MSG Sports Approves Split of Knicks and Rangers Into Two Public Companies

Madison Square Garden Sports Corp. announced Sept. 30 that its board approved the spin-off of the New York Rangers business from the New York Knicks operations. The transaction will close Oct. 26.

Two separate public companies will be born. The parent company will rebrand as MSG Knickerbockers Corp. and trade under the ticker MSGK. This entity will include the NBA franchise and the Westchester Knicks. MSG Rangers Corp. will take ownership of the NHL franchise, the AHL’s Hartford Wolf Pack, and the MSG Training Center, with shares trading on the NYSE under the symbol MSGR.

“With our board’s approval we are now one step closer to our goal of separating our Knicks and Rangers businesses into two distinct public companies,” said James L. Dolan in a statement, per Business Wire. “Both teams have storied histories and large and passionate fan bases, and we believe each company will be well-positioned to generate long-term value for shareholders.”

Dolan will serve as Executive Chairman and Chief Executive Officer of both independent corporations.

Stockholders of record as of Oct. 20 will get one share of MSG Rangers common stock for every two shares of MSG Sports held. No action or payment is needed from stockholders to receive the new shares.

When-issued trading for MSG Rangers will start Oct. 21, alongside ex-distribution trading for the renamed Knickerbockers entity. Regular way trading will begin Oct. 27 with MSG Knicks Class A common stock trading under MSGK and MSG Rangers Class A common stock under MSGR.

The separation aims to create distinct equity valuations for the franchises, which means investors will be able to target basketball and hockey operations independently without having to buy into both sports at once.

The move marks the latest in a series of spin-offs directed by the Dolan family. In 2010, Madison Square Garden was spun off from Cablevision into its own publicly traded company. The teams and venues were split in 2020 under MSGS and Madison Square Garden Entertainment.

The spin-off is intended to qualify as a tax-free distribution for U.S. federal income tax purposes. Completion remains subject to effectiveness of the Form 10 registration statement, final league approval, and receipt of a tax opinion from counsel.