Featured on Forbes – Article by Sergei Klebnikov: “With Madison Square Garden successfully completing the separation of its sports and entertainment businesses last month, the spinoff created two separate stocks that are both currently undervalued, according to market experts.
“Last month, the Madison Square Garden Company completed the spinoff of MSG Entertainment (which operates Madison Square Garden and other venues) and renamed itself MSG Sports (which owns the New York Rangers and New York Knicks sports teams). Investors say that the spinoff has created a big opportunity.
“’Long term, these are great stocks with enormous value,’ says Jim Osman, CEO of The Edge Consulting Group, who doesn’t own direct stakes in either stock. At current market prices, he says, MSGS is trading at about a 30% discount to its net asset-based valuation while MSGE is trading at a nearly 50% discount.
One reason investors are optimistic: The Sphere, a 17,500-capacity stadium in Las Vegas. Although construction has been delayed and the opening has been pushed beyond 2021 because of coronavirus shutdowns, the new venue is fully funded and ‘will unlock a new revenue stream’ for MSGE, Osman says.”