Madison Square Garden Files To Separate Sports And Entertainment Businesses

(RTTNews) - Madison Square Garden Co. (MSG) said that it filed form 10 registration statement for separation of sports and entertainment businesses from media business.

The company noted that the planned separation would be structured as a tax-free spin-off of the sports and entertainment business to MSG shareholders on a pro rata basis. The transaction is currently expected to be completed during 2015, subject to certain conditions.

Madison Square Garden said in December 2014 that its board authorized and directed the Company's management also to consider other spin-off structures including, without limitation, a separation of the Company's media business from its sports and entertainment businesses.

In October, 2014, Madison Square Garden had noted that its board approved a plan to explore a possible spin-off to separate the company's entertainment businesses from its media and sports businesses, thus creating two distinct publicly traded companies.

Upon completion of the spin-off, MSG shareholders would own shares in both companies and have the ability to evaluate each company's current business and future prospects in making investment decisions, Madison Square said on Friday.

"While the companies would continue to benefit from commercial arrangements between them, the separation would provide each company with increased strategic flexibility to pursue its own distinctive business plan and allow each to have a capital structure and capital return policy that is appropriate for its business," the company said.

The company's sports business includes the New York Knicks and Rangers, while the entertainment business presents and hosts live events such as concerts.

The media company would continue to distribute exclusive, sports and entertainment content across multiple platforms, including regional sports and entertainment networks, MSG Network and MSG+. In connection with the separation, the companies expect to enter into long-term media rights agreements that will ensure MSG Network and MSG+ continue to serve as the exclusive local broadcast home of the Knicks and Rangers.