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Madison Sq. Backyard Leisure Corp. Confidentially Submits Preliminary Kind 10 Registration Assertion for Proposed Spin-Off of Reside Leisure and MSG Networks Companies

NEW YORK–(BUSINESS WIRE)–Madison Sq. Backyard Leisure Corp. (NYSE: MSGE) right now introduced that it has confidentially submitted an preliminary Kind 10 Registration Assertion with the US Securities and Trade Fee (“SEC”) for the proposed spin-off of its conventional stay leisure and MSG Networks companies.

As beforehand introduced, the proposed separation could be structured as a tax-free spin-off to all MSGE shareholders. In step one of the transaction, report holders of MSGE Class A and Class B widespread inventory would obtain a pro-rata distribution anticipated to be equal, in combination, to an roughly two-thirds financial curiosity within the stay leisure and media firm, which might tackle the identify Madison Sq. Backyard Leisure Corp. The remaining roughly one-third financial curiosity within the stay leisure and media firm could be retained by the present mother or father firm, which might be renamed MSG Sphere Corp. These retained shares would then be Accessible to be used in a tax-free trade provide for the widespread inventory of MSG Sphere Corp., to lift capital for common company functions, and/or to be used in a follow-on pro-rata spin-off to shareholders of MSG Sphere Corp. .

The stay leisure and media firm is anticipated to incorporate:

  • A various assortment of venues: Madison Sq. Backyard, The Hulu Theater at Madison Sq. Backyard, Radio Metropolis Music Corridor, the Beacon Theater and The Chicago Theatre;

  • The Firm’s leisure and sports activities bookings enterprise, which showcases a broad array of compelling live shows, household reveals and particular occasions, in addition to a various mixture of sporting occasions, for thousands and thousands of visitors yearly;

  • The Radio Metropolis Rockettes and the Christmas Spectacular manufacturing, which has been a vacation custom for 88 years;

  • Helpful long-term Area License Agreements with the New York Knicks and New York Rangers, each of which play their dwelling video games completely at Madison Sq. Backyard; and

  • MSG Networks, which owns two regional sports activities and leisure networks, MSG Community and MSG Sportsnet (previously MSG+), in addition to a companion streaming service, MSG GO, and options unique stay native video games of 5 NBA and NHL sports activities franchises.

After the proposed spin-off, MSG Sphere Corp. is anticipated to incorporate:

  • MSG Sphere – state-of-the-art venues that may mix cutting-edge expertise with multi-sensory storytelling to ship immersive experiences on an unparalleled scale. The primary MSG Sphere is at the moment beneath building in Las Vegas and anticipated to open within the second half of calendar 2023;

  • Majority curiosity in Tao Group Hospitality, a worldwide leisure eating and nightlife supplier, with over 70 branded areas in additional than 20 markets throughout 5 continents;

  • An roughly one-third financial curiosity within the stay leisure and media firm; and

  • The vast majority of the Firm’s money available.

Completion of the transaction stays topic to varied situations, together with effectiveness of the Kind 10 Registration Assertion, sure league approvals, receipt of a tax opinion from counsel and ultimate Board approval.

About Madison Sq. Backyard Leisure Corp.

Madison Sq. Backyard Leisure Corp. (MSG Leisure) is a frontrunner in stay leisure. The Firm presents or hosts a broad array of occasions in its various assortment of venues: New York’s Madison Sq. Backyard, Hulu Theater at Madison Sq. Backyard, Radio Metropolis Music Corridor and Beacon Theatre; and The Chicago Theatre. MSG Leisure can also be constructing a brand new state-of-the-art venue in Las Vegas, MSG Sphere at The Venetian. As well as, the Firm options the unique manufacturing – the Christmas Spectacular Starring the Radio Metropolis Rockettes – and thru Boston Calling Occasions, produces the Boston Calling Music Pageant. The Firm’s two regional sports activities and leisure networks, MSG Community and MSG Sportsnet, ship a variety of stay sports activities content material and different programming. Additionally beneath the MSG Leisure umbrella is Tao Group Hospitality, with leisure eating and nightlife manufacturers together with: Tao, Marquee, Lavo, Magnificence & Essex, Cathédrale, Hakkasan and Omnia. Extra info is obtainable at www.msgentertainment.com.

Ahead-Trying Statements

This press launch could comprise statements that represent forward-looking statements inside the which means of the Non-public Securities Litigation Reform Act of 1995. Buyers are cautioned that any such forward-looking statements aren’t ensures of future efficiency or outcomes and contain dangers and uncertainties, and that precise outcomes, developments or occasions could differ materially from these within the forward-looking statements because of numerous components, together with monetary neighborhood perceptions of the Firm and its enterprise, operations, monetary situation and the industries through which it operates, the impression of the COVID-19 pandemic and the components described within the Firm’s filings with the Securities and Trade Fee, together with the sections titled “Threat Elements” and “Administration’s Dialogue and Evaluation of Monetary Situation and Outcomes of Operations” contained therein. The Firm disclaims any obligation to replace any forward-looking statements contained herein.

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