The African American Sports & Entertainment Group has bought the Oakland Athletics stake in the Oakland Coliseum for $125 million.
The Black-owned development group, previously landed a deal to buy the other 50% ownership interest from the city of Oakland for $105 million. The new ownership intends to build a giant entertainment and sports complex and revitalize a long-neglected part of the Bay Area.
“We’re in such a unique position, and because Oakland really needs this, we’re very excited about it. We feel like this is our contribution, and as much as we see this as a unique opportunity, we see it more as like a profound responsibility, especially as natives, understanding that … we can really have a massive amount of impact and really create an opportunity for people within this community who have typically been very highly impacted in a negative way,” said AASEG founder, Ray Bobbitt.
The redevelopment of the Coliseum is geared to be the largest in the city’s history. AASEG will focus on workforce development and building housing, open parks space and entertainment and retail on the property. According to the group’s deal with Oakland, 25% of any housing units built on the site of the complex must be affordable.
The city’s leadership plans to use $63 million in expected one-time revenue from the sale to help close the its massive budget shortfall. Future property taxes from the Coliseum will be used to help the city address its larger structural deficit and create jobs for residents.
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“Having one entity control the entire Coliseum site will fast-track much-needed and deeply deserved development in East Oakland. This is a multi-billion-dollar development that is going to deliver affordable housing, jobs, business opportunities, community benefits and tax revenue for decades to come,” Mayor Sheng Thao said in a statement.
The Oakland Arena will remain on the site and continue to serve as an entertainment venue, hosting profitable ventures such as Disney shows and singers. Once home to the Oakland Raiders and Golden State Warriors, it is one of the only shovel-ready sports site in the country and is available to sports teams looking for a location to play.
Founded in 2020, the AASEG is “using the vehicle of sports and entertainment to create a path for enhanced economic equity for the Black community.”
The group’s ownership includes a local ownership group led by Oakland native Ray Bobbitt, prominent sports agent Bill Duffy and a business-consulting group run by former Oakland city manager Robert Bobb.
AASEG was formed after Bobbitt and some friends had unsuccessfully tried to keep the Oakland Raiders in town.
The group aims to bring the first Black majority owned franchise in NFL history and an African American woman led WNBA franchise to Oakland. They also intend to develop an African American centric College University satellite campus/academic center focused on careers centered around entertainment management, sports management, and entrepreneurship.
