The Golden State Warriors will move from Oracle Arena in Oakland to the Chase Center in San Francisco for the 2019-2020 season. The Warriors have played at Oracle Arena (formerly the Oakland-Alameda County Coliseum Arena) since 1971. The Chase Center will be part of an entertainment development in San Francisco’s Mission Bay district. It will include restaurants, offices, and public space. The arena will not only host basketball but other events such as concerts and conventions.
Warriors Announce Chase Center Membership Program (Similar to PSLs)
In July 2017, the Warriors announced what they call the Chase Center Membership Program. The team did not provide specific costs for the memberships but did explain some key elements of the program including:
- 50% of the memberships will be for $15,000 or less
- Team will have financing options for the fee
- Membership fee is fully refundable after 30 years
- Membership is fully transferable
- Membership can only be sold through the team’s marketplace
- Membership cannot be sold for more than the value paid by the season ticket holder
- Locked in pricing for 2018-19 season tickets at Oracle and for the first 5 years at Chase Center
- Season ticket holders have some sort of priority to purchase tickets for other events at the Chase Center
The program is essentially a new twist on personal seat licenses (PSLs). The key difference here is that your fee will be returned to you in 30 years. The team also allows you to recoup some or all of the fee through their marketplace. Below is an example of how this would work.
- Membership Fee Cost : $15,000
- Resell member ship fee through team marketplace: $10,000
- Remaining balance $5,000 (paid by team in 30 years from original purchase)
In the scenario above, you would recoup $10,000 (2/3) of your payment and only the remainder would be due to you in 30 years.
I agree with those that say the membership fee is essentially an interest free loan to the team, but this program sounds better than most. In the past, PSL holders have sold for huge losses with no return of principal by the team.
The team should notify season ticket holders later this year on the actual cost of the fee for their specific seats.
Seating Capacity and Season Ticket Holders
Another interesting item that came up in the press release was the reduction in the number of season ticket holders.
|Arena||Capacity||Percentage of Season Ticket Holders||Season Ticket Holders|
|Oracle Arena||19,596||74%||14,500 (approx.)|
|Chase Center||18,064||67%||12,043 (estimate)|
The chart above shows a noticeable drop in season ticket holders with the move. I assume that the team believes there will be a significant number of season ticketholders who do not move with the team to San Francisco. If the renewal rate is higher than expected, I believe the team will try to accommodate current season ticket holders who are willing to pay the membership fee and attend in San Francisco.
The team has a waiting list of 42,000 with $100 deposits waiting in the wings for those that do not renew. It is definitely great timing with the new arena.