Cubbies, Habs Boost MSG Value

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Collins Stewart media analyst Tom Eagan, who earlier this month pointed out how a sale of the NHL Montreal Canadiens would bolster valuations for Cablevision Systems sports teams, again revised his estimates based on the pending sale of Major League Baseball's Chicago Cubs.

In a research note Tuesday, Eagan said that based on reports that Tribune Co., the owner of the Cubs, has agreed to a $900 million deal with the family of TD Ameritrade founder Joe Ricketts, MSG could be worth as much as $1.9 billion, or about $3 per share. MSG includes the Madison Square Garden arena, MSG sports channels, the NBA New York Knicks and the NHL New York Rangers, among other assets.

Eagan had previously valued MSG at about $1.5 billion. But based on the Cubs and Canadiens deals - which still have to be approved by their respective leagues - Eagan now believes MSG is worth between $1.75 billion and $1.9 billion.
In May, Cablevision said it was exploring whether to split MSG off into a separate entity . It is hoped that more details may be offered by the time the company reports its second-quarter results, expected in August.

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