The board of Madison Sq. Backyard Leisure mentioned at the moment that it’s contemplating a by-product of its reside leisure enterprise that would come with MSG Networks and NYC’s Madison Sq. Backyard, Radio Metropolis Music Corridor and Beacon Theatre, amongst different property.
A deal would separate the reside leisure and MSG Networks companies from MSG Sphere and Tao Group Hospitality to create two public corporations, MSG mentioned. No timetable for a possible transaction was set.
Shares in Madison Sq. Backyard Leisure jumped 6% in after-hours buying and selling on the information.
The Dolan household, which controls MSG, beforehand oversaw a cut up of its leisure and sports activities property in 2020, and MSG Sports activities and MSG Leisure have traded individually since. Cable TV was the household’s longtime focus till it offered Cablevision for $17.7 billion to French conglomerate Altice in 2016.
“This potential transaction would create two corporations, every with a definite worth proposition for traders,” Govt Chairman and CEO James L. Dolan mentioned in an announcement on the corporate’s web site. “The reside leisure and media firm would come with Madison Sq. Backyard, the Christmas Spectacular manufacturing and MSG Networks and would generate substantial free money circulation. The second firm, comprised of MSG Sphere and Tao Group Hospitality, can be centered on distinctive shared experiences, innovation and world alternatives for development.”
The Dolan clan additionally controls Madison Sq. Backyard’s most important tenants — the NBA’s Knicks and NHL’s Rangers. At present’s announcement didn’t point out both crew. Its live-venue holdings additionally embrace Hulu Theater at Madison Sq. Backyard and the Windy Metropolis’s Chicago Theatre. The corporate is constructing a brand new venue in Las Vegas, MSG Sphere at The Venetian, and has introduced plans to construct a second MSG Sphere in London.
Listed below are the small print, per MSG Leisure:
The reside leisure and media firm is anticipated to incorporate:
- A various assortment of venues: Madison Sq. Backyard, The Hulu Theater at Madison Sq. Backyard, Radio Metropolis Music Corridor, the Beacon Theatre and The Chicago Theatre;
- The Firm’s leisure and sports activities bookings enterprise, which showcases a broad array of compelling concert events, household exhibits and particular occasions, in addition to a various mixture of sporting occasions, for hundreds of thousands of friends yearly;
- The Radio Metropolis Rockettes and the Christmas Spectacular manufacturing, which has been a vacation custom for 88 years;
- Useful long-term Enviornment License Agreements with the New York Knicks and New York Rangers, each of which play their house video games completely at Madison Sq. Backyard; and
- MSG Networks, which owns two regional sports activities and leisure networks, MSG Community and MSG+, in addition to a companion streaming app, MSG GO, and options unique reside native video games of 5 NBA and NHL sports activities franchises.After the proposed spin-off of the reside leisure and media firm, MSG Leisure is anticipated to incorporate:
- MSG Sphere – state-of-the-art venues that can mix cutting-edge know-how with multi-sensory storytelling to ship immersive experiences on an unparalleled scale. The primary MSG Sphere is at the moment underneath development in Las Vegas and anticipated to open within the second half of calendar 2023;
- Majority curiosity in TAO Group Hospitality, a world leisure eating and nightlife supplier, with over 70 branded places inside 60 venues in additional than 20 markets throughout 5 continents;
- An roughly one-third financial curiosity within the reside leisure and media firm; and
- Nearly all of the Firm’s money available.
Dade Hayes contributed to this report.