Blog Entry

MSG stock downgraded because of the lockout

Posted on: August 23, 2011 5:27 pm
 
Posted by Royce Young

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.

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.

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.

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.
Comments

Since: Jun 8, 2011
Posted on: November 25, 2011 9:34 am
 

MSG stock downgraded because of the lockout

Thanksgiving and still no NBA as I walked past MSG after the Macy's-DayParade. This sucks. And then I find out today that Obama is selling tickets as a fund raiser.

General admission tickets will sell for around $200, whereas the premier court side seats will go for around $5000.

Some of the names confirmed consist of Ray Allen, Vince Carter, Kevin Durant, Baron Davis, Blake Griffin and Kevin Love, whilst Magic Johnson, Patrick Ewing and many other past stars will also be playing. Derek Fisher will appear on the court for the first time since his Lakers were swept way back in May, which may be an F U to the NBA and the owners.

Who would buy a ticket for this when we are all waiting for our refund for all the cancelled games so far? 



The views expressed in this blog are solely those of the author and do not reflect the views of CBS Sports or CBSSports.com