Posted on: January 3, 2025, 02:22h.
Last updated on: January 3, 2025, 02:22h.
SL Green (NYSE: SLG) CEO Marc Holiday has plenty of reasons to continue the real estate developer’s push to bring a casino hotel to Times Square in New York City. Ten million reasons to be precise.
A recent 8-K filing by the real estate investment trust (REIT) with the Securities and Exchange Commission (SEC) indicates the chief executive officer would land a $10 million bonus if New York regulators approve the proposed Times Square gaming venue, which would be operated by Caesars Entertainment (NASDAQ: CZR).
Mr. Holliday will receive a one-time cash bonus in an amount equal to $10,000,000, in the event that the building at 1515 Broadway, New York, New York is converted into a hotel/casino, subject to satisfaction of a projected earnings before interest, taxes, depreciation, and amortization (EBITDA) milestone and commencement of operating revenue from the completed project,” according to the regulatory document.
Jay-Z’s Roc Nation entertainment agency is also part of the group vying to bring a gaming venue to Times Square. The group pitched at a $4 billion casino hotel at 1515 Broadway.
SL Green Betting Big on Times Square
As noted above, the financial commitment by Caesars, Roc Nation, and SL Green would be significant should the consortium win one of the three downstate casino licenses expected to be awarded late this year.
On a related note, it was revealed in November that the REIT is looking for an extension on a $743 million loan tied to the New York City property. That loan, which is in default, comes due in March. Experts widely believe the extension will be procured due to high occupancy at the building and SL Green’s ability to easily collect rent from primary tenant CBS News.
SL Green has said the gaming venue would occupy the space currently used by the Miskoff Theater, which is currently home to “The Lion King,” one of the longest-running shows in Broadway history.
The real estate developer has also pledged $250 million in community investments should Caesars New York City become a reality. Those expenditures could environmental and sanitation investments as well as allocations to small businesses in the theatre district.
Assessing Times Square Casino Odds
In simple terms, the fate of Holiday’s $10 million bonus rests largely with the New York Gaming Commission (NYGC), which has the final say regarding the three winners of the downstate permits. It’s been widely speculated that MGM Resorts International’s Empire City in Yonkers and Resorts World New York in Queens will win two of the permits.
That leaves Caesars and SL Green competing with roughly eight other groups for just one license, but regulators have not confirmed that to be the state of play.
Like many of the other downstate casino plans, the Times Square proposal has its share of detractors and supporters with many of the former not necessarily opposed to casinos in New York City. Rather, they’re taking not in my backyard (NIMBY) views regarding a gaming venue in the theater district.
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