MSG Sports record with $887 million Knicks and power Rangers

Madison Square Garden Sports reported that fourth-quarter revenue fell 28 percent to $127 million in fiscal 2023 due to fewer home NBA and NHL playoff games at The Garden and the scheduling of the NHL regular season (more hockey games in April 2022 compared to 2023). . But the parent company of New York Knicks And New York Rangers Overall, it had a record year with revenue of $887 million, up 8 percent from the previous 12 months.

“Our strong financial results in fiscal year 2023 reflect the continued demand for the Knicks and Rangers from our fans and partners,” James Dolan, chief executive of Madison Square Garden Sports, said in a statement announcing the results. We are positioned to build on this momentum in the coming year and are confident in our ability to create long-term shareholder value.”

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The Knicks and Rangers played just five regular-season home games in a quarter, compared to 13 in 2022. And while both teams made the playoffs this year and hosted a combined eight home games, 10 of There was a decrease in the previous year when he was Rangers. reached the finals of the Eastern Conference. The Knicks advanced to the second round of the NBA playoffs in 2023, but the Rangers were eliminated in their opening round. As a result, revenue from tickets, suites, sponsorships, signage and local media were all lower for the quarter.

The company posted an operating loss of $12.2 million for the quarter, compared to a profit of $23.7 million in 2022. For the full year, it had operating profit of $89.9 million, up 22 percent, while net income was $45.6 million.

In addition to the Knicks and Rangers, MSG Sports also owns the Westchester Knicks (part of the NBA Development League) and the Hartford Wolf Pack (part of the AHL).

MSG Sports’ stock price is up 12% this year, and the company is currently worth $6 billion. The market discounts what two teams would get in an auction environment. Last year, Sportico Value The Knicks are second in the NBA at $6.58 billion Warriorsand the Rangers with $2.01 billion, The second In the NHL back Maple leaves.

David Hopkinson, the company’s president and chief operating officer, said during MSG Sports’ third-quarter call in February that it was open to selling a minority stake in one of the franchises.

Hopkinson said: We have no plans to sell any of the teams said Investors. “There are no plans at this time, but we certainly wouldn’t rule out the possibility of selling a minority stake in the Knicks or the Rangers.”

He pointed to new capital available across the market, including the NBA bringing in private equity and sovereign wealth funds as investors in franchises, creating more liquidity for owners.

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