Agreement includes $75 million in funding from Venetian owner
Officials with Madison Square Garden have signed a lease to build a futuristic music arena in Las Vegas. The July 13 deal between MSG and Las Vegas Sands Corp -- which owns the Venetian and the Palazzo casinos -- includes $75 million in funding from Sands Corp and a rent-free rev share deal for the next-generation 18,000-seat arena.
Details of the plan were revealed in a filing with the Securities and Exchange Commission Monday (July 16), which gave the building until 2023 to open, though the company's goal is to have the venue operational by the end of 2020. MSG officials now have 18 months to begin developing the foundation of the project and another three years to complete construction of the project near the Venetian hotel.
Las Vegas Sands Owner Sheldon Adelson has also agreed to kick in $75 million to help finance MSG Chairman and CEO James Dolan's vision for the future of live entertainment and help pay for a pedestrian bridge connecting the casinos with the arena project, "paid in increments based on certain construction milestones," according to the SEC filing.