“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,” Becher wrote.
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, according to the proposal’s memorandum of understanding. For example, 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.
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.”
