Fans of the New York Knicks can now invest in their favorite team without also having to buy into the Rangers, and vice versa for Blueshirts supporters.
On Tuesday, the two franchises affiliated with Madison Square Garden officially separated into distinct publicly traded entities, allowing investors to choose between the teams.
The Knicks’ parent company now trades on the New York Stock Exchange under the ticker MSGK, while the Rangers’ stock is represented by the symbol MSGR.
James Dolan, who maintains control over both franchises, received a $10 million bonus for successfully managing the spinoff.
This one-time payment, which was approved on Friday and processed on Monday, recognized Dolan’s “significant efforts and leadership” in executing the separation, as noted in a securities filing.
The bonus was sanctioned by a compensation committee made up of three members with no connections to the Dolan family, according to the report.
The split aims to address a persistent valuation gap, which has sometimes meant that the combined company was valued at about 50% less than what the two franchises are reportedly worth in the private market, according to investment bank BTIG.
Forbes has estimated the Knicks’ value at an astounding $12.6 billion, while the Rangers are estimated at $4 billion, totaling $16.6 billion. However, these figures don’t necessarily represent what investors would be willing to pay for stock in these teams.
The Rangers brought in $337.3 million in revenue during the fiscal year ending June 30, but they also reported an adjusted operating loss of $18.9 million, based on securities filings.
In contrast, the Knicks’ remaining business segment was implied to have generated $816.6 million in revenue and $77.7 million in adjusted operating income, after excluding the Rangers’ results from the former parent company’s figures.
These numbers take into account the Westchester Knicks and various corporate items, in addition to the NBA team that recently clinched its first championship in over 50 years.
Holders of shares in the previous combined entity received one Rangers share for every two they owned.
Knicks shares closed Tuesday at $305.42, a drop of $78.97 (20.5%), as trading began without the Rangers integrated.
The Rangers’ independent shares finished at $177.61, down by $12.39 or 6.5%.
After the split, Dolan remains the executive chairman and CEO of both publicly traded companies, effectively keeping his leadership over the two franchises intact.
The Dolan family holds approximately 63.4% of the voting power in the newly formed Rangers company, according to filings, which allows them to elect up to 75% of the board.
This control is further supported by a dual-class stock structure that grants the family’s Class B shares ten votes each, while Class A shares available to regular investors only have one vote.
This arrangement may enable the Dolans to obstruct a sale even if shareholders outside the family support it.
The corporate separation won’t alter the location of either team.
Both the Knicks and Rangers will continue to play at Madison Square Garden, which is managed by MSG Entertainment, a distinct publicly traded entity.
As for their relationship with the arena, both teams remain linked to the operator through extended licensing and service agreements, with leases running until June 2055—essentially keeping both franchises financially interconnected with another Dolan-operated business.
When approached for a comment, an MSG spokesperson directed inquiries to the SEC filings.
