SPORTS SPIN-OFF

Madison Square Garden Co. studying potential separation of sports business,

Madison Square Garden Co. plans to explore separating its sports business, which includes the New York Knicks and New York Rangers, from its concerthosting and entertainmentvenue operations.

The company said Wednesday it has hired advisers to help it study a potential spinoff of the sports business, but noted no timetable has been set for its board to make a decision.

The sports company would include the Knicks of the National Basketball Association and its development team, the Westchester Knicks; the National Hockey League’s New York Rangers and its development team, the Hartford Wolf Pack; and the New York Liberty of the WNBA. The spinoff would also include an esports basketball franchise and a majority stake in esports organiza- tion Counter Logic Gaming. The company has been exploring a sale of the Liberty and moved the team to play most of its home games in White Plains, N.Y. instead of the Madison Square Garden.

The live-entertainment company would include New York’s Madison Square Garden, the Hulu Theater at Madison Square Garden, Radio City Music Hall and Beacon Theatre; the Forum in Inglewood, Calif.; the Chicago Theatre; and the Wang Theatre in Boston. The company would also include assets such as MSG Bookings and handle plans to build new venues in Las Vegas and London over the next few years.

As part of the potential spinoff, legacy MSG shareholders would own roughly 66 per cent of the sports company while MSG would retain a 33 per cent interest. MSG’s Sports segment accounted for 52 per cent of the company’s $1.24 billion of overall revenue in the nine months ended March 31. However, its Entertainment business is seeing stronger revenue and operating income growth from the year-earlier period.

If the spinoff moves forward James L. Dolan would serve as executive chairman and chief executive at both firms, the company said.

MSG shares rose 9.3 per cent to $291 in after-hours trading.