The Mercury News

Warriors take Oracle Arena debt dispute to state Supreme Court to work out issue

NBA team says move from Oakland makes payments unnecessar­y

- By David DeBolt ddebolt@bayareanew­sgroup.com Contact David DeBolt at 510-208- 6453.

A f ter losing in lower courts, the Golden State Warriors are taking their dispute with the Coliseum Authority over Oakland arena debt to the state Supreme Court.

The legal battle centers around outstandin­g debt — nearly $50 million — from renovation­s in 1996 at the arena, formerly known as Oracle Arena.

The Warriors made annual payments on the debt while playing in Oakland, but the team argues it was no longer responsibl­e for payments once the Warriors moved to San Francisco last year. Leaders of the Coliseum Authority, which is operated by the city of Oakland and Alameda County, contend a license agreement made it clear the Warriors must pay off the debt.

Coliseum Authority Executive Director Henry Gardner said the debt is currently about $47 million.

An arbitrator and a California Superior Court judge ruled in favor of the Coliseum Authority, concluding the Warriors must pay up. In August, a state appeals court panel reaffirmed that decision. Now, the Warriors are asking the state Supreme Court to take on the matter.

“Our position has always been that we will pay what the courts determine we owe,” said Warriors spokesman PJ Johnston. “However, the evidence is clear that the Authority drafted the contract and knew that it would not require the Warriors to pay debt service under these circumstan­ces. We remain confident that we are right, and we are always willing to fight when we believe we are right.”

“This is despicable behavior by billionair­es trying to harm Oakland taxpayers,” Oakland City Council President Rebecca Kaplan said. “The arbitrator and the court ruled they were wrong and we were right, but they still seek to refuse to pay their obligation­s.”

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