MSG stock lost over $100 million since Jeremy Lin’s departure

[dtownsfinest]

MSG stock lost over $100 million since Jeremy Lin’s departure
Jeremy Lin, NBA, New York Knicks | Comments
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MSG stock is down 8.5 percent since the Knicks refused to match the Rockets offer sheet for Jeremy Lin. (Bill Baptist/NBA/Getty Images)

Chalk it up to bad luck or bad decision making, but the folks at Madison Square Garden and those who invest in that company can’t like what’s been going on the past couple of days.

MSG’s stock has lost over $100 million in the past five days, reports CBS News.com.

Speculation could be that investors are upset over point guard Jeremy Lin signing with the Houston Rockets when the New York Knicks had every opportunity to re-sign him.

When Lin made his first start on February 6, MSG stocks were at $29.49. Two weeks ago, the stock was sitting pretty at $38.80, a 30 percent jump, when many in the Knicks organization, including head coach Mike Woodson thought the Knicks would match the Rockets offer sheet for Lin.

The shares have now dropped to $35.50, an 8.5 percent fall.

 

[daking181]

good for Dolan, and i'm a Knicks fan

 

[SIDESHOW]

damn.

they'll bounce back, but still...

 

[Mo-Better]

To resign Lin was a no win situation. To not sign Lin has proven to be a public relations disaster. But I couldn't see giving an unproven player that much money. However Lin had become as big a celebrity to the NBA as LeBron, Wade and Kobe.

The knucklehead Knicks can't win no matter what.

 

[mathtest]

as a fan i will say lin doesn't deserve that much money yet

 

[Les W]

possibly coincidental... also remember the Nets are opening up shop in BK this quarter...

 

[doggish_098]

Lin's boys from Harvard who control the market said they will fix the knicks...

 

[Cybts1]

The Knicks have been making major errors since signing Bill Cartright to a huge contract with those "bad feet" of his.

 

[Mo-Better]

The Knicks have been making major errors since signing Bill Cartright to a huge contract with those "bad feet" of his.

Actually the Knicks haven't been right since they fucked over Bernard King.

 

[Southpaw]

The reason why is the China effect. A lot of people in China are going to be watching Rockets games instead of knicks and buying Lin jerseys.

 

[keone]

damn

 

[THE DRIZZY]

A no win situation. 3 max contracts already no way they were going to the lux tax for his third year. Not the mention the PR nightmare.

 

[OutlawR.O.C.]

as a fan i will say lin doesn't deserve that much money yet

Co-sign, I'd rather us take the hit now then to deal with it later if Lin proves to not be worth the money. IMO we made the right call, that was too much money to risk on someone with so little experience who was hurt at the end of the season.

I would have liked for us to be able keep Lin but not for that price.

 

[BDR]

Snicks been losers since Dolan took over in 1999

 

[Supersav]

lol at dolan taking a hit...stock will be right back when the season starts

 

[Rollie_Fingaz]

Winning will fix this.

 

[conspiracy Bro]

I told all of ya'll to short the stock.... .

 

[alexw]

lol at dolan taking a hit...stock will be right back when the season starts

This...Bgol stays talking out of their asses. In actuality, heres the real deal with the so called millions Lin was bringing in:

Furthermore, the Knicks calculated that Linsanity might not be worth as much as assumed. While the value of the Lin phenonemon has been much discussed, the Knicks saw it differently from most observers. Their season-ticket sales were strong and their sponsorships were stronger. Any money from the sale of Lin jerseys or Knicks' merchandise around the world goes into a leaguewide pool, with the Knicks getting the same portion as any other team, according to revenue-sharing rules. Likewise, their share of the league's TV contracts would not change whether Lin was on the team or not, no matter how many people in New York or Asia were watching.

http://espn.go.com/nba/story/_/id/8179081/nba-jeremy-lin-six-degrees-separation-new-york-knicks

After Lin burst on the scene, MSG saw its stock rise 7 percent from Feb. 7 to Feb. 16 -- a $170 million bump to the company's market cap. But equating the two directly would provide only a narrow view of the price action, said David Bank, an RBC Capital Markets analyst who covers MSG.

"The reason the stock moved [in February] was that there was an affiliate fee negotiation going on between MSG and Time Warner," said Bank. "That was devastating for MSG at the time, to not be showing Linsanity on air. However, because Linsanity hit at that moment, Time Warner had to go back and say, 'OK, we'll give you what you want.'"

On Monday, following reports that the Knicks might not match the Rockets' offer sheet, MSG's stock dropped 64 cents to $36. Overall, the stock price has dropped several percentage points in the wake of the Lin news. Analysts said the total value of MSG's tradable shares -- its market cap -- has decreased by approximately $50 million, or more, depending on the price at a given moment.

So there went the money the Knicks could have used to pay the luxury tax bill, right? Not so much. Fluctuations in MSG's stock price are not new.

Bank said the MSG stock price decrease probably was in response to the news that Lin might be heading to Houston, but that it would likely be only a short-term reaction.

"He had a nice impact while he was here," said Bank, "but I don't think his exit would stain or have near the amount of impact it would have had in February. It's like how big cap media stocks trade around the success or failure of a single movie. It drives trading short-term, but then the headlines fade."

http://espn.go.com/nba/story/_/id/8179984/nba-jeremy-lin-six-degrees-separation-financials​

 

[curryshotta]

Winning will fix this.

and they better

good teams as well

 

[dtownsfinest]

Winning will fix this.

Winning?

 

[shaddyvillethug]

NYC will forgot about that rice cooker in a few months.

 

[Brother Blaque]

Dam I didn't know the Knicks was so dam popular on BGOL....
I'm a Knicks fan and I don't give a fuck about MSG losing money....don't mean shit to me because Dolan 100 million is a drop in the bucket to him and he is STILL a BILLIONAIRE when he goes to sleep tonight.

All I give a fuck about is the Knicks getting on this upcoming season.​

 

[alexw]

Dam I didn't know the Knicks was so dam popular on BGOL....
I'm a Knicks fan and I don't give a fuck about MSG losing money....don't mean shit to me because Dolan 100 million is a drop in the bucket to him and he is STILL a BILLIONAIRE when he goes to sleep tonight.

All I give a fuck about is the Knicks getting on this upcoming season.​

you havent seen anything yet

wait until football starts

bgol goes crazy over my world champion cowboys

 

[shaddyvillethug]

you havent seen anything yet

wait until football starts

bgol goes crazy over my world champion cowboys

lakers
cowboys
bulls
knicks
heat


all are hot things on bgol that we go crazy over

 

[vandamation]

you havent seen anything yet

wait until football starts

bgol goes crazy over my world champion cowboys

You must be talking about the World Champions of MARS or SATURN... Because they AIN'T THE WORLD CHAMPS OF SHIT ON PANET EARTH...

 

[DragonXJC]

Alot of Chinese in New York and alot of them have money. That's a community you want on your side when it comes to business.

 

[Louis Koo]

 

[dtownsfinest]

lakers
cowboys
bulls
knicks
heat


all are hot things on bgol that we go crazy over

Nobody give a fuck about the Bulls though.

 

[Madrox]

...I'm confused with some of yalls confidence in the ability of Knick's mgt to put a winning team on the floor. What basis is there? From an outsiders view (havent followed any NBA team since Sheed left the Pistons, I only watch when its playoff time mostly) it seems like the Knicks were better off, and on there way to consistent winning BEFORE the Melo trade. Then, I actually tuned in and rooted for them when Lin started getting it in cuz they were actually FUN to watch.

I don't see where the confidence comes from in the moves they made. If any other team woulda picked up Kidd and Felton would yall considered that a significant upgrade?

Feel free to school me, as im just a casual fan here..

Sent from my Galaxy II using Tapatalk 2

 

[Yogi Bear]

Winning?

Who? The Knicks?

 

[bigman23]

The reason why is the China effect. A lot of people in China are going to be watching Rockets games instead of knicks and buying Lin jerseys.

yup lin had the number 2 selling jersey in the nba last year

 

[dtownsfinest]

...I'm confused with some of yalls confidence in the ability of Knick's mgt to put a winning team on the floor. What basis is there? From an outsiders view (havent followed any NBA team since Sheed left the Pistons, I only watch when its playoff time mostly) it seems like the Knicks were better off, and on there way to consistent winning BEFORE the Melo trade. Then, I actually tuned in and rooted for them when Lin started getting it in cuz they were actually FUN to watch.

I don't see where the confidence comes from in the moves they made. If any other team woulda picked up Kidd and Felton would yall considered that a significant upgrade?

Feel free to school me, as im just a casual fan here..

Sent from my Galaxy II using Tapatalk 2

If I were them i'd be regretting that Melo trade. I said then they gave up too much for a nigga that wanted to go to their team.

 

[unknownsoldier]

The reason why is the China effect. A lot of people in China are going to be watching Rockets games instead of knicks and buying Lin jerseys.

Maybe, but probably not...he's Taiwanese not Chinese. In addition, he's American born. Not a Chinese legend sent to America to dominate like Yao.

 

[shaddyvillethug]

Nobody give a fuck about the Bulls though.

as long as there is talk about jordan in anyway shape or form.