business newsUndervalued Sports and Entertainment Mecca a Slam-Dunk Investment
By
InvestingDaily.com
Oct 18, 2012 3:40 pm
With lucrative and coveted broadcast deals either signed or in the pipeline, the Madison Square Garden Co. is positioned to perform like a champ.
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It’s a common dream to own a professional sports team, but no teams are publicly traded. To get a piece of the action, investors must buy shares in the corporate entities that own the teams.
There’s no better buy now in the sports world than Madison Square Garden Company (NSDQ:MSG), which owns and operates the iconic Madison Square Garden arena, the New York Knicks, the New York Rangers, the Connecticut Whale, the New York Liberty, the Radio City Christmas production, the Chicago Theater, the Beacon Theatre, and more.
The company operates via three segments—MSG Sports, MSG Entertainment, and MSG Media—that are strategically aligned and built on a foundation of brand-name venues and compelling spectacles.
MSG Sports features the presentation of a wide variety of live sporting events including hockey, professional and college basketball, professional boxing, track and field, and tennis. MSG Entertainment presents or hosts live entertainment events such as concerts and family shows. MSG Media consists of regional sports networks and the Fuse Networks, a national television network dedicated to music.
The company is most commonly associated with the value of its eponymous arena, which is undergoing an $850 million renovation that will enhance its earnings power. Opened in 1968 and located in midtown Manhattan, the arena is the longest active major sporting facility in the New York metropolitan area and currently hosts approximately 320 events a year.
This storied landmark is only one aspect of the company’s appeal as a stock market investment. The company’s cable networks, lucrative broadcast rights and fully integrated business model make it a great stock to buy for the long haul.
However, the stock is being unduly punished by investors and trades at a bargain to its premium potential.
In September, the NHL canceled its entire preseason game schedule, because of the absence of a collective bargaining agreement between the team owners and the players’ association. This marks the fourth time in 20 years that the NHL has succumbed to a work stoppage. The regular season is scheduled to begin in mid-October, but negotiations remain far apart.
The National Hockey League remains mired in acrimony, generating negative publicity that tarnishes anything associated with pro hockey. Hockey fans—and investors—remember that the entire 2004-05 season wasn’t played because of a costly lockout. The first casualty of the highly public squabbling this autumn has been Madison Square Garden’s stock.
There’s no better buy now in the sports world than Madison Square Garden Company (NSDQ:MSG), which owns and operates the iconic Madison Square Garden arena, the New York Knicks, the New York Rangers, the Connecticut Whale, the New York Liberty, the Radio City Christmas production, the Chicago Theater, the Beacon Theatre, and more.
The company operates via three segments—MSG Sports, MSG Entertainment, and MSG Media—that are strategically aligned and built on a foundation of brand-name venues and compelling spectacles.
MSG Sports features the presentation of a wide variety of live sporting events including hockey, professional and college basketball, professional boxing, track and field, and tennis. MSG Entertainment presents or hosts live entertainment events such as concerts and family shows. MSG Media consists of regional sports networks and the Fuse Networks, a national television network dedicated to music.
The company is most commonly associated with the value of its eponymous arena, which is undergoing an $850 million renovation that will enhance its earnings power. Opened in 1968 and located in midtown Manhattan, the arena is the longest active major sporting facility in the New York metropolitan area and currently hosts approximately 320 events a year.
This storied landmark is only one aspect of the company’s appeal as a stock market investment. The company’s cable networks, lucrative broadcast rights and fully integrated business model make it a great stock to buy for the long haul.
However, the stock is being unduly punished by investors and trades at a bargain to its premium potential.
In September, the NHL canceled its entire preseason game schedule, because of the absence of a collective bargaining agreement between the team owners and the players’ association. This marks the fourth time in 20 years that the NHL has succumbed to a work stoppage. The regular season is scheduled to begin in mid-October, but negotiations remain far apart.
The National Hockey League remains mired in acrimony, generating negative publicity that tarnishes anything associated with pro hockey. Hockey fans—and investors—remember that the entire 2004-05 season wasn’t played because of a costly lockout. The first casualty of the highly public squabbling this autumn has been Madison Square Garden’s stock.
No positions in stocks mentioned.
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