Post by mikecubs on Nov 25, 2015 23:59:19 GMT -6
Madison Square Garden has split their company. The teams(Rangers-Knicks) are separate from Madison Square Garden the network. The Rangers-Knicks were given 20 year TV deals for $130M per year for both teams. For the 2013-14 season forbes said that the Rangers local TV deal was for $38M dollars, the Knicks deal was $37M dollars. I assume the $130M is split so each team gets $65M since in 2013-14 they were basically split. This means the Rangers have the 2nd biggest local TV deal in the NHL behind the Montreal Canadiens $68M(some reports say it's only $60M), and the Knicks TV deal would be the 2nd biggest in the NBA behind the Lakers.
FYI, Forbes says the Rangers are now the NHL's most valuable team followed by the Canadiens, then the Maple Leafs. Forbes said a few years ago the Leafs local deal was $41M and it was suppose to expire after last season yet I can't find anything on a new Leafs TV deal.
So I have no clue what is going on with the Leafs TV rights.
Splitting MSG didn’t help shares after all
The Dolan family split their Madison Square Garden empire in two on Thursday, hoping to unlock some value — but the move didn’t work, at least on Day 1.
In its first day of trading as separate companies — one containing The Garden, its sports teams and other entertainment venues and the other comprising the cable networks — the two entities traded at about $72 a share, roughly the same price as before the split.
“This is still way off the 52-week high,” Albert Fried & Co. research director Rich Tullo told The Post.
The new, spun-off Madison Square Garden, which includes the Rangers, Knicks, Liberty and other sports teams, rose 5.6 percent, to $159.49. It has a market cap of $12.1 billion.
MSG Networks fell 14 percent to $18.75.
Shareholders in the old MSG received one share in the spinoff stock (Madison Square Garden Co.) for every three held in the parent company.
Management now has 30 days to price options, and so at least for them there may actually be a bright side to the mediocre prices.
They have plans to improve the stock price of MSG, a source who claims direct knowledge said.
Some believe the MSG building is worth close to $5 billion instead of its current analyst valuation of $1 billion to $2.5 billion.
One rumor is the Dolan family might borrow money against The Garden through a commercial mortgage-backed security that values it at a better price, forcing analysts to follow.
Chairman Jimmy Dolan and family own 20 percent of the entities and still have effective operating control through super-voting shares.
“We have heard a wide variety of opinions as to the family’s ultimate intentions,” JPMorgan said in a Thursday analyst report.
There will be pressure on MSG Networks, whose stock fell Thursday, to increase rates, as it now is paying closer to a market rate to broadcast games.
MSG Networks, starting in 2016, will pay $130 million a year for TV rights to the Knicks and Rangers — a sharp increase from the $81 million it was paying when both were under one corporate roof, JPMorgan said.
French telecom giant Altice, which recently signed a deal to buy the Dolan family-controlled Cablevision, MSG’s biggest cable customer, might make it harder to pass on increases, JPMorgan said.
Already, MSG charges among the highest affiliate fees in the industry.
nypost.com/2015/10/02/splitting-msg-didnt-help-shares-after-all/
FYI, Forbes says the Rangers are now the NHL's most valuable team followed by the Canadiens, then the Maple Leafs. Forbes said a few years ago the Leafs local deal was $41M and it was suppose to expire after last season yet I can't find anything on a new Leafs TV deal.
So I have no clue what is going on with the Leafs TV rights.Splitting MSG didn’t help shares after all
The Dolan family split their Madison Square Garden empire in two on Thursday, hoping to unlock some value — but the move didn’t work, at least on Day 1.
In its first day of trading as separate companies — one containing The Garden, its sports teams and other entertainment venues and the other comprising the cable networks — the two entities traded at about $72 a share, roughly the same price as before the split.
“This is still way off the 52-week high,” Albert Fried & Co. research director Rich Tullo told The Post.
The new, spun-off Madison Square Garden, which includes the Rangers, Knicks, Liberty and other sports teams, rose 5.6 percent, to $159.49. It has a market cap of $12.1 billion.
MSG Networks fell 14 percent to $18.75.
Shareholders in the old MSG received one share in the spinoff stock (Madison Square Garden Co.) for every three held in the parent company.
Management now has 30 days to price options, and so at least for them there may actually be a bright side to the mediocre prices.
They have plans to improve the stock price of MSG, a source who claims direct knowledge said.
Some believe the MSG building is worth close to $5 billion instead of its current analyst valuation of $1 billion to $2.5 billion.
One rumor is the Dolan family might borrow money against The Garden through a commercial mortgage-backed security that values it at a better price, forcing analysts to follow.
Chairman Jimmy Dolan and family own 20 percent of the entities and still have effective operating control through super-voting shares.
“We have heard a wide variety of opinions as to the family’s ultimate intentions,” JPMorgan said in a Thursday analyst report.
There will be pressure on MSG Networks, whose stock fell Thursday, to increase rates, as it now is paying closer to a market rate to broadcast games.
MSG Networks, starting in 2016, will pay $130 million a year for TV rights to the Knicks and Rangers — a sharp increase from the $81 million it was paying when both were under one corporate roof, JPMorgan said.
French telecom giant Altice, which recently signed a deal to buy the Dolan family-controlled Cablevision, MSG’s biggest cable customer, might make it harder to pass on increases, JPMorgan said.
Already, MSG charges among the highest affiliate fees in the industry.
nypost.com/2015/10/02/splitting-msg-didnt-help-shares-after-all/