Knicks Owner James Dolan Is Looking to Auction Off the Tao Group’s Nightclub and Restaurant Empire

Tori Latham
·2 min read

The Tao Group may soon have a new owner.

Billionaire James Dolan is looking to sell the hospitality titan behind restaurants and nightclubs all over the world, as reported by the New York Post. Dolan’s Madison Square Garden Entertainment—the same company that owns the namesake arena, among other properties—has hired Goldman Sachs to carry out the sale, with first-round bids being submitted now, sources told the Post. (MSGE told the outlet that it doesn’t comment on rumor or speculation, per company policy.)

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MSGE acquired a majority stake in the Tao Group, which owns venues such as Hakkasan, Cathédrale and the Fleur Room, back in 2017 for $181 million. Since then, it’s encountered some financial woes, almost defaulting on its debt in 2019. Sources told the Post that MSGE stepped in and loaned the business $49 million, allowing it to continue operating its hot spots in cities like New York, London, Singapore and Dubai.

Now the Tao Group could be worth $542 million, according to recent calculations by a Morgan Stanley analyst. The Post estimated MSGE’s stake to be worth about $274 million, after subtracting Tao’s $85 million in debt. And that number may be why Dolan is looking into the sale.

Sources said that Dolan is thinking of offloading Tao in order to fund another one of his projects: the MSG Sphere, an entertainment venue being built in Las Vegas. The budget for that project has reached an exorbitant $2.2 billion, and the sale of Tao might help make up the $600 million gap Dolan is currently facing. However, sources noted that Dolan is looking for way more than Morgan Stanley’s valuation—although he may take a lower price if it helps him on his way to opening the Sphere. (They also claim he’s notorious for exploring and then canceling auctions, so it’s possible the sale doesn’t come to fruition anytime soon.)

According to those the Post spoke with, one potential buyer interested in the Tao Group is Tilman Fertitta, the owner of the Houston Rockets and Golden Nugget Casinos. Given his estimated $8 billion net worth, he certainly has the cash to become Tao’s next owner.

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