Bally’s Corporation and Gaming & Leisure Properties (GLPI) have reached a binding agreement with the Oakland Athletics of Major League Baseball, to site their new ballpark on a portion of the operator’s Tropicana Las Vegas property.
The US-based gambling business highlighted the potential “transformational” impact of the $1.5bn project on the company’s database as an important part of the business’s global, omni-channel strategy.
The agreement is subject to the passing of legislation for public financing, and approval for relocation by Major League Baseball.
Legislators in Nevada will be soon be asked to approve $395m of public financing for the project.
GLPI have additionally agreed to fund up to $175m towards certain “share improvements” at the site in return for a commensurate rent increase.
“We are excited about the potential to bring Major League Baseball to this iconic location,” said Oakland Athletics’ president Dave Kaval.
“We are thrilled to work alongside Bally’s and GLPI, and look forward to finalizing plans to bring the Athletics to Southern Nevada.”
Under the plan, Bally’s and GLPI will assign nine acres of the 35-acre site that is located on the Las Vegas Boulevard and Tropicana Avenue to the Oakland Athletics or related stadium authority. The venue is at present planned to accommodate approximately 30,000 fans at a time.
As a provision of the deal, Bally’s retains the ability to assign the rights to all aspects of this development and has received material interest from development partners.
First Major League Baseball team in Las Vegas
Bally’s president George Papanier said the business was “honored” to have been selected to partner with Californian baseball team.
“The Tropicana has been a landmark of Las Vegas for generations, and this development will enhance this iconic site for generations to come,” he added.
“We are committed to ensuring that the development and ballpark built in its place will become a new landmark, paying homage to the iconic history and global appeal of Las Vegas and its nearly 50 million visitors a year.”
GLPI chairman and CEO Peter Carlino emphasized the synergies that the development of the ballpark would have on the business’s remaining land on the site.
“The Oakland Athletics’ interest in developing a world-class Major League Baseball stadium on our site underscores its status as one of the most prime locations on the Las Vegas Strip and will enhance any future development of our remaining 26 acres,” he said.
“As the project moves forward, we also expect that GLPI will have opportunities to further invest in the various aspects of the overall project to the extent we deem that doing so will generate an attractive risk adjusted return on our shareholders’ capital.”