MSG Sports shares rose 1.5% after the Knicks swept the Cavaliers to reach the NBA Finals for the first time in 27 years. The stock has gained 37% this year as the company weighs a tax-free spinoff of the Knicks and Rangers valued at $13 billion.
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MSG Sports jumps 1.5% as Knicks reach first NBA Finals since 1999
Madison Square Garden Sports rose 1.5% Tuesday after the New York Knicks swept the Cleveland Cavaliers to reach the NBA Finals for the first time since 1999.
The 130-93 win in Game 4 of the Eastern Conference Finals capped a four-game sweep. The Knicks will face either the San Antonio Spurs or Oklahoma City Thunder in the Finals starting June 3.
Shares of MSG Sports have climbed 37% this year and 86% over the last 12 months as of Friday's close, after stagnating for the previous eight years. The company has a market capitalization of $8.5 billion.
The holding company is considering separating the Knicks and Rangers through a tax-free spinoff that could unlock more value for investors. The two franchises are likely worth a combined $13 billion or more, according to Barron's. The NBA's Los Angeles Lakers and Boston Celtics sold for $10 billion and $6.1 billion, respectively, in the last year.
The Finals run is already generating a surge in ticket demand. The cheapest seats for Game 3 at Madison Square Garden on June 8 were listed for more than $3,500 on secondary markets, with courtside pairs exceeding $100,000, according to TickPick and StubHub. Game 6 tickets, if necessary, start above $5,000.
The Knicks will enter the Finals as underdogs. Traders on Polymarket give the team a 29% chance of winning the championship. Television and ticket revenue, geography, and sponsorships all contribute to franchise value, Barron's noted.
The stock's rally reflects investor optimism that a deep playoff run will boost short-term revenue and brand equity. The planned spinoff remains the primary catalyst for unlocking shareholder value, with the Knicks' postseason success potentially accelerating that timeline. Investors will watch the Finals for further momentum that could lift the franchise's valuation ahead of any separation.
This article is for informational purposes only and does not constitute investment advice.
[1] MSG Sports Stock Jumps as Knicks Make the NBA Finals. Winning Never Hurts. - Barron's[2] NBA Finals: Knicks fans will have to pay up, big time, to get a ticket at MSG[3] Knicks NBA Finals ticket prices are smashing records[4] Bargain-hunting Knicks fans invade Cleveland on eve of Game 4 of NBA conference finals[5] Finals berth on the road didn’t stop Knicks fans from partying outside MSG
