By Nate Wolf
The New York Knicks gave shareholders of Madison Square Garden Sports a boost, defeating the Cleveland Cavaliers 130-93 Monday night to make their first National Basketball Association Finals since 1999.
The blowout win capped off a four-game sweep in the best-of-seven Eastern Conference Finals series. The Knicks will now face either the San Antonio Spurs or the Oklahoma City Thunder in the NBA Finals starting June 3.
MSG Sports, which owns both the Knicks and the National Hockey League's New York Rangers, jumped 3.7% in premarket trading Tuesday.
Shares have climbed 37% this year and 86% over the last 12 months after stagnating for the previous eight years. The value of sports franchises has skyrocketed recently, with the NBA's Los Angeles Lakers and Boston Celtics selling for $10 billion and $6.1 billion, respectively, in the last year.
MSG Sports is contemplating separating the Knicks and Rangers through a tax-free spinoff, which could unlock more value for investors. The holding company has a market capitalization of $8.5 billion, while the Knicks and Rangers are likely worth a combined $13 billion. MSG Sports was a Barron's stock pick last September.
Television and ticket revenue, geography, and sponsorships all contribute to a franchise's value, but winning never hurts. That said, the Knicks will be the underdog in the Finals: Traders on Polymarket currently give the team a 29% chance of winning it all.
Write to Nate Wolf at nate.wolf@barrons.com
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May 26, 2026 08:14 ET (12:14 GMT)
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