Madison Square Garden Sports Corp (MSGS): A Bull Case Theory

We came across a bullish thesis on Madison Square Garden Sports Corp on Open Insights’s Substack. As of 19ᵗʰ September, Madison Square Garden Sports Corp’s share was trading at $213.62. MSGS’s forward P/E was 133.51 according to Yahoo Finance.

Photo by Ramiro Pianarosa on Unsplash

The Los Angeles Lakers were bought in 1979 for $67.5M and sold 46 years later for $10B, representing an average annual appreciation of 11.5% in value. Similarly, an investment in Madison Square Garden Sports Corp (MSGS), which owns the New York Knicks and Rangers, presents an opportunity. The teams are conservatively worth ~$11B, but the market cap is around $5B, implying a discount of half. This discount presents a compelling investment case, as the value of sports teams tends to appreciate over time.

If the teams appreciate at 10-12% annually, but you buy MSGS at half price, the effective compounding rate would be 20-24% per year, excluding dividends. According to the Rule of 72, this would result in doubling the investment every 3.5 years. Over 35 years, this could lead to a 10-fold increase in investment value, turning $1K into $1M or $100K into $100M. The potential for long-term appreciation in sports team values makes MSGS an attractive investment opportunity.

The main risks associated with this investment include the possibility that the Dolan family, who control MSGS via a supermajority vote, may not transact, and the discount may not close. However, even if the discount persists, the underlying teams continue to appreciate in value. The investment requires a long-term perspective, as the value of sports teams tends to grind higher over time. With a small position and a long-term horizon, investors can benefit from the potential appreciation in MSGS stock, making it suitable for a long-term investment, such as a college fund.

Previously we covered a bullish thesis on Madison Square Garden Sports Corp. (MSGS) by Boyar Research in September 2025, which highlighted the valuation gap between the company’s market cap and the combined worth of the Knicks and Rangers, along with catalysts such as potential minority stake sales or spin-offs to unlock hidden value. The company’s stock price has appreciated approximately by X% since our coverage. This is because the underlying sports franchises continue to appreciate steadily. Open Insights shares a similar thesis but emphasizes a contrarian perspective focused on long-term compounding gains from the teams’ intrinsic value appreciation, illustrating the potential for outsized returns even if the market discount persists.

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Disclosure: None.