MSG Sports stock surges 103% to record as Knicks chase title

Madison Square Garden Sports Corp. shares hit an all-time high of $390.12 on Thursday, the day after the New York Knicks clinched Game 1 of the NBA Finals, extending a rally that has more than doubled the stock over the past year.

"It's great to see the Knicks winning on the court, but from my perspective it's even better to see shareholders winning," said Christopher Marangi, president of Gabelli Funds, a major shareholder of MSG Sports.

The stock has surged 103.3% over the past 12 months, giving the James Dolan-controlled company a market capitalization of about $9.3 billion. The rally accelerated after a proposal earlier this year to split the Knicks and New York Rangers into separately traded entities — a move analysts said could unlock billions in trapped franchise value. An Eastern Conference Finals home game is worth roughly $20 million to the company, according to prior financial disclosures, and NBA Finals games are generating even more.

The Knicks' 2-0 series lead over the San Antonio Spurs has pushed ticket resale prices above $10,000 and drawn celebrities including Timothée Chalamet and Ben Stiller to courtside seats. President Trump and Mayor Zohran Mamdani are expected to attend Game 3 on Monday evening at Madison Square Garden, the first Finals game at the venue in 27 years.

A key financial advantage for the Knicks: point guard Jalen Brunson. The team captain signed a four-year contract worth just under $40 million annually, leaving more than $100 million on the table relative to his market value, according to the Wall Street Journal. That below-market deal has allowed the Knicks to assemble a deeper roster while keeping costs in check — a dynamic that has not gone unnoticed by investors. Brunson has regularly been cited on MSG Sports earnings calls, with executives touting his extension and All-Star appearances.

"He's certainly, in relative terms, underpriced for all that he's done for the team," said Jonathan Boyar, principal at the Boyar Value Group and a longtime MSG Sports investor.

For years, MSG Sports traded at a steep discount to what analysts estimated the Knicks and Rangers would fetch in a private sale — a gap investors dubbed the "Dolan Discount." The proposed structural separation of the two franchises, combined with a new tax law limiting compensation deductions for public companies, has fueled speculation that conditions are ripe for a privatization or sale at a record valuation.

"Everyone knows these are great assets, but what's the catalyst to unlock that value?" said Curry Baker, an analyst at Guggenheim Securities. "With this potential separation of the Knicks and Rangers and the tax treatment issues, you can finally see everything aligning to get some sort of transaction."

Some investors have urged caution. "Sports teams have never been valued by normal investor metrics," said Kenin Spivak, CEO of SMI Group. "There is no reason to believe the surge in value will hold for very long."

The Knicks' playoff run could generate as much as $465 million for New York City's economy, according to estimates from Mamdani's office. For shareholders, the windfall is already being tallied in billions.

This article is for informational purposes only and does not constitute investment advice.