MSG Should Split Into Two Companies, Ariel's John Rogers Says
Speakers
John Rogers
— Co-CEO, Ariel Investments
Summary
John Rogers of Ariel Investments argues that MSG Sports shares fail to reflect the full value of the Knicks and Rangers, and that splitting the company into two separate entities would unlock significant value. He also highlights Sphere Entertainment's successful turnaround, technology-driven growth, and global expansion plans, while noting the firm's disciplined position management.
- MSG Sports stock hasn't priced in the full value of the Knicks and Rangers.
- Splitting MSG Sports into two companies would facilitate PE investment or a sale at historic highs.
- The Knicks franchise could be worth up to $12 billion, presenting a large value gap.
- Sphere Entertainment shares have soared from the 20s to over $150 as the 'Dolan discount' turned into a premium.
- Sphere's immersive technology, AI-enhanced content, and concert experience are driving global expansion plans.
- Ariel Investments trims positions when a stock exceeds 6% of the portfolio but remains optimistic on all three Dolan-linked companies.
- Multi-year Knicks success and attraction of free agents support the underlying value of MSG Sports.
Ideas
Split MSG Sports to unlock franchise value
MSG Sports should split into two separate companies (Knicks and Rangers) to unlock trapped asset value. A split would make it easier for private equity to invest, pave the way for a sale at all-time highs, and surface the true worth of the franchises, which the market hasn't reflected. The Knicks alone could be worth $12 billion, and the current environment after the championship presents an ideal window to realize value.
Sphere's execution premium drives global growth
Sphere Entertainment has executed beautifully, turning the former 'Dolan discount' into a premium. The stock surged from the 20s/30s to over $150 as unique technology, AI-enhanced movies, and unmatched concert experiences create a powerful brand. Global expansion is underway with plans for more spheres worldwide, and the company remains well-positioned for future growth.
Up Next
This Bloomberg Markets video, published June 15, 2026, features John Rogers discussing MSGS, SPHR. 2 trade ideas extracted by AI with direction and confidence scoring.
Speakers: John Rogers · Tickers: MSGS, SPHR