This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

MSG Is the 'World's Most Famous Arena' for More Than Just the Rangers

NEW YORK (TheStreet) -- The New York Rangers hockey team is headed to the championship, vying for Lord Stanley's Cup for the first time in 20 years

No one is cheering louder than the people running Madison Square Garden (MSG), the venue where the Rangers beat the Montreal Canadiens Thursday night by a score of 1-0. The final round will draw a lot of fans -- and money -- to MSG when the Rangers know which western team will be their opponent.

MSG the stock has had some up and down times, like the Rangers.

It posted poor quarterly earnings, when the Rockettes, who dance at another of its venues -- New York's Radio City Music Hall -- were delayed by production problems in its "Hearts and Lights" theatrical extravaganza.

Shares of MSG fell almost 13%. But they have recovered a bit and are currently around $54, down 5.6% for the year to date.

Having championship hockey at "the world's most famous arena" doesn't hurt.

MSG has three segments but a significant amount revenue comes from two sports franchises, the Rangers and the New York Knicks of the National Basketball League.

Despite the Knicks' dreadful performance since their loss to the San Antonio Spurs in the Finals in 1999, attendance has been both consistent and strong averaging around 20,000 fans per game. At the same time, ticket prices have continued to increase over the years. In fact, the average price of a ticket in the secondary market rose almost 12% year over year in 2014 and ranked among the highest in the NBA at around $321

Just imagine if the Knicks were actually good!

The Rangers don't have that problem this year, and ticket prices, particularly on the secondary market, reflect that.

In addition to sports, there's MSG's Media segment through its MSG Networks. For the year ended June 30, approximately 50% of the company's consolidated revenue were derived from this segment, which also includes multi-year rights for coverage of the New York Islanders, New Jersey Devils and Buffalo Sabres hockey teams.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $117.81 -0.19%
FB $105.45 0.04%
GOOG $750.26 0.28%
TSLA $231.61 0.86%
YHOO $32.94 -0.66%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs