Sphere Entertainment has ended its partnership with the Oak View Group in order to pursue the development of a rival NBA-ready arena in Las Vegas. This decision comes after a 14-month working relationship between the two entities, as the proposed project would directly compete with the plans of Oak View Group.
Billionaire James Dolan, who owns assets such as the Sphere, Madison Square Garden, and the New York Knicks NBA team, had originally tasked the private equity firm to secure a title sponsor for the Sin City arena. The goal was to find a sponsor willing to pay $40 million annually, but they were unable to do so. Dolan reportedly turned down a $30 million bid, leading to the termination of the partnership with Oak View Group.
Meanwhile, Oak View Group CEO Tim Leiweke is leading the efforts to construct an NBA arena in the parking lot of the Rio Hotel & Casino. The proposed arena would have a similar capacity to the Sphere, but the project still faces challenges. The NBA would need to approve a team relocating to Las Vegas for the first time, and Commissioner Adam Silver has hinted that expansion teams may be discussed by the league’s board of governors in the near future.
Overall, the decision by Sphere Entertainment to pursue its own arena project in Las Vegas marks a significant shift in the landscape of sports and entertainment venues in the city. The competition between the Sphere and Oak View Group underscores the demand for high-quality entertainment facilities in Las Vegas and the potential for growth in the local sports industry. It remains to be seen how these developments will impact the future of sports and entertainment in Las Vegas and beyond.