MSG Sports Approves Spinoff of Rangers Business From Knicks
By Kurt Badenhausen, Sports Valuations Reporter
The Knicks and Rangers will trade as individual stocks by the end of this month. Their combined revenue for the latest 12 months was $1.15 billion, with the Knicks more than twice the Rangers.
Key Takeaways:
- The board of Madison Square Garden Sports has approved the tax-free spinoff of the New York Rangers business from its New York Knicks business.
- The transaction is expected to be completed on October 26, with the teams trading on the New York Stock Exchange under MSGK (Knicks) and MSGR (Rangers) symbols.
- MSG Sports will be renamed MSG Knickerbockers, encompassing the NBA team and the G League’s Westchester Knicks.
- MSG Rangers will include the AHL’s Hartford Wolf Pack and the MSG Training Center.
- James Dolan will remain CEO and chairman of the new entity, MSG Knicks.
Background:
This move is the latest in a series of spinoffs by the Dolan family. Charles Dolan founded Cablevision, which acquired the Knicks, Rangers, and related businesses in 1994. In 2010, Madison Square Garden was spun off into its own publicly traded company. Subsequent splits have separated the sports teams and venues from MSG Network.
Market Value:
- The current enterprise value of MSG Sports is $11 billion, with the stock up 79% over the past year.
- Sportico’s NHL valuations place the Rangers at $4.15 billion, second in the league behind the Toronto Maple Leafs.
- Sportico’s NBA valuations rank the Knicks at $9.85 billion, though the Los Angeles Lakers are being sold for a higher valuation of $12.5 billion.
J.P. Morgan is serving as financial advisor on the spinoff, while Sullivan & Cromwell is providing legal counsel.