Document

The fiscal 2025 fourth quarter was highlighted by the New York Knicks’ (the “Knicks”) participation in the NBA playoffs, which included nine home playoff games at the Madison Square Garden Arena (“The Garden”) and culminated with the team’s appearance in the Eastern Conference Finals. This compared to fifteen combined home playoff games for the Knicks and the New York Rangers (the “Rangers”) in the prior year quarter. In addition, fiscal 2025 fourth quarter and full-year results reflect increases in average regular season per-game revenues, including tickets, sponsorship and suites; the impact of reductions in local media rights fees as a result of amendments to the Knicks' and Rangers' local media rights agreements with MSG Networks Inc. ("MSG Networks"); the impact of the Knicks’ and Rangers’ rosters for the 2024-25 seasons; and the impact of certain team personnel transactions.

For the fiscal 2025 fourth quarter, the Company generated revenues of $204.0 million, a decrease of $23.3 million, or 10%, as compared to the prior year quarter. In addition, the Company reported an operating loss of $22.6 million and an adjusted operating loss of $16.8 million, as compared to operating income of $52.3 million and adjusted operating income of $56.5 million in the prior year quarter.(1)

Madison Square Garden Sports Corp. Executive Chairman and CEO James L. Dolan said, “Fiscal 2025 was highlighted by growth in per-game revenues and the Knicks' postseason run to the Eastern Conference Finals, while it also reflected our investment in our teams and the changing local media landscape. Looking ahead, we expect continued strong demand for the Knicks and Rangers and remain confident in the value of owning two professional sports franchises.”

For the fiscal 2025 fourth quarter, revenues of $204.0 million decreased $23.3 million, or 10%, as compared to the prior year quarter. The decrease was primarily due to lower playoff-related revenues, lower revenues from leagues distributions and, to a lesser extent, lower food, beverage and merchandise sales and local media rights fees. During the fiscal 2025 fourth quarter, the Rangers and the Knicks played a combined one fewer regular season game and six fewer playoff games at The Garden, both as compared to the prior year quarter.

Playoff-related revenues decreased $12.9 million as compared to the prior year quarter, primarily due to the Rangers playing eight home playoff games in the prior year quarter as compared to not qualifying for the playoffs in the current year quarter. This decrease was partially offset by higher per-game Knicks playoff revenue and two additional Knicks home playoff games as compared to the prior year quarter.

Food, beverage and merchandise sales decreased $1.8 million as compared to the prior year quarter, primarily due to lower average per-game revenue, lower online sales of merchandise and the Knicks and Rangers playing a combined one fewer regular season game at The Garden during the fiscal 2025 fourth quarter. Merchandise sales in the fiscal 2024 fourth quarter included the positive impact of new Rangers’ jersey launches.

Local media rights fees decreased $1.1 million as compared to the prior year period, primarily due to a reduction in local media rights fees for the 2024-25 season as a result of amendments to the Knicks' and Rangers' local media rights agreements with MSG Networks. This decrease was partially offset by net lower reductions in rights fees as compared to the prior year quarter related to the number of telecasts exclusively available to MSG Networks.

Direct operating expenses of $154.8 million increased $47.1 million, or 44%, as compared to the prior year quarter. This increase was primarily driven by higher net provisions for certain team personnel transactions of $42.8 million, higher net provisions for league revenue sharing expense (net of escrow and excluding playoffs) and NBA luxury tax of $9.8 million and higher team personnel compensation of $2.9 million, all as compared to the prior year period. These increases were partially offset by lower playoff-related expenses of $5.5 million, as well as other cost decreases.

Selling, general and administrative expenses of $70.9 million increased $4.5 million, or 7%, as compared to the prior year quarter. This increase was primarily driven by higher professional fees of $3.7 million, higher playoff-related expenses of $1.5 million, as well as higher other general and administrative expenses, partially offset by lower sales and marketing costs of $1.3 million and lower employee compensation and related benefits of $1.2 million.

On June 27, 2025, the Knicks and Rangers amended their respective media rights agreements with MSG Networks, which included: (i) 28% and 18% reductions in annual rights fees payable to the Knicks and Rangers, respectively, effective January 1, 2025; (ii) an elimination of annual rights fee escalators; and (iii) a change to the contract expiration dates to the end of the 2028-29 seasons, subject to a right of first refusal in favor of MSG Networks. Concurrent with the amendments to the media rights agreements, MSG Networks issued penny warrants to the Company exercisable for 19.9% of the equity interests in MSG Networks.

Madison Square Garden Sports Corp. (MSG Sports) is a leading professional sports company, with a collection of assets that includes the New York Knicks (NBA) and the New York Rangers (NHL), as well as two development league teams – the Westchester Knicks (NBAGL) and the Hartford Wolf Pack (AHL). MSG Sports also operates a professional sports team performance center – the MSG Training Center in Greenburgh, NY. More information is available at www.msgsports.com.

We define adjusted operating income (loss), which is a non-GAAP financial measure, as operating income (loss) excluding (i) depreciation, amortization and impairments of property and equipment, goodwill and other intangible assets, (ii) share-based compensation expense or benefit, (iii) restructuring charges or credits, (iv) gains or losses on sales or dispositions of businesses, (v) the impact of purchase accounting adjustments related to business acquisitions, and (vi) gains and losses related to the remeasurement of liabilities under the Company’s Executive Deferred Compensation Plan. Because it is based upon operating income (loss), adjusted operating income (loss) also excludes interest expense (including cash interest expense) and other non-operating income and expense items. We believe that the exclusion of share-based compensation expense or benefit allows investors to better track the performance of our business without regard to the settlement of an obligation that is not expected to be made in cash. In addition, we believe that the exclusion of gains and losses related to the remeasurement of liabilities under the Company’s Executive Deferred Compensation Plan provides investors with a clearer picture of the Company’s operating performance given that, in accordance with U.S. generally accepted accounting principles (“GAAP”), gains and losses related to the remeasurement of liabilities under the Company’s Executive Deferred Compensation Plan are recognized in Operating (income) loss whereas gains and losses related to the remeasurement of the assets under the Company’s Executive Deferred Compensation Plan, which are equal to and therefore fully offset the gains and losses related to the remeasurement of liabilities, are recognized in Miscellaneous income (expense), net, which is not reflected in Operating income (loss).

We believe adjusted operating income (loss) is an appropriate measure for evaluating the operating performance of our Company. Adjusted operating income (loss) and similar measures with similar titles are common performance measures used by investors and analysts to analyze our performance. Internally, we use revenues and adjusted operating income (loss) as the most important indicators of our business performance, and evaluate management’s effectiveness with specific reference to these indicators. Adjusted operating income (loss) should be viewed as a supplement to and not a substitute for operating income (loss), net income (loss), cash flows from operating activities, and other measures of performance and/or liquidity presented in accordance with GAAP. Since adjusted operating income (loss) is not a measure of performance calculated in accordance with GAAP, this measure may not be comparable to similar measures with similar titles used by other companies. For a reconciliation of operating income (loss) to adjusted operating income (loss), please see page 5 of this earnings release.

This press release may contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties, and that actual results, developments and events may differ materially from those in the forward-looking statements as a result of various factors, including financial community and rating agency perceptions of the Company and its business, operations, financial condition and the industry in which it operates, and the factors described in the Company’s filings with the Securities and Exchange Commission, including the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained therein. The Company disclaims any obligation to update any forward-looking statements contained herein.


	Three Months Ended				Twelve Months Ended
	June 30,				June 30,
	2025		2024		2025		2024
Revenues	$	203,957	$	227,251	$	1,039,220	$	1,027,149
Direct operating expenses	154,819		107,743		755,118		616,514
Selling, general and administrative expenses	70,892		66,413		266,076		261,433
Depreciation and amortization	822		792		3,218		3,164
Operating (loss) income	(22,576)		52,303		14,808		146,038
Other income (expense):
Interest income	1,429		1,238		4,034		2,787
Interest expense	(4,990)		(6,320)		(21,652)		(27,589)
Miscellaneous expense, net	(984)		(4,491)		(14,462)		(15,568)
Loss (income) before income taxes	(27,121)		42,730		(17,272)		105,668
Income tax benefit (expense)	25,341		(17,239)		(5,166)		(46,897)


Net (loss) income	$	(1,780)	$	25,491	$	(22,438)	$	58,771

Basic (loss) earnings per common share attributable to Madison Square Garden Sports Corp.’s stockholders	$	(0.07)	$	1.06	$	(0.93)	$	2.45
Diluted (loss) earnings per common share attributable to Madison Square Garden Sports Corp.’s stockholders	$	(0.07)	$	1.06	$	(0.93)	$	2.44

Basic weighted-average number of common shares outstanding	24,105		24,030		24,089		24,011
Diluted weighted-average number of common shares outstanding	24,105		24,156		24,089		24,096


	Three Months Ended				Twelve Months Ended
	June 30,				June 30,
	2025		2024		2025		2024
Operating (loss) income	$	(22,576)	$	52,303	$	14,808	$	146,038
Depreciation and amortization	822		792		3,218		3,164
Share-based compensation	3,776		3,222		17,935		21,291

Remeasurement of deferred compensation plan liabilities	1,222		193		2,195		1,749

Adjusted operating (loss) income	$	(16,756)	$	56,510	$	38,156	$	172,242


	June 30, 2025		June 30, 2024

ASSETS
Current Assets:
Cash and cash equivalents	$	144,617	$	89,136
Restricted cash	8,571		5,771
Accounts receivable, net	25,855		33,781

Net related party receivables	3,582		32,255
Prepaid expenses	43,417		30,956

Other current assets	25,053		25,043
Total current assets	251,095		216,942
Property and equipment, net	28,962		28,541
Right-of-use lease assets	760,456		694,566

Indefinite-lived intangible assets	103,644		103,644
Goodwill	226,523		226,523
Investments	54,720		62,543
Deferred tax assets, net	34,821		—
Other assets	12,753		13,533
Total assets	$	1,472,974	$	1,346,292


	June 30, 2025		June 30, 2024

LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable	$	9,336	$	9,900
Net related party payables	4,807		6,718
Debt	24,000		30,000

Accrued liabilities:
Employee-related costs	98,924		133,930
League-related accruals	196,567		120,876
Other accrued liabilities	13,093		21,613
Operating lease liabilities, current	52,618		50,267

Deferred revenue	164,178		148,678
Total current liabilities	563,523		521,982

Long-term debt	267,000		275,000
Operating lease liabilities, noncurrent	841,050		749,952
Defined benefit obligations	4,086		4,103
Other employee-related costs	78,092		43,493
Deferred tax liabilities, net	—		16,925
Deferred revenue, noncurrent	662		1,147

Total liabilities	1,754,413		1,612,602
Commitments and contingencies

Class A Common stock, par value $0.01, 120,000 shares authorized; 19,488 and 19,423 shares outstanding as of June 30, 2025 and 2024, respectively	204		204
Class B Common stock, par value $0.01, 30,000 shares authorized; 4,530 shares outstanding as of June 30, 2025 and 2024	45		45
Preferred stock, par value $0.01, 15,000 shares authorized; none outstanding as of June 30, 2025 and 2024	—		—
Additional paid-in capital	15,348		19,079
Treasury stock, at cost, 960 and 1,025 shares as of June 30, 2025 and 2024, respectively	(158,543)		(169,547)
Accumulated deficit	(137,596)		(115,139)
Accumulated other comprehensive loss	(897)		(952)


Total equity	(281,439)		(266,310)
Total liabilities and equity	$	1,472,974	$	1,346,292


	Twelve Months Ended
	June 30,
	2025		2024
Net cash provided by operating activities	$	91,607	$	92,131
Net cash used in investing activities	(6,920)		(8,898)
Net cash used in financing activities	(26,406)		(28,785)
Net increase in cash, cash equivalents and restricted cash	58,281		54,448
Cash, cash equivalents and restricted cash at beginning of period	94,907		40,459
Cash, cash equivalents and restricted cash at end of period	$	153,188	$	94,907


	Three Months Ended								Twelve Months Ended
	June 30,				Change				June 30,				Change
$ millions	2025		2024		$		%		2025		2024		$		%
Revenues	$	204.0	$	227.3	$	(23.3)	(10)	%	$	1,039.2	$	1,027.1	$	12.1	1	%
Operating (loss) income	$	(22.6)	$	52.3	$	(74.9)	NM		$	14.8	$	146.0	$	(131.2)	(90)	%
Adjusted operating (loss) income(1)	$	(16.8)	$	56.5	$	(73.3)	NM		$	38.2	$	172.2	$	(134.1)	(78)	%


Ari Danes, CFA Investor Relations and Financial Communications (212) 465-6072			Justin Blaber Financial Communications (212) 465-6109
Grace Kaminer Investor Relations (212) 631-5076