Madison Square Garden may sell off the New York Knicks and New York Rangers by way of a tax-free distribution to shareholders.

MSG stock increased upon the announcement.

The Knicks are believed to be worth an estimated $3.6 billion.

"We believe this proposed transaction would provide each company with enhanced strategic flexibility, its own defined business focus and clear investment characteristics,” said James Dolan.

Dolan has interest in building MSG Sphere, which are planned entertainment venues in Las Vegas and London. Those venues could cost $1 billion each.

Dolan reportedly has increased his interest in the entertainment business while lessening his sports franchises. 

Other notable publicly traded sports franchises are the premier league's Manchester United, controlled by the Glazer family, and the Green Bay Packers.