Knicks Facing Big Transaction Decision During NBA Season

At the world's most famous arena, MSG Sports Corp. is set to make a move that could change the game for two of New York’s biggest franchises. The board of directors has officially approved a plan to explore a spin-off, separating the New York Knicks and the New York Rangers into two distinct, publicly traded companies.

James Dolan, the executive chairman and CEO (who previously oversaw the 2020 separation from MSG Entertainment), is calling the shots on this play. During the announcement, Dolan made the stakes clear.

“We are exploring the opportunity to further create value for our shareholders by separating our two professional sports franchises into distinct companies,” Dolan said, per Business Wire. He emphasized that both the Knicks and the Rangers are "premier teams" with "storied histories" and "large and passionate fan bases."

Under this new structure, the Knicks company would command the primary NBA team and its G League affiliate, the Westchester Knicks. Meanwhile, the Rangers company would hold the "Original Six" NHL franchise and the Hartford Wolf Pack of the AHL. This isn’t just a paperwork shuffle; it’s a move to shed the ‘Dolan discount’ that analysts say has held the teams back.

According to Barron’s, this separation could be a heavyweight move, potentially unlocking over $14 billion in combined market valuation.

“This proposed transaction would provide each company with enhanced strategic flexibility, its own defined business focus, and clear characteristics for investors,” Dolan added.