MSG Fortunes Highly Dependent On Its Sports Division
Cablevision's latest regulatory filing shows that MSG is a "wildly volatile business that's highly dependent on the economy and the fortunes of its sports teams," according to Peter Lauria of the N.Y. POST. MSG over the last six years has "swung between being highly profitable to getting mired in red ink." The Cablevision unit in '04 posted a profit of $50M, but this year is "on track to record a loss," having posted a $5.8M deficit for the first six months of this year. But the filing, the "clearest sign yet that the controlling Dolan family will follow through with its plan to spin off MSG later this year," suggests that MSG will be in a "much stronger financial position as a standalone entity than either analysts or investors originally thought." The filing states revenue from the MSG's sports division fell $1.6M through June 30 to $210M, in part from a $23.5M charge "associated with transactions relating to players on our sports teams for career-ending injuries and for waivers and termination of players and other team personnel, including team executives." MSG's entertainment segment saw revenue fall by $11M to $79M during the first six months of '09, while the company's media operation was its "only division posting growth," with revenue through June 30 up $18M to $232M (N.Y. POST, 8/12).
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