Reply To: Traders Market Weekly: Expect the Unexpected

#45391
Truman
Participant

Barron’s mentions:

Professional sports teams are worth more than ever, but one of the few public plays on the sector is languishing at a big discount to the value of its teams.

It’s time to buy Madison Square Garden Sports stock. Madison Square Garden Sports (NYSE:MSGS) is highlighted as an attractive pick. The math could be pretty simple with the value of the New York Knicks ($5.8B) and New York Rangers $2.0B) sitting at well over the $3.6B market cap of the stock and enterprise value of $3.8B, less than half the estimated value of those teams.

The bullish take on the stock is that it is a cheap play on pro sports teams, whose value keeps rising. There is also a debate on if the stock is being held down by a “Dolan discount” or the perception that the family will destroy value and will not monetize the teams. However, the Dolans have not ruled out selling a minority stake in the company, which could boost shares.