Madison Square Garden explores spin-off for live entertainment business

Yahoo Finance Live checks out Madison Square Garden Entertainment's stock as the group explores options into the live entertainment industry.

Video Transcript

DAVE BRIGGS: Madison Square Garden, MSG, the company announcing it's exploring a spinoff of its live entertainment business. The new company would also control the garden's licensing agreements with the New York Knicks and the New York Rangers. It would leave MSG Entertainment with the TAO Group Hospitality and the MSG sphere business. Now, they expect to complete construction on a Vegas project in 2023. Shares of MSG on this news up around 2% today and up about 10% over the last 12 months.

Now, just for Josh, MSG's most famous resident, the Knicks, well, they've made the playoffs once in the last 10 years and haven't seen the Conference Finals since the '99, 2000 season, Mr. Schafer.

JOSH SCHAFER: So, Dave, are you suggesting that the spinoff is because the Knicks aren't good enough, and they want to get those licensing deals separate? Maybe?

DAVE BRIGGS: You see what I'm getting at?

JOSH SCHAFER: Yeah. I mean, they will be separate if that deal goes through, right? And I think the Vegas part there is definitely interesting to watch as well. We know FanDuel is trying to open up brick and mortar sportsbook in Vegas. Seems like a little bit more activity going on as far as building goes in Vegas. Certainly a space that's been picking up when we talk about the sports world. And really, more teams in pro sports getting involved there.