The renowned Oakland A’s once again find themselves extending a figurative cap, seeking additional finances. John Fisher, the team’s owner, seems to have a grand vision in sight, with this fundraising endeavor serving as a crucial stepping stone. His gaze is set on the Las Vegas strip, where he dreams of constructing a $1.5 billion state-of-the-art stadium to house his team in splendor.
To this end, Fisher has enlisted the services of Galatioto Sports Partners, a firm celebrated for its prowess in the sports financing domain. Over the course of its career, Galatioto has successfully kinetized more than 100 such financing deals, playing pivotal roles in prominent deals such as Walt Disney Co.’s sale of the Los Angeles Angels and the Anaheim Mighty Ducks. Fisher will be looking to channel Galatioto’s magic once more to raise a substantial $500 million, which forms a significant chunk of the $1.1 billion he aims to personally invest into this nouveau venture.
The coveted location for the new stadium is a nine-acre parcel of a total 35 acres that shall serve as a blank canvas once the legendary Tropicana casino resort is obliterated in October. This piece of land is located in one of the most glittering stretches of the world – the Las Vegas Strip.
In terms of ownership stakes, should Fisher indeed manage to raise $500 million worth of private investment, it would theoretically equate to approximately 42% of the franchise. This is based on Forbes’ annual list of MLB valuations released in March, which pegged the Athletics’ net worth at a cool $1.2 billion. However, the equation might need to be reworked, as Fisher may have to offer potential investors a discount – a move dictated by his latest strategic pivot of committing to a minor league ballpark in a secondary market for the forthcoming three years, thus leading to reduced revenue.
Adding another layer of complexity to the situation is the presence of a “flip tax” in the relocation agreement. This stipulates that Fisher would be liable to pay a 20% tax on the full sales price, should he decide to step off the field and sell the team before the year 2028.
While Fisher has successful under his belt a considerable $380 million he secured from the Nevada legislature last June, it’s anything but a calm journey. Its security is under threat from the Nevada State Education Association. The teachers union is ambitiously striving to place a referendum on the upcoming November’s ballot, which, if approved, could dismantle the hitherto sanctioned bill, SB1, and put the power to decide on public funding for the stadium in the hands of the general public.
If all falls into place, the construction of this dream project is expected to break ground later this year. As per the Las Vegas Stadium Authority, the work should wrap up aptly allowing the A’s to kick-start their 2028 season in their dazzling new home. But as with any undertaking of such magnitude and complexity, the looming clause remains – if it happens.
