[Fiscal 2025 Fourth Quarter and Full-Year Results Overview](index=1&type=section&id=Fiscal%2025%20Fourth%20Quarter%20and%20Full-Year%20Results%20Overview) This section provides an executive summary and key financial highlights for Madison Square Garden Sports Corp.'s fiscal 2025 fourth quarter and full-year performance [Executive Summary](index=1&type=section&id=Executive%20Summary) Fiscal 2025 saw a 1% revenue increase driven by per-game growth and Knicks' playoffs, but operating income declined significantly due to team investments and reduced media rights fees - Fiscal 2025 was highlighted by **growth in per-game revenues** and the **Knicks' postseason run** to the Eastern Conference Finals[3](index=3&type=chunk) - The company expects **continued strong demand** for the Knicks and Rangers and remains confident in the value of owning two professional sports franchises[3](index=3&type=chunk) [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) Fiscal 2025 revenues grew 1% to $1,039.2 million, but operating and adjusted operating income significantly declined for both the full year and Q4 Fiscal 2025 Key Financial Highlights (in $ millions) | Metric | Three Months Ended June 30, 2025 (in $ millions) | Three Months Ended June 30, 2024 (in $ millions) | Change ($ millions) | Change (%) | Twelve Months Ended June 30, 2025 (in $ millions) | Twelve Months Ended June 30, 2024 (in $ millions) | Change ($ millions) | Change (%) | | :---------------------- | :------------------------------- | :------------------------------- | :--------- | :--------- | :-------------------------------- | :-------------------------------- | :--------- | :--------- | | 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 | $(16.8) | $56.5 | $(73.3) | NM | $38.2 | $172.2 | $(134.1) | (78)% | [Operational Highlights and Business Context](index=1&type=section&id=Operational%20Highlights%20and%20Business%20Context) Q4 fiscal 2025 featured the Knicks' Eastern Conference Finals run, while full-year results benefited from per-game revenue growth but were impacted by reduced media rights fees - The New York Knicks participated in **nine home playoff games** in the fiscal 2025 fourth quarter, reaching the Eastern Conference Finals[2](index=2&type=chunk) - Fiscal 2025 results reflect increases in **average regular season per-game revenues**, including tickets, sponsorship, and suites[2](index=2&type=chunk) - Results were impacted by **reductions in local media rights fees** due to amendments to agreements with MSG Networks Inc[2](index=2&type=chunk) [Detailed Financial Results Analysis](index=2&type=section&id=Detailed%20Financial%20Results%20Analysis) This section provides a detailed analysis of the company's financial performance for both the fourth quarter and the full fiscal year 2025, covering revenues, expenses, and operating income [Fourth Quarter Financial Performance](index=2&type=section&id=Fourth%20Quarter%20Financial%20Performance) The fourth quarter of fiscal 2025 saw a 10% revenue decrease, primarily due to fewer playoff games and lower league distributions, leading to a substantial decline in operating income [Revenue Analysis (Q4)](index=2&type=section&id=Revenue%20Analysis%20(Q4)) Q4 revenues decreased by **$23.3 million (10%)** to **$204.0 million**, primarily due to fewer playoff games, reduced league distributions, and lower local media rights fees - Q4 revenues decreased by **$23.3 million (10%)** to **$204.0 million**[6](index=6&type=chunk) - Playoff-related revenues decreased by **$12.9 million**, primarily due to the Rangers not qualifying for playoffs, partially offset by higher per-game Knicks playoff revenue and two additional Knicks home playoff games[7](index=7&type=chunk) - Revenues from league distributions decreased by **$6.8 million**, mainly due to the absence of a non-recurring NHL territorial fee of approximately **$7 million** in the prior year quarter[8](index=8&type=chunk) - Local media rights fees decreased by **$1.1 million** due to reductions for the 2024-25 season resulting from amendments to agreements with MSG Networks[10](index=10&type=chunk) [Expense Analysis (Q4)](index=2&type=section&id=Expense%20Analysis%20(Q4)) Direct operating expenses significantly increased by **$47.1 million (44%)** to **$154.8 million**, primarily due to higher team personnel transaction provisions and league revenue sharing - Direct operating expenses increased by **$47.1 million (44%)** to **$154.8 million**[11](index=11&type=chunk) - The increase in direct operating expenses was primarily driven by higher net provisions for certain team personnel transactions (**$42.8 million**) and higher net provisions for league revenue sharing expense and NBA luxury tax (**$9.8 million**)[11](index=11&type=chunk) - Selling, general and administrative expenses increased by **$4.5 million (7%)** to **$70.9 million**, mainly due to higher professional fees (**$3.7 million**) and playoff-related expenses (**$1.5 million**)[12](index=12&type=chunk) [Operating and Adjusted Operating Income (Loss) Analysis (Q4)](index=2&type=section&id=Operating%20and%20Adjusted%20Operating%20Income%20(Loss)%20Analysis%20(Q4)) Q4 operating income decreased by **$74.9 million** to a **$22.6 million loss**, and adjusted operating income decreased by **$73.3 million** to a **$16.8 million loss**, driven by increased expenses - Operating income decreased by **$74.9 million** to an operating loss of **$22.6 million**[13](index=13&type=chunk) - Adjusted operating income decreased by **$73.3 million** to an adjusted operating loss of **$16.8 million**[13](index=13&type=chunk) - The decreases were primarily due to the **increase in direct operating expenses** and, to a lesser extent, the decrease in revenues[13](index=13&type=chunk) [Full-Year Financial Performance](index=1&type=section&id=Full-Year%20Financial%20Performance) For the full fiscal year 2025, revenues increased slightly by 1% to $1,039.2 million, but operating and adjusted operating income experienced substantial declines [Revenue Analysis (Full-Year)](index=1&type=section&id=Revenue%20Analysis%20(Full-Year)) Full-year fiscal 2025 revenues increased by **$12.1 million (1%)** to **$1,039.2 million** compared to the prior year - For fiscal 2025, the Company reported revenues of **$1,039.2 million**, an increase of **$12.1 million (1%)**, as compared to the prior year[3](index=3&type=chunk) [Operating and Adjusted Operating Income (Loss) Analysis (Full-Year)](index=1&type=section&id=Operating%20and%20Adjusted%20Operating%20Income%20(Loss)%20Analysis%20(Full-Year)) Full-year operating income decreased by **$131.2 million (90%)** to **$14.8 million**, and adjusted operating income decreased by **$134.1 million (78%)** to **$38.2 million** - For fiscal 2025, operating income decreased by **$131.2 million** to **$14.8 million (90% decrease)**[3](index=3&type=chunk) - Adjusted operating income decreased by **$134.1 million** to **$38.2 million (78% decrease)**[3](index=3&type=chunk) [Strategic and Operational Developments](index=2&type=section&id=Strategic%20and%20Operational%20Developments) This section details key strategic and operational changes, including amendments to local media rights agreements and an overview of Madison Square Garden Sports Corp [Local Media Rights Agreements Amendments](index=2&type=section&id=Local%20Media%20Rights%20Agreements%20Amendments) Knicks and Rangers amended media rights agreements with MSG Networks, reducing annual fees by **28%** and **18%** respectively, eliminating escalators, and extending contracts to 2028-29 - Knicks and Rangers amended media rights agreements with MSG Networks on **June 27, 2025**[14](index=14&type=chunk) - Annual rights fees were reduced by **28%** for the Knicks and **18%** for the Rangers, effective **January 1, 2025**[14](index=14&type=chunk) - The amendments eliminated annual rights fee escalators and changed contract expiration dates to the end of the **2028-29 seasons**[14](index=14&type=chunk) - MSG Networks issued penny warrants to the Company exercisable for **19.9%** of its equity interests[14](index=14&type=chunk) [About Madison Square Garden Sports Corp.](index=2&type=section&id=About%20Madison%20Square%20Garden%20Sports%20Corp.) MSG Sports is a professional sports company owning the New York Knicks (NBA) and New York Rangers (NHL), along with their development league teams and the MSG Training Center - MSG Sports owns the **New York Knicks (NBA)** and **New York Rangers (NHL)**[15](index=15&type=chunk) - The company also owns development league teams: the **Westchester Knicks (NBAGL)** and the **Hartford Wolf Pack (AHL)**[15](index=15&type=chunk) - MSG Sports operates the **MSG Training Center** in Greenburgh, NY[15](index=15&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) This section defines adjusted operating income (loss) as a non-GAAP measure, explaining its purpose and providing a reconciliation to GAAP operating income (loss) [Definition and Purpose](index=3&type=section&id=Definition%20and%20Purpose) Adjusted operating income (loss) is a non-GAAP measure excluding non-cash and non-operating items, used internally and by investors to evaluate core operating performance - Adjusted operating income (loss) is a non-GAAP measure that excludes depreciation, amortization, impairments, share-based compensation, restructuring charges, gains/losses on business dispositions, purchase accounting adjustments, and remeasurement of Executive Deferred Compensation Plan liabilities[16](index=16&type=chunk) - The exclusion of share-based compensation allows investors to better track business performance without regard to non-cash settlement obligations[16](index=16&type=chunk) - Adjusted operating income (loss) is considered an appropriate measure for evaluating operating performance and is used internally as a key indicator[17](index=17&type=chunk) [Reconciliation to GAAP Measures](index=5&type=section&id=Reconciliation%20to%20GAAP%20Measures) This section provides a reconciliation of operating (loss) income to adjusted operating (loss) income, detailing adjustments for non-cash and non-operating items for both Q4 and full-year fiscal 2025 Adjustments to Reconcile Operating (Loss) Income to Adjusted Operating (Loss) Income (in thousands) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Twelve Months Ended June 30, 2025 (in thousands) | Twelve Months Ended June 30, 2024 (in thousands) | | :------------------------------------------ | :------------------------------- | :------------------------------- | :-------------------------------- | :-------------------------------- | | 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** | **$172,242** | - Adjustments include eliminating depreciation, amortization, impairments, share-based compensation expense, and the impact of gains and losses related to the remeasurement of liabilities under the Company's executive deferred compensation plan[23](index=23&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's consolidated financial statements, including statements of operations, balance sheets, and selected cash flow information for fiscal 2025 [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Fiscal 2025 saw a full-year net loss of **$(22,438) thousand**, a significant decline from prior year net income, driven by increased expenses despite slight revenue growth Consolidated Statements of Operations (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Twelve Months Ended June 30, 2025 (in thousands) | Twelve Months Ended June 30, 2024 (in thousands) | | :-------------------------------------------------------------------------------- | :------------------------------- | :------------------------------- | :-------------------------------- | :-------------------------------- | | 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 | | Net (loss) income | $(1,780) | $25,491 | $(22,438) | $58,771 | | Basic (loss) earnings per common share | $(0.07) | $1.06 | $(0.93) | $2.45 | | Diluted (loss) earnings per common share | $(0.07) | $1.06 | $(0.93) | $2.44 | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to **$1,472,974 thousand**, and total liabilities increased to **$1,754,413 thousand**, leading to a larger accumulated deficit and negative total equity Consolidated Balance Sheets (in thousands) | Asset/Liability/Equity | June 30, 2025 (in thousands) | June 30, 2024 (in thousands) | | :-------------------------------- | :------------ | :------------ | | **ASSETS** | | | | Cash and cash equivalents | $144,617 | $89,136 | | Total current assets | $251,095 | $216,942 | | Right-of-use lease assets | $760,456 | $694,566 | | Deferred tax assets, net | $34,821 | — | | Total assets | $1,472,974 | $1,346,292 | | **LIABILITIES AND EQUITY** | | | | Total current liabilities | $563,523 | $521,982 | | League-related accruals | $196,567 | $120,876 | | Operating lease liabilities, noncurrent | $841,050 | $749,952 | | Total liabilities | $1,754,413 | $1,612,602 | | Total equity | $(281,439) | $(266,310) | [Selected Cash Flow Information](index=9&type=section&id=Selected%20Cash%20Flow%20Information) For fiscal 2025, net cash from operating activities remained stable at **$91,607 thousand**, with a net increase in cash, cash equivalents, and restricted cash of **$58,281 thousand** Selected Cash Flow Information (in thousands) | Metric | Twelve Months Ended June 30, 2025 (in thousands) | Twelve Months Ended June 30, 2024 (in thousands) | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | | 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 end of period | $153,188 | $94,907 | [General Information](index=3&type=section&id=General%20Information) This section provides important general information, including forward-looking statements and contact details for investor relations and conference call information [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section highlights that the press release contains forward-looking statements, subject to risks and uncertainties, and actual results may differ materially from projections - This press release may contain forward-looking statements that are not guarantees of future performance or results and involve risks and uncertainties[18](index=18&type=chunk) - Actual results, developments, and events may differ materially due to various factors, including financial community perceptions and factors described in SEC filings[18](index=18&type=chunk) - The Company disclaims any obligation to update any forward-looking statements[18](index=18&type=chunk) [Contacts and Conference Call Details](index=3&type=section&id=Contacts%20and%20Conference%20Call%20Details) This section provides contact information for Investor Relations and Financial Communications, along with details for the conference call webcast and replay - Investor Relations and Financial Communications contacts are Ari Danes, Grace Kaminer, and Justin Blaber[19](index=19&type=chunk) - A conference call webcast was held live on **August 12, 2025, at 10:00 a.m. ET** at investor.msgsports.com[19](index=19&type=chunk) - A conference call replay is available until **August 19, 2025**, using Conference ID Number **6996895**[19](index=19&type=chunk)

Company Overview - Madison Square Garden (MSGS) is expected to report a year-over-year decline in earnings, with a projected loss of $0.37 per share, reflecting a change of -134.9% compared to the previous year [3] - Revenues for the upcoming quarter are anticipated to be $149.62 million, down 34.2% from the same quarter last year [3] Earnings Expectations - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4] - The Most Accurate Estimate for Madison Square Garden is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -74.54%, suggesting a bearish sentiment among analysts [12] Historical Performance - In the last reported quarter, Madison Square Garden was expected to post earnings of $1.48 per share but instead reported a loss of -$0.59, leading to a surprise of -139.86% [13] - Over the last four quarters, the company has beaten consensus EPS estimates only two times [14] Industry Context - In comparison, United Parks & Resorts (PRKS), another player in the Leisure and Recreation Services industry, is expected to post earnings of $1.79 per share, indicating a year-over-year change of +19.3% [18] - United Parks & Resorts' revenue is projected to be $500.45 million, up 0.6% from the previous year, but it also has a negative Earnings ESP of -3.08% and a Zacks Rank of 5, indicating challenges in beating consensus estimates [19][20]

Industry Overview - The Leisure and Recreation Services industry is experiencing growth due to optimized business processes, consistent partnerships, and digital initiatives [1] - Strong demand for concerts, easing trade tensions, and robust bookings for cruise operators are supporting the industry [1][2] Cruise Industry - The cruise industry is benefiting from strong demand and increasing booking volumes, with solid pricing and onboard spending contributing positively [3] - Carnival Corporation & plc (CCL) is raising its full-year 2025 guidance due to sustained demand strength and operational efficiency [5][6] - CCL has an expected revenue growth rate of 5.4% and earnings growth rate of 38% for the current year [6] Theme Park Industry - The theme park industry is also seeing robust demand, with operators benefiting from improved visitation [3] Company Highlights - **Carnival Corporation & plc (CCL)**: Zacks Rank 2, benefiting from increased booking volumes and onboard revenues, with a P/E ratio of 15.1X compared to the industry average of 21.7X [5][7] - **Manchester United plc (MANU)**: Zacks Rank 1, expected revenue growth of 9.6% and earnings growth of 56.6% for the current year, with a potential upside of 50.1% from current brokerage targets [10][12][13] - **The Marcus Corporation (MCS)**: Zacks Rank 2, engaged in lodging and entertainment, with expected revenue growth of 5.2% and earnings growth of over 100% for the current year [14][15] - **Madison Square Garden Sports Corp. (MSGS)**: Zacks Rank 2, expected revenue growth of 6.5% and earnings growth of over 100% for the current year, with a potential price target increase of 24.8% [18][20] - **Pursuit Attractions and Hospitality Inc. (PRSU)**: Zacks Rank 1, expected revenue growth of 6.2% and earnings growth of 11% for the next year, with a potential price target increase of 44.4% [22][23][24]

Core Insights - Madison Square Garden (MSGS) reported a revenue of $424.2 million for the quarter ended March 2025, reflecting a decrease of 1.3% year-over-year [1] - The company's earnings per share (EPS) was -$0.59, a significant decline from $1.57 in the same quarter last year, indicating a surprise of -139.86% compared to the consensus EPS estimate of $1.48 [1] Revenue Breakdown - Event-related revenues amounted to $176.76 million, surpassing the average estimate of $174.04 million from three analysts [4] - League distributions and other revenues were reported at $10.20 million, falling short of the estimated $12.33 million [4] - Sponsorship, signage, and suite licenses generated $113.70 million, exceeding the average estimate of $105.05 million [4] - Media rights revenues were $123.54 million, below the expected $136.07 million [4] Stock Performance - Over the past month, Madison Square Garden's shares returned -0.3%, slightly better than the Zacks S&P 500 composite's -0.5% change [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Revenue Performance - Revenues decreased by $5,757, or 1%, to $424,197 for the three months ended March 31, 2025, while increasing by $35,365, or 4%, to $835,263 for the nine months ended March 31, 2025 compared to the prior year periods [158]. - The company anticipates a continued impact on revenues from local media rights fees due to the proposed amendments to the media rights agreements with MSG Networks [159]. - Revenues from league distributions rose primarily due to increased national media rights fees, contributing to the overall revenue growth for the nine months ended March 31, 2025 [164]. Operating Income and Expenses - Operating income for the three months ended March 31, 2025 was $32,342, a decrease of $47,400 or 59%, and for the nine months ended March 31, 2025 was $37,384, a decrease of $56,351 or 60% compared to the prior year periods [158]. - Direct operating expenses increased by $43,309, or 16%, to $316,335 for the three months ended March 31, 2025, and by $91,528, or 18%, to $600,299 for the nine months ended March 31, 2025 compared to the prior year periods [158]. - Selling, general and administrative expenses decreased by $1,701, or 2%, to $74,697 for the three months ended March 31, 2025, while increasing by $164 to $195,184 for the nine months ended March 31, 2025 [174][175]. Net Income and Loss - The company recorded a net loss of $14,227 for the three months ended March 31, 2025, compared to a net income of $37,877 in the prior year period, representing a decrease of $52,104 [158]. - The company reported a net loss of $20,658 for the nine months ended March 31, 2025, compared to a net income of $33,280 for the same period in 2024 [197]. Cash Flow and Financial Position - As of March 31, 2025, the company had $96,536 in cash and cash equivalents and $258,000 of additional available borrowing capacity under existing credit facilities [194]. - Net cash provided by operating activities for the nine months ended March 31, 2025, improved by $58,104 to $41,884 compared to the prior year period, driven by changes in working capital assets and liabilities [198]. - The company experienced a net increase in cash, cash equivalents, and restricted cash of $10,129 for the nine months ended March 31, 2025 [197]. Interest Income and Expense - Interest income increased by $574, or NM, to $1,051 for the three months ended March 31, 2025, and by $1,056, or 68%, to $2,605 for the nine months ended March 31, 2025 compared to the prior year periods [158]. - Interest expense decreased by $1,901, or 27%, to $5,020 for the three months ended March 31, 2025, and by $4,607, or 22%, to $16,662 for the nine months ended March 31, 2025 [178][179]. Impairment and Intangible Assets - The company performed its most recent annual impairment test of goodwill during the first quarter of fiscal year 2025, concluding there was no impairment [206]. - Identifiable indefinite-lived intangible assets amounted to $103,644 as of March 31, 2025, with no impairments identified during the latest annual impairment test [207]. Media Rights and Sponsorship - The New York Knicks' annual rights fee was reduced by 28%, while the New York Rangers' annual rights fee was reduced by 18% as part of the proposed amendments to media rights agreements [156]. - Sponsorship and signage revenues increased by $8,898 for the three months ended March 31, 2025, and by $11,602 for the nine months ended March 31, 2025 compared to the prior year periods [159]. - Suite revenues increased due to higher net sales of suite products, with a notable increase for the nine months ended March 31, 2025, attributed to one additional home game played [163].

Company Performance - Madison Square Garden (MSGS) reported a quarterly loss of $0.59 per share, significantly missing the Zacks Consensus Estimate of $1.48, and down from earnings of $1.57 per share a year ago, representing an earnings surprise of -139.86% [1] - The company posted revenues of $424.2 million for the quarter ended March 2025, which was 0.77% below the Zacks Consensus Estimate and a decrease from $429.95 million in the same quarter last year [2] - Over the last four quarters, Madison Square Garden has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Outlook - Madison Square Garden shares have declined approximately 14.6% since the beginning of the year, compared to a 4.7% decline in the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is -$0.97 on revenues of $122.84 million, and for the current fiscal year, it is $0.32 on revenues of $961.41 million [7] - The estimate revisions trend for Madison Square Garden is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Leisure and Recreation Services industry, to which Madison Square Garden belongs, is currently ranked in the bottom 30% of over 250 Zacks industries, suggesting a challenging environment [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment and stock performance [5]

Core Viewpoint - Madison Square Garden Sports Corp. reported a decrease in revenues and operating income for the fiscal third quarter ended March 31, 2025, primarily due to lower local media rights fees and fewer games played compared to the previous year [4][7][15]. Financial Performance - For the fiscal 2025 third quarter, the company generated revenues of $424.2 million, a decrease of $5.8 million, or 1%, compared to the prior year period [4][7]. - Operating income was reported at $32.3 million, a decrease of $47.4 million, or 59%, while adjusted operating income was $36.9 million, down $51.8 million, or 58% [4][15]. - The nine-month period ended March 31, 2025, saw revenues increase to $835.3 million, up $35.4 million, or 4%, compared to the same period in the previous year [5]. Revenue Breakdown - Local media rights fees decreased by $18.6 million due to proposed amendments to the Knicks' and Rangers' local media rights agreements [8]. - Food, beverage, and merchandise sales fell by $2.5 million, attributed to lower average per-game revenue and fewer games played [9]. - Sponsorship and signage revenues increased by $8.9 million, driven by higher net sales of existing inventory [10]. - Suite revenues rose by $3.4 million, and revenues from league distributions increased by $2.4 million due to higher national media rights fees [11]. Expense Analysis - Direct operating expenses increased by $43.3 million, or 16%, primarily due to higher league revenue sharing expenses and team personnel compensation [13]. - Selling, general, and administrative expenses decreased by $1.7 million, or 2%, mainly due to lower employee compensation [14]. Other Developments - The company launched its 2025-26 Knicks and Rangers season ticket renewal initiative, which has seen strong demand [3]. - A Transaction Support Agreement was entered into to support proposed transactions aimed at reducing MSG Networks' debt, which includes amendments to local media rights agreements [16].

Group 1 - Madison Square Garden Sports Corp. announced Tres Agaves as an official sponsor of the New York Rangers [1] - Tres Agaves will have dedicated ribbon LED signage and be featured on GardenVision during Rangers home games, enhancing brand visibility among fans [2] - The sponsorship includes virtual advertisements during MSG Networks broadcasts, ensuring high visibility for Tres Agaves among viewers at home [3] Group 2 - The partnership aims to integrate Tres Agaves into the in-arena experience, enhancing the connection with fans both in-arena and at home [4] - Tres Agaves is recognized as the 1 selling organic tequila in the US, aligning well with game day experiences [4] - Both brands emphasize community and collaboration, sharing a motto that highlights the importance of collective success [4] Group 3 - Madison Square Garden Sports Corp. operates professional sports teams including the New York Knicks and New York Rangers, along with development league teams [5] - MSG Sports also manages a performance center, the MSG Training Center, located in Greenburgh, NY [5] - Tres Agaves offers premium, USDA-certified organic tequila and mixers, crafted in Amatitán, Mexico, focusing on authenticity and quality [6]

Core Insights - Madison Square Garden Sports Corp. (MSGS) experienced a 3.6% decline in shares following mixed second-quarter fiscal 2025 results, with earnings per share missing estimates while revenues exceeded expectations [1][3] Earnings & Revenue Discussion - MSGS reported quarterly earnings of 5 cents per share, missing the Zacks Consensus Estimate of 25 cents by 80%, and reflecting a 91.5% decline from the previous year's earnings of 59 cents per share [3] - Revenues for the quarter reached $357.8 million, surpassing the consensus mark of $350.6 million by 2.1%, and increased by 9% year-over-year, driven by higher ticket sales, suite revenues, sponsorship, signage revenues, and growth in food, beverage, and merchandise sales [4] Operating Highlights - Adjusted operating income was $20.2 million, down 45% from $64.4 million in the year-ago quarter, with adjusted operating margin contracting by 570 basis points to 5.6% year-over-year [5] - Direct operating expenses rose by 19% to $275.8 million compared to the previous year, attributed to higher team personnel compensation and increased provisions for league revenue sharing [6] Balance Sheet - As of December 31, 2024, MSGS had cash, cash equivalents, and restricted cash totaling $115.9 million, an increase from $94.9 million at the end of fiscal 2024 [7] - Long-term debt remained stable at $275 million, consistent with the previous fiscal year-end [7] - In the first half of fiscal 2025, net cash provided by operating activities was $35.6 million, compared to net cash used of $20.3 million in the same period last year [7]

Core Insights - Madison Square Garden (MSGS) reported revenue of $357.76 million for the quarter ended December 2024, marking a year-over-year increase of 9.4% [1] - The earnings per share (EPS) for the same period was $0.05, a significant decrease from $0.59 a year ago, resulting in an EPS surprise of -80.00% compared to the consensus estimate of $0.25 [1] Revenue Breakdown - Event-related revenues totaled $139.37 million, exceeding the average estimate of $134.41 million by analysts, reflecting a year-over-year increase of 13.8% [4] - League distributions and other revenues were reported at $12.07 million, slightly below the average estimate of $12.98 million, representing a year-over-year decline of 4.1% [4] - Sponsorship, signage, and suite licenses generated $79.41 million, surpassing the average estimate of $75.54 million, with a year-over-year increase of 14.6% [4] - Media rights revenues amounted to $126.90 million, slightly below the average estimate of $127.39 million, showing a year-over-year growth of 3.6% [4] Stock Performance - Over the past month, Madison Square Garden shares have returned -0.4%, while the Zacks S&P 500 composite increased by 1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]