With the flurry of "stunning and expensive" trades and free
agent signings for the Rangers and Knicks, the "pressure is on
MSG executives to come up with the revenue" to pay player
contracts, according to Philip Lentz of CRAIN'S NEW YOUR
BUSINESS. MSG has already raised ad rates on MSG Network and is
preparing further increases should ratings increase. Ticket
prices for both teams have increased, with the Rangers up 17% and
Knicks 10%. MSG has also found "little resistance" to hikes of
40% or more for luxury suite renewal. The key will be the
postseason, as the Garden earns between $1.5-2M per playoff game.
SportsCorp. CEO Marc Ganis: "If the Rangers go one more series
next year, that's an extra $6 million -- that's Wayne Gretzky's
salary right there." MSG Network Exec VP Joe Cohen said interest
among advertisers is high, despite a 15% increase in ad rates.
The network is "now holding back" time in order to sell spot ads
during the season. MSG Network is eyeing a weekly show with
Wayne Gretzky and his contract also includes merchandise tie-ins,
another potential revenue gainer (CRAIN'S NEW YORK, 7/29 issue).
