SCHEDULE: Dolan Family Updates MSG Entertainment Ownership, Secures Margin Loan

James L. Dolan and related trusts updated their beneficial ownership in Madison Square Garden Entertainment Corp. and secured a $100 million margin loan collateralized by company shares.

Summary

• The Dolan family group beneficially owns an aggregate of 8,431,743 shares of Class A Common Stock in Madison Square Garden Entertainment Corp. (MSGE), representing approximately 17.8% of the total outstanding Class A Common Stock.
• This aggregate ownership includes 1,564,989 shares of Class A Common Stock (inclusive of exercisable options, restricted stock units, and performance restricted stock units vesting within 60 days) and 6,866,754 shares of Class A Common Stock issuable upon conversion of an equal number of Class B Common Stock.
• James L. Dolan individually may be deemed to beneficially own 2,846,565 shares, or approximately 6.6% of the outstanding Class A Common Stock.
• Kathleen M. Dolan may be deemed to beneficially own 3,693,478 shares, or approximately 8.4% of the outstanding Class A Common Stock.
• Corby Dolan Leinauer may be deemed to beneficially own 3,739,007 shares, or approximately 8.5% of the outstanding Class A Common Stock.
• Mary S. Dolan may be deemed to beneficially own 4,337,599 shares, or approximately 9.7% of the outstanding Class A Common Stock.
• On February 25, 2026, James L. Dolan entered into a Secured Margin Line of Credit Note with JPMorgan Chase Bank, N.A. (JPM) for up to $100,000,000.00.
• To secure this loan, James L. Dolan pledged 332,392 shares of MSGE Class A Common Stock, along with 206,104 MSGS Shares and 949,358 SPHR Shares.
• Additionally, CFD 2009 Family Trust LLC pledged 6,717 shares of MSGE Class A Common Stock, and Charles F. Dolan Children's Trust LLC pledged 44,342 shares of MSGE Class A Common Stock as collateral for the same margin line of credit.
• The total MSGE Class A Common Stock pledged as collateral for the margin loan is 383,451 shares.
• Patrick F. Dolan is no longer a director of AMC Networks Inc. and is identified as the owner and president of Newsday.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral filing. It is a routine disclosure of beneficial ownership and a personal financing arrangement, which does not directly impact the company's operational or financial performance, though it introduces personal leverage for a key insider.

Negatives

• The margin loan introduces leverage for James L. Dolan and the associated trusts, increasing their personal financial risk.
• A 'Collateral Shortfall' event could lead to JPM forcing the sale of pledged shares, potentially impacting the market price of MSGE, MSGS, and SPHR shares.
• The Bank (JPM) has sole discretion to determine acceptable collateral and its value, and can change these terms without advance notice, potentially triggering a collateral shortfall.

Risks

• Risk of forced liquidation of pledged shares (MSGE, MSGS, SPHR) by JPMorgan Chase Bank, N.A. if a 'Collateral Shortfall' occurs or an Event of Default is triggered under the margin loan agreement.
• Market volatility could decrease the value of the pledged securities, leading to a collateral shortfall and requiring the borrower to deposit additional assets or pay down the loan.
• Changes in interest rates for the floating interest rate option on the margin loan could increase borrowing costs for James L. Dolan and the trusts.
• The Bank's ability to sell pledged securities without prior contact or the borrower's choice of which assets to liquidate in a collateral shortfall scenario.

Future Outlook

The filing does not contain forward-looking statements or guidance regarding the company's operational or financial performance. It primarily details beneficial ownership and personal financing arrangements of key individuals and related trusts.

Industry Context

StockSavvy.ai notes that this filing is a routine update to beneficial ownership disclosures, common for significant shareholders, particularly family groups with complex trust structures. The margin loan taken by James L. Dolan and associated trusts is a personal financing strategy, not directly indicative of Madison Square Garden Entertainment Corp.'s operational performance or industry trends. Such arrangements are typical for high-net-worth individuals seeking liquidity against their equity holdings.

Comparison to Industry Standards

• The beneficial ownership percentages of the Dolan family in Madison Square Garden Entertainment Corp. are substantial, reflecting a concentrated ownership structure common in companies with a strong founding family presence, similar to other media and entertainment conglomerates where family control is maintained through dual-class share structures.
• The use of a secured margin line of credit by a principal shareholder is a standard financial practice for liquidity management, comparable to similar arrangements seen with founders or large individual investors in companies like Comcast (Roberts family) or News Corp (Murdoch family), where significant personal wealth is tied to company stock.

Management Changes

Related Party Transactions

• James L. Dolan and related family trusts (CFD 2009 Family Trust LLC and Charles F. Dolan Children's Trust LLC) entered into a Secured Margin Line of Credit Note and Collateral Agreement with JPMorgan Chase Bank, N.A., pledging shares of Madison Square Garden Entertainment Corp. (MSGE), Madison Square Garden Sports Corp. (MSGS), and Sphere Entertainment Co. (SPHR).

Stakeholder Impact

• Shareholders: The pledging of a significant block of shares by a principal shareholder introduces a potential risk of forced sales if margin calls occur, which could exert downward pressure on the stock price.
• Creditors: The margin loan creates a secured obligation for James L. Dolan and the trusts, with JPM having a first priority security interest in the pledged shares.

Key Dates

Recommendation

This filing primarily concerns beneficial ownership updates and a personal margin loan taken by James L. Dolan and related trusts. It does not provide new information about Madison Square Garden Entertainment Corp.'s operational performance, strategic direction, or financial health that would warrant a change in investment thesis. The margin loan introduces personal leverage for a key insider, which is a risk for the individual, but does not directly alter the company's fundamentals. Therefore, a 'hold' recommendation is appropriate, maintaining existing positions while monitoring for any future company-specific developments.

Keywords

Madison Square Garden Entertainment, MSGE, Beneficial Ownership, Schedule 13D, Dolan Family, Margin Loan, JPMorgan Chase, Class A Common Stock, Class B Common Stock, Corporate Governance, Insider Ownership, Pledged Shares