Chronicle.
Legends’ offer comes just weeks after Alameda County officials released a term sheet that outlined the next steps for the African American Sports and Entertainment Group, a private developer, to buy the entire 112-acre Coliseum site. As part of that deal, an unnamed third party would buy the Arena for at least $100 million. The Chronicle reported that the third party is Oak View Group, a firm founded by music mogul Irving Azoff. Oak View’s CEO recently met with Oakland councilmembers and community members, the paper reported.
Legends Global’s President Josh Kritzler said in a letter to the Oakland City Council and Alameda County Board of Supervisors that while others may have expressed interest in the Arena, no other prospective purchaser is better positioned operationally, financially, or as a community partner to acquire the arena.
“The decision before you, however, is not solely a financial one; it is about the long-term stewardship of a civic institution that has served this community for nearly 60 years,” Kritzler wrote. He added that if the timing isn’t right, his company is prepared to continue managing the arena and the Coliseum “under a long-term management agreement.”
Legends Global has managed the arena since 2012, according to the letter. The company noted that it navigated the departure of the Golden State Warriors’ NBA team and repositioned the arena as a pop music destination, booking performances by A-list artists like Olivia Rodrigo and Ariana Grande. Legends Global emphasized its role as a financially shrewd custodian: Since 2019, the arena has had 2.44 million attendees, generating over $30 million in direct gross sales taxes. The operating deficit of the arena fell 97% from 2019 to 2023. The company also employs scores of full-time workers and hundreds of part-time employees.
It’s unclear how city or county officials will handle the two proposals. Ray Bobbitt, co-founder of the AASEG, declined an interview request.
Per the term sheet signed last month, the county would buy back its half of the Coliseum complex from the A’s and then sell it to the AASEG for $115 million, thereby removing the sports franchise from the property. AASEG would then sell the Arena to a third party and pay the county $115 million in three installments over several years, adding interest each year on the unpaid balance.
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