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On November 16, 2023, Major League Baseball’s (MLB) owners voted unanimously to approve the relocation of the Oakland Athletics (A’s) to Las Vegas. The decision was applauded by Gaming and Leisure Properties (NASDAQ: GLPI), the owner of the land where a new stadium will be built.
The new stadium is expected to open before the 2028 MLB season and will be located on nine acres of land currently occupied by the Tropicana Las Vegas casino hotel, operated by Bally’s (NYSE: BALY). The approval of the A’s moving to Las Vegas seals the fate of Tropicana’s demolition, and it’s possible that another gaming venue will be built near the new ballpark.
According to a statement issued by the real estate investment trust (REIT), the arrival of the A’s and the new stadium represents a transformative project for Las Vegas, baseball fans, the local community, and employment opportunities in the area. This project is expected to build on the city’s reputation for delivering world-class entertainment options.
In April 2021, Bally’s acquired Tropicana’s non-real estate assets from Gaming and Leisure in a transaction valued at $308 million. As part of the deal, Bally’s has a 50-year lease for Tropicana, starting at $10.5 million annually.
Gaming and Leisure Properties (GLPI) has been supportive of the stadium project, committing $175 million in financing to the endeavor. The company recently announced the sale of $400 million worth of corporate debt maturing in 2033, but it did not confirm if this transaction is related to stadium financing.
The addition of the A’s makes Las Vegas home to four professional sports teams, including the NFL’s Raiders, the two-time WNBA champion Aces, and the defending Stanley Cup champion Golden Knights. However, the city still lacks an NBA team, and it could be a couple of years before there’s any movement on expansion by the league.