Wall Street punishes the Knicks to the tune of $100 million for losing Jeremy Lin
Madison Square Garden Inc., the company that owns the Knicks, has seen their stock price plummet by 8.6% since the Knicks announced they would not re-sign Lin.
CNBC's Darren Rovell crunches the numbers to find that the value of that 8.6% decline is the equivalent of $101 million.Take a look at a brutal chart showing MSG, Inc's stock price slide since the Knicks gave up the pursuit of Lin.
The Knicks may turn out just fine without Lin from a basketball standpoint, but their Lin-ability to retain the exciting 23-year-old point guard has already cost their parent company a nine-figure sum in terms of off-court financial value.
The Rockets, in contrast, seem to have ambitions for monetizing Jeremy Lin's marketing appeal and building Lin as an off-court financial asset. Recall that the previous Chinese-American NBA mega-star, Yao Ming, also played for the Rockets until his retirement one year ago today. The Rockets had already made serious inroads marketing their apparel in China, and their brand to the Chinese-American community. The Lin move retains and bolsters their huge Chinese-American fan base.
Oh, and the All-Star Game is being played in Houston this season. You think Chinese-American fans will ballot-stuff the online polls to get their Lin-disputed favorite NBA player onto the Western Conference All-Star team?
Yes, the Rockets did actually waive Lin on the day before the beginning of the 2012 NBA season. They didn't realize that talent they had on their hands, and they just paid megabucks to get back a guy they'd already had on the cheap six months ago.
So you could make the argument that waiving Lin last December ended up costing the Houston Rockets $25 million.