New York Knicks Could Become First NBA Team in 20 Years to Be Publicly Traded

The New York Knicks are considering a move that could produce them the first NBA team in over two decades to be publicly traded. Proposals are currently under review by the team’s owners, Madison Square Garden Sports Corp (MSG Sports), to potentially separate the Knicks and the New York Rangers into two independent, publicly listed companies.

Knicks and Rangers: A Potential Split

MSG Sports CEO Jim Dolan announced the exploration of this opportunity, stating, “We are exploring the opportunity to further create value for our shareholders by separating our two professional sports franchises into distinct companies.”¹ The proposed spin-off would include the Knicks and their G League affiliate, the Westchester Knicks, while the Rangers would be paired with their AHL affiliate, the Hartford Wolf Pack.

Rare Territory for US Sports Franchises

If the separation occurs, the Knicks and Rangers would join a tiny group of publicly traded US sports franchises, notably Major League Baseball’s Atlanta Braves.¹ Publicly traded sports teams are relatively uncommon in the United States.

Following a Global Trend

This potential move aligns with a trend seen in international sports. Formula One Group, TKO Group Holdings (which includes UFC and WWE), and European football clubs like Manchester United and Juventus are already publicly traded.¹ The value of sports franchises has been highlighted recently, with Turkish club Galatasaray’s shares rising nearly five percent after a Champions League victory, while Juventus’ shares experienced a slight dip following a loss.¹

Financial Implications and Shareholder Value

The transaction is reportedly planned as a tax-free spin-off to existing shareholders.¹ The separation is intended to allow investors to more accurately assess the individual assets and performance of each franchise.¹ No timetable for the move has been established, and the proposal is subject to certain conditions.

Historical Context: NBA Teams and Public Ownership

The last NBA team to be individually listed was the Boston Celtics, which returned to private ownership in 2002.¹

¹Source: https://www.aol.com/news/2013-02-08-will-linkedin-continue-to-connect.html