What changed in this filing

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Item 1. Financial Statements

2025-10-31 compared with 2025-05-02 · 271 added, 317 removed, 463 unchanged (56% of the section changed)

3 unchanged sentences

(in thousands, except per share data)

September 30,

2025 June 30,

2 unchanged sentences

Restricted cash 8,642 8,571

Accounts receivable, net of allowance for doubtful accounts of $ 0 as of March 31, 2025 and June 30, 2024

Accounts receivable, net of allowance for doubtful accounts of $ 0 as of September 30, 2025 and June 30, 2025

42,618 25,855

3 unchanged sentences

Total current assets 246,693 251,095

Property and equipment, net of accumulated depreciation and amortization of $ 52,813 and $ 52,281 as of March 31, 2025 and June 30, 2024, respectively

Property and equipment, net of accumulated depreciation and amortization of $ 54,446 and $ 53,635 as of September 30, 2025 and June 30, 2025, respectively

28,728 28,962

3 unchanged sentences

Investments 73,515 54,720

Deferred tax assets, net 43,268 34,821

Other assets 36,609 12,753

4 unchanged sentences

(in thousands, except per share data)

September 30,

2025 June 30,

13 unchanged sentences

Operating lease liabilities, noncurrent 829,365 841,050

Defined benefit obligations 944 4,103

Other employee-related costs 77,257 82,178

Deferred tax liabilities, net 6,305 16,925

Deferred revenue, noncurrent 634 662

4 unchanged sentences

Class A Common Stock, par value $ 0.01 , 120,000 shares authorized;

19,486 and 19,423 shares outstanding as of March 31, 2025 and June 30, 2024, respectively

19,530 and 19,488 shares outstanding as of September 30, 2025 and June 30, 2025, respectively

Class B Common Stock, par value $ 0.01 , 30,000 shares authorized;

4,530 shares outstanding as of March 31, 2025 and June 30, 2024

4,530 shares outstanding as of September 30, 2025 and June 30, 2025

Preferred stock, par value $ 0.01 , 15,000 shares authorized;

none outstanding as of March 31, 2025 and June 30, 2024

none outstanding as of September 30, 2025 and June 30, 2025

Additional paid-in capital 4,403 15,348

Treasury stock, at cost, 961 and 1,025 shares as of March 31, 2025 and June 30, 2024, respectively

Treasury stock, at cost, 918 and 960 shares as of September 30, 2025 and June 30, 2025, respectively

( 151,524 ) ( 158,543 )

7 unchanged sentences

(in thousands, except per share data)

Three Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

Three Months Ended September 30,

$ 39,454 $ 53,307

1 unchanged sentence

Direct operating expenses (b)

316,335 273,026 600,299 508,771

Selling, general and administrative expenses (c)

1 unchanged sentence

Depreciation and amortization 811 782

Operating income 32,342 79,742 37,384 93,735

Operating loss ( 27,425 ) ( 8,273 )

Other income (expense):

1 unchanged sentence

Interest expense ( 5,591 ) ( 6,055 )

Miscellaneous expense, net ( 5,743 ) ( 1,403 ) ( 13,478 ) ( 11,077 )

Miscellaneous income (expense), net 15,085 ( 1,126 )

10,072 ( 6,317 )

Income before income taxes 22,630 71,895 9,849 62,938

Income tax expense ( 36,857 ) ( 34,018 ) ( 30,507 ) ( 29,658 )

Net (loss) income $ ( 14,227 ) $ 37,877 $ ( 20,658 ) $ 33,280

Basic (loss) earnings per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ ( 0.59 ) $ 1.58 $ ( 0.86 ) $ 1.39

Diluted (loss) earnings per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ ( 0.59 ) $ 1.57 $ ( 0.86 ) $ 1.38

Loss before income taxes ( 17,353 ) ( 14,590 )

Income tax benefit 8,555 7,048

Net loss $ ( 8,798 ) $ ( 7,542 )

Basic loss per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ ( 0.37 ) $ ( 0.31 )

Diluted loss per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ ( 0.37 ) $ ( 0.31 )

Weighted-average number of common shares outstanding:

2 unchanged sentences

_________________

(a) Includes revenues from related parties of $ 67,704 and $ 86,944 for the three months ended March 31, 2025 and 2024, respectively, and $ 156,825 and $ 173,419 for the nine months ended March 31, 2025 and 2024, respectively.

(b) Includes net charges from related parties of $ 47,476 and $ 49,907 for the three months ended March 31, 2025 and 2024, respectively, and $ 88,528 and $ 88,206 for the nine months ended March 31, 2025 and 2024, respectively.

(c) Includes net charges from related parties of $ 22,439 and $ 18,707 for the three months ended March 31, 2025 and 2024, respectively, and $ 53,994 and $ 47,462 for the nine months ended March 31, 2025 and 2024, respectively.

(a) Includes revenues from related parties of $ 6,760 and $ 8,904 for the three months ended September 30, 2025 and 2024, respectively.

(b) Includes net charges from related parties of $ 2,454 and $ 2,295 for the three months ended September 30, 2025 and 2024, respectively.

(c) Includes net charges from related parties of $ 14,732 and $ 11,862 for the three months ended September 30, 2025 and 2024, respectively.

See accompanying notes to consolidated financial statements.

MADISON SQUARE GARDEN SPORTS CORP.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(in thousands)

Three Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

Net (loss) income $ ( 14,227 ) $ 37,877 $ ( 20,658 ) $ 33,280

Three Months Ended September 30,

Net loss $ ( 8,798 ) $ ( 7,542 )

Other comprehensive income, before income taxes:

5 unchanged sentences

Other comprehensive income, net of income taxes 1 14

Comprehensive (loss) income $ ( 14,213 ) $ 37,884 $ ( 20,617 ) $ 33,299

Comprehensive loss $ ( 8,797 ) $ ( 7,528 )

See accompanying notes to consolidated financial statements.

2 unchanged sentences

(in thousands)

Nine Months Ended

Three Months Ended September 30,

Cash flows from operating activities:

Net (loss) income $ ( 20,658 ) $ 33,280

Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:

Net loss $ ( 8,798 ) $ ( 7,542 )

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization 811 782

1 unchanged sentence

Share-based compensation expense 4,844 4,268

Unrealized loss on equity investments with readily determinable fair value and warrants 11,471 9,969

Unrealized (gain) loss on equity investments with readily determinable fair value and warrants ( 15,500 ) 612

Other non-cash adjustments 1,612 1,673

9 unchanged sentences

Operating lease right-of-use assets and lease liabilities ( 8,036 ) ( 9,711 )

Net cash provided by (used in) operating activities 41,884 ( 16,220 )

Net cash used in operating activities ( 84,954 ) ( 26,158 )

Cash flows from investing activities:

5 unchanged sentences

Taxes paid in lieu of shares issued for equity-based compensation ( 8,770 ) ( 9,062 )

Proceeds from revolving credit facilities — 75,000

Repayment of revolving credit facilities ( 8,000 ) ( 40,000 )

Repayment of NHL advance ( 6,000 ) —

Net cash (used in) provided by financing activities ( 26,406 ) 26,234

Net increase in cash, cash equivalents and restricted cash 10,129 4,325

Net cash used in financing activities ( 9,110 ) ( 9,502 )

Net decrease in cash, cash equivalents and restricted cash ( 95,912 ) ( 36,823 )

Cash, cash equivalents and restricted cash at beginning of period 153,188 94,907

6 unchanged sentences

(in thousands)

Three Months Ended March 31, 2025

Issued Additional

Capital Treasury

Stock Accumulated Deficit Accumulated

Comprehensive

Loss Total Equity

Balance as of December 31, 2024 $ 249 $ 9,776 $ ( 160,647 ) $ ( 121,589 ) $ ( 925 ) $ ( 273,136 )

Net loss — — — ( 14,227 ) — ( 14,227 )

Other comprehensive income — — — — 14 14

Comprehensive loss — — — — — ( 14,213 )

Three Months Ended September 30,

Common Stock Issued $ 249 $ 249

Additional Paid-In Capital

Beginning Balance 15,348 19,079

Share-based compensation 4,844 4,268

— 3,900 — — — 3,900

Tax withholding associated with shares issued for equity-based compensation ( 8,770 ) ( 7,951 )

Common stock issued under stock incentive plans ( 7,019 ) ( 7,043 )

— ( 1,821 ) 1,821 — — —

Balance as of March 31, 2025 $ 249 $ 11,855 $ ( 158,826 ) $ ( 135,816 ) $ ( 911 ) $ ( 283,449 )

See accompanying notes to consolidated financial statements.

MADISON SQUARE GARDEN SPORTS CORP.

CONSOLIDATED STATEMENTS OF EQUITY

(in thousands)

Three Months Ended March 31, 2024

Issued Additional

Capital Treasury

Stock Accumulated Deficit Accumulated

Comprehensive

Loss Total Equity

Balance as of December 31, 2023 $ 249 $ 11,471 $ ( 171,400 ) $ ( 178,512 ) $ ( 997 ) $ ( 339,189 )

Net income — — — 37,877 — 37,877

Other comprehensive income — — — — 7 7

Comprehensive income — — — — — 37,884

Share-based compensation

— 7,350 — — — 7,350

Ending Balance 4,403 8,353

Treasury Stock

Beginning Balance ( 158,543 ) ( 169,547 )

Common stock issued under stock incentive plans 7,019 7,043

— ( 817 ) 817 — — —

Balance as of March 31, 2024 $ 249 $ 18,004 $ ( 170,583 ) $ ( 140,635 ) $ ( 990 ) $ ( 293,955 )

See accompanying notes to consolidated financial statements.

MADISON SQUARE GARDEN SPORTS CORP.

CONSOLIDATED STATEMENTS OF EQUITY

(in thousands)

Nine Months Ended March 31, 2025

Common Stock Issued Additional

Capital Treasury

Stock Accumulated Deficit Accumulated

Comprehensive Loss Total Equity

Balance as of June 30, 2024 $ 249 $ 19,079 $ ( 169,547 ) $ ( 115,139 ) $ ( 952 ) $ ( 266,310 )

Ending Balance ( 151,524 ) ( 162,504 )

Accumulated Deficit

Beginning Balance ( 137,596 ) ( 115,139 )

Net loss ( 8,798 ) ( 7,542 )

Other comprehensive income — — — — 41 41

Comprehensive loss — — — — — ( 20,617 )

Share-based compensation

— 14,159 — — — 14,159

Tax withholding associated with shares issued for equity-based compensation — ( 10,662 ) — — — ( 10,662 )

Common stock issued under stock incentive plans

— ( 10,721 ) 10,721 — — —

Dividends declared ($ 7.00 per share)

— — — ( 19 ) — ( 19 )

Balance as of March 31, 2025 $ 249 $ 11,855 $ ( 158,826 ) $ ( 135,816 ) $ ( 911 ) $ ( 283,449 )

See accompanying notes to consolidated financial statements.

MADISON SQUARE GARDEN SPORTS CORP.

CONSOLIDATED STATEMENTS OF EQUITY

(in thousands)

Nine Months Ended March 31, 2024

Common Stock Issued Additional

Capital Treasury

Stock Accumulated Deficit Accumulated

Comprehensive Loss Total Equity

Balance as of June 30, 2023 $ 249 $ 16,846 $ ( 179,410 ) $ ( 173,910 ) $ ( 1,009 ) $ ( 337,234 )

Net income — — — 33,280 — 33,280

Ending Balance ( 146,410 ) ( 122,689 )

Accumulated Other Comprehensive Loss

Beginning Balance ( 897 ) ( 952 )

Other comprehensive income 1 14

Comprehensive income — — — — — 33,299

Share-based compensation

— 18,069 — — — 18,069

Tax withholding associated with shares issued for equity-based compensation — ( 8,084 ) — — — ( 8,084 )

Common stock issued under stock incentive plans

— ( 8,827 ) 8,827 — — —

Dividends declared ($ 7.00 per share)

— — — ( 5 ) — ( 5 )

Balance as of March 31, 2024 $ 249 $ 18,004 $ ( 170,583 ) $ ( 140,635 ) $ ( 990 ) $ ( 293,955 )

Ending Balance ( 896 ) ( 938 )

Total Equity $ ( 294,178 ) $ ( 277,529 )

See accompanying notes to consolidated financial statements.

8 unchanged sentences

The Company’s other professional sports franchises include two development league teams — the Hartford Wolf Pack of the American Hockey League and the Westchester Knicks of the NBA G League.

These professional sports franchises are collectively referred to herein as the “sports teams” or the “teams.” The Company also owns and operates a professional sports team performance center — the Madison Square Garden Training Center in Greenburgh, NY.

These professional sports franchises are collectively referred to herein as the “sports teams” or the “teams.” The Company also operates a professional sports team performance center — the Madison Square Garden Training Center in Greenburgh, NY.

The Company operates and reports financial information in one segment.

3 unchanged sentences

The Company’s CODM reviews total company operating results to assess overall performance and allocate resources.

The Company was incorporated on March 4, 2015 as an indirect, wholly-owned subsidiary of MSG Networks Inc.

The Company was originally incorporated in Delaware on March 4, 2015 as an indirect, wholly-owned subsidiary of MSG Networks Inc.

(“MSG Networks”).

4 unchanged sentences

Accordingly, agreements between the Company and MSG Networks are now effectively agreements with Sphere Entertainment on a consolidated basis.

On June 10, 2025, the Company completed its conversion from a corporation organized under the laws of the State of Delaware to a corporation organized under the laws of the State of Nevada.

Unless the context otherwise requires, all references to Madison Square Garden Entertainment Corp.

3 unchanged sentences

generally accepted accounting principles (“GAAP”) and Article 10 of Regulation S-X of the Securities and Exchange Commission for interim financial information, and should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2025 (“fiscal year 2025”).

Certain information and note disclosures normally included in the annual financial statements have been condensed or omitted from these Financial Statements.

The Financial Statements presented in this Quarterly Report on Form 10-Q are unaudited;

2 unchanged sentences

The dependence of MSG Sports on revenues from its NBA and NHL sports teams generally means it earns a disproportionate share of its revenues in the second and third quarters of the Company’s fiscal year, which is when the majority of the sports teams’ games are played.

Reclassifications

Certain reclassifications have been made in order to conform to the current period’s presentation and relate to the combination of Defined benefit obligations and Other employee-related costs in non-current liabilities in the consolidated balance sheets.

MADISON SQUARE GARDEN SPORTS CORP.

9 unchanged sentences

Such estimates include the valuation of accounts receivable, other current assets, goodwill, intangible assets, other long-lived assets, fair value of investments, deferred tax valuation allowance, tax accruals, and other liabilities.

In addition, estimates are used in revenue recognition, revenue sharing expense (net of escrow and excluding playoffs), luxury tax expense, income tax expense (benefit), performance and share-based compensation, depreciation and amortization, litigation matters and other matters.

In addition, estimates are used in revenue recognition, revenue sharing expense (net of escrow), luxury tax expense, income tax expense (benefit), performance and share-based compensation, depreciation and amortization, litigation matters and other matters.

Management believes its use of estimates in the Financial Statements to be reasonable.

5 unchanged sentences

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In March 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No.

2023-01, Leases (Topic 842):

Common Control Arrangements.

This ASU amends certain provisions of Accounting Standards Codification (“ASC”) 842, Leases that apply to arrangements between related parties under common control.

The Company adopted this standard as of the beginning of the fiscal year ending June 30, 2025 (“fiscal year 2025”) and the adoption did not have an impact on the Company’s consolidated financial statements.

Recently Issued Accounting Pronouncements Not Yet Adopted

In November 2023, the FASB issued ASU No.

2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures.

The ASU expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the CODM and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets.

All disclosure requirements under ASU 2023-07 are also required for public entities with a single reportable segment.

The ASU is effective for the Company’s Annual Report on Form 10-K for fiscal year 2025 and subsequent interim periods, with early adoption permitted.

The Company is currently evaluating the impact this standard will have on its segment disclosures.

In December 2023, the FASB issued ASU No.

In December 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No.

2023-09, Income Taxes (Topic 740):

9 unchanged sentences

The Company is currently evaluating the impact this standard will have on its disclosures.

In September 2025, the FASB issued ASU No.

2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40) - Targeted Improvements to the Accounting for Internal-Use Software .

The ASU modernizes and clarifies the threshold for when an entity is required to start capitalizing software costs and is based on when (i) management has authorized and committed to funding the software project and (ii) it is probable that the project will be completed and the software will be used to perform the function intended.

The ASU is effective for the Company in the first quarter of fiscal year 2028.

The Company is currently evaluating the impact this standard will have on its consolidated financial statements.

MADISON SQUARE GARDEN SPORTS CORP.

3 unchanged sentences

All revenue recognized in the consolidated statements of operations is considered to be revenue from contracts with customers.

For the three months ended March 31, 2025, the Company did not have any impairment losses on contract assets arising from contracts with customers.

For the nine months ended March 31, 2025, the Company recorded impairment losses of $ 109 on contract assets arising from contracts with customers.

For the three and nine months ended March 31, 2025, the Company did not have any impairment losses on receivables arising from contracts with customers.

For the three and nine months ended March 31, 2024, the Company did not have any impairment losses on receivables or contract assets arising from contracts with customers.

For the three months ended September 30, 2025 and 2024, the Company did not have any impairment losses on receivables or contract assets arising from contracts with customers.

Disaggregation of Revenue

The following table disaggregates the Company’s revenues by type of goods or services in accordance with the disclosure requirements set forth in ASC Subtopic 280-10-50-38 to 40 and the disaggregation of revenue required disclosures in accordance with ASC Subtopic 606-10-50-5 for the three and nine months ended March 31, 2025 and 2024:

Three Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

The following table disaggregates the Company’s revenues by type of goods or services in accordance with the disclosure requirements set forth in Accounting Standards Codification (“ASC”) Subtopic 280-10-50-38 to 40 and the disaggregation of revenue required disclosures in accordance with ASC Subtopic 606-10-50-5 for the three months ended September 30, 2025 and 2024:

Three Months Ended September 30,

Event-related (a)

1 unchanged sentence

Media rights (b)

123,544 139,579 257,799 269,345

Sponsorship, signage and suite licenses 4,655 5,188

3 unchanged sentences

(a) Consists of (i) ticket sales and other ticket-related revenues, and (ii) food, beverage and merchandise sales at The Garden.

(b) Consists of (i) local media rights fees, (ii) revenue from the distribution through league-wide national television contracts, and (iii) other local radio rights fees.

Revenues from media rights for the three and nine months ended March 31, 2025 reflect a reduction in expected revenues from local media rights fees for the 2024-25 season as a result of proposed amendments to the Knicks’ and Rangers’ local media rights agreements with MSG Networks contemplated in the Transaction Support Agreement (as defined below).

(b) Consists of (i) local media rights fees from MSG Networks, (ii) revenue from the distribution through league-wide national media contracts, and (iii) other local radio rights fees.

On June 27, 2025, the media rights agreements between subsidiaries of MSG Networks, on the one hand, and New York Knicks, LLC (“Knicks LLC”) and New York Rangers, LLC (“Rangers LLC”), on the other hand, were amended, as follows:

• New York Knicks:

◦ A modification to the annual rights fee to effect a 28 % reduction as of January 1, 2025;

◦ an elimination of the annual rights fee escalator;

◦ a change to the contract expiration date to the end of the 2028-29 season, subject to a right of first refusal in favor of MSG Networks;

• New York Rangers:

◦ A modification to the annual rights fee to effect an 18 % reduction as of January 1, 2025;

◦ an elimination of the annual rights fee escalator;

◦ a change to the contract expiration date to the end of the 2028-29 season, subject to a right of first refusal in favor of MSG Networks.

Concurrent with the amendments to the media rights agreements, MSG Networks issued penny warrants to the Company exercisable for 19.9 % of the equity interests in MSG Networks.

The amendments were accounted for as a modification under ASC Subtopic 606 with revenue for the fiscal year ended June 30, 2025 reflecting the change in the transaction price in the media rights agreements.

The penny warrants issued to the Company were considered non-cash consideration under ASC Subtopic 606 and the fair value of consideration received was included in the change in transaction price as a result of the modification.

Refer to Note 9 for further details regarding the penny warrant investment and corresponding fair value.

MADISON SQUARE GARDEN SPORTS CORP.

2 unchanged sentences

The timing of revenue recognition, billings and cash collections results in billed receivables, contract assets and contract liabilities on the consolidated balance sheets.

The following table provides information about contract balances from the Company’s contracts with customers as of March 31, 2025 and June 30, 2024:

March 31, June 30,

The following table provides information about contract balances from the Company’s contracts with customers as of September 30, 2025 and June 30, 2025:

September 30, June 30,

Receivables from contracts with customers, net (a)

1 unchanged sentence

Contract assets, current (b)

28,059 14,054

Deferred revenue, including non-current portion (c), (d)

2 unchanged sentences

(a) Receivables from contracts with customers, net, which are reported in Accounts receivable, net and Net related party receivables in the accompanying consolidated balance sheets, represent the Company’s unconditional rights to consideration under its contracts with customers.

As of March 31, 2025 and June 30, 2024, the Company’s receivables reported above incl uded $ 30,532 and $ 0 , respectively, related to contracts with customers that are related parties.

As of September 30, 2025 and June 30, 2025, the Company’s receivables reported above included $ 466 and $ 0 , respectively, related to contracts with customers that are related parties.

See Note 15 for further details on these related party arrangements.

Receivables from contracts with customers, net, excludes amounts recorded in Accounts receivable, net, associated with amounts due from the NBA and NHL related to escrow and player compensation recoveries and luxury tax payments.

As of March 31, 2025 and June 30, 2024, the Company had receivable balances related to escrow and player compensation recoveries of $ 14,667 and $ 0 , respectively, recorded in Accounts receivable, net.

(b) Contract assets, current, which are reported as Other current assets in the accompanying consolidated balance sheets, primarily relate to the Company’s rights to consideration for goods or services transferred to the customer, for which the Company does not have an unconditional right to bill as of the reporting date.

Contract assets are transferred to accounts receivable once the Company’s right to consideration becomes unconditional.

The Company had contract assets related to local media rights of $ 6,507 and $ 0 as of March 31, 2025 and June 30, 2024, respectively.

See Note 16 for further details on these related party arrangements.

(c) Deferred revenue, including non-current portion, primarily relates to the Company’s receipt of consideration from customers, inclusive of sales tax collected, or billing customers in advance of the Company’s transfer of goods or services to those customers.

(c) Deferred revenue, including the non-current portion, primarily relates to the Company’s receipt of consideration from customers, inclusive of sales tax collected, or billing customers in advance of the Company’s transfer of goods or services to those customers.

Deferred revenue is reduced and the related revenue is recognized once the underlying goods or services are transferred to a customer.

(d) Revenue recognized for the nine months ended March 31, 2025 relating to the deferred revenue balance as of June 30, 2024 was $ 115,264 .

The Company’s deferred revenue related to local media rights was $ 16,533 and $ 0 as of September 30, 2025 and June 30, 2025, respectively.

See Note 15 for further details on these related party arrangements.

(d) Revenue recognized for the three months ended September 30, 2025 relating to the deferred revenue balance as of July 1, 2025 was $ 5,874 .

Transaction Price Allocated to the Remaining Performance Obligations

The following table depicts the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of March 31, 2025.

The following table depicts the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of September 30, 2025.

In developing the estimated revenue, the Company applies the allowable practical expedient and does not disclose information about remaining performance obligations that have original expected durations of one year or less.

Additionally, the Company has elected to exclude variable consideration from its disclosure related to the remaining performance obligations under its local media rights arrangements with MSG Networks, league-wide national and international television contracts, and certain other arrangements with variable consideration.

Additionally, the Company has elected to exclude variable consideration from its disclosure related to the remaining performance obligations under its local media rights arrangements with MSG Networks, league-wide national and international media contracts, and certain other arrangements with variable consideration.

Fiscal year ending June 30, 2026 (remainder) $ 174,402

6 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Computation of (Loss) Earnings per Common Share

The following table presents a reconciliation of (loss) earnings allocated to common shares and a reconciliation of weighted-average shares used in the calculations of basic and diluted (loss) income per common share attributable to the Company’s stockholders (“EPS”) and the number of shares excluded from diluted (loss) income per common share, as they were anti-dilutive.

Three Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

Net (loss) earnings allocable to common shares, basic and diluted (numerator):

Net (loss) income $ ( 14,227 ) $ 37,877 $ ( 20,658 ) $ 33,280

Computation of Earnings (Loss) per Common Share

The following table presents a reconciliation of earnings (loss) allocated to common shares and a reconciliation of weighted-average shares used in the calculations of basic and diluted earnings (loss) per common share attributable to the Company’s stockholders (“EPS”) and the number of shares excluded from diluted earnings (loss) per common share, as they were anti-dilutive.

Three Months Ended September 30,

Net loss allocable to common shares, basic and diluted (numerator):

Net loss $ ( 8,798 ) $ ( 7,542 )

Dividends to other-than-common stockholders (a)

Net (loss) earnings allocable to common shares, basic and diluted (numerator):

Net loss allocable to common shares, basic and diluted (numerator):

$ ( 8,814 ) $ ( 7,550 )

4 unchanged sentences

Weighted-average shares excluded from diluted EPS 80 92

Basic (loss) earnings per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ ( 0.59 ) $ 1.58 $ ( 0.86 ) $ 1.39

Diluted (loss) earnings per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ ( 0.59 ) $ 1.57 $ ( 0.86 ) $ 1.38

Basic loss per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ ( 0.37 ) $ ( 0.31 )

Diluted loss per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ ( 0.37 ) $ ( 0.31 )

_________________

2 unchanged sentences

Direct operating and selling, general and administrative expenses in the accompanying consolidated statements of operations include a net provision or credit for transactions relating to the Company’s sports teams for waiver/contract termination costs, player trades and season-ending injuries (“Team personnel transactions”).

Team personnel transactions were a net credit of $ 653 and a net provision of $ 2,170 for the three months ended March 31, 2025 and 2024, respectively, and a net provision of $ 7,766 and $ 2,170 for the nine months ended March 31, 2025 and 2024, respectively .

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Team personnel transactions were a net provision of $ 2,382 and $ 833 for the three months ended September 30, 2025 and 2024, respectively.

Cash, Cash Equivalents and Restricted Cash

The following table provides a summary of the amounts recorded as cash, cash equivalents and restricted cash.

September 30,

2025 June 30,

2024 March 31,

2025 September 30,

Captions on the consolidated balance sheets:

5 unchanged sentences

_________________

(a) Restricted cash as of March 31, 2025, June 30, 2024 and March 31, 2024 included cash deposited in an escrow account (see Note 2 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2024 for more information).

The Company’s leases primarily consist of the lease of the Company’s principal executive offices under the Sublease Agreement with MSG Entertainment (as defined below), and a lease agreement for an aircraft.

(a) Restricted cash as of September 30, 2025, June 30, 2025 and September 30, 2024 included cash deposited in an escrow account (see Note 2 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2025 for more information).

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The Company’s leases primarily consist of the lease of the Company’s principal executive offices at Two Pennsylvania Plaza in New York under the Sublease Agreement with MSG Entertainment (as defined below) and a lease agreement for an aircraft.

In addition, the Company accounts for the rights of use of The Garden pursuant to the Arena License Agreements (as defined below) as leases under the ASC Topic 842, Leases.

See Note 7 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2025 for more information regarding the Company’s accounting policies associated with its leases.

During the second quarter of fiscal 2025, the Company amended and restated its prior sublease agreement with MSG Entertainment (the “Prior Sublease Agreement”) to enter into a short term lease for new principal executive offices through December 31, 2024.

The Company recorded the short term operating lease costs for this amendment within Selling, general and administrative expenses in the accompanying consolidated statements of operations for the nine months ended March 31, 2025.

During the second quarter of fiscal year 2025, the Company amended and restated its prior sublease agreement with MSG Entertainment (the “Prior Sublease Agreement”) to enter into a short term lease for new principal executive offices through December 31, 2024.

In January 2025, the Company entered into a new sublease agreement with MSG Entertainment for new principal executive offices at Two Pennsylvania Plaza in New York with a lease term which ends January 31, 2046 (the “New Sublease Agreement” and together with the Prior Sublease Agreement, the “Sublease Agreement”) and fixed lease payment obligations of $ 167,444 over the lease term.

The Company recorded a lease right-of-use asset and liability in the accompanying consolidated balance sheet as of March 31, 2025 based on the present value of minimum fixed lease payments over the lease term utilizing the Company’s incremental borrowing rate as of the lease commencement date.

In addition, the Company entered into a commitment whereby if the MSG Entertainment’s lease for principal executive offices at Two Pennsylvania Plaza in New York were terminated under certain circumstances, the Company would be required to enter into a new lease for executive offices at Two Pennsylvania Plaza directly with the landlord, with a consistent lease term through January 31, 2046.

As of March 31, 2025, the Company’s exis ting operating leases, which are recorded in the accompanying financial statements, have remaining lease terms ranging from 7 to 30 years.

The Company recorded a lease right-of-use asset and liability based on the present value of minimum fixed lease payments over the lease term utilizing the Company’s incremental borrowing rate as of the lease commencement date.

In addition, the Company entered into a commitment whereby if MSG Entertainment’s lease for principal executive offices at Two Pennsylvania Plaza in New York were terminated under certain circumstances, the Company would be required to enter into a new lease for executive offices at Two Pennsylvania Plaza directly with the landlord, with a consistent lease term through January 31, 2046.

As of September 30, 2025, the Company’s exis ting operating leases, which are recorded in the accompanying financial statements, have remaining lease terms ranging from 6 to 30 years.

In certain ins tances, leases include options to renew, with varying option terms.

1 unchanged sentence

The Company’s lease agreements do not contain material residual value guarantees or material restrictive covenants.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The following table summarizes the right-of-use assets and lease liabilities recorded in the accompanying consolidated balance sheets as of March 31, 2025 and June 30, 2024:

Line Item in the Company’s Consolidated Balance Sheet March 31,

The following table summarizes the right-of-use assets and lease liabilities recorded in the accompanying consolidated balance sheets as of September 30, 2025 and June 30, 2025:

Line Item in the Company’s Consolidated Balance Sheet September 30,

2025 June 30,

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_________________

(a) As of March 31, 2025, Operating lease liabilities, current and Operating lease liabilities, noncurrent included balances o f $ 44,437 and $ 817,504 , r espectively, that are payable to MSG Entertainment.

(a) As of September 30, 2025, Operating lease liabilities, current and Operating lease liabilities, noncurrent included balances o f $ 47,655 and $ 800,692 , r espectively, that are payable to MSG Entertainment.

As of June 30, 2025, Operating lease liabilities, current and Operating lease liabilities, noncurrent included balances of $ 46,040 and $ 811,190 , respectively, that are payable to MSG Entertainment.

The following table summarizes the activity recorded within the accompanying consolidated statements of operations for the three and nine months ended March 31, 2025 and 2024:

Line Item in the Company’s Consolidated Statement of Operations Three Months Ended March 31, Nine Months Ended March 31,

2025 2024 2025 2024

The following table summarizes the activity recorded within the accompanying consolidated statements of operations for the three months ended September 30, 2025 and 2024:

Line Item in the Company’s Consolidated

Statement of Operations Three Months Ended September 30,

Operating lease costs Direct operating expenses $ 1,311 $ 1,311

Operating lease costs Selling, general and administrative expenses

3,693 2,320 8,126 6,960

Short term lease costs Selling, general and administrative expenses — — 3,971 —

Total lease cost $ 5,004 $ 3,782

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Supplemental Information

For the nine months ended March 31, 2025 and 2024, cash paid for amounts included in the measurement of lease liabilities was $ 39,172 and $ 39,119 , respectively.

For the nine months ended March 31, 2025, non-cash additions to right-of-use assets and operating lease liabilities were $ 86,201 .

The weighted average remaining lease term for operating leases recorded in the accompanying consolidated balance sheet as of March 31, 2025 was 28.4 years.

The weighted average discount rate was 7.05 % as of March 31, 2025 and represented the Company’s estimated incremental borrowing rate, assuming a secured borrowing, based on the remaining lease term at the period in which the lease term expectation commenced or was modified.

Maturities of operating lease liabilities as of March 31, 2025 were as follows:

For the three months ended September 30, 2025 and 2024, cash paid for amounts included in the measurement of lease liabilities was $ 13,039 and $ 13,493 , respectively.

For the three months ended September 30, 2025 and 2024, there were no non-cash additions to right-of-use assets and operating lease liabilities.

The weighted average remaining lease term for operating leases recorded in the accompanying consolidated balance sheet as of September 30, 2025 was 27.9 years.

The weighted average discount rate was 7.05 % as of September 30, 2025.

Maturities of operating lease liabilities as of September 30, 2025 were as follows:

Fiscal year ending June 30, 2026 (remainder) $ 41,331

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Total lease liabilities $ 883,598

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Goodwill and Intangible Assets

During the first quarter of fiscal year 2026, the Company performed its annual impairment test of goodwill and determined that there were no impairments identified as of the impairment test date.

The carrying amount of goodwill as of March 31, 2025 and June 30, 2024 was $ 226,523 .

The Company’s indefinite-lived intangible assets as of March 31, 2025 and June 30, 2024 were as follows:

The carrying amount of goodwill as of September 30, 2025 and June 30, 2025 was $ 226,523 .

The Company’s indefinite-lived intangible assets as of September 30, 2025 and June 30, 2025 were as follows:

Sports franchises $ 102,564

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During the first quarter of fiscal year 2026, the Company performed its annual impairment test of identifiable indefinite-lived intangible assets and determined that there were no impairments identified as of the impairment test date.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The Company’s Investments reported in the accompanying consolidated balance sheets, consisted of the following:

September 30,

2025 June 30,

Equity method investments:

Hard Carry Gaming, Inc.

(“NRG”) $ 6,333 $ 6,607

MSG Networks — —

Other equity method investments 4,332 4,421

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_________________

(a) During the three and nine months ended March 31, 2025, the Company recorded impairment charges and reductions in carrying value resulting from observable price changes of $ 0 and $ 894 , respectively, related to its equity securities without readily determinable fair values in Miscellaneous expense, net within the accompanying consolidated statements of operations.

During the three and nine months ended March 31, 2024, the Company did not record any impairment charges or changes in carrying value of its equity securities without readily determinable fair values in the accompanying consolidated statements of operations.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(a) During the three months ended September 30, 2025 and 2024, the Company did not record any impairment charges or changes in carrying value of its equity securities without readily determinable fair values in the accompanying consolidated statements of operations.

Equity Method Investments

The Company holds preferred shares of the capital stock of Hard Carry Gaming, Inc.

(“NRG”), a professional gaming and entertainment company.

During the three and nine months ended March 31, 2025, the Company recognized its net share of losses of $ 26 and $ 542 , respectively, in Miscellaneous expense, net within the Company’s consolidated statements of operations.

During the three and nine months ended March 31, 2024, the Company recognized its net share of income of $ 140 and losses of $ 718 , respectively, in Miscellaneous expense, net within the Company’s consolidated statements of operations.

As of March 31, 2025 and June 30, 2024, the Company’s ownership in NRG was approximately 25 %.

The Company holds preferred shares of the capital stock of NRG, a professional gaming and entertainment company.

During the three months ended September 30, 2025 and 2024, the Company recognized its net share of losses of $ 274 and $ 230 , respectively, in Miscellaneous income (expense), net within the Company’s consolidated statements of operations.

As of September 30, 2025 and June 30, 2025, the Company’s ownership in NRG was approximately 25 %.

In June 2025, the media rights agreements between subsidiaries of MSG Networks, on the one hand, and Knicks LLC and Rangers LLC, on the other hand, were amended as further described in Note 3.

Concurrent with the amendments to the media rights agreements, MSG Networks issued penny warrants to the Company exercisable for 19.9 % of the equity interests in MSG Networks.

The Company has accounted for the penny warrants issued to the Company as in-substance common stock in accordance with ASC Topic 323, Investments — Equity Method and Joint Ventures, and the Company determined that it has the ability to exert significant influence over the investee.

The Company recorded the investment in MSG Networks penny warrants at fair value as an equity method investment.

The Company estimated the fair value of the MSG Networks warrants based on a discounted cash flow model (income approach).

This approach relied on numerous assumptions and judgments within the model that were subject to various risks and uncertainties.

Principal assumptions utilized, all of which are considered Level III inputs under the fair value hierarchy, include the Company’s estimates of future revenue, estimates of future operating cost, margin assumptions, terminal growth rates and the discount rate applied to estimated future cash flows.

During the three months ended September 30, 2025, the Company recognized no income or loss related to the MSG Networks equity method investment.

Equity Investments with Readily Determinable Fair Values

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Refer to Note 10 for further details regarding the Company’s warrants, including the inputs used in determining the fair value of the warrants.

• Other equity investments held in trust under the Company’s Executive Deferred Compensation Plan.

Refer to Note 13 for further details regarding the plan.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

• Other equity investments held in trust under the Company’s Executive Deferred Compensation Plan (the “Deferred Compensation Plan”) .

See Note 14 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2025 for more information regarding Deferred Compensation Plan.

The Company recorded compensation expense of $ 963 and $ 965 for the three months ended September 30, 2025 and 2024 , respectively, within Selling, general and administrative expenses to reflect the remeasurement of the Deferred Compensation Plan liability.

In addition, the Company recorded gains of $ 963 and $ 965 for the three months ended September 30, 2025 and 2024, respectively, within Miscellaneous income (expense), net to reflect t he remeasurement of the fair value of assets under the Deferred Compensation Plan.

The fair value of the Company’s investments in common stock of Xtract One and other investments held in trust are determined based on quoted market prices in active markets, which are classified within Level I of the fair value hierarchy.

The cost basis and carrying value of equity investments with readily determinable fair values are as follows:

March 31, 2025 June 30, 2024

September 30, 2025 June 30, 2025

Cost Basis Carrying Value/Fair Value Cost Basis Carrying Value/Fair Value

2 unchanged sentences

$ 29,165 $ 44,796 $ 26,984 $ 32,826

The following table summarizes the realized and unrealized gains (losses) on equity investments with readily determinable fair values, recorded within Miscellaneous expense, net within the Company’s consolidated statements of operations, for the three and nine months ended March 31, 2025 and 2024:

Three Months Ended March 31, Nine Months Ended March 31,

2025 2024 2025 2024

Unrealized loss - Xtract One common stock $ ( 3,387 ) $ ( 853 ) $ ( 7,103 ) $ ( 5,645 )

Unrealized (loss) gain - other equity investments with readily determinable fair values ( 319 ) 809 723 1,501

Realized gain - other equity investments with readily determinable fair values 184 12 250 55

The following table summarizes amounts recognized related to the Deferred Compensation Plan in the consolidated balance sheets:

September 30,

2025 June 30,

Non-current assets (included in investments) $ 26,680 $ 23,536

Current liabilities (included in accrued employee related costs) ( 1,404 ) ( 1,333 )

Non-current liabilities (included in other employee related costs) ( 25,276 ) ( 22,203 )

The following table summarizes the realized and unrealized gains (losses) on equity investments with readily determinable fair values, recorded within Miscellaneous income (expense), net within the Company’s consolidated statements of operations, for the three months ended September 30, 2025 and 2024:

Three Months Ended September 30,

Unrealized gain (loss) - Xtract One common stock $ 8,826 $ ( 533 )

Unrealized gain - other equity investments with readily determinable fair values 963 965

$ 9,789 $ 432

3 unchanged sentences

The following table presents the Company’s assets that are measured at fair value on a recurring basis, which include cash equivalents:

Fair Value Hierarchy March 31,

Fair Value Hierarchy September 30,

2025 June 30,

11 unchanged sentences

The Company’s warrants are included within Investments in the accompanying consolidated balance sheets.

Changes in the fair value of derivative instruments are measured at each reporting date and are recorded within Miscellaneous expense, net in the accompanying consolidated statements of operations.

Changes in the fair value of derivative instruments are measured at each reporting date and are recorded within Miscellaneous income (expense), net in the accompanying consolidated statements of operations.

The fair value of the Company’s warrants in Xtract One were determined using the Black-Scholes option pricing model.

The following are key assumptions used to calculate the fair value of the warrants as of March 31, 2025 and June 30, 2024:

The following are key assumptions used to calculate the fair value of the warrants as of September 30, 2025 and June 30, 2025:

September 30,

2025 June 30,

3 unchanged sentences

The following table presents additional information about our assets for which we utilize Level III inputs to determine fair value:

Three Months Ended March 31, Nine Months Ended March 31,

2025 2024 2025 2024

Three Months Ended September 30,

Balance at beginning of period $ 1,604 $ 6,995

Unrealized losses on warrants ( 1,934 ) ( 1,529 ) ( 5,091 ) ( 5,825 )

Unrealized gains (losses) on warrants 5,711 ( 1,044 )

Balance at end of period $ 7,315 $ 5,951

2 unchanged sentences

The carrying value and fair value of the Company’s debt reported in the accompanying consolidated balance sheets are as follows:

March 31, 2025 June 30, 2024

September 30, 2025 June 30, 2025

Value Carrying

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In addition, see Note 7 for more information on the contractual obligations related to future lease payments.

The Company did not have any material changes in its contractual obligations, including off-balance sheet commitments, since the end of fiscal year 2024 other than the New Sublease Agreement described in Note 7 and activities in the ordinary course of business.

The Company did not have any material changes in its contractual obligations, including off-balance sheet commitments, since the end of fiscal year 2025, other than activities in the ordinary course of business.

Legal Matters

2 unchanged sentences

Knicks Revolving Credit Facility

On September 30, 2016, New York Knicks, LLC (“Knicks LLC”), a wholly owned subsidiary of the Company, entered into a credit agreement (the “2016 Knicks Credit Agreement”) with a syndicate of lenders providing for a senior secured revolving credit facility of up to $ 200,000 with a term of five years to fund working capital needs and for general corporate purposes.

On September 30, 2016, Knicks LLC, a wholly owned subsidiary of the Company, entered into a credit agreement (the “2016 Knicks Credit Agreement”) with a syndicate of lenders providing for a senior secured revolving credit facility of up to $ 200,000 with a term of five years to fund working capital needs and for general corporate purposes.

On November 6, 2020, the Company amended and restated the 2016 Knicks Credit Agreement in its entirety (the “2020 Knicks Credit Agreement”).

4 unchanged sentences

Amounts borrowed may be distributed to the Company except during an event of default.

All borrowings under the Knicks Revolving Credit Facility are subject to the satisfaction of certain customary conditions, including a representation as to the absence of a bankruptcy or insolvency event (as set forth in the Knicks Credit Agreement) with respect to the obligor (including MSG Networks) under any local media rights agreement.

All borrowings under the Knicks Revolving Credit Facility are subject to the satisfaction of certain customary conditions, including a representation as to the absence of a bankruptcy or insolvency event (as defined in the Knicks Credit Agreement) with respect to the obligor under any local media rights agreement.

Borrowings under the Knicks Credit Agreement bear interest at a floating rate, which at the option of Knicks LLC may be either (i) a base rate plus a margin ranging from 0.250 % to 0.500 % per annum or (ii) term Secured Overnight Financing Rate (“SOFR”) plus a credit spread adjustment of 0.100 % per annum plus a margin ranging from 1.250 % to 1.500 % per annum depending on the credit rating applicable to the NBA’s league-wide credit facility.

Knicks LLC is required to pay a commitment fee ranging from 0.250 % to

Knicks LLC is required to pay a commitment fee ranging from 0.250 % to 0.300 % per annum in respect of the average daily unused commitments under the Knicks Revolving Credit Facility.

The outstanding balance under

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

0.300 % per annum in respect of the average daily unused commitments under the Knicks Revolving Credit Facility.

During the nine months ended March 31, 2025 , the Company made principal repayments of $ 8,000 under the Knicks Revolving Credit Facility.

The outstanding balance under the Knicks Revolving Credit Facility was $ 267,000 as of March 31, 2025, which was recorded as Long-term debt in the accompanying consolidated balance sheet.

The interest rate on the Knicks Revolving Credit Facility as of March 31, 2025 was 5.67 % .

During the nine months ended March 31, 2025, the Company made interest payments of $ 12,897 in respect of the Knicks Revolving Credit Facility.

the Knicks Revolving Credit Facility was $ 267,000 as of September 30, 2025, which was recorded as Long-term debt in the accompanying consolidated balance sheet.

The interest rate on the Knicks Revolving Credit Facility as of September 30, 2025 was 5.51 % .

During the three months ended September 30, 2025 and 2024 , the Company made interest payments in respect of the Knicks Revolving Credit Facility of $ 3,883 and $ 4,793 , respectively.

All obligations under the Knicks Revolving Credit Facility are secured by a first lien security interest in certain of Knicks LLC’s assets, including, but not limited to, (i) the Knicks LLC’s membership rights in the NBA, (ii) revenues to be paid to Knicks LLC by the NBA pursuant to certain U.S.

11 unchanged sentences

The Knicks Revolving Credit Facility requires Knicks LLC to comply with a debt service ratio of at least 1.5 :1.0 over a trailing four quarter period.

As of March 31, 2025, Knicks LLC was in compliance with this financial covenant.

As of September 30, 2025, Knicks LLC was in compliance with this financial covenant.

Rangers Revolving Credit Facility

On January 25, 2017, New York Rangers, LLC (“Rangers LLC”), a wholly owned subsidiary of the Company, entered into a credit agreement (the “2017 Rangers Credit Agreement”) with a syndicate of lenders providing for a senior secured revolving credit facility of up to $ 150,000 with a term of five years to fund working capital needs and for general corporate purposes.

On January 25, 2017, Rangers LLC, a wholly owned subsidiary of the Company, entered into a credit agreement (the “2017 Rangers Credit Agreement”) with a syndicate of lenders providing for a senior secured revolving credit facility of up to $ 150,000 with a term of five years to fund working capital needs and for general corporate purposes.

On November 6, 2020, the Company amended and restated the 2017 Rangers Credit Agreement in its entirety (the “2020 Rangers Credit Agreement”).

4 unchanged sentences

Amounts borrowed may be distributed to the Company except during an event of default.

All borrowings under the Rangers Revolving Credit Facility are subject to the satisfaction of certain customary conditions, including a representation as to the absence of a bankruptcy or insolvency event (as set forth in the Rangers Credit Agreement) with respect to the obligor (including MSG Networks) under any local media rights agreement.

All borrowings under the Rangers Revolving Credit Facility are subject to the satisfaction of certain customary conditions, including a representation as to the absence of a bankruptcy or insolvency event (as defined in the Rangers Credit Agreement) with respect to the obligor under any local media rights agreement.

Borrowings under the Rangers Revolving Credit Facility bear interest at a floating rate, which at the option of Rangers LLC may be either (i) a base rate plus a margin ranging from 0.500 % to 1.000 % per annum or (ii) term SOFR plus a credit spread adjustment of 0.100 % per annum plus a margin ranging from 1.500 % to 2.000 % per annum depending on the credit rating applicable to the NHL’s league-wide credit facility.

Rangers LLC is required to pay a commitment fee ranging from 0.375 % to 0.625 % per annum in respect of the average daily unused commitments under the Rangers Revolving Credit Facility.

There were no borrowings outstanding under the Rangers Revolving Credit Facility as of March 31, 2025 and the Company did not make any interest payments during the nine months ended March 31, 2025 in respect of the Rangers Revolving Credit Facility.

There were no borrowings under the Rangers Revolving Credit Facility as of September 30, 2025.

The Company did not make any interest payments in respect of the Rangers Revolving Credit Facility during the three months ended September 30, 2025 and 2024.

All obligations under the Rangers Revolving Credit Facility are, subject to the Rangers NHL Advance Agreement (as defined below), secured by a first lien security interest in certain of Rangers LLC’s assets, including, but not limited to, (i) Rangers LLC’s membership rights in the NHL, (ii) revenues to be paid to Rangers LLC by the NHL pursuant to certain U.S.

12 unchanged sentences

and (vi) taking certain actions that would invalidate the secured lenders’ liens on any of Rangers LLC’s assets securing the obligations under the Rangers Revolving Credit Facility.

The Rangers Credit Agreement includes an event of default upon a bankruptcy or insolvency event with respect to a material media rights counterparty, including MSG Networks.

The Rangers Credit Agreement includes an event of default that is implicated by a bankruptcy or insolvency event with respect to a material media rights counterparty, including MSG Networks.

The Rangers Revolving Credit Facility requires Rangers LLC to comply with a debt service ratio of at least 1.5 :1.0 over a trailing four quarter period.

As of March 31, 2025, Rangers LLC was in compliance with this financial covenant .

As of September 30, 2025, Rangers LLC was in compliance with this financial covenant .

Rangers NHL Advance Agreement

4 unchanged sentences

Advances received under the Rangers NHL Advance Agreement are payable upon demand by the NHL.

The advanced amount may be set off against funds that would otherwise be paid, distributed or transferred by the NHL to Rangers LLC.

During the nine months ended March 31, 2025, the Company made principal repayments of $ 6,000 under the Rangers NHL Advance Agreement .

The outstanding balance under the Rangers NHL Advance Agreement was $ 24,000 as of March 31, 2025 and was recorded as Debt in the accompanying consolidated balance sheet.

During the nine months ended March 31, 2025, the Company made interest p ayments of $ 688 in respect of the Rangers NHL Advance Agreement.

It is expected that the remaining advanced amount will be set off against funds that would otherwise be paid, distributed or transferred by the NHL to Rangers LLC.

The outstanding balance under the Rangers NHL Advance Agreement was $ 24,000 as of September 30, 2025 and was recorded as Debt in the accompanying consolidated balance sheet.

During the three months ended September 30, 2025 and 2024 , the Company made interest p ayments in respect of the Rangers NHL Advance Agreement of $ 180 and $ 225 , respectively.

Deferred Financing Costs

The following table summarizes deferred financing costs, net of amortization, related to the Company’s credit facilities as reported in the accompanying consolidated balance sheets:

September 30,

2025 June 30,

1 unchanged sentence

Other assets 234 520

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Benefit Plans

Defined Benefit Pension Plans

The Company sponsors the MSG Sports, LLC Excess Cash Balance Plan (the “Excess Cash Balance Plan”), an unfunded non-contributory, non-qualified excess cash balance plan and the MSG Sports, LLC Excess Retirement Plan, an unfunded non-contributory, non-qualified defined benefit pension plan for the benefit of certain employees (collectively referred to as the “Pension Plans”).

All benefits in the Company’s Pension Plans are frozen and participants are not able to earn benefits for future service under these plans, and no employee of the Company who was not already a participant as of the date the respective plan was frozen may become a participant in the Pension Plans.

Existing account balances under the Excess Cash Balance Plan are credited with monthly interest in accordance with the terms of the plan.

The following table presents components of net periodic benefit cost for the Pension Plans included in the accompanying consolidated statements of operations for the three and nine months ended March 31, 2025 and 2024.

Components of net periodic benefit cost are reported in Miscellaneous expense, net:

Three Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

Interest cost $ 63 $ 68 $ 189 $ 204

Recognized actuarial loss 21 10 61 28

Net periodic benefit cost $ 84 $ 78 $ 250 $ 232

Defined Contribution Plans

MSG Sports employees participate in The Madison Square Garden 401(k) Savings Plan (the “401(k) Plan”), which is a multiple employer plan sponsored by MSG Entertainment Holdings, LLC, a wholly owned subsidiary of MSG Entertainment.

In addition, the Company sponsors the MSG Sports LLC, Excess Savings Plan (the “Excess Savings Plan”), which provides non-qualified retirement benefits to eligible MSG Sports employees.

Expense related to the 401(k) Plan and Excess Savings Plan for the three and nine months ended March 31, 2025 was $ 1,500 and $ 4,027 , respectively, and $ 1,261 and $ 3,869 for the three and nine months ended March 31, 2024, respectively.

Executive Deferred Compensation Plan

See Note 14 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2024 for more information regarding the Company’s E xecutive Deferred Compensation Plan (the “Deferred Compensation Plan”).

The Company recorded (compensation cost credits)/compensation expense of $( 134 ) and $ 973 for the three and nine months ended March 31, 2025, respectively, and $ 821 and $ 1,556 for the three and nine months ended March 31, 2024, respectively, within Selling, general and administrative expenses to reflect the remeasurement of the Deferred Compensation Plan liability.

In addition, the Company recorded (losses)/gains of $( 134 ) and $ 973 for the three and nine months ended March 31, 2025, respectively, and $ 821 and $ 1,556 for the three and nine months ended March 31, 2024, respectively, within Miscellaneous expense, net to reflect t he remeasurement of the fair value of assets under the Deferred Compensation Plan.

The following table summarizes amounts recognized related to the Deferred Compensation Plan in the consolidated balance sheets:

2025 June 30,

Non-current assets (included in investments) $ 21,773 $ 18,837

Current liabilities (included in accrued employee related costs) ( 1,226 ) ( 1,233 )

Non-current liabilities (included in other employee related costs) ( 20,547 ) ( 17,604 )

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Share-based Compensation

1 unchanged sentence

Share-based compensation expense is recognized in the consolidated statements of operations as a component of Selling, general and administrative expenses.

Share-based compensation expense was $ 3,900 and $ 14,159 for the three and nine months ended March 31, 2025, respectively, and $ 7,350 and $ 18,069 for the three and nine months ended March 31, 2024, respectively.

There were no costs related to share-based compensation that were capitalized for the three and nine months ended March 31, 2025 and 2024.

Share-based compensation expense was $ 4,844 and $ 4,268 for the three months ended September 30, 2025 and 2024, respectively.

There were no costs related to share-based compensation that were capitalized for the three months ended September 30, 2025 and 2024.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Restricted Stock Units Award Activity

The following table summarizes activity related to the Company’s restricted stock units and performance restricted stock units, collectively referred to as “RSUs,” held by current and former employees of the Company and non-employee directors, for the nine months ended March 31, 2025:

Number of Weighted-Average

8 unchanged sentences

Forfeited / Cancelled ( 1 ) ( 1 ) $ 193.53

Unvested award balance, March 31, 2025 93 137 $ 184.48

Unvested award balance, September 30, 2025 94 128 $ 195.32

_____________________

(a) Weighted-average fair value per share at date of grant does not reflect any adjustments to awards granted prior to the Sphere Distribution.

The fair value of RSUs that vested during the nine months ended March 31, 2025 was $ 25,713 .

The fair value of RSUs that vested during the three months ended September 30, 2025 was $ 21,962 .

Upon delivery, RSUs granted under the Employee Stock Plan were net share-settled to cover the required statutory tax withholding obligations.

To fulfill the Company’s current and former employees’ required statutory tax withholding obligations for the applicable income and other employment taxes, 55 of these RSUs, with an aggregate value of $ 10,662 , inclusive of $ 24 related to the Company’s former employees (who vested in the Company’s RSUs), were retained by the Company and the taxes paid are reflected as a financing activity in the accompanying consolidated statement of cash flows for the nine months ended March 31, 2025.

The fair value of RSUs that vested during the nine months ended March 31, 2024 was $ 21,192 .

The weighted-average fair value per share at grant date of RSUs granted during the nine months ended March 31, 2024 was $ 177.62 .

To fulfill the Company’s current and former employees’ required statutory tax withholding obligations for the applicable income and other employment taxes, 42 of these RSUs, with an aggregate value of $ 8,770 , inclusive of $ 36 related to the Company’s former employees (who vested in the Company’s RSUs), were retained by the Company and the taxes paid are reflected as a financing activity in the accompanying consolidated statement of cash flows for the three months ended September 30, 2025.

The fair value of RSUs that vested during the three months ended September 30, 2024 was $ 21,227 .

The weighted-average fair value per share at grant date of RSUs granted during the three months ended September 30, 2024 was $ 205.31 .

Stock Options Award Activity

The following table summarizes activity related to the Company’s stock options for the nine months ended March 31, 2025:

The following table summarizes activity related to the Company’s stock options for the three months ended September 30, 2025:

Time Vesting Options Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value

2 unchanged sentences

Cancelled — $ —

Balance as of March 31, 2025 94 $ 138.78 2.71 $ 5,249

Exercisable as of March 31, 2025 94 $ 138.78 2.71 $ 5,249

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Balance as of September 30, 2025 94 $ 138.78 2.21 $ 8,277

Exercisable as of September 30, 2025 94 $ 138.78 2.21 $ 8,277

Stock Repurchase Program

2 unchanged sentences

The timing and amount of purchases will depend on market conditions and other factors.

During the nine months ended March 31, 2025 and 2024, the Company did not repurchase any shares under its share repurchase program.

As of March 31, 2025, the Company had $ 184,639 of availability remaining under its stock repurchase authorization .

During the three months ended September 30, 2025 and 2024, the Company did not repurchase any shares under its share repurchase program.

As of September 30, 2025, the Company had $ 184,639 of availability remaining under its stock repurchase authorization .

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Related Party Transactions

As of March 31, 2025, certain members of the Dolan family, including certain trusts for members of the Dolan family (collectively, the “Dolan Family Group”), for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, collectively beneficially owned 100 % of the Company’s outstanding Class B Common Stock, par value $ 0.01 per share (“Class B Common Stock”) and approximately 2.6 % of the Company’s outstanding Class A Common Stock.

Such shares of the Company’s Class A Common Stock and Class B Common Stock, collectively, represented approximately 70.7 % of the aggregate voting power of the Company’s outstanding common stock as of March 31, 2025.

As of September 30, 2025, certain members of the Dolan family, including certain trusts for the benefit of members of the Dolan family, for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, collectively beneficially owned 100 % of the Company’s outstanding Class B Common Stock, par value $ 0.01 per share (“Class B Common Stock”) and owned approximately 3.2 % of the Company’s outstanding Class A Common Stock.

Such shares of the Company’s Class A Common Stock and Class B Common Stock, collectively, represented approximately 70.8 % of the aggregate voting power of the Company’s outstanding common stock.

Members of the Dolan family are also the controlling stockholders of Sphere Entertainment, MSG Entertainment and AMC Networks Inc.

(“AMC Networks”).

The Company was party to the following agreements and/or arrangements with MSG Entertainment as of March 31, 2025:

• Arena license agreements, entered into in April 2020 (the “Arena License Agreements”), pursuant to which MSG Entertainment (i) provides the right to use The Garden for games of the Knicks and the Rangers for a 35-year term in exchange for arena license fees, (ii) shares revenues collected for suite and club licenses, (iii) operates and manages the sale of the sports teams’ merchandise at The Garden for a commission, (iv) operates and manages the sales of food and beverage concessions in exchange for 50 % of net profits from sales and catering services during Knicks and Rangers home games, (v) shares revenues collected for the sale of venue indoor signage space and sponsorship rights at The Garden that are not specific to our sports teams, (vi) provides day of game services, and (vii) provides other general services within The Garden;

• Sponsorship sales and service representation agreements (the “Sponsorship Sales and Service Representation Agreements”) pursuant to which MSG Entertainment has the exclusive right and obligation to sell the Company’s sponsorships for an initial stated term of 10 years for a commission.

The Company was party to the following agreements and/or arrangements with MSG Entertainment as of September 30, 2025:

• Arena license agreements, entered into in April 2020 (the “Arena License Agreements”), pursuant to which MSG Entertainment (i) provides the right to use The Garden for games of the Knicks and the Rangers for a 35-year term in exchange for arena license fees, (ii) shares revenues collected for suite and club licenses, (iii) operates and manages the sale of the sports teams’ merchandise at The Garden for a commission, (iv) operates and manages the sales of food and beverage concessions in exchange for 50 % of net profits from sales and catering services during Knicks and Rangers home games, (v) shares revenues collected for the sale of venue indoor signage space and sponsorship rights at The Garden that are not specific to our teams, (vi) provides day of game services, and (vii) provides other general services within The Garden;

• Sponsorship sales and service representation agreements, entered into in April 2020 (the “Sponsorship Sales and Service Representation Agreements”), pursuant to which MSG Entertainment has the exclusive right and obligation to sell the Company’s sponsorships for an initial stated term of 10 years for a commission.

In addition, under these agreements, the Company is charged by MSG Entertainment for sales and service staff and overhead associated with the sales of sponsorship assets;

• Team sponsorship allocation agreement with MSG Entertainment, pursuant to which the sports teams receive an allocation of sponsorship and signage revenues associated with sponsorship agreements that include the assets of both the Company and MSG Entertainment;

• Services agreement (the “Services Agreement”) pursuant to which the Company (i) receives certain services from MSG Entertainment, such as information technology, executive support, accounts payable, payroll, human resources, and other corporate functions, and communications, marketing and facilities-related services, in exchange for service fees and (ii) provides certain services to MSG Entertainment, such as certain communications services, in exchange for service fees;

• Team sponsorship allocation agreement with MSG Entertainment, pursuant to which the teams receive an allocation of certain sponsorship and signage revenues associated with sponsorship agreements that include the assets of the Company, MSG Entertainment, and Sphere Entertainment, based on the percentage of revenue each company earns relative to the total contract value;

• Arrangements pursuant to which the Company provides MSG Entertainment certain services associated with the management of ticketing, premium hospitality sales, sponsorship sales and other business operations services;

• The Sublease Agreement, pursuant to which the Company leases office space from MSG Entertainment;

• Group ticket sales representation agreement, pursuant to which MSG Entertainment appointed the Company as its sales and service representative to sell group ticket packages related to MSG Entertainment events in exchange for a commission and reimbursement for sales and service staff and overhead associated with ticket sales on behalf of MSG Entertainment;

• Single night rental commission agreement, pursuant to which the Company may, from time to time, sell (or make referrals for sales of) licenses for the use of suites at The Garden for individual MSG Entertainment events in exchange for a commission;

• Other agreements with MSG Entertainment entered into in connection with the Sphere Distribution, including a trademark license agreement and certain other arrangements.

The Company was also party to the following agreements and/or arrangements with Sphere Entertainment (including through its subsidiary MSG Networks) as of September 30, 2025 :

• Media rights agreements between the Company and MSG Networks, as amended in June 2025 and set to expire after the 2028-29 seasons, providing MSG Networks with local telecast rights for Knicks and Rangers games in exchange for media rights fees;

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

• Other agreements with MSG Entertainment entered into in connection with the Sphere Distribution, including a trademark license agreement and certain other arrangements.

The Company was also party to the following agreements and/or arrangements with Sphere Entertainment (including through its subsidiary MSG Networks) as of March 31, 2025 :

• Media rights agreements between the Company and MSG Networks, entered into in July 2015 with stated terms of 20 years, providing MSG Networks with local telecast rights for Knicks and Rangers games in exchange for media rights fees;

• An agreement with MSG Networks pursuant to which the Company was issued penny warrants exercisable for 19.9 % of the equity interests in MSG Networks, as further described in Note 9;

• Arrangements with MSG Networks pursuant to which the Knicks and the Rangers have allocated revenues with MSG Networks related to virtual advertising inventory;

2 unchanged sentences

• Other agreements with MSG Networks entered into in connection with the MSGS Distribution, including an employee matters agreement, agreements related to audio-only distribution rights for Knicks and Rangers games, and certain other arrangements.

On April 24, 2025, Knicks LLC and Rangers LLC (collectively, the “Teams”), entered into a Transaction Support Agreement (the “Transaction Support Agreement”) with respect to amendments to the media rights agreements between subsidiaries of MSG Networks and the Teams and the restructuring of the debt of subsidiaries of MSG Networks (the “Transactions”).

The Transaction Support Agreement contemplates entering into amendments to the media rights agreements to which the Teams are a party, effective as of January 1, 2025, as follows:

• New York Knicks:

◦ a reduction of 28 % in the annual rights fee;

◦ an elimination of the annual rights fee escalator;

◦ a change to the contract expiration date to the end of the 2028-29 season, subject to a right of first refusal in favor of MSG Networks;

• New York Rangers:

◦ a reduction of 18 % in the annual rights fee;

◦ an elimination of the annual rights fee escalator;

◦ a change to the contract expiration date to the end of the 2028-29 season, subject to a right of first refusal in favor of MSG Networks;

• the issuance by MSG Networks of penny warrants to the Company exercisable for 19.9 % of the equity interests in MSG Networks.

The Transactions will be consummated upon the execution of definitive documents containing terms consistent with those set forth in the Transaction Support Agreement.

Prior to April 1, 2024, the Company was also party to arrangements with MSG Entertainment and Sphere Entertainment pursuant to which the Company provided certain sponsorship services to MSG Entertainment and Sphere Entertainment in exchange for services fees.

The Company is also party to dry lease arrangements and time-sharing with MSG Entertainment in connection with aircraft leased by the Company and MSG Entertainment, respectively, as well as arrangements with MSG Entertainment and Sphere Entertainment pursuant to which the three companies have agreed to allocate expenses in connection with the use by each company of such aircraft.

The Company is also party to time-sharing and dry lease arrangements with MSG Entertainment in connection with aircraft leased by the Company and MSG Entertainment as well as arrangements with MSG Entertainment and Sphere Entertainment pursuant to which the three companies have agreed to allocate expenses in connection with the use by each company of such aircraft.

In addition, the Company shares certain executive support costs, including office space, executive assistants, security and transportation costs for:

(i) the Company’s Executive Chairman and Chief Executive Officer with MSG Entertainment and Sphere Entertainment, (ii) the Company’s Vice Chairman with MSG Entertainment, Sphere Entertainment, and AMC Networks, and (iii) the Company’s Executive Vice President with Sphere Entertainment and AMC Networks.

Additionally, the

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Company, MSG Entertainment, Sphere Entertainment, and AMC Networks allocate the costs of certain personal aircraft and helicopter usage by their shared executives.

(i) the Company’s Executive Chairman and Chief Executive Officer with Sphere Entertainment and MSG Entertainment, (ii) the Company’s Vice Chairman with AMC Networks, Sphere Entertainment and MSG Entertainment, and (iii) the Company’s Executive Vice President with Sphere Entertainment and AMC Networks.

Additionally, the Company, Sphere Entertainment, AMC Networks and MSG Entertainment allocate the costs of certain personal aircraft and helicopter usage by their shared executives.

Revenues and Operating Expenses (Credits)

The following table summarizes the composition and amounts of the transactions with the Company’s affiliates.

These amounts are reflected in revenues and operating expenses in the accompanying consolidated statements of operations for the three and nine months ended March 31, 2025 and 2024:

Three Months Ended March 31, Nine Months Ended March 31,

2025 2024 2025 2024

These amounts are reflected in revenues and operating expenses in the accompanying consolidated statements of operations for the three months ended September 30, 2025 and 2024:

Three Months Ended September 30,

$ 6,760 $ 8,904

8 unchanged sentences

(a) Primarily consist of local media rights recognized from the licensing of team-related programming under the media rights agreements covering the Knicks and the Rangers.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

In general, the Company is required to use an estimated annual effective tax rate to measure the tax benefit or tax expense recognized in an interim period.

The estimated annual effective tax rate exceeds the statutory federal tax rate of 21 % primarily due to state taxes, nondeductible officers’ compensation, and players’ disability insurance premiums expense.

The estimated annual effective tax rate is revised on a quarterly basis.

Income tax expense for the three and nine months ended March 31, 2025 of $ 36,857 and $ 30,507 , respectively, reflects an effective tax rate of 163 % and 310 %, respectively.

Income tax expense for the three and nine months ended March 31, 2024 of $ 34,018 and $ 29,658 , respectively, reflects an effective tax rate of 47 %.

During the nine months ended March 31, 2025, the Company made income tax payments, net of refunds, of $ 20,958 .

The Company was notified in March of 2025 that the State of New York was commencing an audit of the state income tax returns for the fiscal years ended June 30, 2022 and 2023.

The Company does not expect the examinations, when finalized, to result in material changes.

The Company had $ 35,963 and $ 15,775 of accrued federal and state income tax, recorded within other accrued liabilities in the accompanying consolidated balance sheets as of March 31, 2025 and June 30, 2024, respectively.

Income tax benefit for the three months ended September 30, 2025 of $ 8,555 reflects an effective tax rate of 49 %.

Income tax benefit for the three months ended September 30, 2024 of $ 7,048 reflects an effective tax rate of 48 %.

During the three months ended September 30, 2025 and 2024, the Company made income tax payments, net of refunds, of $ 11,836 and $ 10,280 , respectively.

The Company was notified in March 2025 that the State of New York was commencing an audit of the state income tax returns for the fiscal years ended June 30, 2022 and 2023.

The audit was finalized in July 2025 and resulted in no material changes.

On July 4, 2025, the Reconciliation Bill, commonly known as the “One Big Beautiful Bill Act” (the “OBBBA”), was enacted into law.

The OBBBA includes a broad range of tax reform provisions affecting businesses, including extending and modifying certain key Tax Cuts & Jobs Act provisions (both domestic and international), expanding certain Inflation Reduction Act incentives and accelerating the phase-out of others.

The Company evaluated these provisions and concluded the provisions did not have a material impact on the Company’s consolidated financial statements.

Additional Financial Information

The following table summarizes the composition and amounts of prepaid expenses included in the accompanying consolidated balance sheets as of September 30, 2025 and June 30, 2025:

September 30,

2025 June 30,

Prepaid employee-related costs $ 73,220 $ 34,850

Other prepaid expenses 29,280 8,567

Total prepaid expenses $ 102,500 $ 43,417

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Segment Information

The Company operates as one operating segment.

The Company’s CODM is its Executive Chairman and Chief Executive Officer, who reviews financial information presented on a consolidated basis.

The CODM uses consolidated net income (loss) to assess financial performance and allocate resources.

Consolidated net income (loss) is used by the CODM to make key operating decisions, such as entering into significant contracts, setting strategic objectives for the Company, and approving annual operating budgets, including approving significant investments in team personnel, and other key executive leadership positions.

The CODM does not review segment assets at a different asset level or category than those disclosed in the accompanying consolidated balance sheets.

The following table presents selected financial information with respect to the Company’s single operating segment for the three months ended September 30, 2025 and 2024:

Three Months Ended September 30,

$ 39,454 $ 53,307

Significant segment expenses:

Ticketing and sponsorship sales related expenses (a)

( 8,178 ) ( 8,515 )

Marketing & event-related expenses (b)

( 8,922 ) ( 8,151 )

Corporate & administrative (c)

( 26,395 ) ( 23,237 )

Operating lease expenses and other rental expenses associated with the Arena License Agreements (d)

( 1,345 ) ( 1,344 )

Team operating expenses (e)

( 13,009 ) ( 11,647 )

Other segment items (f)

( 8,219 ) ( 7,904 )

Depreciation and amortization ( 811 ) ( 782 )

Interest income 578 864

Interest expense ( 5,591 ) ( 6,055 )

Miscellaneous income (expense), net 15,085 ( 1,126 )

Income tax benefit 8,555 7,048

Net loss $ ( 8,798 ) $ ( 7,542 )

_________________

(a) Ticketing and sponsorship sales related expenses consist of (i) expenses related to selling tickets to our sports teams’ home games and primarily include employee compensation and related benefits, credit card fees, and other general and administrative expenses, and (ii) fees related to the Company’s Sponsorship Sales and Service Representation Agreements and sponsorship fulfillment costs.

See Note 15 for further details related to the Sponsorship Sales and Service Representation Agreements.

(b) Marketing & event-related expenses primarily relate to marketing and production expenses and services provided to the Company by MSG Entertainment pursuant to the Arena License Agreements.

(d) Operating lease expenses and other rental expenses associated with the Arena License Agreements primarily consist of operating lease costs, commercial rent tax, and other expenses associated with the Arena License Agreements.

See Note 15 for further details related to the Arena License Agreements.

(e) Team operating expenses primarily consist of team personnel compensation (net of escrow), NBA luxury tax, expenses associated with day-to-day team operations, including for travel and player insurance, and operating costs of the Company’s training center in Greenburgh, NY.

(f) Other segment items primarily consist of net provisions for league revenue sharing expense (excluding playoffs), league assessments, playoff related expenses, cost of goods sold and commission expense related to merchandise revenues, and share-based compensation expense.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements