Bloomberg Business of Sports

Episode: Instant Reaction: MSG Sports Considering Spinning Off New York Knicks, Rangers
Date: February 18, 2026
Host(s): Michael Barr, Vanessa Perdomo, Damian Sassower
Featured Guest: Randall Williams, Bloomberg Sports Business Reporter

Overview

This episode dives into the breaking news that Madison Square Garden Sports (MSG Sports) is considering spinning off the iconic New York Knicks (NBA) and New York Rangers (NHL) franchises into a separate entity. The hosts and guest Randall Williams discuss the financial motivations, valuation of these teams, and the broader trends in sports franchise investment, including institutional involvement and media rights value. The conversation also touches on soaring ticket prices, sports journalism’s decline, and speculation about the value of other top franchises.

Key Discussion Points and Insights

1. MSG's Spin-Off Plans: Context and Motivation

• Proper Valuation as Key Driver

  • MSG Sports’ market cap is $7 billion, but combined estimates of the Knicks ($10B) and Rangers ($3–4B) suggest a far higher total asset value (13–14B) than the company’s trading value.

    “They want to get a proper valuation on these things. MSG as a company is valued at $7 billion...the Knicks and the Rangers combined are much larger than that.”
    — Randall Williams, 02:27

• Comparison to Other Franchise Market Values

  • Discussion around the Atlanta Braves and observed “discount to private market value” in publicly traded sports assets.
  • The Dolans (owners) appear to want to close the gap between trading and true asset value.

2. Valuations and the Financial Landscape

• Current Franchise Valuations

  • Knicks: ~$10B; Rangers: $3–4B
  • Championship wins could substantially boost value.
  • Other examples discussed: Seattle Seahawks expected sale valuation ($8–10B), Lakers ($10B+), Yankees (potentially $10B+).

• Rarity and Market Dynamics

  • Sports franchises are exceptionally scarce, especially in major markets like New York, driving intense valuation surges.

    “Anybody who wants to own a sports franchise, it’s almost a once in a lifetime opportunity... the Knicks, if they were for sale, would probably not be up for sale for another 50 years.”
    — Randall Williams, 03:50

3. Ticket Prices and Fan Experience

• Accessibility Concerns
  • Both hosts and Williams comment on the notion that spinning off teams will not result in cheaper tickets.

    “Sports are a luxury experience right now. Gone are the days where you could just be like, ‘oh, I want to go to a Knicks game’ and walk in—now you sort of have to plan for it.”
    — Randall Williams, 04:25

4. Investor and Private Equity Trends

• Pro Teams as an "Asset Class"

  • Growing trend of institutional investors viewing sports teams alongside stocks and bonds.

    “They now view it as an asset class, not as like a trophy property. It’s stocks, bonds, and sports teams.”
    — Sports Business Reporter, 04:32

  • Private equity (e.g. Silver Lake in MSG) becoming more prevalent across all leagues.

• Barriers to Entry

  • NFL requires 30% of purchase in cash; multi-billion-dollar check writing limits are shrinking the buyer pool.

    “It’s a lot of money to buy these sports franchises. The pool of people who can buy these teams is getting smaller.”
    — Randall Williams, 05:59

5. Media Rights, Growth, and the NFL as Juggernaut

• TV Audience Power

  • Super Bowl draws 125M viewers, even in defensive games—underscoring live sports’ unique pull for media deals.

• Continued Media Value Growth

  • Rising media rights fees help propel valuations ever higher for team owners.

6. Decline of Sports Journalism

• Washington Post Sports Desk Closure

  • Randall Williams and the hosts lament the closure, connecting it to wider changes in the sports media landscape.

    “To imagine the Washington Post without a sports desk is…your hero.”
    — Randall Williams, 08:25

• Shift to Digital and Subscriptions

  • Comparison to NYT’s acquisition of The Athletic as an alternative to retaining traditional sports writing talent.

• Loss of Legacy Storytelling

  • Hosts express nostalgia for legacy writers and in-depth sports journalism.

    “That’s what we’re losing, is people like Olney and, and others George Will’s, you know…”
    — Alexis Christopher, 08:59

7. Fun, Offbeat, and Memorable Moments

• Ticket prices joke:

  “Here we go.”
  — Alexis Christopher, with humor, 04:20

• Speculation on Yankees’ value:

  “The Yankees gotta be worth more than 10. The Lakers traded for 10 last year. I think the Yankees would go for something similar.”
  — Randall Williams, 10:16

• Legacy sports journalism references:

  • Hosts recall their journalistic heroes and classic articles as a nod to what’s being lost with newsroom cuts.

Notable Quotes

• On Asset Rarity:

  “Anybody who wants to own a sports franchise, it’s almost a once in a lifetime opportunity… the Knicks, if they were for sale, would probably not be up for sale for another 50 years.”
  — Randall Williams [03:50]

• On Private Equity in Sports:

  “Private equity is increasingly buying more stakes because they are seeing these media rights fees continue to rise. You're seeing sports franchise valuations continue to rise.”
  — Randall Williams [04:58]

• On Ticket Price Reality:

  “Sports are a luxury experience right now. Gone are the days where you can just be like, ‘oh, I want to go to a Knicks game’ and walk in—now you sort of have to plan for it.”
  — Randall Williams [04:25]

• On the Shrinking Buyer Pool:

  “It’s a lot of money to buy these sports franchises. The pool of, you know, people who can buy these teams is getting smaller.”
  — Randall Williams [05:59]

• On Sports Journalism Loss:

  “To imagine the Washington Post without a sports desk is…your hero.”
  — Randall Williams [08:25]

Segment Timestamps

• [02:11] – News of MSG’s potential Knicks/Rangers spin-off and underlying valuation rationale.
• [03:27] – Discussion of valuations, market scarcity, and hypothetical surge from championships.
• [04:32] – Institutional investors and private equity inflow into pro sports.
• [05:59] – How rising valuations and league rules create a higher barrier to team ownership.
• [07:32] – Impact of the Washington Post closing its sports desk; legacy of sports journalism.

Conclusion

The episode delivers timely analysis of MSG’s strategic considerations, placing the Knicks and Rangers within a broader context of financialization, market scarcity, and the surging power of media rights. With insight from Randall Williams, listeners come away understanding why sports franchises have become such hotly traded and increasingly inaccessible commodities—both for fans (rising ticket costs) and buyers (multi-billion price tags and cash requirements). The conversation’s latter half offers a sobering look at the decline of legacy sports journalism, underscoring generational changes across every facet of the business of sports.