Knicks boost revenue dramatically despite local media rights cuts

In the United States, the New York Knicks hosted an Eastern Conference Finals game on a Wednesday evening at Madison Square Garden, marking their first appearance in this round since 2000. A sold-out audience filled the venue, featuring numerous celebrities and entertainers, including Mary J. Blige, who performed during halftime. The Knicks faced the Indiana Pacers and narrowly lost 138-135 after an intense overtime period, continuing the pressure on the team to bounce back for further home games in the playoffs. Despite the heart-wrenching loss, MSG Sports Corp., the parent company of the Knicks and the New York Rangers, reported a substantial revenue increase attributed to playoff-related income. Financial documents revealed that the corporation experienced a rise of $71.8 million in revenue linked to playoff games during the fiscal year ending June 30, 2024. This financial improvement came as a result of the Knicks and Rangers hosting a total of seven more home playoff games compared to the previous year, with each game generating an average of over $10.2 million in revenue. Nevertheless, this financial success was juxtaposed with a notable decline in local media rights revenue. MSG Networks, owned by Sphere Entertainment Co., announced decreases for both the Knicks and Rangers, with reductions of 28% and 18%, respectively, as part of a debt restructuring initiative. Despite this drop, analysts indicated that both teams still maintain among the highest local media rights revenues in their leagues. Currently, local media rights represent approximately 15% of MSG Sports’ overall revenue, a figure projected to further decrease in the coming years. For the Knicks, the implications of a strong playoff presence encompass more than just immediate revenue boosts. Continued success in the playoffs is expected to increase attendance and interest in the franchise for subsequent seasons, significantly influencing various revenue streams, from ticket sales to sponsorship deals. Moreover, MSG Sports Corp.'s overall revenue for the past fiscal year exceeded $1 billion, marking a year-over-year growth of 15.7%. Profitability also improved, with net income rising by nearly 29%, demonstrating the powerful financial effects of postseason games even amidst challenges in the media rights arena.