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MSG Sports To Repay Shareholders $250 Million

MSG Sports To Repay Shareholders $250 Million

Madison Square Garden Sports Corp. (MSG Sports) has announced it will be repaying shareholders USD$250 million (AUD$390 million) through a one-time cash dividend, as well as an accelerated share repurchase program.

MSG Sports board of directors have declared a dividend of USD$7.00 (AUD$$11.00) per share, or approximately USD$175million (AUD$275 million) total, payable on October 31 to shareholders on October 17.

MSG Sports expects to fund the dividend through borrowings under existing revolving credit deals.

Additionally, the company’s board of directors has authorised a USD$75 million (AUD$117 million) accelerated share repurchase (ASR) program that they will enter following the release of the company’s fiscal 2023 first quarter financial results.

Owners of several New York based sporting clubs, including the New York Knicks in the NBA, and the New York Rangers in the NHL, MSG Sports has chosen now to execute the program due to the current trading price of their common stock when compared to the intrinsic value of their sports teams.

Commenting on the announcement, MSG Sports executive chairman, James L. Dolan, said: “Today’s announcement follows the company’s strong fiscal 2022 financial performance and demonstrates our ongoing commitment to delivering shareholder value.”

“The special one-time dividend provides and immediate return to our shareholders, while the accelerated share repurchase program reflects our confidence in the value of our professional sports franchises,” he said.

The announcement follows a recent change in the leadership of MSG Sports with Andrew Lustgarten having stepped down from CEO and president to join the organisations board of directors in 2023.

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