{"id":246994,"date":"2022-12-07T17:42:18","date_gmt":"2022-12-07T23:42:18","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=246994"},"modified":"2022-12-07T18:43:30","modified_gmt":"2022-12-08T00:43:30","slug":"msg-sphere-tao-group-could-become-new-company-in-spin-off-plans","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/msg-sphere-tao-group-could-become-new-company-in-spin-off-plans\/","title":{"rendered":"Madison Square Garden to Retain Las Vegas Sphere, Tao Group"},"content":{"rendered":"

Madison Square Garden Entertainment Corp. (NYSE:MSGE) updated investors on previously announced spin-off plans, and there are Las Vegas implications.<\/p>\n

\"MSG
A rendering of the MSG Sphere in Las Vegas. Madison Square Garden Entertainment is considering forming a new sphere-related company. (Image: TheStreet.com<\/em>)<\/figcaption><\/figure>\n

The company announced late Tuesday it\u2019s evaluating a potential transaction that would separate its live entertainment while retaining the MSG Sphere, MSG Networks, and Tao Group Hospitality businesses. In initially announcing the spin-off plans in August<\/a>, Madison Square Garden Entertainment said it was mulling separating the live entertainment and network units from the Sphere and Tao.<\/p>\n

After thorough evaluation, the Company believes the revised plan is optimal for maximizing shareholder value, while providing both companies with enhanced strategic and financial flexibility to drive long-term growth,\u201d<\/strong> according to a statement.<\/p><\/blockquote>\n

Under the terms of the newly proposed transaction, MSG Networks, MSG Sphere, and Tao Group would be rolled into a single company to be known as MSG Sphere Corp.<\/p>\n

MSG Networks Could Benefit Sphere Plans<\/h2>\n

The MSG Sphere is currently under construction in Las Vegas and is slated to open in the second half of 2023.<\/p>\n

\n

That venue\u2019s first event is slated to be a U2 concert<\/a>, and it already inked an agreement with Formula 1<\/a> in advance of the circuit\u2019s upcoming Las Vegas Grand Prix in November 2023. It\u2019s a widely anticipated project, but one that\u2019s also been beset cost overruns, with the company recently revealing high inflation boosted the Sphere cost by $175 million<\/a> to $2.175 billion.<\/p>\n<\/div>\n

Analysts believe the inclusion of MSG Networks in the spin-off could add needed cash flow to the newly formed company, potentially supporting cost demands associated with the Sphere. MSG Networks owns two regional and entertainment networks, as well as a related streaming service, \u201cand features exclusive live local games of 5 NBA and NHL sports franchises.\u201d<\/p>\n

Under the terms of the proposed spin-off, current Madison Square Garden Entertainment shareholders would receive a two-thirds economic interest in the entertainment company, which would retain that name. They’d also get a stake of approximately a third of the newly formed MSG Sphere Corp.<\/strong><\/p>\n

\u201cWe believe the revised spin-off structure best positions these two companies for long-term success. One would be a pure-play live entertainment company driven by the strong financial profile of our iconic venues,\u201d said Madison Square Entertainment Executive Chairman and CEO James Dolan in the statement.<\/p>\n

Tao Group Part of the Equation, Too<\/h2>\n

Tao Group\u2019s Sin City venues include Asian and Italian restaurants, namesake day clubs, and nightclubs Hakkasan, Marquee Nightclub, OMNIA Nightclub, and the famed Wet Republic Ultra Pool. The bulk of those venues are located in Strip integrated resorts.<\/a><\/p>\n

Tao is \u201ca global entertainment dining and nightlife provider, with over 70 branded locations in more than 20 markets across 4 continents,\u201d according to Madison Square Entertainment.<\/strong><\/p>\n

Tao\u2019s well-known Las Vegas assets are located inside Caesars Palace and Venetian, among others.<\/p>\n","protected":false},"excerpt":{"rendered":"

Madison Square Garden Entertainment Corp. (NYSE:MSGE) updated investors on previously announced spin-off plans, and there are Las Vegas implications. The company announced late Tuesday it\u2019s evaluating a potential transaction that would separate its live entertainment while retaining the MSG Sphere, MSG Networks, and Tao Group Hospitality businesses. In initially announcing the spin-off plans in August, […]<\/p>\n","protected":false},"author":46,"featured_media":246996,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,81886],"tags":[81903,23],"acf":[],"yoast_head":"\nMSG Sphere, Tao Group Could Become New Company In Spin-Off Plans<\/title>\n<meta name=\"description\" content=\"Madison Square Garden Entertainment could make MSG Sphere new company in updated spin-off plan.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/msg-sphere-tao-group-could-become-new-company-in-spin-off-plans\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"MSG Sphere, Tao Group Could Become New Company In Spin-Off Plans\" \/>\n<meta property=\"og:description\" content=\"Madison Square Garden Entertainment could make MSG Sphere new company in updated spin-off plan.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/msg-sphere-tao-group-could-become-new-company-in-spin-off-plans\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2022-12-07T23:42:18+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-08T00:43:30+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/12\/sphere.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"675\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/msg-sphere-tao-group-could-become-new-company-in-spin-off-plans\/\",\"url\":\"https:\/\/www.casino.org\/news\/msg-sphere-tao-group-could-become-new-company-in-spin-off-plans\/\",\"name\":\"MSG Sphere, Tao Group Could Become New Company In Spin-Off Plans\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/msg-sphere-tao-group-could-become-new-company-in-spin-off-plans\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/msg-sphere-tao-group-could-become-new-company-in-spin-off-plans\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/12\/sphere.jpg\",\"datePublished\":\"2022-12-07T23:42:18+00:00\",\"dateModified\":\"2022-12-08T00:43:30+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Madison Square Garden Entertainment could make MSG Sphere new company in updated spin-off plan.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/msg-sphere-tao-group-could-become-new-company-in-spin-off-plans\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/msg-sphere-tao-group-could-become-new-company-in-spin-off-plans\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/msg-sphere-tao-group-could-become-new-company-in-spin-off-plans\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/12\/sphere.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/12\/sphere.jpg\",\"width\":1200,\"height\":675,\"caption\":\"A rendering of the MSG Sphere in Las Vegas. 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