Shares of MSG Networks (MSGN) drop: the Knicks will not get the number 1 pick in the NBA draft

NYSE: MSG | The Madison Square Garden Company  (New) News, Ratings, and Charts

MSG – The Knicks will likely miss out on projected No. 1 pick and Duke University phenomenon, Zion Williamson.

Get Free Updates

Join thousands of investors who get the latest news, insights and top rated picks from StockNews.com!

  • The Knicks received the third overall pick in for next month’s draft, meaning they will likely miss out on projected No. 1 pick and Duke University phenomenon, Zion Williamson.
  • Picking Williamson could have increased Knicks viewership along with revenue for The Madison Square Garden Company (New) (MSG - Get Rating) Networks, which broadcast the lion’s share of the team’s games.
  • Williamson was named the National College Player of the Year for 2019 and is widely considered the best prospect since superstar LeBron James.

Shares of  The Madison Square Garden Company (New) (MSG - Get Rating) Networks fell more than 2% on Wednesday after the New York Knicks lost out on the coveted No. 1 pick in this year’s NBA draft.

The Knicks received the third overall pick in for next month’s draft at Tuesday night’s NBA draft lottery, meaning they will likely miss out on projected No. 1 pick and Duke University phenomenon, Zion Williamson. Williamson was named the National College Player of the Year for 2019 and is widely considered the best prospect since superstar LeBron James.

Picking Williamson could have increased Knicks viewership along with revenue for The Madison Square Garden Company (New) (MSG - Get Rating) Networks, which broadcast the lion’s share of the team’s games. This could have also enticed free-agent superstars like Golden State Warriors forward Kevin Durant to sign with New York, helping them build a championship caliber team.

“The Knicks are still well under-monetized relative to their potential,” wrote BTIG analyst Brandon Ross in a note earlier this week before the lottery results. “Overall, we estimate building a championship contender could have a $79mm revenue impact and $40mm [adjusted operating income] impact with annual top line growth of at least mid-single digits.”

Ross notes that building a contender could lead the team to raise ticket prices as well as increase its sponsorship revenues. That just got a bit more difficult now.

Williamson will likely be drafted first overall by the New Orleans Pelicans on June 20.

 


The Madison Square Garden Company (New) (MSG - Get Rating) Networks Inc. shares were unchanged in after-hours trading Wednesday. Year-to-date, The Madison Square Garden Company (New) (MSG - Get Rating) has gained 12.69%, versus a 14.56% rise in the benchmark S&P 500 index during the same period.

The Madison Square Garden Company (New) (MSG - Get Rating) currently has a StockNews.com POWR Rating of B (Buy), and is ranked #6 of 16 stocks in the Entertainment – Sports & Theme Parks category.


This article is brought to you courtesy of CNBC.

Get Free Updates

Join thousands of investors who get the latest news, insights and top rated picks from StockNews.com!

Top Stories on StockNews.com

NYSE: SPY | SPDR S&P 500 News, Ratings, and Charts

A Great Options Strategy to Generate Income

Working on the assumption of a range-bound or consolidating market, here’s a quick-and-easy options play to generate 35% return over the next 3 days!
NASDAQ: PYPL | PayPal Holdings, Inc. News, Ratings, and Charts

Stock of the Week: PayPal (PYPL)

PayPal is the first selection for this new Stock of the Week feature. And for good reason! Read on to learn more.
: APHA | Aphria Inc. Common Shares News, Ratings, and Charts

Is Aphria (APHA) the #1 cannabis stock to own right now?

So why do we like Aphria so much now, and what sets it apart from its competitors?
NYSE: SPY | SPDR S&P 500 News, Ratings, and Charts

The Biggest Recession Risk We Actually Face

Today's featured article covers the biggest recession risk that we face. Continue reading to find out more details, and how it could affect investors moving forward.
NYSE: HCP | HCP, Inc.  News, Ratings, and Charts

14 Soaring Momentum Stocks

HCP headlines a list of 14 stocks displaying impressive momentum at this time that points to even more upside ahead.

Read More Stories


More The Madison Square Garden Company (New) (MSG) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All MSG News
Page generated in 1.2675 seconds.