NEW YORK--(BUSINESS WIRE)--Madison Square Garden Sports Corp. (NYSE: MSGS) announced today a brand-new partnership with Polymarket, naming the world's largest prediction market as the Official Prediction Market Partner of the New York Rangers. As the team's exclusive prediction markets partner, Polymarket will be featured throughout Rangers games at Madison Square Garden, including through LED signage, on-ice contests, concourse activations and digitally-enhanced dasherboard signage during loca. ...

Sports investing is hotter than ever, with record prices being paid for professional teams. Not so Madison Square Garden Sports, the owner of the New York Knicks and New York Rangers. ...

Madison Square Garden Sports Corp. ( MSGS ) operates sports teams. The company is primarily known for its ownership of the New York Knicks in the NBA and of the New York Rangers in the NHL. MSGI am an avid investor with a major focus on small cap companies with experience in investing in US, Canadian, and European markets. My investment philosophy to generating great returns on the stock market revolves around identifying mispriced securities by understanding the drivers behind a company's financials, and u ...

Core Insights - BARINGTON Companies Management initiated a new stake in Madison Square Garden Sports, acquiring 15,000 shares valued at approximately $3.4 million, marking its first reported holding in the sports and entertainment sector [2][3] - The new position represents 2.6% of the fund's assets under management (AUM) as of September 30, 2025, and is not among the fund's top five holdings [1][3] - Madison Square Garden Sports operates iconic franchises, including the New York Knicks and New York Rangers, and generates revenue through media, sponsorship, and live events [4][7] Company Overview - Madison Square Garden Sports has a market capitalization of $5.3 billion and reported revenue of $1.03 billion over the trailing twelve months (TTM) [3] - The company experienced a net income loss of $23.69 million TTM, with a significant revenue decline of 26% year-over-year in the first quarter of fiscal 2026 [3][9] - The stock price as of November 12, 2025, was $220.75, reflecting a 1.9% decrease over the past year, underperforming the S&P 500 by 16.5 percentage points [6][10] Investment Context - The acquisition of Madison Square Garden Sports is notable as it is one of only five new stocks added to BARINGTON's portfolio, which primarily consists of consumer-related names [5] - Despite the challenges faced by the company, such as declining revenue, the scarcity of sports franchises may lead to potential long-term value appreciation [11]

Group 1 - Madison Square Garden Sports Corp. has announced a new partnership with Pellera Technologies, designating Pellera as an Official Partner of the New York Rangers [1] - Pellera Technologies will serve as the Presenting Partner for the Rangers Centennial Exhibit, celebrating 100 years of the team's history through various artifacts and imagery [2] - The partnership aims to create meaningful experiences and unite both organizations, reflecting shared values of excellence and innovation [3] Group 2 - Pellera Technologies will gain significant brand exposure at Rangers home games, including signage on dasherboards and during broadcasts on MSG Networks [3] - The company will also be a Supporting Partner for the annual Rangers Casino Night, benefiting the Garden of Dreams Foundation, and will be featured on the 7th Avenue LED Marquee sign [4] - Madison Square Garden Sports Corp. operates professional sports teams, including the New York Knicks and New York Rangers, and has a performance center in Greenburgh, NY [5]

About Madison Square Garden Sports Corp. NEW YORK, Dec. 4, 2025 /PRNewswire/ - Madison Square Garden Sports Corp. (NYSE: MSGS) announced today a brand-new partnership with Pellera Technologies, naming one of the leading Enterprise IT Solutions Providers an Official Partner of the New York Rangers. Through the partnership, Pellera Technologies will become the Presenting Partner for the Rangers Centennial Exhibit, which is located inside Madison Square Garden and pays homage to 100 years of New York Rangers h ...

Financial Data and Key Metrics Changes - For Q1 fiscal 2026, the company reported revenues of $158.3 million, an increase of 14% compared to the prior year quarter, driven by growth in entertainment offerings and higher food, beverage, and merchandise revenues [10][11] - Adjusted operating income for the first quarter was $7.1 million, an increase of $5.2 million year-over-year, primarily due to increased revenues, partially offset by higher SG&A and direct operating expenses [11] - The company had $30 million of unrestricted cash and a total debt balance of $622 million as of September 30, 2025 [11] Business Line Data and Key Metrics Changes - The company welcomed over 900,000 guests across 140 events during the quarter, setting a new record for the number of concerts in any quarter at the Garden [4][5] - Food and beverage per caps at concerts increased, while per caps at theaters decreased compared to the prior year, attributed to the mix of events [5] - The Christmas Spectacular is set to have 215 shows this year, up from 200 last year, with advanced ticket sales pacing ahead of the previous year [7][8] Market Data and Key Metrics Changes - The company is seeing strong demand for the Christmas Spectacular, expecting to host over 1 million guests this holiday season, with advanced ticket revenues pacing up double digits compared to last year [17][18] - Concert bookings are on track to exceed last year's total, with nearly 85% of the concert booking goal achieved for the year [21][22] Company Strategy and Development Direction - The company is focused on capital allocation priorities, including maintaining a strong balance sheet, pursuing compelling opportunities, and returning capital to shareholders [28][29] - The internal sales team for marketing partnerships is largely in place, aiming to capitalize on upcoming opportunities in fiscal 2026 and beyond [9][36] - The company is exploring ways to enhance the Christmas Spectacular and improve per-show revenues through strategic pricing and partnerships [31][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory for fiscal 2026, citing positive momentum across the business and expectations for solid growth in revenue and adjusted operating income [12][13] - The company is closely monitoring the macro environment but continues to see strong consumer demand, particularly for concerts and the Christmas Spectacular [44][45] Other Important Information - The company repurchased approximately $25 million of its Class A common stock during the quarter, with $45 million remaining under the current buyback authorization [12][29] - The cash component of arena license fees will be $45 million this fiscal year, growing at 3% annually through fiscal 2055 [6] Q&A Session Summary Question: Thoughts on the Christmas Spectacular's sell-through and pricing - Management noted strong demand for the Christmas Spectacular, expecting over 1 million guests and advanced ticket revenues pacing up double digits compared to last year [17][18] Question: Updates on concert bookings for the Garden - Management confirmed robust bookings, with more concerts booked for fiscal 2026 than held last year, and expressed confidence in increasing event numbers [21][22] Question: Progress on major residency acts for fiscal 2027 - Management indicated progress in finalizing a residency for next year, which could significantly enhance concert growth at the Garden [26][27] Question: Transitioning sponsorship business back in-house - Management confirmed the internal sales team is largely in place and optimistic about capitalizing on sponsorship opportunities [35][36] Question: Updates on Penn Station redevelopment - Management provided a timeline for redevelopment, emphasizing commitment to improving the area and collaboration with stakeholders [50] Question: Bookings growth by event type - Management expects growth driven by concerts, family shows, and sports, with a focus on improving financial results in family shows and modest growth in sports events [51][53]

Core Insights - Madison Square Garden (MSGS) reported a quarterly loss of $0.37 per share, significantly better than the Zacks Consensus Estimate of a loss of $1.04, representing an earnings surprise of +64.42% [1] - The company posted revenues of $39.45 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 3.35% and down from $53.31 million year-over-year [2] - The stock has underperformed the market, losing about 0.4% since the beginning of the year compared to the S&P 500's gain of 16% [3] Financial Performance - Over the last four quarters, Madison Square Garden has surpassed consensus EPS estimates two times [2] - The current consensus EPS estimate for the upcoming quarter is $0.24 on revenues of $370.54 million, while for the current fiscal year, it is -$0.84 on revenues of $1 billion [7] Market Outlook - The company's earnings outlook will be crucial for future stock performance, with mixed trends in estimate revisions leading to a Zacks Rank 3 (Hold) [6] - The Leisure and Recreation Services industry, to which Madison Square Garden belongs, is currently in the top 35% of Zacks industries, indicating a favorable industry outlook [8]

Financial Performance - For the fiscal 2026 first quarter, the company generated revenues of $39.5 million, a decrease of $13.9 million, or 26%, compared to the prior year period[2][3][6]. - 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 compared to the prior year period[2][9]. - Revenues from league distributions decreased by $11.4 million, primarily due to a decrease in certain league distributions unrelated to national media rights fees[6]. - Local media rights fees decreased by $2.3 million compared to the prior year period, mainly due to amendments to local media rights agreements[6]. - Selling, general and administrative expenses increased by $5.2 million, or 10%, compared to the prior year period, driven by higher costs related to services agreements and employee compensation[8]. Cash Flow and Liquidity - Cash and cash equivalents decreased to $48.6 million from $144.6 million as of June 30, 2025[21]. - Net cash used in operating activities improved to $(26,158) thousand for the three months ended September 30, 2025, compared to $(84,954) thousand for the same period in 2024, indicating a significant reduction in cash outflow[25]. - Cash, cash equivalents, and restricted cash decreased to $57,276 thousand at the end of the period, down from $153,188 thousand at the beginning of the period, marking a net decrease of $95,912 thousand[25]. - Net cash used in investing activities was $(1,848) thousand for the three months ended September 30, 2025, compared to $(1,163) thousand for the same period in 2024, reflecting an increase in investment outflows[25]. - Net cash used in financing activities was $(9,110) thousand for the three months ended September 30, 2025, slightly improved from $(9,502) thousand in the same period of 2024[25]. - The total decrease in cash, cash equivalents, and restricted cash for the quarter was $95,912 thousand, compared to a decrease of $36,823 thousand in the same quarter of the previous year[25]. Balance Sheet and Liabilities - Total current liabilities increased to $637,324 thousand as of September 30, 2025, up from $563,523 thousand as of June 30, 2025, representing a 13.1% increase[23]. - Total liabilities rose to $1,811,580 thousand as of September 30, 2025, compared to $1,754,413 thousand as of June 30, 2025, reflecting a 3.3% increase[23]. - Total equity showed a decline to $(294,178) thousand as of September 30, 2025, compared to $(281,439) thousand as of June 30, 2025, indicating a worsening financial position[23]. - Deferred revenue increased significantly to $330,587 thousand as of September 30, 2025, compared to $164,178 thousand as of June 30, 2025, representing a 101.5% increase[23]. - Employee-related costs accrued decreased to $56,551 thousand as of September 30, 2025, down from $98,924 thousand as of June 30, 2025, indicating a reduction of 42.8%[23]. Business Operations and Initiatives - The combined average season ticket renewal rate for the Knicks and Rangers is approximately 94% for the 2025-26 seasons[5]. - The company announced a new multi-year marketing partnership with GAME 7, naming it the first-ever jersey patch partner of the Rangers[5]. - The suites business continues to benefit from strong renewals and new sales activity, including for recently renovated Lexus-level suites at The Garden[5]. - The Rangers began a year-long campaign to celebrate the team's 100th anniversary season, with special offerings and initiatives planned[5].

Financial Performance - Revenues decreased by $13,853, or 26%, to $39,454 for the three months ended September 30, 2025, compared to the prior year period [149]. - Operating loss increased by $19,152 to $27,425 for the three months ended September 30, 2025, primarily due to lower revenues and higher expenses [156]. - Net loss for the three months ended September 30, 2025, was $8,798, compared to a net loss of $7,542 in the prior year, reflecting a decrease of $1,256 or 17% [148]. - For the three months ended September 30, 2025, the adjusted operating loss increased by $18,549 to $20,807 compared to the prior year period, primarily due to lower revenues and higher selling, general, and administrative expenses [167]. Expenses - Direct operating expenses increased by $68, or 1%, to $8,279 for the three months ended September 30, 2025 [152]. - Selling, general and administrative expenses rose by $5,202, or 10%, to $57,789 for the three months ended September 30, 2025, driven by higher costs related to the Services Agreement and employee compensation [155]. - Interest income decreased by $286, or 33%, to $578 for the three months ended September 30, 2025, attributed to lower average interest rates [157]. - Interest expense decreased by $464, or 8%, to $5,591 for the three months ended September 30, 2025, primarily due to lower average borrowings [158]. Cash Flow and Liquidity - As of September 30, 2025, the company had $48,634 in cash and cash equivalents and $258,000 of additional available borrowing capacity under existing credit facilities [172]. - Net cash used in operating activities for the three months ended September 30, 2025 increased by $58,796 to $84,954 compared to the prior year period, primarily due to changes in working capital assets and liabilities [176]. - Net cash used in investing activities for the three months ended September 30, 2025 increased by $685 to $1,848 compared to the prior year period [177]. Revenue Sources and Projections - The annual local media rights fees are expected to be $139,237 for the year ending June 30, 2026, down from $162,939 for the fiscal year ended June 30, 2025, reflecting a reduction due to amendments to media rights agreements [150]. - The New York Knicks' annual rights fee was modified to a 28% reduction effective January 1, 2025, while the New York Rangers' fee was reduced by 18% [146]. - The company’s dependence on revenues from its NBA and NHL sports teams results in a disproportionate share of revenues earned in the second and third quarters of the fiscal year [179]. Other Financial Information - Miscellaneous income for the three months ended September 30, 2025, was $15,085, compared to a net expense of $1,126 in the prior year, indicating a significant increase in income from investments [159]. - The company's deferred revenue obligations as of September 30, 2025 were $302,021, net of billed but not yet collected deferred revenue [170]. - The company performed its most recent annual impairment test of goodwill during the first quarter of fiscal year 2026, and there was no impairment identified [183]. - The company had total borrowings of $267 million outstanding under its credit facilities as of September 30, 2025 [190]. - A hypothetical 100 basis point increase in floating interest rates would increase interest expense by approximately $2.7 million [190].