Nevada Supreme Court Kills Lawsuit Against Oakland A’s Las Vegas Ballpark Bond

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Nevada Supreme Court Kills Lawsuit Against Oakland A’s Las Vegas Ballpark Bond

Nevada Supreme Court Kills Lawsuit Against Oakland A’s Las Vegas Ballpark Bond

The Nevada Supreme Court officially killed the lawsuit filed by Schools not Stadiums today. The lawsuit sought to reverse the lower court decision that the Schools not Stadiums call for certain parts of the lawsuit to be on the November 2024 Ballot.

The Nevada Supreme Court wrote “Having considered the parties’ briefs and appendices and having heard oral argument, we conclude that the district court did not err in granting Thompson’s requested relief. The Stadium Referendum seeks to refer S.B. 1 to the voters for approval or disapproval of the State’s funding obligations under that bill. Though a person may refer only part of a statute or resolution to a vote of the people, each referendum petition shall include the full text of the measure proposed. The requirement that each signer be given the opportunity to review a measure’s full text serves the purpose of ensuring that signers know what they are supporting. Considering the purpose and language of the full-text requirement and the language of the particular petition at issue here, we
conclude that S.B. 1 must be included in the petition in its entirety to provide voters the complete context of the proposed measure so that they can understand what the law is now and what the law will be should they approve or disapprove the parts of S.B.1 that are being submitted to a vote of the people.

Nevada Supreme Court Says The Petition’s Description of Effect Is Inadequate

The description of effect at issue here reads as follows: SB 1 established a financing process to construct a Major League Baseball stadium in Clark County, using up to $380 million taxpayer dollars, Section 29 pledged State taxes and Clark County taxes to pay bonds to be issued by Clark County; Section 30 created a State credit enhancement (line of credit), initially funded by Section 41, for Clark County to draw upon to pay the bonds; the Legislature did not pledge the full faith and credit of the State and reserved the right to change parts of Section 29 (pledged State taxes) and all of Section 30 (State credit enhancement). This petition demands that the pledge of State (not Clark County) taxes and the use of the State’s credit to pay the stadium bonds be subject to a vote of the People. If a majority of
voters disapprove these components of SB 1, the bracketed and struck through portions shown on this petition would be voided, which could result in the stadium not being built. If a majority of voters
approve these sections of SB 1, these sections would remain as enacted by the Legislature and could not be changed or repealed except by direct vote of the People.

This description explains the general effect of a referendum, but it does not describe the practical effects of this specific referendum. The description is also misleading. For example, the statement that S.B. 1 allows Clark County to use “up to $380 million taxpayer dollars” suggests that these are
existing State funds being used to build the stadium and does not inform signers that a portion of those funds are to be generated from specified sources within the sports and entertainment improvement district. Thus, it fails to straightforwardly and succinctly inforrn signatories about what the referendum proposes and thereby fails to “prevent voter confusion and promote informed decisions.”

Schools Not Stadiums Promises To Refile For 2026 But By Then The Bonds Will Be Let

Alexander Marks, who with Chris Daly led the Schools over Stadiums effort, tweeted “I’m disappointed by today’s news but not totally surprised by it. Schools Over Stadiums will continue this fight and I look forward to the lawsuit prevailing!! The thing I mostly want is the A’s Vegas deal to fall apart and that may lead to John Fisher being forced to sell the team which is what almost all baseball fans want!!

Alexander Marks, who’s effort has been funded by Oakland-based politicians led by Oakland Mayor Sheng Thao, is reportedly contemplating a refiling for 2026. But the reasons for that are as flimsy as their original argument because the A’s bond issue will be let by then.

Bradley Schrager of Bravo Schrager LLP, Attorney For The Coalition Opposing The Referendum Says They’re Gratified

We are gratified that the court agreed with our arguments about the referendum’s legal flaws.  All Nevadans have a right to participate in direct democracy, but they need to observe the laws that require properly informing the voters of a proposal. This measure failed to do that, even after lengthy briefing in two courts directing the proponents to correct their errors.

Mr. Schrager was not willing to weigh in on the 2026 threat.

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