MSG Sports Approves Spin-Off of Knicks, Rangers Into Two Public Companies

Madison Square Garden Sports Corp. said its board approved separating the New York Knicks and New York Rangers into two independent publicly traded companies, with the transaction expected to close on Oct. 26. MSG Sports will be renamed MSG Knickerbockers Corp., housing the NBA's Knicks and Westchester Knicks. A new entity, MSG Rangers Corp., will hold the NHL's Rangers, the Hartford Wolf Pack and the MSG Training Center in Greenburgh, New York. Executive Chairman and CEO James L. Dolan will hold the same roles at both companies. Stockholders of record as of Oct. 20 will receive one share of MSG Rangers Class A or Class B common stock for every two shares of MSG Sports Class A or Class B held. MSG Sports will trade on the NYSE under "MSGS" and "MSGK WI" starting Oct. 21, with MSGR WI trading when-issued. Regular-way trading begins Oct. 27 under "MSGK" and "MSGR." The spin-off is structured to be tax-free. Completion remains subject to a Form 10 registration statement, final league approval and a tax opinion. J.P. Morgan is financial advisor; Sullivan & Cromwell LLP is legal advisor.