Best method to enter data when a company splits into two new entities MSGS to MSGK & MSGR

Question

Thanks so much in advance for any thoughts on an issue I cannot find having been previously addressed.

Later this month, Madison Square Garden Sports (MSGS) will be splitting into two new companies, Madison Square Garden Knicks (MSGK) and Madison Square Garden Rangers (MSGR).  I am assuming that each share of MSGS will become one share of MSGK and one share of MSGR.

I know how to enter data when there is a corporate spinoff, but this matter is a new one for me.

Would it make sense to enter two separate corporate spinoffs from MSGS and then somehow remove the MSGS shares?  A copout approach, I suppose, would be to report a sale of the MSGS shares, and purchase of the MSGK and MSGR shares.

Again, any suggestions would be much appreciated!

petergoode · Answer

My goodness, that was an incredibly performed deep dive into the logistics of the spinoff and best way to handle it with Quicken.  So, if I correctly understand your advice, which is of course greatly appreciated, I will enter a conventional spinoff from MSGS to MSGR, and rename MSGS as MSGK and change the security name and symbol accordingly.  I definitely hope my understanding of your methodology is correct!!

This is the first time I have owned a stock which split into two new entities…thanks so much for the guidance!

Tom Young · Answer

Seems like a fairly common "spin off" situation, followed by a name change and ticker symbol change by the original "parent" company:

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The Distribution will take the form of a distribution by the Registrant of (a) one share of MSGS Spinco’s Class A common stock, par value $0.01 per share (“MSGS Spinco Class A Common Stock”), for every two shares of the Registrant’s Class A common stock, par value $0.01 per share (“Registrant Class A Common Stock”), held of record at the close of business in New York City on October 20, 2026 (the “Record Date”), and (b) one share of MSGS Spinco’s Class B common stock, par value $0.01 per share, for every two shares of the Registrant’s Class B common stock, par value $0.01 per share (“Registrant Class B Common Stock”), held of record at the close of business in New York City on the Record Date. The Distribution will become effective and the new shares of MSGS Spinco will be distributed at 11:59 p.m., New York City time, on October 26, 2026 (the “Distribution date”). The completion of the Distribution is subject to, among other things, (i) the effectiveness of MSGS Spinco’s registration statement on Form 10 (the “Form 10”) filed with the Securities and Exchange Commission (the “SEC”) and final listing approval from the New York Stock Exchange (“NYSE”) with respect to MSGS Spinco Class A Common Stock, (ii) the making of the Contribution (defined below), (iii) final approval from the National Hockey League (the “NHL”), and (iv) receipt of a tax opinion from counsel to the Registrant. The Registrant’s Board of Directors has reserved the right to modify or abandon the Distribution at any time prior to the Distribution. The Registrant expects the conditions to the Distribution to be satisfied on or before the Distribution date.

The Form 10 contains information about MSGS Spinco and the Distribution. Prior to the Distribution, the Registrant will distribute to its stockholders of record on the Record Date copies of an information statement relating to MSGS Spinco that is part of the Form 10 filing.

Name Change

Concurrent with the Distribution, the Registrant will change its name to “MSG Knickerbockers Corp.” and MSGS Spinco will change its name to “MSG Rangers Corp.” On the first trading day following the Distribution date, the trading symbol for Registrant Class A Common Stock on the NYSE will change from “MSGS” to “MSGK” and the MSGS Spinco Class A Common Stock will trade on the NYSE under the symbol “MSGR”.

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I don't think you need to worry about the "spinco" name or designation, the spun-off entity is going to end up as "MSG Rangers Corp" with a ticker of MSGR so just go with that when you do the spin-off.

As to the old parent company's Ticker/Name change that can be handled immediately after the deal goes down by an income tax free "Corporate Acquisition (stock for stock)" action.