The Madison Square Garden Company have officially filed Form 10 Registration with the U.S. Securities and Exchange Commission to begin the process of splitting into two separate businesses: one dedicated to sports, the other to live entertainment. While the split will be tax-free to shareholders, both companies will be publicly traded businesses.
A company representative stated: “The proposed separation would enable investors to more clearly evaluate each company’s assets and future potential while providing both companies with increased strategic flexibility to pursue their own distinctive business plan and capital allocation policy.”
The sports side will include investments in the New York Knicks, New York Rangers, New York Liberty, along with holdings in Counter Logic Gaming and Knicks Gaming.
The entertainment business will include Madison Square Garden, Radio City Music Hall, Beacon Theatre, and the Hulu Theater at MSG along with the Forum in Inglewood, California, the Chicago Theatre, and the Wang Theatre in Boston, Massachusetts.
The split into two separate businesses is expected to be completed by mid-2019 pending league approval and a ruling from the Internal Revenue Service.
Esports Insider says: While this may seem like a pointless transition for tax purposes, the amount of additional investments the MSG company have been making aside from live events certainly warrants two separate businesses. The split will also most likely not have any direct or obvious effects with day-to-day businesses and holdings in CLG, Knick Gaming, and the potential of hosting esports events in the future.
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