Major League Baseball team owners just unanimously gave the Oakland Athletics their blessing to move to Las Vegas.
It was a big hurdle, and lots of stories were written about it. But one story that hasn’t gotten as much attention is one that could kill the move outright: Where will the team get the funding?
The stadium could cost $1.5 billion. Nevada is giving the A’s owner and billionaire John Fisher $380 million. What happens if Fisher can’t get loans or private investors for his $1.1 billion share of the expense?
And what happens if the teacher union-backed Schools Over Stadiums referendum goes on the ballot in 2024? Will the promised public funding go away — which could mean a reversal of the $300-million MLB relocation fee waiver on top of added financial responsibility for Fisher?
Nevada Independent gaming/sports business reporter Howard Stutz explained the road ahead for the A's and Las Vegas.
On how Fisher might get the rest of his funding
"That is the question that I have been asking since the [2023] legislature," says Stutz. "It's very different from the Raiders. We knew what the Raiders were going to do — they have the $750 million in room tax, which is very different from the tax structure [and] public money coming for the A's. Dave Kaval, the president of the A's, said the Fisher family is going to put in the largest private investment ever put up for a team. There's talk Goldman Sachs is going to help fund some of this. There's other financing. We just don't know that structure yet. ... Does anybody want to put up $1 billion of their own money? Some do, some won't. Mr. Fisher hasn't really shown that he's going to do that.
On what happens after the A's secures its private funding
"[There's] the lease that [has] to be approved by the stadium authority, the public benefits package, the timeline for construction, the FAA has to sign off on the stadium because of the proximity of the ballpark to Harry Reid International Airport," says Stutz. "So there are a lot of agreements that need to be done within the next year before the A's can even ask the county for the money for public financing ... we're not going to see much other than public meetings and different announcements over the next year."
On what happens if Schools Over Stadiums succeeds
"First off, they gotta get it on the ballot," says Stutz. " They're going to challenge the judge's ruling in the Nevada Supreme Court. But they could go ahead and just redo the petition ... they've got to get 100,000-plus signatures to put it on the ballot. ... They are going to face fierce opposition; every labor union in the state is supportive of the A's including the Culinary and all the building trades. All the chambers of commerce in Las Vegas and Southern Nevada are supportive of the A's. ... I think the biggest fear is: Anywhere you've [seen] a ballot question for public money for a stadium. it's lost. ... I think it's the last thing the A's and other supporters want to see."
On locals filling that stadium
"The question is, are they relying too much on tourism to fill the stadium?" says Stutz. "That's the big question — [if] they're going to get 2.4 million visitors to fill that stadium for 80-something games, [a] total [of] 33,000 seats, along with locals. The first pitch at the new ballpark wouldn't take place until April 2028. So there's some time here to see how this works out."
On Oakland-based A's fans still supporting the team like their Raider-fan neighbors
"Baseball is very, very different," says Stutz. "And I think the A's are gonna have to build a fan base here in Las Vegas — that's what it's gonna take. Don't rely on the Oakland fan base. They're gonna go look somewhere else. Some will come; there'll be some diehards. Look, you're gonna get a good crowd here in Vegas when the Yankees come, or the Dodgers come, or when [superstar player Shohei] Ohtani comes — with whatever team he's with at that time. ... But think about a 100-degree Monday, Tuesday, Wednesday in August when the A's are playing the Detroit Tigers. Whether the Tiger fans are gonna make the trek, I don't know."
Guest: Howard Stutz, gaming, tourism and sports business reporter, The Nevada Independent
