It may still just be August and the lockout may not have caused any lost games yet, but that doesn't mean it's not having an effect. For example: Via the NY Post, MSG's stock has been seriously downgraded as a result of the lockout.
The NBA lockout claimed a stock market victim Tuesday, as shares of New York Knicks parent Madison Square Garden Co. (MSG) were downgraded to neutral by Bank of America Merrill Lynch -- in part because of lost income caused by the work stoppage. "Despite our continued belief in MSG's robust long-term story ... we think the shares will be unlikely to outperform over the near term with $90 million of adjusted operating cash flow at risk from a full-season NBA lockout and a possible LA Forum acquisition on the horizon," the analysts wrote in a note.So stock projections are estimating that the entire NBA season could be lost. Isn't that wonderful? But what this means is that MSG, which is primarily owned by Knicks owner and serious negotiating power broker James Dolan, is already losing money. And not just because of the economy or other factors. But instead, as a direct result of the lockout.
They lowered their target price for the stock to $28. MSG agreed to buy the LA Forum concert venue late last year.
Shares of MSG were down a fraction to $22.72 at Tuesday's US market open.
Probably not enough to make Dolan waver and therefore influence other owners to get to bargaining a little more, but it's at least something to take note of.