00:00Madison Square Garden Sports contemplating spinning off the Knicks and the Rangers business.
00:05Why would they do that? Why are they even considering it?
00:07What they said in a press release was that they wanted to get a proper valuation on both of these
00:11assets.
00:11Madison Square Garden Sports is valued at $7 billion on the open market,
00:15but the Knicks and the Rangers have to be at least twice that.
00:18If they were to be sold tomorrow, I think the Knicks would probably trade for over $10 billion.
00:22I think the Rangers probably closer to four.
00:24These are New York sports teams that play in arguably the most famous arena in the entire world.
00:28It's hard to believe that $7 billion would be the number, especially when the Lakers just traded at $10.
00:32It's a very good point. Can you explain, just on that note, the business of MSG?
00:37I feel like it's a complicated beast, and it's already gone through a lot of transformations before, right?
00:41Well, listen, how long do we have?
00:42Can you do that in 30 seconds?
00:44I think, look, MSG Sports is comprised of now the Knicks and the Rangers.
00:48They're going to split. Outside of that, you have MSG, the building.
00:51You have Sphere Corp, which is outside of MSG altogether.
00:53There are a dozen, it feels like a dozen different departments and sectors of MSG sports.
00:58The Knicks and the Rangers will now be two different ones.
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