Real Estate

Oakland Sells Coliseum Stake for $105M to AASEG, Plans $5B Redevelopment

Oakland sells its half of Coliseum to AASEG for $105M to address $277M budget shortfall.

By Tal Alexander

5/22, 17:43 EDT
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Key Takeaway

  • Oakland sold its half of the Coliseum to African American Sports & Entertainment Group for $105 million to address a $277 million budget shortfall.
  • AASEG plans a $5 billion redevelopment, including homes, shops, restaurants, and stadiums for Black-owned NFL and WNBA teams.
  • The sale's finalization awaits the city's and county's bond payments completion in January 2026.

Oakland's Coliseum Sale: A New Chapter

The City of Oakland has made a pivotal decision to sell its half of the Oakland Coliseum for $105 million to the African American Sports & Entertainment Group (AASEG). This transaction, driven by the city's urgent need to address a $277 million budget shortfall over the next two fiscal years, marks a significant shift in the future of the 112-acre complex located at 7000 South Coliseum Way in East Oakland. The sale, which includes the 63,000-seat stadium, a nearby arena, and the parking lot, but excludes the Malibu Lot and Home Base redevelopment properties, is set to inject much-needed funds into Oakland's general purpose fund, which supports city employee salaries.

Financial Lifeline Amid Budget Crisis

The sale of the Coliseum is a crucial financial maneuver for Oakland, which faces severe budget constraints. According to the East Bay Times, the city had been preparing for potential budget cuts that could have included closing fire stations, reducing police staff, and laying off city workers. The $105 million from the sale will be used over the next two fiscal years, with an estimated $60 million allocated to mitigate the city's projected $177 million budget deficit. This financial relief is expected to prevent drastic cuts to essential city services, providing a temporary reprieve as the city navigates its fiscal challenges.

AASEG's Vision for Redevelopment

The African American Sports & Entertainment Group, which includes prominent figures such as former Oakland City Manager Robert Bobb and former NBA player Bill Duffy, has ambitious plans for the Coliseum site. The group envisions a $5 billion redevelopment project that will transform the area into a vibrant hub featuring homes, shops, restaurants, nightlife, and a stadium for Black-owned NFL and WNBA teams. This vision aligns with broader trends in urban redevelopment, where mixed-use developments are increasingly seen as catalysts for economic revitalization and community engagement.

Negotiations and Future Prospects

While the sale of the city's share is a significant step, the AASEG must still negotiate the purchase of the remaining half of the Coliseum from the Oakland A's, who currently own it. The A's, who are relocating to Sacramento for the 2025-2027 MLB seasons before moving to a permanent stadium in Las Vegas, have expressed a positive outlook on AASEG's vision. However, finalizing these transactions is contingent upon the city and county completing payments on longstanding bonds by January 2026. This timeline adds a layer of complexity to the redevelopment plans, but also provides a window for thorough planning and community engagement.

A Transformative Opportunity

The sale of the Oakland Coliseum to AASEG represents more than just a financial transaction; it is a transformative opportunity for East Oakland. The proposed redevelopment has the potential to create jobs, stimulate economic growth, and provide new amenities for residents. Moreover, the involvement of African American leaders and investors in this project underscores the importance of inclusive development that reflects the diversity and aspirations of the local community. As the project progresses, it will be essential to balance the ambitious redevelopment goals with the needs and voices of East Oakland residents.

Management Quotes

  • Dave Kaval, President of the Oakland A’s:

    "The group [AASEG] has a really interesting vision for the Coliseum complex. The arena has actually done very, very well."