Financing headache for A’s new ballpark

Article posted by Coliseum, August 7^th, 2024

Image: Oakland Athletics

Major League Baseball’s (MLB) Oakland A’s are understood to have run into a potential hurdle in terms of the financing of their new ballpark in Las Vegas.

SI.com said the A’s financing plan is well known, and the biggest portion of the $1.5 billion ballpark is to be paid for with an $850 million equity investment.

But in a recent report from the Nevada Independent, JMP Securities analyst Mitch Germain is quoted as saying, “The last piece of the puzzle was private financing obtained by the owner for the remaining cost of the stadium. Chatter suggests this may have hit a roadblock.”

The Oakland Athletics (often referred to as the ‘A’s’) are an American professional baseball team based in Oakland, California (US). The Athletics compete in MLB as a member club of the American League West Division.

The 33,000-capacity New Las Vegas Stadium is a fixed roof ballpark to be built on the site of the now-closed Tropicana Las Vegas on the Las Vegas Strip in Paradise, Nevada (US).

It is planned as the new home stadium of the Oakland Athletics when the team relocates from Oakland to Las Vegas.

It is nearly 16 months since the A’s announced they were leaving Oakland for Las Vegas, and nearly 14 months removed from the Nevada legislature handing over $380 million in funding for the plan.

The ‘A’s’ are working to finalize drafts of its development, non-relocation and lease agreements with the Las Vegas Stadium Authority. The development agreement will detail the construction plans and how the project will be funded.

Owner John Fisher said in January that about $1 billion in stadium construction costs remaining after the $380 million in public funding would mostly be funded with equity from his family.

But he noted that he was interested in potentially raising capital for the ballpark from outside investors, especially ones who are based in Nevada

He said at the time, “That creates a connection to the community, and we’ve seen that with a lot of other teams become successful things.”

The A’s have already had their relocation approved by MLB, they have financing from Vegas, and they are leaving Oakland at the conclusion of the 2024 season for a temporary stay in Sacramento.

The Athletics, as part of their efforts to relocate to Las Vegas in time for the 2028 season, will play their home games for the 2025-27 seasons at Sutter Health Park in Sacramento, California. The deal includes an option for a fourth season.

Sutter Health Park opened in 2000 and seats around 14,000 including outfield lawn open seating. That’s significantly less than the average MLB stadium.

SI.com further stated that there is a reason that those in Sacramento are excited about the A’s coming to town, and it’s not because they want to fall in love with a team for three, maybe four, seasons before wishing them well as they leave for Vegas.

According to the website, “It’s because Fisher has a history of not getting across the finish line with these ballpark deals, and if the A’s are in Sacramento if/when Vegas falls apart, then they feel they’d have a better chance of keeping the team long-term.

“Until John Fisher officially secures financing for the proposed Las Vegas ballpark, nothing is certain with the A’s relocation plan.”

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