Cablevision (NYSE: CVC) execs began the call by offering their rationale for spinning off the Madison Square Garden segment into an independently traded entity. For one thing, the the tax free spinoff would provide more flexibility for both companies. Secondly, since the segment represents a relatively small part of Cablevision’s over results, investors haven’t been able to appreciate its full value, said Hank Ratner, Cablevision’s vice chairman.

SEE ALSO: Earnings: Cablevision Will Spin Off MSG; Profits Drop 8.1 Percent

As for the structure of the new entity, assuming it meets the usual regulatory approvals, it would be composed of three primary divisions: MSG Media, which would house cable channels like music video network Fuse; MSG Entertainment, which would serve the concerts and events promotion; and MSG Sports, which would have all the team franchises, such as the NY Rangers hockey organization and the Knicks and Liberty NBA properties. Later on during the call, Ratner said that the new MSG wouldn’t carry any debt at the outset, but it would be able to seek credit if necessary.