While its current financial valuation and growth figures do not look enticing, Madison Square Garden's (NASDAQ:MSG) value is in the sum of the asset prices of its parts. These include valuable properties such as the Madison Square Garden Arena, its surrounding airspace, the New York Knicks, the New York Rangers hockey team, Fuse TV, and the MSG television network. Nick explains in the video how Steve Ballmer's recent purchase of the Los Angeles Clippers for $2B is a catalyst that will have investors look at MSG's value beyond its balance sheet.
The recent purchase prices of the Los Angeles Clippers and Milwaukee Bucks have changed valuations of NBA teams.
This shift is not priced in.
Rangers' recent success makes up for Knicks' failures.