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
TheStreet Open House

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

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,031.14 +43.63 0.26%
S&P 500 1,984.13 -1.41 -0.07%
NASDAQ 4,518.9020 -48.6960 -1.07%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs