Oakland Athletics Is Interested in Red Rock Resorts’ Stadium Land

Red Rock Resorts released its Q1 results last week. But, it didn't disclose any information about Oakland Athletics', fondly called the A's interest in its land. Yet, some gaming analysts claim that the casino can benefit a lot from selling its baseball stadium.

The As were reported to relocate to Las Vegas a few days ago, and they plan to construct a $1.5 billion ballpark next to Interstate 15 and Tropicana Boulevard, a land that Red Rock owns. The gaming operator initially intended to use a section of the 96 acres parcel for the Viva Casino complex. Unfortunately, the ongoing universal crisis disrupted its plans.

Oakland Athletics agreed with Red Rock Resorts that they will only buy 48.6 acres and can buy the remaining land in the future. Even so, none of them has revealed the transaction's buying price due to its sensitivity. Still, certain analysts predict that the transaction will take place in this year's fourth quarter.

Stephen Cootey, Red Rock's Chief Finance Officer, stated that the Viva land comprises 96 acres. He informed analysts on a conference call that if Oakland Athletics close the transaction and use the 8-acre choice, they can monetize 39.3 acres soon as the gaming operator continues to apply its land reposition strategy to promote its growth in the future.

Red Rock owns and runs Wild Wild West Gambling Hall & Hotel. It previously occupied 20 acres, and the casino shuttered and eventually demolished it in September.

How Will Oakland Athletic's Decision Benefit Red Rock Resorts?

Las Vegas might have a local Major League Baseball team soon. Reports state that adding it will benefit gaming operators in the region. Analysts say that casinos that mostly concentrate on local players will be the largest beneficiaries.

Red Rock leads the pack. This assertion is based on the Red Rock Resorts' land.

The casino hasn't informed investors and analysts of the amount of money it will earn in the land's sale. Steven Wieczynski, a Stifel analyst, informed his clients in a note that they believe Red Rock's remaining 40 acres adjacent to the ballpark complex will be more valuable in case it decides to sell the land later.

Wieczynski added that they predicted that the land sold near the new Raiders stadium was worth about $6 million. Also, stated that the undeveloped land around the Oakland Athletics' ballpark might have a higher value.

The Vegas Strips' commercial real estate sector hasn't grown fast of late. So, Oakland Athletics will pay $6 million per acre and $288 million for the 48-acre parcel.

The potential price of $6 million will increase to $336 million if the A's buy the remaining eight acres. Red Rock Resorts will have a $4.76 billion market capitalization, hence a significant improvement.

The Transaction Might Earn Red Rock Resorts Extra Cash

Red Rock has a clean balance sheet and isn't heavily relying on the land's sale. Analysts stated that the stock has a $54 price estimate.


A sports enthusiast, Ryan helps cover sports betting news from around the country, highlighting some of the more interesting events going on in the USA.