The MSG BOD on Friday approved the spin-off of its sports and entertainment businesses from its media business. Upon completion of the transaction, MSG will be a standalone media company and will change its name to MSG Networks Inc., and the newly formed sports and entertainment company will be called The Madison Square Garden Company. The distribution will take place on Sept. 30, 2015 to MSG stockholders of record as of the close of business on Sept. 21, 2015 (MSG Company). MULTICHANNEL NEWS' Mike Farrell noted the company's RSNs -- MSG and MSG + -- will "be housed in the MSG Networks unit while its professional sports teams," including the Rangers, Knicks and Liberty, and entertainment venues like MSG, Radio City Music Hall, The Forum and the Chicago Theater will "remain" in the MSG Company. The spin-off has been "structured to qualify as a tax-free distribution to MSG stockholders for U.S. federal income tax purposes." Cash received in lieu of fractional shares, however, will "generally be taxable" (MULTICHANNEL.com, 9/11). The WALL STREET JOURNAL's Josh Beckerman noted the sports and entertainment company will "have authorization to repurchase" as much as $525M of common stock (WSJ.com, 9/11).
PERSONNEL IMPACT: The HOLLYWOOD REPORTER's Paul Bond reported Andrea Greenberg will "become president and CEO of MSG Networks," while Bret Richter will "join the company as CFO." Greenberg will report to MSG Chair James Dolan. She is "being promoted" from MSG Media Exec VP (HOLLYWOODREPORTER.com, 9/11).
