Mark Faber, AEG senior vice president for global partnerships will sell luxury suites for the new arena being built by the MGM Resorts International-AEG Group partnership starting at 0,000. There will be 44 suites between the lower and upper bowls, in addition to eight “bunker” level, or event level suites. AEG’s Staples Center in Los Angeles contains 150 suites spread out on three levels.
After going to arenas throughout the country and analyzing Las Vegas’ population and corporate demographics, MGM-AEG decided the 44 suites and eight bunker level suites are an appropriate number. Of the 44 luxury suites, 42 will be sold for $170,000 to $235,000 per year, while two of them will sell on an event by event basis. For the purchase of each 310-square foot feet, you are entitled to 12 tickets per event, and are allowed to purchase four more tickets. The arena is expected to host about 100 events per year.
The caveat comes with companies being forced to commit to either a five, seven, or 10 year deal for the suite. MGM-AEG is also offering a deal where three luxury suites will be combined to form a “Grand Suite” which comes with 36 tickets. There are four of those available, although one has already been sold, according to Faber.
Faber declined to say exactly how much a bunker suite would cost, but the 700-square foot suites, located below the lower bowl will offer 16 premium seats at the lower level, and cost quite a bit more than the luxury suites. Faber also said over half of the suites have already been sold, but decided to protect the anonymity of the buyers.
The suites are furnished with three tiers of sofa-style shared seating, four additional stools for extra tickets sold, and will feature contemporary design. They will also feature a 55-inch wall TV, cabinets with locks, and a food serving table complete with ice chests, warmers, and a refrigerator.
MGM-AEG will also sell premium memberships to those who wish to gain entry to two large 2,200-square-foot club areas, which range from $3,500 to $5,000. Nearly 3,000 of the total 20,000 seats in the arena fall into the suite or club seat category according to Faber.
Schneider Electric, a Paris-based energy management company, will create the arena’s power system, and have signed a multi-year deal to become a “founding partner” for the arena. This marks the first big sponsorship for the arena, and the company’s first foray into sports sponsorships. Schneider has 150,000 employees worldwide and $25 billion in annual revenue.
The arena will likely have as many as 10 founding partners. Instead of obtaining numerous sponsors for limited lucrative arrangement, the business plan calls for fewer, but major sponsors for tailor-made marketing opportunities in the building. “Less is more for the consumer/fan and also the sponsor himself,” said Nick Baker, AEG senior vice president of global partnerships.
