MSG could lose up to $15M if the Knicks "don't survive"
their first-round playoff series against the Heat, according
to Philip Lentz of CRAIN'S N.Y. BUSINESS. However, Lentz
added, "For almost any other sports empire, that could spell
disaster. Not for the Garden. MSG has built such a
monopoly in local sports broadcasting that it can expect
more sellouts, push through higher ticket prices and demand
fatter ad rates for its televised games again next year."
MSG is "mum" on the financial losses, but it typically
budgets for two rounds of the playoffs for the Knicks and
NHL Rangers, "counting on" $1M in revenue from each home
game, plus TV ad revenues from road games. Officials say
expansion into other types of entertainment -- MSG earned
nearly $3M from the Holyfield-Lewis fight last March -- "has
reduced the Garden's dependence" on the teams "to turn a
profit." And "corporate demand" on the MSG Network, arena
signage and related sponsorships "is as strong as ever."
But Lentz writes that one "financial trouble spot" is the
Rangers, as their TV ratings dropped 18% this year. An
anonymous sports market exec said, "People are getting very
nervous about the Rangers situation. They're banking on
[free agent Brian] Leetch being a New York guy and staying.
But there's a real risk there" (CRAIN'S N.Y., 5/10).
