The board of directors of Madison Square Garden Sports has approved a plan to explore splitting the New York Knicks and Rangers into separate publicly traded companies, the parent organization announced Wednesday. The proposal would divide the two franchises, along with their respective minor league affiliates.
Under the proposed structure, the Knicks and their G League team, the Westchester Knicks, would form one entity, while the Rangers and their AHL affiliate, the Hartford Wolf Pack, would form another. MSG Sports emphasized that there is no timeline for completion and the transaction is not guaranteed.
The move requires approval from both the NBA and NHL, among other things.
“We are exploring the opportunity to further create value for our shareholders by splitting our two professional sports franchises into separate companies,” James Dolan, CEO of MSG Sports, said in a statement. “Both the Knicks and Rangers are premier teams in their respective leagues, with storied histories and large and passionate fan bases. We believe this proposed transaction would provide each company with greater strategic flexibility, its own defined business focus and clear features for investors.”
The Dolan family acquired a minority stake in both franchises in 1994, before taking majority control shortly afterwards.
Dolan has repeatedly stated that he has no intention of selling either team outright. While Dolan and MSG executives have expressed openness to minority stake sales, including during an earnings call this month, an MSG executive previously indicated that such deals were not imminent.
The proposed divorce would be the latest in a series of financial restructurings by Dolan. He spun off his professional sports properties from the Madison Square Garden Arena and other entertainment assets in 2020, then reallocated his entertainment portfolio in 2023, spinning out the Sphere and MSG Networks under Sphere Entertainment Co. while its arena and live entertainment operations became a separate publicly traded entity.
Lightshed Partners’ Brandon Ross suggested the move could precede MSG taking the currently public teams private.
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