MSG loses $90 million in value since the end of linsanity

[bluechox2]

Im happy to see this, dolan can suck it:rockon:

[It's A VC3!!!]

Lin should have been re-signed despite his salary. James should have predicted the backlash of letting Lin go. I think there's too many people blaming Dolan and not Lin for not negotiating a contract with the Knicks prior to accepting a Ludacris contract.

[Rekindled]

Lin should have been re-signed despite his salary. James should have predicted the backlash of letting Lin go. I think there's too many people blaming Dolan and not Lin for not negotiating a contract with the Knicks prior to accepting a Ludacris contract.

it was never about money tho.

dolan held a personally grudge against Lin, that's why he got rid of him

[WhySoInsecure?]

Im happy to see this, dolan can suck it:rockon:
It's only the stock, if the season starts and they're winning it will go back up. The stock price doesn't really mean much to Dolan if he's not planning on selling his shares.

[bluechox2]

It's only the stock, if the season starts and they're winning it will go back up. The stock price doesn't really mean much to Dolan if he's not planning on selling his shares.
i know, but if lin was matched, id expect those stocks to soar even high

[bleedinpurpleTwo]

how did they lose $90 million. The new TV contract was already executed and tickets already sold out prior to losing Lin. Must be advertising?

[PejaNowitzki]

how did they lose $90 million. The new TV contract was already executed and tickets already sold out prior to losing Lin. Must be advertising?


http://lmgtfy.com/?q=how+the+stock+market+works

[It's A VC3!!!]

it was never about money tho.

dolan held a personally grudge against Lin, that's why he got rid of him
I don't think it's accurate to say " it's not about the money" only one team would pay Lin 15 million in one year. That number set a lot of people off. James frustration with Lin was a huge factor too. But the money certainly played a role.

It's hilarious how a lot of Knick fans aren't even true fans of the Knicks but rather NY fanboys. To lose a hundred million because of one player is ridiculous. I could have stopped being a fan of the nets when they lost my two favorite players of all time in vc and kidd. It's absurd the amount of backlash and losses the Knicks are suffering because of Lin.

[brantonli]

how did they lose $90 million. The new TV contract was already executed and tickets already sold out prior to losing Lin. Must be advertising?


Wow I'm surprised, you know how the stock market works? MSG's stock went from $29.32 pre-Linsanity and traded at $36, I think it's now down to $35.8 It's that their market cap has declined by $45 million (where did $90 mil figure come from?)

[PejaNowitzki]

It's only the stock, if the season starts and they're winning it will go back up. The stock price doesn't really mean much to Dolan if he's not planning on selling his shares.


Yeah but it means something to all the other shareholders. MSG isn't a privately-owned company, you can bet Dolan is getting a lot of heat for ****ing them over, albeit temporarily. As the Executive Chairman of MSG, he had a fiduciary responsibility to make decisions in the best fiscal interest of the company and in this situation he seems like he's harboring more of a grudge than anything else. It'd be different if Dolan owned the Knicks separately, apart from MSG but they are all packaged together.

[Warners0]

Link or Go away

[fatboy11]

Yeah but it means something to all the other shareholders. MSG isn't a privately-owned company, you can bet Dolan is getting a lot of heat for ****ing them over, albeit temporarily. As the Executive Chairman of MSG, he had a fiduciary responsibility to make decisions in the best fiscal interest of the company and in this situation he seems like he's harboring more of a grudge than anything else. It'd be different if Dolan owned the Knicks separately, apart from MSG but they are all packaged together.

Especially after it was said that they would match all offers up to one billion dollars.

All the talk of the luxury tax impact in the 3rd year is overblown because we have no idea what the payroll would look like then. Chandler, Stoudemire and Anthony are all expirers that season. Easy to move.

[bluechox2]

Wow I'm surprised, you know how the stock market works? MSG's stock went from $29.32 pre-Linsanity and traded at $36, I think it's now down to $35.8 It's that their market cap has declined by $45 million (where did $90 mil figure come from?)
RT @fivethirtyeight: So far this week: MSG (Knicks) stock has underpeformed market by 3.3% on Lin news. Equivalent to $90m in lost mark ...

[PejaNowitzki]

Especially after it was said that they would match all offers up to one billion dollars.

All the talk of the luxury tax impact in the 3rd year is overblown because we have no idea what the payroll would look like then. Chandler, Stoudemire and Anthony are all expirers that season. Easy to move.


With Lin I think even if you had to match the max you should, he's extremely marketable and would make any franchise a considerable sum of money in a way that the average free agent won't. It was a bad business decision by the Knicks, maybe a good basketball decision, horrible business decision.

[edrick]

It's a big deal, obviously, but what really matters is how well the Knicks perform this upcoming season.

[PejaNowitzki]

RT @fivethirtyeight: So far this week: MSG (Knicks) stock has underpeformed market by 3.3% on Lin news. Equivalent to $90m in lost mark ...


Its not done yet....you'll see the big hit when the window to match the offer officially passes. MSG saw a stock jump of about 20-30% as compared to pre-Linsanity, now that he's gone I predict it'll settle back down to $31-32 a share.


http://fivethirtyeight.blogs.nytimes.com/2012/07/16/keeping-lin-should-make-financial-sense-for-the-knicks/



"On the mere possibility that Lin might not be re-signed, MSG stock had lost about $50 million in market value," notes Nate Silver of the New York Times. He points out that this is "roughly as much as the salary and luxury tax that the Knicks would need" to pay to keep Linsanity buzzing in the Garden for the next few years.




The Knicks seemed to be doing everything in their power to encourage the trend. At the team stores around the arena, a wall of Lin bling dominated the displays, while gear for the Knicks’ other high-priced stars — Chandler, Amare Stoudemire and Carmelo Anthony — was consigned to the sale racks. (Lin jerseys eventually outsold those of all other Knicks — and all other players in the N.B.A. except Derrick Rose of the Chicago Bulls.)



Investors were quick to recognize the marketing bonanza. The market capitalization for the Knicks’ publicly traded parent company, The Madison Square Garden Company, added about $250 million in value in February alone, and has gained roughly $600 million overall since Lin’s first start.




$250 million in value in February, now they are arguing over what is relatively peanuts...20, 30, 40 mil.....etc.




The number of Google searches for Lin’s name over the past six months exceeds that of LeBron James — and is about four times as many as those for Anthony, Stoudemire and Chandler combined.



Bottom line? Knicks ****ed themselves, their shareholders and their fans. How incompetent can one franchise be?

[ripthekik]

:roll: :roll: :roll:
I saw this earlier.. Knicks can suck it.
Lin did what he was supposed to do, which is trying to get a better contract. So what if he "double-dipped", it's not like he can straight up tell Rockets, hey pay me more. The Rockets AGREED to it and they were willing to do it. If there is another team with a higher offer he shouldn't go there since he agreed to Rocket's first offer? Meh. He has value, and it's only right he maximized himself. Too bad the Knicks didn't want to match up.

Knicks will rot for a few more years with Melo at the helm. Congrats guys, no one outside NY will care and watch the games like people did last year.

[Sarcastic]

Should the Knicks make decisions based what brings them revenue, or what will help them win basketball games?

[The_LA_Blakers]

I don't think it's accurate to say " it's not about the money" only one team would pay Lin 15 million in one year. That number set a lot of people off. James frustration with Lin was a huge factor too. But the money certainly played a role.

It's hilarious how a lot of Knick fans aren't even true fans of the Knicks but rather NY fanboys. To lose a hundred million because of one player is ridiculous. I could have stopped being a fan of the nets when they lost my two favorite players of all time in vc and kidd. It's absurd the amount of backlash and losses the Knicks are suffering because of Lin.


Why would James have any reason at all to not like Lin? Seriously, the kid is unselfish, brought a ton of excitement, put all kinds of cash in his pocket, what would he have against Lin???

[PejaNowitzki]

Should the Knicks make decisions based what brings them revenue, or what will help them win basketball games?


A smart franchise will do both. Lin was basically a no-brainer as the Knicks will now need to add a young PG anyways as Kidd is over the hill and Felton is one Old Country Buffet binge away from having a coronary.

[It's A VC3!!!]

Why would James have any reason at all to not like Lin? Seriously, the kid is unselfish, brought a ton of excitement, put all kinds of cash in his pocket, what would he have against Lin???
Lin went to houston to quickly accept the offer sheet before negotiating a contract with James Dolan first. At first the contract was a 24/3 deal and Lin told morey that James said he will match. Morey then raised the thir year to 15. Million knowing James would match. Lin was a sneaky slimeball in this situation.

[hawkfan]

If Felton and Kidd both get hurt, which I certainly hope doesn't happen, but is possible, the Knicks don't have a third string point guard who can start on a consistent basis.

Hopefully Felton will report in shape.

Who knows - maybe Felton will have a really good year.

[It's A VC3!!!]

If Felton and Kidd both get hurt, which I certainly hope doesn't happen, but is possible (due to Felton being over 30 and Kidd being over 40), the Knicks don't have a third string point guard who can start on a consistent basis.
Felton is only 28

[PejaNowitzki]

Felton is only 28


Age or pounds overweight?


http://abasketballjones.com/wp-content/uploads/2012/07/Raymond-Felton-looking-fat.jpg


http://cdn.bleacherreport.net/images_root/article/media_slots/photos/000/346/216/raymond-felton-cupcake_original.jpg


Dude has moobs for crying out loud.

[hawkfan]

Felton is only 28

I edited it. My mistake.

[It's A VC3!!!]

Age or pounds overweight?
Both.
He's still really young. 28 is not old at all for an NBA player. He does need to show up committed though and I anticipate he will. Nets all the way though!!! :D

[ripthekik]

Lin went to houston to quickly accept the offer sheet before negotiating a contract with James Dolan first. At first the contract was a 24/3 deal and Lin told morey that James said he will match. Morey then raised the thir year to 15. Million knowing James would match. Lin was a sneaky slimeball in this situation.
Is a team not allowed to raise???
Lin didn't have to tell Morey anyways.. it was all over the news the Knicks said they would match. It was clearly a business option for Rockets to raise. Knicks didn't match, they made the right move.

This is like playing texas poker. Knicks folded.

[wang4three]

Age or pounds overweight?


http://abasketballjones.com/wp-content/uploads/2012/07/Raymond-Felton-looking-fat.jpg


http://cdn.bleacherreport.net/images_root/article/media_slots/photos/000/346/216/raymond-felton-cupcake_original.jpg


Dude has moobs for crying out loud.

I really hope these are not recent photos.

[PejaNowitzki]

I really hope these are not recent photos.



Supposedly the top one was taken within the last 2 weeks. :wtf:

[The_LA_Blakers]

Lin went to houston to quickly accept the offer sheet before negotiating a contract with James Dolan first. At first the contract was a 24/3 deal and Lin told morey that James said he will match. Morey then raised the thir year to 15. Million knowing James would match. Lin was a sneaky slimeball in this situation.


You sure about all this he said she said stuff? Lin has character and this is the first time he's been in this situation. Maybe his agent got greedy?? I doubt Jeremy would do that.

[It's A VC3!!!]

You sure about all this he said she said stuff? Lin has character and this is the first time he's been in this situation. Maybe his agent got greedy?? I doubt Jeremy would do that.
Lin has a buisness degree from harvard. He knew exactly what he was doing.

[ripthekik]

Lin has a buisness degree from harvard. He knew exactly what he was doing.
You don't need a business degree from Harvard to tell you that you should bargain so you can get a higher offer..

[FireDavidKahn]

It's the Knicks fault for not even offering a contract. If their whole plan was to just match whatever he got offered in FA then it's their own damn fault.

[The_LA_Blakers]

Lin has a buisness degree from harvard. He knew exactly what he was doing.



business degree or not, Lin did nothing wrong. Even if he did tell his agen to ask for more money, so what? Do you know how much cash he made the knicks as an organization?

[NumberSix]

business degree or not, Lin did nothing wrong. Even if he did tell his agen to ask for more money, so what? Do you know how much cash he made the knicks as an organization?
How exactly did he make them any money? Doesn't MSG sell out every game anyway? :confusedshrug:

[DuMa]

How exactly did he make them any money? Doesn't MSG sell out every game anyway? :confusedshrug:

jersey sales, random merchandise, opening new MSG markets in japan and small parts of asia.

that is money, my friend.

[Sarcastic]

How exactly did he make them any money? Doesn't MSG sell out every game anyway? :confusedshrug:

The people that get hurt are the season ticket holders that resell on stubhub. The price of tickets on the secondary market shot up during Linsanity, but MSG doesn't see that money.

[FireDavidKahn]

How exactly did he make them any money? Doesn't MSG sell out every game anyway? :confusedshrug:
Stock markets, how do they work?

[NumberSix]

Lin should have been re-signed despite his salary. James should have predicted the backlash of letting Lin go. I think there's too many people blaming Dolan and not Lin for not negotiating a contract with the Knicks prior to accepting a Ludacris contract.
http://www.sohh.com/img/Ludacris-2010-02-01-300x300.jpg

[The_LA_Blakers]

How exactly did he make them any money? Doesn't MSG sell out every game anyway? :confusedshrug:


You do realize there's other avenues of income involved in professional sports don't you? Things like TV deals, jersey sales, increasing the price of tickets because the demand goes up, selling shares of the team, etc.

[NumberSix]

jersey sales, random merchandise, opening new MSG markets in japan and small parts of asia.

that is money, my friend.
You're aware that those revenues are shared, right? :confusedshrug:

The Milwaukee Bucks make just as much off every LeBron James jersey sold as the Miami Heat do.

The Knicks will make exactly as much money off every Jeremy Lin Jersey sold whether it's a Knicks jersey, Rockets jersey or whoever else.

[NumberSix]

You do realize there's other avenues of income involved in professional sports don't you? Things like TV deals, jersey sales, increasing the price of tickets because the demand goes up, selling shares of the team, etc.
Like I said, jersey sales are spread evenly across all 30 franchises, regardless of which player or team the jersey is. Every franchise gets an equal slice.

[The_LA_Blakers]

Like I said, jersey sales are spread evenly across all 30 franchises, regardless of which player or team the jersey is. Every franchise gets an equal slice.


Well then they still see an increase in revenue from that, don't they.


And there's a whole list of other ways they benefit, bra.

[NumberSix]

Well then they still see an increase in revenue from that, don't they.


And there's a whole list of other ways they benefit, bra.
Ok, you said TV deals and ticket prices.

Tickets sell out for every game. I don't see how the demand goes past already selling out every game.

As for TV deals, the MSG group already owns their own TV network.

[PejaNowitzki]

Ok, you said TV deals and ticket prices.

Tickets sell out for every game. I don't see how the demand goes past already selling out every game.

As for TV deals, the MSG group already owns their own TV network.


You do realize that MSG's stock price went up roughly about 20% once Linsanity started, the overall increase in value to those stocks went up by $600 million dollars. Since the Rockets announced their offer to Lin the value of MSG stock has plummeted by a total of 100 million. Additionally MSG has worked out certain agreements with Chinese television stations that were contingent upon Lin staying on the team, those are now toast.

[NumberSix]

:applause:


You do realize that MSG's stock price went up roughly about 20% once Linsanity started, the overall increase in value to those stocks went up by $250 million dollars. Since the Rockets announced their offer to Lin the value of MSG stock has plummeted by a total of 100 million. Additionally MSG has worked out certain agreements with Chinese television stations that were contingent upon Lin staying on the team, those are now toast.
Look, maybe people don't agree with me, but for what you're saying to be true, you'd have to believe that "Linsanity" would continue. Call me crazy, but I think the kid will fade away half way through the next season. He's just flat out not that good. I can't see him being any better than Ramon Sessions.

Just my opinion, but I think his percieved value will plummit to about Luke Ridnour status by January.

[ripthekik]

Ok, you said TV deals and ticket prices.

Tickets sell out for every game. I don't see how the demand goes past already selling out every game.

As for TV deals, the MSG group already owns their own TV network.
You're an idiot if you don't think Lin made Knicks a whole damn lot of money last season..

not even worth explaining.. if you haven't gone to college yet, just remember to pick the classes econ101 and marketing 101

[dgaras]

Look, maybe people don't agree with me, but for what you're saying to be true, you'd have to believe that "Linsanity" would continue. Call me crazy, but I think the kid will fade away half way through the next season. He's just flat out not that good. I can't see him being any better than Ramon Sessions.

Just my opinion, but I think his percieved value will plummit to about Luke Ridnour status by January.

your opinion. who the fuc are you? nobody. yours isnt even in the top 5 billion.

[NumberSix]

You're an idiot if you don't think Lin made Knicks a whole damn lot of money last season..

not even worth explaining.. if you haven't gone to college yet, just remember to pick the classes econ101 and marketing 101
Didn't go to college. Didn't even finish high school, but I seem to be doing just fine without it. I'm not even 30 and I'm already retired. I think my business sense is just fine.

:hammertime:

[ripthekik]

Didn't go to college. Didn't even finish high school, but I seem to be doing just fine without it. I'm not even 30 and I'm already retired. I think my business sense is just fine.

:hammertime:
Proving my hypothesis based on your posts right.
And I have no problem with not going to college, but don't act like you know a topic if you truly don't know the ins and outs of it. You're only going to embarrass yourself.

Enjoy your retirement.

[SpecialQue]

Didn't go to college. Didn't even finish high school, but I seem to be doing just fine without it. I'm not even 30 and I'm already retired. I think my business sense is just fine.

:hammertime:

inb4 someone posts a pic of NumberSix as a homeless dude using a library computer.

[The_LA_Blakers]

Ok, you said TV deals and ticket prices.

Tickets sell out for every game. I don't see how the demand goes past already selling out every game.

As for TV deals, the MSG group already owns their own TV network.



1.) Like I said, the more demand there is for the tickets, the more they can charge. So if every game is sold out at 75.00, Linsanity comes and every games sells out for an average of 85.00, that's a lot more cash.

2.) They own their own network, but do you realize how TV stations make money? They sell commercials. Linsanity caused the viewership to go up, when it goes up you can charge more for commercials.

Wow man, is this stuff that hard to understand?

[The_LA_Blakers]

Didn't go to college. Didn't even finish high school, but I seem to be doing just fine without it. I'm not even 30 and I'm already retired. I think my business sense is just fine.

:hammertime:


Dude, you ain't retired. Come on now.


If so, where's your business? What did you do to make so much money that you don't have to work anymore??

[Shepseskaf]

People are tossing around this $90 million figure like its solely tied to Lin. I'm very sure that it isn't.

And since when did an NBA team start having to worry about the effect a player had on their stock, as opposed to his performance on the court?

This entire Lin saga is just strange.

[CelticBaller]

Dude, you ain't retired. Come on now.


If so, where's your business? What did you do to make so much money that you don't have to work anymore??
http://socialcrminfo.com/wp-content/uploads/2012/04/scarface.jpg

[AK47DR91]

Dude, you ain't retired. Come on now.


If so, where's your business? What did you do to make so much money that you don't have to work anymore??
He's a bullshitter.

[NumberSix]

inb4 someone posts a pic of NumberSix as a homeless dude using a library computer.
http://s17.postimage.org/dlvrckf31/homeless.jpg