http://www.sheridanhoops.com/2012/07/20/tweet-of-the-night-darren-rovell/ Tweet of the Night goes to Darren Rovell, who pointed out a very disturbing fall in value of Madison Square Garden shares. I didn’t major in finance, but when you fall $93 million in value in less than a week, something probably went terribly, terribly wrong. Somewhere out there in Houston, Jeremy Lin – as nice as he is – is probably laughing at this outrageous drop in numbers. Suffice to say, the decision to let Lin walk is a financial mistake James Dolan may not soon forget, no matter how loaded he is. Here’s a little more information on how Lin helped bring the value of MSG up in the first place: Just as Lin’s departure depressed MSG’s share price, his emergence from obscurity in carrying the nearly moribund Knicks on a seven-game winning streak in early February sent it soaring and helped MSG add US$71 million in market value over a six-month period.*The stock rose from US$29.32 on Feb. 3, the day before Lin’s first game-changing performance, to US$33.43 on Feb. 21, when “Linsanity” was at its height.*It continued its rise through the rest of the season and then peaked on July 3 at US$38.91, shortly after an arbitrator said Lin was eligible for an “Early Bird” exception, which most observers felt increased the chances he would stay with the team.* At the same time, the Linsanity phenomenon also brought capacity crowds back to Madison Square Garden for Knicks games.*It was also a key factor leading to the settlement of a long-lasting dispute on TV broadcasting rights between MSG and Time Warner Cable, which many believe will ultimately stand as Lin’s greatest fin Losing Lin is already costing the Knicks money, as well as fans. Your thoughts?
my thoughts? Its way overblown, there are MANY more factors involved in stock prices than most people talk about. read that six part series on Lin that has been posted for a more realistic look at the MSG = Lin relationship(check under the section titled "The Financials")
Here is the part of it Im talking about http://espn.go.com/nba/story/_/id/8179984/nba-jeremy-lin-six-degrees-separation-financials
This article doesn't say what you think it does? Lin directly influenced the jump because it was him being on the team that forced Comcast and MSG to reach an agreement that brought a lot of money to MSG. Had he not been on the team it is unlikely the agreement would have been reached. And yes, stock fluctuations are normal and this one will probably fix itself over time, but $50 million in a few days when Lin leaves the team is nothing to sneeze at.
no, it made the point I was tryin to make, that there are many factors involved in determining stock prices, Im not denying that there was *some* effect, but most people seem to be claiming that MSG stock price rises and falls solely on Lin.
It really doesn't support the argument at all unless what you mean is that Jeremy Lin existing didn't magically make the stock price go up. That would be true. But it was because of Jeremy Lin directly and the article says it as well. I see how it is confusing... This quote, that you bolded, seems to indicate that there is a bigger game afoot then just Jeremy Lin=money! The author then goes on to give you the bigger game: The problem is this reason is in fact the same as Jeremy Lin=money. The stock jumped because the affiliate negotiation between TW and MSG (I incorrectly called it Comcast in earlier post) was settled. The affiliate negotiation was settled ONLY because of Lin. If you read the articles from around the time, neither side was giving in until Lin came around and MSG ended up getting a very favorable deal. So, yes, the stock didn't jump because Jeremy Lin was playing good basketball. It jumped because people wanting to see Jeremy Lin forced TW to settle with MSG and make them a bunch of money. Jeremy Lin=money!
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It broke out on Linsanity. There is zero doubt that Linsanity caused MSG to break out to new highs. FWIW I made money short on MSG with the Lin FA departure.
Well, I dont claim to be a stock analyst or any sort of economist, I can just go by articles written by people who should know better. As such, I cant really engage you on a discussion of micro or macro economics...it just seems silly that people are moving stock in a company around based on a media sensation.....but I guess that is one of the reasons why our economy is thoroughly screwed.
Well it is isn't because they liked Jeremy Lin. It's because fans wanting to watch Jeremy Lin forced a television deal to happen that otherwise wasn't going to get done.
I'd call that somewhat of a happy accident for them...but its moot. That's what I get for tryin to apply logic to an illogical industry.
this dip is most definitely exacerbated by Lin's departure, though the agreement with Time warner should keep it above Jan '12 levels. If it dipped below that, it would be due to panic from lin's departure, and would be a good buy
