James Dolan’s Madison Square Garden Sports announced Wednesday that it is considering splitting the New York Knicks and Rangers into two separately traded public companies.
Its board of directors has approved a plan to look into spinning off its hockey and basketball teams into separate firms – sparking rumors over whether the company is planning to sell off one of the two teams or take the new companies private.
“We are exploring the opportunity to further create value for our shareholders by separating our two professional sports franchises into distinct companies,” Dolan, executive chairman and CEO at Madison Square Garden, said in a Wednesday statement.
“We believe this proposed transaction would provide each company with enhanced strategic flexibility, its own defined business focus, and clear characteristics for investors.”
A source familiar with the matter said the potential spin-off plan is not tied to any hopes to take the companies private or sell off a team.
If the split takes place, the Knicks and their NBA G League club, the Westchester Knicks, would make up one company, while the other would consist of the Rangers and their minor league team, the Hartford Wolf Pack.
MSG Sports said terms could change and there is no guarantee the proposed split will take place. It has not set a deadline to make a decision on a spin-off.
A split would require approval from the company’s board, as well the NBA and NHL.
Dolan has said he is not looking to sell either of the teams, though he has signaled he is open to selling minority stakes.
The proposed separation wouldn’t be the first time he has divvied up his franchises.
In 2020, he split up the Madison Square Garden Company, separating his sports teams from his entertainment assets like the Las Vegas Sphere.
Dolan further split up his holdings in 2023, separating Sphere Entertainment from MSG Entertainment.
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