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Buy MSGE or MSGS Stock After the Knicks' First Championship in 53 Years?
The New York Knicks have finally done it. After more than five decades of frustration, heartbreak, and near misses, the Knicks have captured their first NBA championship since 1973.
For fans, the title marks the end of a 53-year drought, with New York City holding the much-anticipated championship parade in Manhattan on Thursday.
For investors, it raises an intriguing question: Should you buy Madison Square Garden Entertainment (MSGE - Free Report) ) or Madison Square Garden Sports (MSGS - Free Report) ) stock after the historic victory?
The answer begins with understanding a critical distinction that many investors overlook.
MSGE & MSGS Are Not the Same Company
Despite sharing the Madison Square Garden name and being controlled by the Dolan family, MSG Entertainment and MSG Sports are separate publicly traded companies with different assets and investment profiles.
Madison Square Garden Sports (MSGS - Free Report) owns the New York Knicks and the NHL's New York Rangers. Investors seeking direct exposure to the Knicks franchise are investing through MSGS.
Madison Square Garden Entertainment (MSGE - Free Report) owns and operates iconic venues including Madison Square Garden, Radio City Music Hall, the Beacon Theatre, and the Chicago Theatre. MSGE does not own the Knicks, but it owns the arena where the team plays.
This distinction is important because the financial impact of a championship affects each company differently.
Why the Knicks' Championship Could Benefit MSGS
For MSG Sports, the championship enhances the value of its most important asset.
Professional sports franchises have appreciated dramatically over the past two decades, with elite NBA teams commanding valuations that continue to reach new highs. A championship strengthens the Knicks' global brand, increases fan engagement, boosts merchandise sales, and enhances the team's attractiveness to sponsors and media partners.
The Knicks were already one of the NBA's most valuable franchises, and winning a title could further elevate that status. As reported by Forbes and illustrated by Statista below, the Knicks most recently ranked as the sixth most valuable professional sports franchise in the world at a valuation of $9.75 billion, with the Dallas Cowboys holding down the number one spot at a valuation of $13 billion.
Investors who believe the championship will create a long-term increase in franchise value may view MSGS as the more direct way to capitalize on the Knicks' success. It’s also noteworthy that the Rangers are considered one of the most valuable NHL franchises at a valuation of roughly $4 billion.
Image Source: Statista
How the Knicks' Championship Could Benefit MSGE
While MSGE does not own the Knicks, it may still benefit from the team's success as championship-caliber teams generate excitement that extends beyond the court.
A championship reinforces Madison Square Garden's reputation as one of the world's premier sports and entertainment venues. The increased visibility generated by a title run can support future partnerships, premium experiences, and event demand.
Unlike MSGS, however, MSGE's business is diversified across concerts, entertainment events, theater productions, and venue operations. The Knicks are only one part of the broader Madison Square Garden ecosystem.
As a result, the championship's financial impact on MSGE is likely to be more indirect.
Stock Performance & Valuation Comparison
Year to date, MSGE and MSGS are both up around 40%, impressively topping the benchmark S&P 500’s +8%. In the last three years, both stocks have also outperformed the broader market, with MSGS spiking over 100% and MSGE up nearly 90%.
Image Source: Zacks Investment Research
Despite its slightly inferior performance, MSGE is the more attractively priced and valued stock. To that point, MSGE is currently profitable on a GAAP basis, while MSGS has often reported net losses despite owning two of the most valuable sports franchises in the world.
Considering such, taking into account their price-to-sales (P/S) valuation is a more meaningful comparison tool for investors rather than the P/E ratio. In this regard, MSGE stands out at just under 3X forward sales while having the more affordable stock price of around $70. Meanwhile, MSGS trades at over $370 a share and at roughly 8X forward sales.
Image Source: Zacks Investment Research
MSGE & MSGS Growth Comparison
Based on Zacks estimates, MSGE’s annual sales are expected to rise 9% this year and are projected to increase another 6% in fiscal 2027 to $1.1 billion.
More reassuring, MSGE’s annual earnings are currently slated to be up 4% in FY26 to $1.12 per share, with FY27 EPS projected to soar 105% to $2.30.
Image Source: Zacks Investment Research
Pivoting to MSGS, its top line is expected to expand 5% in FY26 but is projected to contract 4% next year back to just over $1 billion in annual sales.
MSGS is expected to post an adjusted loss of $0.51 a share in FY26, although a narrower loss of $0.25 a share is projected in FY27.
Image Source: Zacks Investment Research
Summary & Conclusion
For investors specifically looking to benefit from the long-term value of the Knicks franchise, MSGS is the more direct investment opportunity. The company's fortunes are closely tied to the value and popularity of the Knicks and Rangers, making it the purest way to invest in the championship story.
On the other hand, MSGE may appeal to investors who prefer a broader entertainment and venue-based business model. MSGE benefits from Knicks-related activity while also generating revenue from concerts, live events, and entertainment properties that are unrelated to professional sports.
That said, much of the upside potential for both stocks may already be priced in, especially for MSGS, considering it is still a ways away from posting positive earnings per share. For now, MSGE and MSGS both land a Zack Rank #3 (Hold) as better buying opportunities may be ahead, even with the Knicks' first championship in 53 years likely to add more mojo to their outlooks.
View the Zacks #1 Rank List
Image: Bigstock
Buy MSGE or MSGS Stock After the Knicks' First Championship in 53 Years?
The New York Knicks have finally done it. After more than five decades of frustration, heartbreak, and near misses, the Knicks have captured their first NBA championship since 1973.
For fans, the title marks the end of a 53-year drought, with New York City holding the much-anticipated championship parade in Manhattan on Thursday.
For investors, it raises an intriguing question: Should you buy Madison Square Garden Entertainment (MSGE - Free Report) ) or Madison Square Garden Sports (MSGS - Free Report) ) stock after the historic victory?
The answer begins with understanding a critical distinction that many investors overlook.
MSGE & MSGS Are Not the Same Company
Despite sharing the Madison Square Garden name and being controlled by the Dolan family, MSG Entertainment and MSG Sports are separate publicly traded companies with different assets and investment profiles.
Madison Square Garden Sports (MSGS - Free Report) owns the New York Knicks and the NHL's New York Rangers. Investors seeking direct exposure to the Knicks franchise are investing through MSGS.
Madison Square Garden Entertainment (MSGE - Free Report) owns and operates iconic venues including Madison Square Garden, Radio City Music Hall, the Beacon Theatre, and the Chicago Theatre. MSGE does not own the Knicks, but it owns the arena where the team plays.
This distinction is important because the financial impact of a championship affects each company differently.
Why the Knicks' Championship Could Benefit MSGS
For MSG Sports, the championship enhances the value of its most important asset.
Professional sports franchises have appreciated dramatically over the past two decades, with elite NBA teams commanding valuations that continue to reach new highs. A championship strengthens the Knicks' global brand, increases fan engagement, boosts merchandise sales, and enhances the team's attractiveness to sponsors and media partners.
The Knicks were already one of the NBA's most valuable franchises, and winning a title could further elevate that status. As reported by Forbes and illustrated by Statista below, the Knicks most recently ranked as the sixth most valuable professional sports franchise in the world at a valuation of $9.75 billion, with the Dallas Cowboys holding down the number one spot at a valuation of $13 billion.
Investors who believe the championship will create a long-term increase in franchise value may view MSGS as the more direct way to capitalize on the Knicks' success. It’s also noteworthy that the Rangers are considered one of the most valuable NHL franchises at a valuation of roughly $4 billion.
Image Source: Statista
How the Knicks' Championship Could Benefit MSGE
While MSGE does not own the Knicks, it may still benefit from the team's success as championship-caliber teams generate excitement that extends beyond the court.
A championship reinforces Madison Square Garden's reputation as one of the world's premier sports and entertainment venues. The increased visibility generated by a title run can support future partnerships, premium experiences, and event demand.
Unlike MSGS, however, MSGE's business is diversified across concerts, entertainment events, theater productions, and venue operations. The Knicks are only one part of the broader Madison Square Garden ecosystem.
As a result, the championship's financial impact on MSGE is likely to be more indirect.
Stock Performance & Valuation Comparison
Year to date, MSGE and MSGS are both up around 40%, impressively topping the benchmark S&P 500’s +8%. In the last three years, both stocks have also outperformed the broader market, with MSGS spiking over 100% and MSGE up nearly 90%.
Image Source: Zacks Investment Research
Despite its slightly inferior performance, MSGE is the more attractively priced and valued stock. To that point, MSGE is currently profitable on a GAAP basis, while MSGS has often reported net losses despite owning two of the most valuable sports franchises in the world.
Considering such, taking into account their price-to-sales (P/S) valuation is a more meaningful comparison tool for investors rather than the P/E ratio. In this regard, MSGE stands out at just under 3X forward sales while having the more affordable stock price of around $70. Meanwhile, MSGS trades at over $370 a share and at roughly 8X forward sales.
Image Source: Zacks Investment Research
MSGE & MSGS Growth Comparison
Based on Zacks estimates, MSGE’s annual sales are expected to rise 9% this year and are projected to increase another 6% in fiscal 2027 to $1.1 billion.
More reassuring, MSGE’s annual earnings are currently slated to be up 4% in FY26 to $1.12 per share, with FY27 EPS projected to soar 105% to $2.30.
Image Source: Zacks Investment Research
Pivoting to MSGS, its top line is expected to expand 5% in FY26 but is projected to contract 4% next year back to just over $1 billion in annual sales.
MSGS is expected to post an adjusted loss of $0.51 a share in FY26, although a narrower loss of $0.25 a share is projected in FY27.
Image Source: Zacks Investment Research
Summary & Conclusion
For investors specifically looking to benefit from the long-term value of the Knicks franchise, MSGS is the more direct investment opportunity. The company's fortunes are closely tied to the value and popularity of the Knicks and Rangers, making it the purest way to invest in the championship story.
On the other hand, MSGE may appeal to investors who prefer a broader entertainment and venue-based business model. MSGE benefits from Knicks-related activity while also generating revenue from concerts, live events, and entertainment properties that are unrelated to professional sports.
That said, much of the upside potential for both stocks may already be priced in, especially for MSGS, considering it is still a ways away from posting positive earnings per share. For now, MSGE and MSGS both land a Zack Rank #3 (Hold) as better buying opportunities may be ahead, even with the Knicks' first championship in 53 years likely to add more mojo to their outlooks.