Illustration: Lorenzo Gordon
Sphere Entertainment, operator of the newly opened landmark Las Vegas arena and MSG regional sports network, led all sports stocks in March, with CEO Jim Dolan having the highest personal stake in the past five years. It rose more than 20% in the same month as it almost doubled its rights. several weeks.
Sphere was the best performer of the month. sportico The Sports Stock Index tracks the state of the sports business as reflected in 40 U.S.-listed team, media, equipment, and gambling stocks. In March, the index rose one point to end at 1,169. This puts the index up just over 1% for the year and nearly 12% since the start of 2020.
Dolan began the year directly owning approximately 385,000 shares. ball (SPHR), his holdings have nearly doubled since the end of February, according to SEC filings. The executive spent about $16.4 million to add about 354,000 additional shares to his ownership. However, it does not include shares held by his wife, children, or the Dolan Family Trust, which controls the majority of the company's voting stock.
Interestingly, this executive has sold stakes in two other public companies he leads and owns the venue. madison square garden entertainment (MSGE3% increase) and MSG Sports (MSGS, -2%) parent of the Knicks and hockey Rangers. Mr. Dolan sold a total of $20.9 million between the two companies in 2024, after accounting for estimated federal and New York state capital gains taxes, according to data compiled by market research firm Vickers. approximately equal to the investment amount. “Mr. Dolan sold a small portion of his shares, but he continues to hold significant stakes in both MSG Entertainment and MSG Sports, and also receives company stock as a significant part of his compensation.” ” said an MSG spokesperson in an email.
Insider reading is an active practice on Wall Street, with stock purchases by executives considered to be more predictive than stock sales. As it turns out, there are many good reasons why insiders sell – estate planning, financing, the cost of buying a yacht, etc. – but there's only one reason to buy stock: They believe the stock will go up in value. I'm saying that.
Dolan's move thus quickly paid off. The highest price he paid for Sphere stock on March 11 was $47.87. The stock ended the month at $49.08. He began buying the stock in late February at about $41.33 per share, according to SEC filings. In early February, Sphere reported strong quarterly results, driven primarily by the strength of its Las Vegas venue. In particular, Wall Street analysts said the venue promises to host multiple events every day of the year, from a daytime planetarium-like “Sphere Experience” to evening concerts and late-night post-concert events. seems to be interested in
The RSN division of the business has received little attention from analysts, with some concerned that a deterioration in the cable sports model could weigh on results. “How long the transition from linear to streaming will take and how consumers will consume it and what they will pay for it are important questions that remain unanswered,” Dolan said in February. told analysts at the company's financial results conference. If you believe the insider buying is a signal, Dolan's move suggests that he believes MSG Networks will not block an acquisition of Sphere in the coming quarters.
Strong earnings results and a bullish outlook also boosted many other stocks. sportico Of those, 25 stocks rose in March. sports radar (S.R.A.D.) rose 19% in the month on expectations that sports-related revenues will grow faster than official broadcast rights fees. Executive sales tend to be seen as neutral, but Carsten Kohl's sale of $35 million in SportsRadar stock did not hurt sentiment. Kohler said. sportico The sale would pay wealth taxes imposed in Europe. Sportsradar stock is currently at a seven-month high of $11.64.
Most other sports betting stocks also rose during the month. rush street interactive (RSI, up 17%) The merging Brazilian sports betting and mobile casino markets are performing well. Betway's parent company is also backed by Brazil's momentum wonderful group (S.G.H.C.an increase of 7%). draft kings (DKNG7% increase), caesars entertainment (CZR6% increase), churchill downs (CHDN1%) and pen national gaming (pen1%) were also betting gainers.
The biggest decline in March was shift 4 payment (four) According to the Telegram, a lower-than-expected bid dashed hopes of a takeover, sending the company down 23%. The company, which specializes in mobile payments, has targeted sports arenas for growth, recently adding Yankee Stadium and MetLife Stadium with the acquisition of competitor Appetize. Management has also said it will soon announce a major stadium deal in Europe.
Overall, 15 of the index stocks fell in March. Other stocks with significant declines are: Prefectural security (Father and mother23% decrease) under armor (UAA18% decrease) and genius sports (17% decrease).
of sportico The sports stock index debuted at 1,000 in August 2020. This is an equally weighted 40-stock index, and every quarter each of the 40 stocks is reset to his 2.5% of the index. Additionally, this quarter he had two stocks traded exclusively over-the-counter in the US.juventus (JVTSF15% increase), and Borussia dortmund (Volf-1%) — removed from the index due to inconsistently sufficient trading volume in the United States
What is added to the index is amer sports (as(Up 2%), the parent company of Salomon skis and Wilson tennis rackets and balls, went public earlier this year.Ski resort management company bail resort (MTN, 2% down) has also been added. Vail recently reported weaker sales as warmer weather adversely affected business results.
