As the Athletics await the fate of their proposed Las Vegas stadium's public funding bill in the Nevada State Legislature, the team reportedly is working behind the scenes to finance its $1.1 billion portion of the $1.5 billion project.
Details of the A's private funding plan won't be revealed until Senate Bill 1, the $380 million tax package formerly known as SB 509 that failed to pass in the Legislature's regular session, is approved by lawmakers and signed by Nevada Gov. Joe Lombardo, representatives working with the organization have said.
But The Nevada Independent reported Tuesday, citing a source close to the negotiations, that A's management is working with investment firm Goldman Sachs on a combination of debt and equity financing covering no less than $1.1 billion "to be finalized once a stadium development agreement is completed."
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Legislators reconvened this week to discuss SB 1 in a special session, which originally began last Wednesday and adjourned for the weekend the following day. As the A's request public funds to help construct a 30,000-seat stadium on a 9-acre site where a portion of the Tropicana Hotel and Casino currently sits, they have yet to publicly discuss how they plan to pay for the remaining balance.
But the project's private financing piece requirements are included in SB 1 (h/t The Nevada Independent).
The A's are required to have "irrevocable financing in place" before Clark County can issue development bonds for the proposed stadium, according to Section 34 of the bill, and other requirements include letters of credit or commitments from banks that are “rated BBB+ or better by Standard & Poor’s Rating Services or Baa1 by Moody’s Investors Services.”
As far as other funding sources, if the legislation passes, the team would receive up to $175 million from real estate investment trust Gaming and Leisure Properties to be used for “certain shared improvements within the future development in exchange for a commensurate rent increase," according to the press release put out to announce the A's deal with Bally's Corporation and GLPI for the Tropicana site.
Athletics
The A's reported negotiations with Goldman Sachs share similarities with the Las Vegas Raiders' quest to build Allegiant Stadium back in 2016. Per The Nevada Independent, the Raiders secured a $650 million loan from Bank of America to fund part of their $1.2 billion portion after Las Vegas Sands pulled a previously agreed-upon contribution off the table.
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Before Bank of America stepped in, Goldman Sachs initially was involved in the Allegiant Stadium deal.
And now, it looks like the financial institution could end up fronting the bill for a different stadium along The Strip.