Madison Square Garden Co. said that it is paying $125M to "create a new joint venture with music mogul Irving Azoff that will manage artists, own music-publishing rights and dabble in marketing and television production," according to Hannah Karp of the WALL STREET JOURNAL. An MSG subsidiary will pay Azoff $125M "for a 50% stake in the new firm, Azoff MSG Entertainment LLC, and will also provide" $50M of revolving credit. Azoff said that the new company "would function 'almost like a venture capital fund,' and create new opportunities for his business that he might not be able to see on his own." MSG Exec Chair James Dolan said that the new venture "could lead to anything from music festivals to television shows" (WALL STREET JOURNAL, 9/5). BLOOMBERG NEWS' Andy Fixmer reports the new company in addition to managing musical artists "will license music rights, televise events and produce online publications and Web TV shows" (BLOOMBERG NEWS, 9/5). Dolan said, "Irving is going to run everything. We're going to be a good partner, but he is not subject to a board of directors. He just has me. We're setting the tiger loose" (L.A. TIMES, 9/5). BILLBOARD.com's Waddell & Flanagan reported Azoff "will act as a consultant" to MSG on its venues, while MSG "will provide Azoff MSG Entertainment consulting services" (BILLBOARD.com, 9/4). DEADLINE.com's David Lieberman reported former NFL Programming Dir Lawrence Randall "will lead the effort to buy and produce shows including live entertainment" for the new company (DEADLINE.com, 9/4).
