James Dolan has abruptly cut ties with the company that manages his sports and entertainment venues after the firm revealed plans to build a new arena in Las Vegas — a project Dolan believes could compete directly against the Sphere, The Post has learned.
The Knicks’ billionaire owner has quietly ended an unusual 14-month partnership with Oak View Group — a rival firm co-founded by Dolan’s longtime friend, legendary concert promoter Irving Azoff — that had aimed to attract a big-money sponsor. for the Las Vegas area, sources said.
In an interview with The Post in September 2023 — just weeks before Sphere’s grand opening began with a residence by iconic Irish rock band U2 — Oak View CEO Tim Leiweke said the partnership, called Crown Properties Collection , was looking to sell the naming rights to the Sphere in a $40 million-a-year deal.
“That’s the range for the best arenas in the country like Madison Square Garden,” Leiweke told The Post.
However, that has yet to materialize — with Dolan recently turning down a $30 million offer from a potential naming partner, according to two sources close to the situation.
Sphere Entertainment reported Tuesday that Sphere had an operating loss of $125 million in the quarter and $507 million for the year. Shares of Sphere Entertainment fell 7% on the day to close at $40.96 a share.
Meanwhile, Leiweke revealed at a conference in Phoenix last month that Oak View was teaming up with the Rio Casino in Las Vegas to build the new, NBA-sized arena in the Rio’s parking lot, which had roughly the same seating capacity as the Tech Sphere. high. , the sources said.
Adding insult to injury, Leiweke also told 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 – a production that could be adapted to play at the Sphere , according to insiders.
Oak View hopes it can raise the funds for the project and then lure an NBA team, insiders said. The announcement sparked chatter that Leiweke had proven himself to be an unreliable business partner for Dolan.
“I’ve been wondering why Dolan hired Leiweke in the first place,” a source close to the situation told The Post, adding that “Tim is trying to make Rio a lot of money” and “Dolan fired him because he thought Leiweke was being competitive with him.”
Dolan declined to comment.
Leiweke did not immediately respond for comment.
However, Dolan’s move to offload Oak View surprised people at Crown Properties, said a source close to 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 the 200 people in its sponsorship division with the 40 to 50 who worked at MSG to create Crown Properties. Now some of those MSG workers who were transferred to Crown Properties are returning to MSG, sources said.
Leiweke was working on a different project on the 20,000-seat NBA arena in Las Vegas that died in recent years on the land Oak View owns, prompting him to return to the Rio partnership, the sources said.
Oak View owns or operates more than 300 venues, including part ownership of UBS Arena on Long Island, 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 in 2013 quickly forced Leiweke out as CEO and president of his AEG entertainment company after Leiweke painted too rosy a picture of AEG’s finances for potential AEG buyers, sources said at the time. time.
Leiweke left as CEO and President of Maple Leaf Sports & Entertainment, owner of the hockey team and the Toronto Raptors, after just one year because Leiweke reportedly wanted a new challenge.
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