Locals will still call it the "Shark Tank," but the official name of the downtown arena is going to be changed from HP Pavilion to the SAP Center.
The Sharks issued the following statement Wednesday evening:
"Sharks Sports & Entertainment and SAP have reached agreement for SAP to become the naming rights holder of HP Pavilion at San Jose. We are pleased to be working together on this significant partnership that will continue to positively impact the venue as well as the City of San Jose and its residents. At this time, the deal awaits approval from the City of San Jose.”
HP CEO Meg Whitman decided she wanted out of the deal a couple of months ago. SAP founder Hasso Plattner is a Sharks majority owner and obvious fit.
According to the San Jose mayor's office, the San Jose Sharks have come to a five year agreement with SAP. The payments are split between the city of San Jose, which owns the building, and the San Jose Sharks hockey team.
The annual payment to the San Jose will be $1,675,000, with total revenue of $8,375,000 over five years, according to the city.
The change is subject to approval by the San Jose City Council, which is expected Wednesday.
The arena was originally named Compaq, then changed to HP when HP acquired Compaq in 2002.
Here's the city council agenda item:
4.3 Actions Related to the Arena Naming Rights.
(a) Adopt a resolution authorizing the City Manager to negotiate and execute an agreement between HP, San Jose~ Arena Management and the City of San Jose to terminate the current naming rights agreement for the San Jose~ Arena; HONORABLE MAYOR AND CITY COUNCIL
June 4, 2013
Early Distribution Packet
(b) Approve a five year Naming Rights Agreement by and between SAP Global Marketing, Inc., San Jose Arena Management, LLC and the City of San Jose for the naming of the San Jose Arena to SAP Center at San Jose for an annual payment to the City of $1,675,000, with total revenues to the City for a total amount of $8,375,000 over five years.
CEQA: Not a Project, File No PP10-066(e), Services that involve no physical changes to the environment. (City Manager’s Office)