The Madison Square Garden Company is exploring a possible spin-off that would create a separately traded public company made up of its sports franchises, including the Knicks and Rangers.

The other half of the company would be comprised of a live entertainment business that includes venues, MSG and its Hulu theater, Radio City Music Hall, Beacon Theater, The Forum in Inglewood, Calif., The Chicago Theater and the Wang Theatre in Boston.

“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, who is expected to be the executive chairman and chief executive officer of both companies.