Madison Square Garden Sports Corp. filed a “confidential” initial Form 10 registration statement with the U.S. Securities and Exchange Commission for a “proposed split” of the Knicks and the N.Y. Rangers into separate companies, according to Giles Turner of BLOOMBERG NEWS. The documents are “often used to kickstart regulatory review processes before corporate restructurings or spinoffs.” The MSG Sports board in February “approved a plan to explore creating two distinct publicly traded companies,” a move that could “give investors a clearer way to value each franchise.” Under the plan, the Knicks company would “include the New York Knicks and their NBA G League affiliate, the Westchester Knicks.” The Rangers company would “include the New York Rangers and the Hartford Wolf Pack,” their AHL affiliate. MSG Sports CEO James Dolan has “shown little interest in selling control of the Knicks.” But a separation could “give each company more flexibility to raise capital, sell minority interests or pursue strategic options without forcing investors to buy exposure to both franchises.” Silver Lake Management already owns a 10% stake in MSG Sports, and the Knicks have been “periodically discussed by bankers and investors as a potential target for global capital, including Middle Eastern money” (BLOOMBERG NEWS, 5/18).
