Miami Heat cools investor interest in the Knicks

The Miami Heat cooled off investor interest this month in Madison Square Garden Inc., the company that owns the New York Knicks. After rising throughout July, shares of Madison Square Garden slid nearly 4 percent, Friday, one day after basketball megastar LeBron James chose to play for Miami, rather than New York and a host of other hopeful cities seeking an NBA championship. James is leaving Cleveland, where he has played for several years, he said. James as been the most heavily sought-after star in years and on Thursday night during a live announcement broadcast by ESPN, fans gathered outside stadiums from Chicago to New York. It was a big letdown for all the contenders, but especially New York. The Knicks have posted nine straight losing seasons, a franchise record, in part because they gutted their roster to free up money for a player like James, a two-time league Most Valuable Player. "We are disappointed that LeBron James did not pick the New York Knicks, but we respect his decision," Knicks president Donnie Walsh said late Thursday. Adding a player like LeBron James can mean big money, with teams more likely to run deeper into the playoffs. That would mean soaring ticket sales and much more, said Gabelli & Co. analyst Christopher Marangi. Earnings before interest, taxes, depreciation and amortization could have meant a bump of $30 million to $50 million per year from increases in the MSG network's advertising revenue, attendance at games, and concession and merchandise sales, Marangi said. Shares of Madison Square Garden fell 78 cents to $19.60 in midday trading Friday.