Thursday, February 9, 2012
Jeremy Lin's impact on MSG
If you have not heard about Jeremy Lin, then this is not for you. Lin's impact on MSG stock should be significant. It will bring 2 to 3 thousand more fans each game to Madison Square Garden, which is about $100,000 additional revenue per game. The TV rights to Taiwan and China will generate $5 million per season at least. The advertisements will increase by 1-2 million (given Yao Ming's Houston Rocket experience). You are looking at least 10 million dollar net revenue. 90% of this revenue will translate into net income It is 10% of current NI of MSG. My guess the impact will be much more than 10 million a year. MSG should go up at least 10% to $33 because of Lin
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Good point!
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