Company’s Board of Directors has authorized a $75 million accelerated share repurchase (ASR) program, which the Company believes is prudent given the current trading price of its common stock relative to the intrinsic value of the Company’s professional sports teams. The return of value authorized by the Board through these actions totals approximately $250 million.
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 an immediate return to our shareholders, while the accelerated share repurchase program reflects our confidence in the value of our professional sports franchises.”
MSG Sports intends to enter into an ASR agreement after the Company reports financial results for the fiscal 2023 first quarter. The Company would repurchase shares under the ASR program as part of its existing share repurchase authorization, which has approximately $260 million remaining prior to the execution of the ASR program.
The Company expects to fund the special, one-time dividend and the ASR program through borrowings under its existing New York Rangers and New York Knicks revolving credit facilities, as well as through cash on hand.
