Madison Square Garden Sports (MSGS) owns the New York Knicks and Rangers, among other things. Knicks are valued at 6.1b, Rangers at 2.2b. The market cap for MSGS is only 4.33b.
I know the difference in the valuation gap is because of the owner James Dolan, who everyone hates mainly because the Knicks have been terrible for 20 years. He has said he is not selling the teams.
That being said, isn't MSGS incredibly undervalued? MSGS could buyback shares, sell a minority stake, issue a dividend (which they did recently) to close the gap to NAV.
In a tough market, this seems like a screaming buy. Please tell me where I am wrong because I want to hear the bear side of this. Thanks!
Leave a Reply