MSG Sports Explores Tax-Free Spinoff to Separate Knicks and Rangers

Overview

• The board of Madison Square Garden Sports unanimously authorized a review of a potential spinoff that would create two separate publicly traded companies for the Knicks and the Rangers.
• Shares of MSG Sports rose more than 16% to a record close after the announcement.
• Under the proposed structure, the Knicks entity would include the Westchester Knicks and the Rangers entity would include the Hartford Wolf Pack.
• MSG Sports set no timetable and warned there is no assurance a deal will occur, with any transaction requiring NBA and NHL approvals and a tax opinion.
• The evaluation follows pressure from activist Boyar Value Group and broader concerns over a public‑private valuation gap, and analysts say a split could facilitate minority stake sales or other strategic transactions.