Financial Data and Key Metrics Changes - For fiscal year 2025, the company reported revenues exceeding $1 billion and adjusted operating income of $38 million, driven by strong demand for the Knicks and Rangers [6][15] - The fourth quarter revenues were $204 million, a decrease from $227.3 million in the prior year, with event-related revenues down 8% year over year [16][18] - Adjusted operating income for the fourth quarter decreased to an operating loss of $16.8 million, primarily due to higher direct operating expenses [17][18] Business Line Data and Key Metrics Changes - Ticketing revenue increased due to higher average ticket yield and attendance, with a combined average season ticket renewal rate of approximately 90% [8][15] - Merchandise revenues, including online sales, did not reach last year's levels, attributed to the absence of New Jersey launches for the Rangers [9] - Suite revenues reached record levels, benefiting from expanded event-level club space and renovated suites [13] Market Data and Key Metrics Changes - The Knicks' playoff run to the Eastern Conference finals generated the highest per game gate revenues in team history [7] - The company expects an increase in overall media rights revenue in fiscal 2026, despite a $24 million decrease in local media rights fees due to amended agreements [40] Company Strategy and Development Direction - The company aims to drive long-term value for shareholders through its marquee assets and strong business fundamentals [6][14] - There is a focus on enhancing fan engagement through tailored local content and marketing partnerships, with several new partnerships established [12][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the value of owning two iconic sports franchises and noted that recent franchise transactions indicate strong market valuations [14][28] - The company anticipates revenue growth across all in-arena categories in fiscal 2026, supported by new national media deals and continued investment in teams [18][40] Other Important Information - The company ended the fiscal year with approximately $145 million in cash and $291 million in debt, indicating a strong liquidity position [18][24] - The NBA's new national media deals are expected to positively impact revenues starting in the upcoming season [11][40] Q&A Session Summary Question: Impact of MSG Networks media rights on capital returns - Management indicated a strong liquidity position and potential for future capital returns, but no immediate plans were disclosed [23][26] Question: Potential for minority stake sales in Knicks or Rangers - Management acknowledged the value of the teams but stated there are no current plans for minority stake sales [27][28] Question: Participation in NBA's national RSN possibilities - Management is monitoring changes in media rights but did not comment on hypothetical scenarios [31][32] Question: Financial impact of Knicks playoff games - Playoff runs significantly increase demand for tickets and corporate partnerships, with a notable increase in social media engagement [42][43] Question: Outlook on operating expenses and team compensation - Higher team operating expenses are expected due to increased personnel compensation and luxury tax, with the NBA salary cap also rising [50][51] Question: Sponsorship growth outlook - Management is optimistic about marketing partnerships and expects continued growth following a successful fiscal year [52][53]

Financial Data and Key Metrics Changes - For fiscal year 2025, the company reported total revenues exceeding $1 billion and adjusted operating income of $38 million, driven by strong demand for the Knicks and Rangers [5][15] - The fourth quarter revenues were $204 million, a decrease from $227.3 million in the prior year, primarily due to fewer home games [15][16] - Adjusted operating income for the fourth quarter decreased to an operating loss of $16.8 million, down from a profit of $56.5 million in the prior year [16][17] Business Line Data and Key Metrics Changes - Ticketing revenue increased due to higher average ticket yield and attendance, with a combined average season ticket renewal rate of approximately 90% [7][15] - Event-related revenues, including ticket, food, beverage, and merchandise, decreased by 8% year-over-year to $140.3 million [15][16] - Merchandise revenues did not reach last year's levels, impacted by the absence of new product launches compared to the previous year [8][15] Market Data and Key Metrics Changes - The Knicks' playoff run generated the highest per game gate revenues in team history, contributing to increased fan engagement and merchandise sales during the playoffs [6][9][45] - The company anticipates an increase in overall media rights revenue in fiscal 2026, despite a $24 million decrease in local media rights fees due to amended agreements [39][40] Company Strategy and Development Direction - The company is focused on leveraging its marquee assets and strong business fundamentals to drive long-term shareholder value [5][14] - Plans for fiscal 2026 include continued investment in teams and optimizing pricing strategies for ticket sales and hospitality offerings [7][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for their teams and the potential for revenue growth across all in-arena categories in fiscal 2026 [17][18] - The company is monitoring changes in the media rights landscape and believes local media coverage remains valuable for fan engagement [31][32] Other Important Information - The company ended the fiscal year with approximately $145 million in cash and $291 million in debt, indicating a strong liquidity position [17][23] - New marketing partnerships were established, including deals with Abu Dhabi's Department of Culture and Tourism and Lenovo, alongside renewals with existing partners [12][51] Q&A Session Summary Question: Impact of MSG Networks media rights rework on capital returns - Management indicated a strong liquidity position and potential for future capital return programs, but no immediate plans were disclosed [22][25] Question: Potential for minority stake sales in Knicks or Rangers - Management acknowledged the value of their teams but stated there are no current plans for minority stake sales [26][27] Question: Participation in NBA's national RSN possibilities - Management is monitoring changes in media rights but did not commit to any specific actions regarding future participation [30][31] Question: Financial impact of Knicks playoff games - Playoff runs significantly increase demand for tickets and merchandise, with the Knicks' playoff performance leading to record revenues [42][45] Question: Outlook on operating expenses and team compensation - Higher team operating expenses are expected due to increased personnel compensation and luxury tax, with the NBA salary cap also rising [49][50] Question: Sponsorship growth outlook - Management is optimistic about marketing partnerships and expects continued growth in fiscal 2026 following a successful prior year [51][52]