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 $250 million share repurchase program for the new live entertainment company’s Class A common stock following the completion of the spin-off.
The company expects the common stock to trade in two markets on the New York Stock Exchange: in the “regular way” market under the company’s current name, Madison Square Garden Entertainment Corp., and under the current ticker symbol, MSGE, and in the “ex-distribution” market under the new name, Sphere Entertainment Co., and under the symbol SPHR WI.
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Rolling Loud cancels New York festival for 2023
US hip-hop franchise Rolling Loud has cancelled its New York event for 2023, citing “logistical factors beyond our control”.
The Miami-hailing festival first hosted a New York City edition in 2019. After cancelling the 2020 edition due to Covid, further Rolling Loud New York events were held in 2021 and 2022.
In the past week, at least two other 2023 festivals have been cancelled including Sweden’s Summerburst and Bulgaria’s Hills of Rock.
In a statement, Rolling Loud organisers paid homage to previous editions and reassured fans the festival would return sometime in the future.
“We saw the beginning of the King Vamp era, Travis power through his full set through the pain, Parti and Uzi reuniting on stage, Nicki, 50 Cent, and A$AP Rocky putting on iconic headlining performances in their hometown, [and] Juice WRLD’s final festival performance,” reads the statement.
“We’ll be back in New York when the time is right”
“Sadly, due to logistical factors beyond our control, Rolling Loud will not return to New York in 2023. But don’t worry, this isn’t goodbye, more like see you later. We’ll be back in New York when the time is right. In the meantime, we invite all of our New York fans to meet us in Miami 21-23 July for our biggest, best festival of the year.”
Last year’s New York edition took place at Citi Field in Queens between 23-25 September with headliners Nicki Minaj, A$AP Rocky and Future.
In 2023, Rolling Loud will return to Miami, Los Angeles and Portugal, and make its debut in Germany, the Netherlands and Thailand.
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Head in the Clouds festival exported to NY
Head in the Clouds festival will debut in New York this spring, following successful editions in Los Angeles, Jakarta and Manila.
NIKI, Rich Brian, ITZY, beabadoobee, DPR Live & DPR Ian, MILLI and XG will perform at the two-day event, led by Asian-American music powerhouse 88rising.
The East Coast festival will be produced alongside frequent 88rising collaborator and Southern California promoter Goldenvoice (Coachella, Stagecoach), as well as new partner The Bowery Presents.
The East Coast festival will be produced alongside Goldenvoice and The Bowery Presents
Head in the Clouds NY will take over Forest Hills Stadium in Queens between 20–21 May during, Asian American and Pacific Islander Heritage Month.
This marks the first time the festival has branched out to a new market in North America following a successful run in Los Angeles (2018-19, 2021-22) and 2022 festivals in Jakarta and Manila.
The inaugural NY event also represents a homecoming for 88rising, which was founded in New York City back in 2015.
Masiwei, Atarashii Gakko!, P-Lo, Raveena, Warren Hue and more will also perform at the event.
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Third woman dies after NY concert crowd crush
A third person has died as a result of injuries sustained in the crowd crush that followed a concert at the Main Street Armory in Rochester, New York last weekend.
Aisha Stephens, 35, of Syracuse, had been in hospital since the incident after the show by US rapper GloRilla ended just after 11pm on 5 March. Two other women, Rhondesia Belton, 33, and 35-year-old Brandy Miller, also died, while seven people required hospital treatment for non-life threatening injuries.
Police say the crowd may have panicked and rushed for the exits after unfounded reports of gunfire, leading to a “stampede”.
“As the concert was ending, concertgoers began running towards the exits after hearing what they described as gunshots,” says a letter to the venue signed by Rochester Police Investigation chief David Smith. “Your contracted event security guards were unable to control the crowd as they were running, which in turn caused a human stampede.”
The 6,500-cap Main Street Armory has had its licence suspended in the wake of the tragedy
The 6,500-cap Main Street Armory has had its licence suspended in the wake of the tragedy after the police investigation revealed “justifiable concerns regarding your ability to operate the premises”. “You have failed to maintain good order on the premises,” it adds.
The BBC reports the decision to revoke the licence made after the venue’s owner failed to show up for a scheduled meeting with the police chief and Rochester’s city attorney.
“It is one step we can immediately take to ensure that the events of Sunday night are not repeated,” says Smith. “The bottom line is, lives were lost, and we need to take steps to make sure that no lives are lost in the future if this was indeed something that was preventable.”
Police are looking at “possibly crowd size, shots fired, pepper spray and other contributing factors” as potential causes of the tragedy.
Posting on Twitter in the aftermath of the concert, GloRilla – real name Gloria Woods – said: “I am devastated and heartbroken over the tragic deaths that happened after Sunday’s show. My fans mean the world to me, praying for their families and for a speedy recovery of everyone affected.”
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MSG ups Josephine Vaccarello to EVP, live
Madison Square Garden Entertainment (MSG) has promoted long-serving executive Josephine Vaccarello to executive vice-president, live.
Vaccarello, who began her MSG in 1998 as an administrative assistant, previously served as SVP, MSG live and business operations.
In her new role, she will lead the company’s live entertainment bookings business across all of its venues, including New York’s Madison Square Garden, The Theater at Madison Square Garden, Radio City Music Hall and Beacon Theatre, and The Chicago Theatre. She will also be responsible for booking concert residencies at the new MSG Sphere, which is scheduled to open in Las Vegas in the second half of this year.
“Over her tenure at MSG Entertainment, Josephine has been instrumental in growing our live event business by pursuing innovative opportunities including multi-night bookings and unique residencies, and bringing unforgettable events featuring the world’s biggest artists to our venues,” says James Dolan, MSG executive chairman and CEO. “In this new leadership role, I am confident she will continue to raise the bar within the live entertainment industry by leveraging her unparalleled relationships and expertise across our portfolio and in booking our newest venue – the state-of-the-art MSG Sphere.”
“We have a lot of big ideas for the future that will make an indelible mark on live entertainment”
Vaccarello was most recently responsible for booking concerts, comedy, all family entertainment and theatrical properties, and special events, in addition to overseeing the live division’s business strategy. She has been instrumental in bringing residencies and shows to MSG venues including Billy Joel’s ongoing run; 15 nights of Harry Styles and Phish’s annual New Year’s Eve run.
As EVP, live, she will focus on optimising the use of MSG venues and developing strategies that maximise growth by introducing new signature events, conceptualising artist residencies, and delivering unique experiences for artists and fans.
“Throughout my 25 years at this company, I’ve had unique opportunities to grow and evolve my career within the organisation, and I’m honoured to take on this elevated leadership role, particularly as MSG Entertainment expands its live entertainment business,” says Vaccarello. “We have a lot of big ideas for the future that will make an indelible mark on live entertainment and I’m looking forward to continuing to create iconic moments with artists for our fans in New York, Chicago and soon, Las Vegas.”
Earlier this week, MSG announced that it expects to complete its proposed spin-off its live entertainment and MSG Networks divisions by the end of March.
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MSG spin-off expected to be completed in March
Madison Square Garden (MSG) Entertainment says it expects to complete its proposed spin-off its live entertainment and MSG Networks divisions by the end of March.
Structured as a tax-free spin-off to all MSGE shareholders, the move would separate those businesses from the firm’s MSG Sphere and Tao Group Hospitality businesses, creating a separately-traded public company.
MSG filed plans for the spin-off with the US Securities and Exchange Commission in November last year.
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 previously completed the spin-off of its entertainment businesses from its sports company in 2020.
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.
In the first step of the transaction, which remains subject to various conditions, record holders of MSGE Class A and Class B common stock would receive a pro-rata distribution expected to be equivalent, in aggregate, to an approximately 67% economic interest in the live entertainment company, which would take on the name Madison Square Garden Entertainment Corp. The remaining 33% economic interest would be retained by the current parent firm, which would be renamed MSG Sphere Corp.
Last month, it was revealed that 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 Madison Square Garden, Radio City Music Hall, the Beacon Theatre and the Chicago Theatre, reported Rolling Stone.
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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 moves forward with spin-off proposal
Madison Square Garden (MSG) Entertainment has filed plans with the US Securities and Exchange Commission to spin-off its live entertainment and MSG Networks divisions.
The proposed move, which remains subject to various conditions, would separate those businesses from the firm’s MSG Sphere and Tao Group Hospitality businesses, creating a separately-traded public company.
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. MSG previously completed the spin-off of its entertainment businesses from its sports company in 2020.
“Looking ahead, we expect fiscal 2023 to be a defining year as we make progress toward the completion of MSG Sphere in Las Vegas and our potential spin-off”
MSG revealed the latest development as part of its financial report for fiscal Q1 2023, the three-month period ending 30 September 2022.
The company reported revenues of $401.2 million, up 36% on the prior year quarter, and an operating loss of $44.8m (an improvement of 46%), and adjusted operating income of $2.8m, a decrease of $7.5m, or 73%, compared to the prior year period.
“We are pleased with our start to the year, with first quarter results reflecting robust ongoing demand for our portfolio of assets and brands,” says executive chairman and CEO James Dolan. “Looking ahead, we expect fiscal 2023 to be a defining year as we make progress toward the completion of MSG Sphere in Las Vegas and our potential spin-off, both of which we believe will deliver long-term value for our shareholders.”
The fiscal quarter was highlighted by a busy calendar of events at MSG venues, strength in Tao Group Hospitality’s key markets, including Las Vegas and New York, and robust sales and renewal activity within marketing partnerships and suites.
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LN named booking partner for Central Park venue
Live Nation has announced it will be the exclusive booking partner for the nonprofit Capital One City Parks Foundation SummerStage festival in New York’s Central Park.
Ahead of the 2023 summer season, the promoter will be responsible for booking all ticketed benefit concerts between June and October at the 5,000-cap Rumsey Playfield site.
SummerStage annually presents close to 90 free and benefit performances in Central Park and neighbourhood parks throughout the five boroughs.
“Being a New Yorker for over 10 years now, I’ve spent plenty of nights at SummerStage shows and have witnessed first-hand the significant upgrades City Parks Foundation has implemented to the venue over the last three years,” says Stacie George, Live Nation SVP bookings, Northeast. “It’s truly an honour and a privilege to book the most prestigious play in New York City’s Central Park and we’re already looking ahead to the 2023 summer season, aiming to make it the best one yet.”
“Live Nation has a fantastic roster of artists whom we are certain will follow in the SummerStage tradition”
The venue, which launched almost 40 years ago, reopened in 2019 after a $5.5 million transformation that included a new, larger stage and a new sound system, enhanced stage and venue lighting, LED screens, new and raised seating areas, additional concession areas, and improved dressing rooms and production spaces.
In 2022, it renovated its VIP space with an expansion of the member lounge to include a covered seating area with an additional viewing deck and now plans to upgrade its electrical systems and improve ground stabilisation.
“We are thrilled to partner with Live Nation for our 2023 and 2024 SummerStage benefit concerts in Central Park,” adds Heather Lubov, executive director of City Parks Foundation. “These ticketed concerts help support our free performances in parks across New York City. Live Nation has a fantastic roster of artists whom we are certain will follow in the SummerStage tradition by including some of the most important legacy artists and today’s hottest young musicians, attracting New Yorkers of all ages, while also helping raise money to keep the majority of our festival free-of-charge for everyone.”
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