EXCLUSIVE: Resorts World Could Push for Vegas NBA Arena
Resorts World Las Vegas, the $4.3 billion casino hotel located at the northern end of the Strip, may aim to create an NBA arena if the league officially chooses to expand in the US gaming center.
Speaking anonymously, sources informed Casino.org that the Genting-owned property has been considering utilizing some of its 42 undeveloped acres on the Strip to attract an NBA expansion team to establish its home there. One source suggested that those ambitions have probably escalated since Jim Murren took over as chairman of the property last December.
R.J. Cipriani, referred to as Robin Hood 702, mentioned he had dinner with Murren, the then-CEO of MGM Resorts International, at Lago in the Bellagio in 2018, emphasizing the executive's keen interest in helping to bring an NBA team to Las Vegas. Cipriani mentioned that during another instance at The Mansion at MGM Grand, Murren revealed to him that MGM was contemplating the purchase of the Memphis Grizzlies or “some other financially struggling” NBA team.
Two years later, Murren departed from the leading position at MGM to lead Nevada’s COVID-19 response team. He has strong connections to basketball, being recognized for introducing the NBA's summer league to Las Vegas and guiding MGM's purchase of the Las Vegas Aces, attracting that WNBA team from San Antonio. The Aces, currently under the ownership of Raiders chief Mark Davis, rank among the most successful and valuable franchises in the WNBA.
Circus Circus Purchase Feasible, Also
According to one of the sources, there are opportunities concerning Resorts World’s pursuit of an NBA arena, including a possible acquisition of the adjacent Circus Circus, which owner Phil Ruffin has mentioned he’s aiming to sell.
A Murren connection exists since he served as CEO of MGM when the operator sold Circus Circus to Ruffin for $825 million in 2019. The announcement of that deal coincided with the company's statement that it would sell the Bellagio for $4.25 billion to a real estate firm overseen by private equity group Blackstone. Ruffin has indicated that he acquired the casino hotel primarily for the 102 acres of land it includes, yet Resorts World doesn't specifically require that land to create a venue for an NBA team.
"The Resort has over 42 acres of undeveloped land, which offers significant growth potential which few of its peers can match,” according to a 2023 statement issued by the integrated resort.
There are no guarantees that Resorts World Las Vegas can secure a deal for an NBA arena, and the sources did not indicate that discussions are happening. Some Strip operators often keep unused land for long durations, allowing its value to increase while considering future actions.
Lakers Sale May Hinder NBA Expansion Initiatives
Within both the Las Vegas and NBA spheres, a persistent rumor has been that Sin City will ultimately host a team from the league, but the Buss family’s recent sale of majority ownership of the Los Angeles Lakers could significantly influence the league’s expansion strategies.
Investor Mark Walter is acquiring nearly 85% of the renowned franchise, placing the team's value at $10 billion. Certain NBA analysts think that after the sales of the Boston Celtics and the Lakers, team owners will have little interest in expanding the league.
In an expansion scenario, the NBA would most likely include two new teams, likely in Las Vegas and Seattle, with the new owners potentially paying $3 billion or more to the league for this opportunity. This would lead to a pleasing initial cash distribution to existing owners, but gradually, an increased number of teams lowers franchise values. Existing governors understand that limited resources and accessibility are key factors behind skyrocketing franchise costs, which may be sufficient for the NBA to halt its expansion initiatives.