THE MADISON SQUARE GARDEN COMPANY (NYSE:MSG) Files An 8-K Entry into a Material Definitive Agreement
Item1.01
| Entry into a Material Definitive Agreement |
On May22, 2017, MSG Sports Entertainment, LLC (MSG SE), a
wholly-owned subsidiary of The Madison Square Garden Company
(theCompany) and CharlesF. Dolan (the G550 Lessee), a director of
the Company, entered into an aircraft lease agreement (the G550
Dry Lease Agreement), to which the G550 Lessee may lease on a
non-exclusive basis MSG SEs Gulfstream Aerospace G550 aircraft.
Under the terms of the G550 Dry Lease Agreement, the G550 Lessee
will pay MSG SE rent at an hourly rate and specified expenses of
each flight.
On May22, 2017, MSG SE and Sterling Aviation, LLC (Sterling), a
company controlled by CharlesF. Dolan, also entered into a
reciprocal aircraft lease agreement (the GV Dry Lease Agreement),
to which MSG SE may lease on a non-exclusive basis Sterlings
Gulfstream Aerospace G-V aircraft (the GV Aircraft). Under the
terms of the GV Dry Lease Agreement, MSG SE will pay Sterling
rent at an hourly rate and specified expenses of each flight.
Both the G550 Dry Lease Agreement and the GV Dry Lease Agreement
include true-up mechanisms such that, to the extent one partys
annual usage exceeds the other partys annual usage of the other
partys aircraft, the party with the greater aircraft usage would
pay an additional hourly rate with respect to excess hours
intended to cover the additional costs. In addition, the
reciprocal arrangements provide for equitable adjustment in the
event that discrepancies in hours of usage or other factors cause
the arrangement to be economically unfair to either party.
On May22, 2017, David OConnor, President and Chief Executive
Officer of the Company, entered into an aircraft time sharing
agreement (the Time Sharing Agreement) with MSG SE, to which
Mr.OConnor may lease the GV Aircraft from MSG SE for limited
personal use. For flights taken under the Time Sharing Agreement,
Mr.OConnor will pay for the actual expenses of such flight as
listed in the agreement, but not to exceed the maximum amount
permitted under Federal Aviation Administration rules.
The above descriptions of the G550 Dry Lease Agreement, the GV
Dry Lease Agreement and the Time Sharing Agreement are qualified
in their entirety by reference to those agreements which are
attached hereto as Exhibit10.1, Exhibit10.2 and Exhibit10.3,
respectively, and are incorporated into this Item1.01 by
reference.
| Item5.02 |
Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers; Compensatory Arrangements of Certain Officers |
The information set forth in Item1.01 with respect to the Time
Sharing Agreement between MSG SE and Mr.OConnor is incorporated
herein by reference.
| Item9.01 | Financial Statements and Exhibits |
| (d) | Exhibits |
| 10.1 |
Dry Lease Agreement, dated May22, 2017, between MSG Sports Entertainment, LLC and CharlesF. Dolan (fortheG550). |
|
| 10.2 |
Dry Lease Agreement, dated May22, 2017, between Sterling Aviation, LLC and MSG Sports Entertainment, LLC (fortheGV). |
|
| 10.3 |
Time Sharing Agreement, dated May22, 2017, between MSG Sports Entertainment, LLC and David OConnor. |
About THE MADISON SQUARE GARDEN COMPANY (NYSE:MSG)
The Madison Square Garden Company is a holding company, which is engaged in live experiences consisting of celebrated venues, sports teams, and entertainment productions. The Company operates in two segments, which include MSG Entertainment and MSG Sports. The MSG Sports segment includes the Company’s professional sports franchises, which include the New York Knicks (the Knicks) of the National Basketball Association (the NBA), the New York Rangers (the Rangers) of the National Hockey League (the NHL), the New York Liberty (the Liberty) of the Women’s National Basketball Association (the WNBA), the Hartford Wolf Pack of the American Hockey League (the AHL), which is the primary player development team for the Rangers, and the Westchester Knicks, an NBA Development League team. The MSG Entertainment segment includes the Company’s live entertainment events. The Company presents or hosts live entertainment events, including concerts, family shows, performing arts and special events. THE MADISON SQUARE GARDEN COMPANY (NYSE:MSG) Recent Trading Information
THE MADISON SQUARE GARDEN COMPANY (NYSE:MSG) closed its last trading session up +1.13 at 195.67 with 82,416 shares trading hands.