Knicks championship win would be the perfect chance to sell the team: Ariel's Charles Bobrinskoy

Summary

Charles Bobrinskoy discusses the potential split of the New York Knicks and Rangers into separate public companies, arguing that the parent stock (MSG) is undervalued relative to the teams' Forbes valuations. He sees a Knicks championship as the perfect catalyst for a sale, which would unlock significant value for shareholders. The conversation also covers tax advantages and the owner's incentives.

• MSG stock trades at about 60% of Forbes' combined valuation of the Knicks and Rangers.
• A spin-off of the Knicks and Rangers into two public companies is expected by Wall Street.
• A Knicks championship win could be the ideal moment for owner Jim Dolan to sell a team.
• Selling a team after the split avoids double taxation and is favored by new IRS salary deduction rules.
• Bobrinskoy estimates the Knicks alone could be worth over $10 billion.
• A sale of the Rangers for around $4 billion would be very positive for the stock even if the Knicks are kept.
• The speaker has owned MSG shares since 2015 and sees significant remaining value.
• The arena (MSG Entertainment) is separate and not part of the sports team spin-off.