MSG Stock Soars on LeBron James to Knicks Rumor
Reports surfaced on Wednesday night that LeBron James would have a one-hour show on ESPN to announce where he’s going to sign in free agency. Details have emerged that James’ announcement will take place in Greenwich, Connecticut, outside of New York City, making people believe he’s going to sign with the Knicks. On top of that news, Reds Army brought it to my attention that both Ocho Cinco and Jared Dudley have said on twitter that LeBron James is going to the Knicks. Even though nothing is official, the speculation has already resulted in heavy financial implications.
CNBC business reporter Darren Rovell pointed out that MSG’s stock was up towards the final hour of trading on Wednesday because of the rumors that LeBron’s going to NYC. MSG is Madison Square Garden, the cable company that airs Knicks games. As if the stock rising 6.5% for the day wasn’t enough, the trade volume has been up almost six times its normal average. Additionally, the options market for MSG was buzzing with thousands of calls contracts being purchased, all in anticipation that MSG’s stock will go up in the future.
If I were the SEC, I would be taking an extra careful look at the buys on Wednesday to make sure there was no insider trading going on based on the LeBron rumors.