The NHL’s San Jose Sharks are on course to stay in the city of San Jose, California until 2051 in a redeveloped SAP Center.
Mercury News said under a new lease deal, the SAP Center would undergo renovations worth $425 million. San José would pay $325 million while the Sharks would fund at least $100 million.
The San Jose Sharks are a professional ice hockey team based in San Jose, California, US. They compete in the National Hockey League (NHL) as a member of the Pacific Division of the Western Conference and are owned by the San Jose Sports & Entertainment Enterprises.
The 17,562-capacity SAP Center at San Jose is an indoor arena located in San Jose, California, US. Its primary tenant is the San Jose Sharks of the National Hockey League (NHL), for which the arena has earned the nickname ‘The Shark Tank’.
The Sharks have played at the SAP Center since 1993, winning six division titles. The arena is among the oldest in the NHL and has gone without a major renovation.
The current layout is also out of compliance with current NHL standards. The visiting team’s clubhouse is on the opposite side of the ice from the visiting bench, forcing coaching staff to walk across the ice at the beginning and end of each period of play.
San Jose Mayor Matt Mahan said, “The average lifespan of a shark is 20-30 years — and our Sharks are devoting at least one more lifetime to San José.
“Our world-class team deserves a world-class arena and South Bay fans deserve a modern, smooth, and memorable gametime experience. That’s what this deal is all about — serving this generation of San Joseans and the next.
Under the proposal, Sharks President Jonathan Becher said, the city would agree to take on a major renovation project at the arena.
He emphasized the economic benefits of the franchise for the city, calling the SAP Center one of its “greatest economic generators.”
Becher said, “Over the last decade, Sharks owner Hasso Plattner has invested well over $100 million into the city-owned venue and is committed to invest at least an additional $100 million to modernize the facility, in conjunction with the City’s efforts to tackle years of deferred infrastructure maintenance in the arena.”
City Manager Jennifer Maguire hailed the proposed amended lease agreement.
She said, “This is revitalized partnership between the City of San Jose and the Sharks Sports & Entertainment, whose stewardship of the SAP Center has kept it an economic catalyst for the city, filling hotel rooms, driving patrons to downtown restaurants and boosting local businesses.”
The team, which has historically operated at a loss, notified the city in 2023 that they would not agree to rent increases without a plan to address the facility’s condition.
Under the proposed deal, the Sharks would owe a termination fee equal to San José’s outstanding debt plus interest if they relocate outside San José before the end of the agreement.
According to the memorandum of understanding, no other NHL city has “as strong a guarantee from their team to remain in their home market.”
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