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Madison Square Garden Entertainment, the venue-owning arm of the Dolan household sports activities empire, is in talks to promote a part of the Manhattan MSG property to a developer for about $1 billion, in response to a report in Crain’s New York Business Wednesday night time.

According to the report, the Theater at Madison Square Garden, which sits under the primary area the place the Knicks and Rangers play, in addition to an alleyway, can be bought to ASTM Group, an Italian developer. ASTM desires to renovate Penn Station, which is beneath MSG, and would demolish the 5,500-seat theater to broaden the long-criticized rail hub.

“With regard to the theater, we would always consider options that make strategic and financial sense to our company, but we have nothing more to share today,” stated CFO David Byrnes on an earnings name with analysts Thursday morning. In a press release supplied by MSG, the corporate added: “As we’ve said, we are always open to discussions. As invested members of our community, we are deeply committed to improving Penn Station and the surrounding area, and we continue to collaborate closely with a wide range of stakeholders to advance this shared goal.”

The potential sale helped propel MSGE shares up as a lot as 26% in buying and selling within the New York Stock Exchange Thursday. Changing palms at $38.70, it might be the best value for MSG Entertainment shares in 13 months, though formally MSGE’s buying and selling historical past is now linked to Sphere Entertainment, which was spun off from MSGE final month. Thursday’s costs put shares at their highest stage within the five-week buying and selling historical past of the revamped Entertainment enterprise, above the $35 worth set on the enterprise on April 17.

MSG Entertainment reported its third quarter outcomes Thursday as effectively, besting consensus expectations compiled by S&P Global Intelligence for income, which got here in at $201.2 million, and earnings per share, at 42 cents. Results within the interval, ended March 31, have been helped by stronger concessions and suite income sharing with the Knicks and Rangers, that are owned by sister firm Madison Square Garden Sports. The firm famous the 2 groups will play on the area till a minimum of 2055.

For the total 12 months, Entertainment expects income of as much as $845 million. The enterprise owns the Manhattan area, in addition to New York’s Radio City Music Hall and Beacon Theatre, and the Chicago Theatre in Illinois. It spun off the MSG regional sports activities community, a restaurant group and a Las Vegas venue as Sphere Entertainment final month.