Madison Square Garden Sports Corp. Explores Potential Spin-Off to Separate Knicks and Rangers Businesses

2026-02-18 09:30:57 ET

Madison Square Garden Sports Corp. (NYSE: MSGS ) has announced that its Board of Directors has unanimously approved a plan to explore a potential spin-off. If the company moves forward, the transaction would separate the New York Knicks and the New York Rangers into two independent, publicly traded businesses.

A Move Aimed at Unlocking Value

By pursuing a spin-off, MSG Sports wants to give shareholders a clearer view of each franchise's value, assets, and long-term growth potential. At the same time, the company believes each team would gain greater financial and strategic flexibility by operating under its own business structure.

Notably, MSG Sports expects to structure the spin-off as a tax-free transaction for shareholders. If completed, holders of MSG Sports' Class A and Class B common stock would receive a pro-rata distribution of 100% of the common stock in the newly created public company.

Dolan: Two Premier Teams, Two Focused Businesses

Jim Dolan, Executive Chairman and CEO of MSG Sports, said the company sees the separation as a way to create additional shareholder value while sharpening each organization's business focus.

"We are exploring the opportunity to further create value for our shareholders by separating our two professional sports franchises into distinct companies," Dolan said. "Both the Knicks and Rangers are premier teams in their respective leagues, with storied histories and large, passionate fan bases."

He added that the spin-off could give each company "enhanced strategic flexibility," a clearer identity for investors, and more defined business priorities.

What the Spin-Off Could Look Like

If MSG Sports completes the transaction, each new company would control one franchise and its affiliated development team.

The New York Knicks Company Would Include:

• The New York Knicks , one of the NBA's original franchises, with eight NBA Finals appearances and two championships

• The Westchester Knicks , the team's exclusive NBA G League affiliate

The New York Rangers Company Would Include:

• The New York Rangers , one of the NHL's "Original Six" franchises, with four Stanley Cup Championships and a fan base spanning generations

• The Hartford Wolf Pack , the Rangers' top AHL affiliate

Next Steps: Review Process Still in Early Stages

Although the Board has approved the plan for exploration, MSG Sports emphasized that it has not committed to completing the spin-off. In other words, the company may still decide not to proceed.

Before any deal can close, MSG Sports must meet several conditions. For example, the company will need:

• league approvals

• a tax opinion from counsel

• final approval from the MSG Sports Board of Directors

Meanwhile, the company has not set a timeline for completing the review process.

About Madison Square Garden Sports Corp.

Madison Square Garden Sports Corp. owns and operates the New York Knicks (NBA) and the New York Rangers (NHL) , along with their development league teams, the Westchester Knicks (NBAGL) and the Hartford Wolf Pack (AHL) . In addition, the company operates the MSG Training Center , a high-performance facility in Greenburgh, New York.

Overall, the potential spin-off signals a major strategic shift for MSG Sports. If the company proceeds, it could give each franchise more independence while offering investors a clearer, more focused way to evaluate the Knicks and Rangers as separate businesses.

The post Madison Square Garden Sports Corp. Explores Potential Spin-Off to Separate Knicks and Rangers Businesses appeared first on PRISM MarketView .

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