Madison Square Garden Entertainment Corp. (MSGS, Financial) (1.3% of net assets as of June 30, 2023) (MSGS – $33.62 – 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 spun-off from Cablevision in 2010 and subsequently separated its venue and entertainment businesses. Team values have appreciated significantly as they represent excellent stores of value in an inflationary environment; basketball in particular has significant global growth potential. The Knicks’ performance 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 second-quarter 2023 commentary.
