With The Warriors Soon Departing For San Francisco, What’s The Future Of Oracle Arena?

As the entire Bay Area celebrates the Golden State Warriors’ latest national title, the future of Oracle Arena is a giant question mark. The Warriors signed a $2.5M lease extension and plan to remain in Oakland for two or three seasons while the new Chase Center is being built in Mission Bay, the San Francisco Chronicle reports. The Raiders will leave the Coliseum within the next few years and the A’s are pining for a new ballpark, which could lead to no major sports teams playing at the 135-acre sports complex.

Oakland-Alameda County Coliseum Authority Chairman and County Supervisor Nate Miley said all options are being considered for the Oracle. The arena could continue to provide concerts, ice shows and other minor sporting events. If no sports teams remain at the site, the Oracle could be torn down to make way for a future project.

Coliseum officials said it is too early to determine if the arena will eventually be torn down, and the Coliseum Authority wants the current leasing agreements to be off the table before any future plans are made.

Debt of about $68M from the 1990s Oracle Arena renovation also hangs over the site. The longer the Warriors stay at the arena, the more debt will be paid off. The team pays $7.5M each year toward the debt; if the team were to remain for three more years, the debt would reduce to $46M.

If the Warriors take up some of the remaining debt when the team departs, a developer could step in and pay off the debt with the notion of being able to build on the property.