Madison Square Garden Sports Corp. ( MSGS ) stock is trading higher on Thursday after the Boston Celtics were sold for $6.1 billion, raising the bar for NBA team valuations.

What to Know: A group led by William Chisholm and supported by the private equity firm Sixth Street is set to acquire the Boston Celtics for $6.1 billion, according to Sportico, citing sources familiar with the matter.

The deal was formally announced Thursday morning in a letter to Celtics investors from Wyc and Irving Grousbeck, who are part of the team's current ownership. Wyc Grousbeck is expected to remain the team's governor until the conclusion of the 2027-28 season.

The initial payment sets the team's valuation at $6.1 billion, while a combined valuation places the total deal at approximately $6.6 billion. As part of the arrangement, Sixth Street will provide over $1 billion in financing.

This deal values the Celtics above previous valuations, with CNBC estimating the team’s worth at $5.5 billion. Madison Square Garden stock may be rising following the deal, as the company owns the New York Knicks, ranked as the second-most valuable NBA team at $7.5 billion, per CNBC. The acquisition of the Celtics suggests investors are willing to pay a premium for sports teams.

See Also: Jabil Posts Better-Than-Expected Earnings, Joins Darden Restaurants, QXO, Five Below And Other Big Stocks Moving Higher On Thursday

MSGS Price Action: At the time of writing, Madison Square Garden shares were up 2.54% at $199.63, according to data from Benzinga Pro.

Image: via Madison Square Garden