Madison Square Garden Co. said it is moving forward with the planned spin-off of its sports and entertainment companies, filing a registration statement with the Securities and Exchange Commission on Friday that names current MSG president Andrew Lustgarten as CEO of its pure-play sports entity, Madison Square Garden Sports.
Madison Square Garden first proposed the spin-off in 2018. Madison Square Garden Entertainment will house Madison Square Garden arena, Radio City Music Hall, The Beacon Theater, and several other entertainment venues. Madison Square Garden Sports will be the home of its professional sports teams the New York Knicks, New York Rangers, Westchester Knicks, Hartford Wolf Pack, Counter Logic Gaming and Knicks Gaming. MSG’s executive chairman and CEO James Dolan will continue to oversee team operations for the Knicks and Rangers.
The deal is still subject to final league and MSG Board approval.
“We look forward to the pending separation of our sports and entertainment businesses, which will better enable the two companies to pursue their own unique strategies, while providing our shareholders with the ability to more clearly assess the value of each company,” Dolan said in a press release. “Over the last six years, Andy has helped guide MSG through an unprecedented period of change. I am confident that his considerable experience in developing strategic relationships and new opportunities will quickly help position the new sports company as one of the world’s leading sports organizations.”
Following the completion of the spin-off, Dolan is expected to serve as executive chairman of the sports company and as executive chairman and CEO of the entertainment company. Lustgarten will also serve as president of the entertainment company.
“MSG Sports will be made up of some of the most celebrated and iconic brands in all of sports, and I look forward to working with the entire organization to ensure we continue to deliver excellence across our operations,” Lustgarten said in the press release. “As a standalone entity, the sports company will be well-positioned to maintain its strong and steady financial performance, driven by our Knicks and Rangers franchises, and to deliver exceptional value for our shareholders.”