Dolan's comments support Bettman, Msg revenue statement..

[ATLANTARANGER*]

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.

 

[ATLANTARANGER*]

Specific? Bill wirtz reports none of the lux boxes

Like what?
The NHLPA is always saying the owners aren't counting all the hockey related revenue when talking about their losses, but they never give specific examples.

as hockey revenue. It is a running joke in the NHL. I have a friend who was in the Blackhawks organization and he confirmed it. Everyone knows about. That is just one example. Another is the NYR's and Cablevision and Cablevisions treatment of the cable revenue generated off of the NYR games. NYR's show a fraction of the actual, true value on their books as income.

 

[bcrt2000]

as hockey revenue. It is a running joke in the NHL. I have a friend who was in the Blackhawks organization and he confirmed it. Everyone knows about. That is just one example. Another is the NYR's and Cablevision and Cablevisions treatment of the cable revenue generated off of the NYR games. NYR's show a fraction of the actual, true value on their books as income.

NYR isn't cheating anyone, they are just showing what each part of the company has made. The NHLPA's job is to step up and say, hey, we want X, Y and Z counted as hockey revenue in the new CBA.

 

[NYIsles1*]

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.

http://www.senatormarchi.com/press_archive_story.asp?id=9747

Cablevision pays no real-estate taxes on the Garden and has an exemption that was given to them by the city which is worth an estimated eleven million dollars according to Bloomberg who wants to revoke it. Apparently there are items that do no fall under the corporation outside the city. (above link)

Outside sources estimate the Rangers cable revenue is at eighteen million, (down from twenty five) about one million more than Forbes claims they pay the Isles for the tv rights. This does not count the new deal the Devils signed with a twenty year extension and a significant bump from the eight million they were receiving a few months ago to keep them from going to Time Warner/Comcast.

Basically Cablevision overpaid so much to control their competition's television rights they lose money on television revenue for hockey, especially when the ratings for all three teams play equal only 100,000 homes according to Newsday's Steve Zipay.

The NHL in one of it's offers to the PA suggested both sides select someone agreed to by both sides to audit every teams books each year, with huge $$$ penalties and loss of draft picks for non-disclosure. Apparently Dolan is more than willing to prove he lost 40 million if the league offered that.

All due respect, if you think the Rangers are making profits or if seats are paid for and empty your not in the building for games or speaking with the people selling tickets. The Knicks the last two years have only had 12-13,000 season tickets with the corporations and rarely fill the seats. (beyond the posted sellout) Any Ranger game and any section usually has plenty of available seats on gameday. I think the only true sellout they had last season was Richter's retirement night.

The Ranger situtation is far worse because the Knicks are the signature team at Msg and that is where the real revenues come from.

The Blues for years claim losses like the Rangers and unlike Msg fill every seat and play in a modern building far superior to Msg in terms of luxury boxes. If they can lose that much and all these other teams in new buildings with full houses (Flyers, Avs, Dallas) lose money it's very consistent the Ranger lose what Dolan and industry sources claim.