The New York Rangers' 2025-26 season hasn't gone to plan, as it was supposed to be a joyous celebration of their 100th anniversary, and today's breaking news is something that could drastically shape the next century of Blueshirts hockey.
Madison Square Garden Sports board unanimously approves plan to explore Rangers-Knicks spin off
Business Wire has reported that Madison Square Garden Sports Corp. (MSG Sports) has announced that the board of directors unanimously approved a plan to explore a move that would uncouple the Rangers and New York Knicks, with the end stage being both teams operating as their own distinct publicly traded companies.
The move is described as something that would create shareholder value, and also allow each company to have an enhanced strategic and financial flexibility. Here's what James Dolan had to say about the plan.
“We are exploring the opportunity to further create value for our shareholders by separating our two professional sports franchises into distinct companies,” said Jim Dolan, Executive Chairman and Chief Executive Officer. “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.”
What does this mean for the Rangers?
The key takeaway from this is that such a move separating the two franchises is an opportunity for massive amounts of revenue to be generated. Both have very passionate fanbases that love the team, and having an ownership stake, no matter how small, is something that would be very appealing. It would also be pretty rate, as such a thing isn't something you see. The Atlanta Braves are a team that is publicly traded, Manchester United is listed on the New York Stock Exchange, and then you have companies like Rogers which own the Toronto Blue Jays and have a stake in Maple Leaf Sports & Entertainment which runs the Toronto Maple Leafs and Toronto Raptors.
It would also represent a change in terms of accountability, something very relevant for both franchises involved. It remains to be seen how things would shake out, but if the teams were publicly owned and the stock price was somewhat tied to performance, I don't think key executives would not have as long a leash as they have previously. This isn't to say that the fans and stockholders are going to run things, but it adds a new element that hasn't previously been there. With things private, Dolan and those he has beneath him in charge have final say. Under this change, there'd be more voices in the room.
I think it is notable that under this proposed agreement Madison Square Garden, the building, would remain under MSG Sports. Who is to say that if this exercise proves to be lucrative for both new companies that Dolan wouldn't take that opportunity to cash out and sell his majority stake in both teams for a massive payday while still being involved in MSG Sports, The Sphere, and other assorted properties? Being a glorified landlord would still remain pretty lucrative, especially as long as MSG's tax exemption remains in effect.
In October it was reported that the Rangers were worth $3.65 billion, and it would be interesting to see what that number would become if the valuation solely was on the team, players, and organization sans the arena and practice facility in Westchester. The Knicks are valued closer to $10 billion, and given their history and prestige it is easy to see this opportunity helping them increase their value in future years.
We will have to wait to learn more, but something is certainly up. You don't explore splitting teams into two companies for no reason, and I think this could be the beginning of changes to come in the New York City sports landscape.