Construction Firms Claim MSG Sphere Owes Them $3.3M, Three Liens Filed

Posted on: August 26, 2020, 09:05h. 

Last updated on: August 26, 2020, 01:13h.

Work at MSG Sphere has resumed following a temporary delay in April because of a disruption in the project’s supply chain by COVID-19. But some of the construction companies claim they’re not being appropriately paid for their services rendered.

MSG Sphere Las Vegas Sands
Construction has resumed at MSG Sphere, but some contractors claim they haven’t been paid. (Image: KM Cannon/Las Vegas Review-Journal)

The Las Vegas Review-Journal reports this week that three liens have been filed against MSG Sphere. Harris Rebar Las Vegas Inc. filed a lien on June 5 for $2.7 million, Parsons Electric LLC filed a lien on July 7 for $554,481, and Commercial Scaffolding of NV Inc. filed a lien on April 10 for $119,270.

We have been working with the subcontractors to address these claims and have been requesting the appropriate level of documentation for the work performed so they can be paid accordingly,” an MSG statement to the RJ explained.

The three liens claim approximately $3.3 million in unpaid invoices. They were all filed in Clark County against two subsidiaries of MSG Sphere Entertainment and Las Vegas Sands Corp: MSG Las Vegas LLC and Sands Arena Landlord LLC.

The coronavirus has delayed the scheduled opening of the $1.66 billion MSG Sphere to 2023.

Sands Connection

Madison Square Garden Entertainment Group is the primary developer of the MSG Sphere. Las Vegas Sands contributed the 18-acre site and has pledged $75 million to construction costs. In return, the casino operator will receive 25 percent of the after-tax cash flow the facility generates once open.

MSG Sphere is located behind Sands’ Venetian and Palazzo resorts. The entertainment venue will be connected to the casino’s convention center by way of a pedestrian bridge. The Venetian and Palazzo offer more than 7,000 suites.

MSG Sphere is billed as a first-of-its-kind immersive entertainment performance venue. The 17,000-seat environment will cater to all five human senses. It will immediately overhaul the Las Vegas Strip skyline with its spherical shape and fully programmable LED exterior.

“More than 160,000 square feet of display surface (equal to three football fields) will wrap up, over and behind the stage and audience, delivering a totally immersive visual environment — at a resolution 100 times better than today’s HD televisions,” the company says.

Liens Explained

A lien, according to Investopedia, “is a claim or legal right against the assets that are typically used as collateral to satisfy a debt.” The three liens filed against MSG Sphere are each a mechanic’s lien.

A mechanic’s lien can be attached to real property if the property owner fails to pay a contractor for services rendered,” the financial guide explains.

“If the debtor never pays, the contractor could go to court and get a judgment against the non-paying party whereby property or assets can be auctioned off to pay the lien holder. Many service providers have the option to place a lien to secure payment, including construction companies,” the site further clarifies.