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09-06-2004, 06:16 PM
Join Date: Oct 2002
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Originally Posted by Russian Fan
sorry for my skepticism but I sincerely doubt the Rangers are losing money ! If they Leafs are making a ton of money $$$$ & being in a Canadian Market paying mostly in USD$$$$, I would be very , very, surprise if they lose money.
Here it is from the New York Rangers own beatwriter, Larry Brooks.</FONT></FONT></FONT>

They aren't about aiding small markets, either, not when one of the pieces of the league's now-obsolete proposal to the PA for centralized negotiation of contracts included a stipulation in which free agents due the largest contracts would be assigned to teams with the largest revenues and thus, the ability to absorb them; not when in the Newark meeting a few weeks ago, the league cited the Rangers, Chicago and St. Louis as primary examples of clubs that lose money under the current system.

Here is Cablevisions own statement, which is not the easier to understand Newsday version breakdown that basically said the Rangers were losing money but this explains Msg's profits and where they came from, nothing came from the hockey operation.

Madison Square Garden

Operating income for the second quarter totaled $107.7 million compared to an operating loss of $9.3 million in the prior year period.

The second quarter operating income and AOCF include the recognition of a $54.0 million payment received from the New York Mets (related to the exercise of a termination option under their rights agreement, effective for the 2006 season) and the related reversal of a $41.8 million purchase accounting liability. Additionally, the quarter includes a one-time expansion payment from the NBA of $10.3 million, which is recorded in net revenue. Excluding these
one-time items, second quarter net revenues would have grown 17% and AOCF would have grown $4.7 million or 49%, driven by playoff revenue from the Knicks and more event bookings.

So in short Msg's sports revenue increase from an operating loss of 9.3 million a year ago to 107.7 million:

Where did it come from:
Mets buyout 54 million
purchase accounting liability 41.8 million
Charloette Bobcats expansion fee 10.3 million

Without the one time accountings Msg would have produced 4.7 million in revenue from the Knicks and event bookings.

It's fair to say if those bookings are significant the Rangers lost a lot of revenue and it confirms two years of losses from the same quarter.

Last edited by NYIsles1*: 09-06-2004 at 07:25 PM.
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