San Jose Locks in Future with Sharks Deal: Arena Upgrades and 2051 Commitment An unprecedented agreement between San José and Sharks Sports & Entertainment secures the NHL franchise’s future in the city until 2051, coupled with a monumental $425 million investment in the revitalization of the SAP Center. This landmark partnership promises to reshape the downtown sports and entertainment landscape of San José. **Key Highlights of the Agreement:** * **Long-Term Commitment:** The Sharks will remain the city’s team through the 2050-51 season, solidifying their legacy within the South Bay community. * **Significant Investment:** San José will contribute $325 million over seven years, alongside the Sharks’ initial $100 million commitment, totaling $425 million for arena upgrades and modernization. * **Arena Revitalization:** Investments will encompass NHL-required renovations, architectural enhancements, and crucial code upgrades, ensuring a world-class game-day experience for fans. * **Downtown Transformation:** The deal aligns with the city’s broader strategy to foster a vibrant downtown sports and entertainment district, capitalizing on the experience economy. * **Beautification Project:** Concurrent with the arena upgrades, a city-led beautification project will transform surrounding areas, including crosswalk improvements, murals, and cleanups, enhancing the overall downtown experience. * **Parking Enhancements:** The agreement mandates improvements to parking availability, requiring the provision of 3,175 spaces within a third of a mile and an additional 6,350 spaces within a half mile of the SAP Center.

To ensure accountability, the agreement includes substantial financial penalties for San José if it fails to meet its investment obligations. These penalties escalate over time, reaching a maximum of $549 million in 2030-2031. Conversely, early termination of the agreement would trigger a significant $100 million penalty in 2025-2026, increasing to $200 million in 2026-2027.

**Economic Impact & Future Vision:** Recent studies highlight the Sharks’ substantial economic contribution to San José, generating $235 million in annual visitor spending and supporting 2,740 jobs, alongside $4 million in annual sales tax revenue. Recognizing the importance of this economic engine, city officials have prioritized securing the Sharks’ future, aiming to create a dynamic downtown sports and entertainment destination. "The average lifespan of a shark is 20-30 years — and our Sharks are devoting at least one more lifetime to San José," Mahan stated. "Our world-class team deserves a world-class arena, and South Bay fans deserve a modern, smooth, and memorable game-time experience. That’s what this deal is about – serving this generation of San Joséans and the next."

**New Arena Site:** The agreement also defines terms for identifying and reserving a site, spanning at least 12 acres, for a new city-owned arena.