Madison Square Garden is a cash cow that Cablevision Systems Corp. (NYSE:CVC) wants to let out of the barn. The Bethpage, N.Y.-based company said during a Thursday conference call that it is looking into possibly spinning off Madison Square Garden.
The spinoff could play out in several scenarios that include an outright sale, going public or establishing it as a separate entity. Cablevision didn't elaborate in what direction it may go and just said it is exploring its options.
So, what's in Madison Square Garden?
- Regional and national programming networks MSG, MSG Plus and Fuse
- The New York Knicks basketball team
- The New York Rangers hockey team
- MSG Entertainment
- Radio City Music Hall, the Beacon Theatre and the Chicago Theater.
The crown jewel of those assets possibly may be the New York Knicks, which Forbes rated as the most valuable NBA team at $613 million. Cablevision acquired the Knicks for $300 million in 1997. Despite having one of the highest payrolls in the NBA, the Knicks earned a profit of $30 million in 2008, according to Forbes. - Gerald Magpily
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