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MADISON SQUARE GARDEN SPORTS CORP. REPORTS
FISCAL 2026 FIRST QUARTER RESULTS


NEW YORK, N.Y., October 31, 2025 - Madison Square Garden Sports Corp. (NYSE: MSGS) today reported financial results for the fiscal first quarter ended September 30, 2025.
This month, the New York Knicks (“Knicks”) and New York Rangers (“Rangers”) began their 2025-26 regular seasons at the Madison Square Garden Arena (“The Garden”). Recent Company operating highlights include:
•The combined average season ticket renewal rate for the Knicks and Rangers is approximately 94% for the 2025-26 seasons;
•The Company announced a new multi-year marketing partnership with GAME 7 that includes naming the multi-platform sports and entertainment brand as the first-ever jersey patch partner of the Rangers;
•The suites business continues to benefit from strong renewals and new sales activity, including for several recently renovated Lexus-level suites at The Garden; and
•The Rangers began a year-long campaign to celebrate the team’s 100th anniversary season, with a number of special offerings and initiatives planned across the season, including a special Centennial jersey that launched in September.
For the fiscal 2026 first quarter, the Company generated revenues of $39.5 million, a decrease of $13.9 million, or 26%, as compared to the prior year period. In addition, the Company reported an operating loss of $27.4 million, an increase of $19.2 million, and an adjusted operating loss of $20.8 million, an increase of $18.5 million, both as compared to the prior year period.(1)
Madison Square Garden Sports Corp. Executive Chairman and CEO James L. Dolan said, “With the new seasons underway, we are seeing strong ongoing demand for the Knicks and Rangers to start the fiscal year. We remain confident in the value of owning these two marquee professional sports franchises and our ability to generate long-term shareholder value.”

Financial Results for the Three Months Ended September 30, 2025 and 2024:
Three Months Ended
September 30,Change
$ millions20252024$%
Revenues$39.5 $53.3 $(13.9)(26)%
Operating loss$(27.4)$(8.3)$(19.2)NM
Adjusted operating loss(1)
$(20.8)$(2.3)$(18.5)NM
Note: Does not foot due to rounding. NM – Percentage is not meaningful.
1.See page 3 of this earnings release for the definition of adjusted operating income (loss) included in the discussion of non-GAAP financial measures.







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Summary of Financial Results
For the fiscal 2026 first quarter, revenues of $39.5 million decreased $13.9 million, or 26%, as compared to the prior year period. This primarily reflected lower revenues from league distributions of $11.4 million, mainly due to a decrease in certain league distributions unrelated to national media rights fees. In addition, local media rights fees decreased $2.3 million as compared to the prior year period, primarily due to the impact of amendments to the Knicks' and Rangers' local media rights agreements with MSG Networks entered into in the fiscal 2025 fourth quarter.
Direct operating expenses of $8.3 million increased $0.1 million, or 1%, as compared to the prior year period. This was primarily driven by higher net provisions for certain team personnel transactions of $1.5 million as well as other cost increases, mostly offset by lower net provisions for league revenue sharing expense (net of escrow and excluding playoffs) and NBA luxury tax of $2.4 million.
Selling, general and administrative expenses of $57.8 million increased $5.2 million, or 10%, as compared to the prior year period. This increase was primarily driven by (i) higher costs related to the Company's services agreement with Madison Square Garden Entertainment Corp. of $1.6 million, (ii) higher operating lease costs of $1.2 million, (iii) higher employee compensation and related benefits of $1.0 million, and (iv) higher other general and administrative expenses.
Operating loss of $27.4 million increased $19.2 million and adjusted operating loss of $20.8 million increased $18.5 million, both as compared to the prior year period, primarily due to the decrease in revenues and higher selling, general and administrative expenses.
About Madison Square Garden Sports Corp.
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.






























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Non-GAAP Financial Measures
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.

Forward-Looking Statements
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.
 # # #
Contacts:
Ari Danes, CFA
Investor Relations
(212) 465-6072
Grace Kaminer
Investor Relations
(212) 631-5076



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MADISON SQUARE GARDEN SPORTS CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended
September 30,
20252024
Revenues$39,454 $53,307 
Direct operating expenses8,279 8,211 
Selling, general and administrative expenses57,789 52,587 
Depreciation and amortization811 782 
Operating loss(27,425)(8,273)
Other income (expense):
Interest income578 864 
Interest expense(5,591)(6,055)
Miscellaneous income (expense), net15,085 (1,126)
Loss before income taxes(17,353)(14,590)
Income tax benefit8,555 7,048 
Net loss$(8,798)$(7,542)
Basic loss per common share attributable to Madison Square Garden Sports Corp.’s stockholders$(0.37)$(0.31)
Diluted loss per common share attributable to Madison Square Garden Sports Corp.’s stockholders$(0.37)$(0.31)
Basic weighted-average number of common shares outstanding
24,116 24,049 
Diluted weighted-average number of common shares outstanding
24,116 24,049 


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MADISON SQUARE GARDEN SPORTS CORP.
ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS) TO
ADJUSTED OPERATING INCOME (LOSS)
(In thousands)
(Unaudited)

The following is a description of the adjustments to operating loss in arriving at adjusted operating loss as described in this earnings release:

•Depreciation and amortization. This adjustment eliminates depreciation, amortization and impairments of property and equipment, goodwill and other intangible assets in all periods.
•Share-based compensation. This adjustment eliminates the compensation expense related to restricted stock units and stock options granted under the Company's employee stock plan and non-employee director plan in all periods.
•Remeasurement of deferred compensation plan liabilities. This adjustment eliminates the impact of gains and losses related to the remeasurement of liabilities under the Company's executive deferred compensation plan.
Three Months Ended
September 30,
20252024
Operating loss$(27,425)$(8,273)
Depreciation and amortization811 782 
Share-based compensation4,844 4,268 
Remeasurement of deferred compensation plan liabilities963 965 
Adjusted operating loss$(20,807)$(2,258)































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MADISON SQUARE GARDEN SPORTS CORP.
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
(Unaudited)
September 30,
2025		June 30,
2025
ASSETS
Current Assets:
Cash and cash equivalents$48,634 $144,617 
Restricted cash8,642 8,571 
Accounts receivable, net of allowance for doubtful accounts of $0 as of September 30, 2025 and June 30, 202542,618 25,855 
Net related party receivables26,684 3,582 
Prepaid expenses102,500 43,417 
Other current assets17,615 25,053 
Total current assets246,693 251,095 
Property and equipment, net of accumulated depreciation and amortization of $54,446 and $53,635 as of September 30, 2025 and June 30, 2025, respectively28,728 28,962 
Right-of-use lease assets758,422 760,456 
Indefinite-lived intangible assets103,644 103,644 
Goodwill226,523 226,523 
Investments73,515 54,720 
Deferred tax assets, net43,268 34,821 
Other assets36,609 12,753 
Total assets$1,517,402 $1,472,974 



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MADISON SQUARE GARDEN SPORTS CORP.
CONSOLIDATED BALANCE SHEETS (continued)
(In thousands, except per share data)
(Unaudited)
September 30,
2025		June 30,
2025
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable$5,201 $9,336 
Net related party payables4,394 4,807 
Debt24,000 24,000 
Accrued liabilities:
Employee-related costs56,551 98,924 
League-related accruals156,564 196,567 
Other accrued liabilities5,794 13,093 
Operating lease liabilities, current54,233 52,618 
Deferred revenue330,587 164,178 
Total current liabilities637,324 563,523 
Long-term debt267,000 267,000 
Operating lease liabilities, noncurrent829,365 841,050 
Other employee-related costs77,257 82,178 
Deferred revenue, noncurrent634 662 
Total liabilities1,811,580 1,754,413 
Commitments and contingencies
Madison Square Garden Sports Corp. Stockholders’ Equity:
Class A Common Stock, par value $0.01, 120,000 shares authorized; 19,530 and 19,488 shares outstanding as of September 30, 2025 and June 30, 2025, respectively
204 204 
Class B Common Stock, par value $0.01, 30,000 shares authorized; 4,530 shares outstanding as of September 30, 2025 and June 30, 2025
45 45 
Preferred stock, par value $0.01, 15,000 shares authorized; none outstanding as of September 30, 2025 and June 30, 2025
— — 
Additional paid-in capital4,403 15,348 
Treasury stock, at cost, 918 and 960 shares as of September 30, 2025 and June 30, 2025, respectively
(151,524)(158,543)
Accumulated deficit(146,410)(137,596)
Accumulated other comprehensive loss(896)(897)
Total equity(294,178)(281,439)
Total liabilities and equity$1,517,402 $1,472,974 

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MADISON SQUARE GARDEN SPORTS CORP.
SELECTED CASH FLOW INFORMATION
(In thousands)
(Unaudited)
Three Months Ended
September 30,
20252024
Net cash used in operating activities$(84,954)$(26,158)
Net cash used in investing activities(1,848)(1,163)
Net cash used in financing activities(9,110)(9,502)
Net decrease in cash, cash equivalents and restricted cash(95,912)(36,823)
Cash, cash equivalents and restricted cash at beginning of period153,188 94,907 
Cash, cash equivalents and restricted cash at end of period$57,276 $58,084 
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