MSGS - Proposed Spin-Off of the Rangers from the Knicks Progressing, Initial Form 10 Filed; Expect Value Unlock to Continue

Research evidence excerpt

MSGS - Proposed Spin-Off of the Rangers from the Knicks Progressing, Initial Form 10 Filed; Expect Value Unlock to Continue

FLASH NOTE

May 18, 2026

Curry Baker curry.baker@guggenheimpartners.com MSGS - Proposed Spin-Off of the Rangers from the

804 253 8029 Knicks Progressing, Initial Form 10 Filed; Expect

Michael Morris, CFA

michael.morris@guggenheimpartners.com Value Unlock to Continue

804 253 8025

Charles Wilber Key Message: The Madison Square Garden Sports Company continues to make

charles.wilber@guggenheimpartners.com progress towards spinning-off the Rangers business from the Knicks (link). We continue 804 335 3977

to believe the spin-off will occur (likely end of this year or early next year), and serve

Grayson Glenn as a first step to unlock further value for both Knicksco and Rangersco which have

grayson.glenn@guggenheimpartners.com historically traded at significant discount to the intrinsic value of both franchises 804 253 8053 (based on comps, third-party valuations). The impetus for these actions appear to be

the OBBB which creates a large tax headwind starting in FY28 - essentially making it

extremely tax inefficient for any professional sports team to operate as a public company.

MSGS Wespin-off,continueincluding:to see 1)a numberthe Knicksof catalystscurrent playoffto unlockrun valuewhichatcouldMSGSnetasidethe franchisefrom the

Madison Square Garden Sports Corp. its third Championship title - last one was in 1973, 2) NBA expansion in Las Vegas

Sector: Media & Live Entertainment and Seattle (link - could yield $450mm-$700mm for the Knicks or ~$13- $20/share),

and 3) the NBA European expansion (link). Third-party valuations remain materially Company Update above where MSGS shares trade - NY Rangers (Sportico - $3.65bn, Forbes - $4.0bn)