LAS VEGAS — The Athletics are on the verge of a significant advancement in their relocation to southern Nevada as the Las Vegas Stadium Authority is poised to approve a 30-year lease agreement, along with related non-relocation and development documents. This comes in the wake of a substantial increase in the projected cost of the new stadium, which has risen by $250 million, bringing the total to an estimated $1.75 billion.
Approval of these agreements would help clear the path for construction to commence in the spring on a stadium located on the Las Vegas Strip, scheduled to open in time for the 2028 MLB season. The plans for the venue include modern features such as cooling systems integrated into the seating.
Steve Hill, president and CEO of the Las Vegas Convention and Visitors Authority, has expressed confidence for several months that these agreements would move forward. Although a backup meeting is set for December 12 in case approval is delayed, Hill believes that meeting may be unnecessary. “Our board still has an opportunity to review everything and ask questions,” he stated, adding that the board has thoroughly examined the documents over a lengthy period, indicating they are likely ready for approval.
Nevada and Clark County have agreed to contribute $380 million in public funding for the construction of a domed stadium that is designed to hold 30,000 fans, but could accommodate up to 33,000. Public funding will only be activated once the Athletics invest a minimum of $100 million, and according to club executive Sandy Dean, they have already committed $40 million to that end.
Dean further disclosed that club owner John Fisher has augmented his family’s financial commitment by an additional $100 million, bringing the total to $1.1 billion. Additionally, U.S. Bank and Goldman Sachs are collaborating to provide a $300 million loan, while Fisher remains hopeful of attracting more investors from Las Vegas and beyond to acquire equity in the team.
The hike in construction costs has been attributed to inflation and design modifications that have expanded the stadium’s footprint by 70,000 square feet. Dean commented on this saying that improving fan and player amenities, enhancing acoustic performance for concerts, and ensuring maximum comfort through under-seat cooling have added significant value to the design process.
To demonstrate that financing is secured for the stadium project, four letters will be submitted, confirming:
– Loan commitments from U.S. Bank and Goldman Sachs.
– Fisher’s family possesses the capacity to fulfill their financial obligations.
– A financial review by U.S. Bank supports that Fisher has adequate funds available.
– Commitments to Athletics StadCo LLC, which has been established to manage private investments.
There remain additional matters to address before the stadium’s construction reaches completion, including finalizing a development agreement with the county. However, if the Stadium Authority grants approval, the next milestone would likely be the groundbreaking ceremony.
As for the Athletics’ immediate future, the team is set to play the next three seasons at a minor league facility in West Sacramento, California. This follows their recent conclusion of 57 seasons in Oakland, California.
Hill expressed his satisfaction with the progress, emphasizing the importance of securing such deals for Las Vegas. He noted that the sports community is closely monitoring these developments, stating, “Bringing Major League Baseball to Las Vegas and establishing a new venue like this is a tremendous opportunity that doesn’t come along often for cities.”
