City of Oakland to Sell Its Stake in Coliseum to AASEG

The City of Oakland on Wednesday announced a tentative deal to sell its half of the Coliseum site to a development group for at least $105 million. The San Francisco Chronicle reported that the pending sale to the locally based African American Sports & Entertainment Group (AASEG) ends six decades of city involvement in the sprawling professional sports and entertainment complex and heralding its potential redevelopment for other uses. 

The deal could help stave off deep budget cuts as the city works to close a deficit of some $177 million, reported the Chronicle. The site includes the Oakland Arena, which has found a lucrative second life as a venue for events such as concerts and Disney on Ice.  

“We are thrilled to partner with Mayor Sheng Thao and the City of Oakland to bring this vision to life,” AASEG founder Ray Bobbitt said when the deal was announced. “This project is not just about building structures; it’s about building communities and opportunities for future generations.”

In the past, AASEG has planned to build a $5-billion mixed-use development on the site, which would include housing, restaurants and a convention center. Long complicating the conversation around the Coliseum’s future is its dual ownership.

The A’s are in the process of completing a purchase of the other 50% stake of the Coliseum, which was owned by Alameda County, even as the Major League Baseball franchise is leaving the city for Sacramento next year. That purchase could still fall through, pending the outcome of a court case scheduled for September, according to the Chronicle.