What changed in this filing

/stocks — the workspaceLOADING

Item 7. Management’s Discussion and Analysis

2026-08-13 compared with 2025-08-12 · 176 added, 166 removed, 355 unchanged (49% of the section changed)

2 unchanged sentences

In this MD&A, there are statements concerning the future operating and future financial performance of Madison Square Garden Sports Corp.

and its direct and indirect subsidiaries (collectively, “we,” “us,” “our,” “MSG Sports,” or the “Company”) including stated annual local media rights fees for the year ending June 30, 2026.

and its direct and indirect subsidiaries (collectively, “we,” “us,” “our,” “MSG Sports,” or the “Company”) including the potential spin-off of the Company’s New York Rangers (“Rangers”) business (the “Rangers Distribution”) through the distribution of the common stock of MSGS Spinco, Inc.

See Note 1 to the consolidated financial statements included in Item 8 of this Annual Report on Form 10-K for further discussion of the Rangers Distribution.

Words such as “expects,” “anticipates,” “believes,” “estimates,” “may,” “will,” “should,” “could,” “potential,” “continue,” “intends,” “plans,” and similar words and terms used in the discussion of future operating and future financial performance identify forward-looking statements.

1 unchanged sentence

Factors that may cause such differences to occur include, but are not limited to:

• the level of our revenues, which depends in part on the popularity and competitiveness of our sports teams;

• the level of our revenues, which depends in part on the popularity and competitiveness of our sports teams and their ability to reach and advance in the playoffs;

• costs associated with player injuries, waivers or contract terminations of players, coaches and other team personnel;

• changes in professional sports teams’ compensation, including the impact of signing free agents and executing trades, subject to league salary caps and the impact of luxury tax;

• general economic conditions, especially in the New York City metropolitan area, including any economic downturn, recession, financial instability or inflation;

• changes in professional sports teams’ compensation, including the impact of signing free agents and executing trades, subject to league salary floors and caps and the impact of luxury tax;

• general economic conditions, especially in the New York City metropolitan area, including any economic downturn, recession, financial instability, impacts from government shutdowns or inflation;

• the demand for sponsorship arrangements and for advertising;

1 unchanged sentence

• changes in laws, National Basketball Association (“NBA”) or National Hockey League (“NHL”) rules, regulations, guidelines, bulletins, directives, policies and agreements, including the leagues’ respective collective bargaining agreements (each, a “CBA”) with their players’ associations, salary caps, escrow requirements, revenue sharing, NBA luxury tax thresholds and media rights, or other regulations under which we operate;

• developments affecting the regional sports network industry, including the effects of such developments on MSG Networks Inc.’s (“MSG Networks”) solvency and its ability to perform its obligations under its local media rights agreements with us;

• a default by our subsidiaries under their respective credit facilities;

1 unchanged sentence

• any economic, political or other actions, such as boycotts, protests, work stoppages or campaigns by labor organizations;

• geopolitical risks, including the risks of foreign wars and conflicts, including the conflict with Iran and related unrest in the Middle East, on international, domestic and local economies;

• the performance by our affiliates of their obligations under various agreements with the Company;

3 unchanged sentences

• our ability to successfully integrate acquisitions or new businesses into our operations and the operating and financial performance of strategic acquisitions and investments, including those we may not control;

• a pandemic or another public health emergency, including a resurgence of the COVID-19 pandemic, and our ability to effectively manage the impacts, including labor market disruptions;

• activities or other developments that discourage or may discourage congregation at prominent places of public assembly, including Madison Square Garden Arena (“The Garden”) where the home games of the New York Knickerbockers (the “Knicks”) and the New York Rangers (the “Rangers”) are played;

• the impact of governmental regulations or laws, changes in how those regulations and laws are interpreted and the continued benefit of certain tax exemptions (including for The Garden) and the ability for us and Madison Square Garden Entertainment Corp.

• a pandemic or another public health emergency and our ability to effectively manage the impacts, including labor market disruptions;

• actual or threatened activities or other developments that discourage or may discourage congregation at prominent places of public assembly, including Madison Square Garden Arena (“The Garden”) where the home games of the New York Knickerbockers (the “Knicks”) and the Rangers are played;

• the impact of governmental regulations or laws, changes in how those regulations and laws are interpreted and the continued benefit of certain tax exemptions (including for The Garden) or tax deductions and the ability for us and Madison Square Garden Entertainment Corp.

(“MSG Entertainment”) to maintain necessary permits or licenses;

5 unchanged sentences

• certain restrictions on transfer and ownership of our common stock related to our ownership of professional sports franchises in the NBA and NHL;

• whether or not we complete the Rangers Distribution and, if so, its impacts on our business, financial condition and results of operations;

• the tax-free treatment of the Rangers Distribution and the performance by the Company and Spinco of their obligations under transition services and other agreements expected to be entered into in connection with the Rangers Distribution;

• the factors described under “Part I — Item 1A.

9 unchanged sentences

Unless the context otherwise requires, all references to MSG Entertainment, Sphere Entertainment and MSG Networks (a wholly-owned subsidiary of Sphere Entertainment) refer to such entity, together with its direct and indirect subsidiaries.

MD&A is provided as a supplement to, and should be read in conjunction with, the audited consolidated financial statements and footnotes thereto included in Item 8 of this Annual Report on Form 10-K to help provide an understanding of our financial condition, changes in financial condition and results of operations .

This MD&A is provided as a supplement to, and should be read in conjunction with, the audited consolidated financial statements and footnotes thereto included in Item 8 of this Annual Report on Form 10-K to help provide an understanding of our financial condition, changes in financial condition and results of operations .

In this MD&A, the years ended on June 30, 2026, 2025 and 2024 are referred to as “fiscal year 2026” and “fiscal year 2025”, and “fiscal year 2024”, respectively.

Our MD&A is organized as follows:

2 unchanged sentences

Results of Operations.

This section provides an analysis of our results of operations for the years ended June 30, 2025 and 2024.

For the comparison of our results of operations for the years ended June 30, 2024 and 2023, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our 2024 Annual Report on Form 10-K, filed with the Securities and Exchange Commission on August 13, 2024.

This section provides an analysis of our results of operations for fiscal years 2026 and 2025.

For the comparison of our results of operations for fiscal years 2025 and 2024, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our 2025 Annual Report on Form 10-K, filed with the Securities and Exchange Commission on August 12, 2025.

Liquidity and Capital Resources.

This section provides a discussion of our financial condition, as well as an analysis of our cash flows for the years ended June 30, 2025 and 2024 .

The discussion of our financial condition and liquidity includes summaries of (i) our primary sources of liquidity and (ii) our contractual obligations and off-balance sheet arrangements that existed as of June 30, 2025.

This section provides a discussion of our financial condition and liquidity, as well as an analysis of our cash flows for fiscal years 2026 and 2025 .

The discussion of our financial condition and liquidity includes summaries of our primary sources of liquidity and our contractual obligations and off-balance sheet arrangements that existed

as of June 30, 2026.

Seasonality of Our Business.

This section discusses the seasonal performance of the Company .

Recently Issued Accounting Pronouncements and Critical Accounting Policies.

Recently Issued Accounting Pronouncements and Critical Accounting Estimates.

This section includes a discussion of accounting policies considered to be important to our financial condition and results of operations and which require significant judgment and estimates on the part of management in their application .

In addition, all of our significant accounting policies, including our critical accounting policies, are discussed in the notes to our consolidated financial statements included in Item 8 of this Annual Report on Form 10-K.

In addition, all of our significant accounting policies, including our critical accounting policies and estimates and recently issued accounting pronouncements, are discussed in the notes to our consolidated financial statements included in Item 8 of this Annual Report on Form 10-K.

Business Overview

1 unchanged sentence

Both the Knicks and the Rangers play their home games at The Garden.

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

Our professional sports franchises are collectively referred to herein as “our sports teams” or the “teams.” In addition, the Company previously owned a controlling interest in Counter Logic Gaming (“CLG”), a North American esports organization.

In April 2023, the Company sold its controlling interest in CLG to Hard Carry Gaming Inc.

(“NRG”), a professional gaming and entertainment company, in exchange for a noncontrolling equity interest in the combined NRG/CLG company.

The Company also operates a professional sports team performance center — the Madison Square Garden Training Center in Greenburgh, NY.

The Company also includes two development league teams — the Hartford Wolf Pack of the American Hockey League and the Westchester Knicks of the NBA G League.

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

Revenue Sources

We earn revenue from several primary sources:

ticket sales and a portion of suite rental fees at The Garden, our share of distributions from NHL and NBA league-wide national and international television contracts and other league-wide revenue sources, sponsorships and signage, food and beverage sales at The Garden and merchandising .

ticket sales and a portion of suite rental fees at The Garden, our share of distributions from NHL and NBA league-wide national and international media contracts and other league-wide revenue sources, sponsorships and signage, food and beverage sales at The Garden and merchandising .

We also earn substantial fees from MSG Networks for the local media rights to telecast the games of our sports teams .

13 unchanged sentences

We earn revenue from the licensing of media rights for our sports teams’ home and away games and also through the receipt of our share of fees paid for league-wide media rights, which are awarded under contracts negotiated and administered by each league.

The Company and MSG Networks are parties to media rights agreements covering the local telecast rights for the Knicks and the Rangers .

On June 27, 2025, our sports teams and MSG Networks entered into amendments with respect to the media rights agreements.

See “— Factors Affecting Operating Results — Amendments to Media Rights Agreements” for more information.

The Company and MSG Networks are parties to local telecast rights agreements covering the local telecast rights for the Knicks and the Rangers .

On June 27, 2025, our sports teams and MSG Networks entered into amendments with respect to the local telecast rights agreements.

See “— Factors Affecting Operating Results — Amendments to Local Telecast Rights Agreements” for more information.

National and international telecast arrangements differ by league .

2 unchanged sentences

We earn revenue through the sale of suite and premium club licenses at The Garden, which are generally sold by MSG Entertainment to corporate customers via multi-year licenses.

Under standard licenses, the licensees pay an annual license fee, which varies depending on the location and type of the suite or club.

The license fee includes, for each seat in the suite or club, tickets for our home games and other events at The Garden that are presented by MSG Entertainment for which tickets are sold to the general public, subject to certain exceptions.

Under standard licenses, the licensee pays an annual license fee, which varies depending on the location and type of the suite or club.

The license fee includes, for each seat in the suite or club,

tickets for our home games and other events at The Garden that are presented by MSG Entertainment for which tickets are sold to the general public, subject to certain exceptions.

In addition, suite holders separately pay for food and beverage service in their suites at The Garden.

1 unchanged sentence

Because suite and club licenses cover both our games and events that MSG Entertainment presents at The Garden, suite and club rental revenue is shared between us and MSG Entertainment under the Arena License Agreements (as defined below).

Pursuant to the Arena Licenses Agreements, the Knicks and the Rangers are entitled to 35% and 32.5%, respectively, of the revenues received by MSG Entertainment in connection with suite and club licenses.

Pursuant to the Arena License Agreements, the Knicks and the Rangers are entitled to 35 % and 32.5 %, respectively, of the revenues received by MSG Entertainment in connection with suite and club licenses.

Sponsorships and Signage

We earn revenues through the sale of sponsorships and signage specific to the teams .

We earn revenue through the sale of sponsorships and signage specific to the teams .

Sales of team specific signage generally involve the sale of advertising space within The Garden during our sports teams’ home games and include the sale of signage on the ice and on the boards of the hockey rink during Rangers games, courtside during Knicks games, and/or on the various scoreboards and display panels at The Garden, as well as virtual signage during Knicks and Rangers broadcasts .

1 unchanged sentence

We also earn a portion of revenues through MSG Entertainment’s sale of venue indoor signage space and sponsorship rights at The Garden that are not specific to our teams pursuant to the Arena License Agreements.

Under the Arena License Agreements, the Knicks and the Rangers are entitled to 25% and 22.5% of revenue from certain shared arena sponsorship assets, respectively, and 20% and 17.5% of revenue from any arena naming rights, respectively.

Sponsorship rights generally require the use of the name, logos and other trademarks of a sponsor in the advertising and in promotions for The Garden in general or our teams specifically during our sports events .

1 unchanged sentence

Food, Beverage and Merchandise Sales

We earn revenues from the sale of food and beverages during our sports teams’ games at The Garden .

We earn revenue from the sale of food and beverages during our sports teams’ games at The Garden .

In addition to concession-style sales of food and beverages, which represent the majority of food and beverage revenues, The Garden also provides higher-end dining at premium clubs as well as catering for suites.

2 unchanged sentences

Pursuant to the Arena License Agreements, the Knicks and the Rangers pay MSG Entertainment a commission equal to 30% of revenues from the sales of their merchandise at The Garden.

Amounts collected for ticket sales, media rights, suite licenses and clubs, sponsorships, and venue signage in advance the Company’s satisfaction of its contractual performance obligations are recorded as deferred revenue and are recognized as revenues when earned.

The most significant expenses are player and other team personnel salaries.

Amounts collected for ticket sales, media rights, suite licenses and clubs, sponsorships, and venue signage in advance of the Company’s satisfaction of its contractual performance obligations are recorded as deferred revenue and are recognized as revenues when earned.

Our most significant expenses are player and other team personnel salaries.

We also incur costs for travel, player insurance, league operating assessments (including a 6% NBA assessment on regular season ticket sales), NBA and NHL revenue sharing, NBA luxury tax, when applicable, and charges for transactions relating to players for career-ending and season-ending injuries, trades, and waivers and contract termination costs of players and other team personnel, including coaches and team executives.

1 unchanged sentence

The Arena License Agreements provide for fixed payments to be made from inception through June 30, 2055 in 12 equal installments during each year of the contractual term.

The contracted license fee for the first full contract year ending June 30, 2021 was approximately $22,500 for the Knicks and approximately $16,700 for the Rangers, and then for each subsequent year, the license fees are 103% of the license fees for the immediately preceding contract year.

The contracted license fee for the first full contract year ended June 30, 2021 was approximately $22,500 for the Knicks and approximately $16,700 for the Rangers, and then for each subsequent year, the license fees are 103% of the license fees for the immediately preceding contract year.

Recognition of operating lease costs is recorded on a straight-line basis over the term of the applicable agreement based upon the value of total future payments under the arrangement.

Operating lease costs associated with the Knicks and the Rangers playing home games at The Garden includes operating lease costs of (i) $44,052 and $42,769 of expense paid in cash for the years ended June 30, 2025 and 2024, respectively, and (ii) a non-cash expense of $23,566 and $24,850 for the years ended June 30, 2025 and 2024, respectively.

Operating lease costs associated with the Knicks and the Rangers playing home games at The Garden includes operating lease costs of (i) $45,374 and $44,052 of expense paid in cash for fiscal years 2026 and 2025, respectively, and (ii) a non-cash expense of $22,245 and $23,566 for fiscal years 2026 and 2025, respectively.

Player Salaries, Escrow System/Revenue Sharing and NBA Luxury Tax

3 unchanged sentences

The new NBA CBA expires after the 2029-30 season, but each of the NBA and the NBPA has the right to terminate the CBA effective following the 2028-29 season.

The new CBA includes certain changes to certain league rules and regulations, including revised luxury tax rates which will become effective with the 2025-26 season.

The new CBA includes certain changes to certain league rules and regulations, including revised luxury tax rates which became effective with the 2025-26 season.

The NBA CBA contains a salary floor (i.e., a floor on each team’s aggregate player salaries with a requirement that the team pay any deficiency to the players on its roster) and a “soft” salary cap (i.e., a cap on each team’s aggregate player salaries but with certain exceptions that enable teams to pay players more, sometimes substantially more, than the cap).

1 unchanged sentence

Amounts in this paragraph are in thousands, except for luxury tax rates.

The NBA CBA generally provides for a luxury tax that is applicable to all teams with aggregate player salaries exceeding a threshold that is set prior to each season based upon projected league-wide revenues (as defined under the NBA CBA), with the amount of luxury tax owed determined based on that season’s luxury tax bracket and tax rates.

The luxury tax bracket for the 2024-25 season was $5,168 and the luxury tax bracket for subsequent seasons will increase annually at the same rate as the NBA salary cap.

Through the 2024-25 season, luxury tax rates for teams with aggregate player salaries above such threshold start at $1.50 for each $1.00 of team salary exceeding the threshold by 0% - 100% of the luxury tax bracket and scale up to $3.25 for each $1.00 of team salary exceeding the threshold by 300% - 400% of the luxury tax bracket.

An additional tax rate increment of $0.50 applies for each additional 100% of the luxury tax bracket of each $1.00 of team salary exceeding the threshold by greater than 400% of the luxury tax bracket.

In addition, through the 2024-25 season, for teams that are taxpayers in at least three of four previous seasons, the above tax rates are increased by $1.00 for each increment.

The amount of luxury tax owed is determined based upon the amount of aggregate player salaries exceeding the season’s luxury tax threshold and tax rates based upon that season’s luxury tax bracket.

The luxury tax brackets for the 2024-25 and 2025-26 seasons were $5,168 and $5,685, respectively, and the luxury tax bracket for subsequent seasons will increase annually at the same rate as the NBA salary cap.

Through the 2024-25 season, luxury tax rates for teams with aggregate player salaries above such threshold started at $1.50 for each $1.00 of team salary exceeding the threshold by 0% - 100% of the luxury tax bracket and scaled up to $3.25 for each $1.00 of team salary exceeding the threshold by 300% - 400% of the luxury tax bracket.

An additional tax rate increment of $0.50 applied for each additional 100% of the luxury tax bracket of each $1.00 of team salary exceeding the threshold by greater than 400% of the luxury tax bracket.

In addition, through the 2024-25 season, for teams that were taxpayers in at least three of four previous seasons, the above tax rates were increased by $1.00 for each increment.

Beginning with the 2025-26 season, luxury tax rates for teams with aggregate player salaries above such threshold start at $1.00 for each $1.00 of team salary exceeding the threshold by 0% - 100% of the luxury tax bracket and scale up to $4.75 for each $1.00 of team salary exceeding the threshold by 300% - 400% of the luxury tax bracket.

2 unchanged sentences

Fifty percent of the aggregate luxury tax payments is a funding source for the revenue sharing plan (described below) and the remaining 50% of such payments is distributed in equal shares to non-taxpaying teams.

For the 2024-25 season, the Knicks were a luxury tax payer and we recorded luxury tax expense of $38,035 for the year ended June 30, 2025.

For the 2023-24 season, the Knicks were not a luxury tax payer and we recorded $11,968 of luxury tax proceeds from tax-paying teams for the year ended June 30, 2024.

For the 2025-26 and 2024-25 seasons, the Knicks were a luxury tax payer and we recorded luxury tax expense of $44,437 and $38,035, respectively, for fiscal years 2026 and 2025.

For the 2023-24 season, the Knicks were not a luxury tax payer and we recorded $11,968 of luxury tax proceeds from tax-paying teams for fiscal year 2024.

Tax obligations for years beyond the 2025-26 season will be subject to contractual player payroll obligations and corresponding NBA luxury tax thresholds.

11 unchanged sentences

and collective league sources, if necessary.

Additional amounts may also be distributed on a discretionary basis, funded by assessments on playoff ticket revenues and through collective league sources and are recorded as revenues from league distributions.

Our net provisions for revenue sharing, net of escrow, for the year ended June 30, 2025 was approximately $37,904.

Additional amounts may

also be distributed on a discretionary basis, funded by assessments on playoff ticket revenues and through collective league sources and are recorded as revenues from league distributions.

Our net provisions for revenue sharing, net of escrow, for fiscal year 2026 were approximately $66,065.

The actual amounts for the 2025-26 season may vary significantly from the recorded provision based on actual operating results for the league and all NBA teams for the season and other factors.

The current NHL CBA expires on September 15, 2026 (with the possibility of a one-year extension in certain circumstances).

On July 8, 2025, the NHL and the National Hockey League Players’ Association (“NHLPA”) announced that a new four-year CBA had been ratified by the NHL Board of Governors and the NHL players.

The new NHL CBA expires after

the 2029-30 season.

The NHL CBA provides for a salary floor (i.e., a floor on each team’s aggregate player salaries) and a “hard” salary cap (i.e., teams may not exceed a stated maximum, which is adjusted each season based upon league-wide revenues).

The current NHL CBA was scheduled to expire on September 15, 2026.

On July 8, 2025, the NHL and the National Hockey League Players’ Association announced that a new four-year CBA had been ratified by the NHL Board of Governors and the NHL players.

The new NHL CBA will be effective on September 15, 2026 and expires after the 2029-30 season.

The NHL CBA provides for a salary floor (i.e., a floor on each team’s aggregate player salaries) and a “hard” salary cap (i.e., teams may not exceed a stated maximum), which are adjusted each season based upon league-wide revenues.

NHL Escrow System/Revenue Sharing.

The NHL CBA provides that each season the players receive as player compensation 50% of that season’s league-wide revenues.

The NHL CBA, applicable prior to the 2026-27 season, provides that each season the NHL players in the aggregate receive as player compensation 50% of that season’s league-wide revenues.

Because the aggregate amount to be paid to the players is based upon league-wide revenues and not on a team-by-team basis, the Company may pay its players a higher or lower percentage of the Rangers’ revenues than other NHL teams pay of their own revenues.

In order to implement the escrow system, NHL teams withhold a portion of each player’s salary and contribute the withheld amounts to an escrow account .

In order to implement the escrow system, NHL teams may withhold a portion of each player’s salary and contribute the withheld amounts to an escrow account.

If the league’s aggregate player compensation for a season exceeds the designated percentage (50%) of that season’s league-wide revenues, the excess is retained by the league.

2 unchanged sentences

If annual escrow deductions from player salaries are insufficient to limit league-wide player salaries to 50% of that season’s league-wide revenues, any shortfall will be carried forward to future seasons and remain due from the players to the league.

If the league’s aggregate player compensation for a season is less than the designated percentage (50%) of that season’s league-wide revenues, the deficiency is collected from the teams and distributed to the players.

The NHL CBA also provides for a revenue sharing plan.

3 unchanged sentences

and (c) the remainder from centrally-generated NHL sources .

Our net provisions for revenue sharing, net of escrow, for the year ended June 30, 2025 was approximately $43,828.

The actual amounts for the 2024-25 season may vary significantly from the recorded provision based on actual operating results for the league and all NHL teams for the season and other factors.

The new NHL CBA includes certain changes to league rules and regulations, including replacing one preseason home game with a regular season home game, and changes to the revenue sharing plan which, beginning with the 2026-27 season, will be funded as follows:

Our net provisions for revenue sharing, net of escrow, for fiscal years 2026 and 2025 were approximately $43,530 and $43,828, respectively.

The actual amounts for the 2025-26 and 2024-25 seasons may vary significantly from the recorded provision based on actual operating results for the league and all NHL teams for the season and other factors.

The Rangers are consistently among the top ten revenue earning teams and, accordingly, have consistently contributed to the top ten revenue earning teams component of the plan.

The new NHL CBA, which is applicable starting with the 2026-27 season, includes certain changes to league rules and regulations, including replacing one preseason home game with a regular season home game, and changes to the revenue sharing plan which, beginning with the 2026-27 season, will be funded as follows:

(a) 50% from contributions by the top eleven revenue earning teams (based on preseason and regular season revenues, net of arena costs) in accordance with a formula;

1 unchanged sentence

and (c) the remainder from centrally-generated NHL sources.

The Rangers are consistently among the top eleven revenue earning teams and, accordingly, are expected to contribute to the top eleven revenue earning teams component of the plan.

Other Team Operating Expenses

Our teams also pay expenses associated with day-to-day operations, including for travel, equipment maintenance and player insurance.

Direct variable day-of-event costs incurred at The Garden, such as the costs of front-of-house and back-of-house staff, including electricians, laborers, box office staff, ushers, security, and event production, are charged to the Company.

In addition, our team operating expenses include operating costs of the Company’s training center in Greenburgh, NY.

The operation of the Hartford Wolf Pack is reported as a net Rangers player development expense.

As members of the NBA and NHL, the Knicks and the Rangers, respectively, are also subject to league assessments.

As members of the NBA and NHL, the Knicks and the Rangers, respectively, are also subject to league assessments, which include costs incurred by the NBA and NHL to operate each league.

The governing bodies of each league determine the amount of each season’s league assessments that are required from each member team.

The NBA imposes on each team a 6% assessment on regular season ticket revenue.

We also incur costs associated with VIP amenities provided to certain ticket holders.

Other Expenses

Other expenses primarily include Selling, general and administrative expenses that consist of (i) administrative costs, including compensation, costs under the Company’s services agreement with MSG Entertainment, operating lease costs and professional fees, (ii) fees related to the Company’s Sponsorship Sales and Service Representation Agreements (as defined below), and (iii) sales and marketing costs.

Other expenses primarily include selling, general and administrative expenses that consist of (i) administrative costs, including compensation, costs under the Company’s services agreement with MSG Entertainment, professional fees, and operating lease costs, (ii) fees related to the Company’s Sponsorship Sales and Service Representation Agreements (as defined below), and (iii) sales and marketing costs.

Factors Affecting Operating Results

Our operating results are largely dependent on the continued popularity and/or on-court or on-ice competitiveness of our Knicks and Rangers teams, which have a direct effect on ticket sales for the teams’ home games and are each team’s largest single source of revenue.

Our operating results are largely dependent on the continued popularity and/or on-court or on-ice competitiveness of the Knicks and Rangers, which have a direct effect on ticket sales for the teams’ home games and are each team’s largest single source of revenue.

In addition, the popularity of our sports teams can generate fan enthusiasm, resulting in sustained premium seating, suite, sponsorship, food and beverage and merchandise sales.

Furthermore, success in the regular season may qualify our sports teams for participation in post-season playoffs, which provides us with a significant source of additional revenue, operating income and adjusted operating income.

As with other sports teams, the competitive positions of our sports teams depend primarily on our ability to develop, obtain and retain talented players, for which we compete with other professional sports teams.

4 unchanged sentences

These transactions can result in significant charges as the Company recognizes the estimated ultimate costs of these events in the period in which they occur, although amounts due to these individuals are generally paid over their remaining contract terms .

For example, the expense for these transactions was $49,148 and $781 for fiscal years 2025 and 2024, respectively .

For example, the expenses for these transactions were a net provision of $ 49,148 for fiscal year 2025 .

These expenses add to the volatility of our operating results .

1 unchanged sentence

Such expenses and charges may result in future operating losses although it is not possible to predict their timing or amount.

Our performance has been, and may in the future be, impacted by work stoppages.

In addition, our performance has been, and may in the future be, impacted by work stoppages.

See “Part I — Item 1A.

Risk Factors — Economic and Business Relationship Risks — Labor Matters May Have a Material Negative Effect on Our Business and Results of Operations .”

In addition to our future performance being dependent upon the continued popularity and/or on-court or on-ice competitiveness of our Knicks and Rangers teams, it is also dependent on general economic conditions, in particular those in the New York City metropolitan area, and the effect of these conditions on our customers.

In addition to our future performance being dependent upon the continued popularity and/or on-court or on-ice competitiveness of the Knicks and Rangers, it is also dependent on general economic conditions, in particular those in the New York City metropolitan area, and the effect of these conditions on our customers.

An economic downturn could adversely affect our business and results of operations as it may lead to lower demand for suite licenses and tickets to the games of our sports teams, which would also negatively affect merchandise and concession sales, as well as decrease levels of sponsorship and venue signage revenues.

Amendments to Media Rights Agreements

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

Amendments to Local Telecast Rights Agreements

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:

1 unchanged sentence

◦ an elimination of the annual rights fee escalator;

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

◦ a change to the contract expiration date to the end of the 2028-29 season, subject to MSG Networks’ right to make a firm offer for an additional term of not less than three seasons and to match a third-party offer unless the third-party offer provides rights fees for the first three years that are at least 110% of the rights fees specified in MSG Networks’ firm offer;

• New York Rangers:

1 unchanged sentence

◦ an elimination of the annual rights fee escalator;

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

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

As a result of the amendments to the media rights agreements, media rights fees revenues for the year ended June 30, 2025 have been recorded at the applicable reduced rate described above.

The Company will also record media rights fees revenues reflecting the reduced rates described above in future periods.

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.

As a result of the amendments to the local telecast rights agreements, local telecast rights fees revenues for fiscal years 2026 and 2025 have been recorded at the applicable reduced rate described above.

The Company also expects to record local telecast rights fees revenues reflecting the reduced rates described above in future periods.

Results of Operations

Comparison of the Year Ended June 30, 2025 versus the Year Ended June 30, 2024

Comparison of Fiscal Year 2026 versus Fiscal Year 2025

The table below sets forth, for the periods presented, certain historical financial information.

5 unchanged sentences

Depreciation and amortization 3,179 3,218 (39) (1) %

Restructuring charges 2,078 — 2,078 NM

Operating income 28,868 14,808 14,060 95 %

2 unchanged sentences

Interest expense (21,085) (21,652) 567 (3) %

Miscellaneous expense, net (14,462) (15,568) 1,106 (7) %

(Loss) income before income taxes (17,272) 105,668 (122,940) NM

Miscellaneous income (expense), net 7,261 (14,462) 21,723 NM

Income (loss) before income taxes 17,983 (17,272) 35,255 NM

Income tax expense (10,224) (5,166) (5,058) 98 %

Net (loss) income $ (22,438) $ 58,771 $ (81,209) NM

Net income (loss) $ 7,759 $ (22,438) $ 30,197 NM

NM — Percentage is not meaningful

Revenues for the year ended June 30, 2025 increased $12,071, or 1%, to $1,039,220 as compared to the prior year.

Revenues for fiscal year 2026 increased $114,602, or 11%, to $1,153,822 as compared to fiscal year 2025.

The net increase was attributable to the following:

Increase in playoff related revenues $ 66,893

Increase in revenues from league distributions 41,361

Increase in pre/regular season ticket-related revenues 12,747

Increase in sponsorship and signage revenues 11,362

Increase in suite revenues 12,501

Increase in revenues from league distributions 8,013

Increase in sponsorship and signage revenues 7,599

Increase in pre/regular season food, beverage and merchandise sales 4,701

Decrease in revenues from local media rights fees (31,644)

Decrease in playoff related revenues (13,233)

Decrease in pre/regular season food, beverage and merchandise sales (1,944)

Other net increases 444

The increase in pre/regular season ticket-related revenues was primarily due to higher average per-game revenue.

The increase in sponsorship and signage revenues was primarily due to higher net sales of existing sponsorship and signage inventory.

The increase in playoff related revenues was primarily due to higher average per-game Knicks playoff revenue and higher Knicks merchandise revenues during the team's playoff run as a result of winning the 2026 NBA Championship in fiscal year 2026 as compared to the Knicks advancing to the Eastern Conference Finals in fiscal year 2025.

The Knicks played nine home playoff games at The Garden in both fiscal year 2026 and fiscal year 2025.

The increase in revenues from league distributions was primarily due to increased rights fees under the NBA’s new national media rights agreements, which began with the 2025-26 NBA regular season, and an incremental league distribution received from the NBA in fiscal year 2026 related to the impact of the NBA Cup on the Knicks' 2025-26 game schedule.

This increase was partially offset by a decrease in certain league distributions unrelated to national media rights fees.

The increase in pre/regular season ticket-related revenues was primarily due to higher average per-game revenue, partially offset by the impact of the Knicks playing 43 pre/regular season home games at The Garden during the 2025-26 regular season as compared to 44 pre/regular season home games during the 2024-25 season as a result of the NBA Cup.

The increase in suite revenues was primarily due to higher net sales of suite products.

The increase in revenues from league distributions was primarily due to an increase in certain league distributions unrelated to national media rights fees and increased national media rights fees in the current year, partially offset by the absence of a non-recurring territorial fee from the NHL of approximately $7 million recognized in the prior year.

The decrease in revenues from local media rights fees was primarily due to a reduction in local media rights fees for the 2024-25 season as a result of amendments to the Knicks’ and Rangers’ local media rights agreements with MSG Networks entered into in the fourth quarter of fiscal year 2025.

Stated annual local media rights fees, subject to adjustments in certain circumstances, including if the Company does not make available a minimum number of games in the year, after consideration of the media rights amendments are $139,237 for the year ending June 30, 2026 as compared to $162,939 in stated annual local media rights fees for the year ended June 30, 2025.

The decrease in playoff related revenues was primarily due to the Rangers playing eight home playoff games in the prior year as compared to not qualifying for the playoffs in the current year.

This decrease was partially offset by higher per-game Knicks playoff revenue and the Knicks playing an additional two home playoff games at The Garden in the current year as compared to the prior year.

The Knicks played nine home playoff games at The Garden in the current year as the team advanced to the Eastern Conference Finals as compared to seven home playoff games in the prior year.

The decrease in pre/regular season food, beverage and merchandise sales was primarily due to lower online sales of merchandise.

Merchandise sales for the year ended June 30, 2024 included the positive impact of new Rangers’ jersey launches.

The increase in sponsorship and signage revenues was primarily due to higher net sales of existing sponsorship and signage inventory.

The increase in pre/regular season food, beverage and merchandise sales was primarily due to higher average per-game revenue and higher online sales of merchandise.

Merchandise sales for fiscal year 2026 included the positive impact of new Rangers’ jersey launches.

The decrease in revenues from local media rights fees was primarily due to reduced local telecast rights fees as a result of the amendments to the Knicks’ and the Rangers’ local telecast rights agreements with MSG Networks and a reduction in local telecast rights fees due to a decrease in the number of games exclusively available to MSG Networks during fiscal year 2026 as compared to fiscal year 2025.

Stated annual local media rights fees, subject to adjustments in certain circumstances, including if the Company does not make available a minimum number of games in the year, after consideration of the local telecast rights amendments were $139,237 for fiscal year 2026 as compared to $162,939 in stated annual local media rights fees for fiscal year 2025.

Direct operating expenses

6 unchanged sentences

• the cost of merchandise sales;

Direct operating expenses for the year ended June 30, 2025 increased $138,604, or 22%, to $755,118 as compared to the prior year.

• playoff related expenses, which include NBA and NHL revenue sharing and other team operating expenses, as described above.

Direct operating expenses for fiscal year 2026 increased $78,584, or 10%, to $833,702 as compared to fiscal year 2025.

The net increase was attributable to the following:

Increase in net provisions for league revenue sharing expense (net of escrow and excluding playoffs) and NBA luxury tax $ 62,628

Increase in net provisions for certain team personnel transactions 48,367

Increase in playoff related expenses $ 49,532

Increase in team personnel compensation 41,266

Increase in net provisions for league revenue sharing expense (net of escrow and excluding playoffs) and NBA luxury tax 23,256

Increase in other team operating expenses 11,168

Decrease in playoff related expenses (5,786)

Decrease in pre/regular season expense associated with merchandise sales (792)

Increase in pre/regular season expense associated with merchandise sales 2,535

Decrease in net (credits) provisions for certain team personnel transactions (49,173)

The increase in playoff related expenses was primarily due to the higher average per-game Knicks playoff expenses and higher expense associated with merchandise sales due to higher Knicks merchandise revenues during the team's playoff run as a result of winning the 2026 NBA Championship in fiscal year 2026 as compared to the Knicks advancing to the Eastern Conference Finals in fiscal year 2025.

The increase in team personnel compensation was primarily due to changes in the Knicks and the Rangers rosters.

Net provisions for league revenue sharing expense (net of escrow and excluding playoffs) and NBA luxury tax were as follows:

1 unchanged sentence

Net provisions for league revenue sharing expense (net of escrow and excluding playoffs) and NBA luxury tax $ 130,218 $ 106,962 $ 23,256

$ 106,962 $ 44,334 $ 62,628

The increase in net provisions for league revenue sharing expense (net of escrow and excluding playoffs) and NBA luxury tax was primarily due to higher NBA luxury tax expense and, to a lesser extent, higher provisions for league revenue sharing expense (net of escrow and excluding playoffs).

The increase in NBA luxury tax expense was the result of the Knicks being a significant luxury tax payer for the 2024-25 season, whereas the Knicks were not a luxury tax payer for the 2023-24 season.

The Knicks received an equal share of the portion of luxury tax receipts that were distributed to non-paying teams for the 2023-24 season.

Based on the current roster the Knicks would be a luxury tax payer for the 2025-26 season, however the final determination will be based upon the Knicks roster at the end of the 2025-26 regular season.

The increase in net provisions for league revenue sharing expense (net of escrow and excluding playoffs) and NBA luxury tax was primarily due to higher provisions for league revenue sharing expense (net of escrow and excluding playoffs) and higher

NBA luxury tax expense, partially offset by the net impact of adjustments to prior seasons’ revenue sharing expense (net of escrow).

The actual net provisions for league revenue sharing expense (net of escrow and excluding playoffs) for the 2025-26 seasons may vary significantly from the recorded provisions based on actual operating results for each league and all teams within each league for the season and other factors.

Net provisions for certain team personnel transactions were as follows:

Years Ended June 30, Increase

Waivers/contract terminations $ 39,215 $ (332) $ 39,547

The increase in other team operating expenses was primarily due to higher league assessments and higher team travel expenses.

The increase in pre/regular season expense associated with merchandise sales was primarily due to higher average per-game revenue and higher online sales of merchandise.

Merchandise sales for fiscal year 2026 included the positive impact of new Rangers’ jersey launches.

Net (credits) provisions for certain team personnel transactions were as follows:

Years Ended June 30, Change

Player trades $ (2,661) $ 9,800 $ (12,461)

Waivers/contract terminations 2,636 39,215 (36,579)

Season-ending player injuries — 133 (133)

Net provisions for certain team personnel transactions $ 49,148 $ 781 $ 48,367

The increase in team personnel compensation was primarily due to changes in the Knicks roster.

The increase in other team operating expenses was primarily due to higher team travel and player insurance, partially offset by lower event presentation expenses.

The decrease in playoff related expenses was primarily due to the Rangers playing eight home playoff games in the prior year as compared to not qualifying for the playoffs in the current year.

This decrease was partially offset by higher per-game Knicks playoff expenses and the Knicks playing an additional two home playoff games at The Garden in the current year as compared to the prior year.

The decrease in pre/regular season expense associated with merchandise sales was primarily due to lower online sales of merchandise as compared to the prior year.

Net (credits) provisions for certain team personnel transactions $ (25) $ 49,148 $ (49,173)

Selling, general and administrative expenses

Selling, general and administrative expenses primarily consist of (i) administrative costs, including compensation, costs under the Services Agreement, professional fees, and operating lease costs, (ii) fees related to the Sponsorship Sales and Service Representation Agreements, and (iii) sales and marketing costs.

Selling, general and administrative expenses primarily consist of (i) administrative costs, including compensation, costs under the Company’s services agreement with MSG Entertainment, professional fees, and operating lease costs, (ii) fees related to the Sponsorship Sales and Service Representation Agreements, and (iii) sales and marketing costs.

Selling, general and administrative expenses generally do not fluctuate in line with changes in the Company’s revenues and direct operating expenses.

Selling, general and administrative expenses for the year ended June 30, 2025 increased $4,643, or 2%, to $266,076 as compared to the prior year primarily due to (i) higher professional fees of $15,196, (ii) higher operating lease costs of $5,904, (iii) higher fees related to the Sponsorship Sales and Service Representation Agreements of $1,768, and (iv) higher playoff related expenses of $1,473, partially offset by lower employee compensation and related benefits of $16,861, primarily related to executive management transition costs recognized in the prior year, and lower sales and marketing costs of $3,546.

Selling, general and administrative expenses for fiscal year 2026 increased $19,919, or 7%, to $285,995 as compared to fiscal year 2025 primarily driven by (i) higher playoff related expenses of $13,279, (ii) higher employee compensation and related benefits of $11,591, including executive management transition costs of $7,195 recognized in fiscal year 2026, (iii) expenses related to the Rangers Distribution of $3,754 and (iv) higher other general and administrative expenses.

The increase was partially offset by lower other professional fees of $14,223.

Restructuring charges

Restructuring charges for fiscal year 2026 were $2,078 due to termination benefits provided as part of a voluntary exit program the Company implemented during fiscal year 2026.

There were no restructuring charges for fiscal year 2025.

Operating income

For the year ended June 30, 2025, operating income decreased $131,230, or 90%, to $14,808 as compared to the prior year.

The decrease in operating income was primarily due to higher direct operating expenses and, to a lesser extent, higher selling, general and administrative expenses, partially offset by higher revenues.

Operating income increased $14,060, or 95%, to $28,868 as compared to fiscal year 2025, primarily due to higher revenues, partially offset by higher direct operating expenses and higher selling, general and administrative expenses.

Interest income

Interest income increased $1,247, or 45%, to $4,034 as compared to the prior year.

The increase was primarily due to higher average cash balances in the current year, partially offset by lower average interest rates.

Interest income decreased $1,095, or 27%, to $2,939 as compared to fiscal year 2025, primarily due to lower average interest rates and lower average cash balances in fiscal year 2026.

Interest expense

Interest expense decreased $5,937, or 22%, to $21,652 as compared to the prior year.

The decrease was primarily due to lower average borrowings under the Rangers Revolving Credit Facility and lower average interest rates under the Knicks Revolving Credit Facility in the current year.

Miscellaneous expense, net

The decrease in Miscellaneous expense, net of $1,106, or 7%, relates to the Company’s investments.

Income tax expense for the year ended June 30, 2025 of $5,166, reflecting an effective tax rate of (30)%, differs from the income tax benefit derived from applying the statutory federal rate of 21% to pretax loss primarily due to nondeductible officers’ compensation of $5,291 and state and local tax expense of $2,686.

Income tax expense for the year ended June 30, 2024 of $46,897, reflecting an effective tax rate of 44%, differs from the income tax expense derived from applying the statutory federal rate of 21% to pretax income primarily due to state and local tax expense of $18,348 and nondeductible officers’ compensation of $5,899.

Interest expense decreased $567, or 3%, to $21,085 as compared to fiscal year 2025.

Miscellaneous income (expense), net

Miscellaneous income (expense), net for fiscal year 2026 reflected net income of $7,261 and Miscellaneous income (expense), net for fiscal year 2025 reflected net expense of $14,462.

The increase in Miscellaneous income (expense), net relates to changes in fair value in the Company’s investments.

Income tax expense for fiscal year 2026 of $10,224, reflecting an effective tax rate of 57%, differs from the income tax expense derived from applying the statutory federal rate of 21% to pretax income primarily due state and local tax expense of $4,434 and nondeductible officers’ compensation of $3,909.

Income tax expense for fiscal year 2025 of $5,166, reflecting an effective tax rate of (30)%, differs from the income tax benefit derived from applying the statutory federal rate of 21% to pretax loss primarily due to nondeductible officers’ compensation of $5,291 and state and local tax expense of $2,581.

See Note 19 to the consolidated financial statements included in Item 8 of this Annual Report on Form 10-K for further details on the components of income tax and a reconciliation of the statutory federal rate to the effective tax rate.

2 unchanged sentences

Management believes that the exclusion of share-based compensation expense or benefit allows investors to better track the performance of the Company’s business without regard to the settlement of an obligation that is not expected to be made in cash.

In addition, management believes that the exclusion of gains and losses related to the remeasurement of liabilities under the Company’s Executive Deferred Compensation Plan provides investors with a clearer picture of the Company’s operating performance given that, in accordance with generally accepted accounting principles (“GAAP”), gains and losses related to the remeasurement of liabilities under the Company’s Executive Deferred Compensation Plan are recognized in Operating income (loss) whereas gains and losses related to the remeasurement of the assets under the Company’s Executive Deferred Compensation Plan, which are equal to and therefore fully offset the gains and losses related to the remeasurement of liabilities, are recognized in Miscellaneous (expense) income, net , which is not reflected in Operating income (loss).

In addition, management believes that the exclusion of gains and losses related to the remeasurement of liabilities under the Company’s Executive Deferred Compensation Plan provides investors with a clearer picture of the Company’s operating performance given that, in accordance with generally accepted accounting principles (“GAAP”), gains and losses related to the remeasurement of liabilities under the Company’s Executive Deferred Compensation Plan are recognized in Operating income (loss) whereas gains and losses related to the remeasurement of the assets under the Company’s Executive Deferred Compensation Plan, which are equal to and therefore fully offset the gains and losses related to the remeasurement of liabilities, are recognized in Miscellaneous income (expense), net , which is not reflected in Operating income (loss).

The Company believes adjusted operating income (loss) is an appropriate measure for evaluating the operating performance of the Company.

10 unchanged sentences

Share-based compensation 21,524 17,935

Restructuring charges 2,078 —

Remeasurement of deferred compensation plan liabilities

Adjusted operating income $ 58,726 $ 38,156 $ 20,570 54 %

For the year ended June 30, 2025, adjusted operating income decreased $134,086, or 78%, to $38,156 as compared to the prior year.

The decrease in adjusted operating income was primarily due to higher direct operating expenses and, to a lesser extent, higher selling, general and administrative expenses, partially offset by higher revenues.

For fiscal year 2026, adjusted operating income increased $20,570, or 54%, to $58,726 as compared fiscal year 2025.

The increase in adjusted operating income was primarily due to higher revenues, partially offset by higher direct operating expenses and, to a lesser extent, higher selling, general and administrative expenses.

Liquidity and Capital Resources

Our primary sources of liquidity are cash and cash equivalents, cash flow from operations and available borrowing capacity under our credit facilities.

See Note 13 to the consolidated financial statements included in Item 8 of this Annual Report on Form 10-K for a discussion of the Knicks Credit Agreement, the Rangers Credit Agreement, and the Rangers NHL Advance Agreement (each as defined therein).

On November 6, 2025, the Company amended and extended the 2021 Knicks Credit Agreement and the 2021 Rangers Credit Agreement.

See Note 14 to the consolidated financial statements included in Item 8 of this Annual

Report on Form 10-K for a discussion of the 2025 Knicks Credit Agreement, the 2025 Rangers Credit Agreement, and the Rangers NHL Advance Agreement (each as defined therein).

Our principal uses of cash include the operation of our businesses, working capital-related items, the repayment of outstanding debt, repurchases of shares of the Company’s Class A Common Stock, dividends, if declared, and investments.

2 unchanged sentences

This balance is primarily comprised of obligations in connection with tickets and suites.

The outstanding balance under the Knicks Revolving Credit Facility was $242,000 as of June 30, 2026 and the outstanding balance under the Rangers NHL Advance Agreement was $16,500 as of June 30, 2026.

There were no borrowings under the Rangers Revolving Credit Facility as of June 30, 2026.

We regularly monitor and assess our ability to meet our net funding and investing requirements.

2 unchanged sentences

and global economic and market conditions could adversely impact its ability to do so at that time.

We believe we have sufficient liquidity, including approximately $144,617 in Cash and cash equivalents as of June 30, 2025, along with $258,000 of additional available borrowing capacity under existing credit facilities (as of June 30, 2025), to fund our operations and satisfy any obligations, for the foreseeable future.

If MSG Networks were to experience a bankruptcy or insolvency event (as set forth in each of the credit facilities), we would be prevented, absent a cure or waiver, from making borrowings under our revolving credit facilities.

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

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

See “Item 1A.

Risk Factors — Economic and Business Relationship Risks — Certain of Our Subsidiaries Have Incurred Substantial Indebtedness, and the Occurrence of an Event of Default Under Our Subsidiaries’ Credit Facilities or Our Inability to Repay Such Indebtedness When Due Could Substantially Impair the Assets of Those Subsidiaries and Have a Negative Effect on Our Business.”

We believe we have sufficient liquidity, including $164,511 in Cash and cash equivalents as of June 30, 2026, along with $433,000 of additional available borrowing capacity under existing credit facilities (as of June 30, 2026), to fund our operations and satisfy any obligations, for the foreseeable future.

On July 22, 2026, the Company borrowed an additional $20,000 under the Knicks Revolving Credit Facility.

Financing Agreements and Stock Repurchases

1 unchanged sentence

Cash Flow Discussion

The following table summarizes the Company’s cash flow activities for the years ended June 30, 2025 and 2024:

The following table summarizes the Company’s cash flow activities for fiscal years 2026 and 2025:

Years Ended June 30,

Net (loss) income $ (22,438) $ 58,771

Adjustments to reconcile net (loss) income to net cash provided by operating activities (13,542) 35,175

Net income (loss) $ 7,759 $ (22,438)

Adjustments to reconcile net income (loss) to net cash provided by operating activities 28,101 (13,542)

Changes in working capital assets and liabilities 26,803 127,587

4 unchanged sentences

Operating Activities

Net cash provided by operating activities for the year ended June 30, 2025 decreased by $524 to $91,607 as compared to the prior year.

The decrease was due to the decrease in net (loss) income adjusted for non-cash items, offset by the impact of changes in working capital assets and liabilities.

The changes in working capital assets and liabilities were primarily driven by (i) increase in accrued and other liabilities of $66,787 primarily due to increased accruals for NBA luxury tax, revenue sharing, and league assessments in the current year period, (ii) a decrease in net related party receivables of $44,959 primarily due to the timing of collections related to the Company’s Arena License Agreements and Sponsorship Sales and Service Representation Agreements, and (iii) an increase in deferred revenue of $34,907 primarily due to higher collections of ticket, suites, and sponsorship sales in

advance of recognition.

These changes were partially offset by an increase in prepaid expenses and other assets of $17,459 primarily driven by the timing of payments related to employee compensation.

Net cash provided by operating activities for fiscal year 2026 decreased by $28,944 to $62,663 as compared to fiscal year 2025.

The decrease was due to the impact of changes in working capital assets and liabilities, partially offset by the increase in net income (loss) adjusted for non-cash items.

The changes in working capital assets and liabilities were primarily driven by (i) an increase in net related party receivables of $61,194 primarily due to the timing of collections related to the Company’s Arena License Agreements and Sponsorship Sales and Service Representation Agreements, (ii) an increase in accounts receivable of $34,255 primarily due to the timing of receipts from the NBA and the timing of collections of sponsorship sales, (iii) a lower increase in deferred revenue of $13,885 primarily due to the timing of collections of ticket, suites, and sponsorship sales in advance of recognition, and (iv) a lower increase in accrued and other liabilities of $8,510 primarily due to impact of NBA luxury tax payments in fiscal year 2026, partially offset by higher accruals for employee compensation and league revenue sharing (net of escrow) in fiscal year 2026.

These changes were partially offset by an increase in accounts payable of $9,664 primarily due to the timing of payment of playoff related expenses and a lower decrease in prepaid expenses and other assets of $4,875 primarily driven by the timing of payments related to employee compensation.

Investing Activities

Net cash used in investing activities for the year ended June 30, 2025 decreased by $1,978 to $6,920 as compared to the prior year primarily due to lower purchases of investments in the current year, partially offset by higher capital expenditures.

Net cash used in investing activities for fiscal year 2026 decreased by $4,714 to $2,206 as compared to fiscal year 2025 primarily due to lower capital expenditures in fiscal year 2026, the impact of a distribution received from an equity method investee in fiscal year 2026 and lower purchases of investments in fiscal year 2026.

Financing Activities

Net cash used in financing activities for the year ended June 30, 2025 decreased by $2,379 to $26,406 as compared to the prior year primarily due to lower repayments under the Company’s credit facilities in the current year, partially offset by additional borrowings under the Company’s credit facilities in the prior year and, to a lesser extent, the impact of principal repayments under the Rangers NHL Advance Agreement in the current year and higher taxes paid in lieu of shares issued for equity-based compensation in the current year.

Net cash used in financing activities for fiscal year 2026 increased by $22,728 to $49,134 as compared to fiscal year 2025 primarily due to higher principal repayments under the Company’s credit facilities and Rangers NHL Advance Agreement in fiscal year 2026 and payments for financing costs in fiscal year 2026.

Contractual Obligations and Off-Balance Sheet Arrangements

1 unchanged sentence

Payments Due by Period

4-5 More Than

Off-balance sheet arrangements (a)

$ 863,181 $ 288,035 $ 423,026 $ 102,121 $ 49,999

Contractual obligations reflected on the balance sheet:

Contractual obligations reflected in the balance sheet:

Short-term debt (b)

8 unchanged sentences

_________________

(a) Contractual obligations not reflected on the balance sheet consist principally of the Company’s obligations under employment agreements that the Company has with certain of its professional sports teams’ personnel where services are to be performed in future periods and that are generally guaranteed regardless of employee injury or termination.

(a) Contractual obligations not reflected in the balance sheet consist principally of the Company’s obligations under employment agreements that the Company has with certain of its professional sports teams’ personnel where services are to be performed in future periods and that are generally guaranteed regardless of employee injury or termination.

(b) Consists of amounts under the Rangers NHL Advance Agreement.

See Note 14 to the consolidated financial statements included in Item 8 of this Annual Report on Form 10-K for further details.

(c) Includes contractually obligated minimum license fees under the Arena License Agreement, which fees are characterized as lease payments for operating leases having an initial noncancelable term in excess of one year under GAAP.

(c) Includes contractually obligated minimum license fees under the Arena License Agreements, which fees are characterized as lease payments for operating leases having an initial noncancelable term in excess of one year under GAAP.

These commitments are presented exclusive of the imputed interest used to reflect the payment’s present value.

See Note 7 to the consolidated financial statements included in Item 8 of this Annual Report on Form 10-K for information on the contractual obligations related to future lease payments, which are reflected on the consolidated balance sheet as lease liabilities as of June 30, 2025.

See Note 8 to the consolidated financial statements included in Item 8 of this Annual Report on Form 10-K for information on the contractual obligations related to future lease payments, which are reflected in the consolidated balance sheet as lease liabilities as of June 30, 2026.

(d) Consists of amounts drawn under the Knicks Revolving Credit Facility.

See Note 14 to the consolidated financial statements included in Item 8 of this Annual Report on Form 10-K for further details.

(e) Contractual obligations reflected on the balance sheet consist principally of the Company’s obligations under employment agreements that the Company has with certain of its professional sports teams’ personnel where services have been fully performed and that are being paid on a deferred basis.

(e) Contractual obligations reflected in the balance sheet consist principally of the Company’s obligations under employment agreements that the Company has with certain of its professional sports teams’ personnel where services have been fully performed and that are being paid on a deferred basis.

(f) Pension obligations have been excluded from the table above as the timing of the future cash payments is uncertain.

See Note 14 to the consolidated financial statements included in Item 8 of this Annual Report on Form 10-K for more information on the Company’s pension obligations.

See Note 15 to the consolidated financial statements included in Item 8 of this Annual Report on Form 10-K for more information in the Company’s pension obligations.

Seasonality of Our Business

The Company’s dependence on revenues from its NBA and NHL sports teams generally means that 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 teams’ games are played.

Recently Issued Accounting Pronouncements and Critical Accounting Policies

Recently Issued Accounting Pronouncements and Critical Accounting Estimates

Recently Issued Accounting Pronouncements

See Note 2 to the consolidated financial statements included in Item 8 of this Annual Report on Form 10-K for discussion of recently issued accounting pronouncements.

Critical Accounting Policies

The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions about future events.

Critical Accounting Estimates

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions about future events.

These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses.

11 unchanged sentences

Key factors considered by the Company in developing an estimated standalone selling price for its performance obligations include, but are not limited to, prices charged for similar performance obligations, the Company’s ongoing pricing strategy and policies, and consideration of pricing of similar performance obligations sold in other arrangements with multiple performance obligations.

The Company may incur costs such as commissions to obtain its multi-year sponsorship agreements.

The Company may incur costs to obtain its multi-year sponsorship agreements.

The Company assesses such costs for capitalization on a contract by contract basis.

7 unchanged sentences

In assessing the recoverability of the Company’s long-lived and indefinite-lived assets, the Company must make estimates and assumptions regarding future cash flows and other factors to determine the fair value of the respective assets.

These estimates and assumptions could have a significant impact on whether an impairment charge is recognized and also the magnitude of any such charge.

These estimates and assumptions could have a significant impact on whether an impairment charge is recognized as well as the magnitude of any such charge.

Fair value estimates are made at a specific point in time, based on relevant information.

2 unchanged sentences

If these estimates or material related assumptions change in the future, the Company may be required to record impairment charges related to its long-lived and/or indefinite-lived assets.

Goodwill is tested annually for impairment as of August 31 st and at any time upon the occurrence of certain events or changes in

circumstances.

The Company performs its goodwill impairment test at the reporting unit level, which is the same as or one level below the operating segment level.

The Company has one operating and reportable segment, and for the year ended June 30, 2025, the Company had one reporting unit for goodwill impairment testing purposes.

Goodwill is tested annually for impairment as of August 31 st and at any time upon the occurrence of certain events or changes in circumstances.

The Company performs its goodwill impairment test at the reporting unit level, which is the same as or one

level below the operating segment level.

The Company has one operating and reportable segment, and as of June 30, 2026, the Company had one reporting unit for goodwill impairment testing purposes.

The Company has the option to perform a qualitative assessment to determine if an impairment is more likely than not to have occurred.

19 unchanged sentences

Identifiable indefinite-lived intangible assets are tested annually for impairment as of August 31 st and at any time upon the occurrence of certain events or substantive changes in circumstances.

The following table sets forth the amount of identifiable indefinite-lived intangible assets reported in the Company’s consolidated balance sheet as of June 30, 2025:

The following table sets forth the amount of identifiable indefinite-lived intangible assets reported in the consolidated balance sheet as of June 30, 2026:

Sports franchises $ 102,564

17 unchanged sentences

Lease Accounting

The Company’s leases primarily consist of the lease of the Company’s corporate offices under the Sublease Agreement (as defined below) with MSG Entertainment for our principal executive offices at Two Pennsylvania Plaza in New York, an aircraft lease, and the lease of the CLG Performance Center until April 2023.

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

In addition, the Company accounts for the rights of use of The Garden pursuant to the Arena License Agreements as leases under the Accounting Standards Codification Topic 842, Leases.

3 unchanged sentences

The Company also determines lease classification as either operating or finance at lease commencement, which governs the pattern of expense recognition and the presentation reflected in the consolidated statements of operations over the lease term.

For leases with a term exceeding 12 months, a lease liability is recorded on the Company’s consolidated balance sheet at lease commencement reflecting the present value of the fixed minimum payment obligations over the lease term.

For leases with a term exceeding 12 months, a lease liability is recorded in the consolidated balance sheet at lease commencement reflecting the present value of the fixed minimum payment obligations over the lease term.

A corresponding right-of-use (“ROU”) asset equal to the initial lease liability is also recorded, adjusted for any prepaid rent and/or initial direct costs incurred in connection with execution of the lease and reduced by any lease incentives received.

The Company includes fixed payment obligations related to non-lease components in the measurement of ROU assets and lease liabilities, as the Company has elected to account for lease and non-lease components together as a single lease component.

ROU assets associated with finance leases, if any, are presented separate from operating leases ROU assets and are included within Property and equipment, net on the Company’s consolidated balance sheet.

ROU assets associated with finance leases, if any, are presented separate from operating lease ROU assets and are included within Property and equipment, net in the consolidated balance sheets.

For purposes of measuring the present value of the Company’s fixed payment obligations for a given lease, the Company uses its incremental borrowing rate, determined based on information available at lease commencement, as rates implicit in the underlying leasing arrangements are typically not readily determinable.

1 unchanged sentence

The Company is party to the Sublease Agreement for the Company’s principal executive offices at Two Pennsylvania Plaza in New York.

The sublease ROU assets and liabilities are recorded on the balance sheet at lease commencement based on the present value of minimum base rent and other fixed payments over the reasonably certain lease term.

The sublease ROU assets and liabilities are recorded in the balance sheet at lease commencement based on the present value of minimum base rent and other fixed payments over the reasonably certain lease term.

In November 2021, Sphere Entertainment entered into a new lease for principal executive offices at Two Pennsylvania Plaza in New York, which was assigned to MSG Entertainment in connection with the MSGE Distribution (the “New MSGE Lease Agreement”).

1 unchanged sentence

The Company accounted for this extension as a lease remeasurement and remeasured the ROU asset and operating lease liability utilizing the Company’s incremental borrowing rate as of the date of remeasurement.

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

The Company recorded the short term operating lease costs for this amendment within Selling, general and administrative expenses in the accompanying consolidated statements of operations for the year ended June 30, 2025.

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

The Company recorded the short term operating lease costs for this amendment within Selling, general and administrative expenses in the consolidated statements of operations for fiscal year 2025.

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

The Company recorded a lease right-of-use asset and liability in the accompanying consolidated balance sheet as of June 30, 2025 based on the present value of minimum fixed lease payments over the lease term utilizing the Company’s incremental borrowing rate as of the lease commencement date.

The Company recorded a lease right-of-use asset and liability in the consolidated balance sheet as of June 30, 2025 based on the present value of minimum fixed lease payments over the lease term utilizing the Company’s incremental borrowing rate as of the lease commencement date.

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

1 unchanged sentence

The Arena License Agreements provide for fixed payments to be made from inception through June 30, 2055 in 12 equal installments during each year of the contractual term.

The Knicks and the Rangers are entitled to use The Garden on home game days, which are usually nonconsecutive, for a pre-defined period of time before and after the game.

1 unchanged sentence

While payments are made throughout the contract year in twelve equal installments under each arrangement, the periods of use only span each of the individual team event days.

As such, the Company concluded that the related straight-line operating lease costs should be recorded by each team equally over each team’s individual event days.

As part of Arena License Agreements, we recognized license fees which are characterized as operating lease liabilities and ROU assets.

As such, the Company concluded that the related straight-line operating lease costs should be recorded equally as pre/regular season home games are played by each team.

As part of the Arena License Agreements, we recognized license fees which are characterized as operating lease liabilities and ROU assets.

We measured the lease liabilities at the present value of the future lease payments as of April 17, 2020 and remeasured the operating lease liabilities and ROU assets as a result of government-mandated suspension of events and government-mandated assembly restrictions in response to COVID-19.

5 unchanged sentences

In June 2023, the Company entered into a lease agreement for an aircraft with a term through December 30, 2031.

The lease ROU asset and operating lease liability were recorded in the Company’s consolidated balance sheet based on the present value of minimum lease fixed payments over the lease term utilizing the Company’s incremental borrowing rate as of the lease commencement date.

The lease ROU asset and operating lease liability were recorded in the consolidated balance sheet based on the present value of minimum lease fixed payments over the lease term utilizing the Company’s incremental borrowing rate as of the lease commencement date.

Estimation of the incremental borrowing rate requires judgment by management and reflects an assessment of credit standing to derive an implied secured credit rating and corresponding yield curve.

2 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-K

Item 7. Management’s Discussion and Analysis