SL Green CEO to get $10 million bonus if Times Square casino gets approval

Posted: January 3, 2025, 02:22 pm.

Last updated: 3 January 2025, 04:42 PM.

SL Green (NYSE:SLG) CEO Mark Holliday has plenty of reasons to continue supporting the real estate developer's effort to bring a casino hotel to New York City's Times Square. Ten million reasons to be exact.

A recent 8-K filing by a real estate investment trust (REIT) with the Securities and Exchange Commission (SEC) indicates that the chief executive officer will receive a $10 million bonus if certain profit and revenue metrics are met. , assuming New York regulators approve the proposed Times Square gaming venue, which will be operated by Caesars Entertainment (NASDAQ: CZR).

Mr. Holliday will receive a one-time cash bonus in the amount equal to $10,000,000 if the building at 1515 Broadway, New York, New York is converted into a hotel/casino, subject to the satisfaction of projected earnings before interest. , taxes, depreciation, and amortization (EBITDA) milestones and the beginning of operating revenues from the completed project,” according to the regulatory document.

Jay-Z's Roc Nation entertainment agency is also part of a group vying to bring a gaming venue to Times Square. The group performed at the $4 billion casino hotel at 1515 Broadway.

SL Green's big bet on Times Square

As mentioned above, the financial commitment from Caesars, Roc Nation and SL Green will be significant if the consortium wins one of three downstate casino licenses to be awarded later this year.

SL Green has said that the gaming venue will occupy the space currently used by the Miscoff Theatre, 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 investment if Caesars Palace Times Square becomes a reality. Those expenditures could also include environmental and sanitation investments as well as allocations for small businesses in the theater district.

Times Square Casino Odds Assessment

In simple terms, the fate of Holiday's $10 million bonus largely depends on the New York Gaming Commission (NYGC), which has the final say regarding the three winners of the downstate permits. It has been widely speculated that MGM Resorts International's Empire City in Yonkers and Resorts World New York in Queens will win the two permits.

This leaves Caesars and SL Green competing with about eight other groups for just one license, but regulators have not confirmed this is the state of play.

Like many other downstate casino plans, the Times Square proposal has its share of opponents and supporters, many of whom were not necessarily opponents of casinos in New York City. Rather, they are taking into account the not in my backyard (NIMBY) ideas regarding a gaming venue in the theater district,