Securing stability in the San Jose Shark’s at SAP Center

Nearly all the topics that will be pertinent at this week’s AXS DRIVE conference are in play in San Jose, where the Sharks have already embarked on a multiyear, $400 million-plus renovation of SAP Center.

While talking to me on the phone, Sharks President Jonathan Becher contended with a background echo emanating from construction on the first portion of the work (designed by Perkins+Will) that should finish ahead of the 2025-26 NHL regular season’s October start.

The project — and the accompanying new 25-year lease with the city of San Jose — is critical for the Sharks and the city. The Sharks have been on a year-to-year lease for a decade, so the long-term deal gives the city a firmer commitment while giving the Sharks set rent payments (which spiked and dipped over the years due to the unusual lease) through 2051.

The team has put roughly $100 million into the SAP Center during Becher’s seven years. The arena hasn’t received public money during that span, but that’s changed in a big way with $320 million of city funding committed in addition to another $100 million from the Sharks. Additionally, the new lease includes a two-year window during which the Sharks and the city will study potential development of the surface parking lots that sit on two sides of the arena.

A finalized arena renovation design should be ready by March. This summer’s upgrades are shifting the food and beverage footprint to more grab-and-go markets, crucial for hockey, which has just three primary windows (pregame and period breaks) during which fans buy food and drink, making throughput critical.

A hefty portion of the renovation will update elements of the building that are still original to its initial construction 32 years ago.

Some other key issues to address:

Main concourse crush

SAP Center has one main concourse, which creates significant crowding. The Sharks may add a second main level and are enhancing two premium levels to prevent those fans from needing to use amenities on the main concourse.

More entrances

Like the concourse traffic issue, SAP Center is primarily a two-entrance building with 65% to 70% of fans using one entrance, the main one facing southeast. The renovation will likely create new entryways, potentially seven or eight, including VIP entrances, with the goal of reducing the main gate to just 50% of fans.

Seating options

“Today, most of our building is a choice between seats or suites,” Becher said. “The most you can do is interact with the person to your left or right, maybe lean over to the person in front of you.”

By doing small renovations annually since 2018, the Sharks have experimented with different seating products. They really like the Penthouse Lounge, which debuted in 2023 as a pod for four to six people with a common gathering area behind the seats for food, drinks and mingling. The Sharks expect to add four to nine more such spaces during the renovation, part of an effort to diversify the arena’s seating options (it also has no tunnel club or bunker suites).

The existing Penthouse Lounge is sold on an annual lease (for both hockey and the rest of the building, which hosts 150 events per year, or hockey and à la carte for rest of the events) and tickets include food and beverage. The lower-end versions of these group spaces range from $40 per ticket (per game) to a slightly more elevated $100 average price. High-end versions will reach several thousand dollars per seat.

San Jose Sharks SAP Center renderings Refreshed entrance to SAP Center, including digital displays highlighting current arena events. Penthouse Suite at SAP Center Expect the San Jose Sharks’ roughly $500M renovation of SAP Center to include more premium products like the Penthouse Suite, combining the best of a suite and an individual seat. (Kavin Mistry) Penthouse Suite at SAP Center Expect the San Jose Sharks’ roughly $500M renovation of SAP Center to include more premium products like the Penthouse Suite, combining the best of a suite and an individual seat. (Kavin Mistry) Penthouse Suite at SAP Center Expect the San Jose Sharks’ roughly $500M renovation of SAP Center to include more premium products like the Penthouse Suite, combining the best of a suite and an individual seat. (Kavin Mistry) Penthouse Suite at SAP Center Expect the San Jose Sharks’ roughly $500M renovation of SAP Center to include more premium products like the Penthouse Suite, combining the best of a suite and an individual seat. (Kavin Mistry) Penthouse Suite at SAP Center Expect the San Jose Sharks’ roughly $500M renovation of SAP Center to include more premium products like the Penthouse Suite, combining the best of a suite and an individual seat. (Kavin Mistry) San Jose Sharks SAP Center renderings Revamped North Club, with expanded, dramatic entrances to the lower bowl. San Jose Sharks SAP Center renderings Modernized and expanded dressing rooms for the Sharks, visiting teams, and arena entertainers. San Jose Sharks SAP Center renderings Revitalized main concourse with an expanded mezzanine level. San Jose Sharks SAP Center renderings Renovated arena bowl with new seats and widened entrances to the Club level. SAP Center Roughly 70% of fans enter SAP Center through the venue’s main entrance. Adding more ways to get into the building is a key emphasis of the Sharks’ renovation project. (GETTY IMAGES)