Does this mean there is change in ownership? Jim Dolan finally bought into the cap space theory. I hope the new guys give Donnie till 2010 to sign his stars!

I wonder if theres a leader in the clubhouse to buy the MSG portion? Whoever does will have some serious coin.

Maybe UK should get all the posters together and we can buy the Knicks lol too bad none of us are billionaires. It will be interesting to see what happens with this.

Bloomberg added some details:

Wire: BLOOMBERG News (BN) Date: 2009-05-07 14:05:59
Cablevision to Explore Madison Square Garden Spinoff (Update2)


(Adds analyst’s comment in fourth paragraph.)

By Kelly Riddell and Katie Hoffmann
May 7 (Bloomberg) -- Cablevision Systems Corp., the media
company controlled by the Dolan family, may spin off the Madison
Square Garden unit that runs the New York arena and the Knicks
basketball team, bowing to shareholder pressure.
The stock jumped 18 percent after Cablevision said its
board has authorized management to examine the move. The company
didn’t provide further details. Cablevision also posted first-
quarter profit that trailed analysts’ estimates.
The spinoff may value the unit at $3 billion and allow
Cablevision to focus on its more profitable cable-TV business,
said Chris Marangi, an analyst Gabelli & Co. Investors
criticized the company last year for spending earnings from its
New York-area cable service on media properties instead of
investing them back into its main business or returning money to
shreholders.
“It clears the way for consolidation of the pure cable
assets,” said Gabelli, who is based in Rye, New York.
The stock gain may be a signal investors’ appetite for new
assets is improving. As recently as November, Cablevision Chief
Executive Officer James Dolan said the company was focused on
operations, not strategic alternatives, as the economy slumps.
That was a reversal from August, when he said the company would
explore asset sales.
Cablevision climbed $3.22 to $21.55 in New York Stock
Exchange trading at 10:03 a.m. The stock had added 8.8 percent
this year before today.

Fewer Arena Events

The Madison Square Garden unit, whose sales climbed 2.3
percent last quarter, operates the arena next to New York’s Penn
Station, billed as “The World’s Most Famous Arena.” The
business also includes the Knicks, the Rangers hockey team, the
Radio City Music Hall and cable sports networks.
Cablevision and ITT Corp. bought Madison Square Garden from
Viacom Inc. for $1.08 billion in 1994. Less than three years
later, ITT sold its stake, along with stakes in the Knicks and
Rangers sports teams, to Cablevision for $650 million.
The business boosted sales to $271.3 million last quarter,
accounting for 14 percent of Cablevision’s total revenue. The
unit’s TV channels increased sales, while revenue from the
entertainment unit decreased because of fewer arena events. The
sports teams increased sales on ticket revenue. The unit’s
operating loss shrank to $2.2 million.
Net income amounted to $20.2 million, or 7 cents a share,
compared with a loss of $31.6 million, or 11 cents, a year
earlier, the Bethpage, New York-based company said. Excluding
some items, profit was 12 cents a share, compared with the 14-
cent average of estimates compiled by Bloomberg.

(Cablevision started a conference call at 10 a.m. New York
time to discuss results. To listen, go to
http://www.cablevision.com)

As I understand it, a spin-off doesn't necessarily mean the Dolan's will not own MSG... but, I imagine having the separate corporate structure in place would make it easier to make the sale once we sign Lebron and Wade (and the value of the franchise goes through the roof).

Posted by arkrud:

If Cablevision planning to put MSG/Knicks/Rangers on sale they will spend NO money on this for a year or so.
This brings back the following:
1. Why to pay-off Eddy? - New owner will pay in 2010-11.
2. No need to sign Lee/Nate - let them go.
3. No need to spend on MLE, etc. why bother?
4. No cash for future picks, signings, etc.

So be prepared for slooooooooooowwwwwwwwww year.

You increase the Knicks value exponentially though if it looks like there's a future.

2009 was going to be one of the worst years in franchise history anyway unless we really hit on our draft pick.

I think they'll just continue on the 2010 plan.

Posted by arkrud:

If Cablevision planning to put MSG/Knicks/Rangers on sale they will spend NO money on this for a year or so.
This brings back the following:
1. Why to pay-off Eddy? - New owner will pay in 2010-11.
2. No need to sign Lee/Nate - let them go.
3. No need to spend on MLE, etc. why bother?
4. No cash for future picks, signings, etc.

So be prepared for slooooooooooowwwwwwwwww year.

I just disagree. Without wondering whether they are really looking to sell, if there was an intent to sell the Knicks, its at that time when you want the business to look its best. For example, if you are selling your home, put a fresh coat of paint on it and sweep the floors. If you are about to sell your car, you don't drive it into a tree because you don't care...

Posted by Cosmic:

I doubt Dolan is selling but rather separating MSG from Cablevision so that anything bad on MSG's part does not show up on CV's reports.

As to MSG I think it was valued at 1.3B in 2006(?). It's MSG, the Knicks, Rangers, Ringling Bros Circus, Boxing at MSG, and any other annual event like Disney on Ice.

Dolan consolidated everything that happens at MSG into one conglomerate.

So it is one entity. Everything that happens under that roof is one big company that is sold as a whole....if it is sold.

It is an awfully big price tag for any prospective buyer and you know the Dolans will add a few hundred million to the price tag.

If you read my post above, the Gabelli guy valued the unit at $3 billion

Posted by EwingsGlass:

Posted by arkrud:

If Cablevision planning to put MSG/Knicks/Rangers on sale they will spend NO money on this for a year or so.
This brings back the following:
1. Why to pay-off Eddy? - New owner will pay in 2010-11.
2. No need to sign Lee/Nate - let them go.
3. No need to spend on MLE, etc. why bother?
4. No cash for future picks, signings, etc.

So be prepared for slooooooooooowwwwwwwwww year.

I just disagree. Without wondering whether they are really looking to sell, if there was an intent to sell the Knicks, its at that time when you want the business to look its best. For example, if you are selling your home, put a fresh coat of paint on it and sweep the floors. If you are about to sell your car, you don't drive it into a tree because you don't care...

What I did before selling my house is hired some contractor with bunch of Mexicans to fresh-paint some scratches on my walls and cover the rust on my water heater.
No one in clear mind will invest in something he wants to sell.
He will cut the cost to make it look more profitable and to make new owner think he can start from clean.