A's clear the last major hurdle for a $1.75 billion Las Vegas stadium
The Las Vegas Stadium Authority approved lease, non-relocation and development documents Thursday to clear the last major hurdles for the Athletics to construct a $1.75 billion stadium on the Strip and bring Major League Baseball to the expanding sports market.
The lease and non-relocation agreements each cover 30 years.
"It's a really significant day in Las Vegas," Steve Hill, CEO and president of the Las Vegas Convention and Visitors Authority, said in his closing remarks. "Today's a real milestone. I think we should recognize that and celebrate that."
That drew applause from most of those attendance.
Other details remain to be worked out, such as a development agreement with Clark County, but groundbreaking likely will take place in the spring to allow a scheduled opening for the 2028 season.
The cost for the A's stadium has risen by $250 million because of inflation and added fan and player amenities, club executive Sandy Dean said. They includes an under-seat cooling system and a split lower bowl to bring the crowd closer to action.
Nevada and Clark County are providing $380 million in public funds for a 30,000-seat domed stadium estimated to have a 33,000 capacity. Public financing doesn't begin until the A's have spent at least $100 million, and Dean said the organization already has invested $40 million.
Dean also said club owner John Fisher increased the previous pledge of his family's money to $1.1 billion. Dean said U.S. Bank and Goldman Sachs will offer a $300 million loan. Fisher still hopes to attract investors in Las Vegas and elsewhere who would purchase equity in the team, according to Dean.
"Any overages are the responsibility of the A's," Hill said during the board meeting. "This may not be the last time the costs rise."
Hill also said he had full confidence the Fisher had finances to meet obligations. The board also approved that the A's have the ability to pay for their share of the ballpark's construction.
Four letters were included in documents to the Stadium Authority board meeting to show that the financing is in place even if Fisher doesn't attract investors. They include:
- A loan commitment from both banks.
- Statements Fisher and his family have the ability to meet their financial pledge.
- A U.S. Bank review of the owner's finances that backs up Fisher assertion he has money in place. Steve Vogel, who oversees the bank's sports investments, told the board based an analysis of Fisher's brokerage statements, filings with the Securities and Exchange Commission and other documents that Fisher has "assets more than sufficient to fund the equity portion" of the stadium's construction.
- Commitments to Athletics StadCo LLC, an entity created to handle the private capital investment.
The A's will play at least the next three seasons at a minor league ballpark in West Sacramento, California. They recently played their last of 57 seasons in Oakland, California.
The LVSA decision came hours after news broke that the A's had reached an agreement to sign free-agent pitcher Luis Severino to a $67 million, three-year contract, the richest deal in club history.
The A's would add another professional team to a Las Vegas market that also includes the NFL's Raiders, NHL's Golden Knights and WNBA's Aces. The Golden Knights and Aces have combined to win three championships in recent seasons.