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42-584: The first incarnation of the company was established in April 2020 when The Madison Square Garden Company (now Madison Square Garden Sports ) spun off its non-sports assets as an independent, publicly traded company. In April 2023, Madison Square Garden Entertainment was renamed Sphere Entertainment , and spun off its theatres and event businesses as a new company that inherited the Madison Square Garden Entertainment name. Sphere Entertainment holds

84-609: A New York Rangers game, meanwhile, stated that Dolan, "lit a firestorm–for no apparent reason other than that he is a petty and vindictive person." Madison Square Garden Sports Madison Square Garden Sports Corp. (also known as MSG Sports ) is an American sports holding company based in New York City. MSG Sports manages professional sports teams. These include the National Basketball Association 's New York Knicks and their NBA G League affiliate,

126-505: A "new" MSGE via a stock split . Sphere Entertainment would retain Sphere, MSG Networks, and a 33% stake in the new MSGE's stock. Ahead of the spin-off, MSGE's stake in Tao Group was sold to Mark Scheinberg for $ 550 million; the stake was spun out with Sphere prior to the sale's closure. MSG has used facial recognition systems at its venues since 2018. In July 2022, MSG Entertainment instituted

168-712: A controlling stake in professional video gaming team Counter Logic Gaming . On April 6, 2023, it was announced that NRG Esports had purchased the rights to CLG's League of Legends spot in the League Championship Series (LCS), and that other divisions and members of CLG had been released. As a result, MSG was given a major stake in NRG. On several occasions, the Madison Square Garden Company has generated controversy in regard to how it approaches its competition. On two occasions they made attempts to block

210-722: A majority stake in nightlife group Tao Group . The company formerly owned the New York Liberty of the WNBA , until the team was sold in 2018. The company also formerly operated the Hartford Civic Center in Hartford, Connecticut , and Rentschler Field in East Hartford under contract with the state of Connecticut until the 2007 season when it was replaced by Northland/ Anschutz Entertainment Group . On July 31, 2017, MSG acquired

252-573: A matter of broadcast regulation . In the United States, a personal holding company is defined in section 542 of the Internal Revenue Code . A corporation is a personal holding company if both of the following requirements are met: A parent company is a company that owns enough voting power in another firm (or subsidiary ) to control management and operations by influencing or electing its board of directors . The definition of

294-704: A minority stake in the spin-off. MSG Entertainment owns and operates its namesake Madison Square Garden in New York City, including the arena and The Theater at Madison Square Garden . In addition to the Garden itself, MSG Entertainment operates two other theaters in Manhattan: Radio City Music Hall and the Beacon Theatre . Outside New York City, MSG Entertainment owns and operates the Chicago Theatre (acquired in 2008). MSG Entertainment also produces

336-648: A new arena by trying to stop its construction. In March 2019, leaked emails revealed that Irving Azoff attempted to lure the Los Angeles Lakers back to The Forum after their lease at the Staples Center was up. Despite nothing coming of the proposal, Azoff's proposal to re-purpose The Forum was seen as a way of preventing the Los Angeles Clippers from building their own arena in Inglewood and ensuring that

378-425: A parent company differs from jurisdiction to jurisdiction, with the definition normally being defined by way of laws dealing with companies in that jurisdiction. When an existing company establishes a new company and keeps majority shares with itself, and invites other companies to buy minority shares, it is called a parent company. A parent company could simply be a company that wholly owns another company, which

420-472: A policy that prohibits representatives of law firms that have been engaged in litigation with MSG or its subsidiaries from attending its venues in New York City. The company stated that this is for professional conduct reasons. MSG Entertainment has faced criticism for using facial recognition to enforce this policy, which is being probed by the Attorney General of New York . In January 2023, members of

462-580: A spherical music venue in Las Vegas , called MSG Sphere Las Vegas , planned to open in 2021. Earlier in the year, MSG announced plans to build MSG Sphere London , near the Queen Elizabeth Olympic Park in Stratford . Both venues are designed by Populous architects and are supposed to incorporate highly advanced audio and visual technologies. In November 2019, MSG announced its intent to perform

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504-551: A tax-free spin off its non-sports assets as a new publicly traded company. Both companies would remain controlled by the Dolan family. The spin-off was completed in April 2020, with the entertainment assets spun off as Madison Square Garden Entertainment , and the existing company renamed Madison Square Garden Sports. On August 17, 2016, MSG acquired a 12% stake in digital media, broadcasting, and events company Townsquare Media from GE Capital. In January 2017 MSG paid $ 181 million for

546-465: A tending subsidiary of the purchasing company, which, in turn, becomes the parent company of the subsidiary. (A holding below 50% could be sufficient to give a parent company material influence if they are the largest individual shareholder or if they are placed in control of the running of the operation by non-operational shareholders.) In the United Kingdom, the term holding company is defined by

588-458: Is defined by Part 1.2, Division 6, Section 46 of the Corporations Act 2001 (Cth) , which states: A body corporate (in this section called the first body) is a subsidiary of another body corporate if, and only if: Toronto-based lawyer Michael Finley has stated, "The emerging trend that has seen international plaintiffs permitted to proceed with claims against Canadian parent companies for

630-453: Is sometimes done on a per- market basis. For example, in Atlanta both WNNX and later WWWQ are licensed to "WNNX LiCo, Inc." (LiCo meaning "license company"), both owned by Susquehanna Radio (which was later sold to Cumulus Media ). In determining caps to prevent excessive concentration of media ownership , all of these are attributed to the parent company, as are leased stations , as

672-428: Is to own stock of other companies to form a corporate group . In some jurisdictions around the world, holding companies are called parent companies , which, besides holding stock in other companies, can conduct trade and other business activities themselves. Holding companies reduce risk for the shareholders , and can permit the ownership and control of a number of different companies. The New York Times uses

714-473: The Companies Act 2006 at section 1159. It defines a holding company as a company that holds a majority of the voting rights in another company, or is a member of another company and has the right to appoint or remove a majority of its board of directors, or is a member of another company and controls alone, pursuant to an agreement with other members, a majority of the voting rights in that company. After

756-606: The New York State Assembly and New York State Senate introduced identical bills designed to prevent MSG Entertainment from enforcing its policy at sporting events. In late 2022, an attorney who works for a law firm in New Jersey involved in active litigation against MSG Entertainment was barred from attending the Radio City Christmas Spectacular with her nine-year-old daughter's Girl Scout troop and

798-459: The Radio City Christmas Spectacular (starring the Rockettes ) at Radio City Music Hall and formerly in other venues around the United States. In November 2019, The Madison Square Garden Company announced that it would spin off its non-sports assets as Madison Square Garden Entertainment (MSGE). The spin-off was completed on April 20, 2020. On March 26, 2021, MSGE announced that it would acquire

840-667: The Westchester Knicks , and the National Hockey League 's New York Rangers and their American Hockey League affiliate, the Hartford Wolf Pack . The original company was established in 2010 when Cablevision spun off the New York Knicks , New York Rangers , Madison Square Garden , MSG Network and other entertainment assets as an independent, publicly traded company. In 2015, the original company spun off

882-613: The financial crisis of 2007–2008 , many U.S. investment banks converted to holding companies. According to the Federal Financial Institutions Examination Council 's website, JPMorgan Chase , Bank of America , Citigroup , Wells Fargo , and Goldman Sachs were the five largest bank holding companies in the finance sector, as of December 2013 , based on total assets. The Public Utility Holding Company Act of 1935 caused many energy companies to divest their subsidiary businesses. Between 1938 and 1958

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924-518: The regional sports network group MSG Networks in an all-stock deal, reuniting it with its namesake venue; MSG Networks had originally been spun out from The Madison Square Garden Company in 2015. The acquisition was completed in July 2021. On April 20, 2023, MSGE was renamed Sphere Entertainment , and spun off its "traditional" live events business (including its venues, aside from Sphere in Las Vegas ) as

966-472: The MSG properties, including the sports franchises, into the Madison Square Garden Company. On September 30, 2015, MSG spun off its regional sports networks; the split was structured so that the original Madison Square Garden Company was renamed to MSG Networks, Inc., and spun off its sports and entertainment properties as a new Madison Square Garden Company. In September 2018, Madison Square Garden began work on

1008-468: The Madison Square Garden Company got an unfair advantage over rival AEG, which already owns part of the Lakers. In the summer of 2019 it was reported that the company had spent large amounts of money trying to influence Inglewood's mayoral election in the hopes of preventing the construction of the competing arena. In addition, the company also financially supported community groups and lawsuits seeking to prevent

1050-493: The Madison Square Garden Corporation merged with Graham-Paige, and on March 9, 1962, Graham-Paige changed its name to the Madison Square Garden Corporation to reflect its largest asset. Gulf and Western Industries , which began purchasing Madison Square Garden stock in 1969 and by 1977 owned 81%, purchased complete control of the corporation and turned it into a wholly owned subsidiary on August 19, 1977. At

1092-526: The Madison Square Garden Corporation within five years and resign as officers and directors of the company. Though Norris and Wirtz appealed, the Supreme Court of the United States upheld Ryan's decision two years later. On January 30, 1959, Norris and Wirtz accordingly sold their controlling interest in the Madison Square Garden Corporation, accounting for 40% of the stock, to automaker-turned-investment firm Graham-Paige for $ 4 million. On April 7, 1960,

1134-580: The New Madison Square Garden Corporation for the purpose of building and operating the third Madison Square Garden . On January 15, 1925, shortly after the Garden opened, the corporation's name was changed to the Madison Square Garden Corporation. Following the success of the National Hockey League 's New York Americans , the Madison Square Garden Corporation established the New York Rangers, which began play in 1926. In 1946, at

1176-455: The United Kingdom, is generally held that an organisation holding a 'controlling stake' in a company (a holding of over 51% of the stock) is in effect the de facto parent company of the firm, having overriding material influence over the held company's operations, even if no formal full takeover has been enacted. Once a full takeover or purchase is enacted, the held company is seen to have ceased to operate as an independent entity but to have become

1218-492: The allegedly wrongful activity of their foreign subsidiaries means that the corporate veil is no longer a silver bullet to the heart of a plaintiff's case." The parent subsidiary company relationship is defined by Part 1, Section 5, Subsection 1 of the Companies Act, which states: 5.—(1) For the purposes of this Act, a corporation shall, subject to subsection (3), be deemed to be a subsidiary of another corporation, if — In

1260-545: The behest of Ned Irish , the Madison Square Garden Corporation became a charter member of the National Basketball Association with the New York Knicks. By the mid-1950s, James D. Norris and Arthur Wirtz , who already owned the Detroit Olympia and Chicago Stadium as well as interests in numerous National Hockey League teams, owned some 60% of the stock in the Madison Square Garden Corporation. Both men served on

1302-512: The construction of competing venues in the New York and Los Angeles markets. Before the Madison Square Garden Company was formed, its businesses were part of Cablevision . In 2005, it was proposed that a new West Side Stadium be built for the New York Jets . The stadium would have directly competed with the then-Cablevision owned Madison Square Garden . Cablevision ran TV ads rallying against

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1344-525: The construction of the new arena. The lawsuit became moot in March 2020, when Clippers owner Steve Ballmer announced that he would purchase The Forum for $ 400 million. The Forum will be repurposed as a dedicated concert venue. Holding company A holding company is a company whose primary business is holding a controlling interest in the securities of other companies. A holding company usually does not produce goods or services itself. Its purpose

1386-496: The corporation's board, as did Irish (who was executive vice president) and John Reed Kilpatrick (who became chairman of the board), among others. In 1957, however, U.S. Federal Judge Sylvester J. Ryan ruled that the International Boxing Club of New York (IBC), run by Norris and Wirtz, was monopolizing the promotion of boxing matches in violation of U.S. antitrust law . Ryan ordered the two men to divest their stock in

1428-401: The lawsuit was brought about by "business interests from out-of-state", suggesting that the Madison Square Garden Company were using this group to not have a competing arena nearby. James Dolan was said to be trying to avoid being deposed in the case. In December 2018, the Los Angeles Clippers countersued the Madison Square Garden Company alleging that they are trying to prevent competition from

1470-571: The number of holding companies declined from 216 to 18. An energy law passed in 2005 removed the 1935 requirements, and has led to mergers and holding company formation among power marketing and power brokering companies. In US broadcasting , many major media conglomerates have purchased smaller broadcasters outright, but have not changed the broadcast licenses to reflect this, resulting in stations that are (for example) still licensed to Jacor and Citicasters , effectively making them such as subsidiary companies of their owner iHeartMedia . This

1512-410: The proposed stadium which ultimately resulted in the state of New York rejecting the proposal. The rejection of the proposal meant that Madison Square Garden would not have a nearby venue competing for concert revenue. The rejection of the venue also had a negative impact on New York's bid for the 2012 Summer Olympics , which was ultimately defeated by London. In 2018, the Madison Square Garden Company

1554-499: The sports and entertainment division into a separate company and the original company was renamed to MSG Networks, Inc. ; the new company took the name "the Madison Square Garden Company ". In 2020, the Madison Square Garden Company rebranded as Madison Square Garden Sports Corp. and subsequently spun off its entertainment division as Madison Square Garden Entertainment . On May 31, 1923, Tex Rickard incorporated

1596-540: The stock of Company B, Company A will not pay taxes on dividends paid by Company B to its stockholders, as the payment of dividends from B to A is essentially transferring cash within a single enterprise. Any other shareholders of Company B will pay the usual taxes on dividends, as they are legitimate and ordinary dividends to these shareholders. Sometimes, a company intended to be a pure holding company identifies itself as such by adding "Holding" or "Holdings" to its name. The parent company–subsidiary company relationship

1638-511: The term parent holding company . Holding companies can be subsidiaries in a tiered structure . Holding companies are also created to hold assets such as intellectual property or trade secrets , that are protected from the operating company. That creates a smaller risk when it comes to litigation . In the United States, 80% of stock, in voting and value, must be owned before tax consolidation benefits such as tax-free dividends can be claimed. That is, if Company A owns 80% or more of

1680-783: The time of Gulf and Western's acquisition, the Madison Square Garden Corporation owned the arena, Knicks, Rangers, three horse tracks ( Roosevelt Raceway , Arlington Park , and Washington Park Race Track ), Holiday on Ice , and real estate holdings in Long Island , Manhattan , and Chicago . In June 1989, Gulf and Western changed its name to Paramount Communications, reflecting its ownership of Paramount Pictures and its focus on its entertainment and publishing properties. In 1994, Viacom purchased majority ownership of Paramount Communications, but quickly sold MSG to Cablevision and ITT Corporation . In 1997, ITT sold its half to Cablevision for $ 650 million. In February 2010, Cablevision spun off

1722-522: Was behind a lawsuit against the city of Inglewood in an attempt to stop the construction of a new basketball arena for the Los Angeles Clippers . The new arena would compete directly with The Forum which was owned by the Madison Square Garden Company. Another lawsuit from a local community group was filed to block the construction of the venue in June 2018. Inglewood mayor James Butts suggested that

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1764-664: Was forced to have her daughter enter the venue with the other children and mothers and attend the show without her. The attorney in question does not practice law in the state of New York and had not heard of the relevant case involving MSG Entertainment until she was prevented from attending the show; she was singled out solely because of her association with her law firm. Explaining the policy, Executive Chairman James L. Dolan stated, "It's like something out of ‘The Godfather,’ it's like ‘It's only business.’ It's not only business, and if you sue us, we’re gonna tell you not to come." One lawyer barred from entering Madison Square Garden to watch

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