BREAKING: Oakland Reaches Deal to Sell Coliseum Stake, Avoid Budget Cuts

(Bloomberg) — Oakland has signed a deal to complete the sale of the city’s share of the Oakland-Alameda County Coliseum to a local business group, according to city officials.

The city will make $105 million on the transaction with the African American Sports and Entertainment Group (AASEG), allowing it to avoid drastic cuts to services and proceed with various capital improvement projects.

The sale also paves the way for AASEG to redevelop the stadium site with a planned $5 billion project that will include new sports facilities, entertainment venues, a hotel, and affordable housing.

Oakland is facing a $117 million budget gap this fiscal year and a $175 million shortfall for the next. The Oakland City Council voted on July 2 to pass a $2.2 billion mid-cycle budget adjustment that relies on cash from the city’s sale of its 50% share of the stadium to fund essential services like police and fire department operations.

The other half of the Coliseum is owned by the Oakland Athletics, who are also in talks with AASEG. The A’s are playing their last season in the Coliseum before moving to a minor league ballpark in Sacramento next year while they build a new stadium in Las Vegas.