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MSGE Files Spin Off Plans For Its Entertainment Business With The SEC

James Dolan
MSG's James Dolan (JStone / Shutterstock)
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NEW YORK (CelebrityAccess) — Madison Square Garden Entertainment Corp announced it has officially filed with the U.S. Securities and Exchange Commission to move forward with a plan to spin off its live entertainment business as well as its MSG Networks division.

MSG first revealed the proposed spin-off in August, detailing a plan to separate the entertainment segments of MSGE’s business from its MSG Sphere and Tao Group Hospitality.

“This potential transaction would create two companies, each with a distinct value proposition for investors. The live entertainment and media company would include Madison Square Garden, the Christmas Spectacular production and MSG Networks and would generate substantial free cash flow. The second company, comprised of MSG Sphere and Tao Group Hospitality, would be focused on unique shared experiences, innovation and global opportunities for growth,” the company said at the time.

Following the proposed spin-off, the live entertainment and media company would include:

  • Madison Square Garden, The Hulu Theater at Madison Square Garden, Radio City Music Hall, the Beacon Theatre and The Chicago Theatre.
  • MSGE’s entertainment and sports bookings business, including its portfolio of concerts, family shows, sports and special events.
  • The Radio City Rockettes and the Christmas Spectacular production
  • Arena License Agreements with the New York Knicks and New York Rangers at Madison Square Garden
  • MSG Networks, which includes two regional sports and entertainment networks – MSG Network and MSG+, as well as a companion streaming app, MSG GO and includes exclusive local live games for five NBA and NHL franchises.

Madison Square Garden Entertainment also revealed their financial results for the first fiscal quarter of 2023.

According to MSG, the company generated revenues of $401.2 million, up by $106.7 million, or 36% year-over year. Despite the increased revenue MSGE reported an operating loss of $44.8 million for the quarter, paring losses from the same period in 2021 by 46%.

MSGE’s adjusted operating income for Q1 2022 was $2.8 million, a decrease of $7.5 million, or 73%, both as compared to the same period last year.

“We are pleased with our start to the year, with first quarter results reflecting robust ongoing demand for our portfolio of assets and brands. Looking ahead, we expect fiscal 2023 to be a defining year as we make progress toward the completion of MSG Sphere in Las Vegas and our potential spin-off, both of which we believe will deliver long-term value for our shareholders,” said MSGE Executive Chairman and CEO James Dolan.

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