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Surrounded by NBA basketball players, executive director of the National Basketball Players Association Billy Hunter, centre, and NBA Players Association president Derek Fisher, second from left, speak to the media during a news conference on Monday. (Seth Wenig/Associated Press)
Surrounded by NBA basketball players, executive director of the National Basketball Players Association Billy Hunter, centre, and NBA Players Association president Derek Fisher, second from left, speak to the media during a news conference on Monday. (Seth Wenig/Associated Press)

NBA lockout: The stock play Add to ...

With the world in crisis and no rescue in sight, it is no wonder investors are looking at how much exposure they have to the epicentre of the crisis. Europe? Nope, the National Basketball Association lockout, which has threatened the entire 2011-2012 NBA season.

Theo Francis at Footnoted.com (via Abnormal Returns) has poured through some of the recent regulatory filings from companies that stand to lose out from the labour disruption, noting how they perceive the threat. Madison Square Garden , which owns the New York Knicks and obviously benefits from hosting NBA games, is one of the more obvious examples of a threatened company.

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In its 10-Q filing, the company noted that even failing to reschedule cancelled so far would hurt its fiscal second quarter results and could have an impact on its 2012 full-year results. Investors seem stoic on this one so far, with the shares down just 7 per cent from their recent high earlier this month – and up about 24 per cent from their October lows.

Other companies potentially affected by the lockout: broadcaster Time Warner Inc. , restaurant chain Buffalo Wild Wings and video-game maker Take-Two Interactive .

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