MSG Sports Considering Spinning Off New York Knicks, Rangers

Описание: Randall Williams, Bloomberg US Sports Business Reporter, discusses Madison Square Garden Sports' plan to separate its New York Knicks business from its New York Rangers business.

Madison Square Garden Sports Corp.’s board of directors approved a plan to explore spinning off the NBA’s New York Knicks and NHL’s New York Rangers, a move that would make it easier to attract investors to the teams. 
Few sports conglomerates are worth more than the combined value of the Knicks and Rangers, who both play at Madison Square Garden, one of the most famous arenas in the world. Sportico values the Knicks at $9.85 billion, third in the NBA. The Rangers are worth $3.65 billion, second in the NHL behind the Toronto Maple Leafs.
Shares of MSG have soared in recent months, driven in part by the strong performance of the Knicks. Recent earnings have also been boosted by the NBA’s new national media rights deal. However, MSG was valued at just over $7 billion at the end of trading Tuesday, far below the combined value of its assets.
MSG said in a statement Wednesday that the potential transaction would allow its shareholders to better evaluate each team’s overall valuation. Shares in MSG rose over 16% in New York, the most since Nov. 2020, adding about $1 billion to its market value. 
The Knicks have long been owner Jim Dolan’s most controversial asset. While the franchise failed to capture a title in the 90s — their last championship came in 1973 — the team in that era was seen as a gritty contender, with stars like Patrick Ewing and John Starks. The Rangers last won the Stanley Cup Finals in 1994.
The Knicks made it to the Eastern Conference finals for the first time in 25 years last season, before ultimately falling to the Indiana Pacers. The Rangers have missed the playoffs the past two seasons after going to the postseason three straight years from 2021 to 2023.
Dolan has been reluctant to sell the Knicks, though the franchise has been an acquisition target for years. In 2023, former MSG president and COO David Hopkinson said the franchise would consider selling minority stakes in either team. Investment firm Silver Lake Management owns a 10% stake in MSG Sports.
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