California’s Joint Legislative Audit Committee approved a request to conduct an emergency audit of the city of Anaheim and its lease and sale negotiations with the Los Angeles Angels baseball team for Angel Stadium, lawmakers announced Aug. 14.
The state lawmakers said they had concerns about compliance, revenues, and maintenance of the stadium.
“The people of Anaheim deserve oversight and transparency on the topic of the Anaheim stadium,” Umberg said in a press release Wednesday. “This taxpayer-owned stadium is estimated to be worth $500 million. It was hours away from being sold for $320 million—nearly two hundred million dollars below market value.”
Umberg said he thinks the best way for the city to move forward is to understand what decisions were made by former Anaheim officials and their impact on future stadium deals.
Valencia also said he wanted more understanding. He was a city councilman during the sale transaction and its demise.
“The City of Anaheim and its residents deserve a world-class stadium and team,” Valencia said in the press release. “To achieve this, we must look in the rearview mirror and understand what has worked and what hasn’t.”
The audit request was approved Aug. 9. The state auditor has not said when the review might be completed, but lawmakers said it could take place over the next year.
Anaheim city spokesman Mike Lyster said the city welcomed the review.
“This lease is already one of the most thoroughly reviewed and talked about in our city,” Lyster told The Epoch Times. “But we welcome any additional review and look forward to working with our state partners.”
The stadium lease typically undergoes full audits by the city every three to four years. The next audit is scheduled for 2025, according to Lyster. The city last audited the lease in 2018, followed by a delay in audits due to the pandemic.
“Annual parking, ticket, and event revenues and required capital spending under the lease are reviewed by the city each year,” Lyster said. “Our last full audit found general compliance with the terms of the lease.”
![A view of Angel Stadium before the Los Angeles Angels' home opener against the Seattle Mariners in Anaheim, Calif., on July 28, 2020. (Sean M. Haffey/Getty Images)](/_next/image?url=https%3A%2F%2Fimg.theepochtimes.com%2Fassets%2Fuploads%2F2020%2F08%2F22%2FGettyImages-12620737131-600x400.jpg&w=1200&q=75)
Anaheim entered an amended lease agreement in 1996 with the Angels. The lease expires on Dec. 31, 2029, with an option to extend the lease agreement terms with the same conditions for up to nine years.
The lease stipulates the team is responsible for keeping the stadium in good condition and repair equal to first-class professional baseball stadiums at its own expense. The city contributes $700,000 each year to the effort.
The city has not resumed efforts to sell the 151-acre stadium site and has not started talks with the team about an extended lease.
In a letter to the Joint Legislative Audit Committee on July 11, Umberg and Valencia claimed the team has spent $30 million on the stadium since 2012, with $4.55 million going to maintenance. The remaining money paid for upgrades to the scoreboard display, sound, and control room, and $2.1 million went to premium seat upgrades in suites and the diamond club area.
The city quickly ended the sale in 2022 after former Mayor Harry Sidhu was named in a federal corruption probe alleging a conflict of interest during negotiations.
![Anaheim Mayor Harry Sidhu speaks at the opening of a new COVID-19 testing site on July 15, 2020. Sidhu pleaded guilty last year to obstruction of justice, wire fraud, and lying to federal investigators during the now-defunct sale. His sentencing is set for Dec. 13, 2024. (John Fredricks/The Epoch Times)](/_next/image?url=https%3A%2F%2Fimg.theepochtimes.com%2Fassets%2Fuploads%2F2021%2F09%2F24%2FAnaheim-COVID-Test-Site_Mayor-Harry-Sidhu-3_JF_07152020-600x407.jpg&w=1200&q=75)
The negotiated settlement with Moreno’s company after the sale was voided required the city to pay SRB Management $5 million plus legal fees.
Anaheim settled with the company for $2.75 million in credit against a portion of future stadium revenue shared with the city.
The city receives revenue from baseball ticket sales, parking, and other stadium events, and uses the funds to pay for activities and operation of the city’s Convention, Sports, and Entertainment department.