MSG contemplating a spin-off company around sport assets

[LeHab]

Would Separate Sports Businesses from Live Entertainment Businesses
to Create Two Distinct Public Companies
Proposed Spin-Off Would Further Highlight Unique Value of Company’s
Live Sports and Entertainment Assets and Brands

The pure-play sports company is expected to include:

• The New York Knicks professional NBA sports franchise and its development team, the Westchester Knicks;
• The New York Rangers professional NHL sports franchise and its development team, the Hartford Wolf Pack;
• The New York Liberty professional WNBA sports franchise, for which the Company is exploring a sale;
• Knicks Gaming, the official NBA 2K esports franchise of the New York Knicks, and a majority interest in Counter Logic Gaming, a leading North American esports organization; and
• A professional sports team Training Center in Greenburgh, NY.

The Madison Square Garden Company Board of Directors Unanimously Approves Plan to Explore Possible Spin-Off | The Madison Square Garden Company

Given this would be a separate publicly traded company, what do you think the impact would be on the actual product? With NYR in a rebuild mode and Knicks a bottom feeder for the past few years would shareholders pressure more for immediate results over long term success?

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[LadyStanley]

No decision made (yet) about split.

Could be spun off and sold to privately held company. Does not have to be public.

 

[LeHab]

Sure always a possibility however for now seems two publicly traded companies are being primarily considered.

 

[BKIslandersFan]

Don’t they also own Hartford AHL team?

 

[LadyStanley]

Don’t they also own Hartford AHL team?

Yes.

 

[LeHab]

More details are emerging. Spin-off now planned for Q1 2020.

Madison Square Garden Co. will give up its stake in the Knicks and Rangers in 2020

 

[Centrum Hockey]

Yes.

Don’t they also own Hartford AHL team?

The businesses ops of the Wolfpack and the arena is managed by Comcast Spectacor even though msg has its own arena management division.

 

[CHRDANHUTCH]

Yes.

THEY also ran what is now known as Pratt &Whitney Stadium @ Rentschler Field, (U-Conn football)from 2003-07, that was their reward for losing the rights to the XL Center and the Gottenschider sidebar..... again, the CT DRA and the WHOLE political offshoot, as to why then owner Karmanos left for Carolina when he did, LS, not to mention the sidebar of the Whale for 18 months.... it's the 2nd or 3rd time the Pack HAVE been associated with the Rangers, even when they were in Binghamton, and remember, the Pack have been there twice, as the franchise was sold in 1977 after 5 decades in Providence, because Hartford/Rhode Island were considering Portland had the Flyers (who now go by Spectra/ Comcast-Spectacor business-wise) locking the Reds out, now it's come full circle in a sense in the last 2 years....

keep in mind, Cross was designed to be the legendary Spectrum's twin arena, albeit a 1/3 less capacity.

 

[tarheelhockey]

Given this would be a separate publicly traded company, what do you think the impact would be on the actual product? With NYR in a rebuild mode and Knicks a bottom feeder for the past few years would shareholders pressure more for immediate results over long term success?

Seems like it would be great for the stability of the minor league franchises and their fans’ identification with the big league teams.

For the Rangers and Knicks franchises? Probably no big impact. It doesn’t sound like the management will be closely connected.

 

[LeHab]

MSGS spin-off was finally completed in April.

Madison Square Garden Sports Corp | Madison Square Garden Sports Corp. Reports Fiscal 2020 Third Quarter Results

Spin-off Transaction
On April 17, 2020 (the “Entertainment Distribution Date”), Madison Square Garden Sports Corp. (the “Company”) distributed all of the outstanding common stock of
Madison Square Garden Entertainment Corp. (formerly MSG Entertainment Spinco, Inc.) to its stockholders (the “Entertainment Distribution”). Madison Square Garden
Entertainment Corp. owns, directly or indirectly, the entertainment business previously owned and operated by the Company through its MSG Entertainment business
segment and the sports booking business previously owned and operated by the Company through its MSG Sports business segment (collectively, the “Spinco Business”).

In the Entertainment Distribution, (a) each holder of the Company’s Class A common stock, par value $0.01 per share, received one share of Madison Square Garden
Entertainment Corp. Class A common stock, par value $0.01 per share, for every share of the Company’s Class A common stock held of record as of the close of business,
New York City time, on April 13, 2020 (the “Record Date”), and (b) each holder of the Company’s Class B common stock, par value $0.01 per share, received one share of
Madison Square Garden Entertainment Corp. Class B common stock, par value $0.01 per share, for every share of the Registrant’s Class B common stock held of record as
of the close of business, New York City time, on the Record Date.
Following the Entertainment Distribution, the Company’s business consist of the Company’s professional sports franchises: the New York Knicks (the “Knicks”) of the
National Basketball Association (the “NBA”), the New York Rangers (the “Rangers”) of the National Hockey League (the “NHL”), the Hartford Wolf Pack of the American
Hockey League (the “AHL”) and the Westchester Knicks of the NBA G League (the “NBAGL”). In addition, the Company’s business includes esports teams through
Counter Logic Gaming (“CLG”) and Knicks Gaming, the Company’s franchise that competes in the NBA 2K League.

As of March 31, 2020, the Company maintained the historical operating structure and reported the financial results of its entertainment business (including its sports
bookings business) in continuing operations until the Entertainment Distribution Date. After the Entertainment Distribution, the historical financial results of the Company’s
entertainment business (including its sports bookings business) will be reflected in the Company’s consolidated financial statements as discontinued operations under U.S.
generally accepted accounting principles (“GAAP”) for all periods presented through the Entertainment Distribution Date, effective as of the filing with the U.S. Securities
and Exchange Commission (the “SEC”) of the Company’s Annual Report on Form 10-K for the year ending on June 30, 2020.

Q3 Earnings 10-Q : https://s23.q4cdn.com/716592820/files/doc_financials/2020/q3/msg_q32020_10-q.pdf