The Oakland Athletics officially make their safe move to Las Vegas, and the gaming and leisure industry applauds the decision
It's official. Earlier Thursday, Major League Baseball (MLB) owners voted unanimously that the Oakland Athletics (A's) will move to Las Vegas. Gaming and Leisure Properties (NASDAQ: GLPI ), the owner of the land on which the new stadium will eventually be built, welcomed the decision.
A new stadium expected to open in time for the 2028 Major League Baseball (MLB) season will be located on nine acres of land owned by GLPI that is currently home to the Tropicana Hotel & Casino in Las Vegas. The integrated resort is operated by Bally’s (NYSE: BALY). While the decision to move the A's to Las Vegas dooms Tropicana Field to demolition (which Bally's might do anyway), at some point another venue could emerge near the ballpark.
The opening of the A's along with the new stadium and adjacent entertainment and casino resort, expected to open in 2028, is a transformational project for Las Vegas, baseball fans, the local community and local jobs. "We have a strong reputation for delivering unrivaled world-class entertainment options," the real estate investment trust (REIT) said in a statement.
In April 2021, Bally's acquired Tropicana's non-real estate assets from Gaming and Leisure in a $308 million deal. As part of the deal, the gaming company sold real estate assets at venues in Colorado and Illinois to GLPI Real Estate Investment Trust (REIT). They agreed to lease back the properties. Bally’s signed a 50-year lease with Tropicana, with prices starting at $10.5 million per year.
GLPI Long Term Bullish Stadium
Gaming and leisure executives have previously said the REIT would offer some compensation to Bally's if the A's move to Las Vegas is confirmed and results in the Tropicana being demolished. No relevant points were mentioned in the statement. But it's clear that without an acquisition, Bally's won't own an integrated resort in Las Vegas for some time.
GLPI has long been optimistic about the stadium project. The REIT has committed $175 million to the venture, and last month one analyst noted that the company could match that amount.
Perhaps coincidentally, the casino owner announced Wednesday the sale of $400 million in corporate bonds due in 2033. The senior notes carry a coupon rate of 6.750%. However, GLPI has not said whether the deal is related to stadium financing.
"Bally's and GLPI have agreed to transfer the stadium site subject to the satisfaction of various conditions in exchange for the revenues the stadium is expected to contribute to the site, a new integrated casino and entertainment resort being developed in the Las Vegas and surrounding areas, "Today's statement said.
Las Vegas now has four professional teams and lacks the NBA
With the addition of the Athletics, Las Vegas will be home to four professional sports teams, three of which are moving to the city from other areas. The A's and NFL's Raiders both came to Sin City from Oakland, while the two-time WNBA champion Aces moved from San Antonio to Las Vegas.
The defending Stanley Cup champion Golden Knights are the city's only "organic" professional team.
With the Athletics on the horizon and the Cavaliers and Raiders already in town, the NBA's absence in Las Vegas seems even more conspicuous. However, expansion of this league may still be several years away.
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Source: www.casino.org
