There are a limited number of publicly traded sports teams available for investors across the various North American sports leagues.
One public company offers ownership of a leading National Basketball Association and National Hockey League team and enters the spotlight with potential legal challenges for the teams’ owner.
What Happened: For years the New York Rangers (NHL) and New York Knicks (NBA) have ranked among the most valuable sports franchises in their respective leagues. Both teams are part of the assets owned by publicly traded Madison Square Garden Sports Corp (NYSE:MSGS).
Fans have grown impatient with the performance of the Knicks in particular and for years have wanted majority owner James Dolan to sell the team. A new legal challenge could add a wrinkle into his years of not selling the team.
Earlier this week it was announced that Dolan was named in a lawsuit that alleges he sexually assaulted and trafficked a masseuse in 2013.
According to NBC Sports, plaintiff Kellye Croft said she was flown by Dolan from New York to Los Angeles where she expected to be the masseuse for Eagles lead singer Glenn Frey, while the band was on tour. Croft said that she was allegedly pressured into a sexual relationship with Dolan, was abused and introduced to disgraced film producer Harvey Weinstein, who also allegedly sexually assaulted her.
Dolan has denied any wrongdoing in the claims made by Croft.
NBA Commissioner Adam Silver was asked about the allegations and had little to say at the current time.
“I saw the article and don’t know anything else about it other than I read the article so we’ll stand by and wait to find out more information,” Silver said.
Weinstein also denied the allegations. The former film producer is currently serving time in prison in New York for a sexual assault conviction.
Why It’s Important: While the charges are at this point just charges and the lawsuit in the early days, it could have an impact on Dolan, the sports teams he owns and the public stock linked to the sports assets.
Dolan is the CEO of Madison Square Garden Sports and also the CEO of Madison Square Garden Entertainment Corp (NASDAQ:MSGE), which owns the…
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