MSG Sports to Spin Off Knicks and Rangers into Separate Companies

Madison Square Garden Sports Corp. disclosed that it will separate its NBA and NHL holdings into two publicly traded entities. The Knicks will be placed under MSG Knickerbockers Corp., which will also own the Westchester Knicks of the G-League, while the Rangers, the Hartford Wolf Pack and the MSG Training Center will move to a newly formed MSG Rangers Corp. The company filed a registration statement with the U.S. Securities and Exchange Commission and expects the transaction to close by the end of October, coinciding with the start of the NBA season.

Bloomberg

Bloomberg reports that Sportico values the Knicks at roughly $9.85 billion, ranking them third-highest in the league, and the Rangers at about $3.65 billion, second only to the Toronto Maple Leafs. Private-equity firm Silver Lake Management holds a 10 percent stake in MSG Sports, giving it a foothold in both future entities.

Bloomberg

James Dolan, executive chairman and chief executive officer of MSG Sports, will retain his titles for both the Knicks-focused and Rangers-focused companies, ensuring continuity of leadership across the two franchises.

Bloomberg

The spin-off follows the Knicks’ first championship in 53 years, a milestone that has heightened interest in the franchise’s financial prospects. The Rangers, whose most recent Stanley Cup came in 1994, remain a valuable asset in a league where franchise values have surged. Earlier in the week, Josh Kushner and Bob Iger finalized a $12.5 billion purchase of the Los Angeles Lakers, underscoring the broader trend of escalating NBA franchise valuations.

Bloomberg

With the SEC filing already submitted, the separation is slated for completion by the end of October. Analysts anticipate that the distinct public listings could provide clearer investment pathways for fans and investors, potentially unlocking value by allowing each team’s performance and revenue streams to be evaluated independently.

Bloomberg