In a potential shake-up that could reverberate through the sports world, Madison Square Garden Sports Corp. is contemplating a significant restructuring. On Wednesday, MSG announced it is considering splitting the New York Knicks and the New York Rangers into separate publicly traded entities, a move that could redefine the landscape for these iconic franchises.
The board of directors has given the green light to explore this bold strategy, as confirmed by MSG’s executive chairman and CEO, James Dolan. Dolan emphasized the potential benefits, stating, “We are exploring the opportunity to further create value for our shareholders by separating our two professional sports franchises into distinct companies.” This separation aims to offer each team greater strategic flexibility and a sharper business focus, which could appeal to investors.
While the proposal is still in the exploratory phase and may not come to fruition, it does outline some specifics. The Knicks’ entity would include their G League affiliate, the Westchester Knicks, while the Rangers’ entity would encompass the minor-league Hartford Wolf Pack of the AHL.
Dolan, a fixture in the sports world, has consistently expressed his intention to retain ownership of both teams, with plans to eventually pass control to his children. This familial legacy echoes his own experience with his father.
Forbes recently valued the Knicks at a staggering $9.75 billion, positioning them as the third-most valuable NBA team, trailing only the Golden State Warriors and Los Angeles Lakers. Meanwhile, the Rangers were valued at $4 billion, ranking them as the second-most valuable NHL team, just behind the Toronto Maple Leafs.
The idea of splitting the franchises isn't entirely new. Last year, the Boyar Value Group, an MSG Sports shareholder, publicly urged Dolan to consider such a move. Jonathan Boyar, the group’s president, argued that the market is undervaluing these assets and suggested that separating the teams could correct this mispricing.
However, any decision to split the Knicks and Rangers would require the approval of both the NBA and NHL, adding another layer of complexity to an already intricate process. As discussions continue, the sports world will be watching closely to see how this potential transformation unfolds.