MSG Sports Explores Spin-Off of Knicks and Rangers
MSG Sports announced that its board of directors has unanimously approved a plan to explore a possible spin-off that would separate its New York Knicks business from its New York Rangers business, creating two distinct publicly traded companies. If the company proceeds with the spin-off transaction, it is expected to be structured as a tax-free spin-off to all company shareholders and upon completion of the contemplated separation, it is expected that record holders of company Class A and Class B common stock would receive a pro-rata distribution of 100% of the common stock in the newly created public company. "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." After the proposed spin-off, the New York Knicks company is expected to include the Knicks. Also included would be the Westchester Knicks, the exclusive NBA G League affiliate of the Knicks. The New York Rangers company is expected to include the Rangers. Also included would be the Hartford Wolf Pack, a minor-league hockey team in the AHL, and the top affiliate team for the Rangers. There can be no assurance that the possible transaction will be completed in the manner described above, or at all. The company has not set a timetable for completion of this process. Completion of the transaction would be subject to various conditions, including required league approvals, receipt of a tax opinion from counsel and Company board approval.
Trade with 70% Backtested Accuracy
Analyst Views on MSGS
About MSGS
About the author
MSG Sports Plans Spin-Off of Knicks and Rangers Franchises
- Stock Surge: Shares of Madison Square Garden Sports Corp. surged over 15% in morning trading after the announcement of plans to spin off the Knicks and Rangers, marking the largest intra-day gain since September 2015, indicating strong market enthusiasm for the initiative.
- Spin-Off Details: The proposed separation will encompass the NBA's Knicks and the developmental Westchester Knicks, along with the NHL's Rangers and Hartford Wolf Pack; while no timeline was provided for a final decision, the spin-off is expected to be structured as a tax-free transaction.
- Strong Financial Performance: MSG Sports reported a 13% increase in second-quarter revenue to $403.4 million, driven by higher ticket sales, sponsorships, and food and beverage income, showcasing robust performance in the sports market despite some declines in local media rights fees.
- Market Sentiment Shift: Retail sentiment on Stocktwits shifted from neutral to bullish, although some users cautioned that the spin-off could take considerable time, reflecting an optimistic outlook on MSG's future developments.
MSG Sports Considers Separating New York Knicks and Rangers
Investor Expectations: Investors are anticipating a shareholder-friendly action from Madison Square Garden Sports to address the disparity between the company's market value and the worth of its sports teams, the New York Knicks and New York Rangers.
Market Value Concerns: There is a significant gap between the market value of Madison Square Garden Sports and the estimated value of its two major sports franchises, raising concerns among investors.
MADISON SQUARE GARDEN SPORTS STOCK RISES 12% FOLLOWING COUNCIL'S APPROVAL OF SPIN-OFF EXPLORATION PLAN
- Stock Performance: Madison Square Garden Sports shares increased by 12% following the approval of a plan to explore potential spin-off opportunities.
- Strategic Move: The decision to consider a spin-off indicates a strategic shift aimed at enhancing shareholder value and operational focus.
Wall Street's Top Entertainment Stocks to Buy
- Price Target Increase: Citi analyst Jason Bazinet raised Madison Square Garden Sports Corp.'s price target from $290 to $337 while maintaining a Buy rating, indicating the company's openness to a potential minority stake sale, which could help narrow the valuation gap with private market benchmarks.
- Strong Financial Performance: Madison Square Garden Sports reported Q2 revenue of $403.42 million on February 5, 2026, exceeding the consensus estimate of $394.57 million, showcasing positive momentum across all in-game revenue categories and reflecting strong consumer and corporate demand that supports long-term value creation.
- Balanced Market Risk: Morgan Stanley analyst Benjamin Swinburne increased his price target from $220 to $295 while keeping an Equal Weight rating, noting that Q2 results were in line with expectations and per-game spending remained strong, suggesting a balanced risk/reward profile after a more than 35% rally in shares over the past six months.
- Attractive Rating Upgrade: JPMorgan analyst David Karnovsky raised his price target from $240 to $305 and maintained an Overweight rating, stating that the stock's risk/reward appears attractive following the fiscal Q2 report, indicating strong market confidence in the company.
Sphere Arena's Triumph Brings Joy to CEO James Dolan
Success of The Sphere: The Sphere arena in Las Vegas has proven to be a successful venture, benefiting investors significantly.
CEO's Vision: CEO James Dolan played a crucial role in the arena's conception, design, and construction, demonstrating his commitment by monitoring the project remotely.
Reinhart Partners Acquires Shares in Madison Square Garden Sports Corp.
- New Investment Disclosure: On February 10, 2026, Reinhart Partners disclosed a new position by acquiring 214,891 shares of Madison Square Garden Sports Corp., valued at approximately $55.59 million, indicating confidence in the company's future prospects.
- Ownership Proportion Analysis: This acquisition represents 1.66% of Reinhart's reportable assets under management in its 13F filing, reflecting a strategic positioning in the sports investment sector.
- Strong Market Performance: As of February 10, 2026, MSGS shares were priced at $279.76, marking a 34.3% increase over the past year, outperforming the S&P 500 by 19.92 percentage points, showcasing robust market demand and investor confidence.
- Profitability Challenges: Despite MSGS's stock price rising 63% over the past five years, it reported a net loss of $16.56 million in the last 12 months, prompting investors to consider the implications of its profitability on future stock performance.
MSG Sports Plans Spin-Off of Knicks and Rangers Franchises
- Stock Surge: Shares of Madison Square Garden Sports Corp. surged over 15% in morning trading after the announcement of plans to spin off the Knicks and Rangers, marking the largest intra-day gain since September 2015, indicating strong market enthusiasm for the initiative.
- Spin-Off Details: The proposed separation will encompass the NBA's Knicks and the developmental Westchester Knicks, along with the NHL's Rangers and Hartford Wolf Pack; while no timeline was provided for a final decision, the spin-off is expected to be structured as a tax-free transaction.
- Strong Financial Performance: MSG Sports reported a 13% increase in second-quarter revenue to $403.4 million, driven by higher ticket sales, sponsorships, and food and beverage income, showcasing robust performance in the sports market despite some declines in local media rights fees.
- Market Sentiment Shift: Retail sentiment on Stocktwits shifted from neutral to bullish, although some users cautioned that the spin-off could take considerable time, reflecting an optimistic outlook on MSG's future developments.
MSG Sports Considers Separating New York Knicks and Rangers
Investor Expectations: Investors are anticipating a shareholder-friendly action from Madison Square Garden Sports to address the disparity between the company's market value and the worth of its sports teams, the New York Knicks and New York Rangers.
Market Value Concerns: There is a significant gap between the market value of Madison Square Garden Sports and the estimated value of its two major sports franchises, raising concerns among investors.
MADISON SQUARE GARDEN SPORTS STOCK RISES 12% FOLLOWING COUNCIL'S APPROVAL OF SPIN-OFF EXPLORATION PLAN
- Stock Performance: Madison Square Garden Sports shares increased by 12% following the approval of a plan to explore potential spin-off opportunities.
- Strategic Move: The decision to consider a spin-off indicates a strategic shift aimed at enhancing shareholder value and operational focus.
Wall Street's Top Entertainment Stocks to Buy
- Price Target Increase: Citi analyst Jason Bazinet raised Madison Square Garden Sports Corp.'s price target from $290 to $337 while maintaining a Buy rating, indicating the company's openness to a potential minority stake sale, which could help narrow the valuation gap with private market benchmarks.
- Strong Financial Performance: Madison Square Garden Sports reported Q2 revenue of $403.42 million on February 5, 2026, exceeding the consensus estimate of $394.57 million, showcasing positive momentum across all in-game revenue categories and reflecting strong consumer and corporate demand that supports long-term value creation.
- Balanced Market Risk: Morgan Stanley analyst Benjamin Swinburne increased his price target from $220 to $295 while keeping an Equal Weight rating, noting that Q2 results were in line with expectations and per-game spending remained strong, suggesting a balanced risk/reward profile after a more than 35% rally in shares over the past six months.
- Attractive Rating Upgrade: JPMorgan analyst David Karnovsky raised his price target from $240 to $305 and maintained an Overweight rating, stating that the stock's risk/reward appears attractive following the fiscal Q2 report, indicating strong market confidence in the company.
Sphere Arena's Triumph Brings Joy to CEO James Dolan
Success of The Sphere: The Sphere arena in Las Vegas has proven to be a successful venture, benefiting investors significantly.
CEO's Vision: CEO James Dolan played a crucial role in the arena's conception, design, and construction, demonstrating his commitment by monitoring the project remotely.
Reinhart Partners Acquires Shares in Madison Square Garden Sports Corp.
- New Investment Disclosure: On February 10, 2026, Reinhart Partners disclosed a new position by acquiring 214,891 shares of Madison Square Garden Sports Corp., valued at approximately $55.59 million, indicating confidence in the company's future prospects.
- Ownership Proportion Analysis: This acquisition represents 1.66% of Reinhart's reportable assets under management in its 13F filing, reflecting a strategic positioning in the sports investment sector.
- Strong Market Performance: As of February 10, 2026, MSGS shares were priced at $279.76, marking a 34.3% increase over the past year, outperforming the S&P 500 by 19.92 percentage points, showcasing robust market demand and investor confidence.
- Profitability Challenges: Despite MSGS's stock price rising 63% over the past five years, it reported a net loss of $16.56 million in the last 12 months, prompting investors to consider the implications of its profitability on future stock performance.
