Danny Wild-Imagn ImagesMadison Square Garden is continuing with its plans to split the Knicks and Rangers into different companies.
Madison Square Garden Sports Corp. filed a confidential initial Form 10 registration statement with the Securities and Exchange Commission for a proposed split of the two franchises into separate companies.
“The possible transaction would create two distinct publicly traded companies, enabling shareholders to more clearly evaluate each company’s assets and growth prospects, while providing both with enhanced strategic and financial flexibility,” MSG said in its press release.
“If MSG Sports 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.”
The confidential filing does not ensure the split is completed as of right now.
“Completion of the transaction would be subject to various conditions, including effectiveness of the Form 10 Registration Statement, any required league approval, receipt of a tax opinion from counsel and Company board approval,” per MSG’s statement.
If this transaction is completed, the Rangers organization would include the NHL team and the Hartford Wolf Pack of the AHL. The other created organization would include the Knicks, and the Westchester Knicks, its G-League affiliate.
Sportico values the Knicks at roughly $9.8 billion, third in the NBA, while the Rangers are valued at about $3.6 billion.