MSGS - MSG Sports rises on plan to return $250M in capital to holders

Madison Square Garden Sports ( NYSE: MSGS ) has announced a plan by which it wants to return about $250M to its shareholders, via a special dividend and accelerated buyback.

The stock is 2.6% higher after hours.

The board declared a one-time cash dividend of about $175M, amounting to $7 per share . That dividend is payable Oct. 31 to shareholders of record on Oct. 17.

The board also authorized a $75M accelerated share repurchase program, which it plans to enter into after it reports results for the fiscal 2023 first quarter. MSGS believes the buyback is "prudent given the current trading price of its common stock relative to the intrinsic value of the Company’s professional sports teams."

"Today's announcement follows the company’s strong fiscal 2022 financial performance and demonstrates our ongoing commitment to delivering shareholder value," says Executive Chairman James Dolan.

The buybacks will come as part of its existing authorization, which has about $260M remaining before launching the accelerated program.

The capital returns will be funded through borrowing under existing New York Rangers and New York Knicks revolving credit facilities along with cash on hand.

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