MSG Sports is splitting the Knicks and Rangers into two stocks, and history says spin-offs tend to beat IPOs
Source: Fortune ·
As the Knicks raise their first championship banner in 53 years, MSG Sports is spinning off the Rangers, giving investors a chance to own one team, both or neither.
From the source
Investors are watching how the New York Knicks perform today on two very different courts: the hardwood at Madison Square Garden, and the floor of the New York Stock Exchange farther downtown. The Knicks tip off their drought-ending NBA championship defense tonight against LeBron James, who makes his debut with his new team, the Philadelphia 76ers. Resale tickets have averaged about $2,600 apiece on SeatGeek as fans clamor to see the team raise its first championship banner in 53 years. (The Knicks beat the San Antonio Spurs in five games in June—a title run worth at least $380 million to New York City.) Meanwhile, the team’s parent company, Madison Square Garden Sports (NYSE: MSGS), is making its own spin move. It’s breaking up the title-winning franchise—at least as far as investors are concerned. MSG Sports is spinning off its New York Rangers hockey business from the Knicks. The Rangers are chasing an end to their own drought: The Broadway Blueshirts haven’t won the Stanley Cup…