It’s the ninth inning for negotiations between the Oakland A’s and their city.

Oakland is scrambling to secure additional grant money to cover potential cost overruns on infrastructure work related to a planned $12 billion stadium and waterfront development.

• Under a framework negotiated by the A’s and Oakland, the team would cover the costs of a new stadium and surrounding development, while the city would make infrastructure improvements to roads, train tracks, bike paths, and walkways.
• The city wrote in a memorandum that it has secured $321.5 million in grants toward the project but is facing “significantly increased” costs.
• The city applied for a $182.9 million grant from the Department of Transportation’s Megaprojects program, but noted that “based on initial feedback, the city may receive a partial award, or no award.”

While Oakland is loath to make its general fund liable for added costs, it is looking into a limited obligation bond, which would be repaid with taxes on hotel, sales, and parking revenue generated by the project.

Clock is Ticking

To secure the project and ward off a potential move by the MLB team to Las Vegas, Oakland and the A’s still need to reach an agreement. 

City leadership will change next year, as mayor Libby Schaaf is termed out and two council members are abandoning their seats to run to replace her.

City administrator Ed Reiskin said that a deal would need to be struck in the next week or so to allow for a binding vote before then.

John Textor is reportedly having trouble securing financing to acquire Ligue 1’s Olympique Lyonnais — but that could change soon.

Ares Management is reportedly in talks to back Textor’s bid for Lyon owner OL Groupe SA. 

Textor, who is also an owner of Crystal Palace, previously agreed to buy around 66% of the club by purchasing shares from film production company Pathé, investment firm IDG Capital, and Lyon president Jean-Michel Aulas’ holding company Holnest. 

The deal would reportedly value the team at $842 million.

Vegas Golden Knights owner Bill Foley was planning to lend Textor’s Eagle Football Holdings $522 million for the club, but outlets are reporting he may be scaling back his funding.

• Foley’s Cannae Holdings signed a letter of intent in June to provide a credit facility for the Lyon transaction, which could have been converted into equity.
• Foley is reportedly interested in Premier League club AFC Bournemouth.

In its last two fiscal years, OL has reported a combined $144 million loss and has a net debt of $291 million.

Should Textor’s purchase of Lyon go through, his soccer holdings would total around $1 billion.

Ares’ Portfolio

Ares Management recently announced it raised $3.7 billion in capital to invest in sports, media, and entertainment companies. It has already committed roughly $1 billion to 19 sports businesses around the world, including Atletico Madrid and Inter Miami CF.

Italian soccer giants AC Milan and Inter are projected to generate $119 million in revenue per season from a new stadium slated to open in 2027. 

The Italian clubs, who have been co-tenants at the historic Giuseppe Meazza Stadium at San Siro since 1947, have announced plans to build a new stadium for an estimated $1.3 billion.

A new home field is projected to generate $79 million in annual revenue from naming rights, concessions, sponsors, merchandise, parking, and events, while an additional $40 million will come from areas around the venue including offices, a convention center, and an entertainment complex. 

• In December 2021, the Serie A rivals hired architecture firm Populous for the project.
• A public debate next week will decide whether it receives approval.
• Construction on the venue — coined “The Cathedral” — could begin in 2024.
• It would be split into two phases, with one being the demolition of the Meazza.

The potential influx of cash would help Inter manage debt after it issued $468.3 million in new bonds in January to pay off secured notes due this year and repay its revolving credit line. 

New Ownership 

Earlier this month, New York-based private equity firm RedBird Capital Partners closed its deal to purchase Milan for $1.2 billion from American investment firm Elliott Management.

Before the sale, minority investor Blue Skye Financial Partners claimed Elliott Management — Milan’s majority shareholder since 2018 — held talks “behind closed doors” about the deal.

Sports-focused blockchain gaming platform LootMogul has secured a $200 million investment from alternative investment firm Global Emerging Markets. 

LootMogul will use the capital to build metaverse gaming environments allowing fans to engage with athletes, teams, and brands via virtual “sport cities.” 

• LootMogul has partnered with more than 180 professional athletes in the U.S.
• It is currently onboarding over 1.5 million high school and college athletes.
• The platform will build more than 200 virtual cities with the investment from GEM.
• It plans to have those cities available across multiple platforms, including Meta’s Oculus. 

As part of the investment, GEM will give the California-based platform a share subscription facility of up to $200 million for 36 months following an equity exchange listing. 

The transaction allows LootMogul to withdraw funds by issuing equity shares to GEM. 

Blockchain and Metaverse Deals 

Software and venture firm Animoca Brands recently raised $110 million, valuing the NBA Top Shot and blockchain gaming investor at more than $5 billion.

In July, metaverse builder Infinite Reality closed its deal to acquire esports and entertainment conglomerate ReKTGlobal, Inc. for $470 million, valuing the combined entity at $2.47 billion.

That same month, gaming-focused VC firm Konvoy Ventures raised $150 million for Konvoy Fund III, which will have 20% to 30% of its funds allocated toward blockchain-related games.