It says here Players talking of $60 million luxury tax threshold
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09-06-2004, 07:36 PM
Join Date: Jul 2004
Originally Posted by
One of the biggest misconceptions around hockey today is that the Rangers are this big market team that make money and has revenue to share and sellout games, it's just not true. Writers in other markets do not follow what happens, meanwhile the Rangers play in obscurity in the New York sports market today, their high priced team of name players are invisible in the media here because baseball drives the market and the other teams take the rest of the attention span year round. There is only one fan demographic that goes to hockey games here. Hockey is not a major sport in this area.
i don't have quotes or anything but here is how the Rangers make money. Dolan owns %100 of MSG, Dolan owns 100% of the MSG network and Dolan owns the Rangers. He is triple dipping into the team. While some teams might be lucky to get 50% of the gates at any hockey game, dolan gets 100% of the gates as well as food revenue(because he owns the arena and the team). If Dolan only owned the Rangers, sure it would be a losing proposition, but you figure he cleans in roughly 2 million+ a game when all is said in done with him owning both the team and arena(80 million over a season).
When he is doing his financial records, he probably only claims a small amount(let's say way less then the average team) of the gates at MSG and can write the team as a loss.
The same can be said about his local TV coverage. Dolan gets 100% of that money as well(every cent that advertisers pay go into dolan's pocket as well as every penny that cable companies pay him to have his service which show the Rangers), while most other teams can only claim a percentage.
Doing very rough estiments, Dolan makes roughly $80 in ticket revnues, 40 million for showing Ranegr games on MSG network and 10 million from the league contracts. That's a total of 130 million in revenue. The price he pays for his team is 70 million in contracts, 30 million in operating expenses. So when all is said and done the Rangers make him a decent profit(when you look at the 3 businesses he owns). If Dolan didn't own MSG or the MSG network, the Rangers would be big money losers.
Last edited by NYI: 09-06-2004 at
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