The Madison Square Garden Company has decided to break into two different companies, separating its sports and entertainment properties from certain media businesses.
The move was telegraphed last fallwhen MSG (NYSE: MSG) said it was considering a split. Now, the company plans to bunch the New York Knicks, New York Rangers, and New York Liberty professional sports franchises with the Madison Square Garden arena, Radio City Music Hall, and live production business in one company, and the MSG Network and MSG+ television channels in another, the New York Times reported. The entire process is expected to be complete by the end of this year, the report added.
MSG had also considered otherarrangements, the Wall Street Journal reported, including one that would have bundled the sports and media businesses together, separate from the entertainment holdings. Both reports noted that Knicks and Rangers games will continue to air on MSG Network under new long-term broadcast deals.
Earlier this month, MSG president and CEO Tad Smith announced he was leaving the company to take the same positions at Sotheby’s.