Representatives from the Oakland Athletics (A’s), Major League Baseball (MLB) and Nevada officials attended a symbolic groundbreaking ceremony for the team’s new stadium on the Las Vegas Strip. The $1.75 billion project is scheduled for completion in 2028.
The new arena will have a capacity of 33,000, making it the smallest stadium in the league. Still, those involved believe the prime location will help boost the economy of a region known for its gaming and luxury casinos.
The structure will feature a tiered roof and cutouts reminiscent of the Sydney Opera House, as well as a large glass window that allows views of the Strip without compromising the visibility of the athletes.
The stadium will be built on the site of the former Tropicana Las Vegas, which was demolished last October. Construction officially began in April, taking up nine of the 35 acres available on the site.
Partnership involves stadium and casino at resort
The A’s, Gaming and Leisure Properties (GLPI), which owns the land, and Bally’s Corporation have entered into an alliance. Bally’s has secured the right to build a casino resort on the remaining 15 acres. Bally’s new development was initially expected to follow the stadium’s schedule.
A’s owner John Fisher said during the ceremony: “I think those conversations need to happen with them. What they’ve shown us is exciting.”
Bill Hornbuckle, CEO of MGM Resorts International, highlighted the need for a more defined plan: “Bally’s has yet to define a real plan.”
Despite the statements, there is still no detailed information about the progress of the project, which raises doubts about the viability of the project. Bally’s announced its plans in October, but has not updated since then.
Bally’s faces financial hurdles
Bally’s is currently facing financial challenges that have left it uncertain whether it will be able to complete its Las Vegas project. The company has about $3.4 billion in debt, while its market value is around $500 million. This imbalance has led to a series of downgrades by rating agencies.
Em abril, a Fitch Ratings reduziu a nota da Bally’s para B-, com perspectiva negativa. Moody’s (B2) e S&P Global (B-) adotaram posturas semelhantes, citando a alta alavancagem da companhia e os riscos de execução dos projetos em Las Vegas e Chicago.
Bally’s still needs to raise $1.1 billion to finance the portion of the land it has ceded. So far, GLPI has earmarked $175 million for the demolition of the Tropicana, leaving about $125 million remaining.
In addition, GLPI has committed another $940 million to Bally’s Chicago project. Valued at $1.7 billion, the deal is under pressure to meet the state’s September 2026 opening target.
While it is trying to move forward with the Las Vegas casino, the company is also seeking approval to operate in New York. If granted a license, Bally’s will pay $500 million, invest at least that much in the structure and give the Trump Organization $115 million for the land at Ferry Point in the Bronx.
Additionally, Bally’s recently agreed to pay $180 million for a 57% stake in Australia’s Star Entertainment Group.
