Published on: January 3, 2025, 02:22h.
Last updated on: January 3, 2025, 02:22h.
SL Green (NYSE: SLG) CEO Marc Holiday has numerous motivations to continue pushing for a casino hotel in Times Square, New York City, with a $10 million bonus as a key incentive.
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 receive a $10 million bonus upon approval of the proposed Times Square casino by New York regulators, to be run 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 presented a $4 billion plan for a casino hotel at 1515 Broadway.
SL Green Investing Big in Times Square
As mentioned, the financial commitments from Caesars, Roc Nation, and SL Green would be substantial if the consortium secures one of the three expected downstate casino licenses awarded later this year.
In related news, it was disclosed in November that the REIT is seeking an extension on a $743 million loan linked to the New York City property. The loan, currently in default, is due in March. An extension is anticipated due to high occupancy rates at the building and SL Green’s ease in collecting rent from primary tenant CBS News.
SL Green stated the casino would occupy the space currently used by the Miskoff Theater, home to “The Lion King,” one of Broadway’s longest-running shows.
The real estate developer has pledged $250 million in community investments if Caesars New York City becomes a reality. These investments could include environmental and sanitation improvements, as well as support for small businesses in the theatre district.
Evaluating Times Square Casino Chances
Ultimately, the fate of Holiday’s $10 million bonus depends largely on the New York Gaming Commission (NYGC), which will determine the recipients of the three downstate permits. Speculation suggests MGM Resorts International’s Empire City in Yonkers and Resorts World New York in Queens are likely winners of two permits.
This leaves Caesars and SL Green competing with around eight other groups for one license, though regulators have not confirmed this scenario.
Similar to other downstate casino proposals, the Times Square plan has both supporters and detractors, with some opposing a gaming venue in the theater district under the not in my backyard (NIMBY) perspective.