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Oakland A’s relocation to bring economic boom to Sacramento

The Oakland A’s (team owner John Fisher pictured here) will play temporarily at the Class AAA Sacramento River Cats’ Sutter Health Park as they figure out their Las Vegas ballpark.ap images

The Oakland A’s temporary residence in Sacramento could generate approximately $4 million in lodging revenue and more than half a million dollars in related taxes, according to research by Sports Business Journal.

The A’s and the Sacramento Kings, the majority owner of the Class AAA Sacramento River Cats (a San Francisco Giants affiliate) and the club's Sutter Health Park, on April 4 announced the MLB club will relocate to California’s capital for at least three seasons before permanently moving to its proposed new ballpark in Las Vegas. An option for a fourth season (2028) is likely, considering neither a ballpark design nor funding has been finalized for the Las Vegas development.

There are 368 hotels (29,400 rooms) in Sacramento, according to industry analyst CoStar, including 29 properties (3,000 rooms) categorized as “luxury” or “first class.”

MLB clubs typically require approximately 55 hotel rooms per night for teams from Opening Day through August, according to several MLB sources, and five more each night when rosters expand in September. The MLB-MLBPA collective-bargaining agreement requires teams to put their players in “first-class” hotels.

Approximately two-thirds of the city’s rooms — and only about half of the rooms at first-class hotels — were occupied on any given night during the 2023 minors season.

Visitors to the region pay a 12% city lodging tax, according to hospitality consulting firm HVS, plus an additional 1% to 3% (depending on the hotel’s location) Sacramento Tourism Marketing District fee that is earmarked to help fund Visit Sacramento’s marketing efforts.

Sacramento’s restaurants also could benefit from the club’s presence, as the daily per diem for MLB players on the road is $117.50 for a meal and tip if the club does not provide a meal, and $34.50 if a meal is provided.

MiLB guidelines stipulate that the home team pays for 22 rooms per night and visitors pay for the rest, which is usually about 15 more. Hotels must have a 4.2/5 rating on Expedia or 8.2/10 on booking.com (MLB’s official online travel agency) and be within 15 miles of the ballpark. 

Kimpton Sawyer, an IHG property, is owned is owned Kings owner and managing partner Vivek Ranadivé and is often used by visiting MiLB and NBA teams. The 250-room, first-class property is a mile from Sutter Health Park, across the Tower Bridge, adjacent to the Sacramento Kings’ Golden 1 Center. The NBA team’s headquarters is on the fourth floor. Kings owner Vivek Ranadivé bought the River Cats and the ballpark in 2022. 

The $46.5 million stadium opened in 2000 with 10,000 permanent seats and room for nearly 4,000 more on the berms and was consistently sold out for its first eight seasons. 

The River City Regional Stadium Financing Authority issued $39.99 million in taxable lease revenue bonds to finance the site acquisition and construction of what would be a privately owned and operated ballpark. The team agreed to pay $3 million annually for 30 years, and despite a drop in attendance in recent years, has never missed a payment. As of June 30, 2023, the principal amount of bonds outstanding was $18.68 million, according to an analysis of the financing authority’s most recent annual report.

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