James Dolan ready to sell minority stakes in Knicks and Rangers: MSG chief executive

Controversial Knicks and Rangers owner James Dolan is willing to sell minority stakes in any sports franchise, his company said Tuesday during an earnings call.

Dolan, who has come under fire for using facial recognition technology to bar alleged legitimate enemies from his venues, has previously refused to accept offers for prize teams that are part of Madison Square Garden Sports.

However, during an earnings call, an analyst asked if the parent company of the Knicks and Rangers was considering taking advantage of the ongoing team valuation boom, as recently evidenced by the Phoenix Suns’ record $4 billion sale to the NBA.

“We have no plans to sell any team, and – you suggested to the Knicks – there are no current plans, but we certainly do not rule out the possibility of selling a minority stake in the Knicks or the Rangers,” said the president and chief operating officer. MSG Sports director David Hopkinson. said.

Hopkinson cited a recent Knicks valuation released by Sportico that the team’s value is estimated at about $6.6 billion, up 8% from the previous year, and the second-highest among NBA franchises.

Separately, Forbes ranked the Rangers as the NHL’s most valuable team with an estimated value of $2.2 billion, up 10% from last year.

Despite persistent rumors, Dolan, who is the executive chairman of both MSG Sports and standalone Madison Square Garden Entertainment, has been adamant for years that he will not relinquish control of any of the sports franchises.

Dolan, 67, reaffirmed his position during an interview with WFAN last month.

“At the moment I have no plans to sell” Dolan said. “I’m not retiring anytime soon. It’s a family-controlled asset, so eventually someone in the family will own it.”

Hopkinson noted that recent changes to the NBA’s ownership rules have opened up the possibility for private equity firms and sovereign wealth funds to acquire stakes in franchises.

“These are incredibly scarce assets, they have strong business fundamentals that we just reviewed, and we believe they have significant long-term growth potential,” Hopkinson said.

The company also owns the Westchester Knicks, a subsidiary of the NBA G League, and the Hartford Wolf Pack, a subsidiary of the American Hockey League’s Rangers.

Hopkinson stated that the stock value of MSG Sports is still well below the estimated value of its ownership. As of Tuesday, the company’s market valuation was $4.37 billion. Shares of the publicly traded company fell $1.13 to $178.60 after the earnings announcement.

“We remain encouraged by the continued increase in the team’s value valuation, as well as transactions that continue to significantly exceed those valuations,” Hopkinson said.

“Our recent share buyback program is a demonstration of that confidence—a recognition of the gap that remains between the current trading price of our shares and the intrinsic value of our leading sports franchises,” he added.

According to the income statement, MSG Sports’ revenue rose 22% to $353.7 million in the second quarter. Operating profit jumped 43% to $51.5 million.

“Our second quarter results reflect continued positive momentum across all key areas of our business following last year’s strong financials. We are confident in the strength of our sports franchises and in our ability to create long-term value for shareholders,” Dolan said in a statement.