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It’s going to be awhile before the owner of the New York Knicks and Rangers recovers from the coronavirus, according to a Wall Street report. Revenue for the newly formed Madison Square Garden Sports Corp. will fall by 35 percent in the year ending June 30, 2021, to a projected $456 million, according to a …
It’s going to be awhile before the owner of the New York Knicks and Rangers recovers from the coronavirus, according to a Wall Street report.
Revenue for the newly formed Madison Square Garden Sports Corp. will fall by 35 percent in the year ending June 30, 2021, to a projected $456 million, according to a Jefferies analyst report published Monday.
The revenue drop will come as fan attendance falls in the first half of the 2020-21 season by 80 percent before rebounding somewhat to around 50 percent of its normal capacity in the second half, Jefferies said.
“The 20 percent capacity limitation is similar to plans other hospitality or leisure companies have outlined, including theme parks and casinos,” Jefferies analyst Khoa Ngo said.
Revenue for the year that just ended will actually be better than next year, as the majority of the Knicks and Rangers games had already occurred when the pandemic hit, Ngo said.
And by 2021-22, MSGS sales should bounce back to around $700 million, Ngo said.
In the meantime, MSGS will be boosted by revenue from long-term media contracts that will continue to flow regardless of attendance, Jefferies said.
MSG renamed itself MSGS after splitting its events business from its sporting side on April 17.
