MSG Sports activities President and CEO Andrew Lustgarten will step down on the finish of the 12 months, the crew introduced Friday.
Lustgarten, 45, a childhood pal of MSG Govt Chair James Dolan, has run the enterprise aspect for the Knicks and Rangers since MSG break up possession of the sports activities groups from arenas and the cable tv community in April 2020.
“With the corporate on agency footing and the NBA and NHL seasons to begin quickly, that is the precise time for me to pursue different alternatives,” Lustgarten stated in a written assertion.
Dolan will proceed to supervise crew operations for the Knicks and Rangers, MSG stated. David Hopkinson will probably be promoted to grow to be president and COO of MSG Sports activities.
“Andy’s management at each our sports activities and leisure firms has helped solidify MSG’s place as an trade chief,” Dolan stated in a written assertion.
“He has efficiently pushed a number of strategic initiatives to develop and variety our firms.”
Lustgarten, who has been in MSG management roles since 2014 and helped to form the spin-out, will be part of the MSG Sports activities Board as a director on the finish of the 12 months.
“We have now little doubt, as he embarks on his subsequent chapter, that that is only the start of what he’ll accomplish,” Dolan stated.
Lustgarten’s father, Marc, was chair of what was Dolan-controlled Cablevision’s MSG from 1997 till he handed away in 1999. Marc had labored in different capacities for the Dolans over a few years.
MSG Sports activities posted file income within the final quarter, and Lustgarten has overseen strategic strikes like promoting the Discussion board Enviornment in Los Angeles for $400 million and MSG’s acquisition of the Tao Hospitality Group, MSG stated.
Lustgarten has expressed frustration at MSG Sports activities’ share worth that on the time of the spin-off was $161.15 and closed Friday, 30 months later, at $159.54.
The worth of MSG Sports activities when including its internet debt is $4.7 billion, whereas the Knicks and Rangers in the event that they have been offered would doubtless fetch round a mixed $7 billion, funding bankers stated.
Meaning the inventory is buying and selling at a 33% low cost to the crew’s values.
There was hypothesis Dolan would possibly mix MSG Sports activities and MSG Leisure once more however that now seems to be off the desk.
MSG Leisure is as a substitute exploring the potential for splitting its enterprise into two, with the MSG Enviornment and cable tv community in a single firm, and Las Vegas Sphere and Tao within the different, because it additionally tries to spice up its share worth.
Inside NBA numbers present the Knicks within the 2021-22 season had the third-highest common gate, $2.98 million per recreation. That is a rise of 9.2 p.c from the final non-COVID season of 2018-19.
That’s in step with the league common 10.2 p.c rise, in accordance with confidential NBA knowledge.
The Knicks this 12 months are adding about 24 seats replacing what used to be part of the scorer’s table for many games selling tickets for between $5,000 and $15,000 relying on the opponent, in accordance with a supply within the ticket trade.
That would increase internet gate income by 3 p.c by itself if the tickets have been offered for a median of $5,000 every.
A Knicks playoff run, because the Rangers had final 12 months, would additionally go a long way in boosting the underside line.
