Shares of Madison Square Garden Sports climbed more than 16% on Wednesday, closing at $341.76 and marking a record intraday high for the company's stock. The advance followed the company's announcement that its board had approved a plan to explore a possible spinoff to separate the New York Knicks operations from the New York Rangers operations.
Under the contemplated structure, the company focused on the Knicks would encompass the National Basketball Association franchise and its NBA G League affiliate, the Westchester Knicks. The separate Rangers entity would include the National Hockey League team and its American Hockey League affiliate, the Hartford Wolf Pack.
Madison Square Garden Sports said the proposal received unanimous approval from its board and that the transaction is expected to be carried out as a tax-free spinoff for all shareholders. The company also made clear that no timetable has been established for completing the potential transaction.
Market analysts continue to follow the company closely. Among the eight analysts covering Madison Square Garden Sports, the consensus rating is "buy" and the median price target stands at $337, based on LSEG data.
In commentary cited by the company, BTIG analysts noted management's openness to strategic options after periods in which the company's equity has at times traded at a roughly 50% discount to independent private value estimates. The BTIG team, led by Tyler DiMatteo, said: "The single largest catalyst investors have been looking for is ways to unlock value from the teams whether that be minority sales, spin-offs, outright sales or some other means to close the public-private valuation gap." BTIG assigned a "neutral" rating to Madison Square Garden Sports.
The announcement and the board-approved study are material developments for investors tracking publicly traded sports franchises and for market participants focused on unlocking asset-level value in companies that combine major sports properties under a single corporate umbrella. While the board authorization signals formal consideration of separation, the absence of a schedule for a transaction means shareholders and analysts will need to wait for further corporate decisions and disclosure before any definitive steps are taken.