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LeBron James: Mere Mention of His Name Makes Madison Square Garden's Stock Jump

By DNAinfo Staff on June 21, 2010 3:40pm

If the limelight of New York doesn't lure Lebron James, perhaps a business prospectus can.
If the limelight of New York doesn't lure Lebron James, perhaps a business prospectus can.
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Gregory Shamus/Getty Images

By Jordan Heller

DNAinfo Reporter/Producer

MANHATTAN — Every time it's suggested that LeBron James might sign with the Knicks, Madison Square Garden's stock gets a boost, Crain’s New York Business reported.

In May, when the Cleveland Cavaliers made an early exit from the NBA playoffs — fueling speculation that King James would come to New York — shares of MSG stock shot up 12 percent, Crain’s said.

The acquisition of James would manifest in more sponsorships, higher ticket prices, postseason appearances, subscriber fee increases from cable and satellite operators, and premium ad rates on the MSG TV Network, the magazine said.

The Knicks would get an immediate bounce of $10 million to $20 million in revenue, Patrick Rishe, a professor of economics at Webster University and director of consulting firm Sports Impacts, told Crain’s.

Riche added that if the Knicks reached the postseason, the team could see an additional $25 million to $50 million annually, and predicted that the overall value of the franchise, which Forbes put at $586 million in December, would increase to more than $735 million.

“The addition of LeBron would put [the network] at a different level,” Rich Golden, executive vice president of client services at HN Media & Marketing Inc., told Crain’s.

James becomes a free agent on July 1. DNAinfo has posted a countdown clock to help fans know the second he becomes available to the Knicks.