The Athletics’ relocation to southern Nevada is poised to advance significantly on Thursday.
The Las Vegas Stadium Authority is expected to approve the 30-year lease, along with non-relocation and development agreements.
This comes in light of a $250 million increase in the estimated cost of the ballpark, now totaling $1.75 billion.
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These agreements represent the final major obstacles before construction can kick off in the spring for the stadium on the Las Vegas Strip.
Nevada and Clark County are set to contribute $380 million in public funds for the construction of a domed stadium. There is an estimated capacity of 30,000, which could expand to accommodate 33,000 fans.
Public financing will commence only after the Athletics invest at least $100 million. A’s club executive Sandy Dean recently noted that the team has already invested $40 million.
U.S. Bank and Goldman Sachs are also expected to provide a $300 million loan. Fisher is still actively seeking investors in Las Vegas and beyond who might be interested in purchasing equity in the team.
In June, U.S. Bank reviewed its financial records to secure the Fisher family’s portion of the $300 million construction loan for the Athletics.
They have confirmed that the family is capable of fulfilling the $1.1 billion equity contribution needed for the stadium project.
The family of John Fisher, the owner of the Athletics, has sufficient financial resources to fulfill its financial obligations for the proposed Las Vegas ballpark, as stated by U.S. Bank.
This information was part of a letter from Stephen Vogel, Senior Vice President at U.S. Bank, which was presented to the Las Vegas Stadium Authority prior to the board of directors’ meeting on Thursday.
The meeting’s agenda includes the financial plan for the A’s, an increase in the project’s budget, and several agreements awaiting approval.
With the overall stadium budget increasing by $250 million to a total of $1.75 billion, the Fisher family is expected to contribute $1.1 billion in equity and secure a $300 million construction loan from U.S. Bank and Goldman Sachs.
This adds up to $1.4 billion. The rise in construction costs is attributed to inflation and design changes that have expanded the project by 70,000 square feet.
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Four key letters will be provided to demonstrate that financing is secured for the ballpark, regardless of whether Fisher manages to attract investors:
— A commitment letter for loans from both banks.
— Assurance that Fisher and his family can fulfill their financial commitment.
— A review of Fisher’s finances by U.S. Bank confirming that he has adequate funds available.
— Commitments made to Athletics StadCo LLC, the entity formed to oversee the private capital investments.
However, there are still other matters to address before the stadium can be finalized. The priority is a development agreement with the county.
If the Stadium Authority approves the necessary documents, the next significant milestone will likely be the groundbreaking ceremony.
The Athletics are set to begin construction on their new ballpark in Las Vegas this spring. They are aiming to have it ready for the 2028 MLB season.
The stadium will be constructed on 9 acres of the 35-acre Tropicana Las Vegas property.
In the meantime, the A’s will play at least the next three seasons at a minor league facility in West Sacramento, California, following the conclusion of their final season in Oakland after 57 years.
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