Madison Square Garden Entertainment is considering a spinoff of its live entertainment business, including the iconic home of the New York Knicks and Rangers.
The company announced Thursday that its board of directors approved exploring the move, which would create two separate public companies.
One of the new companies would include:
- Madison Square Garden
- Regional sports networks MSG, MSG+, and streaming app MSG GO. The networks broadcast the Knicks, Rangers, New York Islanders, New Jersey Devils, Buffalo Sabres, and New York Red Bulls.
- Long-term arena license deals with the Knicks and Rangers
- The Hulu Theater, Radio City Music Hall, the Beacon Theater, and the Chicago Theater
The other entity would consist of MSG Sphere, which is building its first entertainment venue at The Venetian in Las Vegas, and a majority of restaurant and nightclub company Tao Group Hospitality.
MSG Entertainment saw its revenue more than double in the fiscal year ending June 30 to $1.7 billion, compared to $814.2 million the previous 12 months.
Madison Square Garden Sports Corporation, owned by MSG Entertainment executive chair and CEO James Dolan, told a similar story, with $821.4 million in revenue over that period, compared to $415.7 million in the previous fiscal year.
A return to pre-pandemic attendance levels was the primary driver of the turnaround.