If a bid to develop a Caesars-branded casino in New York City’s Times Square proves successful, it would mean a $10 million payday for the CEO of the casino’s real estate partner. The fact that SL Green Realty CEO Marc Holliday could collect such a large bonus if Caesars gets a license to operate the casino shows just how seriously interested parties are taking the bidding.
The proposed casino would cost billions of dollars in construction costs and licensing fees. Its potential revenue is larger still. The sums involved highlight how receiving one of only three licenses to operate a casino in the downstate part of New York is an irreplaceable opportunity. Bonuses like those that Holliday stands to receive motivate stakeholders to stop at nothing to seize the chance.
SL Green CEO’s bonus tied to Caesars Times Square
According to an 8K filing with the United States Securities and Exchange Commission on Dec. 27, 2024, part of CEO Marc Holliday’s bonus structure is tied to the fate of the proposed Times Square casino.
“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 EBITDA milestone and commencement of operating revenue from the completed project.”
SL Green is collaborating on the project with Caesars Entertainment and Roc Nation, an entertainment company owned by rapper Jay-Z. That coalition is just one of 11 to announce its intentions to vie for one of the three downstate New York casino licenses in a bidding process to begin this year.
While Holliday has a vested interest in seeing Caesars land one of those licenses, the competition should be heavy, and his potential bonus is just one of the many costs of acquiring a license.
Times Square casino costs dwarf Holliday’s potential bonus
The potential cost of bringing the proposed casino to life in Times Square would be a huge multiplier of the bonus that Holliday stands to receive. For starters, the licensing fee itself will be at least half a billion dollars, with most interested parties expected to offer the state a higher price to increase their chances of their proposal being selected.
Initial expenses will also include construction and staffing and require at least another half-billion outlay. Operational costs besides labor and supplies will include the state’s cut of gaming revenues, which is another factor that parties will have the opportunity to bid up to sweeten their offers. New York State Gaming Commission Executive Director Robert Williams emphasized that bidders’ economic development commitments will be the most important consideration.
Although the costs will be high, the opportunity is of the once-in-a-lifetime nature for stakeholders. The downstate region of New York is one of the most populous in the world and a tourist destination.
While Holliday has the financial incentive to do all he can to help Caesars land a license, his voice will be part of a crowded field. There are diverse voices regarding Caesars’ proposal, too.
Opposition and support for Caesars’ proposal
Caesars, Roc Nation, and SL Green will be extolling the virtues of their proposal throughout 2025, such as Roc Nation’s promise to donate $15 million to community programs in Hell’s Kitchen. They aren’t alone in supporting the project.
Local officials like Manhattan Borough President Mark Levine have expressed support along with numerous labor unions representing workers in the building trades. The support has not been unanimous in the affected area, however.
Civic organizations and guilds for theater workers in Times Square oppose the plans. They argue that residents do not want a casino in the area and fear that the casino would cannibalize Broadway theaters.
State officials are expected to decide which parties will receive licenses by the end of 2025. If Caesars is on that short list, Holliday will be among those celebrating that news.
