MSG: MP’s move has ‘no impact’ on Sphere plans
Madison Square Garden has insisted that levelling up secretary Michael Gove’s move to temporarily halt its MSG Sphere London project has “no impact” on its plans.
Gove has issued an Article 31 holding directive, which temporarily blocks the London Legacy Development Corporation (LLDC) and the mayor of London from signing off proposals for the venue. The holding directive also gives Gove the chance to call in the plans under Section 77 of the Town and Country Planning Act 1990.
The move comes after opposition from local residents and AEG Europe, which has repeatedly voiced concerns over the MSG Sphere London’s proximity to The O2. AEG claims the LLDC’s decision-making process has been “seriously flawed”, adding that that the proposed LED-covered Sphere will add congestion to the local public transport infrastructure and blot London’s skyline.
However, an MSG Sphere London spokesperson tells Architects Journal that MSG is pleased with the progress of its planning application.
“We always expected the government to take the opportunity to review our application… their formal notice has absolutely no impact on our plans in any way”
“We always expected the government to take the opportunity to review our application for MSG Sphere London and their formal notice has absolutely no impact on our plans in any way,” says the spokesperson. “MSG Sphere will bring unique entertainment experiences to London and deliver many cultural and economic benefits, including creating thousands of jobs and generating billions of pounds for the local, London and UK economy.”
MSG Sphere London would become MSG’s first property outside of the US. Last March, the LLDC approved plans for the 21,000-capacity, 90m-tall venue in Stratford, east London, four miles from The O2 (20,000-cap) in North Greenwich.
Rock band U2 will launch the MSG Sphere at The Venetian in Las Vegas this autumn with the Live Nation-presented U2:UV Achtung Baby Live At The Sphere residency.
Earlier this month, the Las Vegas Review Journal reported that MSG Sphere president Lucas Watson is no longer with the company.
“As MSG Entertainment gets closer to the opening of MSG Sphere in Las Vegas, we will be simplifying and streamlining our commercial structure for the venue, while leveraging existing expertise across the MSG family of companies,” said an MSG statement. “With these changes, Lucas Watson has decided to exit the organisation, and we wish him well in his future endeavours.”
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AEG calls on MP to intervene on MSG Sphere London
AEG Europe has stepped up its opposition to Madison Square Garden’s proposed MSG Sphere London venue by calling on levelling up secretary Michael Gove to block the scheme.
If given final approval, the 21,500-cap Sphere will be located in Stratford, east London, four miles from AEG’s The O2 (20,000-cap) in North Greenwich. AEG is a longtime critic of the scheme, having voiced concerns over its proximity to The O2 and – according to a 2019 investigation by The Times – creating a residents’ group in opposition.
The MSG scheme was approved in principal in March last year and handed a further boost last month when its digital advertising display plans for the exterior of the venue were backed by London Legacy Development Corporation’s (LLDC), which was set up to secure the legacy of the Olympic Park following the London 2012 Olympics.
However, at the end of last week, Gove asked local officials “not to grant permission on the applications without specific authorisation” by issuing a holding direction to the LLDC. AEG says the MP’s intervention at this stage is significant because he has the jurisdiction to block the development entirely.
AEG claims the LLDC’s decision-making process has been “seriously flawed”, adding that that the proposed LED-covered Sphere will add congestion to the local public transport infrastructure and blot London’s skyline.
“More than a decade after the Olympic Games, the LLDC’s planning decision process is now at odds with the views of the communities that it was set up to support and develop”
“More than a decade after the Olympic Games, the LLDC’s planning decision process is now at odds with the views of the communities that it was set up to support and develop,” says Alistair Wood, EVP real estate and development at AEG Europe. “With the LLDC due to be disbanded at the end of next year, it would be democratic for the government to intervene and back the wishes of elected councils in east London who want this inappropriate development blocked to protect the wellbeing of local people and existing businesses.
“Since these proposals first emerged back in 2017, AEG has consistently raised its objections to the unacceptable impact that this proposal will have on the operation of The O2 and the hundreds of residents who will be even more directly affected.
Last week, local MP Lyn Brown wrote on Twitter: “Last year I wrote to the government and Mayor of London about stopping the monstrous MSG Sphere. Michael Gove has now issued a legal notice and I’m hoping he’ll act. The undemocratic LLDC steamrolled all local elected opposition, so it’s only right to take the final decision out of their hands.”
MSG Sphere London would become MSG’s first property outside of the US. MSG has suggested that London has an “undersupply” of dedicated large entertainment venues compared with cities such as Berlin, Paris, Madrid and New York. The capital’s next biggest indoor spaces are the 12,500-cap OVO Arena Wembley and the 10,400-cap Alexandra Palace.
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Officials back MSG Sphere London digital ad plan
Madison Square Garden’s controversial MSG Sphere London scheme has overcome another hurdle after officials backed its digital advertising display plans.
The proposed venue, which was approved in principal in March last year, will be covered in LED panels designed to display “moving images, artistic content and branded advertising across the entire façade of the building”.
Despite a number of objections from various parties, the scheme won the support of the London Legacy Development Corporation’s (LLDC) at a meeting yesterday (24 January), subject to a five-year review. It will now be referred to the mayor of London.
If given final approval, the 21,500-cap Sphere will be located in Stratford, east London, four miles from AEG’s The O2 (20,000-cap) in North Greenwich, and become MSG’s first property outside of the US. MSG has suggested that London has an “undersupply” of dedicated large entertainment venues compared with cities such as Berlin, Paris, Madrid and New York (the capital’s next biggest indoor spaces are the 12,500-cap OVO Arena Wembley and the 10,400-cap Alexandra Palace.
However, the scheme is fiercely opposed by AEG, which has voiced concerns over MSG Sphere London’s proximity to The O2 and – according to a 2019 investigation by The Times – created a residents’ group in opposition. AEG says it is “dismayed” by the outcome of last night’s meeting.
“The design was conceived for the heart of Las Vegas and has been transposed onto this east London site: it’s the wrong design, in the wrong location”
“We are dismayed by the LLDC PDC’s decision to sign off the MSG Sphere’s advertising strategy for its digital display in the face of strong objections from Newham Council, neighbouring east London boroughs, the Royal Borough of Greenwich, the local MP, rail operators, Transport for London, Historic England, and hundreds of local residents, some of whom are represented by local campaign group, Stop MSG,” says a statement by the company.
“We call on the mayor of London to uphold his election promise to do what’s best for Londoners, including the residents of Newham who are having this huge development forced on them, by directing refusal of the planning application.”
AEG claims the advertising façade is at a “wholly unprecedented scale for London” and “totally out of keeping with the surrounding area”.
“The design was conceived for the heart of Las Vegas and has been transposed onto this east London site: it’s the wrong design, in the wrong location,” it adds. “We have concluded that there are at least 10 problems with the MSG Sphere’s proposed controls for the advertising display. Fundamentally, regardless of the findings of a review after five years, no matter how damaging and intrusive the light pollution is to the health of residents or dangerous to rail or road users, the advertisement consent will not be revoked.”
The first MSG Sphere venue, MSG Sphere at The Venetian, is currently under construction in Las Vegas and is scheduled to open in the second half of 2023.
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MSG Sphere London plans to be debated next week
AEG has repeated its opposition to Madison Square Garden’s proposed new MSG Sphere London venue after it was confirmed a planning application for the development will be heard next week.
The 21,500-cap venue, which would be MSG’s first property outside of the United States, is set to be located in Stratford, east London, across the river from AEG’s The O2 (20,000-cap.) in North Greenwich.
The London Legacy Development Corporation (LLDC) planning committee will meet to discuss the application on Tuesday 22 March, three years after plans were first submitted.
A spokesperson for AEG, which has previously voiced concerns over the MSG venue’s proximity to The O2, says: “We are calling on the LLDC to refuse MSG’s application for a new venue in Stratford and encourage the Mayor of London to formally oppose this project in order to protect Newham’s residents and existing businesses from this inappropriate development.
“The proposals would exacerbate congestion at the already over-crowded Stratford Station, and no additional train services are proposed to mitigate the impact on the Jubilee Line. It has been suggested that various further modelling and assessment be undertaken post-planning meaning that the full impact of the proposals is simply not known.”
“AEG have always maintained we do not oppose competition in the live entertainment sector”
AEG insists it is not against competition, but argues the area is already well served by existing venues.
“AEG have always maintained we do not oppose competition in the live entertainment sector, or another large music venue in London, but it should not be built so close to The London Stadium, Copper Box, Westfield and The O2,” adds the spokesperson. “It is imperative that it does not add to congestion or overcrowding in this area of the city, or on the public transport network, especially the Jubilee line which is critical for the movement of guests to and from The O2.
“We believe that MSG’s scheme is fundamentally the wrong proposal, in the wrong location, and is technically seriously flawed.”
A 2019 investigation by The Times found that AEG had created a residents’ group to oppose the scheme.
“Our plans are not about competition,” MSG’s EVP of development and construction Jayne McGivern said at the time. “Examples from New York and Los Angeles suggest that a new arena would grow the market and complement London’s existing venues by expanding booking options and allowing more artists to perform in the city.
“We had hoped the owners of existing arenas in London would welcome innovation, diversity, and choice, and it’s extremely disappointing to us that they have not.”
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MSG sets out further Sphere London commitments
Madison Square Garden Entertainment has set out further details of its London arena project, MSG Sphere.
The futuristic 21,500-capacity arena – which will, if approved, occupy a nearly five-acre site in Stratford, east London – has overcome a major hurdle after Network Rail, which manages much of the UK’s railway network, withdrew its objection to Sphere following consultation with MSG and local partners.
“We are pleased to provide additional details in support of our planning application for MSG Sphere, underlining our commitment to create jobs and boost the local economy,” comments Jayne McGivern, MSG Entertainment’s executive vice-president of development and construction. “The materials reflect the constructive dialogue we have had with a range of local stakeholders, and further demonstrate the careful consideration that has gone into every aspect of our plans.”
The updated documents – issued in response to a request from the London Legacy Development Corporation (LLDC), which is considering MSG’s planning application – can be read on the LLDC planning portal here.
In addition to its work with Network Rail, the MSG submission includes a number of voluntary planning conditions the company says addresses feedback from LLDC and local residents.
“The materials reflect the constructive dialogue we have had with a range of local stakeholders”
They include parameters around the hours of operation, event timings and the high-tech venue’s eye-catching external display, including restrictions on overnight lighting, as well as measures to coordinate arrival and departure times for event attendees.
Another contains a proposal to provide 111 disabled parking spaces at Stratford International station with free mobility assistance to the arena.
MSG originally hoped Sphere London could open in 2022 – a year after its sister venue in Las Vegas – but with the planning process continuing well into 2020, that is no longer a “realistic” goal, the company said last November. (The opening of MSG Sphere Las Vegas has since been pushed back to 2023 after construction was halted by coronavirus.)
The latest submission to the LLDC builds on previous commitments made by MSG Entertainment, including a guarantee that all on-site jobs will be paid at least the London living wage, investment in a new entrance and ticket hall for Stratford station, and a commitment to employing local people for least 35% of construction and operational jobs.
“We are confident our proposal thoughtfully sets out how we will deliver a world-class venue, and remain excited about the opportunity to bring MSG Sphere to London,” continues McGivern.
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Sphere to be first living wage-accredited major venue
The Madison Square Garden Company (MSG) has been accredited as a ‘living wage employer’ by the Living Wage Foundation (LWF), IQ can reveal. This includes all on-site jobs at MSG’s planned Sphere arena in Stratford, east London, with the Sphere becoming the first major entertainment venue in the UK to receive the accreditation.
The news comes after MSG announced in December 2019 that all jobs directly on site at MSG Sphere – both during construction as well as once the venue is open – will be paid at least the London living wage (LLW) of £10.75, significantly higher than UK minimum wage of £6.15 for 18–24-year-olds and £7.70 for 21–24-year-olds.
Jayne McGivern, MSG’s EVP of development and construction, says: “We are absolutely committed to developing a groundbreaking venue that will not only redefine the future of entertainment, but also deliver tremendous benefits for local residents – including employment opportunities and training initiatives across a wide range of skill sets.
“That’s why we’re proud to have received this accreditation from the Living Wage Foundation and for MSG Sphere to become the first major entertainment venue in the UK to pay the London living wage as a minimum to everyone employed on site.”
The London Sphere – the US venues giant’s first large-scale international property – will be a showcase for a range of technological innovations, including the largest and highest resolution LED screen in the world, an adaptive acoustics system that delivers clear audio to every guest, and a haptic system so the audience can “feel” the experience.
“We are absolutely committed to developing a groundbreaking venue that will … deliver tremendous benefits for local residents”
MSG says the Sphere will bring thousands of jobs to the local area, including 4,300 jobs annually in the construction phase and 3,200 jobs once open. The New York-based company has also made a commitment to ensure at least 35% of on-site construction jobs and 35% of on-site operational jobs – from senior managers to venue operations staff – go to local people.
MSG recently submitted updated documents relating to its proposals for MSG Sphere to the London Legacy Development Corporation (LLDC), which manages the former Olympic site in Stratford on which Sphere will be built. The company – which is currently going through the process of spinning off its entertainment companies from its sports business – recently said Sphere London would likely no longer open in 2022, as planned.
Katherine Chapman, director of the Living Wage Foundation, comments: “We’re delighted that The Madison Square Garden Company has joined the movement of over 6,000 responsible employers across the UK who voluntarily commit to go further than the government minimum to make sure all their staff earn enough to live on.
“Accredited businesses recognise that paying the real living wage is the mark of a responsible employer and they believe that a hard day’s work deserves a fair day’s pay.”
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MSG plans full ents spin-off amid UK Sphere delays
Madison Square Garden Company (MSG) expects 2020 to be a “defining year”, as the company prepares to spin-off its entertainment businesses from its sports company and announces changes to Sphere plans.
The announcements were made in an earnings call for the first fiscal quarter of 2020, in which reported an adjusted operating loss of US$41.1 million, compared to $9.9m in Q1 2019. The company puts part of the increased losses down to “additional expenses in MSG Sphere related content and technology”.
The Sphere venues formed a major part of the conversation, with MSG president Andrew Lustgarten confirming that a 2022 opening for the 21,500-capacity London Sphere is “no longer realistic”, as the planning application process looks to continue into 2020.
“As we work through the planning application and design process, our timeline will continue to evolve,” said Lustgarten. “Therefore, we do not have a target opening date at this time.”
MSG vice chairman Gregg Seibert cited the change to the London Sphere opening plans as a reason for the company’s decision to pursue a full spin-off of its entertainment business from its sports business, resulting in no retention of equity interest in the sports company.
“We do not have a target opening date [for the London Sphere] at this time”
“Timeline for the opening of our London venue is evolving and we believe that the entertainment company will have sufficient financial flexibility to pursue its venue expansion plans without the need for the retained interest,” explained Seibert.
MSG had previously explored a spin-off of its sports and entertainment businesses into two distinct public companies, with the entertainment company retaining a one-third stake in MSG sports.
The spin-off remains subject to final approvals by the MSG board and others.
All remains on track for the original MSG Sphere to open in Las Vegas in 2021. MSG believes the venue will be “highly successful”, due to the growing demand for immersive shared experiences, Las Vegas’ positioning as “one of the world’s top entertainment destinations” and a partnership with convention-based resort specialist Las Vegas Sands.
“We expect MSG Sphere to change how we think about the entertainment experience, which is why we anticipate the Las Vegas Sphere becoming the most highly utilised venue in our portfolio.”
The first quarter of 2020 also saw MSG report a quarterly revenue of $214.8m, a 2% decrease year-on-year. The decline was attributed to the absence of a “special event” to replace the MTV Video Music Awards, which took place in Q1 2019.
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MSG Sphere further expands content team
The Madison Square Garden Company (MSG) has appointed award-winning creator Keri Elmsly to the newly created role of senior vice-president, immersive development and production, in the latest addition to its content team.
Elmsly will be tasked with the development of multi-sensory and immersive elements for the MSG Sphere entertainment venues planned for Las Vegas and London. With programmable LED exteriors, the Sphere venues aim to create immersive experiences both externally and internally.
The first MSG Sphere, in Las Vegas, is expected to be completed in 2021, with its London sister venue following a year later. MSG submitted its plans for the London sphere in March, revealing it will sit on a 4.7-acre former coach park located on the site of the 2012 Olympic games, and have a seated/standing capacity up to 21,500.
Elmsly joins Disney alumni Jennifer Vogt, president of creative content and productions, and Kristina Reed, senior vice-president of creative development and strategy on the MSG Sphere content team.
“MSG Sphere represents a truly unique convergence of art and technology that will create a powerful platform for immersive storytelling”
Prior to MSG, Elmsly served as chief creative officer at Second Story, a network of experience design studios. Previously, she produced the world’s first live drone orchestra – a narrative performance with Velvet Underground founder John Cale and Liam Young – as part of London’s Barbican Centre. As an executive producer at United Visual Artists, Elmsly led projects including the kinetic installation ‘Chorus’ and the stage design for Jay-Z’s Blueprint 3 tour.
“Throughout her career, Keri’s work has lived at the intersection of technology, art and immersive experiences pushing the boundaries of technology in the name of creative storytelling,” comments Vogt.
“She perfectly complements our multi-faceted team whose collective expertise spans all areas of entertainment – from live action film to animation, Broadway and more – we are creating a team of talented revolutionaries for MSG Sphere.”
“MSG Sphere represents a truly unique convergence of art and technology that will create a powerful platform for immersive storytelling,” says Elmsly. “I’m thrilled to take on this once-in-a-lifetime opportunity to transform how we interact with audiences – creating new types of experiences that encourage them to step outside of their everyday reality.”
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MSG reports weaker-than-expected Q4
The Madison Square Garden Company (MSG) today (20 August) reported financial results for the fourth quarter and fiscal year 2019, showing a 5% increase in revenue year-on-year alongside widening losses.
For the final quarter of 2019, MSG generated revenues of US$263.6 million, a 17% decrease from last year’s Q4. Operating losses for the quarter were up 81% from last year at $79.9m, as compared to $44.2m in 2018.
Overall, quarterly losses equated to $3.08 per share, exceeding analysts’ earnings per share (EPS) estimations of a $2.61 loss on each. MSG’s share price decreased by $22 (7%) to $270 following the report.
The company’s market capitalisation, which grew by almost 40% between mid-2017 and mid-2019, stands at $6.42 billion at time of press, as opposed to $6.65bn at the half-year point.
MSG’s entertainment division saw revenues dip by 6% to $174m in Q4, which the company puts down to “lower event-related” earnings at the company’s venues, which include New York’s Madison Square Garden (20,789-cap.) and the Forum (17,505-cap.) in Los Angeles, as well as a decrease in revenue from Boston Calling festival.
“Ongoing demand for our sports and entertainment assets helped drive a number of operational highlights in fiscal 2019″
The company was also affected by the switch to a new accounting standard for revenue recognition, ASC Topic 606, which changes the time at which certain revenues and sports team-related expenses are recognised within the fiscal year.
MSG’s year-long operating losses stand at $13.9 million, in comparison to operating income of $23.1m in 2018. However, revenues are up 5% from 2018 at US$1.6 billion, which the company contributes to growth in both its entertainment and sporting segments.
“Ongoing demand for our sports and entertainment assets helped drive a number of operational highlights in fiscal 2019, including continued growth in bookings, productions, suites, marketing partnerships and media rights,” says MSG executive chairman and chief executive James Dolan.
“Looking ahead, we remain confident in the strength of our core businesses and expect fiscal 2020 to be an important year as we work to complete the proposed sports spin-off and begin to usher in the company’s next chapter, with MSG Sphere in Las Vegas starting to take shape.”
“Significant progress” has been made on the construction of the 18,000-seat arena in Las Vegas, which MSG hopes will open in 2021. The futuristic Sphere concept will also form the basis for MSG’s first non-US venue, which will be located in Stratford, London.
Photo: Ajay Suresh/Flickr (CC BY 2.0) (cropped)
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Second Disney alum joins MSG Sphere content team
The Madison Square Garden Company (MSG) has hired Oscar-winning film producer Kristina Reed (Big Hero 6, Frozen, Madagascar) as senior vice-president, creative development and strategy.
In the newly-created position, Reed, known for her work with DreamWorks and Walt Disney Animation, will develop creative content for the MSG Sphere entertainment venues under development in Las Vegas and London.
Utilising the Spheres’ cutting-edge immersive technology, which includes programmable, wall-to-floor HD screens and steerable spatial sound, Reed will be “responsible for developing and implementing a slate of content for [the] MSG Sphere venues, from conception to execution”, according to New York-based MSG.
The first MSG Sphere, in Las Vegas, is expected to be completed in 2021, with its London sister venue following a year later. MSG submitted its plans for the London sphere in March, revealing it will sit on a 4.7-acre former coach park located on the site of the 2012 Olympic games, and have a seated/standing capacity up to 21,500.
Reed is the first hire for Jennifer Vogt, MSG’s newly appointed president, creative content and productions, who worked with Reed at Disney, including on Galaxy’s Edge, the Star Wars-themed area at Disneyland in California.
“Our vision for MSG Sphere is to completely revolutionise the entertainment experience and rethink the possibilities for immersive storytelling on a very large scale,” comments Vogt.
“Our vision for MSG Sphere is to completely revolutionise the entertainment experience”
“To do this, we are building a team that includes the industry’s very best talent – who not only have the creative instincts to recognise compelling content, but also the breadth and depth of experience to develop, produce and deliver thought-provoking immersive projects.
“Kristina is that type of leader, and I am thrilled she is joining our team to help make our vision for creating game-changing content for MSG Sphere a reality.”
Kristina Reed joins MSG from Disney Television Animation, where she was vice-president of production, overseeing Disney Channel TV content globally. Previously, she spent seven years at Disney Animation Studios, where she headed up production for Tangled and the Princess and the Frog and development for Frozen, Zootopia/Zootropolis and Moana, and co-produced the Academy Award-winning Big Hero 6.
Prior to joining Disney, she worked at DreamWorks Animation, where she was a production executive on Shrek 2, Shark Tale and Madagascar and associate producer on Kung Fu Panda.
“The opportunity to create ground-breaking visuals and tell stories on such a powerful platform is irresistible,” she says of her new role. “I’m excited to join this team of passionate creative colleagues, build on the rich legacy of the company and bring the visionary potential of MSG Sphere to life.”
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