The project – which is running over its construction budget – is expected to be the crown jewel of AEG’s sprawling sports center and is seen as a key component in the revitalization of downtown.

For AEG, it’s a clear sign that the heart and soul of Chairman Philip Anschutz’s growing sports and entertainment empire is in Los Angeles. Already the second-largest U.S. sports and live entertainment company, AEG is making a major push to expand its live theater, music and awards show staging presence in conjunction with L.A. Live’s arrival.

“This is clearly our operations hub, and it grows even more important as we get closer to the opening of L.A. Live,” said Leiweke, who is the right-hand man of the reclusive Colorado billionaire and serves as the public face of AEG. He’s been here since 1996, when he arrived to oversee construction of the Staples Center.

Today, Leiweke oversees more than 50 AEG subsidiaries, including two newly formed divisions – AEG Facilities and AEG Entertainment – with more than 4,000 employees and revenues in excess of $1 billion. Among the holdings that AEG has acquired in the past decade are pro hockey’s L.A. Kings, pro soccer’s L.A. Galaxy and a minority stake in the NBA’s Lakers. AEG also owns two independent film studios, Walden Media and Bristol Bay Productions. AEG’s Galaxy made worldwide headlines recently with its $250 million acquisition of soccer star David Beckham.

All of this growth in the sports and entertainment arm of AEG is coming as Anschutz is stepping back from Qwest Communications International, the Denver-based telecom company he founded. Anschutz resigned as a Qwest director last year, and said in a statement that he planned to focus on his other holdings that include, in addition to the sports and entertainment holdings, oil companies, railroads, newspapers and a theater chain.

In the fall, Anschutz sliced his direct holdings in the company to about 66.4 million shares, after selling and donating nearly 80 million shares. He also sold shares in June, July and October of last year. Most recently, on the day after the Beckham deal was announced, Anschutz announced that he was selling 43 million Qwest shares for $297 million.

Leiweke denied that there was a relationship between the expansion of AEG’s sports and entertainment holdings and Anschutz’s Qwest sell off.

“AEG happens to have a phenomenal chairman, but there’s nothing he has to do in his other worlds to provide capital necessary to finance our growth; nothing we are doing requires him to liquidate any assets,” Leiweke said. Nevertheless, sports and entertainment properties now represent a major portion of Anschutz’s fortune, estimated by Forbes magazine to be $7.8 billion.

While much of AEG’s focus is here, the firm has significant holdings outside of Los Angeles, including a New Jersey soccer stadium and arenas in Missouri, Berlin and London. Anschutz’ Regal Entertainment Group, based in Tennessee, is the largest motion picture exhibitor in the world, operating nearly 20 percent of all indoor screens in the U.S. (and will include the multiplex being built for L.A. Live).

Ballpark figures
AEG’s L.A. Live plans call for the 4 million-square-foot development to include 226 condominium units, an 878-room hotel operated by JW Marriott and a 123-room luxury hotel connected with Ritz-Carlton.

The project appears to be sailing along now, having conquered some hurdles along the way.

Faced with a softening real estate market, residential builder KB Home pulled out of the condo development in December, becoming the second major firm to withdraw from the project. KB came aboard last year, after original partner Lew Wolff withdrew. Despite speculation that AEG was looking for another partner, Leiweke said AEG will go it alone now.