Madison Square Garden Sports Corp. (NYSE:MSGS) filed a confidential initial Form 10 Registration Statement with the SEC on Monday, advancing plans to separate its New York Rangers and New York Knicks businesses into two publicly traded companies.
Shares trade at $351.54, near their 52-week high, with a market cap of $8.46 billion. The proposed transaction would split the NBA and NHL franchises into distinct entities.
The Knicks company would include the NBA team, its G League affiliate Westchester Knicks, and related assets. The Rangers company would include the NHL franchise, the Hartford Wolf Pack AHL team, and related assets.
Investor sentiment appears positive, with the stock returning 78% over the past year and 64% in the last six months. According to Bond.az data, three analysts have revised their earnings estimates upward for the upcoming period.
If completed, the spin-off would be structured as a tax-free distribution. Holders of Class A and Class B common stock would receive a pro-rata distribution of 100% of the common stock in the new public company.
The company stated the separation would enable shareholders to evaluate each franchise's assets and growth prospects separately. Completion is subject to conditions including the effectiveness of the Form 10, required league approvals, a tax opinion, and board approval.
The Knicks have won two NBA Championships, while the Rangers have won four Stanley Cup Championships.
