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

The New York Knicks have become the first NBA team in nearly two decades to be traded publicly, marking a significant milestone for the franchise. Madison Square Garden Sports Corp., the owners of both the Knicks and the New York Rangers, initiated the process by creating two separate companies for each sports franchise. The New York Knicks, which recently won the NBA championship for the first time since 1999, are now valued at over $10 billion, although this figure could potentially increase.

MSGK, the ticker for the Knicks, opened publicly at $295.70 per share, while the MSGR shares for the Rangers initially fell to $184. Both companies had initially offered a discount to the estimated combined $18 billion valuation placed on the two teams.

James Dolan, the chief executive, received a one-time cash award of $10 million as recognition for his significant efforts and leadership. In a statement earlier this month, Dolan expressed his satisfaction with the decision, stating that "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."

This move could enable the Madison Square Garden group to capitalize on the surge of investor interest in sports, as valuations of US franchises are soaring year-on-year. For instance, football clubs across Europe have been holding or increasing their valuations, with notable examples including Liverpool, which was sold to a consortium, including Amazon founder Jeff Bezos, for $6 billion earlier in the summer.

The Knicks and Rangers join other high-profile sports teams like Manchester United and Juventus, which have also opted for public access to shares.