MLB owners voted unanimously last week to approve the Oakland Athletics’ move to Las Vegas for the 2028 season. The approval was somewhat of a formality, as there was very little reason to believe the move would not be approved by the other owners once the Commissioner’s Office recommended as such. Up until the votes were cast, however, there were doubts whether it would receive unanimous support.
A’s owner John Fisher received the approval he was seeking, but it seems there is a unique provision in place within the agreement.
According to USA Today’s Bob Nightengale, the other owners added a provision to the approval they are calling a “flip tax.”
Essentially, the idea is to prevent Fisher from using the relocation to boost the team’s value and immediately sell. Should he sell before the club moves to Las Vegas in 2028, he will be penalized 20% of the sale price. The penalty drops to 10% the following year and continues to fall additional amounts in subsequent seasons. Fisher cannot sell the team before 2034 without facing a penalty.
Major League Baseball has arguably gone above and beyond to facilitate this move – first showing little support for the city of Oakland’s efforts to reach an agreement on a new stadium and then later waiving the $300 million relocation fee entirely – despite the vocal objections of the A’s fan base. At least by putting this caveat into the relocation approval they can hold Fisher accountable if he turns around and tries to sell.