MW 'The timing couldn't have been better' for investors in MSGS as the Knicks make the NBA Finals
By Weston Blasi
Shares of MSG Sports have climbed 39% this year and are up 88% over the last 12 months. And that was before the Knicks made it to the NBA Finals.
The biggest winners of the New York Knicks making the NBA Finals: The team's fans - and investors in MSG Sports.
New York Knicks fans aren't the only ones that should be buzzing after the basketball team clinched a spot in the NBA Finals for the first time in 27 years: Shareholders of Madison Square Garden Sports should be cheering, too.
Shares of MSG Sports $(MSGS)$, which owns the Knicks as well as the NHL's New York Rangers, were up 3.5% Tuesday, the day after the Knicks beat the Cleveland Cavaliers to make it into the NBA Finals.
"Success on the court/ice strengthens the stock narrative via support for the value of the teams in the leading NYC media market," BTIG analyst Tyler DiMatteo wrote to MarketWatch.
The Knicks heading to the Finals should keep boosting MSG Sports' revenue. More games means more money through ticketing, concessions and sponsorship opportunities for the biggest games in the sport.
"The single largest catalyst investors have been looking for is ways to unlock value from the teams, whether that be minority sales, spinoffs, outright sales or some other means to close the public-private valuation gap," DiMatteo said.
His investment-banking firm's projections estimate that the Knicks' historic playoff performance alone has net MSG Sports $108 million in revenue already.
"The Finals run supports the value of the team and company, marking it a preeminent sports franchise," DiMatteo noted.
Shares of MSG Sports have climbed 39% this year, and are up 88% over the last 12 months. The company's total market capitalization now sits at $8.5 billion, though that likely undervalues how much the Knicks and Rangers would be sold for in an open-market bidding process. The value of NBA franchises has skyrocketed recently, as the Boston Celtics sold at a $6.1 billion valuation and the Los Angeles Lakers sold at a $10 billion valuation over the last year.
Forbes currently values the Knicks at $9.7 billion.
The boost to MSG Sports' stock price comes at a perfect time for the company, which is in the midst of a process that would separate the Knicks and Rangers through a tax-free spinoff, possibly unlocking even more value for investors. The company filed an initial Form 10 registration statement with the U.S. Securities and Exchange Commission that "would create two distinct publicly traded companies, enabling shareholders to more clearly evaluate each company's assets and growth prospects, while providing both with enhanced strategic and financial flexibility." There is no guarantee that the spinoff transaction will happen, the company announced.
"Should the split commence, presumably in the fall, that could enable a new level of financial flexibility which could include attracting a minority investor in one team or the other," David Joyce, senior analyst at Seaport Research Partners, told MarketWatch. "And with the Knicks' winning ways - and pro team financials based on revenues, which a trip to the Finals clearly bolsters - the timing couldn't have been better for the Knicks' team performance to be achieving these levels."
Joyce added that the Knicks' recent playoff run "serendipitously (from a corporate finance perspective)" will help MSG Sports, and that his firm increased its price target on the company's stock to $435 from $430.
Madison Square Garden Sports should not be confused with Madison Square Garden Entertainment (MSGE) - a separate brand that owns the namesake arena, Radio City Music Hall and the Beacon Theatre, all in New York City. Knicks owner Jim Dolan is the CEO of both entities.
The Knicks' playoff run has been creating major buzz, which should hit a fever pitch during the Finals. Viral videos of Knicks fans parading in front of Madison Square Garden started trending during each playoff game. And ticket prices for the team's upcoming games are "the most expensive NBA Finals tickets on record," according to event marketplace Tickpick. The cheapest get-in prices on the secondary market are $3,745 for Game 3 and $3,464 for Game 4, per Tickpick.
The Knicks' next opponent is yet to be determined, as the San Antonio Spurs and the defending champion Oklahoma City Thunder are still deadlocked in the Western Conference Finals. The first game of the NBA Finals will take place on June 3 at 8:30 p.m. Eastern time, and will be broadcast on ABC $(DIS)$.
-Weston Blasi
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
May 26, 2026 18:22 ET (22:22 GMT)
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