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Updated June 27, 2018 7:10 PM ET
Madison Square Garden
Co.
MSG -2.00%
plans to explore the possibility of separating its sports activities, including the New York Knicks and the New York Rangers, from its concert and concert hall hosting activities.
The company announced on Wednesday that it had hired advisers to help it study the potential spinoffs of sports activity, but noted that no timetable had been set for that his council make a decision.
The sports company would include the Knicks of the National Basketball Association and its development team, the Westchester Knicks; the New York Rangers of the National Hockey League and its development team, the Hartford Wolf Pack; and the New York Liberty of the WNBA. The spinoff would also include a basketball franchise of esports and a majority stake in the organization of esports Counter Logic Gaming.
The company explored a Liberty sale and moved the team to play most of its games at home in White Plains, NY instead of Madison Square Garden.
The live entertainment company would include Madison Square Garden in New York, Hulu Theater at Madison Square Garden, Radio City Music Hall and Beacon Theater; the forum in Inglewood, California; the Chicago Theater; and the Wang Theater in Boston. The company would also include badets such as MSG Bookings and manage plans to build new sites in Las Vegas and London over the next few years.
As part of the potential spin-offs, former MSG shareholders would own approximately 66% of the sports company while MSG would retain a 33% interest.
MSG's Sports segment accounted for 52% of the company's total $ 1.24 billion business for the nine-month period ended March 31st. However, its business turnover and its growth in operating income have increased.
If the fallout advances
James L. Dolan
would serve as executive chairman and chief executive officer in both companies, said the company.
MSG shares rose 9.3% to $ 291 after trading.
Corrections and amplifications
An earlier version of this article incorrectly stated that the proposed live entertainment business would call MSG Sphere. (June 27)
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