Investors can buy shares in the Atlanta Braves (BATRK) or Manchester United (MANU) and soon they will be able to do the same with the New York Knicks and New York Rangers after Madison Square Garden (MSG) splits off its entertainment businesses from its sports operations, which it may do sometime this year, Nicholas Jasinski writes in this week's edition of Barron's. While each is a real business, with revenues and profits, their stocks are driven more by private transaction valuations than they are by fundamentals, the author contended, adding that while the teams are unusual investments, at least they are investments

Every franchise in the National Football League, National Basketball Association, and Major League Baseball is worth over $1 billion—a price tag out of reach for most sports fans. But there is a way to own a tiny sliver of a few teams, for a more accessible price.

Investors can buy shares in the Atlanta Braves or Manchester United. Soon they will be able to do the same with the New York Knicks and New York Rangers, after Madison Square Garden (ticker: MSG) splits off its entertainment businesses from its sports operations, which it may do sometime this year. Liberty Braves Group (BATRK) is a holding of John Malone’s Liberty Media, which owns the Braves and their ballpark. Manchester United’s (MANU) chief subsidiary is Manchester United, a mainstay of English soccer and among the most popular sports brands in the world.

Liberty Braves and MSG have outperformed the market, up 39% and 75%, respectively, over the past three years, versus a 30% return, including dividends, for the Russell 2000 index. United’s stock, at a recent $19, is up just 23% over the same period.

While each is a real business, with revenues and profits, their stocks are driven more by private transaction valuations than they are by fundamentals. More billionaires seek trophy assets, but the number of franchises in the major leagues rarely increases.

“I think the valuations are generally less of a multiple on earnings or revenue but about looking at the deal price, if there’s going to be a deal,” says G.research analyst John Tinker. “Back in the day, you owned a plane, then you owned a jet—now, you want to own a team.”

Continue reading at Barron's.