A’s Could Be Out In Vegas

Throughout the Oakland A’s quest for a new stadium, it has been presumed that Las Vegas would happily welcome the team. A recent report called that notion into question.

The team could require public funding in the neighborhood of $275 million for a roughly $1 billion new stadium – something that Nevada Gov. Steve Sisolak is reportedly unsure about, per the New York Post. 

• Sisolak, facing a potentially challenging reelection battle in November, is reportedly wary of inciting a backlash. He pushed back on the notion that he is blocking the team from moving.
• MLB commissioner Rob Manfred reportedly wants to maintain a precedent of public funding for new stadiums.
• The Texas Rangers secured $500 million for a new ballpark in 2020, and the Atlanta Braves took in $300 million for their Cobb County stadium, which opened in 2017.

The team still faces challenges to a proposed $12 billion project in Oakland, including multiple lawsuits, the need to redesignate waterfront areas to not be exclusively for port use, and a deal to recover funds through claiming a portion of city taxes related to the development.

The MGM Factor

MGM Resorts, which owns nearly 40% of Vegas hotel rooms through brands such as Bellagio, Mandalay Bay, and Luxor, may reportedly oppose a new baseball stadium.

MGM only warmed up to the Las Vegas Raiders’ Allegiant Stadium, which opened in 2020 after the team moved from Oakland, after being convinced that the team would be a major tourist draw. The stadium received $750 million in public funds, supported in part by a $2-a-night hotel tax.

As Epic Games pushes further into the metaverse, it’s strengthening ties with giants in digital entertainment and toys.

The “Fortnite” maker raised $2 billion, split evenly between Sony and Kirkbi, owner of The Lego Group. The new funding bumped Epic’s valuation to $31.5 billion.

• Epic was previously valued at $28.7 billion from a $1 billion funding round in April 2021, which included $200 million from Sony. 
• Sony invested $250 million in Epic in August 2020, securing a 1.4% stake at that time.

While the most obvious link between Epic and the PlayStation producer is gaming, Sony could also collaborate on scripted content. A report from October said that Epic was looking into launching an entertainment division.

The company hired several executives from Lucasfilm, and its Unreal Engine game development technology is also used by Hollywood studios.

The Lego Piece

While Lego already has a prominent digital presence through numerous movies, television shows, and video games, including “LEGO Star Wars: The Skywalker Saga,” released earlier this month, the brand also shares certain futuristic ambitions with Epic and Sony.

Kirkbi CEO Soren Thorup Sorensen cited Epic’s “long-term focus toward the future metaverse,” in hailing the investment.

Sony CEO, president, and chairman Kenichiro Yoshida also stated his company’s interest in the metaverse, while hinting at other joint projects.

“Epic’s expertise, including their powerful game engine, combined with Sony’s technologies, will accelerate our various efforts such as the development of new digital fan experiences in sports and our virtual production initiatives.”

As Formula 1’s plans to host a Grand Prix in Las Vegas are beginning to crystallize, litigation looms over the upcoming race.

F1 owner Liberty Media is engaged in litigation against a businessman who claims he has jurisdiction over event promotion, according to the Las Vegas Review-Journal.

• Miami-based businessman Farid Shidfar and former Las Vegas politician Chad Christensen allegedly had plans to ink a contract to promote a Las Vegas race with F1’s former owner.
• Liberty Media, however, claims that the company the two men started to promote the race — called P2M Motorsports — never legally obtained rights to it.

The Las Vegas Convention and Visitors Authority and its advertising firm are “caught in the middle” of the dispute, the Review-Journal reported.

Road to Vegas

The last time Las Vegas hosted an F1 race was in 1982. Now, a Grand Prix will return over Thanksgiving weekend in 2023. 

It will be the third U.S.-based race as the league continues to grow its American fanbase.

F1 made a formal announcement on March 31, about a week after Front Office Sports first reported the development. FOS also previously obtained a preliminary plan for the 3.8-mile track, which will feature 14 turns and a 1.2-mile stretch down the Las Vegas Strip.

Lamborghini has launched its first esports team and will compete in a series of virtual racing competitions organized by SRO Motorsports Group.

The Italian luxury car brand has added three drivers to its roster to compete in the GT World Challenge Esports Sprint Series Europe, a four-race series that began on April 6 with a race at Misano World Circuit and concludes on Aug. 3 at the historic Monza Circuit. 

• The team will be backed by Squadra Corse, Lamborghini’s motorsport department.
• Squadra Corse will provide a team principal, driver coach, and engineers. 

Lamborghini’s decision to tap into the esports industry follows its successful launch of the Real Race, a global esports competition on racing simulator Assetto Corsa Competizione, in 2020. 

Lamborghini can deepen its reach in a gaming market projected to reach $546 billion by 2028 through a compound annual growth rate of 13%.

Investments in Sports 

Last week, Audi, the Germany-based manufacturer of Lamborghini, raised its offer to buy a stake in McLaren’s Formula 1 unit from $495 million to $718 million, according to a report by Germany’s Automobilwoche.

Audi’s parent company Volkswagen AG expressed interest in acquiring McLaren last year. McLaren later called off a potential deal, deeming Volkswagen’s initial offer as too low.