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Wednesday, May 20, 2020

Oakland A’s haven’t made rent payment, Coliseum exec says

The Oakland Athletics have balked at paying the $1.2 million required under contract to use the Coliseum, the head of the stadium authority confirmed Tuesday.

Henry Gardner, the interim head of the Coliseum Authority, said the A’s informed him they had “no ability to pay” the annual rent due April 1.

“They said because they haven’t used it, they were not able to generate revenue and they have no ability to pay,” said Gardner, who stepped in as Coliseum Authority Executive Director after Scott McKibben’s resignation in August.

“We recognize that we’ve all been upended in a number of ways,” Gardner said. “Maybe there are some things we are willing to negotiate and waive, but we can’t just say no rent.”

The A’s did not respond to a request for comment, but in a letter dated March 31, A’s general counsel D’Lorna Ellis cited “force majeure,” a clause in the contract that relieves both sides from obligation when there is an extraordinary event, such as the coronavirus outbreak.

 

RoyalsRetro (AG#1F) Posted: May 20, 2020 at 09:55 AM | 13 comment(s) Login to Bookmark
  Tags: athletics

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   1. asinwreck Posted: May 20, 2020 at 10:52 AM (#5952253)
There's a few hundred thousand residents of Alameda County who ought to be ahead of the A's in line for rent cancellation.
   2. RoyalsRetro (AG#1F) Posted: May 20, 2020 at 11:04 AM (#5952261)
No players putting change in the clubhouse soda machine has caused a huge drop off in revenue.
   3. Ziggy is done with Dominican discotheques Posted: May 20, 2020 at 11:15 AM (#5952263)
Man o' man I would live to see a bankruptcy filing of an MLB team. The #### that could reveal would be amazing.
   4. Stevey Posted: May 20, 2020 at 11:42 AM (#5952275)
Man o' man I would live to see a bankruptcy filing of an MLB team. The #### that could reveal would be amazing.


2010 Rangers. It was not all that exciting.
   5. Starring Bradley Scotchman as RMc Posted: May 20, 2020 at 12:17 PM (#5952287)
Hey, I gave 'em $76 of my money last July 13! What happened to that?!
   6. villageidiom Posted: May 20, 2020 at 01:17 PM (#5952297)
Coliseum Authority board member Ignacio De La Fuente reacted strongly, saying the A’s are taking advantage of a crisis not to pay rent. The crisis is “not the city’s fault, not the county’s fault or the state’s fault,” De La Fuente said. “I’m going to make sure we do whatever we can to make them pay.”

He added: “It’s just an excuse to try to not pay when the city needs the money the most.”
Well, I mean, if you have a force majeure clause in the contract then the fact that it's not the city's fault, the county's fault, the state's fault, or the A's fault is precisely the scenario they need to avoid payment.
   7. Karl from NY Posted: May 20, 2020 at 02:54 PM (#5952348)
I have no idea how this holds up legally, but if it's a state order that is preventing sports and gatherings, then the non-use of the stadium is indeed the state's fault, isn't it?
   8. Jeremy Renner App is Dead and I killed it Posted: May 20, 2020 at 03:21 PM (#5952367)
7--"we order this place closed"

pause

"but you still owe us the money on the place we closed on you"


Sounds very mafia
   9. McCoy Posted: May 20, 2020 at 05:13 PM (#5952456)
Or like our government
   10. Bhaakon Posted: May 20, 2020 at 07:56 PM (#5952513)
I'd be more sympathetic to the anti-government angle if their weren't plenty of private commercial landlords doing the same. There's a lack of slack in the real estate infrastructure (and , indeed, the economy in general) that makes it difficult to absorb shocks without falling to shambles. The more people and corporations that are essentially living hand to mouth (and I regret implying corporations are people in any non-fictional sense), the less resilient the system is.

But hey, brittleness looks really efficient when nothing goes wrong.
   11. Walt Davis Posted: May 20, 2020 at 08:36 PM (#5952526)
7--"we order this place closed"

pause

"but you still owe us the money on the place we closed on you"


Is that the timeline here? (asking) Did Oakland ban large gatherings prior to MLB's announcement that the season was delayed?
   12. Bhaakon Posted: May 20, 2020 at 09:02 PM (#5952533)
Gatherings over 1000 people were banned in Alameda County on March 11. The NBA postponed their remaining season the same day. MLB postponed on the 12th.
   13. Ziggy is done with Dominican discotheques Posted: May 20, 2020 at 09:16 PM (#5952536)
Gatherings over 1000 people were banned in Alameda County on March 11.


Shouldn't be a problem for the A's. *rimshot!*

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