Las Vegas Sun

May 14, 2024

Disney expands Strip presence with ESPN Zone

It's often been said over the past decade that the Strip has converted itself into a Disneyland for adults.

On Thursday, Disney decided to join in on that recreation.

In a news conference attended by ESPN announcers, the Los Angeles Lakers Girls and a slew of MGM MIRAGE executives, the Walt Disney Co. announced plans to open "ESPN Zone," a sports-themed restaurant and entertainment complex, at the New York-New York hotel-casino. The 33,000-square-foot, two-story complex will open in the summer of 2001.

Mickey Mouse and Donald Duck it isn't, but it is the largest presence yet by the Burbank, Calif., entertainment giant -- a company that tourism promoters say has been an attractive target for expansion in Las Vegas for years.

Currently, Disney's only Las Vegas Strip presence is a Disney store in the Forum Shops at Caesars -- but company executives say they were waiting for the right opportunity to expand in Las Vegas, rather than being apprehensive about entering the market.

"(ESPN) is a perfect brand for Las Vegas, and this is a perfect facility for our brand," said Randall Baumberger, vice president of Disney Regional Entertainment. "Las Vegas is a market anyone would look at."

And Baumberger wouldn't rule out the possibility Disney would expand further on the Strip.

"We are absolutely always looking for opportunities," Baumberger said. "We'll continue to look at Las Vegas for opportunities on an ongoing basis. The decision to put a flagship store in Forum Shops and the opening of ESPN Zone shows our company's support for this market."

The company has been looking at Las Vegas as a possible home for an ESPN Zone since 1998. But Baumberger said the company was finally attracted by the quality of MGM MIRAGE's properties, as well as the location offered by the New York-New York. The ESPN Zone will have frontage along the Strip at the north end of the hotel-casino -- and is located a short walk from the MGM Grand Garden Arena, which often hosts boxing matches and other sporting events.

"One thing they told us ... is that this would fit no other place but the New York-New York," said Daniel Wade, co-chief executive of MGM MIRAGE. "The facade is perfect for it."

And for the brand-conscious MGM MIRAGE, it means an opportunity to bring another well-known brand under its roof -- one associated closely with sports, which is becoming a big business in Las Vegas.

"One major reason for our merger (with Mirage Resorts Inc.) was the brands we acquired," said Terry Lanni, chairman of MGM MIRAGE. "Brands were a very important reason for bringing the two together. We've been looking for other brands.

"ESPN Zone is a mecca to people ... it is very electric."

The ESPN Zone will be the seventh in the chain; currently, ESPN Zone operates in Baltimore, Chicago, New York, Atlanta and Washington. A sixth ESPN Zone will open at Disneyland in Anaheim, Calif., in January. Las Vegas was a natural market for expansion, Baumberger said, because of its booming economy, its growing base of residents and tourists and the city's deep interest in sports.

The complex will feature three separate elements -- "The Studio Grill," an American grill restaurant "with a decidedly Las Vegas flair;" "The Screening Room," a huge television viewing area for watching sporting events; and "The Sports Arena," a 10,000-square-foot area filled with interactive sports games.

It's a facility that caters to even the smallest details for sports fanatics -- the placemats will be printed periodically throughout the day to show the latest scores, while 12 mini-TVs will be installed in each restroom.

"I can tell you that during major sporting events those are coveted seats," Baumberger joked.

And, much to MGM MIRAGE executives' delight, ESPN and Disney-owned ABC often air broadcasts from within ESPN Zones around the country. That means exposure for the New York-New York, Baumberger said, particularly when big boxing matches or other sporting events are in Las Vegas.

Once complete, the ESPN Zone will become "the crown jewel" of the New York-New York, said casino President Felix Rappaport -- an element that will draw both tourists and locals alike.

"We believe it's going to attract people from up and down the Strip, no matter where they're staying," Rappaport said. "It's going to be an institution at this property forever."

It will be at the center of what Rappaport terms a "tinkering" with the New York-New York product. The sports book will be moved to be close to the ESPN Zone, while several other yet-to-be-announced restaurants will be opened nearby. Rappaport said the property will also be soon adding new high-end slot and table game areas.

"We have a very successful property, but we feel this is an opportunity to attract more customers to this property, perhaps even some locals," Rappaport said. "Someone is always raising the bar (in Las Vegas). You always have to be refining your product."

In the end, that spelled the end of the Motown Cafe, which the New York-New York bought out to make way for ESPN Zone. The Motown Cafe closed in October.

"(Motown Cafe) could have been successful by most standards for a long time, but you have to constantly reinvent yourself in this city," Rappaport said.

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