Azoff Music Management has agreed to acquire Madison Square Garden Co.'s 50% stake in the Azoff MSG Entertainment joint venture for $125 million.

Once the deal is complete, the new entity will be called The Azoff Co., according to an Oct. 8 news release. The newly created entity and Madison Square Garden also entered into multiyear consultancy agreements, under which The Azoff Co. will continue to advise Madison Square Garden, including on the Forum and MSG Sphere initiative.

The Azoff MSG Entertainment JV was created in 2013 between MSG and Azoff Music Management. Irving Azoff will lead the new company as chairman and CEO.

Completion of the transaction remains subject to certain closing conditions, including financing. J.P. Morgan served as financial adviser to MSG and Centerview Partners served as financial adviser to Azoff Music Management.

Madison Square Garden recently filed a confidential initial Form 10 registration statement for the proposed spinoff of its sports business.