New York Knicks owner MSG Sports suffer US$27.1 million in losses for Q1 2023

Madison Square Garden (MSG) Sports posted a US$24.1 million revenue for its fiscal first quarter of 2023, increasing 28 percent or US$5.3 million on-year.

The owner of NBA’s New York Knicks and NHL’s Rangers cited solid sponsorship demand this was both in terms of signing new deals, as well as agreeing to partnership renewals for the revenue uptick.

The extensions and sales of suite licenses strongly contributed to the quarter, up by US$1.5 million on year.

Because the average revenue per game increased, preseason ticket-related revenues increased by US$1.1 million over the previous year. Additionally, league distribution income rose by $900,000.

For the 2022–2023 seasons, the average season ticket renewal rates for the Knicks and Rangers together are higher than 90 percent. Additionally, it stated that season ticket package sales continue to bring in sizable revenue and predicted further increases in local and national media rights fees for the upcoming fiscal year 2023.

Nevertheless, MSG Sports reported an adjusted operating loss of $27.3 million, which was an increase of 3 percent reported over the same period last year.

The losses were due to an increase of $11.6 million in selling, general, and administrative expenditures. MSG Sports attributed the increase primarily to higher staff pay and benefits after restoration to regular operations following the pandemic.