Warriors Ordered To Pay $40M For Oracle Arena Upgrades
OAKLAND (CBS SF) -- The Golden State Warriors must fully complete payments on a $100 million, 30-year bond for renovations at Oracle Arena, an arbitrator ruled Monday.
The outstanding balance, when paid at $7.5 million annually, will amount to about $40 million when the Warriors move to San Francisco.
"We are pleased by today's ruling and believe that it's the Warriors, not the Oakland and Alameda County taxpayers who should repay this debt," said Alameda County Supervisor Nate Miley, who is chair of the Oakland Alameda County Coliseum Authority that oversees the site.
In 1996, the Warriors signed a 20-year lease with the Oakland-Alameda County Coliseum Authority, to play at Oracle Arena. The Warriors extended the lease in 2016, but argued that their lease obligations end when they move to San Francisco for the 2019-2020 season.
After extensive talks, the parties didn't agree and both accepted binding arbitration.
Coliseum Authority executive director Scott McKibben said, "The terms of the lease were clear in our eyes. The Warriors committed to pay this debt. This money was spent to make specific renovations to meet the Warriors' needs."
Warriors officials said they plan to release a statement about the arbitrator's order later Monday.
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