Amtrak Proposes Buying MSG Theater for Penn Rebuild

The plan would demolish the Infosys Theater at Madison Square Garden to create a new Penn Station entrance on Eighth Avenue.

Updated on Nov. 6, 2026 in Remote Work

Wide, unlabeled street-level view of a dense Manhattan avenue with a concrete transit canopy edge in the foreground and grey office towers fading into hazy distance. — Amtrak has proposed buying and demolishing the Infosys Theater at Madison Square Garden to build a new Penn Station entrance on Eighth Avenue, with MSG's CFO saying sale proceeds could fund a replacement venue. AI Illustration. Upload story photo >

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Should taxpayer money help fund a private company's new entertainment venue?

Amtrak has proposed a Penn Station rebuild that would purchase and demolish the Infosys Theater at Madison Square Garden. MSG's chief financial executive said proceeds from a theater sale could fund a new venue.

Why it matters

The proposal ties a major transit project to a private entertainment venue in New York City, raising questions about cost and funding. Officials say the rebuild would proceed using federal grants before seeking support from New York and New Jersey.

The Infosys Theater seats roughly 5,600 people, far fewer than the 20,000-seat Las Vegas Sphere, and a 2023 private developer estimate put its purchase cost substantially below $1 billion. The final price and financing for the purchase remain unresolved.

The players

Amtrak

Amtrak is the national passenger rail corporation that operates intercity rail service across the United States, and it is leading the proposed Penn Station rebuild.

Madison Square Garden Entertainment (MSG)

MSG is the entertainment company that owns the Infosys Theater and operates the Las Vegas Sphere and a planned National Harbor venue.

Janno Lieber

Janno Lieber is the chair of the Metropolitan Transportation Authority, which had planned its own Penn Station rebuild before the federal takeover.

The details

Under the plan, Amtrak would buy the Infosys Theater and demolish it to convert the site into a new station entrance on Eighth Avenue. MSG's chief financial executive said the company would reinvest theater sale proceeds in another domestic venue, likely in the New York market first.

2023: A private developer estimated the cost of buying the theater at substantially less than $1 billion.
Last year (2025): The Trump administration took over the Penn Station project from the MTA.
End of 2027: Officials expect shovels in the ground for the rebuild.

Market Landscape

MSG is expanding its Sphere venue model with a second site at National Harbor on the Potomac River, following its Las Vegas Sphere with capacity of 20,000 people. The Penn Station proposal would shift part of that strategy back toward the New York market.

Commuters using Penn Station could see a new entrance on Eighth Avenue once construction begins, though officials expect shovels in the ground by the end of 2027. Ticket buyers for the Infosys Theater may face changes if the venue is demolished.

The takeaway

Large infrastructure proposals often depend on how private assets are valued and financed, so the purchase price of the theater will likely determine how the Penn Station plan moves forward.