By Josh Schafer
As New York Knicks fans travel to City Hall Thursday for a parade to celebrate the franchise's first championship in 52 years, they and investors in shares of Madison Square Garden Sports Corp. can be repeating the same phrase all day if they choose: Ball don't lie.
The saying is used most frequently in basketball when someone is complaining about an officiating call. Was that really a foul? If not, then maybe the free throw shots won't go in. The ball won't lie.
It's a fitting phrase for a Knicks team that entered the NBA playoffs far from favorites to win the whole thing, then were discounted for not playing top tier opponents in the first few rounds of the playoffs, only to send the San Antonio Spurs packing in just five games to win the NBA Finals.
Despite pundits raising questions about the Knicks and their undersized 6-foot-2-inch superstar Jalen Brunson, the ball didn't lie. With a 16-3 record throughout the playoffs, the Knicks were clearly the best team in basketball this year.
In this way, Knicks fans aren't dissimilar to the investors that have been clamoring for years that Madison Square Garden Sports is undervalued. Madison Square Garden Sports owns both the New York Knicks and New York Rangers. Forbes' closely followed franchise estimates value the Knicks at $9.75 billion, while the Rangers are about $4 billion.
But as recently as September 2025, when Andrew Bary recommended buying shares, the stock traded at a steep discount to its underlying assets with a valuation of $5.3 billion. Wall Street had long believed the stock held a "Dolan Discount," a reference to Chairman Jim Dolan, who has said he wouldn't sell either team.
For sports teams, the key long term value for investors is realized when a sale is made. Otherwise the valuation is just an estimated figure. The 2026 $10 billion sale of the Los Angeles Lakers in 2025 emphasizes the premium value that can be put on a popular NBA franchise in the open market.
But with shares now up nearly 100% in the past year and sitting just below a record high, John Rogers Jr., founder, chairman, Co-CEO, and chief investment officer of Ariel Investments, tells Barron's it should be called the "Dolan Premium."
"He's gone well beyond proving himself as a visionary entrepreneur, visionary business leader," Rogers says.
He noted that it isn't just Madison Square Garden Sports; Dolan's other two companies, Sphere Entertainment and Madison Square Garden Entertainment, have also had exceptional runs. Sphere stock ( a Barron's recommendation in 2025) has rallied nearly 300% while Madison Square Garden Entertainment is up nearly 100% over the same period.
Chris Marangi, Co-CIO of Gabelli Funds and a longtime investor in Madison Square Garden Sports, tells Barron's that the potential of the Rangers and Knicks splitting into separate companies has been the key catalyst for the stock since February. But he also says that winning "doesn't hurt."
"Not only the long-awaited championship, but the likability of the team has really fostered a new generation of fans," says Marangi. "That should be supportive of the long-term value of the franchise."
Just look around the New York streets over the past few months. Knicks hats, jerseys and shirts are everywhere. There are new Knicks fans too. And nothing keeps those fans coming back -- and paying more for tickets -- than winning.
That ball, the one Jim Dolan holds as the head of the franchise, didn't lie either. The New York Knicks are finally NBA champions once again and that provides their shareholders with something to celebrate too.
Write to Josh Schafer at josh.schafer@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
June 18, 2026 02:00 ET (06:00 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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