San José Approves $400 Million Sharks Subsidy While City Workers Are Asked to Do More With Less
On Tuesday, the San José City Council voted to approve a $400 million subsidy to renovate the 32-year-old SAP Center and extend the San José Sharks’ lease through 2051. The deal commits San José taxpayers to the majority of the $425 million project, while Sharks Sports & Entertainment will contribute $100 million. The agreement also requires the City and Sharks to begin planning for a new arena by 2027.
The problem? There’s no financing plan in place. City leaders say they’ll look to bonds or higher hotel taxes, but they voted on the subsidy without identifying how to pay for it. That leaves the City’s general fund—the very budget that pays for libraries, parks, dispatchers, engineers, animal care staff, and other essential services—vulnerable.
Meanwhile, city workers are still living with the consequences of a hiring freeze. Departments remain understaffed, and workers across the city are being told to do more with less. Next year, the City is projecting a shortfall in the tens of millions of dollars, yet services and staff are already stretched thin.
The hypocrisy is hard to ignore. Just a few years ago, the mayor and some of his allies on the Council argued it was irresponsible to approve wage increases for city workers without first identifying how to fund them. They accused other councilmembers of lacking “political courage” for backing labor contracts. Today, those same leaders have approved a $400 million arena subsidy for billionaires—with no financing plan at all.
We support keeping the Sharks in San José. The team is part of our civic identity, and workers understand the economic activity the Sharks bring to downtown. But any deal of this size should come with guarantees: no risk to the general fund, a clear financing plan up front, and a commitment to invest in the services San José families depend on.
Workers and residents deserve better than austerity for the public and blank checks for billionaires.
