MSG stock has dropped $93 million since Jeremy Lin signed with the Rockets
Since Jeremy Lin signed his offer sheet with the Rockets, MSG's stock has dropped $93 million
When Lin made his first start for the Knicks Feb. 6, MSG shares were trading at $29.49. On July 5, the stock had risen more than 30 percent up to $38.80. Since Lin signed the "poison pill" offer sheet than might make it tough to retain him, shares have dropped to $35.50, an 8.5 percent fall.
Check out the impact of Lin on the stock via the New York Observer:
Now, I'm no market expert but obviously things like MSG are very big and are impacted by a lot more than just one single basketball player. There's a chance that this is merely coincidental and Lin's departure and the stock's fall are unrelated.
But then again, it sure appears that they're tied to together. With that final year in Lin's contract to put a major hit on New York's cap in 2015, the estimates were the Knicks would've had to pay a total of $50 million to retain Lin. Already in just a few days, in a roundabout way they've lost almost double that because he's gone.
Which is what makes it seemingly so clear that the decision to not match on Lin wasn't financially motivated. In terms of, the Knicks weren't that afraid of their luxury tax bill. Because not only is this the Knicks were talking about, a team never afraid to spend big, but there was a good chance another run at Linsanity could make James Dolan more money than he was losing.
Was it Dolan operating out of a sense of "betrayal," as a report indicated? Spite? Anger? Financial sensibility? Or could it be so simple to have been a basketball decision, where the Knicks didn't feel Lin fit with the current pieces?
Things a whole lot of Knicks fans are left wondering.
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