James Dolan has abruptly ended his partnership with the company that manages his sports and entertainment venues after the company revealed plans to build a new arena in Las Vegas. Dolan believes the project could compete directly with Sphere, the Post reported.
The billionaire Knicks owner quietly ended his unusual 14-month partnership with Oakview Group, a rival company co-founded by Dolan's longtime friend and legendary concert promoter Irving Azoff. Ta. Officials said it was the Las Vegas sphere.
In an interview with the Post in September 2023, weeks before Sphere's grand opening begins with a residency by iconic Irish rock group U2, Oakview CEO Tim Leiweke said Crown Properties The partnership, called Collection, said the purpose is to sell the naming rights to Sphere. He has a $40 million annual contract with Sphere.
“This is in the range of the top arenas in the country like Madison Square Garden,” Leiweke told the Post.
But that hasn't happened yet, and two sources close to the situation say Dolan recently rejected a $30 million offer from a potential naming partner.
Sphere Entertainment reported Tuesday that Sphere had an operating loss of $125 million for the quarter and $507 million for the year. Sphere Entertainment stock fell 7% on the day, closing at $40.96 per share.
Meanwhile, Leiweke said at a conference in Phoenix last month that Oakview Partnered with Rio Casino in Las Vegas Sources say they plan to build a new NBA-sized arena in Rio's parking lot with roughly the same seating capacity as the high-tech Sphere.
Adding insult to injury, Leiweke said at the VenuesNow conference on October 16 that he was in talks with the owners of the ABBA Experience show at the London Theater to perform in the yet-to-be-built arena. According to officials, he plans to play in the Sphere.
Officials said Oak View hopes to raise money for the project and attract an NBA team. The announcement sparked chatter that Leiweke had proven to be an unreliable business partner for Dolan.
“There were questions about why Dolan hired Leiweke in the first place,” a source close to the matter told the Post, adding, “Tim is going to make a lot of money in Rio.” I thought that was the case,” he added. I'm competitive with him. ”
Mr. Dolan declined to comment.
Leiweke could not be reached for comment.
Still, Mr. Dolan's move to fire Oakview surprised people at Crown Properties, said a person familiar with the situation. Dolan's Sphere Entertainment paid $51 million for an 8.3% stake in Crown Properties, according to The Sphere's public filings.
Last fall, Oak View combined 200 people from its sponsorship department with 40 to 50 people working at MSG to form Crown Properties. Currently, some MSG employees who were transferred to Crown Properties are being brought back to MSG, officials said.
Leiweke was working on something else. 20,000 seat NBA Arena Las Vegas Projects on land owned by Oakview have fallen through the cracks in recent years, prompting the company to pivot to a partnership with Rio, sources said.
Oak View owns or operates more than 300 venues, including a portion of Long Island's UBS Arena, where the New York Islanders play.
Leiweke, who formed Oak View with longtime Eagles promoter Azoff in 2015, has a history of clashing with powerful team owners.
Los Angeles Kings owner Phil Anschutz quickly announced in 2013 Leiweke ousted as CEO and president of entertainment company AEG Sources said Leiweke painted a too rosy picture of AEG's financial situation for potential buyers.
Leiweke stepped down as CEO and president of Maple Leaf Sports & Entertainment, owner of the hockey team and Toronto Raptors, after just one year. Reportedly wanted a new challenge.
