The owner of the Oakland A’s is exploring the sale of a minority stake in the team to help fund its relocation to Las Vegas.
John Fisher, the billionaire owner and heir to The Gap clothing brand, plans to sell a 25% franchise share. Reports reveal that he is set to ask for $500 million for this stake.
Fisher is valuing the team at $2 Billion, a remarkable 66% increase from its previous valuation.
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According to Forbes, Fisher’s net worth is approximately $3.1 billion. He plans to contribute $850 million to the $1.5 billion construction costs.
Nevada lawmakers are expected to provide $350 million. Additionally, the team plans to secure a loan of $300 million to cover the remaining expenses.
Major League Baseball did not impose a relocation fee on Fisher, which could have reached up to $1 billion.
A Forbes assessment of team valuations showed that the small-market team was valued at just $1.2 billion leading into the 2024 season.
Only the Florida Marlins had a lower valuation, estimated at $1 billion. As Fisher looks to sell a stake in the Oakland A’s, two other available MLB teams could influence his negotiations.
The Chicago White Sox and the Minnesota Twins. The White Sox are valued at around $2 billion. Meanwhile, the Twins are estimated to be worth between $1.5 billion and $2 billion.
Nonetheless, Fisher anticipates a significant revenue increase once the A’s relocate to a new, taxpayer-funded stadium on the Las Vegas Strip.
The transition from Oakland to Las Vegas has shown potential for increasing the value of professional teams.
In 2019, during their final season in Oakland, the Raiders were valued at $2.9 billion. This ranked 12th among the 32 NFL teams.
Since then, their valuation has skyrocketed to $6.7 billion, elevating them to sixth place in the league. Additionally, the Raiders reported $780 million in revenue last year, the third-highest in the NFL.
Thanks to a development agreement with Bally’s, the Oakland A’s secured a nine-acre parcel of land to construct their free-of-cost 33,000-seat dome stadium. The stadium is planned to be at the former site of the Tropicana Hotel.
Earlier this month, the casino powerhouse demolished the iconic venue. The venue hosted legendary acts such as the Rat Pack and Siegfried & Roy.
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The land is estimated to be worth approximately $200 million. The construction of the stadium is expected to take about three years.
The A’s will be based in Sacramento as they prepare to transition to their new ballpark in Las Vegas for the 2028 season.
The Oakland A’s have finalized the sale of their stake in the Oakland Coliseum to the African American Sports and Entertainment Group. The team will sell its share of the 155-acre property for $125 million.
Fisher faced heavy criticism from fans this season for not keeping the team in Oakland, a city where the franchise has won four World Series championships.
The Oakland A’s featured several Hall of Famers, including Rickey Henderson and Dennis Eckersley. The team also gained fame through the hit movie Moneyball before Fisher purchased it for $180 million in 2005.
Fisher is rumored to be collaborating with the investment bank Galatioto Sports Partners to guide the process of selling a minority stake in the team.
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