LAS VEGAS, June 18, 2013 /PRNewswire/ -- AEG and MGM
Resorts International (NYSE: MGM) have completed and executed
transactional agreements formalizing the details of the previously
announced joint venture to build a new arena project, which will be
the centerpiece of a complete revitalization of the area between
New York-New York and Monte Carlo resorts, extending from Las Vegas
Blvd. to Frank Sinatra Drive. They have selected Populous,
designers of many of the world's most memorable sports, concert and
entertainment venues as the Architect of Record and designer for
the new approximately 20,000-seat indoor arena.
The arena is expected to break ground in summer 2014, with the
grand opening projected for spring 2016. The project is
anticipated to cost approximately $350
million and be financed with equity contributions from each
of the partners as well as privately funded third-party
financing.
"Finalizing our agreement with AEG and selecting Populous, a
world-class design firm, as the architect of this project are both
important milestones in this process," said Jim Murren, MGM Resorts International Chairman
and Chief Executive Officer. "The combination of MGM and AEG,
along with the excellent Las Vegas Strip location, is already
driving interest from potential investors in this exciting new
development."
Populous is underway creating designs for the state-of-the-art
arena set to become Las Vegas'
premier destination for sporting events, major headline
entertainment and special events that will drive significant
visitation and revenue to Las
Vegas. The venue will feature a variety of unique premium
seating offerings as well as other hospitality areas for
entertaining and private events.
Dan Beckerman, President &
Chief Executive Officer, AEG, said, "After spending many years
exploring a variety of arena opportunities in Las Vegas, we are excited to have consummated
a partnership with MGM Resorts International, the leading gaming
and hospitality company, to begin designing and building a
state-of-the-art arena on such an ideally located site. Bringing
together the knowledge, experience and assets of our respective
organizations, we will create an arena that offers fans the best
live entertainment experience."
AEG Global Partnerships, an affiliate of AEG that collaborates
with more than 100 venues and other AEG assets worldwide to create
sales and marketing platforms, will undertake the sales of
sponsorships, premium seating and luxury suite sales as well as
seeking a naming rights partner for the new Las Vegas showplace.
Chris Carver, Senior Principal at
Populous, said, "The new MGM-AEG arena in Las Vegas will provide the nation's preeminent
entertainment destination with a world-class venue that will
redefine amenities and premium offerings tailored to the demanding
Las Vegas market. We very much
look forward to working with MGM and AEG to fulfill their
progressive aspirations and quality standards for the entire
development."
World leaders in the design and development of iconic arena
projects, Populous' portfolio of sports facilities includes more
than 20 projects in association with AEG or ICON Venue Group
(serving as project managers for the project) including
London's O2 arena,
Berlin's O2 World arena
and Kansas City's Sprint Center.
About MGM Resorts International
MGM Resorts
International (NYSE: MGM) is one of the world's leading global
hospitality companies, operating a portfolio of destination resort
brands including Bellagio, MGM Grand, Mandalay Bay and The Mirage.
The Company also owns 51% of MGM China Holdings Limited, which owns
the MGM Macau resort and casino and is in the process of developing
a gaming resort in Cotai, and 50% of CityCenter in Las Vegas, which features ARIA Resort &
Casino. For more information about MGM Resorts International,
visit the Company's website at www.mgmresorts.com.
About AEG
AEG is one of the leading sports and
entertainment presenters in the world. AEG, a wholly owned
subsidiary of the Anschutz Company, owns or is affiliated with a
collection of companies including over 100 of the world's
preeminent facilities such as STAPLES Center (Los Angeles, CA), StubHub Center (Carson, CA), Best Buy Theater (Times Square,
New York), Sprint Center,
(Kansas City), Target Center
(Minneapolis, MN), Mercedes-Benz Arena (Shanghai, China), MasterCard Center
(Beijing, China), O2 World
Hamburg, Allphones Arena (Sydney,
Australia), Ericsson Globe arena (Stockholm, Sweden), O2 World arena
(Berlin, Germany) and The O2 arena
and entertainment district (London,
England) which are all part of the portfolio of AEG
Facilities. Developed by AEG, L.A. LIVE is a 4 million square foot
/ $2.5 billion downtown Los Angeles sports, residential &
entertainment district featuring Nokia Theatre L.A. LIVE and Club
Nokia, a 54-story, 1001-room convention "headquarters" destination
along with entertainment, restaurant and office space that
"officially" opened in 2010. In addition to overseeing privately
held management shares of the Los Angeles Lakers (NBA), assets of
AEG Sports include franchises and properties such as the LA Kings
(NHL), MLS Cup Champion Los Angeles Galaxy, two hockey franchises
in Europe, the Amgen Tour of
California cycling race and Bay to
Breakers foot race. AEG Live, the company's live-entertainment
division, is the world's second largest concert promotion and
touring company and is comprised of touring, festival, exhibition,
broadcast, merchandise and special event divisions with fifteen
regional offices. AEG Global Partnerships, a division responsible
for worldwide sales and servicing of sponsorships naming rights and
other strategic partnerships and AEG Merchandising, a multi-faceted
merchandising company are also core business units of AEG. In 2010,
AEG launched its AEG 1EARTH environmental program with the
announcement of 2020 environmental goals and the release of the
industry's first sustainability report while in 2011, AEG
introduced axs Ticketing, the first phase of its new entertainment
platform serving as the company's primary consumer brand which will
also feature a mobile service as well as a video content service
now in development. For additional information, visit
www.aegworldwide.com
About Populous
Since inception in 1983, Populous has
grown into the world's leading design firm dedicated exclusively to
creating environments that draw people and communities together for
unforgettable experiences, from stadiums to ballparks to
arenas. The firm has completed more than 2,000 projects around the
globe with construction value exceeding $30
billion. Populous has worked with 130 universities, 40
convention center clients, 80 professional and civic arena clients,
24 Major League Baseball franchises, 30 NFL franchises, 40 global
soccer and rugby teams, 30 equestrian clients and has planned more
than 30 major worldwide events. At Populous, we
enthusiastically embrace the expertise we claim – drawing people
together around events, places, teams and ideas they embrace and
adore.
Statements in this release that are not historical facts are
forward-looking statements involving risks and/or uncertainties,
including those described in MGM Resorts International's public
filings with the Securities and Exchange Commission. MGM Resorts
International has based forward-looking statements on management's
current expectations and assumptions and not on historical facts.
Examples of these statements include, but are not limited to,
statements regarding the ability of MGM Resorts International and
AEG to develop a new arena in Las
Vegas and/or obtain financing for such project. These
forward-looking statements involve a number of risks and
uncertainties. Among the important factors that could cause actual
results to differ materially from those indicated in such
forward-looking statements include effects of economic conditions
and market conditions, the design, timing and costs of expansion
projects, risks relating to permits, licenses, financings,
approvals and other contingencies in connection with growth in new
or existing jurisdictions and additional risks and uncertainties
described in MGM Resorts International's Form 10-K, Form 10-Q and
Form 8-K reports (including all amendments to those reports). In
providing forward-looking statements, MGM Resorts International is
not undertaking any duty or obligation to update these statements
publicly as a result of new information, future events or
otherwise, except as required by law.
SOURCE MGM Resorts International