Form 4: James L. Dolan Reports Changes in Beneficial Ownership of Madison Square Garden Entertainment Corp. Stock
SEC Form 4
James L. Dolan, Executive Chairman & CEO of Madison Square Garden Entertainment Corp., reports transactions involving Class A Common Stock and Restricted Stock Units, resulting in adjustments to his beneficial ownership.
Summary
- On September 13, 2024, James L. Dolan, Executive Chairman & CEO of Madison Square Garden Entertainment Corp. (MSGE), reported transactions related to Class A Common Stock and various Restricted Stock Units (RSUs) and Performance Stock Units (PSUs).
- These transactions involved the vesting and settlement of RSUs and PSUs granted under the Madison Square Garden Entertainment Corp. 2023 Employee Stock Plan, some of which were initially granted by Sphere Entertainment Co. (SPHR).
- Dolan acquired shares through the vesting of RSUs and PSUs, and a portion of the shares were withheld to satisfy tax obligations.
- Following these transactions, Dolan directly owns 243,006 shares of Class A Common Stock and indirectly owns 26,320 shares through his spouse and 746 shares through his minor children.
- He also holds 32,917 Restricted Stock Units and 62,267 Restricted Stock Units.
Sentiment
Score: 6
Explanation: The document is a standard regulatory filing detailing stock transactions. It doesn't inherently convey positive or negative sentiment, but the vesting of performance-based units suggests that some performance goals were met.
Positives
- The vesting of RSUs and PSUs indicates that performance conditions were met, which could be seen as a positive sign.
Management Comments
- Mr. Dolan disclaims beneficial ownership of securities beneficially owned by his spouse and minor children, except for those in which he has a direct pecuniary interest.
Industry Context
This filing is a routine disclosure related to executive compensation and stock ownership, common in publicly traded companies. It provides transparency into the holdings and transactions of key executives.
Comparison to Industry Standards
- Executive compensation packages often include a mix of salary, stock options, and restricted stock units.
- The vesting schedules and performance conditions associated with the RSUs and PSUs are typical for executive compensation plans in publicly traded companies.
- Companies like Live Nation Entertainment (LYV) and AEG, which are competitors in the entertainment space, also utilize similar equity-based compensation strategies for their executives.
Stakeholder Impact
- The transactions could have a minor impact on shareholders due to the increase in the number of shares outstanding, but the effect is likely minimal.
- The vesting of RSUs and PSUs benefits the executive, aligning their interests with those of the shareholders.
Key Dates
| Date | Description |
|---|---|
| August 27, 2021 | Date of initial RSU and PSU grants by SPHR that were later converted to MSGE grants. |
| April 20, 2022 | Date of initial RSU and PSU grants by SPHR that were later converted to MSGE grants. |
| April 20, 2023 | Date of RSU and PSU grants under the MSGE 2023 Employee Stock Plan. |
| September 1, 2023 | Date of RSU grants under the 2023 Employee Stock Plan. |
| September 15, 2023 | Date when one-half or one-third of certain RSUs vested and were settled. |
| August 27, 2024 | Date when performance conditions were satisfied for certain PSUs. |
| September 13, 2024 | Date of reported transactions, including vesting and settlement of RSUs and PSUs. |
| September 15, 2025 | Scheduled vesting and settlement date for remaining one-third of certain RSUs. |
| September 15, 2026 | Scheduled vesting and settlement date for remaining one-third of certain RSUs. |
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