MSG, the regional sports network and live entertainment provider controlled by Cablevision (NYSE: CVC) CEO Jim Dolan, said it is investing $25 million to open a bowling alley in Las Vegas.
After reporting a $7.9 million gain in license fees collected from pay TV providers in the quarter ending June 30, MSG announced on its earnings call Wednesday that it is teaming up with the owners of a Brooklyn, N.Y.-based bowling alley on the venture.
MSG CEO Hank Ratner said the companies are looking to replicate the model used by Brooklyn Bowl. In addition to bowling, the Las Vegas facility will offer live music and a "high energy bar and restaurant," said Ratner, who is also vice chairman of Cablevision, which spun off MSG in 2010.
Patrons should expect much more than frozen pizza, as Ratner noted that the Las Vegas facility will feature food from Blue Ribbon Restaurants. The company made Zagat's 2013 list of the nine hottest outdoor dining and drinking scenes in New York.
Ratner said MSG doesn't plan to consolidate results from the bowling alley on its financial statements. And there was no word on whether MSG Chairman Dolan, whose rock band has been touring with the Eagles and has played previously at cable conventions, plans to perform in Vegas.
MSG said Tuesday that its MSG Media division saw revenue during its fiscal fourth quarter jump by 6 percent to $176.8 million. Affiliate revenue increased by $7.1 million and ad revenue increased by $5.8 million.
The bowling alley could help the company grow revenue at its MSG Entertainment division, which saw revenue decrease by 4 percent to $252.2 million for fiscal 2013. Hurricane Sandy impacted its performance, as attendance at its Radio City Christmas Spectacular dropped in the weeks following the storm.
MSG posted $336.4 million in fiscal fourth-quarter revenue, up 1 percent compared to the same period last year. Net income jumped by 27 percent to $36.4 million (47 cents per diluted share).
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