San Jose Council approves Sharks lease, $425 million SAP Center renovation to keep team through 2051

Mayor Matt Mahan and the San Jose City Council on Aug. 26 approved a multi-decade agreement with Sharks Sports & Entertainment that extends the team's arena management term through June 30, 2051 and authorizes a $425 million phased renovation of SAP Center.

The vote followed months of negotiations between city staff and Sharks leadership. Under the agreement the Sharks will manage and deliver the renovation, contribute $100 million to the project (including roughly $8.3 million to the city to offset early debt service), and front early renovation costs; the city’s share is structured at $350 million payable in five installments designed to reduce near-term pressure on the general fund.

City officials said the financing plan staggers payments to give the general fund time to grow and to allow for further fiscal options, including future ballot measures if needed. Assistant City Manager Lee Wilcox summarized the goal: the arrangement “guarantees Sharks hockey in San Jose, maximizes the lifespan of the facility and the team, and protects the general fund by phasing payments.” Projected initial debt-service impacts were described to council and will be refined with bond counsel before the next financing steps.

Sharks president Jonathan Becker told the council the team views the deal as a long‑term partnership. “If this agreement gets approved, I think the same thing will be true of the arena and the surrounding…