Madison Square Garden Sports Reports Mixed Financial Results for Third Quarter and Nine Months Ended March 31, 2025

Madison Square Garden Sports Corp. (MSG Sports) reported its financial results for the three and nine months ended March 31, 2025, revealing a mixed performance compared to the previous fiscal period. For the third quarter, revenues decreased by 1% to $424.2 million from $430.0 million in the same period last year. However, for the nine-month period, revenues increased by 4% to $835.3 million, up from $799.9 million. The company experienced a net loss of $14.2 million for the third quarter, a significant decline from a net income of $37.9 million in the prior year. For the nine months, the net loss was $20.7 million, compared to a profit of $33.3 million in the same period last year.

The decline in quarterly revenues was primarily attributed to a decrease in local media rights fees, which fell by $18.6 million, and a reduction in food, beverage, and merchandise sales. This was partially offset by increases in sponsorship and signage revenues, which rose by $8.9 million, and suite revenues, which increased by $3.4 million. The company noted that the Knicks and Rangers played two fewer combined home games during the quarter compared to the previous year, impacting ticket-related revenues and associated sales.

Operationally, MSG Sports reported a 16% increase in direct operating expenses for the third quarter, totaling $316.3 million, driven by higher provisions for league revenue sharing and NBA luxury tax expenses. Selling, general, and administrative expenses decreased slightly by 2% to $74.7 million. The company’s operating income for the quarter fell by 59% to $32.3 million, reflecting the impact of increased costs and lower revenues.

Looking ahead, MSG Sports is navigating a challenging environment, particularly with the proposed amendments to its media rights agreements, which are expected to reduce annual rights fees significantly. The company anticipates that these changes will affect future revenue streams, particularly in the upcoming fiscal year. Despite these challenges, MSG Sports maintains a strong liquidity position, with $96.5 million in cash and cash equivalents as of March 31, 2025, and an additional $258 million available under its credit facilities, which the company believes will support its operations in the near term.