UPDATE: Cablevision: MSG Renovation Still On Track

Hank Ratner, vice chairman of Cablevision Systems Corp. (CVC), said Thursday that the company's planned renovation of its Madison Square Garden arena remains on track, despite the slowdown in the economy and the difficult financing environment.

Ratner, on a conference call following Cablevision's second-quarter earnings release and its announcement that it plans to spin off its MSG business, reiterated that the cost of the renovation will be "materially higher" than the $500 million price tag the company was forecasting last year.

He declined to update the forecast, saying the company isn't done with the planning process yet.

"We've made some additions to the project's scope as we've gone along and become smarter about the whole thing," Ratner said.

He said the company is currently working with its construction team on renovation plans, and it plans to fund the project solely through MSG, with any borrowing that becomes necessary done against MSG's assets.

Gregg Siebert, executive vice president of Cablevision, said he expects the spin-off of the MSG business to be "beneficial to long-term shareholder value" at Cablevision.

The company's executives declined to answer further questions about the spin-off plan on the conference call.

-By Nat Worden, Dow Jones Newswires; [phone]; [e-mail]