John Rogers’ Ariel Investments Loves Madison Square Garden Entertainment: Should You?

Iconic & fun — but pricey and highly leveraged. Best bought on major dips? 🎤🏟️

NYSE: MSGE | $60.66 | +$1.31 (+2.21%)
As of Jan-14-2026, 4:10 PM ET

🎯 FunStock Index™: 7.1 / 10 🎯
Tooltip: A rare portfolio of irreplaceable entertainment assets with real pricing power — but wrapped in leverage, cyclical risk, and a stock that rarely goes on sale.

🎬 Flashback: When the Lights Were Still Dim

Let’s rewind the tape for a second. ⏪

Back in May 2025, when Madison Square Garden Entertainment (MSGE) was trading around $36.55, this stock wasn’t exactly headlining CNBC and we wrote a bullish article about it. No fireworks. No viral threads. No breathless takes about “the next big thing.”

And that’s precisely why it caught our eye.

At the time, the verdict was simple — and a little contrarian:

“It’s like the show you didn’t think you needed.”

MSGE wasn’t a growth rocket. It wasn’t pretending to be.
What it was — even then — was:

• Profitable

• Institutionally adored

• Loaded with cultural cachet

• And operating in a world that felt increasingly starved for… well, fun 🎤🏟️

In a market obsessed with AI chips and software margins, MSGE was selling something refreshingly analog: experiences. Real people. Real crowds. Real memories. No logins required.

If it was good enough for John Rogers, we figured it deserved at least a second look — maybe even an encore.

Fast-forward to today, and yes, the stock has had quite a run. The lights are brighter now. The crowd is bigger. The ticket price is higher.

🎭 Just don’t expect popcorn to get any cheaper.

The takeaway isn’t “look how smart we were.”
It’s this: sometimes the best investments aren’t the loudest ones — they’re the ones quietly filling seats while everyone else is chasing the next spectacle.

And like any great venue, MSGE tends to reward those who showed up before the house was full.

🏛️ What MSGE Actually Owns (and Why It Matters)

Madison Square Garden Entertainment is not just a company.
It’s a place in the American imagination.

This is where championships are decided, careers are launched, and “Piano Man” became a permanent residency before residencies were cool. It’s also where capital allocation meets culture, and where investors must decide whether owning the stage is worth paying front-row prices.

Let’s unpack why John Rogers of Ariel Investments loves this stock — and why patience matters if you want to join him.

MSGE is a pure-play live entertainment company with a portfolio that’s borderline unreplicable:

• 🎤 Madison Square Garden (the world’s most famous arena)

• 🎄 Radio City Music Hall (home of the Rockettes’ Christmas Spectacular)

• 🎭 Beacon Theatre

• 🎶 The Chicago Theatre

• 🎟️ Theaters, family shows, concerts, and premium experiences

These are monopoly-like assets in prime urban locations. You don’t “build another MSG” down the street. Zoning, history, brand equity, and geography all say no.

That’s the moat.

🎯 Trigger #1: John Rogers Is All In (Almost Literally)

John Rogers of Ariel Investments owns ~19% of MSGE, making it his top holding.

Ariel is not a momentum shop. Rogers is a long-term, fundamentals-first investor — and yes, a former Ivy League basketball captain who once beat Michael Jordan 1-on-1 (which alone deserves a footnote in investing history 🏀).

Key nuance:

• Ariel trimmed a bit recently

• But the position remains massive

• This is conviction ownership, not a trade

When a disciplined value investor holds nearly one-fifth of a company, it’s worth paying attention.

🧱 Trigger #2: Institutions Own… Everything (and Then Some)

Here’s where it gets fun — and a little absurd:

• 100%+ of shares held by institutions

• ~105% of the float owned institutionally

• Vanguard, BlackRock, Goldman Sachs, Morgan Stanley, Point72 — a full Wall Street roll call

How is that possible?
Because:

• Shares are lent

• Shorted

• Re-lent

• And recycled through prime brokers

Translation:
This stock is institutionally “spoken for.” Retail supply is thin. Liquidity can dry up fast on selloffs — and rip higher on good news.

🔍 For Madison Square Garden Entertainment (MSGE)'s Institutional Ownership breakdown, see here. 

🧸 Trigger #3: Shorts Are Rare (But Not Extinct)

Short interest sits around ~3.7% — modest, but not zero.

This isn’t a controversial stock. Bears aren’t piling in. Most skepticism is about valuation and leverage, not the business itself.

📊 Trigger #4: Analysts Are Moderately Bullish

Wall Street consensus:

• Moderate Buy

• Price targets clustered roughly $49–$58

• A few Conviction Buys (Goldman)

• A few Holds (JPMorgan, Wolfe)

Analysts like:

• Strong event demand

• Pricing power

• Sponsorship growth

• Buybacks

They worry about:

• Valuation

• Leverage

• Replacing lost mega-residencies (Billy Joel, we miss you 🎹)

💰 Trigger #5: Earnings Say “Momentum,” Not “Perfection”

Recent results show:

• Revenue up ~14% YoY

• Record concert volume at MSG

• Christmas Spectacular expanded to 215 shows

• $25M in quarterly buybacks; ~$205M since spin

Adjusted operating income is positive.
Reported operating losses reflect impairments and accounting noise, not collapsing demand.

This is a business with:

• Strong top-line momentum

• Improving operating leverage

• Shareholder-friendly capital returns

So far, so good.

👉 Want the full picture? Dive into Madison Square Garden Entertainment (MSGE)'s financials here.

⚠️ Trigger #6: Valuation & Leverage — The Real Story

Let’s not sugarcoat this.

📉 Valuation

• Trailing P/E: ~85 = very high 

• Forward P/E: ~28 = still elevated 

• EV/EBITDA: mid-20s

• Price/Sales: ~3×

This is not a bargain stock.

🧱 Leverage (The Red Flag)

• Debt/EBITDA: ~5×

• Debt/Capital: ~100%

• Negative equity (NYC accounting meets leverage gymnastics)

Context matters:

• These are hard assets with predictable demand

• Cash flow is improving

• Buybacks suggest management confidence

Still, leverage limits flexibility and magnifies downside if attendance or bookings falter.

🎟️ Why Investors Buy MSGE (The Bull Case)

• 🎤 Unmatched assets — MSG, Radio City, Beacon = irreplaceable

• 📈 Live entertainment demand is strong (experiences > things)

• 💼 Premium pricing power (suites, sponsorships, VIP)

• 🔄 Buybacks reduce float in a tightly held stock

• 🧠 Long-term ownership by serious investors

This is a quality company in a great business.

🧨 Why Caution Is Warranted (The Bear Case)

• 💳 High leverage leaves little margin for error

• 🎶 Loss of mega-residencies creates earnings gaps

• 🗽 NYC concentration risk

• 📉 Valuation already reflects a lot of optimism

• 🎢 Results can be lumpy (event-driven)

At least at current price, this is not a “set it and forget it” stock.

💡💡💡 Curious about another deep oil exploration play?
Check our take on UnitedHealth Group.

⚡ Quick Take / TL;DR

• 🏟️ MSGE owns some of the best entertainment assets on Earth

• 🧠 Top-tier investors are deeply invested

• 📈 Demand is strong; buybacks are real

• ⚠️ Leverage is high; valuation isn’t cheap

• 🎯 Best strategy: buy on major dips, not fireworks

Great company. Tricky timing.

❓ FAQ

Is MSGE a long-term compounder?
Potentially — but leverage makes timing and sizing important.

Is this a value stock?
Not at current prices.

Why do institutions own more than 100%?
Share lending and shorting mechanics — it’s crowded, not broken.

Would you buy here?
Personally? I’d wait for a pullback.

✍️ About the Author

Frédéric Marsanne is the founder of FUNanc1al — part market analyst, part storyteller, part accidental comedian. A longtime investor, entrepreneur, and venture-builder across tech, biotech, and fintech, he blends sharp insights with humor to help readers laugh, learn, live better lives, and invest a little wiser. When not decoding insider buys or poking fun at earnings calls, he’s building Cl1Q, writing fiction, painting, or discovering new passions to FUNalize.

🧾⚠️📢 Fun(anc1al) but Serious Disclaimer: 🧾⚠️📢

Madison Square Garden’s arena floor sits on springs above Penn Station — and the building literally rocks during big events. The stock can do the same. 🎢
MSGE is a high-quality business with high leverage and a premium price. Buy carefully, size wisely, and remember:

MSG is where Billy Joel sang “Piano Man,” but at today’s price, the stock may not be music to a prospective buyer’s ears.

This article is for informational and entertainment purposes only and is not financial advice. 

We laugh, we analyze, we meme. 
We’re FUNancial advisors — not financial advisors. 😄📉📈
Consult a qualified financial professional if you must.

Invest at your own risk. Love at any pace. Laugh at every turn. 😄
Be Happy. 😄😄 

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