There is another major development that could lead to an eventual sale of the New York Rangers. The path may take a while, but the next step in the process was announced late last week.
In May, news hit that Madison Square Garden Sports (MSGS) had filed with the Securities and Exchange Commission (SEC) to split up its operations so that the New York Knicks and the Rangers could become separate entities. This came after a February announcement that the board of directors unanimously approved a plan exploring a split. It was recently reported that should be finalized in October.
This shouldn’t surprise anyone as it comes following a wave of sales in the NBA. It comes on the heels of one of the biggest transactions in NBA history, with the $12.5 billion sale of the Los Angeles Lakers just a year after they were sold for $10 billion.
But that’s not the only reason why the Dolan family has moved to split up its interests. As Sportico reported, part of the motivation comes from the perceived undervaluation of both the Knicks and Rangers.
Sportico currently values the Knicks at $9.85 billion, with the Rangers at $3.65 billion, trailing only the Toronto Maple Leafs.
It should be noted that the plan is to increase the Knicks and Rangers’ valuations by moving them from private ownership, to two different companies that are publicly traded. For now, the Dolan family retains ownership of both clubs, but this move will allow the opportunity for new money to come in.
But that’s something that might change down the line.
Rangers could be up for sale at some point
It’s unlikely that the Dolan family will sell either the Knicks or Rangers completely. If it does, it would be minority stakes in the franchise. And as Sportico noted, this situation could become a real possibility.
“Sportico recently spoke with multiple investors who think Dolan could move beyond just an LP stake deal and sell one of the teams outright. Someone familiar with the spinoff details pushed back on the premise of a control sale of either team.”
So, why would the Dolan family be willing to relinquish control even of a portion of each team? The answer lies in raising capital.
With the Rangers tied to the Knicks and Madison Square Garden the arena, it is hard for any one of the entities to increase value by itself. By splitting the Rangers and Knicks up, Dolan will get a truer current value for each organization, and both can then continue to grow in value from there as public money comes in. We've seen this with the Atlanta Braves and Manchester United as two teams that are listed publicly.
When Could Rangers Be Sold?
As for when a sale could happen, that’s not something happen now. The Dolan family is likely more concerned about the Knicks than it is the Rangers. But it wouldn’t be surprising to hear about potential investors stepping up to ask about the Rangers.
So, why would the Rangers be up for sale? It’s likely a question of raising capital to invest in the team. It won’t likely mean money spent on players. It’s capital going towards building other parts of the team. That could mean infrastructure such as practice facilities, TV deals, and other off-the-ice matters.
The Rangers could end up being just the latest franchise to change hands. The Fenway Sports Group, which bought the Pittsburgh Penguins for $900 million in 2021, just sold them to the Hoffman family for $1.7 billion in June.
So, it remains to be seen if there will be other teams around the league potentially changing hands.
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