NEW YORK — Changes may be coming for Madison Square Garden Sports, which announced Wednesday it is considering splitting the Knicks and Rangers into separate entities.
The company said Wednesday that its board of directors unanimously approved MSG exploring converting the Knicks and Rangers into two different publicly traded companies.
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“We are exploring opportunities to further create value for our shareholders by spinning off our two professional sports franchises into separate companies,” said James Dolan, executive chairman and CEO of MSG.
“We believe the proposed transaction will provide each company with enhanced strategic flexibility, its own clear business focus and clear characteristics for its investors.”
The announcement warned that this shift may never materialize.
But it does specify that the Knicks, Inc. will include the team’s G League affiliate (the Westchester Knicks), while the Rangers, Inc. will include the AHL’s minor league Hartford Wolf Pack.
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Dolan, 70, has said multiple times in recent years that he has no plans to sell the Knicks or Rangers.
Last year, during an appearance on Jalen Brunson and Josh Hart’s “The Roommate Show” podcast, Dolan said he wanted to eventually hand over control to his children, noting, “That’s what my dad and I do.”
Last year, Forbes valued the Knicks at $9.75 billion, making them the NBA’s third most valuable team, behind the Golden State Warriors ($11 billion) and the Los Angeles Lakers ($10 billion).
Forbes values the Rangers at $4 billion, making them the NHL’s second-most valuable team, behind the Toronto Maple Leafs ($4.4 billion).
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MSG Sports shareholder Boyar Value Group urged Dolan in an open letter to separate the Knicks and Rangers after the Lakers were sold for $10 billion last year.
“The market is seriously mispriced for these assets,” Jonathan Boyar, the group’s president, said in June. “It’s time to reverse the ‘Dolan discount’ and allow the market to properly value two of the most iconic franchises in all of sports.”
Splitting the Knicks and Rangers would require approval from the NBA and NHL.
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