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Madison Square Garden stock plummets with Lin gone

The SportsXchange

New York Knicks officials and the casual fan may have had trouble gauging Jeremy Lin's value to the Knicks, but the stock market makes it pretty clear Lin was quite an asset.

Since the Knicks declined to match the Rockets offer sheet, letting Lin go to Houston, Madison Square Garden stock has dropped $93 million, according to CNBC sports business reporter Darren Rovell.

The rise and fall of MSG's stock has closely followed the rise and fall of Linsanity.

When Lin made his first start for the Knicks Feb. 6, MSG shares traded at $29.49. On July 5, the stock had risen more than 30 percent up to $38.80. Since then, as reports that Lin might leave the Knicks increased, shares have dropped to $35.50, an 8.5 percent fall.

Because of the luxury tax the Knicks would have had to pay in the third year of Lin's contract if they decided to match the Rockets' offer, it was estimated the Knicks would have had to pay $50 million to retain Lin. That seems like a lot, until you follow the stock-market path of MSG stock during Lin's time with the Knicks.

When Lin made his first start for the Knicks in early February, there was a media stir and MSG stock rose slowly and incrementally for a few days.

But when Linsanity began to take hold in mid-February, the stock spiked dramatically, according to the New York Observer.

The stock remained high in March when Lin was injured, when there was little thought that Lin would be anywhere but in New York next season.

But on July 5, the very day that reports surfaced that Lin had agreed to terms on an offer sheet with the Rockets, the stock began dropping, and it has been falling ever since.

It was noteworthy that 150 media members attended Lin's official introduction to the Houston media this week. That was considerably more than attended the introductory media conferences when either Roger Clemens or Andy Pettitte joined the Houston Astros.
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