Knicks trade publicly as MSG chief Dolan nets $10m pay-out

The New York Knicks became the first NBA team in nearly two decades to be traded publicly on Tuesday after a spin-out by owners Madison Square Garden Sports Corp.

The Big Apple firm created two companies for its two sports franchises – the New York Knicks and the New York Rangers ice hockey team – which began trading on Tuesday under respective MSGK and MSGR tickets.

MSGK opened up and reached $295.70 per share, while the MSGR shares initially fell on Tuesday to $184. Both had offered a discount to the estimated combined $18bn valuation placed on the Rangers and Knicks. 

The basketball team, which won the NBA championship this year for the first time since 1999, is valued at over $10bn, though that could rise given the LA Lakers were sold for $12bn this summer.

The filing, issued this week, states that chief executive James Dolan received a one-time cash award of $10m “in recognition of his significant efforts and leadership”.

Knicks on the market

“With our board’s approval we are now one step closer to our goal of separating our Knicks and Rangers businesses into two distinct public companies,” Dolan said earlier this month. “Both teams have storied histories and large and passionate fan bases, and we believe each company will be well-positioned to generate long-term value for shareholders.”

The move could see the Madison Square Garden group cash in on the surge of investor interest across sport.

Valuations of US franchises are soaring year-on-year while football clubs across Europe are holding or increasing valuations, albeit often at a lower level than North American teams.

A significant minority stake in Liverpool was sold to a consortium which includes Amazon founder Jeff Bezos over the summer in a deal that valued the Premier League club at $6bn.

The New York Knicks and New York Rangers join the likes of Manchester United and Juventus in offering public access to shares.