What changed in this filing

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Item 1. Financial Statements

2026-05-08 compared with 2026-02-06 · 168 added, 149 removed, 616 unchanged (34% of the section changed)

7 unchanged sentences

Restricted cash — 8,571

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

Accounts receivable, net of allowance for doubtful accounts of $ 0 as of March 31, 2026 and June 30, 2025

76,563 25,855

3 unchanged sentences

Total current assets 295,556 251,095

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

Property and equipment, net of accumulated depreciation and amortization of $ 55,085 and $ 53,635 as of March 31, 2026 and June 30, 2025, respectively

27,917 28,962

32 unchanged sentences

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

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

19,547 and 19,488 shares outstanding as of March 31, 2026 and June 30, 2025, respectively

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

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

4,530 shares outstanding as of March 31, 2026 and June 30, 2025

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

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

none outstanding as of March 31, 2026 and June 30, 2025

Additional paid-in capital 13,211 15,348

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

Treasury stock, at cost, 908 and 960 shares as of March 31, 2026 and June 30, 2025, respectively

( 149,858 ) ( 158,543 )

7 unchanged sentences

(in thousands, except per share data)

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

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

2026 2025 2026 2025

6 unchanged sentences

Depreciation and amortization 790 823 2,391 2,396

Restructuring charges 1,244 — 1,244 —

Operating income (loss) 1,963 32,342 ( 3,282 ) 37,384

4 unchanged sentences

( 15,257 ) ( 9,712 ) ( 12,405 ) ( 27,535 )

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 )

(Loss) income before income taxes ( 13,294 ) 22,630 ( 15,687 ) 9,849

Income tax expense ( 6,689 ) ( 36,857 ) ( 4,851 ) ( 30,507 )

Net loss $ ( 19,983 ) $ ( 14,227 ) $ ( 20,538 ) $ ( 20,658 )

Basic loss per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ ( 0.83 ) $ ( 0.59 ) $ ( 0.85 ) $ ( 0.86 )

Diluted loss per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ ( 0.83 ) $ ( 0.59 ) $ ( 0.85 ) $ ( 0.86 )

Weighted-average number of common shares outstanding:

2 unchanged sentences

_________________

(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.

(a) Includes revenues from related parties of $ 62,238 and $ 67,704 for the three months ended March 31, 2026 and 2025, respectively, and $ 127,055 and $ 156,825 for the nine months ended March 31, 2026 and 2025, respectively.

(b) Includes net charges from related parties of $ 43,269 and $ 47,476 for the three months ended March 31, 2026 and 2025, respectively, and $ 90,874 and $ 88,528 for the nine months ended March 31, 2026 and 2025, respectively.

(c) Includes net charges from related parties of $ 22,458 and $ 22,439 for the three months ended March 31, 2026 and 2025, respectively, and $ 57,534 and $ 53,994 for the nine months ended March 31, 2026 and 2025, respectively.

See accompanying notes to consolidated financial statements.

MADISON SQUARE GARDEN SPORTS CORP.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(in thousands)

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

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

2026 2025 2026 2025

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

Net loss $ ( 19,983 ) $ ( 14,227 ) $ ( 20,538 ) $ ( 20,658 )

Other comprehensive income, before income taxes:

5 unchanged sentences

Other comprehensive income, net of income taxes — 14 3 41

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

Comprehensive loss $ ( 19,983 ) $ ( 14,213 ) $ ( 20,535 ) $ ( 20,617 )

See accompanying notes to consolidated financial statements.

2 unchanged sentences

(in thousands)

Six Months Ended December 31,

Nine Months Ended March 31,

Cash flows from operating activities:

Net loss $ ( 20,538 ) $ ( 20,658 )

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

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization 2,391 2,396

Benefit from deferred income taxes ( 1,824 ) ( 10,125 )

Deferred income taxes 4,063 ( 10,640 )

Share-based compensation expense 17,645 14,159

11 unchanged sentences

Operating lease right-of-use assets and lease liabilities 32,548 30,427

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

Net cash provided by operating activities 5,012 41,884

Cash flows from investing activities:

1 unchanged sentence

Purchases of investments ( 2,258 ) ( 2,101 )

Distribution from equity method investee 1,602 —

Net cash used in investing activities ( 2,027 ) ( 5,349 )

3 unchanged sentences

Payments for financing costs ( 5,065 ) —

Repayment of revolving credit facilities ( 25,000 ) ( 8,000 )

Repayment of NHL advance ( 7,500 ) ( 6,000 )

Net cash used in financing activities ( 49,134 ) ( 26,406 )

8 unchanged sentences

(in thousands)

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

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

2026 2025 2026 2025

12 unchanged sentences

Beginning Balance ( 138,175 ) ( 121,589 ) ( 137,596 ) ( 115,139 )

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

Net loss ( 19,983 ) ( 14,227 ) ( 20,538 ) ( 20,658 )

Dividends declared ($ 7.00 per share)

34 unchanged sentences

The accompanying unaudited consolidated interim financial statements (referred to as the “Financial Statements” herein) have been prepared in accordance with U.S.

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”).

generally accepted accounting principles (“GAAP”) and Article 10 of Regulation S-X of the Securities and Exchange Commission (the “SEC”) 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.

3 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.

Potential Spin-off Transaction

On February 18, 2026, the Company’s board of directors (the “Board of Directors”) authorized management to explore a potential spin-off that would separate the Company’s Rangers business (“SpinCo”) from its Knicks business, creating two distinct publicly traded companies.

If the Company proceeds with the spin-off transaction, the spin-off is expected to be structured as a tax-free distribution to all Company shareholders and upon completion of the contemplated separation, it is expected that record holders of Company Class A and Class B common stock would receive a pro-rata distribution of 100 % of the common stock in SpinCo.

The Company refers to the potential spin-off as the “Rangers Distribution”.

There can be no

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

assurance that the Rangers Distribution will be completed in the manner described above, or at all.

Completion of the Rangers Distribution would be subject to various conditions, including final approval by the Board of Directors, league approval, receipt of a tax opinion and the filing with the SEC and effectiveness of the Form 10 registration statement.

The Company will maintain the current operating structure and will continue to report the financial results of its Rangers business in continuing operations until the Rangers Distribution is completed.

Reclassifications

Accounting Policies

38 unchanged sentences

All revenue recognized in the consolidated statements of operations is considered to be revenue 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.

For the three and nine months ended March 31, 2026, the Company did not record any impairment losses on receivables or contract assets arising 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.

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 and six months ended December 31, 2025 and 2024:

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

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

2026 2025 2026 2025

8 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 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:

(b) Consists of (i) local media rights fees from MSG Networks and (ii) revenue from distributions through league-wide national and international media contracts.

On June 27, 2025, the local telecast 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:

6 unchanged sentences

◦ 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.

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

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.

4 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 December 31, 2025 and June 30, 2025:

December 31, June 30,

The following table provides information about contract balances from the Company’s contracts with customers as of March 31, 2026 and June 30, 2025:

March 31, June 30,

Receivables from contracts with customers, net (a)

1 unchanged sentence

Contract assets, current (b)

38,356 14,095

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

1 unchanged sentence

_________________

(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 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.

(a) Receivables from contracts with customers, net, which are reported in Accounts receivable, net, Other assets 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, 2026 and June 30, 2025, the Company’s receivables reported above included $ 2,374 and $ 0 , respectively, related to contracts with customers that are related parties.

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

2 unchanged sentences

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.

The Company had contract asset balances related to local media rights of $ 21,110 and $ 0 as of March 31, 2026 and June 30, 2025, respectively.

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

1 unchanged sentence

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 $ 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 six months ended December 31, 2025 relating to the deferred revenue balance as of July 1, 2025 was $ 86,572 .

(d) Revenue recognized for the nine months ended March 31, 2026 relating to the deferred revenue balance as of July 1, 2025 was $ 137,877 .

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 December 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 March 31, 2026.

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 media 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 telecast 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) $ 23,314

8 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 December 31, Six Months Ended December 31,

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

2026 2025 2026 2025

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

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

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

Net loss $ ( 19,983 ) $ ( 14,227 ) $ ( 20,538 ) $ ( 20,658 )

Dividends to other-than-common stockholders (a)

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

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

$ ( 19,983 ) $ ( 14,227 ) $ ( 20,562 ) $ ( 20,677 )

4 unchanged sentences

Weighted-average shares excluded from diluted EPS 97 62 78 73

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 )

Basic loss per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ ( 0.83 ) $ ( 0.59 ) $ ( 0.85 ) $ ( 0.86 )

Diluted loss per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ ( 0.83 ) $ ( 0.59 ) $ ( 0.85 ) $ ( 0.86 )

_________________

(a) Dividends to other-than-common stockholders consists of forfeitable rights to dividends declared and payable to holders of the Company’s unvested restricted stock units and performance restricted stock units.

Restructuring Charges

During the three and nine months ended March 31, 2026, the Company recorded restructuring charges related to termination benefits provided as part of a voluntary exit program the Company implemented during the three months ended March 31, 2026.

As a result, the Company recognized restructuring charges of $ 1,244 , which are recognized within accrued employee-related costs in the accompanying consolidated balance sheets.

There were no restructuring charges for the three and nine months ended March 31, 2025.

Restructuring Liability

June 30, 2025 $ —

Restructuring charges 1,244

March 31, 2026 $ 1,244

Team Personnel Transactions

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”).

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.

Direct operating expenses in the accompanying consolidated statements of operations includes 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 $ 4,704 and $ 7,086 for the three and nine months ended March 31, 2026, respectively.

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

MADISON SQUARE GARDEN SPORTS CORP.

3 unchanged sentences

2026 June 30,

2025 December 31,

2025 March 31,

Captions on the consolidated balance sheets:

5 unchanged sentences

_________________

(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).

(a) Restricted cash as of June 30, 2025 and March 31, 2025 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.

1 unchanged sentence

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 ending January 31, 2046.

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.

As of March 31, 2026, the Company’s exis ting operating leases, which are recorded in the accompanying financial statements, have remaining lease terms ranging from 6 to 29 years.

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

3 unchanged sentences

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,

The following table summarizes the right-of-use assets and lease liabilities recorded in the accompanying consolidated balance sheets as of March 31, 2026 and June 30, 2025:

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

2026 June 30,

9 unchanged sentences

_________________

(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.

(a) As of March 31, 2026, Operating lease liabilities, current and Operating lease liabilities, noncurrent included balances o f $ 50,407 and $ 826,060 , 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 six months ended December 31, 2025 and 2024:

The following table summarizes the activity recorded within the accompanying consolidated statements of operations for the three and nine months ended March 31, 2026 and 2025:

Line Item in the Company’s Consolidated

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

Statement of Operations Three Months Ended March 31, Nine Months Ended March 31,

2026 2025 2026 2025

5 unchanged sentences

Supplemental Information

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:

For the nine months ended March 31, 2026 and 2025, cash paid for amounts included in the measurement of lease liabilities was $ 40,002 and $ 39,172 , respectively.

For the nine months ended March 31, 2026, there were no non-cash additions to right-of-use assets and operating lease liabilities.

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, 2026 was 27.5 years.

The weighted average discount rate was 7.05 % as of March 31, 2026.

Maturities of operating lease liabilities as of March 31, 2026 were as follows:

Fiscal year ending June 30, 2026 (remainder) $ 14,367

11 unchanged sentences

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 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:

The carrying amount of goodwill as of March 31, 2026 and June 30, 2025 was $ 226,523 .

The Company’s indefinite-lived intangible assets as of March 31, 2026 and June 30, 2025 were as follows:

Sports franchises $ 102,564

17 unchanged sentences

_________________

(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.

(a) During the three and nine months ended March 31, 2026, the Company recorded other than temporary impairments of $ 0 and $ 2,073 , respectively, related to its other equity method investments in Miscellaneous (expense) income, net within the accompanying consolidated statements of operations.

During the three and nine months ended March 31, 2025, the Company did not record any impairments related to its other equity method investments.

(b) During the three and nine months ended March 31, 2026, 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 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) income, net within the accompanying consolidated statements of operations.

Equity Method Investments

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 %.

During the three and nine months ended March 31, 2026, the Company recognized its net share of income of $ 936 and $ 495 , respectively, in Miscellaneous (expense) income, net within the accompanying consolidated statements of operations.

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) income, net within the accompanying consolidated statements of operations.

As of March 31, 2026 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.

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.

In June 2025, the local telecast 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 local telecast 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.

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

During the three and nine months ended March 31, 2026, 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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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 $ 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 Company recorded (compensation cost credits)/compensation expense of $( 302 ) and $ 1,177 for the three and nine months ended March 31, 2026, respectively, and $( 134 ) and $ 973 for the three and nine months ended March 31, 2025, 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 (losses)/gains of $( 302 ) and $ 1,177 for the three and nine months ended March 31, 2026, respectively, and $( 134 ) and $ 973 for the three and nine months ended March 31, 2025, 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:

December 31, 2025 June 30, 2025

March 31, 2026 June 30, 2025

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

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Non-current liabilities (included in other employee-related costs) ( 23,236 ) ( 22,203 )

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,

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

2026 2025 2026 2025

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

Unrealized (loss) gain - Xtract One common stock $ ( 6,844 ) $ ( 3,387 ) $ 2,274 $ ( 7,103 )

Unrealized (loss) gain - other equity investments with readily determinable fair values ( 302 ) ( 319 ) 1,069 723

Realized gain - other equity investments with readily determinable fair values — 184 108 250

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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 December 31,

Fair Value Hierarchy March 31,

2026 June 30,

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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:

The following are key assumptions used to calculate the fair value of the warrants as of March 31, 2026 and June 30, 2025:

2026 June 30,

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

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

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

2026 2025 2026 2025

Balance at beginning of period $ 7,468 $ 3,838 $ 1,604 $ 6,995

Unrealized gains (losses) on warrants 153 ( 2,113 ) 5,864 ( 3,157 )

Unrealized (losses) gains on warrants ( 4,768 ) ( 1,934 ) 1,096 ( 5,091 )

Balance at end of period $ 2,700 $ 1,904 $ 2,700 $ 1,904

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

December 31, 2025 June 30, 2025

March 31, 2026 June 30, 2025

Value Carrying

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In addition, see Note 8 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 2025, other than activities in the ordinary course of business, except for the amendments to the Company’s credit facilities in November 2025 as discussed in Note 13.

Legal Matters

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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 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.

During the nine months ended March 31, 2026, the Company made principal repayments of $ 25,000 under the Knicks Revolving Credit Facility.

The outstanding balance under the Knicks Revolving Credit Facility was $ 242,000 as of March 31, 2026, 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, 2026 was 5.02 %.

During the nine months ended March 31, 2026 and 2025, the Company made interest payments in respect of the Knicks Revolving Credit Facility of $ 10,736 and $ 12,897 , 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.

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

As of March 31, 2026, Knicks LLC was in compliance with this financial covenant.

Rangers Revolving Credit Facility

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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 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.

There were no borrowings under the Rangers Revolving Credit Facility as of March 31, 2026.

The Company did not make any interest payments in respect of the Rangers Revolving Credit Facility during the nine months ended March 31, 2026 and 2025.

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.

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

As of March 31, 2026, Rangers LLC was in compliance with this financial covenant .

Rangers NHL Advance Agreement

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

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 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

During the nine months ended March 31, 2026 , the Company made a principal repayment of $ 7,500 under the Rangers NHL Advance Agreement.

The outstanding balance under the Rangers NHL Advance Agreement was $ 16,500 as of March 31, 2026 and was recorded as Debt in the accompanying consolidated balance sheet.

During the nine months ended March 31, 2026 and 2025 , the Company made interest p ayments in respect of the Rangers NHL Advance Agreement of $ 550 and $ 688 , respectively.

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

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_________________

(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

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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 $ 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.

Share-based compensation expense was $ 6,613 and $ 17,645 for the three and nine months ended March 31, 2026, respectively, and $ 3,900 and $ 14,159 for the three and nine months ended March 31, 2025, respectively.

There were no costs related to share-based compensation that were capitalized for the three and nine months ended March 31, 2026 and 2025.

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 six months ended December 31, 2025:

Number of Weighted-Average

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Forfeited / Cancelled ( 3 ) ( 3 ) $ 195.07

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

Unvested award balance, March 31, 2026 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 six months ended December 31, 2025 was $ 24,092 .

The fair value of RSUs that vested during the nine months ended March 31, 2026 was $ 24,569 .

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, 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 .

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

The weighted-average fair value per share at grant date of RSUs granted during the nine months ended March 31, 2025 was $ 207.94 .

MADISON SQUARE GARDEN SPORTS CORP.

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Stock Options Award Activity

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

The following table summarizes activity related to the Company’s stock options for the nine months ended March 31, 2026:

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

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Cancelled — $ —

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

Balance as of March 31, 2026 94 $ 138.78 1.71 $ 17,135

Exercisable as of March 31, 2026 94 $ 138.78 1.71 $ 17,135

Stock Repurchase Program

Effective as of October 1, 2015, the Company’s board of directors authorized the repurchase of up to $ 525,000 of the Company’s Class A Common Stock, par value $ 0.01 per share (“Class A Common Stock”).

Effective as of October 1, 2015, the Board of Directors authorized the repurchase of up to $ 525,000 of the Company’s Class A Common Stock, par value $ 0.01 per share (“Class A Common Stock”).

Under the authorization, shares of Class A Common Stock may be purchased from time to time in open market or private transactions, block trades or such other manner as the Company may determine, in accordance with applicable insider trading and other securities laws and regulations.

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

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 .

During the nine months ended March 31, 2026 and 2025, the Company did not repurchase any shares under its share repurchase program.

As of March 31, 2026, the Company had $ 184,639 of availability remaining under its stock repurchase authorization .

Related Party Transactions

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.

As of March 31, 2026, 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 3.0 % 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 December 31, 2025:

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

(formerly known as AMC Networks Inc., “AMC Global Media”).

The Company was party to the following agreements and/or arrangements with MSG Entertainment as of March 31, 2026:

• 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;

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• 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 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;

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, 2026 :

• Local telecast 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;

• 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 10;

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• 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.

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.

The Company is also party to time-sharing and dry lease arrangements with MSG Entertainment in connection with the 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 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.

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

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

MADISON SQUARE GARDEN SPORTS CORP.

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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 six months ended December 31, 2025 and 2024:

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

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, 2026 and 2025:

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

2026 2025 2026 2025

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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 by the impact of dividends received.

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

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.

However, at each interim period, the Company evaluates the reliability of this estimate.

The Company has recorded income tax expense for the current interim period using the actual effective tax rate for the year-to-date period.

This determination was primarily due to the significant impact of permanent differences relative to marginal pre-tax results.

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

Income tax expense for the three and nine months ended March 31, 2026 of $ 6,689 and $ 4,851 , respectively reflects an effective tax rate of ( 50 )% and ( 31 )%, respectively.

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.

During the nine months ended March 31, 2026 and 2025, the Company made income tax payments, net of refunds, of $ 15,174 and $ 20,958 , 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.

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Additional Financial Information

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:

The following table summarizes the composition and amounts of prepaid expenses included in the accompanying consolidated balance sheets as of March 31, 2026 and June 30, 2025:

2026 June 30,

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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 and six months ended December 31, 2025 and 2024:

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

The following table presents selected financial information with respect to the Company’s single operating segment for the three and nine months ended March 31, 2026 and 2025:

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

2026 2025 2026 2025

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( 242,930 ) ( 211,209 ) ( 471,574 ) ( 420,040 )

Other segment items (f)

( 62,930 ) ( 51,691 ) ( 71,149 ) ( 59,595 )

Depreciation and amortization ( 790 ) ( 823 ) ( 2,391 ) ( 2,396 )

Restructuring charges ( 1,244 ) — ( 1,244 ) —

Interest income 733 1,051 1,807 2,605

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Miscellaneous (expense) income, net ( 11,155 ) ( 5,743 ) 2,424 ( 13,478 )

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

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

Income tax expense ( 6,689 ) ( 36,857 ) ( 4,851 ) ( 30,507 )

Other segment items (f)

( 78,776 ) ( 65,106 ) ( 149,925 ) ( 124,701 )

Net loss $ ( 19,983 ) $ ( 14,227 ) $ ( 20,538 ) $ ( 20,658 )

_________________

(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.

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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