Warriors must pay $40 million to clear Oracle Arena debt
The Golden State Warriors are excited to move into a new arena in 2019, but they still have a few things they need to handle at Oracle Arena. It was recently revealed that the franchise still owes their current venue $40 million. This debit was incurred in 1996, when Oracle Arena was renovated.
According to The Mercury News, the Warriors made an attempt to rewrite the wording of the agreement. However, Rebecca Westerfield was brought into the equation as an arbitrator. She sided with the city, leaving Golden State with a sizable payment to make on their old investment.
“This was an after-the-fact attempt by the Warriors to rewrite the parties’ deal, and it would have left the people of Oakland and Alameda County holding the bag,” said Daniel Purcell, a lawyer that represented the city and county. “We are grateful that the arbitrator saw it our way.”
The Warriors have won three of the last four NBA championships, and their new venue will surely personify the excellence they have become known for in recent years. While they’d rather not pay $40 million to cut their ties with Oracle Arena, they know this will be best for the long run. After all, they’re sure to make a much larger sum over the course of this season.
“The Warriors committed to pay this debt,” said Coliseum Authority Executive Director Scott McKibben. “This money was spent to make specific renovations to meet the Warriors’ needs,” McKibben said. “We simply wanted them to honor the agreement, regardless of where they will be playing their home games in the future.”
$150 million have been invested in Oracle Arena over the course of the last three decades, so it’s only right the team pays its dues.