MSG renovations deflate corporate profits

TRD NEW YORK /
Aug.August 29, 2011 04:16 PM

alternate
text
Construction at Madison Square Garden (source: Madison Square Garden)

When complete, construction at Madison Square Garden will help push ticket prices up 50 percent, but for now, it’s depressing the public corporation’s earnings. Deadline.com reported that with the entertainment venue closed for women’s basketball, concerts and shows due to renovations, second-quarter profits were down 39 percent from the previous quarter and fell 21 percent below analysts’ expectations.

The renovation will continue over three summers and is expected to cost between $775 million and $850 million. The arena closed immediately after the end of the Knicks’ season in April and will re-open in October for all regular season games of its two most profitable tenants, the New York Knicks and the New York Rangers. The New York Liberty of the Women’s National Basketball Association had been forced to play its games at the Prudential Center in Newark as a result of the construction. The lower bowl is being renovated this summer, while next summer will focus on the upper bowl, and in 2013 two bridges will be added across the arena’s famed ceiling. The construction is expected to create the equivalent of 1,300 full-time jobs. [Deadline]


Related Articles

arrow_forward_ios
This month in real estate history

This month in real estate history

Madison Square Garden Co. is accusing the mayor of Inglewood of “outrageous, fraudulent conduct”

Madison Square Garden Co. is accusing the mayor of Inglewood of “outrageous, fraudulent conduct”

City and MSG look like they’re headed toward showdown over stadium relocation

City and MSG look like they’re headed toward showdown over stadium relocation

Phil Jackson wants to sell his Midtown co-op

Phil Jackson wants to sell his Midtown co-op

Pick and roll: Another Knicks player renting at Moinian’s Sky

Pick and roll: Another Knicks player renting at Moinian’s Sky

New York Knicks star lands Chelsea penthouse for $5.8M

New York Knicks star lands Chelsea penthouse for $5.8M

Relocating MSG would cost $5B: Think tank

Relocating MSG would cost $5B: Think tank

MSG’s Dolan family sees fortune increase in Cablevision deal

MSG’s Dolan family sees fortune increase in Cablevision deal

arrow_forward_ios
Loading...