Caesars Throws Its Hat in For NBA Arena Behind Horseshoe, Paris

^{50 acres of land behind Horseshoe, Paris, and Planet Hollywood could be used for an arena to house a Las Vegas NBA team. (Photo: Courtesy Caesars Entertainment)}

Caesars has been having discussions with real estate partner VICI about building an arena on 50 acres of land behind Horseshoe, Paris and Planet Hollywood. The building would house an NBA team in Las Vegas. Any arena in the city should be able to host concerts, other sports such as MMA, conferences, or any other large-scale events.

Like the otherpotential NBA arena sites, this isn't a done deal. The pro basketball league hasn't selected an ownership group yet, so all the possibilities for new venues are hypothetical.

How the News Got Out

While Caesars halted its earnings call this quarter as the company prepares to go private, VICI President and Chief Operating Officer John Payne spilled the beans:

“We own, in conjunction with our partner Caesars, and we're working with them, 50 acres of land behind Paris, Horseshoe, Planet Hollywood, and we are developing a plan with Caesars, Sean McBurney in particular, who runs Las Vegas, to house the arena that could be built for the new NBA team.”

VICI owns more casino real estate on the Vegas Strip than any other company. However, it doesn't operate the casinos and is usually quiet about new developments.

This is the first time this land or Caesars has been publicly discussed as a potential arena partner for an NBA team. McBurney is Caesars' Chief Commercial Officer and Regional President for Las Vegas. Neither he nor Caesars has publicly commented on the possible arena.

Making Something From Nothing

This huge plot of land is as close to Koval Lane as the Vegas Strip. It’s mostly vacant and has always been so, except for occasional use as parking.

It's still used sparingly. There's a 48,000-square-foot production soundstage used for BattleBots Arena. Some of the land is used as a staging area for the Las Vegas Grand Prix.

There have been plenty of proposed plans to develop the land over the years. One of the forgotten ideas dates back to 2004, when Las Vegas tried to lure the Montreal Expos. The team is now the Washington Nationals.

The future of this land will be up in the air if an arena isn’t built. If Tilman Fertitta’s deal for Caesars receives regulatory approval, he’ll have 50 acres of land to use or sell.

Parking Won’t Be a Concern

Parking shouldn't be a major issue for guests because of Caesars' nearby casinos. It should be similar to T-Mobile Arena's parking situation with MGM Resorts, which has an ownership stake in the venue.

There will be plenty of parking spaces between the Planet Hollywood/Miracle Mile Shops garage and the shared garage between Horseshoe and Paris. Smaller garages at Vanderpump Hotel, Flamingo, Harrah's and The Linq casino and promenade will likely be less expensive options a little farther away.

The recently updated and expanded Ellis Island won't offer much, if any, help with parking. The small casino has fewer than 300 parking spaces, all reserved for up to 288 hotel guests.

Potential Conflict of Interest?

Fertitta also owns the Houston Rockets in the NBA. While he doesn't own the Toyota Center where the team plays, he and Clutch City Sports & Entertainment operate the venue.

The news is so fresh that it's difficult to say whether there will be a conflict of interest for Fertitta. He won't own multiple NBA teams, which is against league rules, but other owners could see his interest in arenas for multiple teams as a conflict.

Billionaires tend to safeguard their financial interests, so other owners may weigh whether this arrangement aligns with their own.