NEW YORK (CelebrityAccess) — The Madison Square Garden Company’s board of directors has voted to approve the planned spin-off of its entertainment businesses from its sports businesses, resulting in two separate companies.
According to MSGC, the planned split is expected to be completed in mid-April.
Following the spin-off, MSG will be fully focused on sports and will change its name to Madison Square Garden Sports Corp (MSG Sports).
Post spin, MSG Sports will include The New York Knicks NBA franchise and its development team, the Westchester Knicks and The New York Rangers NHL franchise and its development team, the Hartford Wolf Pack. The newly-formed sports company would also hold MSG’s e-sports operations including Knicks Gaming, the official NBA 2K esports franchise of the New York Knicks, and a controlling stake in the North American esports business Counter Logic Gaming.
The newly-formed entertainment company will be named Madison Square Garden Entertainment Corp. (MSG Entertainment) and will encompass MSG’s Sphere venues, as well as New York’s Madison Square Garden, Hulu Theater at Madison Square Garden, Radio City Music Hall and Beacon Theatre; the Forum in Inglewood, CA; and The Chicago Theatre. The company will also include MSG’s booking operations, including bookings for the Knicks, Rangers and other sports events, and MSG’s productions, including the Radio City Rockettes and the Christmas Spectacular.
The distribution will take place on April 17, 2020, to MSG stockholders of record as of the close of business on April 13, 2020. Each MSG common stockholder will receive one share of MSG Entertainment Class A or Class B common stock for every share of MSG Class A or Class B common stock, respectively, held as of the record date.
“While our industry is currently going through a difficult period, we are confident in the enduring strength and value of our businesses. Today’s approved spin-off is the result of many months of preparation, and we believe it will set the stage for long-term success for both MSG Sports and MSG Entertainment,” said MSG Chairman and CEO James L. Dolan.
MSG also provided an update on the ongoing construction of The Sphere in Las Vegas. According to MSG, construction at the venue will be temporarily suspended amidst the coronavirus pandemic in the next two weeks. As a result of the interruption, MSG has updated its guidance to indicate that the venue will not open as planned in 2021.