Madison Square Garden Sports Corp. (NYSE:MSGS) Q1 2022 Earnings Conference Call November 10, 2021 10:00 AM ET Company Participants Ari Danes - Investor Relations Andy Lustgarten - President & Chief Executive Officer Victoria Mink - Executive Vice President, Chief Financial Officer & Treasurer Conference Call Participants David Karnovsky - JPMorgan Ben Swinburne - Morgan Stanley Brandon Ross - LightShed Partners John Janedis - Wolfe Research Operator Good morning. Thank you for standing by, and welcome to th ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ________________________ (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-36900 MADISON SQUARE GARDEN SPORTS CORP. (Exact name of registrant as specified in ...

PART I [Business](index=3&type=section&id=Item%201.%20Business) MSG Sports is a professional sports company owning iconic franchises whose revenue from tickets, media, and sponsorships was impacted by COVID-19 - The company owns a portfolio of professional sports teams, including the **New York Knicks (NBA)**, **New York Rangers (NHL)**, Hartford Wolf Pack (AHL), Westchester Knicks (NBAGL), and two esports franchises, Knicks Gaming and Counter Logic Gaming (CLG)[11](index=11&type=chunk) - A key strategy is to maximize the value of live sports content through long-term local and national media rights agreements[15](index=15&type=chunk) - The company has long-term (35-year) Arena License Agreements with MSG Entertainment for the Knicks and Rangers to play their home games at Madison Square Garden, which includes revenue sharing[14](index=14&type=chunk)[23](index=23&type=chunk) - The **COVID-19 pandemic materially impacted revenues in FY2021** due to shortened seasons, government-mandated limits on fan attendance, and reduced ticket sales, suite licenses, sponsorships, and merchandise sales[27](index=27&type=chunk)[60](index=60&type=chunk) - As of June 30, 2021, the company had approximately **415 full-time and 242 part-time employees**, with approximately 16% of the workforce represented by unions[50](index=50&type=chunk)[54](index=54&type=chunk) [Risk Factors](index=10&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from the COVID-19 pandemic, market competition, team performance, labor disputes, and substantial indebtedness [Sports Business Risks](index=10&type=section&id=Sports%20Business%20Risks) - The **COVID-19 pandemic has materially impacted operations** and operating results, leading to shortened seasons, limited fan attendance, and reduced revenues, with a resurgence posing future risks[59](index=59&type=chunk)[60](index=60&type=chunk)[61](index=61&type=chunk) - The business faces **intense competition** for attendance, viewership, and advertising from numerous other professional and collegiate sports teams in the New York City metropolitan area[67](index=67&type=chunk)[68](index=68&type=chunk) - Financial results are substantially dependent on the **continued popularity and competitive success of the Knicks and Rangers**, which drives ticket sales, sponsorships, and media rights value[72](index=72&type=chunk) - Actions by the NBA and NHL, such as changes to media rights, revenue sharing, and league expansion, can have a **material negative effect** on the company's business[75](index=75&type=chunk)[78](index=78&type=chunk)[81](index=81&type=chunk) [Economic and Business Relationship Risks](index=14&type=section&id=Economic%20and%20Business%20Relationship%20Risks) - Subsidiaries have incurred **substantial indebtedness**, with **$220 million** outstanding under the Knicks facility and **$135 million** under the Rangers facility as of June 30, 2021[86](index=86&type=chunk) - The company has a history of operating losses, reporting losses of approximately **$78 million in FY2021**, **$94 million in FY2020**, and **$58 million in FY2019**[93](index=93&type=chunk) - The company does not own Madison Square Garden and relies on Arena License Agreements with MSG Entertainment, which expire in 2055[97](index=97&type=chunk) - The business is dependent on unionized labor, particularly NBA and NHL players, and **future labor disputes could have a material negative effect**[108](index=108&type=chunk) - The company relies on MSG Entertainment for various services under a transition services agreement, and a breach or termination could cause operational difficulties[109](index=109&type=chunk)[110](index=110&type=chunk)[112](index=112&type=chunk) [Operational Risks](index=18&type=section&id=Operational%20Risks) - The business is exposed to risks from terrorist activity, pandemics, or other events that discourage public assembly at The Garden, which could reduce attendance and revenue[114](index=114&type=chunk) - The company faces continually evolving **cybersecurity risks**, including data breaches and ransomware attacks, which could lead to business disruption and financial losses[121](index=121&type=chunk)[123](index=123&type=chunk) [Corporate Governance Risks](index=20&type=section&id=Corporate%20Governance%20Risks) - The company is controlled by the **Dolan Family Group**, which held approximately **70.7% of the total voting power** as of July 30, 2021, giving them control over stockholder decisions[138](index=138&type=chunk)[140](index=140&type=chunk) - The company has elected to be a **"controlled company"** under NYSE rules, allowing it to opt out of certain corporate governance requirements[142](index=142&type=chunk) - Overlapping key officers and directors with MSG Entertainment and/or AMC Networks may lead to **conflicts of interest**[147](index=147&type=chunk)[148](index=148&type=chunk) [Properties](index=23&type=section&id=Item%202.%20Properties) The company licenses Madison Square Garden, owns a training center in NY, leases a performance center in CA, and subleases its main offices - The company licenses Madison Square Garden from MSG Entertainment for its Knicks and Rangers home games[150](index=150&type=chunk) - Owns the Madison Square Garden Training Center in Greenburgh, NY (approx 114,000 sq ft) and leases the CLG Performance Center in Los Angeles, CA (approx 8,000 sq ft)[150](index=150&type=chunk) - Subleases approximately 47,000 sq ft of office space for its administrative and executive offices from MSG Entertainment at Two Pennsylvania Plaza, New York City[151](index=151&type=chunk) [Legal Proceedings](index=24&type=section&id=Item%203.%20Legal%20Proceedings) The company is a defendant in various lawsuits but management does not believe their resolution will have a material adverse effect - The company is a defendant in various lawsuits, but management does not expect the outcomes to have a material adverse effect[153](index=153&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=25&type=section&id=Item%205.%20Market%20for%20the%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's Class A stock trades on the NYSE, no dividends were paid in FY2021, and $260 million remains under its share repurchase program - Class A Common Stock trades on the NYSE under the symbol **"MSGS"**; there is no public market for the Class B Common Stock[157](index=157&type=chunk)[160](index=160&type=chunk) - The company **did not pay any cash dividends** during fiscal year 2021 and does not have current plans to pay dividends in the foreseeable future[162](index=162&type=chunk) - As of June 30, 2021, approximately **$260 million remained available** under the company's $525 million stock repurchase authorization, though no shares were repurchased during FY2021[163](index=163&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) COVID-19 heavily impacted FY2021 performance, causing a 31% revenue decrease to $415.7 million and an operating loss of $78.4 million [Results of Operations](index=35&type=section&id=Results%20of%20Operations) Consolidated Results of Operations (FY2021 vs. FY2020) | | Years Ended June 30, | | Change | | | :--- | :--- | :--- | :--- | :--- | | | **2021** | **2020** | **Amount** | **Percentage** | | **Revenues** | $415,721 | $603,319 | $(187,598) | (31)% | | **Direct operating expenses** | 281,890 | 359,970 | (78,080) | (22)% | | **Selling, general and administrative expenses** | 206,700 | 319,675 | (112,975) | (35)% | | **Operating loss** | (78,443) | (93,866) | 15,423 | 16% | | **Loss from continuing operations** | (15,897) | (118,641) | 102,744 | 87% | | **Net loss attributable to stockholders** | (13,954) | (182,388) | 168,434 | 92% | - **Revenues decreased by 31%** primarily due to lower pre/regular season ticket-related revenues (-$192.4M), suite license fee revenues (-$67.4M), and food, beverage, and merchandise sales (-$35.6M), all driven by COVID-19 restrictions[235](index=235&type=chunk) - The revenue decline was partially offset by a **$98.3 million increase in league distributions**, mainly from higher national media rights fees and a $21.0 million NHL expansion fee[235](index=235&type=chunk)[239](index=239&type=chunk) - **Direct operating expenses decreased by 22%** due to lower net provisions for league revenue sharing (-$44.2M), reduced team operating expenses, and lower food/beverage costs[242](index=242&type=chunk) - **Selling, general and administrative (SG&A) expenses decreased by 35%**, primarily due to lower corporate overhead costs following the MSGE Distribution[251](index=251&type=chunk) Reconciliation of Operating Loss to Adjusted Operating Loss | | Years Ended June 30, | | Change | | | :--- | :--- | :--- | :--- | :--- | | | **2021** | **2020** | **Amount** | **Percentage** | | **Operating loss** | $(78,443) | $(93,866) | $15,423 | 16% | | Deferred rent | 28,305 | — | | | | Depreciation and amortization | 5,574 | 17,540 | | | | Share-based compensation | 30,437 | 48,693 | | | | Restructuring charges | 1,597 | — | | | | **Adjusted operating loss** | **$(12,530)** | **$(27,466)** | **$14,936** | **54%** | [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) - Primary sources of liquidity are cash on hand (**$64.9M** as of June 30, 2021), cash flow from operations, and available borrowing capacity[266](index=266&type=chunk)[268](index=268&type=chunk) - As of June 30, 2021, the company had **$245 million of additional available borrowing capacity** and believes it has sufficient liquidity to fund operations for the next 12 months[270](index=270&type=chunk) Outstanding Debt as of June 30, 2021 | Facility | Outstanding Balance (in millions) | | :--- | :--- | | 2020 Knicks Revolving Credit Facility | $220 | | 2020 Rangers Revolving Credit Facility | $135 | | 2021 Rangers NHL Advance | $30 | | 2020 Knicks Holdings Revolving Credit Facility | $0 | Cash Flow Summary (FY2021 vs. FY2020) | | Years Ended June 30, (in thousands) | | | :--- | :--- | :--- | | | **2021** | **2020** | | Net cash provided by (used in) operating activities | $(35,326) | $3,568 | | Net cash used in investing activities | (466) | (514,863) | | Net cash provided by (used in) financing activities | 17,155 | (520,588) | | Net decrease in cash, cash equivalents and restricted cash | $(18,637) | $(1,027,228) | [Critical Accounting Policies](index=45&type=section&id=Critical%20Accounting%20Policies) - For contracts with multiple performance obligations, the transaction price is allocated based on the **estimated relative standalone selling price** of each obligation, which involves significant management judgment[304](index=304&type=chunk)[305](index=305&type=chunk) - Goodwill and indefinite-lived intangible assets are tested for impairment annually as of August 31; the FY2021 assessment concluded **no impairment was likely**[308](index=308&type=chunk)[311](index=311&type=chunk)[312](index=312&type=chunk) - The company accounts for its use of Madison Square Garden under the Arena License Agreements as operating leases, with liabilities measured at the present value of future lease payments[317](index=317&type=chunk)[328](index=328&type=chunk)[330](index=330&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=48&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate fluctuation on its variable-rate debt, with a 1% rate increase adding $3.6 million in annual expense - The company has potential **interest rate risk** from outstanding borrowings under its credit facilities, which bear interest at floating rates[331](index=331&type=chunk)[332](index=332&type=chunk) - As of June 30, 2021, with $355 million in borrowings outstanding, a hypothetical **100 basis point increase** in interest rates would increase annual interest expense by approximately **$3.6 million**[332](index=332&type=chunk) [Controls and Procedures](index=49&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls, procedures, and internal control over financial reporting were effective as of June 30, 2021 - Management, including the CEO and CFO, concluded that as of June 30, 2021, the company's **disclosure controls and procedures were effective**[337](index=337&type=chunk) - Management concluded that the company's **internal control over financial reporting was effective** as of June 30, 2021, a conclusion audited and confirmed by Deloitte & Touche LLP[340](index=340&type=chunk)[341](index=341&type=chunk) PART III [Directors, Executive Compensation, Security Ownership, and Principal Accountant Fees](index=50&type=section&id=Item%2010%2C%2011%2C%2012%2C%2013%2C%2014) Required information on directors, compensation, ownership, and accountant fees is incorporated by reference from the 2021 proxy statement - Information regarding Directors, Executive Officers, Corporate Governance, Executive Compensation, Security Ownership, and Principal Accountant Fees is **incorporated by reference** from the proxy statement for the 2021 annual meeting of shareholders[346](index=346&type=chunk)[347](index=347&type=chunk)[348](index=348&type=chunk)[349](index=349&type=chunk)[350](index=350&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=51&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and exhibits filed as part of the Form 10-K report - This section lists all documents filed as part of the report, including financial statements, schedules, and exhibits such as credit agreements, employment contracts, and related-party agreements[353](index=353&type=chunk) Financial Statements and Notes [Consolidated Financial Statements](index=63&type=section&id=Consolidated%20Financial%20Statements) For FY2021, the company reported total assets of $1.31 billion, a net loss of $14.0 million, and a stockholders' deficit of $204.3 million Key Balance Sheet Data (as of June 30, 2021) | | Amount (in thousands) | | :--- | :--- | | **Total Assets** | **$1,309,939** | | Cash and cash equivalents | $64,902 | | Right-of-use lease assets | $703,521 | | Goodwill | $226,955 | | **Total Liabilities** | **$1,511,805** | | Long-term debt | $355,000 | | Operating lease liabilities, noncurrent | $691,152 | | **Total Madison Square Garden Sports Corp. stockholders' equity** | **$(204,308)** | Key Income Statement Data (for the year ended June 30, 2021) | | Amount (in thousands) | | :--- | :--- | | **Revenues** | **$415,721** | | Operating loss | $(78,443) | | Loss from continuing operations | $(15,897) | | **Net loss attributable to stockholders** | **$(13,954)** | | **Basic and Diluted EPS** | **$(0.58)** | [Notes to Consolidated Financial Statements](index=72&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail the impact of COVID-19, the MSG Entertainment spin-off, accounting policies, and extensive related-party transactions [Note 3. Discontinued Operations](index=81&type=section&id=Note%203.%20Discontinued%20Operations) - Following the April 17, 2020 distribution, the historical results of the MSG Entertainment business have been classified as **discontinued operations** for all periods presented[513](index=513&type=chunk) [Note 8. Leases](index=87&type=section&id=Note%208.%20Leases) - The company accounts for its use of Madison Square Garden under 35-year Arena License Agreements as operating leases, resulting in a Right-of-Use asset of **$703.5 million** and a total lease liability of **$733.1 million** as of June 30, 2021[557](index=557&type=chunk)[571](index=571&type=chunk) - The weighted average remaining lease term for operating leases was **33.7 years** with a weighted average discount rate of **7.13%** as of June 30, 2021[573](index=573&type=chunk) [Note 13. Debt](index=93&type=section&id=Note%2013.%20Debt) Debt Facilities Summary (as of June 30, 2021) | Facility | Capacity (in thousands) | Outstanding (in thousands) | Maturity | | :--- | :--- | :--- | :--- | | 2020 Knicks Revolving Credit Facility | $275,000 | $220,000 | Nov 2023 | | 2020 Knicks Holdings Revolving Credit Facility | $75,000 | $0 | Nov 2023 | | 2020 Rangers Revolving Credit Facility | $250,000 | $135,000 | Nov 2023 | | 2021 Rangers NHL Advance | $30,000 | $30,000 | On Demand | [Note 17. Related Party Transactions](index=104&type=section&id=Note%2017.%20Related%20Party%20Transactions) - The company has extensive related party transactions with MSG Entertainment, MSG Networks, and AMC Networks, all controlled by the **Dolan Family Group**[678](index=678&type=chunk) - Key agreements include Arena License Agreements, media rights agreements, sponsorship sales agreements, and a Transition Services Agreement with MSG Entertainment[679](index=679&type=chunk) - For FY2021, revenues from related parties (primarily MSG Networks) were **$147.0 million**, representing **35% of total consolidated revenues**[694](index=694&type=chunk)[719](index=719&type=chunk)

Madison Square Garden Sports Corp. (NYSE:MSGS) Q4 2021 Results Earnings Conference Call August 19, 2021 10:00 AM ET Company Participants Ari Danes - Senior Vice President of Investor Relations Andy Lustgarten - President, Chief Executive Officer Victoria Mink - Executive Vice President, Chief Financial Officer, Treasurer Conference Call Participants Ben Swinburne - Morgan Stanley John Janedis - Wolfe Research Brandon Ross - LightShed Partners David Karnovsky - JPMorgan Operator Good morning. My name is Chri ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________ FORM 10-Q ________________________ (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-36900 MADISON SQUARE GARDEN SPORTS CORP. (Exact name of registran ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________ FORM 10-Q ________________________ (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-36900 MADISON SQUARE GARDEN SPORTS CORP. (Exact name of regist ...

Madison Square Garden Sports Corp. (NYSE:MSGS) Q2 2021 Earnings Conference Call February 3, 2021 10:00 AM ET Company Participants Ari Danes - CFA, Senior Vice President, Investor Relations Andy Lustgarten - President and Chief Executive Officer Victoria Mink - Executive Vice President, Chief Financial Officer and Treasurer Conference Call Participants John Janedis - Wolfe Research Brandon Ross - LightShed Partners David Karnovsky - JP Morgan Ben Swinburne - Morgan Stanley David Joyce - Barclays Operator ...

PART I. FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for the quarter ended September 30, 2020, including balance sheets, statements of operations, cash flows, and equity, along with notes detailing accounting policies, the MSGE spin-off, and subsequent debt refinancing [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) As of September 30, 2020, total assets were $1.22 billion, total liabilities $1.46 billion, and total equity a deficit of $239.9 million, with cash and equivalents decreasing significantly from June 30, 2020 Consolidated Balance Sheet Highlights (in thousands) | Account | September 30, 2020 | June 30, 2020 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $23,527 | $77,852 | | Total current assets | $96,100 | $128,278 | | Total assets | $1,219,366 | $1,233,798 | | **Liabilities & Equity** | | | | Total current liabilities | $312,444 | $290,254 | | Long-term debt | $350,000 | $350,000 | | Total liabilities | $1,459,259 | $1,437,233 | | Total equity | ($239,893) | ($203,435) | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) For the three months ended September 30, 2020, revenues increased to $57.0 million, and the net loss attributable to stockholders improved to $28.4 million, or ($1.18) per share, compared to the prior year Quarterly Statement of Operations (in thousands, except per share data) | Metric | Q1 FY2021 (ended Sep 30, 2020) | Q1 FY2020 (ended Sep 30, 2019) | | :--- | :--- | :--- | | Revenues | $57,038 | $49,850 | | Direct operating expenses | $39,786 | $18,419 | | Selling, general and administrative expenses | $42,996 | $85,910 | | Operating loss | ($27,404) | ($59,324) | | Loss from continuing operations | ($29,015) | ($40,191) | | Loss from discontinued operations, net of taxes | $0 | ($40,475) | | Net loss attributable to stockholders | ($28,417) | ($79,981) | | Basic loss per common share | ($1.18) | ($3.36) | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the three months ended September 30, 2020, net cash used in operating activities increased to $57.5 million, resulting in a net decrease in cash, cash equivalents, and restricted cash of $64.5 million Quarterly Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended Sep 30, 2020 | Three Months Ended Sep 30, 2019 | | :--- | :--- | :--- | | Net cash used in operating activities | ($57,485) | ($34,234) | | Net cash used in investing activities | ($80) | ($74,236) | | Net cash used in financing activities | ($6,902) | ($23,946) | | Net decrease in cash, cash equivalents and restricted cash | ($64,467) | ($134,366) | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail the basis of presentation, the impact of COVID-19 and the MSGE spin-off, revenue recognition, leases, credit facilities, related party transactions, and subsequent significant debt refinancing in November 2020 - The company's primary business is the ownership and operation of sports teams, including the **New York Knicks (NBA)** and **New York Rangers (NHL)**[34](index=34&type=chunk) - The **COVID-19 pandemic** has materially impacted revenues from ticket sales, suite licenses, sponsorships, and food/beverage sales due to the suspension of events with fans at The Garden[41](index=41&type=chunk) - On April 17, 2020, the company completed the spin-off of **Madison Square Garden Entertainment Corp. (MSGE)**, with historical entertainment business results now reported as discontinued operations[36](index=36&type=chunk)[62](index=62&type=chunk) - Subsequent to the quarter end, on November 6, 2020, the company amended and restated its primary credit facilities, increasing total borrowing capacity and extending maturities to **November 2023**[176](index=176&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the Q1 FY2021 financial results, highlighting a 14% revenue increase and narrowed operating loss, while emphasizing the ongoing COVID-19 impact and subsequent November 2020 credit facility refinancing to bolster liquidity [Results of Operations](index=35&type=section&id=Results%20of%20Operations) For Q1 FY2021, revenues increased by $7.2 million (14%) to $57.0 million, and operating loss decreased by $31.9 million (54%) to $27.4 million, primarily due to deferred media rights and reduced SG&A post-MSGE spin-off Quarterly Financial Performance Summary (in thousands) | Metric | Q1 FY2021 | Q1 FY2020 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenues | $57,038 | $49,850 | $7,188 | 14% | | Direct operating expenses | $39,786 | $18,419 | $21,367 | 116% | | SG&A expenses | $42,996 | $85,910 | ($42,914) | (50)% | | Operating loss | ($27,404) | ($59,324) | $31,920 | 54% | - The primary driver of the revenue increase was a **$30.3 million** rise in league distributions, mainly from national media rights fees related to the completion of the delayed 2019-20 seasons[204](index=204&type=chunk)[206](index=206&type=chunk) - Adjusted operating loss, a non-GAAP measure, improved by **$22.9 million (56%)** to a loss of **$17.8 million**, compared to a loss of **$40.6 million** in the prior-year period[226](index=226&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) As of September 30, 2020, cash and cash equivalents were $23.5 million, with the company securing an additional $250 million in liquidity through debt refinancing in November 2020 to fund operations for the next 12 months - Cash and cash equivalents stood at approximately **$23.5 million** as of September 30, 2020[230](index=230&type=chunk)[234](index=234&type=chunk) - In November 2020, the company secured an additional **$250 million** of liquidity through new financing arrangements, which amended and extended existing credit facilities and established a new one[228](index=228&type=chunk)[234](index=234&type=chunk) - Current deferred revenue obligations were approximately **$138.0 million** as of September 30, 2020, primarily related to tickets, media rights, suites, and sponsorships for upcoming seasons[230](index=230&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate exposure on its variable-rate debt, where a 100 basis point increase would raise annual interest expense by approximately $3.5 million on $350 million outstanding debt - The company has interest rate risk exposure from its credit facilities, which have floating rates based on **LIBOR, Federal Funds Rate, or Prime Rate**[275](index=275&type=chunk)[278](index=278&type=chunk) - As of September 30, 2020, a hypothetical **100 basis point** increase in interest rates would increase annual interest expense by approximately **$3.5 million** on the **$350 million** of outstanding debt[278](index=278&type=chunk) [Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of September 30, 2020, with no material changes to internal control over financial reporting during the quarter - The **CEO and CFO** concluded that the company's disclosure controls and procedures were **effective** as of the end of the quarter[279](index=279&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter ended September 30, 2020[280](index=280&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings) The company settled a derivative lawsuit concerning Executive Chairman James L. Dolan's compensation, effective October 8, 2020, involving his relinquishment of a one-time equity award, with other ongoing lawsuits not expected to have a material adverse effect - A derivative lawsuit regarding **James L. Dolan's compensation** was settled, with the settlement becoming effective on **October 8, 2020**[283](index=283&type=chunk) - Under the settlement, Mr. Dolan relinquished a one-time equity award granted in **October 2018**[283](index=283&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) As of September 30, 2020, approximately $260 million remained available under the $525 million Class A Common Stock share repurchase program, with no shares repurchased during the quarter - The company did not repurchase any shares of its Class A Common Stock during the quarter ended September 30, 2020[285](index=285&type=chunk) - Approximately **$260 million** remained available for repurchases under the existing stock repurchase authorization as of September 30, 2020[285](index=285&type=chunk) [Exhibits](index=46&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including amended and new credit agreements for the Knicks and Rangers subsidiaries, and certifications by the CEO and CFO - Key exhibits filed include the amended and restated credit agreements for the **Knicks and Rangers** dated **November 6, 2020**[287](index=287&type=chunk) - A new credit agreement for **Knicks Holdings, LLC**, also dated **November 6, 2020**, was filed as an exhibit[287](index=287&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Securities registered pursuant to Section 12(g) of the Act: None. For the transition period from ___________ to _____________ Commission File Number: 1-36900 MADISON SQUARE GARDEN SPORTS CORP. (Exact name of r ...

Financial Data and Key Metrics Changes - As of June 30, total cash and cash equivalents were approximately $78 million, with an additional $215 million in borrowing capacity [24] - For fiscal 2019, on a pro forma basis, MSG Sports generated $695 million in revenue and $96 million in adjusted operating income [27][28] - The company had over $290 million in liquidity at fiscal year-end [43] Business Line Data and Key Metrics Changes - The majority of revenue in fiscal 2019 came from media rights fees, sponsorship, and suite license fees, with nearly $240 million from media rights alone [28] - The company reported a significant portion of its revenue is contracted on a multi-year basis, providing strong visibility for future earnings [27] Market Data and Key Metrics Changes - The NBA and NHL have resumed play, with a significant public response indicating pent-up demand for live sports [9] - Over 80% of the Rangers' season ticket holders renewed for the upcoming season, reflecting strong fan engagement [9] Company Strategy and Development Direction - The company aims to create a pure-play sports entity to highlight premium assets and drive long-term value creation [6] - MSG Sports is focused on cost reduction and cash conservation due to the ongoing uncertainty from COVID-19 [31] - The company sees opportunities in improved team performance, playoff participation, and the continued legalization of sports gaming [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's financial flexibility to navigate through challenging times, emphasizing the value of its sports franchises [13] - The company is optimistic about the return of basketball and hockey next year, despite uncertainties related to COVID-19 [10] Other Important Information - The company has entered into 35-year arena license agreements with the Knicks and Rangers, with fees impacted by the pandemic [30] - The NHL's media rights agreement is set to expire after the 2020/21 season, presenting a potential opportunity for increased revenue [16] Q&A Session Summary Question: Impact of potential fanless games on revenue - Management indicated that if there are no fans, revenues from tickets, suites, food, beverage, and merchandise would decline significantly, but media rights revenue would still be recognized [36][37] Question: Cash burn rate and job cuts - The company is focused on cost reduction and cash conservation, with a workforce reduction of approximately 15% in business operations [42][44] Question: Plans around term loans and debt levels - The company plans to begin refinancing the Knicks' senior secured revolver in the near term and expects to successfully refinance credit facilities [50][52] Question: Bubble approach for the upcoming season and sports betting opportunities - Management is exploring various scenarios for the upcoming season, emphasizing the importance of fan safety, and sees significant opportunities in sports betting to drive engagement [55]