The pandemic continues to take a toll on the New York Knicks and Rangers.

On a Wednesday earnings name, Madison Sq. Backyard Sports activities, the publicly listed mum or dad firm that controls the groups, stated income fell 90 % for the three months ending Dec. 31 to $29 million. In consequence it misplaced $38 million in comparison with breaking even a 12 months earlier.

Thankfully, MSGS has $290 million in money and borrowing capability, a lot of it from a November debt refinancing, which can assist it weather the storm, the corporate stated.

On the decision MSGS execs stated they wish to open Knicks and Rangers video games to a diminished variety of followers this season “in a phased approach,” and that they’re in talks with NY state to attempt to make it occur.

MSGS President and CEO Andrew Lustgarten pointed to the power of the air filtration system within the midtown Manhattan space, which was renovated in 2013.

Since Feb. 20, as fears of the pandemic started to take maintain, MSGS shares have fallen from $223 to $167 mid-day Wednesday, a 25 % drop.

The corporate, when including fairness and debt is value $5.25 billion. The Knicks, the corporate’s most dear asset, was value $4.6 billion alone based mostly on Forbes’ February 2020 valuation.

Lustgarten steered on the decision that sports activities’ workforce worth have been holding up regardless of the monetary influence of the pandemic. He talked about Utah Jazz, a small market workforce that offered in October for a sturdy $1.66 billion.

He additionally applauded the NBA’s resolution final week to open up the sale of minority stakes in groups to personal fairness corporations, saying it’s going to assist drive workforce valuations.

As The Publish exclusively reported this week, the Golden State Warriors are promoting a 5 % stake within the workforce at a $5 billion valuation, a lot increased than its $4.3 billion Forbes 2020 valuation.

If the Warriors succeed, that would carry the worth of the Knicks and the MSGS shares.

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