Rangers Are Among the Most Valuable NHL Teams, But Aren’t Profitable
Sports teams are selling for record prices, but even some of the best-known franchises lose money—or earn relatively little.
That’s something that individual investors ought to consider amid the growing popularity of private funds that buy into professional sports teams. The teams are the ultimate trophy properties for billionaires who can derive some tax benefits from ownership. Madison Square Garden Sports owns the New York Knicks and New York Rangers, two of the premier franchises in pro basketball and hockey. The company recently provided financial information in a public filing on the Rangers ahead of a corporate breakup that allows investors to see the profitability of each team. The company previously has lumped the two team’s revenues and profits together in its financial statements. It turns out that the Rangers, one of the marquee teams in the National Hockey League, were unprofitable in each of the past two fiscal years ending in June, losing $16 million on a pro forma basis in the latest year.
Business of Hockey
