The principal owner of the Oakland Athletics has taken one more step in gathering funding for the move to Las Vegas. According to Bill Shaikin of the LA Times, owner John Fisher hires Galatioto Sports Partners in an effort to source the differences in funds needed. Fisher is seeking about a $500 million investment from outside sources. With this hiring, the goal is to attract a investors to help along the A’s relocation to Las Vegas. In return, the investors would receive a piece of ownership stake.
The Long Road for A’s Relocation to Las Vegas Continues
The A’s have received $380 million in public funding for the new Las Vegas stadium. The total cost of the new stadium is a staggering $1.5 billion. John Fisher is responsible for securing the funds for the portion not covered by public funds.
During this process, the Fisher family has stated that they would come up with the funds to cover the remaining money needed. However, based on the report from Bill Shaikin, it seems that Fisher is once again trying to walk that back. By looking for an investor, it signals that Fisher isn’t going to come up with the funds through his own means, but rather find a partner or two. The team is set to play in a minor league stadium for the next few years, it makes sense to try to advance the timeline, though it does come at a cost.
Fisher and the team have already alienated most of the fan base. With low attendance and even reverse boycott nights, fans aren’t happy with the A’s relocation. It’s a reasonable stance, given that the move is only benefiting one person, or one person’s family in John Fisher. With decreased revenues, Fisher may not be able to secure the funds needed by himself and through the team.
Financial Details Could Continue to Muddy the Process
Galatioto Sports Partners will be looking for one or more investors to help reach the $500 million target. With the dollar figure needed, it does bring to question selling a huge chunk of Fisher’s ownership stake. According to Shaikin, Fisher has been looking for a partner to sell a minority stake in the team to. Hiring of Galatioto Sports Partners can further that initiative. With the A’s valued at $1.2 billion according to Forbes, the cash could be secured from a sale of 42% of the team. However, it’s possible a single investor would want majority control. It’s also possible Fisher might not want to sell that much of the team.
Compounding the issue for Fisher is a “flip tax” included in the relocation agreement. A sale of the team would require Fisher to pay a 20% tax if sold before 2028. That’s right around the expected time the A’s relocation to Las Vegas would be complete.
Whatever ends up being the decision, it needs to happen soon. According to reports by Shaikin, the timeline of 2028 was already a tight one, and if ground isn’t broken by 2025, it’ll be tough to see the A’s relocation being complete in time. Unfortunately for A’s fans, this just adds insult to injury when Fisher may have been able to do the same type of work to keep the team in Oakland, instead of jettisoning off a historic franchise to Las Vegas.
More must-reads: