In a move that could reshape the financial landscape of professional sports, Madison Square Garden Sports Corp. (MSG Sports) announced on February 18, 2026, that its board of directors has unanimously approved a plan to explore a possible spin-off of its two premier franchises into separate publicly traded companies.
If the proposal moves forward, the New York Knicks and New York Rangers would operate as distinct entities, providing investors with a direct way to value the NBA and NHL teams independently.
The Proposed Structure
The separation would split the current MSG Sports portfolio into two specialized businesses:
- The New York Knicks Company: Would include the Knicks (NBA) and their G-League affiliate, the Westchester Knicks.
- The New York Rangers Company: Would include the Rangers (NHL) and their AHL affiliate, the Hartford Wolf Pack.
Both the NBA and NHL must approve the spin-offs before they can be finalized. Following the announcement, MSG Sports shares surged more than 16%, reflecting investor optimism.
Unlocking “Trapped” Value
The primary driver behind this move is the discrepancy between MSG Sports’ market capitalization and the estimated value of its individual assets. While MSG Sports’ enterprise value has hovered around US$7-8 billion, the individual valuations of the teams suggest much higher worth:
| Franchise | League | Forbes Valuation (2025/26) | League Rank |
| New York Knicks | NBA | US$9.75 Billion | 3rd Most Valuable |
| New York Rangers | NHL | US$4.00 Billion | 2nd Most Valuable |
“We are exploring the opportunity to further create value for our shareholders by separating our two professional sports franchises into distinct companies. Both the Knicks and Rangers are premier teams… this proposed transaction would provide each company with enhanced strategic flexibility.” — Jim Dolan, Executive Chairman and CEO.
Financial Context: Q2 2026 Results
The announcement follows a strong financial second quarter for the 2026 fiscal year:
- Revenues: US$403.4 million (up 13% year-over-year).
- Adjusted Operating Income: US$29.7 million.
- Fan Engagement: Combined season ticket renewal rates for both teams sat at approximately 94%.
- Media Rights: While national NBA rights are rising, local media rights fees saw a slight decrease due to amended agreements with MSG Networks.
A Legacy of Spin-offs
This proposal is the latest in a series of strategic separations led by Jim Dolan. Since 2020, he has uncoupled the sports franchises from the arena and entertainment divisions, and more recently, separated the Sphere in Las Vegas and MSG Networks into their own company.