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Four reasons why reaching the playoffs can boost a sports franchise
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Four reasons why reaching the playoffs can boost a sports franchise

Key findings

  • Madison Square Garden Sports explained the impact of the New York Knicks and Rangers’ playoff runs in a conference call on Tuesday.
  • Playoff tickets cost more, and postseason games cause fans to renew their season tickets at higher prices.
  • Fans are willing to spend money during the playoffs, and additional exposure helps attract more followers.

Sports fans love playoff runs – and so do the box office at these playoff games.

Some of the reasons are obvious: More games not only mean more TV time, but also more money for tickets, popcorn, beer, T-shirts, pennants, water bottles and all kinds of giveaways.

But that’s not all. During a conference call on Tuesday, executives from Madison Square Garden Sports (MSGS) — the owner of teams like the New York Knicks and Rangers — announced fourth-quarter financial results that show even more playoff implications after both major leagues extended their seasons into May and June, respectively. Here are four ways playoff teams are in the black:

  • Playoff tickets cost more. And according to Victoria Mink, CFO at MSGS, not only are they more expensive, but prices are also increasing with each round as fans shell out more money to witness history.
  • Fans come and enjoy spending money. According to Mink, per capita spending on food, drinks and merchandise in the playoffs is “typically above the regular season average.”
  • Playoff campaigns don’t just sell playoff tickets. They also help increase season ticket renewals and attract new season ticket buyers, according to COO Jamaal Lesane.
  • They generate tangible excitement. Of the company’s 830,000 new social media followers in the last fiscal year, around 35 percent were added during the playoffs, Lesane said.

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