MSGE files spin-off plans for its entertainment business with the SEC



NEW YORK (CelebrityAccess) – Madison Square Garden Entertainment Corp announced that it has filed with the SEC to advance a plan to spin off its live entertainment business and its MSG Networks division.

MSG first announced the proposed spin-off in August, detailing a plan to separate the entertainment segments of MSGE’s business from its MSG Sphere and Tao Group hospitality businesses.

“This potential transaction would create two companies, each with their own value proposition to investors. The live entertainment and media company would include Madison Square Garden, Christmas Spectacular production and MSG Networks and would generate significant free cash flow. The second company, comprised of MSG Sphere and Tao Group Hospitality, would focus on unique shared experiences, innovation and global growth opportunities,” the company said at the time.

After the proposed spin-off, the live entertainment and media company would include:

  • Madison Square Garden, the Hulu Theater at Madison Square Garden, Radio City Music Hall, the Beacon Theater and the Chicago Theater.
  • MSGE’s entertainment and sports booking business, including its portfolio of concerts, family shows, sports and special events.
  • The Radio City Rockettes and the Christmas Spectacular production
  • Arena licensing agreements with the New York Knicks and New York Rangers at Madison Square Garden
  • MSG Networks, which includes two regional sports and entertainment networks – MSG Network and MSG+ – along with a companion streaming app, MSG GO, and includes exclusive live local games for five NBA and NHL franchises.

News of the filing of the Form 10 registration statement with the SEC came as part of MSGE’s financial filing for the company’s first fiscal quarter 2022 results.

According to MSG, the company had revenue of $401.2 million, up $106.7 million, or 36%, year over year. Despite the increased revenue, MSGE reported an operating loss of $44.8 million for the quarter, reducing losses from the same period in 2021 by 46%.

MSGE’s adjusted operating income for the first quarter of 2022 was $2.8 million, a decrease of $7.5 million, or 73%, both from the same period last year.

“We are satisfied with our start to the year. First quarter results reflect robust continued demand for our portfolio of assets and brands. Looking ahead, we expect fiscal 2023 to be a pivotal year as we make progress toward the completion of MSG Sphere in Las Vegas and our potential spin-off, which we believe will provide long-term value for our shareholders.” said MSGE Executive Chairman and CEO James Dolan.

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