Oakland Athletics Look for $500 Million Backer to Fund Vegas Ballpark
The Oakland A's are asking for more funds again.
As per a report in L.A. Times, team owner John Fisher has recently engaged a firm named Galatioto Sports Partners to attract potential investors. Their main goal is to support Fisher in raising $500 million out of the $1.1 billion he's anticipated to spend on the proposed $1.5 billion stadium for his team near the Las Vegas Strip. The ballpark plans to occupy 9 of the 35 acres earmarked for development after the Tropicana Casino resort's demolition in October.
Galatioto Sports Partners has been involved in over 100 sports financing transactions, including the Walt Disney Co.'s sale of the Los Angeles Angels (to advertising figurehead Arte Moreno) in 2004 and the Anaheim Mighty Ducks' (to Broadcom co-founder Henry Samueli and his wife) in 2005.
Is This the Field of Their Dreams?
In March, Forbes published its yearly list of MLB valuations, estimating the Athletics' worth at $1.2 billion. A $500 million stake from the team, at this valuation, equates to around 42% of the team.
However, Fisher might have to take a hit on the franchise's value by offering investors a significant discount, approaching majority ownership, due to the A's previous decision to generate lower earnings by playing in a minor league stadium in a secondary market for at least three years.
Additionally, a "flip tax" written into the relocation agreement could see Fisher paying a 20% tax on the total deal price if he were to sell the team before 2028.
Last June, Fisher secured $380 million in public funding from the Nevada legislature, but the legitimacy of this funding is being questioned by the Nevada State Education Association. The teachers union is attempting to put a referendum on November's ballot with the aim of revoking the approved bill, SB1, and leave the funding of the stadium's public resources open to voter decision.
The construction of the new A's ballpark is projected to commence later this year, according to the Las Vegas Stadium Authority, in time for the team to commence their 2028 season there, providing it goes ahead.
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