SAN FRANCISCO — Major League Baseball’s owners on Tuesday approved a $10 million relocation fee for the San Francisco Giants, giving the team an estimated $3.1 million to help cover the cost of relocating to California from New York.
The San Francisco 49ers and the Los Angeles Dodgers have also agreed to pay the Giants relocation fees, as has the Chicago Cubs, who have agreed to sell their team to FOX.
The Giants will pay $5 million to relocate from the California Stadium in Santa Clara to their new home in San Jose.
The team will be able to collect $2 million in relocation fees each year for 25 years, with $1 million each year in the first year.
They can collect the rest of the money each year once they relocate to California, which is slated to happen in 2026.
The 49ers will pay the relocation fee of $3 million per year until 2027, and the Dodgers will pay about $1.1 in relocation fee annually until 2028.
The Giants will be paid $2.5 million in each year until 2025, and $2-3 million in 2019.
The Los Angeles Giants will start the relocation process in 2019, and they can collect $1,750,000 per year in relocation payments for 25-years until 2035.
The money will be used for the construction of the stadium, as well as other costs such as the naming rights to the stadium and the stadium-related infrastructure, including concessions, stadium security, parking, media and entertainment facilities, as they are currently constructed.
The teams agreed to a 30-year lease agreement, which includes a 50-year commitment to play in the California stadium, and a 20-year term for the ownership group.
The deal was approved by the owners at a meeting of the owners and the teams’ general managers on Tuesday in San Francisco, with 49ers President John Mara and Dodgers CEO Andrew Friedman and Giants President and CEO Larry Baer meeting with the owners for the first time on Tuesday.
A relocation fee was approved for the Giants, which will be the third major league team to pay relocation fees for relocation.
The Yankees and Astros each paid $10.1 billion for their move to Houston, while the New York Yankees and Los Angeles Angels each paid about $3 billion for a move to their current stadium.