[8] Including its two major renovations in 1991 and 2013, the Garden's total construction cost was approximately US$1.1 billion, and it has been ranked as one of the ten most expensive arena venues ever built.

The new building was built by a syndicate that included J. P. Morgan, Andrew Carnegie, P. T. Barnum,[12] Darius Mills, James Stillman and W. W. Astor.

[18] In November 1960, Graham-Paige president Irving Mitchell Felt purchased from the Pennsylvania Railroad the rights to build at Penn Station.

Public outcry over the demolition of the Pennsylvania Station structure—an outstanding example of Beaux-Arts architecture—led to the creation of the New York City Landmarks Preservation Commission.

Comparing the new and the old Penn Station, Yale architectural historian Vincent Scully wrote, "One entered the city like a god; one scuttles in now like a rat.

The arena has enjoyed tax-free status since the 1980s, under the condition that all Knicks and Rangers home games must be hosted at MSG, lest it lose this exemption.

[22] The tax agreement includes an act of God clause, which allowed Knicks and Rangers home games to be played elsewhere during the 2020 NBA Bubble and 2020 Stanley Cup playoffs, respectively, because of the COVID-19 pandemic.

[24][25] In April 1986, Gulf and Western announced that they would build a new Madison Square Garden a few blocks away on the site of present-day Hudson Yards.

[26] After years of planning, Gulf and Western decided against building a new arena in favor of a renovation after estimated costs doubled during the process.

While the Rangers and Knicks were not displaced,[33][34] the Liberty played their home games through the 2013 season at Prudential Center in Newark, New Jersey, during the renovation.

This advance work included the West Balcony on the tenth floor, taking the place of sky-boxes, and new end-ice 300 level seating.

[41][42] Madison Square Garden is seen as an obstacle in the renovation and future expansion of Penn Station,[43] which expanded in 2021 with the opening of Moynihan Train Hall at the James Farley Post Office,[44] and some have proposed moving MSG to other sites in western Manhattan.

On February 15, 2013, Manhattan Community Board 5 voted 36–0 against granting a renewal to MSG's operating permit in perpetuity and proposed a 10-year limit instead in order to build a new Penn Station where the arena is currently standing.

[43] Finally, Diller Scofidio + Renfro proposed a mixed-use development on the site, with spas, theaters, a cascading park, a pool, and restaurants; Madison Square Garden would be moved two blocks west, next to the post office.

[43] In June 2013, the New York City Council Committee on Land Use voted unanimously to give the Garden a ten-year permit, at the end of which period the owners would either have to relocate or go back through the permission process.

"This is the first step in finding a new home for Madison Square Garden and building a new Penn Station that is as great as New York and suitable for the 21st century," said City Council speaker Christine Quinn.

"[48] In October 2014, the Morgan facility was selected as the ideal area for Madison Square Garden to be moved, following the 2014 MAS Summit in New York City.

[49][50] Then, in January 2016, New York Governor Andrew Cuomo announced a redevelopment plan for Penn Station that would involve the removal of The Theater at Madison Square Garden, but would otherwise leave the arena intact.

[51][52] In June 2023, nearing the end of the Garden's ten-year permit granted by the city, the Metropolitan Transportation Authority, along with Amtrak and NJ Transit, filed a report stating that MSG is no longer compatible with Penn Station, with the report saying, "MSG's existing configuration and property boundaries impose severe constraints on the station that impede the safe and efficient movement of passengers and restrict efforts to implement improvements, particularly at the street and platform levels.

[57] Many of boxing's biggest fights were held at Madison Square Garden, including the Roberto Durán–Ken Buchanan affair, the first Muhammad Ali – Joe Frazier bout and the US debut of Anthony Joshua that ended in a huge upset when he was beaten by Andy Ruiz.

Billy Joel, another city-born and fellow 1970's pop star, played his first Garden show on December 14, 1978, with that month's follow ups on the 15th, 16th and 18th.

[64] With their first MSG show taking place on December 30, 1994, Phish has regularly played annual multi night runs, typically around New Year's Eve.

[82][83] The New York City Police Academy,[84] Baruch College/CUNY, and Yeshiva University also hold their annual graduation ceremonies at Madison Square Garden.

In 2011, he surpassed Bob Knight as the coach with the most wins NCAA Division I men's basketball history when Duke defeated Michigan State.

[92][93] The event was particularly notable for remarks by comedian Tony Hinchcliffe, who spoke prior to Trump and made jokes widely considered offensive toward Puerto Ricans, which became a significant talking point going into the presidential election.

[96][97] Graeme Edge, who received his award in 1981 as a member of The Moody Blues, said he found his gold ticket to be an interesting piece of memorabilia because he could use it to attend any event at the Garden.

Winners of the Platinum Ticket Awards include: the Rolling Stones (1981),[99] Elton John (1982),[100] Yes (1984),[101] Billy Joel (1984),[102] the Grateful Dead (1987),[103] and Madonna (2004).

Elton John was reported to be the first non-sports figure inducted into the MSG Hall of Fame in 1977 for "record attendance of 140,000" in June of that year.

[106] Twenty-five athletes were inducted into the MSG Walk of Fame at its inaugural ceremony in 1992, a black-tie dinner to raise money to fight multiple sclerosis.

It was the home of the NFL draft until 2005, when it moved to the Jacob K. Javits Convention Center after MSG management opposed a new arena for the New York Jets.