The Dolan family is considering dividing Madison Square Garden into two separate companies – one for the company’s real estate assets and the other for its concert and sports operations. The newly created property-centric company could qualify as a real estate investment trust, sources told Bloomberg News.
“You don’t need for instance the team to own the stadium, so if private-equity comes in there you could easily do a sale-leaseback,” Maxim Group LLC analyst John Tinker said.
MSG owns, among other things, the New York Knicks and New York Rangers.
The Alliance for a New Penn Station, a coalition of the Municipal Art Society and the Regional Plan Association, suggested last week that Madison Square Garden move to a United States Postal Service mail-sorting facility on Ninth Avenue, as previously reported. The arena moved to its location between West 31st and 33rd streets, near Eighth Avenue, in 1963. [Bloomberg News] — Mark Maurer