LAS VEGAS (KTNV) — A $4.6 billion buyout of Bally's Corp., the company that operated the now-closed Tropicana casino in Las Vegas, could be good news for those who want to see a new Oakland A's ballpark on the Strip.
That's according to Brendan Bussmann, managing partner at B Global Advisors, a gaming, sports and hospitality consulting firm.
"I think this serves as a lifeline for the Tropicana project," Bussmann says. "It helps solidify a potential casino partner."
The A's want to build a $1.5 billion Major League Baseball stadium at the Tropicana site. The casino resort closed earlier this year and the complex is in the process of being torn down to make way for the ballpark and a planned new resort at the corner of Las Vegas Boulevard and Tropicana Avenue.
In a way, Thursday's announced buyout isn't completely out of left field. That's because the buyer, a New York-based hedge fund called Standard General LP, is operated by Bally's Chairman Soo Kim.
The Tropicana, a vintage Las Vegas casino which had its best days years ago, closed on April 2. According to Clark County records, the demolition of all remaining Tropicana structures will take place in October.
The A's say they want to build their new ballpark, which would necessitate a move to Las Vegas from Oakland, on 9 acres at the Tropicana site, which is about 35 acres in total.
"There's still a lot of hoops that people have to go through as far as stadium financing and the movement of the A's," Bussmann says. "There's a lot of things that still need to be worked out. With where (interest) rates are at, financing, in general, is not an easy conversation right now. It's not like three or four years ago when money was much cheaper."
Some have criticized the A's for what they say is a lack of insight into how they plan to finance their stadium. Part the financing, however, would come from the state of Nevada.
Last year, lawmakers approved up to $380 million for the ballpark project. That money would be generated over time through a special stadium district tax.
Earlier this month at a Las Vegas Stadium Authority meeting, a team official said the A's plan to use about $350 million of the $380 million that was earmarked.
Bally's also has plans for a new casino in Chicago, though that plan has had a number of speed bumps to date. Still, an agreement was reached earlier this month that could finally pave the way for that project in Illinois.
Bally's operates over a dozen casinos in 10 states.
