Madison Square Garden Sports’ board has approved the spin-off of its New York Rangers business from its New York Knicks business, with completion targeted for October 26, 2026.
Following the transaction, MSG Sports will be renamed MSG Knickerbockers Corp. and will own the New York Knicks and Westchester Knicks.
A newly created MSG Rangers Corp. will own the New York Rangers, Hartford Wolf Pack and MSG Training Center.
James L. Dolan will serve as Executive Chairman and CEO of MSG Rangers while continuing as Executive Chairman and CEO of MSG Knicks.
MSG Sports shareholders of record at the close of business on October 20 will receive one share of MSG Rangers Class A or Class B common stock for every two MSG Sports Class A or Class B shares they own, respectively.
The distribution will represent all outstanding MSG Rangers shares and will not require any payment or action from eligible MSG Sports shareholders.
Beginning October 21, MSG Sports expects its stock to trade in both a regular-way market under the MSGS symbol and an ex-distribution market under MSGK WI.
MSG Rangers Class A common stock is expected to begin trading on a when-issued basis under MSGR WI on October 21.
Regular-way trading is expected to begin October 27, with MSG Knicks trading under MSGK and MSG Rangers trading under MSGR.
The transaction is intended to qualify as a tax-free distribution for U.S. federal income tax purposes.
Completion remains subject to the effectiveness of the Form 10 registration statement, final league approval, receipt of a tax opinion and other customary conditions.
J.P. Morgan is serving as financial adviser, while Sullivan & Cromwell is serving as legal adviser.
KEY QUOTES:
“With our board’s approval we are now one step closer to our goal of separating our Knicks and Rangers businesses into two distinct public companies. Both teams have storied histories and large and passionate fan bases, and we believe each company will be well-positioned to generate long-term value for shareholders.”
James L. Dolan, Executive Chairman and CEO of Madison Square Garden Sports
