This podcast episode analyzes Madison Square Garden Sports Corp (MSGS), focusing on the valuation of its key assets: the New York Knicks and Rangers. The host discusses the company's structure, financial situation, and the complexities of valuing sports franchises, highlighting the significant difference between market valuation and estimated private sale values. He considers various factors, including the Dolan family's controlling stake and the risks associated with sports team ownership, ultimately deciding against adding MSGS to his portfolio due to concerns about the business model's quality and lack of a clear catalyst for a sale. The episode concludes with a discussion of valuation approaches and a recommendation to treat MSGS as a special situation rather than a core long-term holding. A key takeaway is the significant discount at which MSGS trades relative to the estimated value of its assets.
