It’s going to be awhile earlier than the proprietor of the New York Knicks and Rangers recovers from the coronavirus, in line with a Wall Avenue report.
Income for the newly fashioned Madison Sq. Backyard Sports activities Corp. will fall by 35 % within the yr ending June 30, 2021, to a projected $456 million, in line with a Jefferies analyst report revealed Monday.
The income drop will come as fan attendance falls within the first half of the 2020-21 season by 80 % earlier than rebounding considerably to round 50 % of its regular capability within the second half, Jefferies stated.
“The 20 % capability limitation is much like plans different hospitality or leisure corporations have outlined, together with theme parks and casinos,” Jefferies analyst Khoa Ngo stated.
Income for the yr that simply ended will really be higher than subsequent yr, as the vast majority of the Knicks and Rangers video games had already occurred when the pandemic hit, Ngo stated.
And by 2021-22, MSGS gross sales ought to bounce again to round $700 million, Ngo stated.
Within the meantime, MSGS might be boosted by income from long-term media contracts that may proceed to movement no matter attendance, Jefferies stated.
MSG renamed itself MSGS after splitting its occasions enterprise from its sporting facet on April 17.