MSG Sports board approves plan to explore Knicks, Rangers spin-off

Madison Square Garden Sports Corp. (NYSE: MSGS) announced its board of directors unanimously approved a plan to explore a possible spin-off that would separate its New York Knicks and New York Rangers businesses into two distinct publicly traded companies.

The proposed transaction would enable shareholders to evaluate each company's assets and growth prospects separately while providing both companies with strategic and financial flexibility, according to the company's press release.

If MSG Sports proceeds with the spin-off, the transaction is expected to be structured as a tax-free distribution to all shareholders. Upon completion, holders of 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.

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

The New York Knicks company would include the NBA franchise and the Westchester Knicks, its NBA G League affiliate. The New York Rangers company would include the NHL franchise, the Hartford Wolf Pack AHL team, and the Rangers' top affiliate team.

The company has not set a timetable for completion of the process. Completion would require various conditions including league approvals, receipt of a tax opinion from counsel, and company board approval. MSG Sports stated there is no assurance the transaction will be completed as described or at all.

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