Sphere Entertainment Explained

Sphere Entertainment Co.
Type:Public
Traded As: (Class A)
Industry:entertainment
real estate
Founder:James L. Dolan
Location:New York City, New York, U.S.
Key People:James L. Dolan

Jennifer Koester
Former Names:Madison Square Garden Entertainment
Owner:Dolan family

Sphere Entertainment Co. is an American entertainment holding company based in New York City, and controlled by the family of Charles Dolan. It owns the Sphere event venue in Paradise, Nevada, in the Las Vegas Valley and New York-based regional sports network chain MSG Networks.

The company was originally formed in 2020 as Madison Square Garden Entertainment, a spin-off of the non-sports assets of the Madison Square Garden Company. In 2023, Madison Square Garden Entertainment spun off its live events business as a new company under the same name, and the original MSG Entertainment was renamed Sphere Entertainment.

History

Madison Square Garden Entertainment was first formed in 2020 as a spin-off of the non-sports assets of the Madison Square Garden Company (which was renamed Madison Square Garden Sports as a result).[1] [2] In 2021, it would acquire sibling company MSG Networks (which had been spun off from the Madison Square Garden Company in 2015).[3]

In March 2023, MSG Entertainment's board approved a plan to spin off its "traditional" live entertainment business, leaving its regional sports networks and forthcoming Sphere venue in Las Vegas. Executive chairman and CEO James L. Dolan stated that the spin-off would result in two companies "well positioned to generate long-term value for our shareholders."[4]

The spin-off was structured as a tax-free stock split, in which MSG Entertainment shareholders would receive one share in the events company for each share they own, and hold a 33% stake. The spin-off was completed on April 20, 2023, with the live events business being spun off under the Madison Square Garden Entertainment name, and the existing MSG Entertainment being renamed Sphere Entertainment.[5] [6]

Sphere briefly included MSGE's nearly 67% stake in hospitality company Tao Group; on April 18, 2023, Mark Scheinberg's Mohari acquired the stake for $550 million.[7] [8]

In November 2023, CFO Gautam Ranji resigned.[9] In June 2024, Sphere executive Jennifer Koester was promoted to president and chief operating officer.[10]

In October 2024, Sphere Entertainment confirmed that it would build a second Sphere in Abu Dhabi which would be similar to the one in Las Vegas. [11]

Notes and References

  1. Web site: Miller . Ben . April 20, 2020 . Madison Square Garden Entertainment spin-off is complete . July 22, 2020 . New York Business Journal.
  2. Web site: Chin . Kimberly . November 7, 2019 . Madison Square Garden to Spin Off Entertainment Unit . July 22, 2020 . The Wall Street Journal.
  3. Web site: Hayes . Dade . 2021-03-26 . Madison Square Garden Entertainment Acquires MSG Networks Sibling In All-Stock Deal . 2021-03-26 . Deadline . en-US.
  4. Web site: Vlessing . Etan . 2023-03-30 . Madison Square Garden Board Approves Spinoff Plans . 2024-07-27 . The Hollywood Reporter . en-US.
  5. News: Jones . Finn-Olaf . October 1, 2023 . Las Vegas and Its Big, Big Ambitions . October 11, 2023 . The New York Times . Earlier this year, New York-based MSG Entertainment, which owns the Sphere, split in two, renaming the venue's holding company Sphere Entertainment Company in order to insulate MSG Entertainment’s core holdings and protect existing shareholders..
  6. Web site: Bary . Andrew . 2023-04-25 . MSG Split Offers Plays on Vegas, Knicks Arena. What to Do With the Stocks. . 2024-07-27 . Barron's.
  7. Web site: Donnelly . Matt . 2023-04-18 . Tao Group, Creator of Nightlife and Dining for Glitterati, Sells to Mohari for $550 Million . 2024-07-27 . Variety . en-US.
  8. Web site: 2023-04-18 . MSG sells Tao Group Hospitality to New York investor for $550M . 2024-07-27 . Las Vegas Review-Journal . en-US.
  9. Web site: Brewer . Ray . 2023-11-08 . Las Vegas Sphere reports $98.4 million loss; CFO quits . 2024-07-27 . Las Vegas Sun . en.
  10. Web site: Weprin . Alex . 2024-06-12 . Sphere Entertainment Ups Jennifer Koester to President and COO . 2024-07-27 . The Hollywood Reporter . en-US.
  11. https://www.hollywoodreporter.com/business/business-news/new-sphere-built-in-abu-dhabi-1236032333/ Another Sphere Is Being Built, This Time In Abu Dhabi

This article is licensed under the GNU Free Documentation License. It uses material from the Wikipedia article "Sphere Entertainment".

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