Rendering for the new Las Vegas Arena
Las Vegas Arena Co., owned by AEG and MGM Resorts International, have broken ground on a privately-funded $375-million indoor arena set to open in spring 2016.
The original price of the project was boosted by $25 million with the addition of a nightclub and more high-end seating sections. MGM and AEG each invested $75 million in cash for the project, with both companies splitting the financing of the remaining $225 million.
Located west of the Las Vegas Strip, between New York-New York and Monte Carlo resorts, the new 20,000-seat arena will host boxing , UFC and other sporting events, in addition to headline entertainment, awards shows and special events.
“Over the years, we have seen a nice mix of locals and tourists who attend our events,” said Jenn Michaels, senior vice president, public relations, for MGM Resorts International. “By partnering with AEG and building the new arena, we will be able to accommodate more of the kinds of events we currently host and attract new events to the market. This will add value to the entire tourism industry and provide our local guests with the chance to enjoy a great entertainment experience.”
“Given the new venue’s unique location and Las Vegas’ population, it took well over a year to research how to develop a premium mix for the market,” said Mark Faber, AEG’s senior vice president, global partnerships. “The plan is to bring a unique premium market mix to Vegas much like AEG did with the Staples Center in 1999.”
A ground-breaking ceremony held on May 1 signaled the start of construction on the 16-acre site. Attendees included Dan Beckerman, president and CEO of AEG; Jim Murren, chairman and CEO of MGM Resorts International; Chair of the Board of Clark County Commissioners Steve Sisolak; president of Ultimate Fighting Championship Dana White; CEO of Golden Boy Promotions Richard Schaefer; NBA and NCAA legend and Hall of Famer Bill Walton; NHL legend and Hall of Famer Luc Robitaille; and WBC Welterweight World Champion Floyd Mayweather.
Populous, based out of Kansas City, Mo., has been chosen as the architect for the project, with personnel from both AEG and MGM involved in the design process.
Designed to meet the U.S. Green Building Council’s standards for LEED Gold Certification, the arena will include 50 luxury suites, more than two dozen private loge boxes and other unique hospitality offerings.
“The arena will be designed with some of the most unique features, offerings and amenities for the fans and sponsors,” said Michaels. “The exclusive hospitality offerings in the luxury suites also will be the first of its kind.”
Expected to host more than 100 events annually, the arena also will house multiple locker facilities, dressing rooms, broadcast facilities and a variety of staging innovations.
“The arena will be a multipurpose venue and the home to boxing, UFC and other sporting events, major concert performances, and headline entertainment, awards shows and special events,” Michaels said. “It will be built to accommodate a professional basketball or hockey team.”
In addition to an exclusive naming rights partner, which has not yet been determined, the venue will include between 10 and 12 founding partners.
“At the beginning of this year, we actively started meeting with companies on a global scale to work on naming rights as well as founding partners,” Faber said.
AEG Global Partnerships, an affiliate of AEG, is overseeing the sale of naming rights, sponsorships, premium seating, and luxury suite sales for the new venue.
The schedule of events for the new facility has yet to be determined.
“Many are vying for ownership of the new venue’s first event, so it will most likely be a series of events,” Faber said.
Interviewed for this article: Mark Faber, (213) 763-7000; Jenn Michaels, (702) 891-1818