Oakland City Council approved the sale of its Coliseum complex share for $125 million to Oakland Acquisition Company, but the city will act as a lender for $60 million of the funds due to OAC's past missed payments and unverified financial capacity.

Oakland City Council voted 6-1 on July 13, 2026, to approve an amended sale agreement for its 50% share of the Coliseum complex to Oakland Acquisition Company (OAC), an affiliate of the African American Sports and Entertainment Group (AASEG). The deal, now valued at a restructured $125 million, highlights ongoing financial challenges for OAC and positions the City of Oakland as a significant lender in its own asset sale.

This marks the third price revision for the contentious transaction, which originally stood at $105 million in June 2024, before increasing to $110 million in September 2024, and now $125 million. Despite the escalating price, OAC has only remitted a $5 million deposit for a deal initially valued at $105 million, missing subsequent payment deadlines amounting to $105 million. The newly approved terms include a $50 million cash payment for the Arena Parcel at closing, followed by $60 million for the Stadium/Coliseum Parcel paid in installments over five to seven years at 5% annual interest. An additional $15 million is contingent upon OAC securing development permits.

The city's decision to offer $60 million in seller financing effectively makes Oakland a direct lender to OAC, an entity whose financial capacity is verified solely by its own representations, not independent audit, as per official documents. This arrangement raises questions about the due diligence applied to a critical city asset sale, especially in light of OAC's past payment issues. The closing is targeted no later than August 31, 2027, with a requirement to close simultaneously with Alameda County's parallel sale.

Councilmember Kevin Jenkins championed the deal, which passed with a single dissenting vote from Councilmember Treva Reid, who raised concerns over transparency and process. The agreement also removes affordable housing requirements from the Arena parcel, now solely tying them to the Coliseum parcel, and mandates OAC to negotiate community benefits within five years of closing. The lack of independent financial verification for the buyer, combined with the city essentially financing a significant portion of the sale, sets a concerning precedent for future city asset divestments. What remains to be seen is if OAC can secure the remaining capital to close the deal, and if the city's new role as lender will accelerate or further complicate the long-delayed transaction.