Sell Madison Square Garden If the Rangers Lose?
NEW YORK (TheStreet) -- Another Game Seven goes off Thursday night in the National Hockey League playoffs. The New York Rangers host the Ottawa Senators at Madison Square Garden.
I am working feverishly to ensure that I am firmly planted on the couch by 4:30 p.m. PT with Molson Canadian in hand. There might not be a better time of the year than the NHL's second season.
I happen to be a Toronto Maple Leafs fan. This, however, does not mean that I dislike all other Canadian franchises. In fact, when the Leafs are out of the race (every year), I root for Canadian teams. I was born in Western New York, but have always identified in many ways with Canadian culture.
Right now, the Sens are the last Canadian team standing. Up until yesterday, I was preparing to root for them to win this evening. Then, I read an article by Mike Ozanian in Forbes, titled: Senators Set to Extract $300 Million from Madison Square Garden Shareholders.
Mike wrote a nice article, but he did leave several things out. He estimates that every time the Rangers host a playoff game, Madison Square Garden(MSG) , the company, nets $1 million income. He extrapolates this out using the following math: If the Rangers go to the Cup they'll play at least 10 more games. MSG trades for 33 times earnings, so that would shave about $330 million worth of value from the company's market cap.