Anaheim has agreed to settle a claim filed by Angels Baseball ownership after the city abandoned the sale of Angel Stadium, city officials announced July 15.
In June 2022, the Major League team asked for $5 million plus legal fees after the city abandoned a $320 million deal made in 2020 for the sale of the 151-acre stadium to team owner Arte Moreno and his family.
The original sale agreement included a provision that Mr. Moreno’s company—called SRB Management—could recoup $5 million in transaction costs plus legal fees if the city didn’t go through with the sale. The city voided the deal in 2021.
The settlement reached July 11 includes giving the baseball team a $2.75 million credit against a portion of future stadium revenue shared with the city.
“This is a fair settlement for our city,” Mayor Ashleigh Aitken said in a statement. “It allows both sides to move forward without needless expense and distraction.”
Angels Baseball did not return a request for comment.
The stadium sale was fraught with controversy for years as Mr. Moreno tried to buy the property.
The city first navigated through a dispute with the state over not first offering stadium parking lots to affordable housing developers and instead to Mr. Moreno for possible development. The case was settled in April 2022 for $96 million, which was ultimately paid by Mr. Moreno.
The city abandoned the stadium sale after a federal investigation revealed alleged corruption by former Mayor Harry Sidhu, with investigators alleging he provided confidential city information to an Angels consultant during negotiations related to the sale of the stadium and to the Anaheim Chamber of Commerce.
He also said he expected a $1 million campaign contribution from the team in exchange for the information, according to the investigation.
Mr. Sidhu agreed to plead guilty to federal charges in August 2023 that included obstruction of justice, wire fraud, and lying to federal investigators in connection with the probe.
What’s in the Settlement
Anaheim shared revenue with the team from baseball ticket sales, parking, and other events held at the stadium. The funds go to the city’s Convention, Sports, and Entertainment department.The settlement allows Angeles Baseball to keep any revenue owed to the city until the $2.75 million credit is reached, starting this month.
The city expects the credit to be reached in two to three years, according to the settlement announcement.
The settlement will enable the city to build a long-awaited fire station along State College Boulevard to serve the stadium, businesses, apartments, and other developments in the area. The station will be built on 1.4 acres of city land covered by the baseball team’s lease for the site.
Mr. Moreno raised concerns in 2022 about building a station on the site, claiming it voided the team’s stadium lease. The city stopped construction plans for the station as a result.
“As Anaheim grows, we need to grow,” Anaheim Fire and Rescue Chief Pat Russell said in a statement Monday.
The chief said the new station would reduce response times and improve service provided to the “Platinum Triangle” area, which includes the stadium, the Anaheim Ducks’ Honda Center, and an upcoming OCVibe project that will bring hotels, music venues, restaurants, shopping, homes, and other development to the area.
