MSG Sports activities President and CEO Andrew Lustgarten will step down on the finish of the yr, the crew introduced Friday.
Lustgarten, 45, a childhood pal of MSG Govt Chair James Dolan, has run the enterprise facet 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 start out quickly, that is the fitting time for me to pursue different alternatives,” Lustgarten mentioned in a written assertion.
Dolan will proceed to supervise crew operations for the Knicks and Rangers, MSG mentioned. 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 corporations has helped solidify MSG’s place as an business chief,” Dolan mentioned in a written assertion.
“He has efficiently pushed a number of strategic initiatives to develop and variety our corporations.”
Lustgarten, who has been in MSG management roles since 2014 and helped to form the spin-out, will be a part of the MSG Sports activities Board as a director on the finish of the yr.
“We have now little doubt, as he embarks on his subsequent chapter, that that is only the start of what he’ll accomplish,” Dolan mentioned.
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 mentioned.
Lustgarten has expressed frustration at MSG Sports activities’ share value 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 had been offered would probably fetch round a mixed $7 billion, funding bankers mentioned.
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 an alternative exploring the potential of 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 value.
Inner NBA numbers present the Knicks within the 2021-22 season had the third-highest common gate, $2.98 million per sport. That is a rise of 9.2 % from the final non-COVID season of 2018-19.
That’s consistent with the league common 10.2 % rise, in response to confidential NBA knowledge.
The Knicks this yr are including about 24 seats changing what was a part of the scorer’s desk for a lot of video games promoting tickets for between $5,000 and $15,000 relying on the opponent, in response to a supply within the ticket business.
That might increase internet gate income by 3 % by itself if the tickets had been offered for a mean of $5,000 every.
A Knicks playoff run, because the Rangers had final yr, would additionally go far in boosting the underside line.