SAN JOSE – The San Jose Sharks are on track to continue to play their home games at SAP Center — the same arena they’ve called home since 1993 — for at least another quarter-century.
The Sharks and the City of San Jose announced Saturday that they are nearing a new lease agreement to keep the NHL franchise at the municipally owned downtown arena for another 25 years.
The Sharks and San Jose Mayor Matt Mahan announced the framework of the deal, which still has to be approved by council, at a State of the City event just east of the arena.
Financial details were unavailable, but Mahan said the city will invest significantly in the 32-year-old facility as part of the lease agreement. Mahan said he expects the deal to be approved by council next month.
The Sharks, the arena’s primary tenant, say they’ve sunk tens of millions of dollars into the building but wanted the city to contribute to the cost of non-revenue-generating upgrades, such as to the facility’s aging plumbing.
In a short speech Saturday, Jonathan Becher, president of Sharks Sports & Entertainment, said, “We are thrilled to be finalizing a partnership with the city to reinvest in the SAP Center, so it can serve the next generation of San Jose residents and draw millions of visitors from all over the Bay Area, and beyond.”
Mahan’s long-term goal is to create a downtown sports and entertainment district near the arena and expand the convention center so that the city can host more significant events.
“Sharks, for the last 30 years, you’ve helped define San Jose’s identity,” Mahan said Saturday. “I can’t wait to watch you continue to do so on and off the ice for the next 25.”
The Sharks wanted to negotiate a new long-term lease with the city. The present deal, signed in 2015, called for the Sharks to play their home games at the facility on a fixed term through July 1, 2025, with the lease renewing annually through 2040 thereafter.
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Without a new deal, the city could have potentially charged the Sharks more each year to lease the facility. But Becher had become increasingly upbeat about the state of negotiations, saying last month that, “We’re way past (being) pessimistic or cautiously optimistic. We will get something done.”
Becher said SS&E had contingency plans for a new home rink in case negotiations with the city on a new lease agreement at SAP Center fell through. However, the organization, led by owner Hasso Plattner, always wanted to remain at the arena, long dubbed the Shark Tank, which has a seating capacity of 17,435 for hockey.
Please check back for updates to this story.
