MSG's sports properties still would control the Knicks, Rangers and NBA 2K League Knicks GamingGETTY IMAGES
MSG Co. has "approved a plan to spin off its concert-hosting and entertainment-venue operations as a separate public company from its sports business," which includes the Knicks and Rangers, according to Kimberly Chin of the WALL STREET JOURNAL. The new entertainment company would include Madison Square Garden, Hulu Theater, Radio City Music Hall and Beacon Theater, among other MSG-owned venues. Meanwhile, the sports company will "still house" the Knicks and Rangers, as well as the NBA 2K League Knicks Gaming. This proposed transaction will "give MSG shareholders stakes in both companies." The deal is "slated for completion" in Q1 of FY '20 (WALL STREET JOURNAL, 11/8). In N.Y., Josh Kosman reports MSG Exec Chair & CEO James Dolan would stay "in control" of the Knicks under this deal. MSG previously planned to "spin off two-thirds of its economic interest in the teams to MSG's current shareholders, while retaining a one-third stake." Dolan said that MSG "no longer needs the proceeds it would have received from a potential sale of its one-third stake in the teams since the entertainment sphere it is building in London is still in the planning phase." In divesting its one-third stake, MSG also "boxed out" Silver Lake Capital from "grabbing a bigger slice of the sports teams ahead of the spinoff." Sources said that the move also means that MSG is "telling investors like Silver Lake that if they want a bigger stake in the Knicks and Rangers, they will have to buy shares on the open market" (N.Y. POST, 11/8).
