Athletics Rumors

The A’s stadium drama has been one of MLB’s biggest storylines of the past couple months. The franchise has already expressed its hope for getting a deal done in Las Vegas that’d allow them to relocate out of Oakland within the next couple years. They’ve entered into a pair of land purchase agreements for potential stadium sites in recent months, but the franchise’s biggest hurdle — a public financing agreement with the Nevada legislature — has yet to get off the ground.

Reports on Monday suggested the organization was likely to formally put forth a funding proposal by the end of the week. That still hasn’t happened, and multiple reports yesterday indicated potential reluctance on the legislature’s part to meet the A’s ask. The franchise’s as-yet unofficial proposal is expected to call for $395MM in public funding via Clark County-issued bonds to be paid by tax dollars related to the stadium project. Initially, the organization was set to pursue $500MM in bonds before revising their anticipated ask after changing their target stadium site.

Even that “diminished” $395MM figure seems to be beyond the legislature’s comfort. Both Mick Akers of the Las Vegas Review-Journal and Tabitha Mueller/Howard Stutz of the Nevada Independent reported yesterday the legislature wasn’t keen on the $395MM price tag. The respective reports present differing details on precisely how large the gap between the organization and state is.

The Nevada Independent suggests the legislature is mulling an approval of $150-195MM in tax credits, which would leave a $200MM+ gap on the organization’s desired figure. The Review-Journal pegs things more closely, reporting that government officials are willing to commit $320MM in financing. That’d be a much smaller but still not insignificant $75MM shy of the A’s goal.

Akers writes that the A’s formal financing proposal is now not expected to go in front of the legislature until sometime next week. Lawmakers are only in scheduled session through June 5, leaving a small window for a deal to be approved before the session is set to close. The governor or 2/3 of the legislature can choose to call a special session to continue negotiations beyond June 5 if necessary, Mueller and Stutz note.

In any event, there’s an increasing sense of urgency for the organization to accelerate talks. The franchise is hoping to build a 30,000-seat retractable roof facility with an estimated $1.5 billion price tag on the south end of the Vegas strip. Just over $1.1 billion would be paid by the A’s under their expected proposal, with the $395MM in public funding accounting for the remainder of the costs. It’s to be seen whether either side will budge on the funding discrepancy (however large it is at present) to get a deal done.

Under the 2022-26 collective bargaining agreement, the A’s have until next January 15 to sign a stadium deal somewhere if they’re to retain their status as recipients of revenue sharing. It’s clear the organization hopes that’ll be in Vegas, though there remains some chance they turn their focus back to Oakland if talks with the Nevada legislature fall apart.

The Athletics are continuing to pursue their potential relocation to Las Vegas and will likely be filing their funding bill with the Nevada Legislature in the coming week, per Mick Akers of the Las Vegas Review-Journal on Twitter, who adds that there will be enough time to get the deal done during the current legislative session.

The timing is significant on a couple of fronts. The current Nevada legislative session adjourns on June 5 and there’s no even year session, meaning there won’t be another chance for the A’s to file until early 2025, after the 2024 election. Under the terms of the recent collective bargaining agreement between Major League Baseball and the MLBPA, the Athletics have until January 15 of 2024 to sign a contract for the construction of a new facility in order to retain their status as revenue sharing recipients.

It was reported last month that the club had agreed to purchase 49 acres of land west of the Las Vegas Strip, though a later report indicated the club had pivoted to the site of the Tropicana hotel on the Strip. That hotel is owned by Bally’s Corporation, on land leased from Gaming and Leisure Properties Inc. The former plan would have involved asking for $500MM in county-issue bonds but the latter plan involves a lesser ask of $395MM.

Akers’ report provides some details on the latter plan, indicating that Bally’s and Gaming and Leisure Properties Inc. will be giving nine acres of the land to the A’s. Akers speaks with Bally’s Corp. Chairman Soo Kim in the piece, who estimates that land on the Strip is worth about $20MM per acre, making the total value of that land around $180MM. Once the 30,000-seat stadium with retractable roof is completed, the A’s would contribute the land to the Las Vegas Stadium Authority, following a similar path to the Raiders and Allegiant Stadium. Bally’s has plans to build a new hotel-casino on the remaining portion of the land once the stadium is completed, though it’s still being determined if the Tropicana would shutter completely during construction or stay open as the work is done in phases.

The A’s currently have about three weeks to submit their proposal and get it approved before the legislative session is done. Whether they will succeed in that regard remains to be seen.