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The Oakland Athletics have failed to pay $1.2 million in rent for the RingCentral Coliseum because of their inability to “generate revenue,” reports say.
Interim head of Coliseum Authority Henry Gardner told the East Bay Times on Tuesday that the A’s revealed they had “no ability to pay” the annual rent, which was due April 1.
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“They said because they haven’t used it, they were not able to generate revenue and they have no ability to pay,” Gardner told the outlet.
He said while he understands that the unusual circumstances created by the coronavirus pandemic have impacted the organization's finances, not paying rent is simply not an option.
“We recognize that we’ve all been upended in a number of ways … maybe there are some things we are willing to negotiate and waive, but we can’t just say no rent,” Gardner said.
According to a letter obtained by the East Bay Times, A’s general counsel D'Lorna Ellis cited a clause in the contract that relieves both parties of their respective obligation when there is an extraordinary event.
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In the letter dated March 31 -- just one day before rent was due -- Ellis stated that the organization would be deferring payment “until we have a better understanding of when the Coliseum will be available for our use.”
The Athletics did not respond to the East Bay Times’ request for comment.
Coliseum Authority board member Ignacio De La Fuente accused the A’s of taking advantage of the crisis, telling the outlet that it’s “not the city’s fault, not the county’s fault or the state’s fault,” that the coronavirus pandemic is happening.
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“It’s just an excuse to try to not pay when the city needs the money the most.”
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