Madison Square Garden’s monumental tax break needs to be eradicated as a result of James Dolan is unlikely to maneuver his groups from the New York City money cow, in response to a brand new report from the Independent Budget Office.
The tax break, which started previous to Dolan’s reign as MSG warden, has price New York City roughly $1 billion, in response to the federal government company, which it known as a conservative estimate. Dolan is now saving about $43 million per 12 months on property taxes.
The purpose for the tax break — which was established in 1982 after threats from the Knicks and Rangers that they’d go away New York City — is outdated, the IBO decided.
“The current location of MSG in Midtown Manhattan and directly above Penn Station, creates optimal conditions for revenue generation that would be impossible to replicate were MSG to move to New Jersey or another major metropolitan area,” learn the 30-page report titled, ‘An Examination of the Madison Square Garden Property Tax Exemption.’ “Furthermore because of league restrictions, it would likely prove challenging to co-locate the Rangers and Knicks outside of the New York area to meet both the National Hockey League (NHL) and National Basketball Association (NBA) league requirements, which are designed to prevent sports franchises within leagues from competing in the same regional markets.”
In different phrases, Dolan is excused from paying taxes due to an unrealistic situation. The newest try to axe the exemption is a funds proposal from Democrats within the state senate. But Gov. Kathy Hochul, whose reelection marketing campaign benefitted from main donations and assist from the Dolan household, was noncommittal on the topic.
”What’s been proposed by a senator is definitely one thing we take a look at, loads of concepts are proposed,” Hochul advised Good Day New York. “I just want to make sure that we’re doing the right thing with respect to MSG.”
Despite their struggles on the courtroom and 50-year championship drought, the Knicks signify one of many nation’s most dear sports activities franchises due to their location. Forbes positioned them at No. 1 within the NBA at $5.8 billion.
A separate battle between the town and MSG has been brewing over the rebuild of Penn Station. Although completely different proposals have beneficial relocating the Garden to elsewhere in Manhattan, the newest from the Department of City Planning is to resume MSG’s allow for 10 years so long as Dolan cooperates with the Penn Station reconstruction.
MSG sits on high of Penn Station.
“We hope and expect that the rail agencies will deliver a great plan for Penn Station, and MSG has committed to collaborating with them,” City Planning Commissioner Dan Garodnick stated in a press release.
“But we won’t just take them at their word — we are requiring MSG to come back to the Commission once those plans are 30% complete to ensure that the arena remains appropriately compatible.”
Across the nation, Dolan’s latest venue — The Sphere in Las Vegas — was producing viral buzz with its 1.2 million flashing LED lights projecting the constructing as numerous spherical objects.
The live-entertainment venue, which was delayed by the pandemic and went about $1 billion over funds, is opening Sept. 29 with a U2 live performance.
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Source: www.bostonherald.com