Madison Square Garden Sports (MSGS), mcap=$3.8bn, price $155 vs $154

Pitch:
– Owns stakes in the most valuable NBA and NHL teams – the New York Knicks and the New York Rangers.
– Trades at 50% discount to precedent sports franchise transactions.
– Revenue growth from recently signed multi-year sponsorship renewals.
– Further upside from approval of online sports gambling in NY with already signed advertising deals.
– Media rights renewal in ’24/’25 set to improve NBA team valuations.

Valuation:
– Sports team values are referenced to valuations assigned by Forbes.
– With a 30% premium (in line with recent sports franchise transactions) to Forbes values, the private market value of MSGS stands at $300/share.

Exp. gain: +100% to $300/share.

Full $MSGS write-up (free guest account required):
https://www.valueinvestorsclub.com/idea/MADISON_SQUARE_GARDEN_SPORTS/5212784335

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