Core Insights - The New York Knicks are entering the 2025-26 season with strong momentum after reaching the Eastern Conference Finals for the first time in 25 years, holding the fourth-best odds to win the 2026 NBA title [1] - Despite the team's success, Madison Square Garden Sports' stock price has only increased by 3.4% over the past year, significantly lagging behind the S&P 500's 15.1% increase [2] - The Knicks are valued at $9.85 billion, while the Rangers are valued at $3.65 billion, totaling $13.5 billion, which is at a 51% discount compared to MSGS's enterprise value of $6.6 billion [3] Company Performance - MSGS's COO expressed confidence in the value of their teams, suggesting that the current stock price does not reflect their true worth [4] - The Knicks experienced a 28% cut in local TV rights fees, yet still generated $620 million in revenue for the 2024-25 season, slightly surpassing the Lakers [5] - The Knicks and Rangers reported a combined loss of $22 million after taxes and interest for the 2024-25 fiscal year, despite the Knicks' playoff success [11] Market Valuation - The value of the Knicks rose by 81% and the Rangers more than doubled over the past five years, while average league values have increased even more rapidly [6] - There is a noted "Dolan discount" affecting MSGS's stock price, as sports teams often trade at significant discounts compared to private valuations [7] - Analysts suggest that MSGS shares are undervalued, with a potential price range between $417 and $425 based on control transactions, compared to the current share price of $224 [14] Investment Sentiment - Analysts covering MSGS are generally positive, with three hold ratings, four buys, and one strong buy, indicating a belief that the gap between private and public valuations will narrow [13] - The controlling shareholder, James Dolan, has indicated no immediate plans to sell the franchises, emphasizing their unique value [14]