San José Sharks Would Stay in Silicon Valley Through 2051 Under New Deal

An agreement between the City of San José and Sharks Sports & Entertainment would keep the NHL franchise in Silicon Valley for another 26 years while the city spends hundreds of millions of dollars renovating the SAP Center.

The deal – which heads to the San José City Council for a vote on Aug. 26th – would keep the team at the city-owned SAP Center through 2051. Renovations would cost $425 million dollars. San José would pay $325 million while the Sharks would fund at least $100 million.

“The average lifespan of a shark is 20-30 years — and our Sharks are devoting at least one more lifetime to San José,” said San José Mayor Matt Mahan in a statement. “Our world-class team deserves a world-class arena and South Bay fans deserve a modern, smooth, and memorable gametime experience.”

Sharks president Jonathan Becher in a written statement emphasized the economic benefits of the franchise for the city, calling the SAP Center one of its “greatest economic generators.”

“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.”