Madison Square Garden Sports' board of directors has approved a plan to explore separating the New York Knicks and Rangers into distinct publicly traded companies, the parent organization announced Wednesday. The proposal would divide the two franchises along with their respective minor league affiliates.

Under the proposed structure, the Knicks and their G League team, the Westchester Knicks, would form one entity while the Rangers and their AHL affiliate, the Hartford Wolf Pack, would constitute another. MSG Sports emphasized no timeline exists for completion and the transaction is not guaranteed.

The move requires approval from both the NBA and NHL, among other considerations.

"We are exploring the opportunity to further create value for our shareholders by separating our two professional sports franchises into distinct companies," MSG Sports CEO James Dolan said in a statement. "Both the Knicks and Rangers are premier teams in their respective leagues, with storied histories and large and passionate fan bases. We believe this proposed transaction would provide each company with enhanced strategic flexibility, its own defined business focus, and clear characteristics for investors."

The Dolan family acquired minority ownership of both franchises in 1994 before assuming majority control shortly thereafter.

Dolan has repeatedly stated he has no intention of selling either team outright. While Dolan and MSG executives have expressed openness to selling minority stakes, including during an earnings call this month, an MSG executive previously indicated no such deals were imminent.

The proposed separation would mark the latest in a series of financial restructurings by Dolan. He spun off his professional sports properties from Madison Square Garden arena and other entertainment assets in 2020, then divided his entertainment portfolio again in 2023, placing the Sphere and MSG Networks under Sphere Entertainment Co. while the arena and live entertainment operations became a separate publicly traded entity.

Brandon Ross of Lightshed Partners suggested the move could precede MSG taking the currently public teams private.