The Madison Square Garden Co. (MSG), owners of the Hartford Wolf Pack American Hockey League franchise, says it’s board of directors has greenlit a years-long plan to separate its sports and entertainment businesses.
MSG, which also owns the New York Knicks and New York Rangers, said board approval means the deal will likely be completed in mid-April. The board first began exploring a spin-off to create a separately traded company comprised of its sports businesses in June 2018.
The completion of the spin-off is subject to certain conditions and approvals, including final league approvals.
Upon completion, the company said Knicks owner James Dolan will serve as executive chairman of Madison Square Garden Sports Corp. (MSG Sports) and as executive chairman and CEO of Madison Square Garden Entertainment Corp. (MSG Entertainment). Andrew Lustgarten is to serve as president and CEO of MSG Sports and as president of MSG Entertainment.
The spin-off is a tax-free distribution to MSG stockholders and MSG for U.S. federal income tax purposes, company officials said.
“While our industry is currently going through a difficult period, we are confident in the enduring strength and value of our businesses,” Dolan said in a statement.
MSG officials could not be reached for comment on how the impending spin-off could impact the Hartford Wolf Pack, which plays home games at downtown’s XL Center.
Founded in 1926 as the Providence Reds, the Hartford Wolf Pack franchise moved to Hartford in 1997 and now operates as the New York Rangers’ top affiliate team.
