The Madison Square Garden Company (MSG) has filed a registration statement with the US Securities and Exchange Commission (SEC) for the proposed spin-off of its entertainment business.
MSG announced yesterday (Tuesday) that it had filed the confidential initial Form 10 Statement. The company said the filing represents a “significant milestone” regarding the completion of the transaction, which it is hoped will come in the first quarter of 2020.
The proposed separation of the sports and entertainment businesses would be structured as a tax-free spin-off to all shareholders. Following the completion of the transaction, record holders of MSG common stock would maintain their current economic interest in the sports and entertainment businesses.
MSG announced the spin-off, which would create two distinct companies, last month. The Dolan family would maintain majority voting control of both companies through their ownership of Class B shares.
The pure-play sports company would include the New York Knicks NBA team and its development team, the Westchester Knicks; the New York Rangers NHL franchise and its development team, the Hartford Wolf Pack; Knicks Gaming, the esports franchise of the New York Knicks, a majority interest in Counter Logic Gaming; and MSG’s professional sports team training centre in Greenburgh.
The entertainment company would include New York’s Madison Square Garden, Hulu Theater at Madison Square Garden, Radio City Music Hall and Beacon Theatre; the Forum in Inglewood, California; and the Chicago Theatre. The entertainment company would also include the Company’s booking business, productions, majority interests in Tao Group Hospitality and approximately $1bn (£764m/€900m) in cash on hand.
The company is also building a new MSG Sphere in Las Vegas, which is due to open in 2021. A second MSG Sphere venue in London, near the Olympic Park in Stratford, is also in the works.
Image: Anthony Quintano