Recent purchase – The Madison Square Garden Company(MSG)

Guys, I own a piece of the Knicks now!

I’ve always been a basketball fan and the recent purchases of NBA franchises at increasingly higher prices has led me to take a closer look this stock. There aren’t a ton of ways to invest in sports teams with only a few publicly traded companies offering investors an opportunity to do that and MSG is one of those.

My recent portfolio update showed me lagging behind on my mid-cap allocation and MSG fits that criteria with a market cap just above 5B. The stock has had a solid year and is up 24% YTD. I never looked at the stock before but the not so recent spin off of MSG Networks, the under performing cable assets the company used to own has made it an intriguing proposition.

MSG owns the Knicks but also owns a variety of other assets most notably the Rangers, the most valuable NHL team and the MSG arena.

Valuing an trophy asset such as a basketball team is very tricky. Forbes does an annual list of NBA valuations which has the Knicks listed at 3.3B for 2017 so that’s a good starting point but how does that valuation compare to the actual amount people are willing to pay to own such a unique luxury asset. The recent purchase of the Rockets at 2.2B gives me a good start pointing but it’s also worth looking at a few other recent NBA teams that have changed hands as well.  Continue reading “Recent purchase – The Madison Square Garden Company(MSG)”