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MSG Entertainment’s Profits Plummet 74% After Billy Joel’s Madison Square Garden Exit
MSG Entertainment reported that revenue from entertainment offerings dropped 17% to $118.7 million in the fourth quarter alone. Fewer concerts resulted in a $21.6 million drop in event-related revenues, alongside an $8.3 million decline in food, beverage, and merchandise sales.
Madison Square Garden Entertainment (MSG Entertainment) has taken a massive financial hit in fiscal year 2025, reporting a staggering 74% drop in net income following the end of Billy Joel’s legendary decade-long residency at the Garden.
The company’s net income fell to $37.4 million, down from $144.3 million the previous year, while total revenue dipped 2% to $947.2 million. The announcement sent MSG Entertainment’s stock tumbling more than 10% during mid-day trading on Wednesday, raising questions about the company’s long-term revenue strategy.
The Billy Joel Effect
For over a decade, Billy Joel was the backbone of Madison Square Garden’s concert calendar. From January 2014 until July 2024, the “Piano Man” performed monthly shows that became one of the longest and most successful residencies in music history. His final concert — marking his 150th performance at MSG — drew emotional reactions from fans and industry insiders alike.
With Billy Joel’s residency gone, CFO David Collins admitted that Madison Square Garden hosted fewer concerts in fiscal 2025, contributing heavily to the decline in revenue. Including New York Knicks and Rangers games, the arena was used only 65% of the time, compared to higher utilization during Billy Joel’s run.
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“There’s no doubt Billy Joel was a cultural and financial anchor for Madison Square Garden,” said David Collins, adding that the company is in “late planning stages” for a major new residency expected in 2026.
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Financial Breakdown
MSG Entertainment reported that revenue from entertainment offerings dropped 17% to $118.7 million in the fourth quarter alone. Fewer concerts resulted in a $21.6 million drop in event-related revenues, alongside an $8.3 million decline in food, beverage, and merchandise sales.
Other contributing factors included:
A $28 million income tax loss compared to a $92 million tax benefit in 2024.
An $11.2 million impairment loss on long-lived assets.
A $6 million debt extinguishment loss.
Despite these challenges, MSG Entertainment managed to grow its operating income by 9%, largely buoyed by cost savings and the continued success of seasonal attractions like the Radio City Rockettes’ Christmas Spectacular, which generated a record $172 million from 1.1 million tickets sold.
The company is already banking on a rebound in fiscal 2026. According to Collins, 80% of available dates at MSG are already booked, and early ticket sales for concerts in the first fiscal quarter are trending ahead of last year.
Fans are eagerly waiting to see who will replace Billy Joel as MSG’s next marquee performer. While no names have been confirmed, rumors suggest that the venue is seeking a high-profile, long-term residency to restore its financial momentum.
For now, MSG Entertainment faces a critical turning point. Without the steady draw of Billy Joel, the company must reinvent its entertainment lineup to keep Madison Square Garden thriving as the world’s most famous arena.
