MSG Sports Considering Spinning Off New York Knicks, Rangers
Watch on YouTube ↗  |  February 18, 2026 at 17:07 UTC  |  7:23  |  Bloomberg Markets
Speakers
Tom Keene — Host, Bloomberg Surveillance
Randall Williams — Sports Business Reporter, Bloomberg

Summary

  • MSG Sports (MSGS) is considering spinning off the New York Knicks and New York Rangers to bridge a massive valuation gap.
  • While MSGS trades at a market capitalization of ~$7 billion, the combined private market value of the Knicks (~$10B) and Rangers (~$3-4B) is estimated between $13-14 billion.
  • Sports franchises are increasingly viewed as an institutional asset class ("stocks, bonds, and sports teams"), with private equity playing a growing role in minority stakes due to skyrocketing valuations.
  • The NFL's Seattle Seahawks are expected to trade for $8-10 billion, highlighting the scarcity value and high barrier to entry (30% cash rule) for controlling owners.
Trade Ideas
Ticker Direction Speaker Thesis Time
MSGS
LONG Randall Williams
Sports Business Reporter, Bloomberg 		"MSD [MSG] as a company is valued at $7 billion... the Knicks and the Rangers combined are much larger than that... anywhere between 13 to $14 billion." The stock is trading at a ~50% discount to the sum-of-the-parts (SOTP) value of its assets. A spinoff or restructuring serves as the catalyst to unlock this value, allowing public shareholders to capture the private market premium. LONG. Pure arbitrage play on the disconnect between public market cap and private asset valuation. The Dolan family (controlling owners) may decide against the spinoff or structure it in a way that doesn't benefit minority shareholders; holding company discounts can persist for years. —
BATRA
LONG Randall Williams
Sports Business Reporter, Bloomberg 		"What are they thinking about the Atlanta Braves... they do in fact, trade at a discount to private market value." Like MSGS, the Atlanta Braves tracking stock suffers from a "conglomerate/holding company discount." If the market begins to re-rate sports assets based on recent private transactions (e.g., Seahawks at $8B+), this discount should narrow. LONG. Sympathy play to the MSGS thesis and general sports asset inflation. On-field performance impacting revenue; lack of a specific catalyst (like a sale) compared to the MSGS news. —
BX /ARES /KKR /OWL
LONG Randall Williams
Sports Business Reporter, Bloomberg 		"There's institutional investor money out there... looking to invest in professional sports franchises... Private equity is increasingly buying more stakes because they are seeing these meteorite fees continue to rise." As valuations hit levels where individuals can no longer afford teams (e.g., $8B for Seahawks), the capital stack requires institutional money. Private Equity firms raising dedicated sports funds will see increased deal flow and management fees as they provide the necessary liquidity for these transactions. LONG. Betting on the "financialization of sports" trend. League ownership rules (like the NFL's strict limits) could cap PE involvement; valuations could peak, reducing IRR for these funds. —