The Madison Square Garden Company (MSG) has notified the US Securities and Exchange Commission (SEC) of its plan to spin off its entertainment business in order to focus on its core sports properties.
In filing the Form 10 registration paperwork, MSG said that it expects the process to be wrapped up by the end of the first quarter of next year.
The Dolan family, the long-term owners of the company, will continue to control both entities following the split, with the “pure-play sports company” separated from an entertainment business that will explore growth opportunities primarily through venue expansion.
The sports company will comprise the New York Knicks NBA basketball franchise and its development team, the Westchester Knicks, as well as the New York Rangers NHL ice hockey team and its development outfit, the Hartford Wolf Pack.
The Knicks Gaming esports franchise will sit alongside the major league franchises in the new sports division, which will also retain a majority interest in the Counter Logic Gaming esports organisation. The Madison Square Gardens Training Center used by the Rangers and the Knicks will also be part of the sports company’s portfolio.
The separate entertainment company will include New York’s world-famous Madison Square Garden arena, as well as other multi-purpose venues, such as the Forum in Inglewood and the under-construction MSG Sphere in Las Vegas.
The company’s bookings and productions units, as well as a series of other investments, will be part of the entertainment company.
MSG first announced plans to separate its sports and entertainment businesses in June last year.