From Nasdaq Inc.:

There are a limited number of publicly traded sports teams available for investors across North American sports leagues. One such team is the New York Rangers (NHL) and New York Knicks (NBA), owned by Madison Square Garden Sports Corp (NYSE: MSGS). However, the owner, James Dolan, is facing legal challenges after being accused of sexual assault by a masseuse in 2013.

The lawsuit alleges that Dolan sexually assaulted and trafficked a masseuse, claims that he has denied. NBA Commissioner Adam Silver had little to say about the allegations, while Weinstein also denied the accusations. These allegations could have a significant impact on Dolan, the sports teams he owns, and the public stock linked to the sports assets.
Dolan, the CEO of Madison Square Garden Sports and the CEO of Madison Square Garden Entertainment Corp, owns Madison Square Garden where the Knicks and Rangers play. There is a chance that Dolan may face punishment from the NBA, reminiscent of Los Angeles Clippers previous owner Donald Sterling, who was forced to sell the team and received a lifetime ban from the league due to racist statements and complaints.
There are increased interests in stakes in sports teams, with private equity company Silver Lake previously expressing interest in owning a larger stake in MSG Sports. The Rangers were valued at $2.45 billion and the Knicks at $7.43 billion in 2023. Such high valuations, coupled with potential forced sales by the NBA or NHL, could unlock value for shareholders. Madison Square Garden Sports shares are currently trading at $185.28, with a 52-week trading range of $164.79 to $215.79. This follows a 4% increase in the last year and a 0.1% rise over the last five years.
Despite being just allegations at this point, the legal challenges faced by James Dolan could have serious implications for him, the sports teams he owns, and the public stock linked to the sports assets. The impact this may have on the NBA, the potential for forced sale of the teams, and the high valuations of the Knicks and Rangers highlights the potential significance of this situation for shareholders and sports enthusiasts alike.



Read more: New York Knicks Owner Faces Lawsuit, Could Legal Troubles Lead To Sale Of NBA Team? Madison Square Garden Sports Could Excite Sports Fans, Investors