Madison Square Garden (MSG) Sports will invest up to US$10 million into Xtract One, through a new partnership with the artificial intelligence (AI)-powered security technology company.
Confirmed:
- MSG will initially invest US$6.3 million, followed by payment of US$3.7 million which is subject to approval from company’s stakeholders and regulatory bodies
- Xtract One will hold a shareholder meeting on 11th April to discuss the second part of the investment
Context:
The use of facial recognition, along with the AI systems developed by Xtract One, reflect the growing use of more technologically advanced security processes at sporting venues to make the experience safer and less intrusive.
However, MSG, which owns the National Basketball Association’s (NBA) New York Knicks and the National Hockey League’s (NHL) New York Rangers, has come under scrutiny for using facial recognition technology to prevent legitimate ticket holders from attending events at its eponymous arena. These include lawyers involved in active litigation against the company, with up to 90 law firms affected.
Coming next:
Xtract One’s screening technology will be integrated into MSG venues including Madison Square Garden, phasing out more obtrusive methods such as walk-through metal detectors.
The new funding from MSG Sports will accelerate Xtract One’s expansion efforts, and will help the Toronto-based company further develop its technology.
