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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 positively driven by robust operating highlights, including a 94% combined average season ticket renewal rate for the New York Knicks and Rangers. The company's fiscal 2025 fourth quarter was highlighted by the Knicks' participation in the NBA playoffs. Additionally, the company's revenue beat estimates, with a quarterly loss of $0.07 per share versus the Zacks Consensus Estimate of a loss of $0.42. Institutional investors, such as State of New Jersey Common Pension Fund D, have also shown confidence in the company, boosting their stakes.

1.c. Company Highlights

2. Madison Square Garden Sports Corp. Reports Fiscal 2025 Results, Poised for Growth

Madison Square Garden Sports Corp. reported fiscal 2025 full-year results with revenues of over $1 billion and adjusted operating income of $38 million, driven by sustained consumer and corporate demand for the Knicks and Rangers. The company saw increases in key in-game revenue categories, including ticketing, sponsorship, and suites, partially offset by investments in the teams and the partial year impact of amended local media rights agreements with MSG Networks.

Publication Date: Aug -14

📋 Highlights
  • Total Revenue & Profit:: Generated $1.04B revenue and $38.2M adjusted operating income in fiscal 2025.
  • Knicks Playoff Performance:: Hosted nine playoff games, earning $115.2M in playoff-related revenues despite a $12.8M drop from prior year.
  • Marketing Partnerships:: Secured new partners (Abu Dhabi, Lenovo) and aim to grow fiscal 2026 revenue via renewals and inventory.
  • Balance Sheet Strength:: Maintained $145M cash balance with $291M debt, supporting 2026 growth strategies.

Fiscal 2025 Performance

The company generated total revenues of $1.04 billion and adjusted operating income of $38.2 million in fiscal 2025. The fiscal 2025 fourth quarter reflected strong consumer and corporate demand for its teams, with total revenues of $204 million, a decrease from $227.3 million in the prior year period. The company's balance sheet remains strong, with a cash balance of approximately $145 million and debt balance of $291 million.

Knicks' Playoff Run and Marketing Partnerships

The Knicks' Eastern Conference finals run generated the highest per-game gate in team history, with food and beverage and merchandise per-cap spending above regular season averages. The team is seeing good momentum in marketing partnerships, following a year of growth in fiscal '25, and expects to drive another year of growth in fiscal '26, capitalizing on opportunities including renewals and premium available inventory. As CEO David O'Connor mentioned during the earnings call, "We're seeing a lot of interest from brands that want to partner with us, and we're confident that we can continue to drive growth in this area of our business."

Valuation

With a P/E Ratio of 7893.78 and a P/S Ratio of 4.5, the stock appears to be pricing in strong growth expectations. The company's ROIC of 2.0% and ROE of -0.21% suggest that there is still room for improvement in terms of profitability. However, with a strong balance sheet and a free cash flow yield of 3.21%, the company appears to be well-positioned to invest in its teams and drive growth in the coming years.

Outlook

The company believes its business is poised to deliver revenue growth across all in-arena categories in fiscal 2026, driven by the NBA's new national media rights deals, a full year of amended local media rights agreements, and continued investment in its teams. Analysts estimate next year's revenue growth at 0.1%. With the Knicks and Rangers having loyal fan bases and the company's success in marketing partnerships, Madison Square Garden Sports Corp. appears to be well-positioned for long-term growth.

3. NewsRoom

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PELLERA TECHNOLOGIES NAMED AN OFFICIAL PARTNER OF THE NEW YORK RANGERS

Dec -04

Source: prnewswire.com

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Pellera Technologies Named an Official Partner of the New York Rangers

Dec -04

Source: businesswire.com

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Creative Planning Grows Stock Holdings in The Madison Square Garden Company $MSGS

Dec -02

Source: defenseworld.net

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The Madison Square Garden Company $MSGS Stake Boosted by Commonwealth of Pennsylvania Public School Empls Retrmt SYS

Nov -24

Source: defenseworld.net

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Connor Clark & Lunn Investment Management Ltd. Makes New Investment in The Madison Square Garden Company $MSGS

Nov -21

Source: defenseworld.net

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Campbell & CO Investment Adviser LLC Sells 1,378 Shares of The Madison Square Garden Company $MSGS

Nov -18

Source: defenseworld.net

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The Madison Square Garden Company $MSGS Shares Purchased by Envestnet Asset Management Inc.

Nov -17

Source: defenseworld.net

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The Madison Square Garden Company $MSGS Shares Sold by Teacher Retirement System of Texas

Nov -05

Source: defenseworld.net

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: 5.9/10

Value: 5.5

Growth: 5.1

Quality: 7.4

Yield: 2.0

Momentum: 6.5

Volatility: 9.0

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Madison Square Garden Sports

A-Score: 5.6/10

Value: 6.4

Growth: 4.9

Quality: 6.4

Yield: 1.0

Momentum: 6.0

Volatility: 8.7

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Sirius XM

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Value: 8.6

Growth: 3.8

Quality: 7.0

Yield: 7.0

Momentum: 2.5

Volatility: 4.3

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Live Nation Entertainment

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Value: 2.0

Growth: 8.3

Quality: 4.8

Yield: 0.0

Momentum: 8.5

Volatility: 8.3

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Warner Music

A-Score: 5.2/10

Value: 1.3

Growth: 6.4

Quality: 4.8

Yield: 4.0

Momentum: 6.5

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Endeavor Group Holdings

A-Score: 3.6/10

Value: 4.3

Growth: 3.8

Quality: 2.3

Yield: 0.0

Momentum: 5.0

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

224.1$

Current Price

224.1$

Potential

-0.00%

Expected Cash-Flows