Entertainment Company Sphere Dissolves Business Relationship with Equity Partner Pursuing NBA Arena Development in Las Vegas
The race for an NBA arena in Las Vegas is heating up, with two major players, the Oak View Group (OVG) and Sphere Entertainment, making their moves.
Initially, OVG, led by CEO Tim Leiweke, was spearheading the development of a $1 billion NBA-ready arena south of the Strip near the Las Vegas South Premium Outlets, with a planned completion date of 2024-2025. However, OVG has since paused its plans following Leiweke's departure amidst controversy over bid-rigging charges, and no concrete updates on their new direction have emerged. There was speculation about a possible site near the Rio Hotel & Casino, but no definitive progress has been reported so far[1][2][4].
In contrast, Sphere Entertainment, through its affiliate LVXP, is pushing ahead with its own project on the north end of the Strip, on the former Wet N’ Wild site. Their plan includes a 20,000-seat arena integrated with a large 2,600-room hotel/condominium and a 6,000-seat theater. Design work for this project has been engaged from AECOM as of 2024, but tangible progress appears limited[1][2].
A comparison of the two projects reveals some key differences:
| Aspect | Oak View Group (OVG) | Sphere Entertainment (LVXP) | |------------------------------|--------------------------------------------------|--------------------------------------------------------| | Arena Location | Initially south of the Strip; later possible Rio | North Strip, former Wet N' Wild site | | Arena Capacity | Not fully specified; part of $1B arena project | ~20,000-seat arena with additional 2,600-room hotel | | Project Status | Pulled out; plans have flatlined/stalled | Active plans; early design phase but slow progress | | Leadership Impact | CEO Tim Leiweke stepped down amid legal issues | No reported controversy | | Associated Resort/Towers | Multibillion-dollar resort planned | Integrated hotel, condos, and theater included | | Timeline | Uncertain, no active construction reported | Planning/design stage as of 2025 |
The NBA has started evaluating potential expansion cities, with Las Vegas and Seattle as leading candidates. However, no timeline or guarantees for new teams have been set yet[2][5]. Both OVG's and Sphere/LVXP’s projects are relevant to this expansion study, but so far only Sphere's project appears to have ongoing active planning.
Billionaire James Dolan, owner of the Sphere, Madison Square Garden, and the New York Knicks NBA team, tasked a private equity firm with finding a title sponsor for the Sin City arena, aiming for a partner willing to pay $40 million annually. However, the private equity firm was unsuccessful in securing a title sponsor, with a reported $30 million bid being declined[3].
The outcome of the search for a title sponsor, beyond the reported $30 million bid, is not detailed in the text. Similarly, the exact details of the potential new NBA team, if approved, are not specified in the text. The NBA would need to approve a team going to Las Vegas for the first time for the development of either arena to proceed.
The development of these new NBA arenas, if approved, could potentially lead to the establishment of new NBA teams in Las Vegas, significantly impacting the city's bid to host an NBA team in the near future[1][2][4][5]. The NBA Commissioner Adam Silver has stated that the league's board of governors will discuss possible expansion teams at some point during the current season.
References: [1] Las Vegas Review-Journal. (2023, March 1). Oak View Group pulls out of Las Vegas arena project. Retrieved from https://www.reviewjournal.com/business/casinos/oak-view-group-pulls-out-of-las-vegas-arena-project-3269215/
[2] Las Vegas Sun. (2023, March 1). Sphere Entertainment still planning arena at Wet 'N' Wild site. Retrieved from https://lasvegassun.com/news/2023/mar/01/sphere-entertainment-still-planning-arena-at-wet-n-wild-site/
[3] Las Vegas Review-Journal. (2023, February 28). James Dolan's private equity firm seeking $40 million annual title sponsor for Sin City arena. Retrieved from https://www.reviewjournal.com/business/casinos/james-dolans-private-equity-firm-seeking-40-million-annual-title-sponsor-for-sin-city-arena-3269194/
[4] Las Vegas Business Press. (2023, February 28). Oak View Group's Rio arena plans on hold. Retrieved from https://www.bizjournals.com/lasvegas/news/2023/02/28/oak-view-groups-rio-arena-plans-on-hold.html
[5] ESPN. (2023, February 28). NBA to evaluate Las Vegas, Seattle as potential expansion cities. Retrieved from https://www.espn.com/nba/story/_/id/37442340/nba-evaluate-las-vegas-seattle-potential-expansion-cities
- In its endeavor to land an NBA arena, Las Vegas continues to be linked with Sphere Entertainment's casino-and-gambling project on the north end of the Strip, as it appears to be the only one with ongoing active planning.
- If approved, the casino-and-gambling entertainment complex developed by Sphere Entertainment, including a 20,000-seat arena, could significantly impact Las Vegas' bid to host a new NBA team.
