Aramark Sports + Entertainment has secured a 20-year, $175 million agreement to serve as the food and beverage provider at the proposed Athletics ballpark in Las Vegas, writes Bret McCormick for the Philadelphia Business Journal.
The deal includes a minimum $100 million investment in the MLB team and a $75 million capital expenditure commitment. The agreement has not yet been finalized.
A total investment of at least $175 million would represent the biggest financial investment by a food and beverage provider in a team and its stadium in sports business history.
Valuations of Athletics ranged from $1.57 billion to $1.8 billion earlier this year, putting Aramark’s investment at around 5.5 percent and 6 percent of the team. Given that the new stadium is scheduled to open in 2028, the valuation used in the deal was likely higher than most public estimates.
This is not the first time Aramark has purchased a stake in a team. The Philadelphia-based food and beverage provider company previously held an interest in the NBA’s San Antonio Spurs from 2001 until selling it last year.
Read more about Aramark’s latest investment in the MLB’s newest ballparks in the Philadelphia Business Journal.
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