MSG Entertainment seeks to separate sports networks from Las Vegas Sphere – Sportico.com
Madison Square Garden Entertainment is likely to split into two businesses: one that includes regional sports networks, Madison Square Garden itself and other venues, and another that owns the highly anticipated Las Vegas Sphere, according to a filing. by the company on Friday. evening.
The split is not yet complete. Publicly-listed MSG Entertainment filed with the Securities and Exchange Commission that its board of directors has approved the exploration of the split, saying action would be subject to league approvals and indications that the transaction would be a tax-free benefit for shareholders. A sister company, Madison Square Garden Sports, owns the NBA’s Knicks and NHL’s Rangers. Both companies are controlled by the Dolan family through their ownership of voting shares and as such the family has the ability to complete the spin-off.
According to the filing, the existing MSG Entertainment business would own the Sphere and all future MSG Spheres to be developed; controlling interest in Tao Hospitality, which owns venues and restaurants in major cities around the world; as well as a third of the ownership of the newly created entity. The MSG Sphere in Las Vegas is being built next to the Venetian Casino and is said to be the largest sphere in the world, at a cost of $1.8 billion. Irish rock band U2 would open the venue on their debut next year.
In addition to MSG Networks and “the world’s most famous arena”, the spin-off company will own MSG’s sports and entertainment reservations arm, Radio City Music Hall and the Rockettes, as well as other venues. concert.
The transaction, if it occurs, would be yet another reorganization of MSG properties. Last year, MSG Entertainment merged with publicly traded Madison Square Garden Network in hopes of finding sports betting synergies.
A spokesperson for MSG Entertainment did not immediately respond to a request for comment.