(from billboard.biz, March 1, 2013) A new 20,000-seat arena is being built on the land west of the famous Las Vegas Strip. This announcement was made Friday by AEG and MGM Resorts International. This new arena is to be “the centerpiece of revitalization” between New York-New York and Monte Carlo, two of the closest MGM Resorts casino-hotel properties. The project will also attract people through their retail shops and dining destinations.
AEG President and CEO, Tim Leikweke, stated that their global network of venues in West Coast markets will allow them to maximize booking and operations opportunities. Some of the key locations include Seattle, Portland, Oakland, Los Angeles, and San Diego. Leikweke also believes that their sports and music assets will assist them in bringing events to this area.
It is planned that this new venue will host boxing, concerts, and other sporting and entertainment events. With MGM Resorts’ entertainment legacy with these types of events, they are confident that they can bring visitors and revenue to Las Vegas. MGM Resorts is excited about partnering with AEG. MGM Resorts Chairman and CEO, Jim Murren, said, “AEG’s dominant position in arena development, programming, and management make it an ideal partner for this venture.”
This project is expected to be financed by contributions from each one of the partners as well as private third-party financing. Potential investors have already shown a strong interest in helping support this new venue.
MGM Resorts and AEG have many other venues that they operate as well. MGM Resorts operates the Bellagio, MGM Grand, Mandalay Bay, and The Mirage in Las Vegas. The Staples Center in Los Angeles, the O2 in London and buildings in Berlin, Shanghai, Sydney, and Stockholm are all part of AEG’s high-profile portfolio.
Another project that is going on in Las Vegas is the $800 – $900 million UNLV Now Stadium that is designed to attract as many as 60,000 people. MGM recently withdrew a $20 million pledge to this project, but not everyone believes the two will be competitors. Don Snyder, UNLV Now Project Leader, said that the “two proposals are pretty much apples and oranges.”