MSG, Irving Azoff Create New Entertainment/Media Company
September 4, 2013 at 3:21 PM (PT)
The MADISON SQUARE GARDEN COMPANY and AZOFF MUSIC MANAGEMENT (AMM) are teaming up to create a new music, media and entertainment company focused on continuing the development of AMM's existing businesses and exploring new ventures and growth opportunities that maximize opportunities for clients, partners and associated brands. The new company will be called AZOFF MSG ENTERTAINMENT LLC..
AMM will contribute to the Company its existing artist management business and other businesses that are in development. A subsidiary of MSG will pay AMM $125 million for a 50% interest in the Company and will also agree to provide up to $50 million of revolving credit loans.
The Company will feature four integrated units, each designed to achieve maximum value for artists and brands in today's evolving business environment and new media platforms.
* AZOFF MUSIC MANAGEMENT -- Management services to such superstar clients as THE EAGLES, VAN HALEN, LINDSEY BUCKINGHAM of FLEETWOOD MAC, CHRISTINA AGUILERA and STEELY DAN.
* Global Music Rights -- The Company will own a 90% interest in a music publishing venture run by CEO RANDY GRIMMETT and COO SEAN O'MALLEY, whose business is the acquisition, development, licensing and exploitation of copyrighted works for the purposes of music publishing, co-publishing, licensing, administering, developing a musical library, and acting as an agent on behalf of such works.
* Television Production and Live Event Branding -- A new television production and live event branding unit, to be headed by LAWRENCE RANDALL, former head of programming and entertainment for the NFL. The unit will acquire, develop, produce and exploit live and televised event entertainment through organic growth and acquisitions.
* Digital Brand Architects (DBA) -- The Company will own a 50% ownership interest in this business in support of its growth and expansion plans. DBA is managed by KAREN ROBINOVITZ, RAINA PENCHANSKY and KENDRA BRACKEN-FERGUSON. DBA manages more than 70 notable bloggers. ALLISON STATTER will oversee and coordinate this unit on behalf of the Company.
* In addition, the Company will partner with BRIAN SCHUSTER and leading digital technology company ACTV8, along with UNITED TALENT AGENCY, in a worldwide rollout of "Streets of the City" -- the first-ever completely interactive, live music discovery TV show that allows viewers to scout street talent and support contestants on the show through crowd-funding on TV.
"This joint venture provides a unique opportunity for MSG to strengthen its position within the music, entertainment and media landscape in conjunction with IRVING AZOFF -- one of the true giants of the industry, " MSG Executive Chairman JAMES DOLAN said. "Our previous investment with IRVING's companies provided a positive return for MSG, and we believe this new venture offers us a compelling platform from which to capitalize on the enormous opportunities inherent in today's dynamic entertainment environment."
"The mission of our new venture is to go into a business where we can better an artist's welfare, well-being and their ability to market their products," AZOFF added. "We're looking for artist-friendly and, as a result, fan-friendly projects. One way we'll accomplish this is by supporting talent's vision and committing capital, along with management consultation, in a variety of fields, to assist the artists in realizing their creative vision."