MSG Knickerbockers completes Rangers spin-off into MSGR

MSG Knickerbockers Corp. (MSGS) completed the spin-off of its New York Rangers hockey business on Oct. 26, when it distributed all outstanding shares of MSG Rangers Corp. to its stockholders, a regulatory filing showed.

Holders received one MSG Rangers Class A share for every two Class A shares held at the close of business on Oct. 20, and one Class B share for every two Class B shares. MSG Rangers now trades on the New York Stock Exchange under the symbol MSGR, the company said in the filing.

The company no longer consolidates the Rangers business for its own financial reporting. Its historical results will appear as discontinued operations for all periods through the distribution date, beginning with the quarter ended Dec. 31, 2026.

Unaudited pro forma figures for fiscal 2026 show revenue of $816.6 million for continuing operations, compared with $1.15 billion on a historical basis. The Rangers business accounted for $337.3 million of revenue in that year, according to the filing.

The company also changed its name from Madison Square Garden Sports Corp. to MSG Knickerbockers Corp., effective 11:59 p.m. on Oct. 26, after filing a certificate of amendment with the Nevada Secretary of State.

On Oct. 23, the company, MSG Rangers and certain of their subsidiaries entered into a transfer consent agreement with the National Hockey League. Future transfers of ownership of the New York Rangers, the team's location, and certain other asset or ownership transfers, subject to exceptions, will require NHL consent. The parties also released the NHL entities from claims against them.

The company amended employment agreements with Chairman and Chief Executive Officer James L. Dolan, Executive Vice President David Granville-Smith, Executive Vice President, Chief Financial Officer and Treasurer Paul DiCicco, and Executive Vice President and Chief Legal Officer Jamaal T. Lesane. Each amendment acknowledges that the executive will also be employed by MSG Rangers. Dolan's annual base salary will be not less than $1,016,000, and the aggregate target value of his annual long-term awards falls to $4,953,000.

The Compensation Committee approved a one-time cash award of $10 million to Dolan on Oct. 23, in recognition of his efforts in connection with the distribution. The award was paid on Oct. 26, less taxes and withholdings.

The pro forma notes show $3.8 million of transaction costs tied to the distribution in fiscal 2026, primarily accounting, legal and financial advisory fees. The filing does not give guidance for either company.