MSG Sports Hits Record $887M Revenue on Knicks, Rangers Strength
Madison Square Garden Sports reported a 28% decline in fourth quarter revenue to $127 million in fiscal year 2023 due to fewer home NBA and NHL playoff games at The Garden and the timing of the NHL regular season (more hockey games in April 2022 versus 2023). But the parent company of the New York Knicks and New York Rangers had a record year overall with revenue of $887 million, up 8% versus the prior 12 months.
“Our strong financial results in fiscal 2023 reflect the robust ongoing demand from our fans and corporate partners for the Knicks and Rangers,” James Dolan, Madison Square Garden Sports executive chairman, said in a statement releasing the results “We believe we are well-positioned to build on this momentum in the coming year and remain confident in our ability to generate long-term shareholder value.”
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The Knicks and Rangers played only five regular season home games combined during the quarter, versus 13 in 2022. And while both teams made the playoffs this year and hosted a total of eight home games, it was down from 10 the prior year when the Rangers made the Eastern Conference Finals. The Knicks made the second round of the NBA playoffs in 2023, but the Rangers were bounced from the playoffs 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 versus a $23.7 million profit in 2022. For the full year, it had an operating profit of $89.9 million, up 22%, 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’s developmental G League) and the Hartford Wolf Pack (part of the AHL).
MSG Sports’ stock price is up 12% this year, and the current enterprise is $6 billion. The market discounts what the two teams would fetch in an auction environment. Last year, Sportico valued the Knicks at $6.58 billion, second in the NBA behind the Warriors, and the Rangers at $2.01 billion, second in the NHL behind the Maple Leafs.
During MSG Sports’ third quarter earnings call in February, David Hopkinson, the company’s president and chief operating officer, said it would be open to selling a minority stake in one of the franchises.
“We have no plans to sell either team,” Hopkinson told investors. “No current plans there, but we certainly won’t rule out the possibility of selling a minority stake in the Knicks or Rangers.”
He pointed to new pools of capital available across the marketplace, including the NBA creating more liquidity for owners with the introduction of private equity and sovereign wealth funds as investors in franchises.
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