Las Vegas Sands Corp. is financially backing the MSG Sphere arena project with $75 million that will be paid out to Madison Square Garden Co. incrementally.
MSG and Las Vegas Sands Corp. have been planning the new arena, billing it is a high-tech facility that offers an immersive experience for concerts and other events. The 18,500-seat arena will sit behind the Venetian and Palazzo resorts, just off the Strip. It is not being designed for sports, but instead for concerts and other immersive experiences.
It will be built by MSG on property that is owned by Las Vegas Sands. According to information filed Wednesday to the Securities and Exchange Commission, Las Vegas Sands plans to pay out a $75 million contribution to MSG incrementally as construction milestones are met. A final price tag for the arena has not been disclosed, but MSG has been working to start construction this summer and is targeting a 2020 opening for the venue. More from the Las Vegas Sun:
The 360-foot-tall by 500-foot-wide facility features a 580,000-square-foot spherical shape wrapped in an open-air trellis structure that includes 190,000 linear feet of LED lighting that is fully programmable to create a digital showcase.
The money is part of a ground-lease agreement, as MSG is developing the planned music and special events arena on land owned by Sands. The sum will go toward project construction costs, including for an 1,100-foot-long pedestrian bridge planned to link the arena and the Venetian, Palazzo and the Sands Expo Center.
Good for 50 years, the lease agreement states the foundation work must begin within 18 months from the agreement date (July 13) and have three years after that to complete the arena. That would reach into early 2023, but MSG has said construction is planned to begin this summer, with a planned late 2020 completion date.
We took a closer look at plans for the MSG Sphere in a feature earlier this year. The facility is being designed to feature advanced technology that can support immersive experiences, including future augmented reality offerings. The unique sphere design is really just a frame for LED panels both inside and out. The 580,000-square-foot exterior will feature 190,000 linear feet of fully programmable LED panels, and given it’s location, it will be a powerful billboard for upcoming attractions. Inside, the arena will feature a 170,000-square-foot display, providing great views for fans anywhere in the seating bowl.
Renderings courtesy MSG.