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Breaking Down Bally's, Oakland A's, GLPI Agreement For Las Vegas Ballpark At Tropicana

Breaking Down Bally's, Oakland A's, GLPI Agreement For Las Vegas Ballpark At Tropicana
Breaking Down Bally's, Oakland A's, GLPI Agreement For Las Vegas Ballpark At Tropicana The press release sent reads like this: Bally's Corporation (NYSE: BALY) today announced that, in conjunction with Gaming & Leisure Properties, Inc. ("GLPI"), they have reached a binding agreement with the Oakland Athletics of Major League Baseball to site their new ballpark on a portion of the current Tropicana Las Vegas property. The ballpark is expected to welcome more than 2.5 million fans and visitors annually, and will be a one-of-a-kind asset for the Las Vegas Strip, providing a range of bene ts to the site including: Substantial ballpark visitation materially enhancing future o erings within the development; Signi cant exibility for an array of strategic options for the site, including the ability to develop in a phased approach with disciplined capital deployment; Massive, unlocked potential for iconic, global brands to partner and market one of the busiest intersections in the country with over seven million impressions a month; Transformational impact for the evolution of Bally's database further solidifying it's global, omni-channel strategy; and GLPI has agreed to fund up to $175 million towards certain shared improvements within the future development in exchange for a commensurate rent increase. Bally's 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 30,000 fans. This groundbreaking agreement is subject to the passing of legislation for public nancing and related agreements, and approval of relocation by Major League Baseball. As part of the agreement. Bally's retains the ability to assign the rights to all aspects of this development and has received material interest from development partners. Bally's President, George Papanier, said, "We are honored to have been selected to partner with the Oakland Athletics on this monumental step in helping to bring Major League Baseball to the great city of Las Vegas, and to be a part of the once in a generation opportunity of having a professional baseball team located within a short walk of the Las Vegas Strip. The Tropicana has been a landmark of Las Vegas for generations, and this development will enhance this iconic site for generations to come. We are committed to ensuring that the development and ballpark built in its place will become a new landmark, paying homage to the iconic history and global appeal of Las Vegas and its nearly 50 million visitors a year." Peter Carlino, Chairman and CEO of GLPI, said, "We have enjoyed getting to know the Oakland Athletics' leadership through our dialogue over the past couple years. We are pleased to help facilitate their exciting vision for a new ballpark through our contribution of nine acres of the Tropicana site and look forward to the prominent place that the overall project will occupy in the Las Vegas skyline. The Oakland Athletics' interest in developing a world-class Major League Baseball stadium on our site underscores its status as one of the most prime locations on the Las Vegas Strip and will enhance any future development of our remaining 26 acres. As the project moves forward, we also expect that GLPI will have opportunities to further invest in the various aspects of the overall project to the extent we deem that doing so will generate an attractive risk adjusted return on our shareholders' capital." Oakland A's President Dave Kaval, said, "We are excited about the potential to bring Major League Baseball to this iconic location. We are thrilled to work alongside Bally's and GLPI, and look forward to nalizing plans to bring the Athletics to Southern Nevada." Bally's acquired the building and operations of the Tropicana Las Vegas from GLPI in September 2022 as part of a $148 million transaction. As part of the transaction, Bally's entered into a 50-year ground lease with GLPI, with the ability to extend to 99-years upon achieving key investment milestones. Bally's intends to continue the operations of the Tropicana Las Vegas for the foreseeable future while evaluating all available options for a broader redevelopment of the remainder of the site that will be adjacent to the new ballpark We will break down what all of this means. Stay tuned.

via YouTube https://www.youtube.com/watch?v=LrH2cqlsL2w

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