The NBA lockout might help team owners save money in the long run, but the spectre of a canceled or shortened season isn't helping the stockholders of Madison Square Garden, the company that owns the famous arena, the New York Knicks and the NHL's Rangers. Marketwatch (via BDL) reports that Wall Street has downgraded its outlook for MSG amid concerns about the lockout.
Madison Square Garden Stock Falls, Thanks To NBA Lockout
“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,” wrote the [Bank of America-Merrill Lynch] analysts in a note.
The Garden just underwent a pricey renovation ahead of the 2011-12 season, and the Knicks will start the campaign -- whenever it starts, if it starts -- with two marquee stars in Amar'e Stoudemire and Carmelo Anthony.
For more on the foibles of the Knicks and lemurs, visit SB Nation’s Posting And Toasting.
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