At Boyar Value Group, we’ve been following Madison Square Garden Sports Corp. (MSGS) since it was spun out of Cablevision, and the math has never been clearer: the sum of its parts is worth significantly more than its whole. According to Forbes, the New York Knicks are worth $7.5 billion and the Rangers $3.5 billion—yet MSG Sports trades at an enterprise value of ~$5 billion. That’s a nearly $6 billion gap, and likely even more understated given the reported $10 billion sale of the Los Angeles Lakers.
In our open letter to Executive Chairman James Dolan, we called for a straightforward remedy: split the Knicks and Rangers into two separately traded public companies. Not only would this shine a brighter light on the value of each iconic franchise, but it could also reduce the persistent “Dolan Discount” that has long weighed on MSGS shares.
History suggests this kind of move isn’t out of character. The Dolan family has a long record of spinning out assets—MSGS itself was the result of one. A split would enable the market to value each team on its own merits, potentially unlocking billions in shareholder value in the process.
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Clients of an affiliate of Boyar Research and employees of Boyar Research own shares in MSGS.