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SAP Center lease expiring in 2025. UPD. No relocation for Sharks regardless of arena deal

LadyStanley

LadyStanley

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Sep 22, 2004
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sanjosespotlight.com

San Jose Sharks tout benefits to city as lease set to expire - San José Spotlight

The San Jose Sharks' SAP Center lease with the city is expiring next year, and the terms will be changing — opening the door for negotiations with both parties.
sanjosespotlight.com sanjosespotlight.com

But Sharks and San Jose working on extension.

Last lease signed in 2015.

alfbundy said:
San Jose could be about to approve $100m+ in lease breaks for Sharks in exchange for diddly-squat

Sounds like a good deal for the team.
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Sounds like there’s no risk here (unless they Meruelo it). It’s just figuring out who will pay for the next round of capital improvements to the arena, which they’ll agree to split in some way.
 
They will get a short term extension done and then they gotta start working on major renovations IMO. That arena is on the lower end for NHL arenas.
 
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Owner is a multi Billionaire, 11 figure net worth. But city owns the arena.
Seems like the average is $10 mill in cost for each additional year added to the lease for the city. PHX paid like $160 mill of rhe $250 mill reno for the suns arena to extend the lease by 15 years from 2022 to 2037.

So to get the lease pushed to 2040, going to cost the city $150-165 mill give or take most likely.
 
No Fun Shogun said:
Sharks are a healthy, albeit rebuilding, team with an established fanbase, a good local relationship, and competent ownership. They'll be fine and a new deal will get done. Having a shiny new toy with the first overall probably won't hurt their short-term goodwill, either.
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They have the third lowest attendance in the league and its 2000 behind from 4th lowest (Ducks). The two teams below them are the Yotes and Jets (small buildings). Sharks have the lowest % of capacity in the league. I doubt if they will be moving anytime soon as the NHL owners want the expansion money first and wouldn't make much off a relocation. But the old owners got out of there for a reason.
 
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timekeep said:
They have the third lowest attendance in the league and its 2000 behind from 4th lowest (Ducks). The two teams below them are the Yotes and Jets (small buildings). Sharks have the lowest % of capacity in the league. I doubt if they will be moving anytime soon as the NHL owners want the expansion money first and wouldn't make much off a relocation. But the old owners got out of there for a reason.
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They're in a rebuild and just had one of the worst seasons in franchise history.
 
It's been five years since the Sharks were in the playoffs. (2018-19 season) Diehards continue to attend games, but many have stopped due to quality of play/record. (And many key players have been traded away/retired. ) Those facts alone can account for low attendance.

87% renewal rate of STH for 24-25. And many expressions of interest after winning the draft lottery. Hope for future attendance improvement.

But those facts have little to do with the lease.

IIRC Hasso Plattner is the richest individual owner of the NHL. And he loves SAP Center.

Since the building opening 30 years ago, extensive renovations have been made. Including center scoreboard (on 3rd generation), ice plant (replaced, including under slab piping), escalators (replaced), seating (replaced), facia board on edge of upper rim (installed), roof system (upgraded) allowing more weight to be hung for modern touring musical groups, improve water temperature in bathroom sink (so not ice cold), and more.

With proper maintenance and upgrades, the facility will be useful for many more years.

(The Google construction in the area has more impact. And that's another story entirely. )
 
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Looks like the Quebec fans and the Canadian media will have a new target
 
StreetHawk said:
Owner is a multi Billionaire, 11 figure net worth. But city owns the arena.
Seems like the average is $10 mill in cost for each additional year added to the lease for the city. PHX paid like $160 mill of rhe $250 mill reno for the suns arena to extend the lease by 15 years from 2022 to 2037.

So to get the lease pushed to 2040, going to cost the city $150-165 mill give or take most likely.
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Does this really matter though? The mantra behind the Coyotes were they weren't making enough money to help support HRR, and increase it. The net worth doesn't matter in that regard.

Don't the Sharks have a really bad TV contract? Decline in attendance, wouldn't the team not be making money?
 
NorCal is a large market, but I did hear that someone said they signed a bad TV deal that lasts 2 decades which is pretty insane. I didn't think TV deals lasted more than 7-8 years max.

Every team goes through ups and downs. Sharks team is on the decline right now, so unless they decide it's better to cut ticket prices to increase attendance or they view that keeping prices where they are with lower attendance is the better option for the team over the next 3 seasons as they rebuild the roster.

The 2 sides will figure it out.
 
awfulwaffle said:
Does this really matter though? The mantra behind the Coyotes were they weren't making enough money to help support HRR, and increase it. The net worth doesn't matter in that regard.

Don't the Sharks have a really bad TV contract? Decline in attendance, wouldn't the team not be making money?
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Plattner is willing to support team financially to get a winner. IOW pay out of pocket to go to cap max when revenue does not cover costs (if it warrants).

AIUI Sharks get crumbs $$ wise for TV contract (low 7-digits) rather than some teams bringing in healthy 8-figure $$$ for regional coverage.
 
LadyStanley said:
Plattner is willing to support team financially to get a winner. IOW pay out of pocket to go to cap max when revenue does not cover costs (if it warrants).

AIUI Sharks get crumbs $$ wise for TV contract (low 7-digits) rather than some teams bringing in healthy 8-figure $$$ for regional coverage.
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So who is to say that other owners weren't eating costs then?
 
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