MSG Brand Shines Despite Its Teams May 11, 2010 - 9:55 am Michael K. Ozanian, National Editor at Forbes
The Knicks are terrible and the Rangers missed the playoffs for the first time since 04. Fans and Wall Street are pissed. Since its January IPO shares of Madison Square Garden are down 3% while the S&P is up 2%. But the MSG brand is still scoring. The recently released 10q shows revenue up 9% for the March quarter year-over-year and an operating profit of $30 million versus a loss of $2 million. Most of the credit goes to the regional sports network which is benefiting from higher contractual affiliation rates and more subscribers. More money is also pouring in from radio advertising. An enterprise value-sales-ratio of 1.6 makes the stock cheap. What if the teams become good?