MSG Sports Plans Oct. 26 Rangers Spin-Off and Separate Stock Trading

Madison Square Garden Sports Corp. plans to separate its New York Rangers and New York Knicks businesses on Oct. 26, giving shareholders stakes in two sports companies expected to trade separately.

Shareholders of record at the close of business on Oct. 20 are due one share in the Rangers company for every two MSG Sports shares of the corresponding class. The distribution is scheduled to take effect at 11:59 p.m. ET on Oct. 26 (3:59 a.m. UTC on Oct. 27).

The existing company will take the name MSG Knickerbockers Corp. and retain the New York Knicks and Westchester Knicks. The new company, MSG Rangers Corp., will hold the New York Rangers, Hartford Wolf Pack and MSG Training Center.

Their Class A shares are expected to begin regular trading on the New York Stock Exchange on Oct. 27, under MSGK for the Knicks company and MSGR for the Rangers company. Class B shares are not exchange-listed. When-issued trading in Rangers Class A shares is expected to begin Oct. 21 under MSGR WI, ahead of the planned distribution.

Holders who sell MSG Sports Class A shares in regular-way trading on or before Oct. 26 also transfer their right to the associated MSG Rangers Class A shares. The Oct. 20 record date therefore does not, by itself, preserve that right for someone who sells those shares before the distribution.

The separation still requires final league and exchange approvals, an effective registration statement and a tax opinion. MSG Sports’ board may change or abandon the distribution before it takes effect. If the remaining conditions are met, regular trading in the two companies’ Class A shares is expected to begin Oct. 27.