The ambitious plan to build a new stadium and entertainment district in downtown St. Petersburg for the Tampa Bay Rays has fallen apart. What was once hailed as a transformative project aimed at revitalizing the Historic Gas Plant District has now been shelved. The collapse of the $1.3 billion deal—just months before the deadline for the Rays to secure funding—has triggered fallout among city officials, real estate developers, and Major League Baseball (MLB) executives.

The Key Players in the Failed Deal

Tampa Bay Rays & Ownership

The Rays, owned by Stuart Sternberg, had been pushing for a new stadium as a replacement for the aging Tropicana Field. The project was intended to be part of a larger $6.5 billion revitalization of the surrounding 86-acre Historic Gas Plant District. However, the deal required significant public funding, which faced delays due to indecision among local government officials.

Sternberg, whose net worth is estimated at $800 million, had sought a mix of public and private financing. When Pinellas County commissioners delayed key votes to approve bond financing, the project became increasingly unviable. The impact of Hurricane Milton in October 2024, which inflicted over $55 million in damages to Tropicana Field, added further complications to the team’s stadium timeline.

City and County Officials

St. Petersburg Mayor Ken Welch had championed the redevelopment project, calling it a once-in-a-generation opportunity. The city had agreed to sell 36 developable acres to the Rays-Hines partnership for $105 million, a price well below the land’s appraised value. However, the financial uncertainty surrounding the Rays’ contributions to the stadium’s costs ultimately derailed the agreement.

Despite the deal’s failure, the city plans to move forward with restoring Tropicana Field’s roof in time for the 2026 season. Mayor Welch also hinted at the possibility of new ownership stepping in to revitalize negotiations, stating, “If a new owner emerges who demonstrates a commitment to honoring agreements and community priorities, we will consider a partnership to keep baseball in St. Pete.”

Real Estate Developers

As part of the deal, St. Pete city officials signed off on the sale of about 36 developable acres to the Rays/Hines team for $105 million to be paid across four phases throughout the 30-year agreement. That sales price is less than half of the appraised value. With the stadium deal now off the table, questions remain as to whether elements of the broader redevelopment plan—especially Hines' involvement in the Historic Gas Plant District—could continue independently.

"Hines remains steadfast in its commitment to St. Petersburg and its future, focusing on the city’s growth and vast potential," a Hines spokesperson said in a statement following Thursday's news. "We firmly believe in the long-term value of keeping the Rays in St. Petersburg and are committed to collaborating with all stakeholders to advance this critical project. Together, we can build a future that reflects the best interests of St. Petersburg, its community, and the Rays."

Given this continued commitment from Hines, there is speculation that portions of the development agreement could still move forward, even without the stadium component. The fate of the land deal, and whether separate agreements outside the Tropicana Field contract will proceed, remains uncertain.

MLB’s Pressure Campaign for a Sale

With the stadium deal dead, reports indicate that MLB Commissioner Rob Manfred and a group of league owners are pressuring Sternberg to sell the Rays. The team has long been viewed as a small-market franchise with financial struggles, and the failed stadium deal has only increased speculation about its long-term viability in Tampa Bay.

Several investor groups have emerged as potential buyers, with one of the most prominent led by former San Francisco 49ers owner Edward DeBartolo Jr. His company, DeBartolo Development, recently expanded into St. Johns County with a $41.1 million apartment project. DeBartolo’s ties to Tampa, coupled with his experience in sports franchise management, make him a strong contender to take over the Rays.

Other groups reportedly interested in purchasing the team include a Tampa-based consortium led by former Yankees executive Joe Molloy and billionaire investor Dan Doyle Jr. Additionally, a separate group, represented by Tampa lawyer Carter McCain, is exploring the possibility of privately funding a new stadium as part of an entertainment complex.

Manfred’s push for a sale echoes previous instances where MLB forced ownership changes, such as the Los Angeles Dodgers under Frank McCourt and the Cincinnati Reds under Marge Schott. The league could use financial penalties—such as reducing the Rays’ revenue-sharing benefits—to exert further pressure on Sternberg.

The Future of Baseball in Tampa Bay

In the short term, the Rays will play their 2025 season at Steinbrenner Field, the New York Yankees’ spring training home in Tampa. With a capacity of just 11,206, this move will significantly impact the team’s game-day revenue and fan engagement.

If a new owner emerges and revives stadium talks, St. Petersburg could still be in play for a long-term home. However, Tampa is also a viable alternative, particularly if investors secure private funding for a stadium. The ultimate decision could shape the future of baseball in the region for decades to come.

Meanwhile, the Historic Gas Plant District remains at the center of St. Petersburg’s redevelopment plans. Even without a new stadium, the city aims to fulfill long-standing promises of economic development in the area. A long list of developers is interested in assisting with those plans through city incentives and deals on reduced property assessments.

The collapse of the Tropicana Field deal represents more than just a failed stadium project—it is a pivotal moment for the Tampa Bay Rays, the city of St. Petersburg, and Major League Baseball. The next few months will be critical in determining whether the Rays stay in the region or if ownership changes spark a new direction for the franchise.