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-   -   News Article: MSG cashes in on the playoffs (http://hfboards.hockeysfuture.com/showthread.php?t=903638)

RangerBoy 04-14-2011 04:13 PM

MSG cashes in on the playoffs
 
The Rangers and Knicks could bring in up to $15 million in playoff revenue for just the first round of the playoffs.

Quote:

Ticket sales for the four guaranteed home games will bring in an estimated $6.5 million, while potential third games at the Garden could net an additional $3.2 million, said Richard Tullo, an analyst at Albert Fried & Co. Another $1.5 million in concessions and $5 million in television and arena advertising revenue are also possible, he said.

Still, the Knicks and Rangers would have to advance deep into the playoffs to have an immediate meaningful impact on the Gardenís bottom line, said David Joyce, an analyst at Miller Tabak + Co. After league fees, he estimated, the Garden profits about $1 million per playoff game, plus about $500,000 for games that air on its MSG Network. The company reported a $32.7 million profit in the fourth quarter.

http://www.crainsnewyork.com/apps/pb.../0/REAL_ESTATE

The article also discusses the impact of both teams making the playoffs with the current renovations going on.

abev 04-14-2011 04:22 PM

The CFO's and financial types must have been puking the night of the Atlanta game straight through Sat night.

The amount of money that must be made on years where both teams (Knicks & Rangers) are in the playoffs...Imagine the $$ they both go to the Finals.

broadwayblue 04-14-2011 04:25 PM

Got to love that they also charged us for 4 home games in the first round when were were mathematically eliminated from having a top 4 seed. Assuming we were to win the first round...will they continue to bill us for 4 games/round going forward when there is no possibility of us having home ice the rest of the way?

HeaveHo94 04-14-2011 04:28 PM

Good for JD, all he does is spend on each team.

WhipNash27 04-14-2011 04:30 PM

Which is why I laugh when people say ownership is happy with mediocrity. The further the team goes in the playoffs the more money they make. It makes no sense to not what the team to do well.

Stugots 04-14-2011 04:35 PM

Quote:

Originally Posted by abev (Post 32368560)
The CFO's and financial types must have been puking the night of the Atlanta game straight through Sat night.

The amount of money that must be made on years where both teams (Knicks & Rangers) are in the playoffs...Imagine the $$ they both go to the Finals.

Only way the Rangers are going to the finals is if Sather gets canned haha.

BlueshirtBlitz 04-14-2011 04:37 PM

Quote:

Originally Posted by DubiSnacks17 (Post 32368734)
Which is why I laugh when people say ownership is happy with mediocrity. The further the team goes in the playoffs the more money they make. It makes no sense to not what the team to do well.

Dolan doesn't know enough about hockey to care and as long as Sather keeps a bubble playoff team who can sometimes get into the 2nd round he won't be canned. Dolan makes more than enough money for that.

WhipNash27 04-14-2011 04:42 PM

Quote:

Originally Posted by BlueshirtBlitz (Post 32368872)
Dolan doesn't know enough about hockey to care and as long as Sather keeps a bubble playoff team who can sometimes get into the 2nd round he won't be canned. Dolan makes more than enough money for that.

He doesn't know enough about hockey and is too loyal to his people. Doesn't mean he doesn't care. The rich always want to be richer. He probably salivates at the thought of his Knicks and Rangers making the finals and winning a championship.

3Four3 04-14-2011 04:48 PM

My sister actually works for a tomato company that delivers tomatoes to MSG. Whenever the Rangers made the playoffs, they'd order 30 crates of tomatoes for each game played at MSG. With both the Knicks and Rangers in the playoffs, they are going to do gangbusters.

broadwayblue 04-14-2011 04:52 PM

Quote:

Originally Posted by DubiSnacks17 (Post 32368734)
Which is why I laugh when people say ownership is happy with mediocrity. The further the team goes in the playoffs the more money they make. It makes no sense to not what the team to do well.

I have to disagree with you there. History has shown he would rather make it into the playoffs at any cost, even if it means losing in the first round, just to get the money. An owner who was unhappy with mediocrity would be ok with missing out on the post season for a year, perhaps two, if it meant building the team the right way and ultimately going deep in the playoffs. Unfortunately $1 today is far more important than the possibility of $2, $3 or $4 tomorrow. And thus the team is stuck in perpetual mediocrity.

vipernsx 04-14-2011 07:08 PM

LOL ticket prices are still going up next year.

Richard Brads 04-14-2011 07:56 PM

Quote:

Originally Posted by 3Four3 (Post 32369075)
My sister actually works for a tomato company that delivers tomatoes to MSG. Whenever the Rangers made the playoffs, they'd order 30 crates of tomatoes for each game played at MSG. With both the Knicks and Rangers in the playoffs, they are going to do gangbusters.

lolwut?

Tawnos 04-14-2011 11:27 PM

Quote:

Originally Posted by vipernsx (Post 32372047)
LOL ticket prices are still going up next year.

Ticket prices, like the price of all commodities, aren't determined by how much profit a team makes, but rather a version of supply/demand. Ticket prices will continually go up until there is a point where they can't sell out. I actually don't believe that we're anywhere in sight of that for the Rangers. Sports franchises are a business, not a public service. As much as I disagree with it, the reality of most business is to make as much profit as possible.

And that being said, I'm pretty surprised that, supposing that the 4th quarter profits represent something near a quarterly average for the 1st and 4th quarters at the Garden last year, with the 2nd and 3rd quarters being less due to the offseason, the company made somewhere between $90m and $110m last year. That's WAY less than I would have thought.

Oh and LOL... the playoffs make the team more money and makes the team more popular? Reeeeeeeaaally??????


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