Posted on: October 23, 2024, 02:44h.
Last updated on: October 23, 2024, 02:46h.
Ahead of the team’s move to Las Vegas, the soon-to-be former Oakland Athletics (A’s) are rumored to be considering the sale of a minority interest in the franchise.
Unidentified sources familiar with the matter told The New York Post owner John Fisher is looking to sell as much as 25% of the team for $500 million, implying the Major League Baseball (MLB) club is worth $2 billion. That’s significantly higher than the $1.2 billion Forbes said the team was worth before the start of the current season. At $1 billion, only the Miami Marlins were worth less than the A’s.
The rumor surfaced a week after the team and Bally’s released renderings for a stadium and casino hotel project at the site formerly occupied by the Tropicana on the Las Vegas Strip. The $1.5 billion ballpark will occupy nine of the property’s 35 acres and construction on it is slated to start in the second quarter of 2025.
The A’s will play in Sacramento for the 2025 through 2027 seasons with 2028 expected to be the club’s first in Las Vegas.
A’s Stake Sale Prices in Vegas Move
If the speculation that Fisher is trying to sell a 25% interest in the A’s at a $2 billion valuation proves accurate, he’s attempting to leveraging to the team’s move to Las Vegas. Essentially, he’s hoping potential investors will agree that the team’s value will increase upon moving to Sin City.
There is some precedent for the Oakland-to-Las Vegas move being a value creator for professional teams. In 2019 — the NFL team’s last in Oakland — the Raiders were valued at $2.9 billion, good for the 12th spot among the league’s 32 teams. That valuation has since surged to $6.7 billion, placing the Raiders sixth in the NFL. Last year, the Raiders generated $780 million in revenue — the third-highest tally in the league.
Owner Mark Davis has capitalized on the team’s soaring value, recently selling a 5% stake to legendary quarterback Tom Brady at an estimated price tag of $335 million.
As The Post reported, potential sales of the Chicago White Sox and the Minnesota Twins — both of which could command up to $2 billion — could affect Fisher’s efforts to monetize a portion of the A’s.
$500M Interesting Figure
It’s not yet clear if the following factors are related, but the dots are easy to connect. Fisher is reportedly attempting to sell up to $500 million worth of his baseball team and that is the amount the club needs to finalize its $1.1 billion Las Vegas stadium financing obligation.
Gaming and Leisure Properties, which owns the property on which the stadium will reside, has committed to providing some financing to the project.
From where Bally’s will obtain capital to build a new integrated resort next to the stadium isn’t yet clear. The regional casino operator is focusing on completing its permanent Chicago venue, but has been consistent in its messaging regarding a desire to maintain a long-term presence in Las Vegas.
