Sydney is a step closer to securing a major new indoor arena in the city's east, with two frontrunners emerging to lead the redevelopment of the Entertainment Quarter at Moore Park.

The project could include a state-of-the-art arena with a capacity between 15,000 and 20,000, providing a significant boost for the city's live entertainment and sports infrastructure.

The NSW Government has confirmed that the next stage of the process is underway, following the closure of expressions of interest in early December.

Although final proposals are still under wraps due to confidentiality rules, it's understood that two consortia have emerged as key contenders.

One is the current leaseholder of the Entertainment Quarter, Carsingha Investments, which includes high-profile business figures Gerry Harvey, John Singleton and Mark Carnegie.

In 2019, the group submitted an unsolicited proposal to revamp the precinct, featuring outdoor music spaces, a 5,000-capacity indoor venue, hawker-style food markets, a commercial theatre, green space upgrades and a proposed hotel. That original plan sparked debate at the time, particularly over the hotel component, but offers insight into the group's ongoing vision for the precinct.

The second frontrunner is infrastructure investment firm Plenary Group, which has not publicly disclosed details of its submission.

While the government hasn’t mandated a new arena as part of the redevelopment, both Premier Chris Minns and Minister for Music and the Night Time Economy John Graham have made it clear that an indoor venue of up to 20,000 seats is a preferred outcome.

Such a facility would fill a long-standing gap in Sydney’s venue network since the closure of the Sydney Entertainment Centre in 2015, complementing existing venues like Qudos Bank Arena in the west and the adjacent Allianz Stadium.

Minister Graham said the government was enthusiastic about unlocking the full potential of the Entertainment Quarter precinct, which has long underperformed despite its prime location next to Centennial Park and Sydney’s major sports and entertainment venues.

Business Sydney chief executive Paul Nicolaou said the time was right for action, noting the strategic importance of revitalising the EQ precinct.

“A redeveloped Entertainment Quarter would help reinforce Sydney’s position as a global events and cultural capital,” he said.

“With strong private interest, a premium location and the recent removal of the concert cap at Centennial Park, this is a logical next step to boost the city’s night-time economy and visitor appeal.”

Plans were announced in February 2023 to reinvigorate the precinct by constructing an AFL oval on within the main Sydney Showground arena, with a capacity of 4,000 and the ability to host AFLW matches for the Sydney Swans, to be known as the Showring Oval, however its unknown if those plans still remain a possibility.

The redevelopment has been in the works for years, but momentum has built in recent months following the government’s push to support live music, cultural infrastructure and city vibrancy.

A final decision on which bidders will progress to the next stage is expected soon.