標籤: divest

There is a possibility that Madison Square Garden Sports CEO James Dolan is taking steps to split the New York Knicks and Rangers, the city’s NBA and NHL teams, into two separate publicly traded companies.

Reports have emerged that MSG’s board of directors has approved a plan to “rediscover its hockey and basketball clubs” (via The New York Times).

If this occurs, the Knicks and their G League team, the Westchester Knicks, will become a separate company from the Rangers and their minor league team, the Hartford Wolf Pack, will similarly be spun off into a separate company.

Still, nothing is “guaranteed to happen” and “there is no timeline in mind to complete this move.” Therefore, fans will have to keep an eye on the situation.

“We are exploring the opportunity to create value for our shareholders by separating our two professional sports franchises into separate companies,” Dolan said in a statement, via The New York Times. “Both the Knicks and Rangers are dominant teams in their respective leagues, with storied histories and large and passionate fan bases.

He further added, “We believe this proposed transaction will provide each company with greater strategic flexibility, its own defined business focus and clearer attributes for investors.”

Will James Dolan and Madison Square Garden split the Knicks and Rangers?

While Madison Square Garden’s board approved the plan, there were other factors involved. Both the NBA and NHL would have to approve the move. The New York Times also notes that “There are other views.”

Regarding the reason for this, some are speculating that such a move would make it “easier” for Dolan to sell one of the franchises. In 1994 the Dolan family became minority owners of the franchise. Shortly thereafter, he became the majority owner.

Dolan is adamant that he has no interest in selling teams. However, he and MSG executives have stated their interest in selling a minority stake.

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 currently publicly traded.