Madison Square Garden Entertainment started its first day of trading Monday as a standalone company after being spun off from Madison Square Garden Sports.
The stock, trading under the symbol MSGE, was down 5% mid-morning on a rocky day for the market.
“While the current environment presents significant challenges to our industry, we are confident in the future, and look forward to MSG Entertainment building on its reputation as a leader in live experiences,” said CEO James Dolan.
The spin-off distribution was completed at 11:59 p.m. on April 17 to stockholders of record of MSG as of the close of business April 13. Each MSG common stockholder received one share of MSG Entertainment Class A or Class B common stock for every share of MSG Class A or Class B common stock, respectively, held as of the record date.
As previously announced, Andrew Lustgarten will be president of MSG Entertainment. And Dolan Monday named Mark FitzPatrick executive VP, CFO and head of investor relations. FitzPatrick most recently served as CFO of WeWork and was previously at Time Warner Cable.
Lustgarten, an MSG executive, previously spent seven years at the National Basketball Association, where he served as Senior Vice President, Global Strategy, and before that, Special Assistant to the Commissioner.
The spin-off has been structured to qualify as a tax-free distribution to MSG stockholders and MSG for U.S. federal income tax purposes.
Victoria Mink will continue in her role as executive VP and CFO at MSG Sports.
The moves mark the finale of the Madison Square Garden Company’s split into entertainment and sports. Entertainment assets include New York’s Madison Square Garden, Hulu Theater at Madison Square Garden, Radio City Music Hall and the Beacon Theatre, the Forum in Inglewood, California, and The Chicago Theatre. It is building a venue in Las Vegas, the MSG Sphere at The Venetian, and has announced plans to build a second MSG Sphere in London, pending necessary approvals. It owns the Christmas Spectacular Starring the Radio City Rockettes and, through Boston Calling Events, produces the Boston Calling Music Festival.
MSG Entertainment also houses Tao Group Hospitality with entertainment, dining and nightlife brands including Tao, Marquee, Lavo, Avenue, Beauty & Essex and Cathédrale.