MSG Entertainment is exploring a spin-off of assets including Madison Square Garden and Radio City Music Hall –

MSG Entertainment is exploring spin-offs of two of its most iconic properties, New York’s Madison Square Garden and Radio City Music Hall, as well as its regional sports channels, to provide cash and new options for its MSG Sphere project, that will be found at work. It will open next year in Las Vegas.

MSG Entertainment’s board of directors considered the move, and the company outlined the plan in a statement on Thursday.

The iconic New York Arena (home to the New York Knicks and Rangers concerts, live events and games), Radio City Music Hall, Beacon Theater and Chicago Theatre, as well as the entertainment and sports reservations at these venues, will be considered in the plan. . The business will become a new live media and entertainment company.

Also part of the new company will be MSG Networks’ RSN business, arena rights deals with the Knicks and Rangers, and them and the Radio City Rockettes. spectacular christmas Show.

Meanwhile, MSG Entertainment will retain the MSG Sphere locations, the company’s majority stake in TAO Group Hospitality, as well as one-third of the new live entertainment company and substantially all of the company’s current cash.

The move will take MSG’s legacy businesses (which still generate a lot of money) and move them from one company, which the company considers its growing business (Sphere and Tao) to another.

“This potential transaction will create two companies, each with a distinct value proposition for investors,” CEO and CEO James Dolan said in a statement. “Live media and entertainment company includes Madison Square Garden spectacular christmas Production and MSG Networks and will generate significant free cash flow. The second company, formed by MSG Sphere and Tao Group Hospitality, will focus on unique shared experiences, innovation and global growth opportunities.

The Dolan family controls MSG Entertainment, as well as MSG Sports, which owns the Knicks and Rangers.

The $1.8 billion MSG Sphere has become a priority for Dolan, who plans to open other locations in the future. the hollywood reporterCarolyn Giardina was in attendance earlier this year as the project geared up for an opening in 2023.

The company also opened MSG Sphere Studios in Burbank, with the ambition to create a wide range of content to feature on the site.