James Dolan reveals plan for MSG to eventually split Knicks, Rangers

There is a chance that Madison Square Garden Sports CEO James Dolan he may be making moves to separate New York Knicks and Rangersthe city’s NBA and NHL teams, into two separate publicly traded companies.

There have been reports that MSG the board of directors approved the 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 spin off into another company.

Still, nothing is “guaranteed to happen” and there is “no time frame in mind for the move to be completed.” 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 separate companies,” Dolan said in a statement via the New York Times. “Both the Knicks and Rangers are top teams in their respective leagues, with storied stories and large and passionate fan bases.”

“We believe this proposed transaction would provide each company with greater strategic flexibility, its own defined business focus and clear features for investors,” he continued.

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

While the Madison Square Garden board approved the plan, there are other factors at play. Both the NBA and NHL must approve the move. The New York Times also notes that there are “other considerations.”

As for why, some speculate 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 thereafter, they became majority owners.

Dolan was adamant that he was not interested in selling the teams. However, he and MSG executives have said they are interested 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 turning the Knicks and Rangers into private teams. Both are currently publicly traded.