Madison Square Garden thinking about spin-offStaff Writer | June 28, 2018
The Madison Square Garden Company announced that its board of directors has authorized the company’s management to explore a possible spin-off that would create a separately-traded public company comprised of its sports businesses, including the New York Knicks and New York Rangers professional sports franchises.
Entertainment The spin-off would be structured as a tax-free transaction
If the company proceeds with the spin-off, it would be structured as a tax-free transaction to all MSG shareholders.
Upon completion of the contemplated separation, record holders of MSG common stock would receive a pro-rata distribution, expected to be equivalent, in aggregate, to an approximately two-thirds economic interest in the pure-play sports company.
The remaining common stock, expected to be equivalent to an approximately one-third economic interest in the sports company, would be retained by the live entertainment company.
These shares are expected to be used to raise capital and/or exchange for the common stock of the entertainment company. James L. Dolan is expected to be the Executive Chairman and Chief Executive Officer of both companies. ■