The Madison Square Garden Company Provides Update on Potential Spin-Off Transaction
Company Now Pursuing Full Spin-off of Entertainment Businesses from Sports Businesses
Proposed Transaction Still Expected to be Completed During the First Quarter of Calendar 2020
The Company had previously been exploring a plan to spin-off approximately two-thirds of its economic interest in its sport businesses to shareholders, with the entertainment company retaining an approximate one-third interest in the sports company.
The newly revised transaction would be structured as a tax-free pro rata spin-off to all MSG shareholders. Each shareholder would continue to own their current economic interest in both the sports and entertainment businesses. The Company continues to believe that the proposed separation of the sports and entertainment businesses would enable shareholders to more clearly evaluate each company’s assets and future prospects, while allowing each company to have a capital structure and capital allocation policy most appropriate for its business.
Executive Chairman and CEO
The pure-play sports company would reflect the strong and steady financial performance of MSG’s sports businesses driven by the
MSG has made significant progress on its first MSG Sphere in
The pure-play sports company would include:
New York Knicksprofessional NBAfranchise and its development team, the Westchester Knicks;
New York Rangersprofessional NHLfranchise and its development team, the Hartford Wolf Pack;
- Knicks Gaming, the official
NBA2K esports franchise of the New York Knicks, and a majority interest in Counter Logic Gaming, a leading North American esports organization; and
- The Company’s professional sports team Training Center in Greenburgh, NY.
In addition to its planned MSG Sphere venues, the entertainment company would include:
- World-class venues: New York’s
Madison Square Garden, Hulu Theaterat Madison Square Garden, Radio City Music Halland Beacon Theatre; the Forum in Inglewood, CA; and The Chicago Theatre;
- The Company’s bookings business, which fills MSG’s venues with a wide variety of the most exciting and unforgettable entertainment events. This business would also include the Company’s bookings of the
Knicksand Rangers, as well as other sporting events such as college basketball and professional boxing, the results of which are currently reported as part of the Company’s MSG Sports segment;
- Productions, which includes the Radio City Rockettes and the Christmas Spectacular, the nation’s number one live family holiday show;
- Majority interests in
TAO Group, a world-class hospitality group, and Boston Calling Events, producer of New England’s preeminent Boston Calling Music Festival; and
$1 billionin cash on hand.
Completion of the transaction would be subject to various conditions, including league and final MSG Board approval. J.P. Morgan Securities LLC and
This press release may contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties, and that actual results, developments and events may differ materially from those in the forward-looking statements as a result of various factors, including financial community and rating agency perceptions of the Company and its business, operations, financial condition and the industry in which it operates and the factors described in the Company’s filings with the
EVP and Chief Communications Officer
The Madison Square Garden Company
(212) 465-6442 / email@example.com
|Ari Danes, CFA
Senior Vice President, Investor Relations & Treasury
The Madison Square Garden Company
(212) 465-6072 / firstname.lastname@example.org
Source: The Madison Square Garden Company