Two 20,000-seat arenas are on the drawing board for Las Vegas — projects that developers believe could ultimately attract an NBA team to Southern Nevada and give the market the only franchise it’s missing from the major professional sports leagues. 

However, neither arena is under construction, and projected starting dates are not on the books. Also, questions surround both developments — one has financing but not a location, while the other has a site but financing is a mystery. And competition for a potential NBA franchise is fierce — owners of T-Mobile Arena want to be in the running, too.

Las Vegas tourism and gaming observers believe there is enough demand to fill two new venues, although construction would need to be spaced out if both projects were to come to fruition.

“It will be 12-plus years since the last arena was built,” said Las Vegas Convention and Visitors Authority CEO Steve Hill, referring to T-Mobile Arena, which opened in April 2016 almost two years after groundbreaking. “Having new venues is generally a good thing for Las Vegas. However, the idea that two would be built at the same time doesn't seem realistic to me.”

Hill also said that public financing is off the table for any of the arena projects.

The topic of expansion has been ongoing in NBA circles over the past few years, with Seattle and Las Vegas being floated as potential homes for new teams. In September, NBA Commissioner Adam Silver said the league would address expansion after a new collective bargaining agreement and television deal are reached.

Gaming industry consultant Brendan Bussmann said the 20,000-seat T-Mobile, which is home to the NHL’s Vegas Golden Knights, NCAA conference regional basketball tournaments, UFC, boxing and concerts, is getting full.

“With the current inventory and the continued growth opportunity with both entertainment and sports, a second arena seems plausible in the short term as NBA expansion is discussed,” Bussmann said. 

He suggested older arenas, such as the MGM Grand Garden Arena and UNLV’s Thomas & Mack Center, might try to lure an NBA team.

“It would be significantly challenging to upgrade these facilities within their existing footprint,” Bussmann said. “A new development allows the further growth of other amenities in and around that facility are a more logical approach.”

New proposals

The Oak View project, first announced three years ago by Los Angeles-based developer and sports executive Tim Leiweke, has financing in place but not a location. More than 18 months ago, Leiweke said the project would include a $3 billion hotel, gaming and entertainment district, in addition to the arena.

Oak View moved on from its original 25-acre site at the corner of Las Vegas Boulevard and Blue Diamond Road and has explored several locations on or near the Strip. Recent focus has been centered on a parking lot behind the Rio Las Vegas that had been a potential site for a Major League Baseball stadium.

“We are focused, we're funded and we'll have news soon,” said Marc Badain, who is president of the Oak View Arena project and oversaw the construction of Allegiant Stadium during his tenure as president of the Las Vegas Raiders.

Meanwhile, an arena-hotel project announced last April by real estate development group LVXP has a site on the Strip’s north end between the Sahara Hotel and Casino and Fontainebleau Las Vegas but has not divulged financing plans. Developers released renderings that show three high-rise towers with more than 2,600 hotel rooms and condominiums, as well as the arena.

The site, which once housed the Wet 'n Wild water theme park, was tied up for more than a dozen years by the failed All Net Resort and Arena project, which left behind a myriad of financial issues. The land is owned by the Lowden family, former operators of the Sahara.

Clark County granted land entitlements, which allows various pre-construction aspects to move forward, but the developer needs to secure financing for the project. A construction budget has not been revealed. Nick Tomasino, the chief construction officer for LVXP, said the company is still working through the design aspects and “different triggers” that would lead to starting construction.

He said LVXP and Oak View representatives have not spoken about partnering up on the project.

“We have the same vision but we’re just separate entities with separate locations,” said Tomasino, who oversaw the construction of the $2.3 billion Sphere for Madison Square Garden.

MGM might have a say 

In December, Golden Knights owner Bill Foley said he wants to invest $300 million to give T-Mobile Arena a face-lift and attract a new NBA franchise. The arena, which had an original price of $375 million, is co-owned by entertainment giant AEG and MGM Resorts International, which operates the venue.

“T-Mobile Arena is the perfect place for an NBA team to play,” Foley told Amber Dixon, who hosts Nevada Week on Vegas PBS.  “We have a plan in place to spend about $300 million to improve T-Mobile, add seats, add hospitality, add suites, in particular, and upgrade the park.”

The comments didn’t surprise Hill, who said he expected other arena operators might want to have a say in the arrival of an NBA team, such as MGM Resorts. In addition to T-Mobile, the company operates the 16,800-seat MGM Grand Garden, which doubles as a venue for conventions and special events, and the 12,000-seat Michelob Ultra Arena, whose primary tenant is the WNBA’s Las Vegas Aces.

“They're sophisticated operators and have their eyes open to what they need to do to make their arenas successful,” Hill said. “The only question is whether there's enough room. Somebody who's looking to build an arena might have a different perspective.”

A spokesman for MGM Resorts said the company didn’t have anything to add to the story. He noted that T-Mobile Arena was built to NBA specifications.

Other potential venue locations

Oak View has reportedly been looking at locations beyond the Rio.

Resorts World Las Vegas has 40 acres available on its 88-acre site for expansion of the hotel-casino and other opportunities. Former MGM Resorts CEO Jim Murren, who helped engineer the deal for T-Mobile Arena, said in a recent interview there is great value in having an arena. One of his goals as the new chairman of the Resorts World Las Vegas board is to help spearhead a tourism boost on the north Strip.

Billionaire Phil Ruffin controls 103 acres between Resorts World and his Circus Circus, which includes the Las Vegas Festival Grounds. In an email exchange with The Nevada Independent, Ruffin said he had discussions with Oak View about developing a portion of the site for an arena.

“We could not make a deal with them. We are better off keeping the land,” Ruffin wrote. “They are nice people but nice doesn’t count for much. A BIG NO. We broke off discussions and will not entertain a relook.”

A future player in the Las Vegas venue market will be the Athletics and the team’s $1.75 billion Major League Baseball stadium. Construction is expected to begin sometime in the second quarter on the enclosed stadium that will have 30,000 seats and standing areas for another 3,000 fans.

Hill said the A’s intend to use the ballpark for other events, such as concerts.

Bussmann said the festival ground would have been a great location for an arena given its proximity to Sahara Avenue and Interstate 15. 

“While you want something in the resort corridor, there is an opportunity to spread out assets beyond the current footprint of T-Mobile, Allegiant and a future A’s stadium,” he said.

Other gaming companies not involved in the arena business are watching how the potential Las Vegas expansion plays out.

Boyd Gaming CEO Keith Smith said last week that history has shown arenas can help fill hotel rooms even at resorts not connected to the entertainment venue. Boyd has 10 properties in Las Vegas, including the Orleans, which has an 8,000-seat arena.

“We benefit from anything that brings people to town,” Smith said. “As a company, anybody that wants to invest their own money and build something, we’re all for it. Whether it’s downtown or on the Strip, we’ll get our fair share of business.”