State Champ Radio Madison Square Garden
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The price tag on opening the much-anticipated Sphere arena in Las Vegas is now at a whopping $2.3 billion after the company added an additional $125 million recently, according to documents filed with the SEC on Wednesday (May 10).
That’s more than $1 billion increase from the original projection of $1.2 billion when the Sphere was first announced in 2018, although industry experts say the more realistic estimate came the following year when architects from architecture firm AECON estimated the actual cost of the project would likely be $1.7 billion.
The project’s price has continued to rise since breaking ground in 2021 due to negative effects on the construction business caused by the coronavirus pandemic and the the one-of-a-kind entertainment complex’s unusual nature and design. Company officials cited the “overall complexity of the project” for the current increase while noting they had made “significant progress,” including completing the “LED installation on the Exosphere earlier in the third quarter” that will allow the venue to make dramatic design and appearance changes at the push of a button. Company officials have also made significant progress building out “the venue’s interior spaces, including the suites and hospitality areas,” the filing states.
U2 will open the venue on Sept. 29 with a five-week, 17-show run that has already generated hundreds of millions of dollars in sales with tickets averaging between $1,200 to $1,500 apiece.
On March 30, Madison Square Garden Entertainment finalized plans to spin off its live entertainment business, and launch a new company called Sphere Entertainment Co. that included the Sphere venue, as well as its MSG’s sports television network MSG Networks and Tao Group Hospitality. Shortly after, the company sold its majority interest in Tao Group to Mohari Hospitality for about $300 million.
As of Tuesday, the Sphere Entertainment Co. had over $230 million in cash available, according to the SEC filing, thanks in part to the Tao Group sale, as well as $65 million in funds in a delayed draw term loan facility with Madison Square Garden Entertainment Corp. The recently spun-off company reported revenues of $363.3 million for its first quarter as Sphere Entertainment Company — a 3% increase of $10.8 million as compared to the same business sectors in prior year quarter. The company reported a 1.1% decrease in operating loss to $70.3 million and a 2.1% increase in adjusted operating income to $19.4 million.
After years of competitive banter and cold feet, a date has reportedly been set for the epic Verzuz battle between music legends Diddy and Jermaine Dupri.
In a video shared over the weekend, Diddy confirms to Busta Rhymes that the show will take place on Sept. 8, at New York City’s Madison Square Garden. “We gon’ have you out the rafters flying out the sky,” he excitedly added.
While fans have been murmuring about a potential battle between the Atlanta mainstay and Bad Boy CEO since 2020, the two legends joined the conversation in 2021, after Dupri challenged Diddy in a tweet. Initially, Diddy turned his proposition down, declaring that Dupri didn’t have enough hits. “I’ll smash you with just Biggie n Mary [J. Blige]. But I do have the utmost respect on you as a musical legend,” he said, adding, “[Dr.] Dre the only one can get in the ring w me.”
The two even playfully argued during an Instagram Live with Fat Joe and Snoop Dogg about who would win, but in 2022 they said they’d go head-to-head in a “non-Verzuz” battle, after co-founders Swizz Beatz and Timbaland filed a $28 million lawsuit against Verzuz parent company Triller. “We’re not f—ing with Triller until they take care of Timb and Swizz,” Diddy said in a now-deleted video. In September 2022, Swizz and Tim settled their lawsuit with Triller, now owning a larger share of the company.
While neither Timbaland nor Verzuz have yet to comment on the scheduled date, Swizz shared a number of posts to his Instagram Story confirming the battle. A number of memorable Verzuz battles have already taken place at New York’s famed Madison Square Garden, including The LOX vs. Dipset and Ja Rule vs. Fat Joe.
While many fans think Diddy will come out on top, others note that Dupri’s pen is untouchable, and that the So So Def founder is individually responsible for a number of diamond hits, while Diddy often collaborated with a team. Come September, all that will matter is the court of public opinion, as Verzuz does not declare an official winner to their battles.
Dupri has reached RIAA-certified diamond success thanks to his work on Usher’s Confessions and has achieved 11 career Hot 100 No. 1 records. Diddy boasts his own set of impressive achievements as a producer and artist, playing a pivotal role in the careers of icons including Mary J Blige and Biggie Smalls.
Madison Square Garden chairman James Dolan remains defiant in the face of an existential crisis at 4 Pennsylvania Plaza, where a lawsuit filed by two dozen ticket scalpers has mushroomed into a multi-pronged fight with some of New York state’s most powerful political forces — ostensibly at the worst time possible for the World’s Most Famous Arena.
Dolan is currently facing the revocation of Madison Square Garden’s alcohol license from the State Liquor Authority (SLA), a push by New York state Senate Democrats to revoke a $42 million tax break granted to the Garden four decades ago and an investigation by New York Attorney General Letitia James.
It all stems from a lawsuit filed against MSG in October, after more than two dozen longtime season ticket holders identified by Madison Square Garden as scalpers were told that their Knicks tickets were not being renewed for the 2023/2024 season. The brokers sued, arguing that team officials were booting them out of their seats just as the Knicks were finally getting good (the team is expected to make the NBA playoff this season).
Dolan responded to the lawsuit by barring the broker’s attorney, Larry Hutcher, and all lawyers from his firm, Davidoff Hutcher & Citron, from entering venues owned and operated by MSG. Soon, the policy was expanded to all law firms suing MSG, leading to a lawsuit from Hutcher and outrage from city and state officials.
The policy affects about 90 law firms and is being enforced using facial recognition software at all MSG properties, including Radio City Music Hall, where a mother chaperoning a Girl Scout troupe to see the annual Christmas Spectacular was pulled aside by security and forced to leave the venue after being identified as an attorney working at a firm with pending litigation against MSG. In that instance, the attorney was forced to wait outside while her daughter and friends attended the show.
The lawyer ban is unfolding just months ahead of a key hearing in July when MSG officials plan to ask city lawmakers to renew a special permit required for all 2,500-plus capacity venues to operate in the city — an ask complicated by a current disagreement over whether to relocate MSG’s namesake venue.
Madison Square Garden sits atop Penn Station, a long-in-decline rail station used by passengers coming in from Long Island and New Jersey. MSG bought the original Penn Station in 1960, demolished the above-ground structure and relocated the station below street level. Today, more than 600,000 passengers use the station each day. That’s led to calls from the Metropolitan Transit Authority (MTA) and state officials, including multiple past governors, to move Madison Square Garden and fix Penn Station. As a result, city and state leaders are facing increasing pressure to deny MSG’s request for a permanent permit — and Dolan’s ongoing antics aren’t helping.
In the state Senate, Democrats led by Sen. Brad Hoylman (D-Manhattan) have put Madison Square Garden’s $42 million property tax break on the chopping block over the facial recognition brouhaha. Hoylman wants any revenue created by stripping away the tax break sent to the MTA, an overtly symbolic gesture referencing the MTA’s battle with MSG over the future of Penn Station.
In response, MSG released a statement that read, “It’s interesting that Senator Hoylman is rallying to end governmental subsidies for corporations when just last year he voted in favor of legislation that extends a $420M governmental subsidy for the film industry and currently sponsors legislation to create new subsidies for the musical and theatrical production industry. Madison Square Garden is a significant job creator and an economic leader within both our community and the city. Our tax abatement is no different than the government subsidies that every single stadium and arena in New York City and state receive and in fact, is hundreds of millions of dollars less than most other venues.”
Next came a letter from an SLA investigator notifying MSG that it was considering revoking the liquor license of all MSG-owned and operated venues for violating a city rule that licensed establishments be “open to the public.”
“As a condition of your license your premises must remain open to the public, i.e., groups or individuals cannot be excluded on the basis of criteria that are not directly related to your duties under your SLA license, and that you must exercise a high degree of care and supervision to prevent any violations of the Alcoholic Beverage Control Law and the Rules and Regulations of the State Liquor Authority,” said the SLA in the letter.
Days later, the SLA demanded Dolan stand before the liquor authority and explain why MSG’s license should not be stripped away.
Dolan responded with a press release calling the SLA a “gangster-like governmental organization has finally run up against an entity that won’t cower in the face of their outrageous abuses.”
Dolan’s attorney, Randy Maestro, proceeded to file a Rule 78 petition against SLA — a measure used in New York State court to challenge a ruling or determination by a state agency. In a 47-page filing in New York Supreme Court, Dolan accused the SLA of a long history of corruption and even attacked one the SLA’s investigators, accusing him of racial bias and corruption while serving in the NYPD for 19 years.
The lawyer ban, Maestro wrote, is meant to stop lawyers seeking to “improperly leverage their access to MSG’s venues to craft and develop discovery strategy by engaging in improper communication with MSG employees during pending litigation.” He also argued that the policy “temporarily limits the admission of less than 0.8% percent of New York lawyers, less than 0.03% of the five million visitors to MSG’s venues every year, and less than 0.01% of all New Yorkers.”
A hearing on the SLA article 78 motion is preliminarily scheduled for March, while a decision on the tax break is due April 1 in Albany.
Black Coffee continues making history. The first South African artist to ever win the Grammy for best dance/electronic album will soon become the first South African DJ/producer to headline Madison Square Garden.
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Announced Friday (March 10), the MSG show will happen Oct. 7, 2023. American Express members can access tickets on March 14, while Black Coffee’s top Spotify listeners can buy tickets on March 16, with tickets opening to the public on March 17.
The October show, Black Coffee’s largest U.S. set to date, will feature him, a 12-piece orchestra, surprise guests and a 360-degree stage setup.
“Today’s announcement is one of those that just becomes difficult to put into words” the artist born Nkosinathi Maphumulo says in a statement. “As a performer sharing a stage that has hosted some of the greatest artists from all different genres and backgrounds just makes it all so real! I’m completely honored to make my Madison Square Garden debut in 2023!”
The MSG show follows Black Coffee’s three sold-out shows at The Brooklyn Mirage last fall. The MSG performance is a co-production of Avant Gardner and The Bowery Presents, marking their biggest co-production to date. Black Coffee’s most recent release is his 2021 album, Subconsciously. He also worked on multiple tracks from Drake’s 2022 Honestly, Nevermind LP.
The show also marks continued momentum for dance music at Madison Square Garden, following Skrillex, Four Tet and Fred again..’s sold out show at the venue last month.
“I genuinely try to carry the flag of my country in everything that I do,” Black Coffee told Billboard ahead of the 2022 Grammys. “So to be able to represent on behalf of my people at such a prestigious and global level is a major honor. There is so much incredible talent coming not only from South Africa, but coming from the African continent as a whole, and being able to bring our culture to these types of platforms only opens the window of opportunity further and further for all of these incredible acts.”
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Revenues for Madison Square Garden Entertainment (MSGE) rose 24% to $642.2 million in the second quarter, bolstered by strong consumer and corporate demand for events plus a raft of cost cuts, the company reported Thursday (Feb. 9).
Speaking for the first time since publicly announcing the company is exploring a sale of its stake in Tao Group Hospitality, MSGE CFO Dave Byrnes said that revenue growth came from broad-based demand for events, hospitality, suites, sponsorship and merchandise.
The company is also undergoing a complex restructuring to spin off its live entertainment business — which houses its namesake venue and the Rockette’s Christmas Spectacular production — from its business focused on MSG Sphere, the state-of-the-art Las Vegas venue currently under construction. The latter business would also house MSG Networks and (at least for now) Tao Group.
“We are moving swiftly and anticipate completing the spin-off by the end of March,” Byrnes said on a call to discuss the financial results.
Byrnes also said that the MSG Sphere, with its 580,000 square-foot LED exosphere (the world’s largest LED screen), is expected to open in September with an as-yet-announced artist residency and potentially an “original attraction” from a leading Hollywood director. Byrnes said they expect to announce both in the coming weeks.
It is those two types of events — artist performances and films — plus advertising, sponsorship and hospitality, that MSGE hopes will help pay for the $2.175 billion price tag of building the Sphere.
MSGE had roughly $2.01 billion in debt as of the quarter ending on Dec. 31, and about $554 million in cash on hand and restricted cash.
The company announced last quarter that it was exploring areas within the company to cut costs, including letting go of staff in areas including the MSG Networks division. The severance pay and other elements related to those job reductions led to a $13.7 million charge in the quarter.
The MSG Networks segment generated $158.9 million in revenue, 1% lower than a year ago, due to higher rights fees partially offset by increasing advertising revenues.
The company’s entertainment segment generated $356.5 million, up significantly over last year on mostly sold-out events at The Garden and a full run of the Christmas Spectacular — its first in three years due to the pandemic.
Byrnes also elaborated on the company’s decision to shop around its stake in the Tao Group, saying it was time for the company to explore the opportunity to provide a significant return to its shareholders.
MSG paid $181 million for a 62.5% interest in the hospitality group in 2017 and now owns 67% of the company.
“The bidding process is extremely robust with significant interest from multiple bidders,” Byrnes said. “We’re moving forward through the process and we’ll keep you updated as we have additional news.”
The Tao Group generated $136 million in revenue, up 16% from last year when the Omicron variant of COVID-19 dampened demand for corporate holiday parties and dining out.
Additionally, MSGE filed a request on Thursday with the New York City Department of Planning to lift the time limit on Madison Square Garden’s special operating permit, which is currently set to expire on July 24. The Garden deserves to remain where it is in perpetuity, the company said in a statement, because moving it could cost $8.5 billion in public funding and improvements to the portion of Penn Station located beneath The Garden are already proceeding without the venue needing to move.
New York Attorney General Letitia James has sent a letter asking Madison Square Garden Entertainment (MSGE) to explain its reported use of facial recognition technology to bar individuals involved in litigation against the company from its venues, the Attorney General’s office said Wednesday (Jan. 25).
The letter cites reports that approximately 90 law firms comprising thousands of lawyers are affected by a policy that MSG Entertainment allegedly put in place, in which the facial recognition tech has been used to identify and bar attorneys with legitimate tickets from venues including MSG and Radio City Music Hall. The letter says the office has “concerns that the Policy may violate the New York Civil Rights Law and other city, state, and federal laws prohibiting discrimination and retaliation for engaging in protected activity.” The letter also says that the office is concerned that such practices could run afoul of laws prohibiting retaliation and that the technology “may be plagued with biases and false positives against people of color and women.”
“MSG Entertainment cannot fight their legal battles in their own arenas,” James said in a statement included in a press release from her office on the matter. “Madison Square Garden and Radio City Music Hall are world-renowned venues and should treat all patrons who purchased tickets with fairness and respect. Anyone with a ticket to an event should not be concerned that they may be wrongfully denied entry based on their appearance, and we’re urging MSG Entertainment to reverse this policy.”
In a statement sent to Billboard, an MSG spokesperson responded to the letter, saying, “To be clear, our policy does not unlawfully prohibit anyone from entering our venues and it is not our intent to dissuade attorneys from representing plaintiffs in litigation against us. We are merely excluding a small percentage of lawyers only during active litigation. Most importantly, to even suggest anyone is being excluded based on the protected classes identified in state and federal civil rights laws is ludicrous. Our policy has never applied to attorneys representing plaintiffs who allege sexual harassment or employment discrimination.”
In the past few months, the New York Times has reported that MSG Entertainment, owned by James Dolan, has begun using facial recognition software to identify a list of attorneys representing clients that are involved in litigation against the company, and is barring not just those lawyers, but all lawyers from their respective firms, from attending concerts or other events at its venues, which include MSG, Radio City, the Hulu Theater, the Beacon Theatre and others. Events at which the policy has allegedly been utilized include games involving the NBA’s New York Knicks and NHL’s New York Rangers, both of which Dolan also owns.
The use of facial recognition technology is legal in the state of New York, though some lawyers who have sued the company claim that using it to bar a list of attorneys with open litigation against MSGE is not. The public outcry has caught the attention of the Attorney General, who is requesting a response both justifying the policy and detailing attempts to abide by the laws outlawing discrimination and retaliation by Feb. 13.
In the first full year of tracking since the pandemic, New York’s Madison Square Garden (MSG) returns to No. 1 on Billboard’s year-end Top Venues (15,001+ capacity) chart. But more than that, MSG is the highest-grossing venue of any size or shape, eclipsing all stadiums, arenas, theaters and clubs. According to figures reported to Billboard Boxscore, Madison Square Garden hosted 124 shows during the tracking period, combining to $241.4 million and 1.8 million tickets.
For those following Billboard’s monthly Boxscore charts, MSG’s No. 1 finish shouldn’t be a huge surprise. The arena led the monthly venue chart in February, August and September, the last of which was a record-setter for the biggest one-month sum for a venue since the monthly rankings launched in early 2019. MSG’s 22 September shows raked in a combined $64.3 million.
MSG appeared on the 10-position chart for 10 of the year’s 12 months, only missing in January and March. Otherwise, including its three months at No. 1, it spent half of the year in the top three.
With 124 shows, MSG’s calendar was packed. Still, some heavy hitters can take some credit for its ultimate triumph. Harry Styles, No. 1 on the year-end Top Boxscores chart, led the charge with his mammoth 15-show residency. The shows collectively grossed $63.1 million and sold 277,000 tickets between Aug. 20 and Sept. 21, a key factor in the venue’s monthly wins.
And while they are regarded as individual engagements, Billy Joel’s ongoing residency continued with 11 shows during the tracking year – one show in each month except for January, during a largely dark period amid the Omicron wave. His shows combined to $29.6 million and 205,000 tickets sold. That means that Styles and Joel’s 26 shows accounted for $92.7 million, or 39% of the venue’s total annual gross.
Following Styles atop the heap, Phish ($8.8 million), Rage Against the Machine ($8.2 million), Elton John ($6.9 million) and Genesis ($5.3 million) round out MSG’s top five grossing concert engagements of the year with multi-show runs. Based on attendance, Styles leads Phish (76,000), Rage Against the Machine (71,000), John Mulaney (42,000) and Luke Combs (36,000).
MSG became the first venue to earn more than $200 million in a year when it closed out 2019 with $221.7 million. The arena reaches new heights three years later, but considering 2020 and 2021 were shortened due to COVID, its own record re-set is essentially immediate. The $241.4 million gross is the largest for any venue in a single year.
While Boxscore charts date back to the late ‘80s, year-end venue charts launched in 1999. In those 24 years, MSG has led the charge among venues with a capacity of 15,001 or more in 14 of those years. After starting at No. 6 in 1999, MSG was No. 1 for nine consecutive years from 2000-2008. It then floated around the top 10 while London’s O2 Arena assumed the throne from 2009-2016, falling one year short of MSG’s record ‘00s-era reign.
MSG regained the title for 2017-2020, slipped to No. 2 last year behind Las Vegas’ T-Mobile Arena, and returns to the summit for 2022.
