The Madison Square Garden board approved a spin-off of its entertainment business from its sports business, and announced Las Vegas’s MSG Sphere construction is suspended due to coronavirus impacts.
The spin-off, expected to be completed by mid-April, will transition MSG as a pure-play sports company, Madison Square Garden Sports Corp. (MSG Sports). The newly formed entertainment company will be named Madison Square Garden Entertainment Corp. (MSG Entertainment).
The sports corporation will include New York Knicks, New York Rangers, Westchester Knicks, Hartford Wolf Pack, Counter Logic Gaming and Knicks Gaming. The entertainment corporation will include new venues in London and Las Vegas while operating several venues: New York’s Madison Square Garden, Hulu Theater at Madison Square Garden, Radio City Music Hall and Beacon Theatre; and the Chicago Theatre.
“While our industry is currently going through a difficult period, we are confident in the enduring strength and value of our businesses,” said MSG Executive Chairman and Chief Executive Officer James Dolan via press statement. “Today’s approved spin-off is the result of many months of preparation, and we believe it will set the stage for long-term success for both MSG Sports and MSG Entertainment.”
MSG also announced that construction of a new Las Vegas venue, MSG Sphere, is on hold due to the coronavirus pandemic creating significant impediments to construction, including disruptions to its supply chain. A temporary suspension of construction is set for approximately the next two weeks. The delay means the opening is not likely until 2022.
Image courtesy Madison Square Garden Co.
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