Tuesday, February 21, 2012

Madison Square Garden, Inc. (NASDAQ: MSG)

New York Knicks fans may have been disappointed at their team's loss to the rival New Jersey Nets on Monday night, particularly given that it marked the return of Carmelo Anthony. That said, the team is still currently riding on the momentum and sensations built by the rise of Jeremy Lin. While Lin and the Knicks have been on the headlines in ESPN or CNN, they have been featured in the Wall Street Journal as well. Most people may know Madison Square Garden, or simply MSG, as the iconic arena that is home to he Knicks. But it is also a $2.49 billion market cap publicly traded company on the NASDAQ.

As of Monday, February 13th, or about a week since Lin's rise in the Knicks, prices of MSG stock rose over 10% during the period, finishing at $32.32. As of Monday, February 20th, which didn't see trading due to President's Day, the price is still $32.85. With Knicks' recent success, it has meant more viewers: "MSG said its ratings for Knicks games are up 52 percent during Lin's four starts compared to the rest of the season." The recent spike has also put pressure on MSG and Time Warner Cable to settle their disputes, which has affected 2 million subscribers since Jan 1st; the dispute has recently been resolved.

As far as the company goes, MSG is divided into the business segments of MSG Sports, MSG Media and MSG Entertainment. With James Dolan as the CEO, MSG owns not only the Knicks, but also New York Rangers of NHL. As far as its financial statements go, the total equity has exceed total liability for each of the last 4 years. Revenue for Q4-2011 dropped from Q4-2010, but that is largely attributed to the NBA lockout. The success of the Knicks, with its new face of Jeremy Lin, will ultimately dictate the success of MSG.

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