Madison Square Garden Sports Co. (MSGS, Financial) (3.3%) (MSGS – $136.66 – NYSE), owner of the New York Knicks basketball team and the New York Rangers hockey team, is one the few ways for the public to access the positive dynamics of sports franchises. The company’s predecessor was originally spun-off from Cablevision in 2010 and subsequently separated its venue and entertainment businesses via Madison Square Garden Entertainment. Although the company was negatively impacted by a shortened season and attendance limitations due to COVID, the value of the teams has been growing along with the global popularity of basketball. The Knicks on-court has also improved, with a core of young players and significant draft capital that should engender additional fan engagement and create incremental pricing power in future years.
From Mario Gabelli (Trades, Portfolio)'s Gabelli Value 25 Fund third-quarter 2022 commentary.
