MGM - The push for major league baseball in Las Vegas takes another step forward

2023-05-15 10:23:22 ET

The Oakland Athletics plan to move to Las Vegas took another step forward on Monday when Bally's Corporation ( NYSE: BALY ) and Gaming & Leisure Properties ( GLPI ) reached a binding agreement with the MLB team to site their new ballpark on a portion of the current Tropicana Las Vegas hotel-casino property. The nine acres are going to the A's essentially rent-free in the near tern.

Gaming and Leisure Properties ( GLPI ) has agreed to fund up to $175M towards certain shared improvements within the future development in exchange for a commensurate rent increase. Under the terms of the deal Bally's ( BALY ) and GLPI will assign approximately nine acres of the 35-acre site located on Las Vegas Boulevard and Tropicana Avenue to the Oakland Athletics or a related stadium authority. The new ballpark will accommodate approximately 30K fans. The agreement is still subject to the passing of legislation for public financing and related agreements, and approval of relocation by Major League Baseball.

As part of the agreement struck, Bally's retains the ability to assign the rights to all aspects of this development and has received material interest from development partners. Crucially, Nevada state legislators will decide as early as this week if $395M in public assistance will go toward building the baseball stadium. If built, the ballpark is expected to welcome more than 2.5M fans and visitors annually, and is described as a potential one-of-a-kind asset for the Las Vegas Strip.

Last month, CBRE Equity Research analyst John DeCree said another major professional sports team in Las Vegas adds to the long-term thesis for continued population growth and economic development in the region, which is a benefit to all Locals casino operators like Boyd Gaming ( BYD ), and Golden Entertainment ( GDEN ). Strip operators such as Caesars Entertainment ( CZR ), MGM Resorts ( MGM ), and Wynn Resorts ( WYNN ) are also expected to benefit if major events like the MLB All-Star Games come to Las Vegas or a land bridge across I-15 is built to the new stadium.

Shares of Bally's ( BALY ) broke 4.55% higher in early trading on Monday. Gaming and Leisure Properties slipped 0.51% .

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