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.