Another chance for MSG’s London Sphere?
The UK government has stepped in to prevent plans for an MSG Sphere in east London from being scrapped.
Levelling-up secretary Michael Gove has ordered a six-week pause as he considers whether to call in the application for the development on the edge of the Olympic park in Stratford.
The Mayor of London last week rejected proposals for the 21,500-capacity replica of the Las Vegas Sphere, stating concerns about the amount of light pollution that it would cause for residents.
But Gove’s department, which has the power to overrule the Mayor, has now written to the London Legacy Development Corporation to instruct it not to deny planning permission at this stage.
The letter states: “The Secretary of State hereby prohibits Your Local Planning Authority from implementing the Mayor’s direction of November 20 to refuse permission.
“The direction is issued to enable him to consider whether he should direct under section 77 of the Town and Country Planning Act that the application should be referred to him for determination.”
His letter stressed that the temporary step to prohibit a denial of planning permission did not indicate any possible future outcome to the application
His letter stressed that the temporary step to prohibit a denial of planning permission did not indicate any possible future outcome to the application.
Madison Square Garden (MSG) Entertainment first announced the project more than five years ago and it was approved in principal by the London Legacy Development Corporation (LLDC) in March last year, despite objections from various parties.
AEG Europe has been a vocal opponent of the venue, which would be located four miles from The O2 (20,000-cap) in North Greenwich, and has previously called on Gove to block the proposal.
Local residents and councillors have also protested the London spin-off, which would be covered in LED panels and stand almost 100m (300ft) high and 120m (360ft) wide.
The Las Vegas Sphere launched in September to rave reviews with U2’s U2:UV Achtung Baby Live At Sphere residency.
Yesterday (30 November), it was announced that Phish would follow in U2’s footsteps with a four-show run at the 17,500-seat/20,000-cap venue next April.
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100+ acts boycott venues using facial recognition
Over 100 artists, including Tom Morello and Zack De La Rocha, have pledged to boycott venues that use face-scanning technology.
The boycott was organised by the digital rights advocacy group Fight for the Future, and calls for the ban of face-scanning technology at all live events.
Other artist signatories include Boots Riley, Wheatus, Anti-Flag, and Downtown Boys. While 25 venues in the US such as the House of Yes in Brooklyn, the Lyric Hyperion in Los Angeles, and Black Cat in D.C, have also signed a pledge promising to keep their spaces facial recognition-free.
The campaign began after it was revealed that Madison Square Garden was using facial recognition technology to remove lawyers who were in the process of suing them from events.
“This invasive biometric surveillance isn’t safe, especially for Black and brown people who have been falsely arrested”
“This invasive biometric surveillance isn’t safe, especially for Black and brown people who have been falsely arrested or ejected from public places due to the tech’s baked-in discrimination,” reads the pledge.
“In recent years, a coalition of musicians, fans, and human rights groups successfully got more than 40 of the world’s largest music festivals, including Bonnaroo and Coachella, to say they won’t use facial recognition at events. But now this tech is starting to spread — not only as a surveillance tool but also as a form of ‘paperless’ ticketing and payment.”
In 2021, Fight for the Future organised a similar artist-backed protest after Amazon debuted palm-recognition technology at a number of US music venues.
“Biometric surveillance tools like palm scans and facial recognition now threatens to transform [music venues] into hotspots for ICE raids, false arrests, police harassment, and stolen identities,” read a letter from the advocacy group, published at the time.
“It’s simply a matter of time before we hear of cases of palm scans misidentifying people in the ways that facial recognition has – often with violent and life-altering consequences – but most concerning of all is the fact that this new technology will make the data of thousands of people vulnerable to ongoing government tracking and abuse AND malicious hackers.”
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MSG accuses SLA of ‘colluding’ with banned lawyers
Madison Square Garden is accusing the New York State Liquor Authority (SLA) of “colluding” with lawyers over an investigation that threatens to strip the World’s Most Famous Arena of its alcohol licence.
It was revealed last December that Madison Square Garden Company was using facial recognition technology to prevent “attorneys from firms pursuing active litigation against the company” from entering its venues. The ban covers venues including MSG, Radio City Music Hall, the Beacon Theatre and the Chicago Theatre.
Lawyers reported to have been removed from shows include Grant & Eisenhofer’s Barbara Hart, who was escorted out of MSG by security guards prior to a Brandi Carlile concert, and Davis, Saperstein & Solomon’s Kelly Conlon, who was asked to leave an event at Radio City Music Hall.
MSG Company faces a lawsuit from “dozens of attorneys and their firms” over the approach, but has defended its use of face-scanning tech, which it has deployed since at least 2018, “to provide a safe and secure environment”.
The SLA filed administrative charges against MSG in March over the policy, saying it violates state liquor laws. However, the New York Post reports MSG has filed a lawsuit in the Manhattan Supreme Court, seeking phone records for part-time SLA investigator Charles Stravalle.
“The SLA is misusing its enforcement powers at the behest of politically influential lawyers”
It claims that he carried out the SLA investigation “at the behest” of the banned lawyers, thus resulting in the “bogus administrative charges”.
MSG’s suit alleges the lawyers “have sought to weaponise the SLA to harass MSG and threaten the loss of MSG’s liquor licences,” adding, “the collusion between the SLA and these attorneys is without question”.
“The SLA is misusing its enforcement powers at the behest of politically influential lawyers, who sued MSG (some repeatedly) and have thus been excluded from MSG’s events while that litigation is pending,” it adds.
In a statement, MSG co-counsel Jim Walden of Walden Macht & Haran adds: “We believe the incriminating evidence revealed by the communications between the SLA and the plaintiff’s attorneys is just the tip of the iceberg in terms of what our motion and subsequent subpoenas will uncover. We look forward to exposing the SLA’s abuses and bringing the facts to light.”
An SLA spokesperson tells the Post they are unable to comment on pending litigation, but adds: “Characterising standard investigative procedures as collusion demonstrates either a fundamental misunderstanding of law enforcement or a disregard of the facts.”
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MSG Entertainment spin-off approved by board
Madison Square Garden (MSG) Entertainment’s board of directors has approved the spin-off of its live entertainment and MSG Networks divisions, which is expected to be complete on 20 April.
The move will see the current parent company rebranded Sphere Entertainment Co. and will be comprised of the Sphere, MSG Networks and Tao Group Hospitality businesses.
The newly formed live entertainment company will take on the name Madison Square Garden Entertainment Corp and will include New York City’s 20,000-cap Madison Square Garden, The Hulu Theater at Madison Square Garden, Radio City Music Hall, the Beacon Theatre and The Chicago Theatre, along with the firm’s entertainment and sports bookings business and long-term arena licence agreements with the New York Knicks and New York Rangers.
“Each [company] will be well positioned to generate long-term value for our shareholders”
“With today’s announcement, we are one step closer toward our goal of creating two distinct companies, each well positioned to generate long-term value for our shareholders,” says MSGE executive chairman and CEO James Dolan.
Shareholders of record as of 14 April will receive a distribution of one Class A or Class B share of the new company for every share of common stock held, representing 67% of the new company’s outstanding shares. Sphere Entertainment will own the remainder.
The company’s board of directors also authorised a $250 million share repurchase program for the new live entertainment company’s Class A common stock following the completion of the spin-off.
The company expects the common stock to trade in two markets on the New York Stock Exchange: in the “regular way” market under the company’s current name, Madison Square Garden Entertainment Corp., and under the current ticker symbol, MSGE, and in the “ex-distribution” market under the new name, Sphere Entertainment Co., and under the symbol SPHR WI.
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U2 residency to launch MSG Sphere Las Vegas
U2 will launch the state-of-the-art MSG Sphere at The Venetian in Las Vegas with a residency this autumn.
The band announced the project, U2:UV Achtung Baby Live At The Sphere, via a commercial during yesterday’s Super Bowl. Information regarding the Live Nation-presented show dates and on sale details is still to be announced.
Drummer Larry Mullen Jr. will miss the gigs as he takes time out to undergo and recuperate from surgery in 2023, with Bram van den Berg set to step in as a temporary replacement.
Bono, The Edge and Adam say, “It’s going to take all we’ve got to approach the Sphere without our bandmate in the drum seat, but Larry has joined us in welcoming Bram van den Berg who is a force in his own right.
“The Sphere show has been in the works for a long time. We don’t want to let people down, least of all our audience… the truth is we miss them as much as they appear to miss us… our audience was always the fifth member of the band.”
“The Sphere is more than just a venue, it’s a gallery and U2’s music is going to be all over the walls”
This special run of concerts – based around the group’s classic 1991 album Achtung Baby, marks their first live outing in four years, following The Joshua Tree 30th anniversary stadium tour, which was seen by 3.28 million fans worldwide from 2017-19, and grossed US$390.8 million.
Their 2018 Experience + Innocence arena tour also played to a combined audience of almost one million across Europe and North America.
“Bottom line, U2 hasn’t played live since December 2019 and we need to get back on stage and see the faces of our fans again,” add the trio. “And what a unique stage they’re building for us out there in the desert… We’re the right band, Achtung Baby the right album, and the Sphere the right venue to take the live experience of music to the next level… That’s what U2’s been trying to do all along with our satellite stages and video installations, most memorably on the ZOO TV Tour, which ended in Tokyo 30 years ago this fall.
“The Sphere is more than just a venue, it’s a gallery and U2’s music is going to be all over the walls.”
“MSG Sphere’s advanced technology allows a legendary band like U2 to bring its music to life in entirely new ways”
MSG Sphere will introduce the first 16K screen that wraps up, around, and behind the audience, and also boasts Sphere Immersive Sound and 4D technologies.
“The beauty of the Sphere is not only the ground-breaking technology that will make it so unique, with the world’s most advanced audio system, integrated into a structure which is designed with sound quality as a priority; it’s also the possibilities around immersive experience in real and imaginary landscapes,” adds The Edge. “In short, it’s a canvas of an unparalleled scale and image resolution and a once-in-a-generation opportunity. We all thought about it and decided we’d be mad not to accept the invitation.”
“MSG Sphere’s advanced technology allows a legendary band like U2 to bring its music to life in entirely new ways,” says Madison Square Garden Entertainment (MSG) Corp. executive chairman and CEO James L. Dolan. “The Sphere is a new medium that will redefine entertainment.”
Last month, MSG promoted long-serving executive Josephine Vaccarello to EVP, live. Vaccarello will lead the company’s live entertainment bookings across all of its venues, including MSG Sphere Las Vegas
Madison Square Garden’s controversial MSG Sphere London scheme recently overcame 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 on 24 January, subject to a five-year review.
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MSG using face-scanning tech to eject lawyers
Madison Square Garden Company is using facial recognition technology to prevent anyone who works for a firm that is suing it from entering its venues.
The ban covers venues including New York’s Madison Square Garden (MSG), Radio City Music Hall, the Beacon Theatre and the Chicago Theatre, reports Rolling Stone.
“MSG instituted a straightforward policy that precludes attorneys from firms pursuing active litigation against the company from attending events at our venues until that litigation has been resolved,” says a statement from MSG Entertainment. “While we understand this policy is disappointing to some, we cannot ignore the fact that litigation creates an inherently adversarial environment.”
“We have always made it clear to our guests and the public that we use facial recognition as one of our tools to provide a safe and secure environment”
According to the report, lawyers to have been removed from shows include Grant & Eisenhofer Barbara Hart, who was escorted out of MSG by security guards prior to a Brandi Carlile concert, and Davis, Saperstein & Solomon’s Kelly Conlon, who was asked to leave an event at Radio City Music Hall.
MSG Company faces a lawsuit from “dozens of attorneys and their firms” over the policy, but has defended its use of face-scanning tech, which it has deployed since at least 2018.
“We have always made it clear to our guests and the public that we use facial recognition as one of our tools to provide a safe and secure environment and we will continue to use to protect against the entry of individuals who we have prohibited from entering our venues,” adds the statement.
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MSG Entertainment mulls new spin-off plan
Madison Square Garden (MSG) Entertainment is exploring a potential spin-off that would create a separately-traded public company comprised of its traditional live entertainment business.
The board of director’s has authorised management to look into the proposed spin-off, which would separate those businesses from the firm’s MSG Sphere and Tao Group Hospitality businesses.
The group says the move would provide shareholders with “greater investment choice and visibility into each company’s businesses and growth prospects, while enabling both companies to pursue distinct business and capital allocation strategies”.
“This potential transaction would create two companies, each with a distinct value proposition for investors”
“This potential transaction would create two companies, each with a distinct value proposition for investors,” says executive chairman and CEO James Dolan. “The live entertainment and media company would include Madison Square Garden, the Christmas Spectacular production and MSG Networks and would generate substantial free cash flow.
“The second company, comprised of MSG Sphere and Tao Group Hospitality, would be focused on unique shared experiences, innovation and global opportunities for growth.”
Alongside New York City’s 20,000-cap Madison Square Garden, the live entertainment and media firm is expected to include The Hulu Theater at Madison Square Garden, Radio City Music Hall, the Beacon Theatre and The Chicago Theatre, along with the firm’s entertainment and sports bookings business and long-term arena licence agreements with the New York Knicks and New York Rangers.
MSG Entertainment would then comprise the MSG Sphere venues, a majority interest in TAO Group Hospitality, an approximately one-third economic interest in the live entertainment and media company; and the majority of the company’s cash on hand.
If the company proceeds with the separation, it would be structured as a tax-free spin-off to all MSGE shareholders.
“The past year demonstrated the resiliency of our business and the robust demand for our portfolio of live experiences”
Meanwhile, the company has also reported its latest financial results. For fiscal 2022, MSG Entertainment reported revenues of US$1.7 billion as compared to revenues of $814.2 million in the prior year. In addition, the firm had an operating loss of $102.7 m and adjusted operating income of $133.6m in fiscal 2022, compared to an operating loss of $188.2m and adjusted operating income of $40.2m in the prior year.
For the fiscal 2022 fourth quarter, it reported revenues of $453.5m as compared to $260.6m in revenues in the prior year quarter. The company posted an operating loss of $56.8m and adjusted operating income of $700,000 in the fiscal 2022 Q4, compared to an operating loss of $44m and adjusted operating income of $2.5m in the prior year quarter.
“The past year demonstrated the resiliency of our business and the robust demand for our portfolio of live experiences,” adds Dolan. “We continue to make significant progress on the construction of MSG Sphere in Las Vegas, which remains on track to open in the second half of calendar 2023.”
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MSG: Concert touring to return from late September
Madison Square Garden Entertainment, owner of the New York arena of the same name, beat analyst expectations in the fourth financial quarter of 2021, sending its share price to US$72.55, an increase of 16.2%, as of close of business yesterday (23 August).
The company’s Q4 results, which reflected the return of live events to its US venues, saw it increase entertainment revenues to US$31.1 million for the three months ending 30 June – up 264% on Q4 2020’s $8.6m – and narrow adjusted operating losses by 12%, from $90.2m to $79.6m. Event-related revenues specifically increased by $3.5m primarily “due to select events held in the current year quarter”, such as three New York Knicks basketball games and a sold-out full-capacity concert by Foo Fighters.
Speaking during the firm’s Q4 earnings call yesterday, MSG Entertainment president Andy Lustgarten said: “While we are clearly operating in a very fluid environment, we successfully navigated through one of the most challenging times in our company’s history and remain cautiously optimistic about the road ahead. Looking back at fiscal 2021, we saw number of positives, and I am proud of the role we played in helping to shepherd the return of live entertainment in New York as our venues hosted the city’s first large-scale events since the start of pandemic.”
He also told analysts that MSG is making “meaningful progress on our next chapter, MSG Sphere in Las Vegas” – one of two high-tech Sphere arenas planned, along with one in Stratford, London – “heading towards the venue’s opening in calendar 2023.”
Lustgarden said he expects “concert touring to begin ramping back up in late September, leading to a strong concert booking schedule on a full-year basis” for the company.
“2022 is currently pacing ahead of fiscal 2020, which was slated to be a record bookings year”
“In fact, fiscal 2022 is currently pacing ahead of fiscal 2020, which was slated to be a record bookings year for our company prior to the onset of the pandemic,” he said, adding that holds at Madison Square Garden are up 50% on 2019, the last pre-pandemic year.
While recent weeks have seen a number of cancellations as the delta variant of Covid-19 spreads, the US continues to lead the way on the reopening of the concert business.
The MSG Entertainment president also referenced recent remarks by Live Nation CEO Michael Rapino that the live music market will explode when coronavirus restrictions are lifted, particularly from 2022 onwards.
“There is real demand for artists to be on the road,” said Lustgarden. “We feel even more confident in this after listening to Live Nation’s recent public comments, where they talk about the touring business for the years to come. Live Nation has a different purview to what we do, because they are buying global tours and mapping them out at the right time, so while we speak directly to artists, they are speaking to whole tours.
“Together – between what we are seeing and hearing from artists, and what we are hearing from Live Nation – we feel really good about not only this fiscal year, but what the future could be for the next few.”
In addition to the Garden (pictured), MSG-owned and/or -operated venues include the Radio City Music Hall and Beacon Theatre, both in New York, and the forthcoming MSG Sphere Las Vegas and MSG Sphere London.
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NY launches Covid-19 pass to fast-track return to live
New York has become the first US state to launch a digital Covid-19 pass that shows citizens’ vaccination status and test results, in an effort to help venues welcome larger groups.
Madison Square Garden (cap. 20,789) in New York City and the Times Union Center (cap. 17,500) in Albany are among the major venues that have already announced they will begin to utilise the Excelsior Pass in the coming weeks.
Smaller arts, entertainment and event venues will be able to use the Excelsior Pass from 2 April.
The pass can either be printed out or stored on smartphones using the Excelsior Pass Wallet app. Each pass will have a secure QR code, which participating businesses and venues can scan using a companion app to verify proof of Covid-19 negative test results or proof of vaccination.
Governor Andrew Cuomo announced the launch of the Excelsior Pass, developed in partnership with IBM, on Friday (26 March).
“New Yorkers have proven they can follow public health guidance to beat back Covid, and the innovative Excelsior Pass is another tool in our new toolbox to fight the virus while allowing more sectors of the economy to reopen safely and keeping personal information secure,” said governor Cuomo.
“The Excelsior Pass will play an important role in allowing people to gather safely, which will be critical to NY’s recovery”
“The question of ‘public health or the economy’ has always been a false choice — the answer must be both. As more New Yorkers get vaccinated each day and as key public health metrics continue to regularly reach their lowest rates in months, the first-in-the-nation Excelsior Pass heralds the next step in our thoughtful, science-based reopening,” he said.
James Dolan, executive chairman, MSG Sports and executive chairman and CEO, MSG Entertainment, says: “We are grateful the state is focused on doing everything possible to reopen businesses across our region safely and quickly. The Excelsior Pass will play an important role in allowing people to gather safely, which will be critical to New York’s recovery. We were proud to be part of the Excelsior Pass pilot and look forward to participating in the programme.”
Madison Square Garden (MSG) was part of the pilot programme to test the Excelsior Pass.
The initial phase of the pilot took place during a Brooklyn Nets game at Barclays Center (cap. 19,000) on 27 February and was tested for a second time during a New York Rangers game at MSG on 2 March.
Following that, major stadiums and arenas in New York were permitted to reopen with a capacity of 10% from 23 February, using guidelines based on the testing programme.
Similar ‘vaccine passports’ are already being developed, or are under consideration, in a number of European Union countries, including Sweden, Denmark, Poland, the Czech Republic and Cyprus.
An EU-wide vaccine passport that could replace the piecemeal approach currently being pursued by individual member states, was put forward last week.
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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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