A Form 8-K filing by SL Green with the SEC late in December uncovers details regarding the multi-million-dollar bonus, contingent on the success of the bid for one of three downstate New York casino licenses
Nearly a dozen gaming and entertainment operators are hoping to win one of three new downstate New York casino licenses. The process, which has been ongoing for several years, enters a key phase in 2025, considering that the winning bidders are expected to be announced by the end of the year. While bidders hold their breath for the announcement of the New York State Gaming Commission, competition remains fierce as a downstate casino license represents a unique opportunity.
SL Green’s Boss May Receive a Significant Bonus
The recognizable hospitality and gaming company, Caesars Entertainment, in collaboration with Jay-Z-owned Roc Nation and SL Green Realty Corp. is one of the coalitions that hopes to win a casino license. With the bidding process expected to officially roll out at some point this year, if Caesars’ proposal for a New York City’s Times Square casino is successful, the operator’s real estate partner’s CEO stands to receive a hefty bonus.
This is evident based on a Form 8-K filing with the US Securities and Exchange Commission by SL Green. The filing uncovers details regarding the remuneration of the company’s CEO, Marc Holliday. Per the filing, the executive’s term as CEO and chairman was extended for three and a half years through July 18, 2028.
Notably, the SEC filing confirms that Holliday is set to receive a significant bonus contingent on the success of the planned Times Square casino. Overall, the executive is expected to benefit from a $10 million bonus, provided that the project led by Caesars, SL Green and Roc Nation is completed. According to the announcement, this bonus would be in addition to Holiday’s basic salary of $1.4 million per year, as well as various bonuses.
“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,“
reads the Form 8-K filing with the US Securities and Exchange Commission
The Cost of the Project Is in Billions
The size of the bonus that Holiday will receive if the Times Square casino project is successful, can be compared to life-changing prizes from the lottery. Undoubtedly, the $10 million bonus also signals the importance of this project for the entire coalition.
However, it pales in comparison to the cost of the project itself, which is expected to surpass $1 billion. Licensing alone is likely to be in the realm of $500 million, if not more, while approximately $500 million or more is expected to be dedicated to the development of the casino.
An important factor that would decide the success of the bids is the investment in community programs. Last year, Caesars, SL Green and Roc Nation confirmed that their casino bid is expected to include a $250 million grant commitment to Hell’s Kitchen. The immediate grant that Hell’s Kitchen’s community will benefit from would be $15 million. Still, those grants remain contingent on the success of the proposal.
