ATLANTARANGER*
Guest
Here is what many people (fans) don't get
MSG, the Rangers and the Knicks are all located in NYC. NYC has a high local business tax rate. The cable revenue, which under normal circumstances would be reflected in any/all of those 3 entities, yet they are not. Why? because Cablevision, the Parent Company, is located out on Long Island, where there is a lower business tax rate. Thus only a small portion of the actual revenues that those 3 entities would normally receive are not posted to their bottom line.
By showing losses on the subsidiaries in NYC the Parent pays no local taxes in NYC and can carry forward the losses onto their balance sheet to offset the income they received from those 3 subsidiaries. So the NHLPA is right when they say that they don't trust the books. If any of those 3 subsidiaries were independent they would show a completely different financial picture.
MSG, the Rangers and the Knicks are all located in NYC. NYC has a high local business tax rate. The cable revenue, which under normal circumstances would be reflected in any/all of those 3 entities, yet they are not. Why? because Cablevision, the Parent Company, is located out on Long Island, where there is a lower business tax rate. Thus only a small portion of the actual revenues that those 3 entities would normally receive are not posted to their bottom line.
By showing losses on the subsidiaries in NYC the Parent pays no local taxes in NYC and can carry forward the losses onto their balance sheet to offset the income they received from those 3 subsidiaries. So the NHLPA is right when they say that they don't trust the books. If any of those 3 subsidiaries were independent they would show a completely different financial picture.