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1. Company Snapshot

1.a. Company Description

Madison Square Garden Sports Corp.operates as a professional sports company.The company owns and operates a portfolio of assets that consists of the New York Knickerbockers of the National Basketball Association (NBA) and the New York Rangers of the National Hockey League.


Its other professional franchises include two development league teams, the Hartford Wolf Pack of the American Hockey League and the Westchester Knicks of the NBA G League.It also owns Knicks Gaming, an esports franchise that competes in the NBA 2K League, as well as a controlling interest in Counter Logic Gaming, a North American esports organization.In addition, the company operates two professional sports team performance centers, the Madison Square Garden Training Center in Greenburgh and the CLG Performance Center in Los Angeles.


The company was formerly known as The Madison Square Garden Company.Madison Square Garden Sports Corp.was incorporated in 2015 and is based in New York, New York.

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1.b. Last Insights on MSGS

Madison Square Garden Sports Corp.'s recent performance was driven by positive momentum in key operating areas, with all in-game revenue categories increasing on a per-game basis. The company's fiscal Q2 2026 results showed growth in ticketing, suites, sponsorship, and food, beverage, and merchandise. Additionally, institutional investors have been buying into the stock, with Assetmark Inc. raising its position by 65,330.8% and Reinhart Partners purchasing 214,891 shares. The company's Q2 earnings call and recent ratings from brokerages, including a consensus rating of "Hold" from MarketBeat, also contributed to the positive sentiment.

1.c. Company Highlights

2. MSG Sports Corp. Delivers Mixed Results

Madison Square Garden Sports Corp. reported revenues of $403.4 million and adjusted operating income of $29.7 million for the fiscal 2026 second quarter. The company's earnings per share (EPS) came in at $0.34, missing analyst estimates of $0.66. Revenue growth was driven by increases in all in-game revenue categories on a per game basis, including ticketing, sponsorship, and premium hospitality. The Knicks and Rangers combined season ticket renewal rate was approximately 94%, indicating strong demand.

Publication Date: Feb -08

📋 Highlights
  • Revenue Growth:: Q2 2026 revenue reached $403.4M with adjusted operating income of $29.7M, driven by per-game revenue increases across ticketing, sponsorship, and premium hospitality.
  • Season Ticket Renewals:: Knicks and Rangers combined renewal rate hit 94%, reflecting strong fan engagement and loyalty.
  • Marketing Partnerships:: Secured multiyear deals with PwC, Polymarket, and Game Seven, plus a jersey patch partnership with Game Seven, enhancing brand collaborations.
  • Balance Sheet Update:: $81M cash balance and $291M debt, with refinanced credit facilities extending maturities to November 2030 and improved borrowing rates.
  • Capital Allocation:: Prioritizing liquidity, a strong balance sheet, and core business investments; potential for future capital returns contingent on playoff performance.

Revenue Growth Drivers

The company has been focused on optimizing pricing and mix of individual and group sales to maximize revenues for each game, resulting in a year-over-year increase in per game ticketing revenue. Additionally, the company has seen momentum in marketing partnerships, with new multiyear deals with PwC and Polymarket, and a jersey patch partnership with Game Seven. These partnerships are expected to drive growth in sponsorship revenue.

Balance Sheet and Liquidity

The company's balance sheet shows a cash balance of approximately $81 million and a debt balance of $291 million. The company recently refinanced the Knicks and Rangers senior secured revolving credit facilities, improving its average borrowing rate and extending each facility's maturity to November 2030. This refinancing is expected to provide the company with increased financial flexibility.

Valuation and Growth Prospects

With a P/S Ratio of 6.28, the company's valuation appears to be relatively high compared to its revenue. Analysts estimate next year's revenue growth at 4.4%, which may not be sufficient to justify the current valuation. The company's EV/EBITDA ratio of 451.94 also suggests that the stock may be overvalued. However, the company's strong brand and local media rights landscape provide a solid foundation for long-term growth.

Future Outlook

3. NewsRoom

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Charles Dolan Sells 5,659 Shares of Madison Square Garden (NYSE:MSGS) Stock

Feb -26

Source: defenseworld.net

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Barron's Stock Pick Updates: Where S&P Global, Boeing, and MSG Sports Stand Now.

Feb -25

Source: barrons.com

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Assetmark Inc. Has $1.93 Million Holdings in The Madison Square Garden Company $MSGS

Feb -20

Source: defenseworld.net

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Reviewing Travel + Leisure (NYSE:TNL) & Madison Square Garden (NYSE:MSGS)

Feb -20

Source: defenseworld.net

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Madison Square Garden Sports shares hit record high as it explores Knicks, Rangers spinoff

Feb -18

Source: reuters.com

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Roundball or Hockey? Investors Might Get to Own Shares of the Knicks and Rangers

Feb -18

Source: investopedia.com

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Warner Bros. Reopens Talks, MSG Sports Talks Knicks, Rangers Spinoff | Bloomberg Deals 2/18/2026

Feb -18

Source: youtube.com

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Madison Square Garden Sports Corp. Board of Directors Unanimously Approves Plan to Explore Possible Spin-Off

Feb -18

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.88%)

6. Segments

Event-related

Expected Growth: 2.5%

Madison Square Garden Sports Corp.'s 2.5% growth is driven by increasing ticket sales from a strong NBA and NHL season, coupled with growing media rights revenue from broadcasting deals. Additionally, the company's focus on premium seating and hospitality experiences contributes to higher revenue per event. These factors, along with a strong pipeline of upcoming events, support the company's growth momentum.

Media Rights

Expected Growth: 3.5%

Media Rights from Madison Square Garden Sports Corp. growth driven by increasing demand for live sports content, rising popularity of MSG's sports teams, and strategic partnerships with broadcasters and streaming services, resulting in a 3.5% growth rate.

Sponsorship, Signage and Suite Licenses

Expected Growth: 2.8%

Strong brand recognition and iconic venue status drive Sponsorship growth. Increased demand for premium experiences fuels Signage and Suite Licenses growth, with a 2.8% increase attributed to strategic partnerships, enhanced fan engagement, and a strong New York market presence.

League Distributions and Other

Expected Growth: 2.2%

Madison Square Garden Sports Corp.'s 2.2% growth in League Distributions and Other is driven by increasing media rights fees, sponsorship deals, and ticket sales. Additionally, the company's strategic partnerships, such as the NBA's growing popularity and the WNBA's rising viewership, contribute to this growth.

7. Detailed Products

New York Knicks Tickets

Tickets to watch the New York Knicks play at Madison Square Garden

New York Rangers Tickets

Tickets to watch the New York Rangers play at Madison Square Garden

Concert and Event Tickets

Tickets to concerts, comedy shows, and other events held at Madison Square Garden

Suite Rentals

Luxury suites for private events and corporate entertainment

Madison Square Garden Tours

Guided tours of the iconic arena, including the locker rooms and arena floor

MSG Networks

Regional sports network broadcasting Knicks, Rangers, and other local sports

MSG Sports Properties

Sponsorship and advertising opportunities at Madison Square Garden

8. Madison Square Garden Sports Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Madison Square Garden Sports Corp. is medium, as while there are some alternative entertainment options available, the company's unique venues and events provide a competitive advantage.

Bargaining Power Of Customers

The bargaining power of customers for Madison Square Garden Sports Corp. is low, as individual customers have limited negotiating power and the company has a strong brand and loyal customer base.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Madison Square Garden Sports Corp. is medium, as while the company has some dependence on suppliers for certain goods and services, it also has some negotiating power due to its size and scale.

Threat Of New Entrants

The threat of new entrants for Madison Square Garden Sports Corp. is low, as the company has a strong brand and established presence in the market, making it difficult for new entrants to gain traction.

Intensity Of Rivalry

The intensity of rivalry for Madison Square Garden Sports Corp. is high, as the company operates in a competitive industry with several established players, and must continually innovate and improve to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 143.02%
Debt Cost 4.02%
Equity Weight -43.02%
Equity Cost 7.32%
WACC 2.60%
Leverage -332.46%

11. Quality Control: Madison Square Garden Sports Corp. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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News Corp

A-Score: 5.6/10

Value: 5.8

Growth: 5.1

Quality: 7.4

Yield: 2.0

Momentum: 4.0

Volatility: 9.0

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Sirius XM

A-Score: 5.5/10

Value: 8.5

Growth: 3.8

Quality: 5.5

Yield: 7.0

Momentum: 3.0

Volatility: 5.0

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Warner Music

A-Score: 5.1/10

Value: 2.6

Growth: 2.8

Quality: 6.9

Yield: 5.0

Momentum: 5.5

Volatility: 8.0

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Madison Square Garden Sports

A-Score: 4.8/10

Value: 4.4

Growth: 4.9

Quality: 4.2

Yield: 1.0

Momentum: 5.0

Volatility: 9.0

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Live Nation Entertainment

A-Score: 4.7/10

Value: 2.6

Growth: 8.3

Quality: 5.0

Yield: 0.0

Momentum: 5.0

Volatility: 7.3

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Endeavor Group Holdings

A-Score: 3.8/10

Value: 4.9

Growth: 3.8

Quality: 2.7

Yield: 0.0

Momentum: 5.5

Volatility: 6.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

321.56$

Current Price

321.56$

Potential

-0.00%

Expected Cash-Flows