New York Knicks could be first publicly traded NBA team in 24 years
The New York Knicks could become the first NBA team in more than 20 years to be publicly traded under proposals being considered by their current owners.
New York Stock Exchange-traded Madison Square Garden Sports Corp currently holds both the Knicks and the NHL’s New York Rangers but could split them into two separate listed companies.
“We are exploring the opportunity to further create value for our shareholders by separating our two professional sports franchises into distinct companies,” chief executive officer of Madison Square Garden Sports Corp, Jim Dolan, said.
The New York Knicks NBA spin-off would include the affiliate Westchester Knicks team while the New York Rangers NHL firm would be wrapped in with the affiliate Hartford Wolf Pack.
There is no timetable for the move and there would be conditions on the proposition, but it would see the two franchises join Major League Baseball’s Atlanta Braves among the very few tradable US sports franchises.
New York Knicks on the stock market?
No NBA team has been individually listed since the Boston Celtics were taken back into private ownership in 2002.
The likes of Formula One Group and combat sport’s TKO Group Holdings can be traded, while football giants Manchester United and Juventus are also listed.
Added Dolan: “Both the Knicks and Rangers are premier teams in their respective leagues, with storied histories and large and passionate fan bases. We believe this proposed transaction would provide each company with enhanced strategic flexibility, its own defined business focus, and clear characteristics for investors.”
Turkish club Galatasaray’s shares rose on Wednesday morning – by nearly five per cent at one point – after the team’s 5-2 over Juventus in the Champions League play-off phase on Tuesday. Juventus’ shares fell slightly upon Wednesday opening following the loss.
If carried out, the transaction will reportedly be structured as a tax-free-spin-off to all shareholders.
Aside from industry valuations placed on both the New York Knicks and New York Rangers, it is hoped that new, separate companies will allow shareholders to assess assets of each spin-off more accurately.