James Dolan has reaffirmed one of the oldest maxims in sports: Winning sells.
Dolan, owner of the NHL’s Rangers and NBA’s Knicks, and his Madison Square Garden Sports Corp. reported Tuesday a record-level set of corporate earnings that showed some of the impact from the deep playoff runs enjoyed this past spring by the two teams.
MSG Sports said it posted record revenue of $1.03 billion for its fiscal 2024, up by 16% from the prior year—and operating income of $146 million, an increase of 71% and also a company record. For the fiscal fourth quarter ending June 30, MSG Sports generated $227.3 million revenue, up by 79% year over year, and $52.3 million in operating income, dramatically reversing a comparable loss of $12.2 million from that period in 2023.
The figures follow a high-profile quarter in which both the Knicks and Rangers reached the second round of their respective league playoffs, the first time that’s happened since 2013, while the hockey team advanced to the Eastern Conference finals. The postseason runs helped recall the team’s famed summer of 1994 that ended with a Stanley Cup title for the Rangers and seven-game NBA Finals loss for the Knicks.
“Our fans’ enthusiastic support for our teams this past year was evident in many areas of our business, from ticket sales and per-cap spending at the Garden to local TV ratings and increased engagement on social [media],” said MSG Sports COO Jamaal Lesane, in an earnings call with analysts.
There is already a carryover to the upcoming NHL and NBA seasons, with the two teams’ combined ticket renewal rates standing at about 94%.
Regional Angst
In the earnings call, Madison Square Garden Sports also continued the objections from Dolan about the NBA’s recently completed $77 billion set of national media-rights deals. Dolan has argued the agreements, despite the huge increase in fees compared to the current pacts, cut into his ability to generate revenue from local broadcasts.
“The [regional sports network] industry is already facing a challenging environment,” Lesane said. “The reduction in local telecasts [in the new NBA deals] further impacts this valuable part of our ecosystem, which teams have relied on to drive enhanced fan engagement.”
More Dolan Growth
The New York sports teams are not the only growing part of the Dolan empire. The Sphere, the next-generation $2.3 billion venue in Las Vegas that opened last year to great fanfare, continues to awe both sports and music fans. The NHL recently used the building to great success for its 2024 draft, while UFC will be in there for an event Sept. 14. Most recently, Dead & Company completed a 30-date residency there, following prior concert stints by U2 and Phish.
Sphere Entertainment Co., the corporate entity that includes the Sphere and Dolan’s RSN operations, will report its next set of quarterly earnings Wednesday.
