San Jose Sharks commit to 25-year stay with $425M SAP Center renovation

article

SAN JOSE, CALIFORNIA - JANUARY 11: William Eklund #72 of the San Jose Sharks reacts after he scored against the Minnesota Wild in the second period at SAP Center on January 11, 2025 in San Jose, California. (Photo by Ezra Shaw/Getty Images)

SAN JOSE, Calif. - The City of San Jose and the San Jose Sharks made it official Tuesday evening, as the hockey team will stay in the city for the next 25 years.

SAP center has been home to SJ Sharks since 1993

What we know:

The city council approved the deal, which includes a $425 million renovation of the SAP Center.

The Sharks have played at SAP Center since it first opened in 1993, when it was called the San Jose Arena.

Tuesday’s agreement means millions of dollars in upgrades to the facility in the near term, with a brand-new arena in the works for the longer term.

The SAP Center is a city-owned facility, and Mayor Matt Mahan said the benefits go well beyond just hockey.

"Having the Sharks in San Jose—in addition to being an important part of civic pride for all of us— is also a major economic driver," Mahan said.

Keeping the Sharks in San Jose | Take 2 Nightly

KTVU's anchors discuss the new 25-year deal to keep NHL's Sharks in San Jose's SAP Center. Mike Mibach previews the 10 o'clock News. We look at an interview with the CEO of a new flying car company that is being tested. Andre Torrez looks at Waymo, Uber and Lyft now allowed on SF's Market Street and Taylor Swift is getting married.

SAP Center renovation project

Big picture view:

The total cost of the renovation will be $425 million, with $325 million funded by the city and another $100 million coming from the Sharks.

"We believe economic growth will help cover the cost," Mahan said. The money will come from the city’s general fund. "The Sharks— and really all of the events that we have at SAP Center— it is hockey, but it is a lot more than that. It is concerts and live performances and indoor football and many other kinds of events are a major economic driver for the city."

The upgrades will be significant and will include changes to bring the arena up to current NHL standards. This will include changing the operational layout of the arena, including player locker rooms, expanding the concession area, a VIP back-of-house facility, as well as improvements to electrical, plumbing, and audiovisual facilities.

But with the amount of public money in play, the South Bay Labor Council is calling for accountability.

"I think anytime there’s public money involved, we want to make sure there are labor standards attached, so that we can ensure the jobs that are coming from that public investment, that the public is getting the best value out of those dollars," said David Bini, with the South Bay Labor Council.

Part of this deal is that both sides agree the SAP Center will not be a viable option for the Sharks beyond 2051, so work will get underway in the next several years to identify a location for a brand-new arena and mixed-use entertainment district.

The Source: San Jose City Council meeting, interview with Mayor Matt Mahan

Featured