Economy
NY Urged to Curb Madison Square Garden Tax Break That’s Cost $1 Billion Since the 1980s
- Tax break was designed to keep Knicks, Rangers in New York
- Teams unlikely to leave given potential revenue hit from exit
New York’s subsidies for Madison Square Garden, run by billionaire James Dolan, have cost taxpayers nearly $1 billion since the mid 1980s and no longer make economic sense, according to a report from a city budget office.
In 1982, New York gave the property-tax exemption to Madison Square Garden, home to hockey’s Rangers and basketball’s Knicks in an effort to prevent professional sports franchises from leaving the city. But the incentive is no longer necessary because the teams probably couldn’t earn as much money if they moved elsewhere, according to the July report.