What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-02-06 compared with 2025-10-31 · 189 added, 158 removed, 576 unchanged (38% of the section changed)

3 unchanged sentences

(in thousands, except per share data)

September 30,

2025 June 30,

2 unchanged sentences

Restricted cash — 8,571

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

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

90,184 25,855

3 unchanged sentences

Total current assets 299,560 251,095

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

Property and equipment, net of accumulated depreciation and amortization of $ 54,294 and $ 53,635 as of December 31, 2025 and June 30, 2025, respectively

28,597 28,962

10 unchanged sentences

(in thousands, except per share data)

September 30,

2025 June 30,

20 unchanged sentences

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

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

19,540 and 19,488 shares outstanding as of December 31, 2025 and June 30, 2025, respectively

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

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

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

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

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

none outstanding as of December 31, 2025 and June 30, 2025

Additional paid-in capital 6,598 15,348

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

Treasury stock, at cost, 908 and 960 shares as of December 31, 2025 and June 30, 2025, respectively

( 149,858 ) ( 158,543 )

7 unchanged sentences

(in thousands, except per share data)

Three Months Ended September 30,

Three Months Ended December 31, Six Months Ended December 31,

2025 2024 2025 2024

$ 403,424 $ 357,759 $ 442,878 $ 411,066

Operating expenses:

Direct operating expenses (b)

311,389 275,753 319,668 283,964

Selling, general and administrative expenses (c)

1 unchanged sentence

Depreciation and amortization 790 791 1,601 1,573

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

Operating income (loss) 22,180 13,315 ( 5,245 ) 5,042

Other income (expense):

1 unchanged sentence

Interest expense ( 6,210 ) ( 5,587 ) ( 11,801 ) ( 11,642 )

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

Miscellaneous (expense) income, net ( 1,506 ) ( 6,609 ) 13,579 ( 7,735 )

( 7,220 ) ( 11,506 ) 2,852 ( 17,823 )

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 )

Income (loss) before income taxes 14,960 1,809 ( 2,393 ) ( 12,781 )

Income tax (expense) benefit ( 6,717 ) ( 698 ) 1,838 6,350

Net income (loss) $ 8,243 $ 1,111 $ ( 555 ) $ ( 6,431 )

Basic earnings (loss) per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ 0.34 $ 0.05 $ ( 0.02 ) $ ( 0.27 )

Diluted earnings (loss) per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ 0.34 $ 0.05 $ ( 0.02 ) $ ( 0.27 )

Weighted-average number of common shares outstanding:

2 unchanged sentences

_________________

(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.

(a) Includes revenues from related parties of $ 58,057 and $ 80,217 for the three months ended December 31, 2025 and 2024, respectively, and $ 64,817 and $ 89,121 for the six months ended December 31, 2025 and 2024, respectively.

(b) Includes net charges from related parties of $ 45,151 and $ 38,757 for the three months ended December 31, 2025 and 2024, respectively, and $ 47,605 and $ 41,052 for the six months ended December 31, 2025 and 2024, respectively.

(c) Includes net charges from related parties of $ 20,344 and $ 19,693 for the three months ended December 31, 2025 and 2024, respectively, and $ 35,076 and $ 31,555 for the six months ended December 31, 2025 and 2024, respectively.

See accompanying notes to consolidated financial statements.

MADISON SQUARE GARDEN SPORTS CORP.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in thousands)

Three Months Ended September 30,

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

Three Months Ended December 31, Six Months Ended December 31,

2025 2024 2025 2024

Net income (loss) $ 8,243 $ 1,111 $ ( 555 ) $ ( 6,431 )

Other comprehensive income, before income taxes:

5 unchanged sentences

Other comprehensive income, net of income taxes 2 13 3 27

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

Comprehensive income (loss) $ 8,245 $ 1,124 $ ( 552 ) $ ( 6,404 )

See accompanying notes to consolidated financial statements.

2 unchanged sentences

(in thousands)

Three Months Ended September 30,

Six Months Ended December 31,

Cash flows from operating activities:

Net loss $ ( 555 ) $ ( 6,431 )

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

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

Depreciation and amortization 1,601 1,573

13 unchanged sentences

Operating lease right-of-use assets and lease liabilities 12,699 6,062

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

Net cash (used in) provided by operating activities ( 52,509 ) 35,621

Cash flows from investing activities:

5 unchanged sentences

Taxes paid in lieu of shares issued for equity-based compensation ( 11,097 ) ( 11,773 )

Payments for financing costs ( 5,065 ) —

Net cash used in financing activities ( 16,634 ) ( 12,373 )

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

Net (decrease) increase in cash, cash equivalents and restricted cash ( 71,886 ) 20,946

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

6 unchanged sentences

(in thousands)

Three Months Ended September 30,

Three Months Ended December 31, Six Months Ended December 31,

2025 2024 2025 2024

Common Stock Issued $ 249 $ 249 $ 249 $ 249

11 unchanged sentences

Beginning Balance ( 146,410 ) ( 122,689 ) ( 137,596 ) ( 115,139 )

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

Net income (loss) 8,243 1,111 ( 555 ) ( 6,431 )

Dividends declared ($ 7.00 per share)

( 8 ) ( 11 ) ( 24 ) ( 19 )

Ending Balance ( 138,175 ) ( 121,589 ) ( 138,175 ) ( 121,589 )

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

For the three and six months ended December 31, 2025, the Company did not record any impairment losses on receivables or contract assets arising from contracts with customers.

For the three and six months ended December 31, 2024, the Company did not record any impairment losses on receivables arising from contracts with customers.

For the three and six months ended December 31, 2024, the Company recorded impairment losses of $ 109 on 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 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,

Three Months Ended December 31, Six Months Ended December 31,

2025 2024 2025 2024

Event-related (a)

1 unchanged sentence

Media rights (b)

122,345 126,902 127,445 134,255

Sponsorship, signage and suite licenses 98,450 79,413 103,105 84,601

21 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 September 30, 2025 and June 30, 2025:

September 30, June 30,

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

December 31, June 30,

Receivables from contracts with customers, net (a)

5 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 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.

As of December 31, 2025 and June 30, 2025, the Company’s receivables reported above included $ 3,392 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.

(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 asset balances related to local media rights of $ 337 and $ 0 as of December 31, 2025 and June 30, 2025, respectively.

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

(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.

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.

The Company’s deferred revenue related to local media rights was $ 1,375 and $ 0 as of December 31, 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 .

(d) Revenue recognized for the six months ended December 31, 2025 relating to the deferred revenue balance as of July 1, 2025 was $ 86,572 .

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 September 30, 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 December 31, 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.

10 unchanged sentences

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 )

Three Months Ended December 31, Six Months Ended December 31,

2025 2024 2025 2024

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

Net income (loss) $ 8,243 $ 1,111 $ ( 555 ) $ ( 6,431 )

Dividends to other-than-common stockholders (a)

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

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

$ 8,235 $ 1,100 $ ( 579 ) $ ( 6,450 )

4 unchanged sentences

Weighted-average shares excluded from diluted EPS — — 69 79

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 )

Basic earnings (loss) per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ 0.34 $ 0.05 $ ( 0.02 ) $ ( 0.27 )

Diluted earnings (loss) per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ 0.34 $ 0.05 $ ( 0.02 ) $ ( 0.27 )

_________________

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 provision of $ 2,382 and $ 833 for the three months ended September 30, 2025 and 2024, respectively.

There were no Team personnel transactions for the three months ended December 31, 2025.

Team personnel transactions were a net provision of $ 2,382 for the six months ended December 31, 2025.

Team personnel transactions were a net provision of $ 7,586 and $ 8,419 for the three and six months ended December 31, 2024, respectively.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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,

2025 September 30,

2025 December 31,

Captions on the consolidated balance sheets:

5 unchanged sentences

_________________

(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)

(a) Restricted cash as of June 30, 2025 and December 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, 2025 for more information).

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.

2 unchanged sentences

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.

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 three and six months ended 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 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.

As of December 31, 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.

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,

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 December 31, 2025 and June 30, 2025:

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

2025 June 30,

9 unchanged sentences

_________________

(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.

(a) As of December 31, 2025, Operating lease liabilities, current and Operating lease liabilities, noncurrent included balances o f $ 49,296 and $ 813,546 , 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 months ended September 30, 2025 and 2024:

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

Line Item in the Company’s Consolidated

Statement of Operations Three Months Ended September 30,

Statement of Operations Three Months Ended December 31, Six Months Ended December 31,

2025 2024 2025 2024

Operating lease costs Direct operating expenses $ 30,081 $ 26,781 $ 31,392 $ 28,092

Operating lease costs Selling, general and administrative expenses

3,693 1,962 7,386 4,433

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

Total lease cost $ 33,774 $ 32,714 $ 38,778 $ 36,496

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Supplemental Information

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:

For the six months ended December 31, 2025 and 2024, cash paid for amounts included in the measurement of lease liabilities was $ 26,078 and $ 26,463 , respectively.

For the six months ended December 31, 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 December 31, 2025 was 27.7 years.

The weighted average discount rate was 7.05 % as of December 31, 2025.

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

Fiscal year ending June 30, 2026 (remainder) $ 28,292

7 unchanged sentences

Total lease liabilities $ 896,889

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 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:

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

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

Sports franchises $ 102,564

1 unchanged sentence

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,

1 unchanged sentence

Hard Carry Gaming, Inc.

(“NRG”) $ 6,333 $ 6,607

(“HCG”) $ 6,166 $ 6,607

MSG Networks — —

Other equity method investments 4,332 4,421

Other equity method investments (a)

Equity investments with readily determinable fair values:

2 unchanged sentences

Other equity investments with readily determinable fair values held in trust under the Company’s Executive Deferred Compensation Plan 27,452 23,536

Equity investments without readily determinable fair values (a)

Equity investments without readily determinable fair values (b)

Derivative instruments:

2 unchanged sentences

_________________

(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.

(a) During the three and six months ended December 31, 2025, the Company recorded other than temporary impairments of $ 2,073 related to its other equity method investments in Miscellaneous (expense) income, net within the accompanying consolidated statements of operations.

During the three and six months ended December 31, 2024, the Company did not record any impairments related to its other equity method investments.

(b) During the three and six months ended December 31, 2025, 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.

During the three and six months ended December 31, 2024, the Company recorded impairment charges and reductions in carrying value resulting from observable price changes of $ 894 related to its equity securities without readily determinable fair values in Miscellaneous (expense) income, net within the accompanying consolidated statements of operations.

Equity Method Investments

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 %.

The Company holds preferred shares of the capital stock of HCG, an online video production company.

During the three and six months ended December 31, 2025, the Company recognized its net share of losses of $ 167 and $ 441 , respectively, in Miscellaneous (expense) income, net within the accompanying consolidated statements of operations.

During the three and six months ended December 31, 2024, the Company recognized its net share of losses of $ 286 and $ 516 , respectively, in Miscellaneous (expense) income, net within the accompanying consolidated statements of operations.

As of December 31, 2025 and June 30, 2025, the Company’s ownership in HCG was approximately 25 %.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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.

5 unchanged sentences

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.

During the three and six months ended December 31, 2025, the Company recognized no income or loss related to the MSG Networks equity method investment.

Equity Investments with Readily Determinable Fair Values

3 unchanged sentences

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

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 Company recorded compensation expense of $ 516 and $ 1,479 for the three and six months ended December 31, 2025, respectively, and $ 142 and $ 1,107 for the three and six months ended December 31, 2024, respectively, in Selling, general and administrative expenses within the accompanying consolidated statements of operations to reflect the remeasurement of the Deferred Compensation Plan liability.

In addition, the Company recorded gains of $ 516 and $ 1,479 for the three and six months ended December 31, 2025, respectively, and $ 142 and $ 1,107 for the three and six months ended December 31, 2024, respectively, in Miscellaneous (expense) income, net within the accompanying consolidated statements of operations to reflect the 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:

September 30, 2025 June 30, 2025

December 31, 2025 June 30, 2025

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

2 unchanged sentences

$ 29,937 $ 45,860 $ 26,984 $ 32,826

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

September 30,

2025 June 30,

2 unchanged sentences

Non-current liabilities (included in other employee-related costs) ( 26,019 ) ( 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,

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

Three Months Ended December 31, Six Months Ended December 31,

2025 2024 2025 2024

Unrealized gain (loss) - Xtract One common stock $ 292 $ ( 3,183 ) $ 9,118 $ ( 3,716 )

Unrealized gain - other equity investments with readily determinable fair values 408 77 1,371 1,042

Realized gain - other equity investments with readily determinable fair values 108 66 108 66

$ 808 $ ( 3,040 ) $ 10,597 $ ( 2,608 )

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Fair Value Measurements

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 September 30,

Fair Value Hierarchy December 31,

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 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 September 30, 2025 and June 30, 2025:

September 30,

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

The fair value of the Company’s warrants in Xtract One were

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

determined using the Black-Scholes option pricing model.

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

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 September 30,

Three Months Ended December 31, Six Months Ended December 31,

2025 2024 2025 2024

Balance at beginning of period $ 7,315 $ 5,951 $ 1,604 $ 6,995

1 unchanged sentence

Balance at end of period $ 7,468 $ 3,838 $ 7,468 $ 3,838

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

September 30, 2025 June 30, 2025

December 31, 2025 June 30, 2025

Value Carrying

17 unchanged sentences

Although the outcome of these lawsuits cannot be predicted with certainty (including the extent of available insurance, if any), management does not believe that resolution of these lawsuits will have a material adverse effect on the Company.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Knicks Revolving Credit Facility

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”).

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

On December 14, 2021, Knicks LLC entered into Amendment No.

2 to the 2020 Knicks Credit Agreement, which amended and restated the 2020 Knicks Credit Agreement (as amended and restated, the “2021 Knicks Credit Agreement”).

On November 6, 2025, Knicks LLC entered into Amendment No.

1 to the 2021 Knicks Credit Agreement, which amended and restated the 2021 Knicks Credit Agreement (as amended and restated, the “2025 Knicks Credit Agreement”).

The 2025 Knicks Credit Agreement provides for a senior secured revolving credit facility of up to $ 425,000 (the “Knicks Revolving Credit Facility”) to fund working capital needs and for general corporate purposes.

The maturity date of the Knicks Credit Agreement is December 14, 2026.

The maturity date of the 2025 Knicks Credit Agreement is November 6, 2030.

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 defined in the Knicks Credit Agreement) with respect to the obligor under any local media rights agreement.

All borrowings under the Knicks Revolving Credit Facility are subject to the satisfaction of certain customary conditions.

Borrowings under the 2025 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 0.375 % 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 1.375 % 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 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)

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.

The outstanding balance under the Knicks Revolving Credit Facility was $ 267,000 as of December 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 December 31, 2025 was 5.08 %.

During the six months ended December 31, 2025 and 2024, the Company made interest payments in respect of the Knicks Revolving Credit Facility of $ 7,477 and $ 9,029 , respectively.

In addition, on February 3, 2026, the Company made a principal repayment of $ 25,000 under the Knicks Revolving Credit Facility.

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

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

Rangers Revolving Credit Facility

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”).

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

On December 14, 2021, Rangers LLC entered into Amendment No.

3 to the 2020 Rangers Credit Agreement, which amended and restated the 2020 Rangers Credit Agreement (as amended and restated, the “2021 Rangers Credit Agreement”).

On November 6, 2025, Rangers LLC entered into Amendment No.

1 to the 2021 Rangers Credit Agreement, which amended the 2021 Rangers Credit Agreement (as amended, the “2025 Rangers Credit Agreement”).

The 2025 Rangers Credit Agreement provides for a senior secured revolving credit facility of up to $ 250,000 (the “Rangers Revolving Credit Facility”) to fund working capital needs and for general corporate purposes.

The maturity date of the Rangers Credit Agreement is December 14, 2026.

The maturity date of the 2025 Rangers Credit Agreement is November 6, 2030.

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 defined in the Rangers Credit Agreement) with respect to the obligor under any local media rights agreement.

All borrowings under the Rangers Revolving Credit Facility are subject to the satisfaction of certain customary conditions.

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 0.375 % to 0.625 % per annum or (ii) term SOFR plus a credit spread adjustment of 0.100 % per annum plus a margin ranging from 1.375 % to 1.625 % 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 0.350 % to 0.400 % per annum in respect of the average daily unused commitments under 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.

There were no borrowings under the Rangers Revolving Credit Facility as of December 31, 2025.

The Company did not make any interest payments in respect of the Rangers Revolving Credit Facility during the six months ended December 31, 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.

and Canadian national broadcast agreements, and (iii) revenues to be paid to Rangers LLC pursuant to local media contracts.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Subject to customary notice and minimum amount conditions, Rangers LLC may voluntarily prepay outstanding loans under the Rangers Revolving Credit Facility at any time, in whole or in part, without premium or penalty (except for customary breakage costs with respect to SOFR-based loans).

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

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

Rangers NHL Advance Agreement

5 unchanged sentences

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.

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

During the six months ended December 31, 2025 and 2024 , the Company made interest p ayments in respect of the Rangers NHL Advance Agreement

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

of $ 360 and $ 450 , respectively.

In addition, on January 5, 2026, the Company made a principal repayment of $ 7,500 under the Rangers NHL Advance Agreement.

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,

Other current assets $ 1,130 $ 1,145

Other assets 4,330 520

_________________

(a) In connection with the 2025 Knicks Revolving Credit Facility and 2025 Rangers Revolving Credit Facility, the Company incurred $ 5,065 in deferred financing costs during the six months ended December 31, 2025.

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 $ 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)

Share-based compensation expense was $ 6,188 and $ 11,032 for the three and six months ended December 31, 2025, respectively, and $ 5,991 and $ 10,259 for the three and six months ended December 31, 2024, respectively.

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

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 three months ended September 30, 2025:

Number of Weighted-Average

8 unchanged sentences

Forfeited / Cancelled ( 3 ) ( 3 ) $ 195.07

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

Unvested award balance, December 31, 2025 92 126 $ 195.30

_____________________

(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 three months ended September 30, 2025 was $ 21,962 .

The fair value of RSUs that vested during the six months ended December 31, 2025 was $ 24,092 .

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, 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 .

To fulfill the Company’s current and former employees’ required statutory tax withholding obligations for the applicable income and other employment taxes, 52 of these RSUs, with an aggregate value of $ 11,097 , 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 six months ended December 31, 2025.

The fair value of RSUs that vested during the six months ended December 31, 2024 was $ 23,527 .

The weighted-average fair value per share at grant date of RSUs granted during the six months ended December 31, 2024 was $ 207.95 .

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Stock Options Award Activity

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

The following table summarizes activity related to the Company’s stock options for the six months ended December 31, 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 September 30, 2025 94 $ 138.78 2.21 $ 8,277

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

Balance as of December 31, 2025 94 $ 138.78 1.96 $ 11,247

Exercisable as of December 31, 2025 94 $ 138.78 1.96 $ 11,247

Stock Repurchase Program

2 unchanged sentences

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

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)

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

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

Related Party Transactions

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.

As of December 31, 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 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.

1 unchanged sentence

(“AMC Networks”).

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

The Company was party to the following agreements and/or arrangements with MSG Entertainment as of December 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 teams, (vi) provides day of game services, and (vii) provides other general services within The Garden;

2 unchanged sentences

• 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;

• 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 and legal services, in exchange for service fees;

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

fees and (ii) provides certain services to MSG Entertainment, such as certain communications and legal services, in exchange for service fees;

• 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;

3 unchanged sentences

• 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 :

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

• 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;

7 unchanged sentences

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

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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 months ended September 30, 2025 and 2024:

Three Months Ended September 30,

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

Three Months Ended December 31, Six Months Ended December 31,

2025 2024 2025 2024

$ 58,057 $ 80,217 $ 64,817 $ 89,121

Operating expenses:

7 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, partially offset in the current period by the impact of dividends received.

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

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.

Income tax expense for the three months ended December 31, 2025 of $ 6,717 reflects an effective tax rate of 45 %.

Income tax benefit for the six months ended December 31, 2025 of $ 1,838 reflects an effective tax rate of 77 %.

Income tax expense for the three months ended December 31, 2024 of $ 698 reflects an effective tax rate of 39 %.

Income tax benefit for the six months ended December 31, 2024 of $ 6,350 reflects an effective tax rate of 50 %.

During the six months ended December 31, 2025 and 2024, the Company made income tax payments, net of refunds, of $ 15,143 and $ 17,831 , 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.

2 unchanged sentences

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.

The Company evaluated these provisions and concluded the provisions did not have a material impact on the accompanying 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,

The following table summarizes the composition and amounts of prepaid expenses included in the accompanying consolidated balance sheets as of December 31, 2025 and June 30, 2025:

2025 June 30,

10 unchanged sentences

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,

The following table presents selected financial information with respect to the Company’s single operating segment for the three and six months ended December 31, 2025 and 2024:

Three Months Ended December 31, Six Months Ended December 31,

2025 2024 2025 2024

$ 403,424 $ 357,759 $ 442,878 $ 411,066

Significant segment expenses:

14 unchanged sentences

Interest expense ( 6,210 ) ( 5,587 ) ( 11,801 ) ( 11,642 )

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

Income tax benefit 8,555 7,048

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

Miscellaneous (expense) income, net ( 1,506 ) ( 6,609 ) 13,579 ( 7,735 )

Income tax (expense) benefit ( 6,717 ) ( 698 ) 1,838 6,350

Net income (loss) $ 8,243 $ 1,111 $ ( 555 ) $ ( 6,431 )

_________________

8 unchanged sentences

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