The three year cycle of summertime renovations at Madison Square Garden is starting to eat away at its bottom line. The renovation schedule has prevented some big name events booking the arena, resulting in 39 percent drop in earning for the second quarter. At a cost of nearly $850 million (up from initial projections of around $500 mil), renovations won’t be done until 2013. Work that began this past April at the end of the Knicks’ season involved refurbishing the lower seating bowl will wrap up in October. Future work will redo the upper seating bowl and add bridges above the arena’s ceiling. [Deadline via Real Deal]