Madison Square Investors Buy into Linsanity

Today, shares of Madison Square Garden MSG are up 6% after the New York Knicks recorded their fifth consecutive victory Saturday night. The team has been energized by the play of young point guard Jeremy Lin, who has emerged from obscurity and become an NBA sensation over the past week. Lin went undrafted and was released by both the Golden State Warriors and Houston Rockets earlier this season. The Knicks had considered doing the same before giving the player an opportunity due to the poor play of their other point guards Mike Bibby and Iman Schumpert, as well as the slow recovery of Baron Davis. Lin's popularity lies with the fact that he is the first Asian American basketball player to play in the NBA for decades. His underdog success story of perseverance and hard work has led to unprecedented media coverage that rarely follows the Asian American community, and many fans of Asian descent have proclaimed Lin as a leader in increasing cultural awareness. Lin has also drawn comparisons to Denver Broncos quarterback Tim Tebow for his openness towards speaking about his Christian beliefs. These religious issues have proved to be polarizing for some fans who have taken to Twitter to debate the merits of faith and its place in professional sports. Regardless of the arguments, fans have found Lin's story of rags to riches as a situation that they can relate to, in which persistence eventually yields rewards. The Madison Square Garden has also benefitted from Lin's success, as increased ticket sales and an electric environment during games have brought newfound excitement to New York Knicks basketball. Jeremy Lin jerseys were released just a few days ago, and many souvenir stands reported selling out quickly. Lin's appearance on the road has also sparked ticket sales by fans in opposing cities eager to see the point guard play. The play of Jeremy Lin has clearly delighted the Asian American community and NBA fans alike, and has already benefitted the bottom line for Madison Square Garden. While it remains to be seen whether Lin's style of play will hold up in the long run, MSG has significant opportunities to market the player to both the American and Chinese market, who has not seen a prominent player since the drafting of Yi Jianlian in 2007. As long as Lin can remain in the starting lineup, MSG shareholders could see more upside in their investment.