On June 15, Nevada Governor Joe Lombardo gave his signature to SB1, cementing the $380 million public financing package for the Oakland A’s proposed $1.5 billion stadium on the Las Vegas Strip on the site where the Tropicana now sits.
The signed bill is an amended version of SB509, the original measure that petered out before the regular legislative session adjourned June 5. State lawmakers then spent seven days in a special session hashing out the terms for the updated version that passed the state Legislature June 14.
In all, the main points of the package are largely the same as originally proposed: the state may now dole out as much as $180 million worth of transferable tax credits to the team, which can be sold to other businesses. Clark County will issue up to $120 million in bonds (the exact amount is unknown at this time due to changes in interest rates) as well as a $25 million credit for infrastructure costs related to stadium construction.
The team will also be granted a 30-year property tax exemption, which economists have estimated to be worth approximately $50 million to $55 million.
Lombardo signed the bill in a somewhat impromptu fashion, as team officials were not present and there was little press availability or advance announcements.
However, the governor’s office did indicate that a grander, more ceremonious signing would be held in Las Vegas in the coming weeks, per the Nevada Independent.
A’s brass, including team owner John Fisher and team President Dave Kaval, were across the country in New York City attending the annual Major League Baseball (MLB) owner’s meetings. There was some thought in previous weeks that the rest of the league’s owners would vote on the relocation during the meetings, but the general consensus now is that the vote will take place later this year.
In a statement delivered after the signing, Lombardo said that the passage of SB1 is “an incredible opportunity to bring the A’s to Nevada, and this legislation reflects months of negotiations between the team, the state, the county, and the league. Las Vegas’ position as a global sports destination is only growing, and Major League Baseball is another tremendous asset for the city.”
Despite the bill’s passage, the team still faces some hurdles before the relocation is 100 percent official—aside from approval from the league’s owners, the team will also need to scrounge up more than $1 billion in capital to complete the stadium financing, which is a tall task for one of the lowliest franchises in professional sports.
“We will now begin the process with MLB to apply for relocation to Las Vegas,” the A’s said in a statement released June 15. “We are excited about Southern Nevada’s dynamic and vibrant professional sports scene, and we look forward to becoming a valued community member through jobs, economic development, and the quality of life and civic pride of a Major League Baseball team.”
With regard to the league, MLB Commissioner Rob Manfred has said numerous times that Oakland’s RingCentral Coliseum, one of the oldest non-renovated stadiums in MLB, was not tenable for the team long-term.
In comments given to the Athletic in New York after the passage of the bill, Manfred said that there is “a pretty thorough relocation process that the club now needs to go through as a prelude to a vote of the clubs,” but refused to “predict a timeline” as to how this might play out.
Instead, Manfred put the onus on the team, positing that the process will depend on “how quickly the A’s can get their formal relocation application together.”
The language of SB1 places a lot of influence in the hands of the Las Vegas Stadium Authority (LVSA), a nine-member board that was established when the Raiders’ Allegiant Stadium was constructed. The LVSA, which oversees Allegiant, will also oversee the A’s new stadium as well.
According to details reported by the Independent, the A’s will need to negotiate with the LVSA to establish agreements for a stadium lease, a non-relocation clause and a community benefits package. Additionally, the team and its yet-to-be-named development partner(s) must cover the first $100 million in stadium construction costs before the public funds can begin to be utilized.
SB1 also includes a number of amendments that were added over the course of the special session, including heightened and expanded community benefit commitments with the LVSA, a clause tying the stadium site to the site of the Tropicana and the revival of two bills that were previously vetoed by Lombardo.
Due to the site’s proximity to Harry Reid International Airport, the Federal Aviation Administration will also need to be involved in a number of steps in the design, layout and construction processes.
Back in Oakland, A’s fans, who have long advocated for Fisher to sell the team so that it may stay in town, came out in full force for a “reverse boycott” for the A’s home game against the Tampa Bay Rays June 14, one of the most shocking displays of fan displeasure in recent memory.
Instead of the team’s average attendance of 8,555—which is the lowest in MLB—a whopping 27,000-plus fans packed the stadium with bright green shirts adorned with a single word addressed to Fisher and team officials: “SELL.”
The most remarkable moment from the stunt came at the top of the 5th inning. In unison, the fans stood and remained deathly silent as the inning started; then, after a few minutes of eerie silence, a raucous chant of “SELL THE TEAM” became so loud that it drowned out the broadcast and made the players think that their equipment was malfunctioning.
