MSGS Stock Hits Record High As Board Backs Plan To Spin Off Knicks, Rangers Franchises

The company said its board unanimously approved a plan to explore a spin-off of its New York Knicks and New York Rangers businesses into two separately traded public companies.

• The New York Knicks company would include the NBA franchise and the Westchester Knicks.
• The New York Rangers company would include the NHL franchise and the Hartford Wolf Pack.
• The company did not provide a timeline for a final decision on the spinoff.

Shares of Madison Square Garden Sports Corp. (MSGS) surged to a record high in morning trade on Wednesday after the company said its board unanimously approved a plan to explore spinning off its New York Knicks and New York Rangers businesses into two separately traded public companies.

MSGS shares jumped over 15%, its biggest intra-day climb since September 2015.

Separation Of Basketball and Ice Hockey Businesses

The New York Knicks company would include the NBA franchise, which has won two championships, and the Westchester Knicks, a developmental league team affiliated with the National Basketball Association (NBA).

Meanwhile, the New York Rangers company would include the four-time Stanley Cup-winning National Hockey League (NHL) franchise and the Hartford Wolf Pack, a member of the primary developmental hockey league.

Madison Square Garden Sports said there is no assurance that the spin-off will proceed and did not provide a timeline for a final decision. However, if completed, the transaction is expected to be structured as a tax-free spin-off, with shareholders receiving a pro-rata distribution of shares in the newly created company.

“We are exploring the opportunity to further create value for our shareholders by separating our two professional sports franchises into distinct companies. We believe this proposed transaction would provide each company with enhanced strategic flexibility, its own defined business focus, and clear characteristics for investors,” said Jim Dolan, Executive Chairman and CEO.

Knicks More Than Twice As Valuable As Rangers

According to a Sportico report from October 2025, the New York Knicks are the third most valuable franchise in the NBA at $9.85 billion, behind the Golden State Warriors and the Los Angeles Lakers. Meanwhile, the New York Rangers were valued at $3.65 billion, the second most valuable franchise in the NHL.

Earlier this month, the company posted a 13% increase in second-quarter revenue at $403.4 million. The growth was driven largely by stronger ticket sales, increased league distributions, higher suite income, expanded sponsorship and signage deals, and higher food, beverage, and merchandise purchases. These gains were partly offset by a decline in local media rights fees.

How Did Stocktwits Users React?

Retail sentiment on Stocktwits changed to ‘bullish’ from ‘neutral’ a day earlier, amid ‘high’ message volumes.

One user highlighted that the spinoff could take a long time to happen.

Year-to-date, the stock has gained more than 32%.

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