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Rangers’ Adam Fox, Candre Miller and Artemi Panarin scored the winning goals in January, but on the ice this could also be a reaction to MSG Sport’s strong second quarter earnings. (Photo: Sarah Stier/Getty Images)
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M.SG Sports, The publicly traded company run by Jim Dolan, who owns the NBA’s New York Knicks and NHL’s Rangers, reported strong results in the second quarter of fiscal 2023 and said it would accept the sale of minority stakes in the teams. .
The company posted revenue of $353.7 million in the three months to December 2022, an increase of $64.1 million, or 22%, compared to the same period last year. MSG Sports’ operating income (effectively earnings before interest, taxes, depreciation and other non-cash expenses) was $76.6 million, an increase of $21 million (38%) from a year ago. Did.
The Knicks and Rangers will play at Madison Square Garden, which is owned by publicly traded MSG Entertainment, also operated by Dolan. The team has a lease agreement with MSG Entertainment, specifying a percentage of revenue. The Knicks will keep his 35% of suite and club seat revenues, while the Rangers will get his 32.5%. Revenue growth was primarily due to increased pre- and regular season ticket-related revenue, suite license fee revenue, sponsorship and signage revenue, food, beverage and merchandise sales, local media rights fees and league distribution revenue. . Also, the Rangers have played six regular-season home games at the Gardens this year compared to the same period last year.
MSG Sports Q2 2023 results.
forbes
MSG Sports president David Hopkinson said on Tuesday’s earnings call that there are currently no plans to sell the team. “We cannot completely rule out the possibility of selling a minority stake in either the Knicks or the Rangers.”
Wall Street is clearly skeptical. MSG Sports has an enterprise value of $5.3 billion. But we believe the arm-length deal is worth $7.84 billion. MSG Sports shares are up just 0.25% compared to 0.5% for the S&P 500.
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