San Jose Sharks remain hush over negotiations with city

The San Jose Sharks are still being tight-lipped about their closed door discussion with city officials over the team’s future at the Shark Tank.

As the NHL team’s 10-year agreement at the SAP Center transitions to an annual renewal starting next year, Sharks representatives are not only eager to stay in San Jose through 2040, but for decades to come. The team is hoping to remain a key part of the city, but it also needs help funding major facility upgrades.

“We continue to have positive and engaging conversations with city staff in our shared goal to ensure that SAP Center remains a viable city asset for many years to come,” Sharks Sports & Entertainment President Jonathan Becher told San José Spotlight.

Team officials said at a recent downtown forum hosted by the Urban Vibrancy Institute that the Sharks are set to bring $1.25 billion in economic benefits to the city over the next five years.

While team officials said an economic impact report will be released to reflect the projected benefits, the information is still pending.

“We are going to be releasing an economic impact study that uses the city’s version — the city’s rules associated with this — because nobody wants to put out a number that can’t be supported,” Sharks Senior Vice President of Government Affairs Chris Shay said at the May 16 forum.

The projected $1.25 billion is expected to come not just from game tickets, but from any event at the Shark Tank, the Tech CU Arena and around the area where Sharks fans spend their money.

A 2015 study for the San Jose City Council by SportsEconomics, a sports business research firm, showed the annual financial impact of the team and its arena operation on the city was almost $211 million.

San Jose Chamber of Commerce CEO Leah Toeniskoetter said seeing the town covered in teal, the Sharks’ primary color, and the economic impact the team brings is enough to make them integral to the city.

She said she’d also like to see more improvements to SAP Center so fans can have an even greater experience.

“That facility has potential for so much in our downtown,” Toeniskoetter told San José Spotlight. “There’s activity there all the time. So really creating the best magnet of energy that we can around that arena will only be positive for us.”

After the city’s 10-year agreement with the Sharks ends next year, city officials will gain the ability to raise rent on the team.

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Last year, the Sharks and SAP agreed to keep the name of the stadium where the hockey team plays their home games through 2028.

“The San Jose Sharks are integral to the city and a key partner,” Economic Development and Cultural Affairs Director Nanci Klein told San José Spotlight. “The city of San Jose and the Sharks have begun to discuss the lease and will report to the City Council when appropriate.”

While city officials like Mayor Matt Mahan are also keeping agreement discussions discreet, past statements indicate they’re devoted to keeping the Sharks in San Jose.

“We’re now going through the process of discussing with them and negotiating what the next 20 or 30 years will look like in San Jose. I’m very committed to keeping the Sharks here. Not just staying here, but growing and thriving here,” Mahan said. “I can’t share a lot about that process because we’re just (now) having that conversation, but I’m excited about what the future is going to look like.”

Contact Vicente Vera at [email protected] or follow @VicenteJVera on X, formerly known as Twitter.