There is a chance that Madison Square Garden Sports CEO James Dolan might be making moves to split up the New York Knicks and Rangers, the city's NBA and NHL teams, into two separately publicly traded companies.
Reports have surfaced that MSG's board of directors approved a plan to “explore spinning off its hockey and basketball clubs” (via The New York Times).
If it goes through, the Knicks and their G League team, the Westchester Knicks, would become a separate company from the Rangers and their minor league team, the Hartford Wolf Pack, would similarly split off into a different company.
Still, nothing is “guaranteed to happen,” and there is “no timeline in mind to complete the move.” So, fans will have to keep an eye on the situation.
“We are exploring the opportunity to further create value for our shareholders by separating our two professional sports franchises into distinct companies,” Dolan said in a statement, via The New York Times. “Both the Knicks and Rangers are premier teams in their respective leagues, with storied histories and large and passionate fan bases.
“We believe this proposed transaction would provide each company with enhanced strategic flexibility, its own defined business focus, and clear characteristics for investors,” he continued.
Will James Dolan and Madison Square Garden split the Knicks and Rangers?
While Madison Square Garden's board approved the plan, there are other factors at play. The NBA and NHL both have to approve the move. The New York Times also notes that there are “other considerations.”
As for the why, some are speculating that such a move would make it “easier” for Dolan to sell one of the franchises. The Dolan family became minority owners of the franchises in 1994. Shortly after, they became majority owners.
Dolan has been adamant that he's not interested in selling the teams. However, he and MSG executives have stated their interest in selling minority stakes.
Another possible reason for the move, as The New York Times notes, is that it could serve as a “precursor” to making the Knicks and Rangers privately traded teams. They are both publicly traded at the moment.
