Knicks, Rangers Playoff Runs Push MSGS to $1B Revenue Record

Deep playoff runs by the New York Knicks and New York Rangers near the end of the 2024 fiscal year boosted the coffers of Madison Square Garden Sports, as the two teams’ parent company posted record revenue numbers.

MSGS reported $227 million in revenue during the 2024 fiscal fourth quarter ending June 30—up $100 million compared to the same period last year—as the Knicks advanced to the Eastern Conference semifinals and the Rangers reached the Eastern Conference Final. This season was the first since 2013 that saw both MSG teams reach at least the second round of the playoffs in the same year. The combination of seven additional playoff games and four more regular season games compared to last year’s fourth quarter helped MSGS close out a strong fiscal year where total revenue topped a record $1 billion, a 16% jump ($139 million) from the 2023 fiscal year.

But the fourth quarter was the highlight, when Jalen Brunson and the Knicks came just shy of their first conference finals berth since 2000. The Rangers meanwhile reached the conference finals for the second time in three seasons.

This helped MSGS earn a $25 million profit during a fourth quarter that ended on June 30, compared to a net loss of $9.3 million during the same period last year. MSGS also said that sponsorship, suite revenues and revenues from leaguewide distributions were all up year-over-year, which helped the company set a new annual record of total adjusted operating income ($172.2 million).

This rare peek into the finances of pro sports teams comes after MSGS executive chairman James Dolan recently criticized the NBA’s revenue-sharing policies and its new $74 billion media deal, which he says deemphasizes the league’s regional sports networks. MSGS COO Jamaal Lesane echoed that sentiment on Tuesday during an investor call by saying that the evolving landscape—which may result in a reduction in the number of live exclusive telecasts—impacts local media rights partner MSG Networks, which faces a “significant” debt maturity in October.

“We’re assessing the impact these new rights agreements may have on other areas of our business including local media rights revenue,” MSGS CFO Victoria Mink said on the call. Mink mentioned a reduction in local media rights fees would partially offset the increase in national revenue derived from NBA’s new media deal.

MSGS Sports looks to duplicate the financial success by bolstering both teams this offseason. The Knicks re-signed Brunson, an All-NBA guard, and small forward OG Anunoby while trading for another former Villanova star in Mikal Bridges from the Brooklyn Nets. The Rangers have also added new players, including 2023 Stanley Cup winner Reilly Smith, who was acquired via trade from the Pittsburgh Penguins.

The Knicks and Rangers remain two of the most valuable teams in U.S. pro sports despite Wall Street valuing MSGS at a steep discount compared to private valuations done by Sportico and other media outlets. When the execs were asked about the potential of a minority stake sale in the future, Lesane left the door open.

“These are incredibly scarce assets with strong business fundamentals, which we don’t think is appropriately reflected in our current stock price,” he added. “While we would never rule out the possibility of a minority stake sale, we have nothing to report at this time.”