Troy Bayer
Growth at reasonable price, small-cap, energy, media

Clippers Sale In The Rearview, Expenses Return As MSG's Greatest Concern

On May 30th it was announced that the Los Angeles Clippers had been sold to former Microsoft chief executive Steve Ballmer for a whopping $2 billion. The bidding war for the Clippers benefited Madison Square Garden (NASDAQ:MSG) immediately, as the company's share price skyrocketed 34.4 percent from its May 7th low of $48.36 to $65 per share.

(click to enlarge)

Why the dramatic market correction? It turns out that professional sports teams were grossly undervalued. Prior to the Balmer agreement, Forbes had notoriously valued the Clippers at $575 million, nearly four times less than its sale price. The New York Knicks, owned by MSG, were valued by Forbes at $1.4 billion, which quickly resulted in the substantial market...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details