BREAKINGVIEWS-A Knicks-Rangers split appeals to true fans

Madison Square Garden Co. Class A -1.17% Post

Madison Square Garden Co. Class A

MSGS

330.88

330.88

-1.17%

0.00% Post

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

By Pranav Kiran

TORONTO, Feb 18 (Reuters Breakingviews) - The $8 bln owner of Manhattan’s basketball and hockey teams may spin them into separate listed companies. It could narrow a valuation gap. But it also leaves space for fans big and small to apply the financial illogic of trophy assets to the franchise of their choice.

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CONTEXT NEWS

Madison Square Garden Sports on February 18 said its board had approved a plan to explore a possible spinoff that would separate its New York Knicks and New York Rangers businesses, into two publicly traded companies. The New York Knicks company would also include the Westchester Knicks and the New York Rangers company would include the Hartford Wolf Pack teams.

The company said it expected a potential transaction to be structured as a tax-free spinoff for shareholders.

Shares of Madison Square Garden Sports were up 16% at 1032 ET.


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