What changed in this filing

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Item 9A. Controls and Procedures

2024-08-13 compared with 2023-08-17 · 281 added, 341 removed, 1295 unchanged (32% of the section changed)

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Evaluation of Disclosure Controls and Procedures

An evaluation was carried out under the supervision and with the participation of the Company’s management, including our Executive Chairman (our principal executive officer) and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this report.

Based upon that evaluation, the Company’s Executive Chairman and Chief Financial Officer concluded that as of June 30, 2023 the Company’s disclosure controls and procedures were effective.

An evaluation was carried out under the supervision and with the participation of the Company’s management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this report.

Based upon that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer concluded that as of June 30, 2024 the Company’s disclosure controls and procedures were effective.

Management’s Report on Internal Control over Financial Reporting

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Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Under the supervision and with the participation of management, including the Company’s Executive Chairman and Chief Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

Under the supervision and with the participation of management, including the Company’s Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

Based on the results of this evaluation, our management concluded that our internal control over financial reporting was effective as of June 30, 2024.

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Directors, Executive Officers and Corporate Governance

Information relating to our directors, executive officers and corporate governance will be included in the proxy statement for the 2023 annual meeting of the Company’s stockholders, which is expected to be filed within 120 days of our fiscal year end, and is incorporated herein by reference.

Information relating to our directors, executive officers, corporate governance and insider trading policies and procedures will be included in the proxy statement for the 2024 annual meeting of the Company’s stockholders, which is expected to be filed within 120 days of our fiscal year end, and is incorporated herein by reference.

Executive Compensation

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Mink (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed on November 19, 2021).

Employment Agreement dated as of December 16, 2021, between Madison Square Garden Sports Corp.

and Andrew Lustgarten (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on December 21, 2021).

E mployment Agreement dated as of December 27, 2021 between Madison Square Garden Sports Corp.

Dolan, as amended and restated as of April 20, 2023 (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on April 25, 2023).

Employment Agreement dated as of March 17, 2022, between Madison Square Garden Sports Corp.

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Employment Agreement dated as of June 15, 2023, between Madison Square Garden Sports Corp.

and David Granville-Smith.

and David Granville-Smith (incorporated by reference to Exhibit 10.18 to the Company's Annual Report on Form 10-K for the year ended June 30, 2023 filed on August 17, 2023).†

Employment Agreement, dated as of June 17, 2024, between Madison Square Garden Sports Corp.

Dolan (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on June 20, 2024).†

Employment Agreement dated as of July 3, 2024, between Madison Square Garden Sports Corp.

and Jamaal Lesane (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on July 9, 2024).

Employment Agreement dated as of April 25, 2023 between Madison Square Garden Sports Corp.

and Alex Shvartsman (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed on April 25, 2023).

Option Agreement, dated December 15, 2017, between Madison Square Garden Sports Corp.

(formerly, The Madison Square Garden Company) and Andrew Lustgarten (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed on December 18, 2017).

Amended and Restated Credit Agreement, dated as of November 6, 2020, by and among New York Knicks, LLC, JPMorgan Chase Bank, N.A.

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Policy Concerning Certain Matters Relating to Madison Square Garden Entertainment Corp., Sphere Entertainment Co.

and AMC Networks Inc., including Responsibilities of Overlapping Directors and Officers.

and AMC Networks Inc., including Responsibilities of Overlapping Directors and Officers (incorporated by reference to Exhibit 10.35 to the Company's Annual Report on Form 10-K for the year ended June 30, 2023 filed on August 17, 2023).

Sponsorship Sales and Service Representation Agreement, dated April 15, 2020, between Knicks Holdings, LLC and MSG Entertainment Group, LLC (incorporated by reference to Exhibit 10.76 to the Company’s Annual Report on Form 10-K for the year ended June 30, 2020 filed on August 31, 2020).

Sponsorship Sales and Service Representation Agreement, dated April 15, 2020, between New York Rangers, LLC and MSG Entertainment Group, LLC (incorporated by reference to Exhibit 10.77 to the Company’s Annual Report on Form 10-K for the year ended June 30, 2020 filed on August 31, 2020).

Insider Trading Policy

Subsidiaries of the Registrant.

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Certification by the Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

Clawback Policy

101 The following materials from Madison Square Garden Sports Corp.

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Allowance for doubtful accounts $ — $ — $ — $ — $ —

$ — $ — $ — $ — $ —

Deferred tax valuation allowance ( 2,728 ) ( 1,432 ) — — ( 4,160 )

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Allowance for doubtful accounts $ — $ — $ — $ — $ —

Deferred tax valuation allowance ( 48,133 ) 51,496 ( 3,363 ) (a)

$ ( 48,313 ) $ 51,671 $ ( 3,363 ) $ 5 $ —

Deferred tax valuation allowance — — — — —

$ — $ — $ — $ — $ —

(a) Includes amounts related to return to provision adjustments.

Pursuant to the requirements of the Section 13 or 15(d) the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on the 13 th day of August 2024.

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POWER OF ATTORNEY

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Victoria M.

Mink, Jamaal Lesane and Mark C.

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Jamaal Lesane, Victoria M.

Mink and Mark C.

Cresitello, and each of them, as such person’s true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for such person in such person’s name, place and stead, in any and all capacities, to sign this report, and file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, full power and authority to do and perform each and every act and thing requisite and necessary to be done as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents or any of them may lawfully do or cause to be done by virtue hereof.

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Name Title Date

DOLAN Executive Chairman (Principal Executive Officer) and Director August 17, 2023

DOLAN Executive Chairman and Chief Executive Officer (Principal Executive Officer) and Director August 13, 2024

/ s / VICTORIA M.

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Consolidated Statements of Operations for the years ended June 30, 202 4 , 202 3 and 20 2 2

Consolidated Statements of Comprehensive Income (Loss) for the years ended June 30, 2023, 2022 and 2021

Consolidated Statements of Comprehensive Income for the years ended June 30, 202 4 , 202 3 and 20 2 2

Consolidated Statements of Cash Flows for the years ended June 30, 202 4 , 202 3 and 20 2 2

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We have audited the accompanying consolidated balance sheets of Madison Square Garden Sports Corp.

and subsidiaries (the "Company") as of June 30, 2023 and 2022, the related consolidated statements of operations, comprehensive income (loss), cash flows, and equity, for each of the three years in the period ended June 30, 2023, and the related notes and the consolidated financial statement Schedule II listed in the Index at Item 15 (collectively referred to as the "financial statements").

and subsidiaries (the "Company") as of June 30, 2024 and 2023, the related consolidated statements of operations, comprehensive income, cash flows, and equity, for each of the three years in the period ended June 30, 2024, and the related notes and the consolidated financial statement Schedule II listed in the Index at Item 15 (collectively referred to as the "financial statements").

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of June 30, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended June 30, 2024, in conformity with accounting principles generally accepted in the United States of America.

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Critical Audit Matter Description

The Dolan family, including trusts for the benefit of members of the Dolan family (collectively, the Dolan Family Group) is the majority beneficial owner of the Company, Sphere Entertainment Co., Madison Square Garden Entertainment Corp., and AMC Networks, Inc.

In addition, there are or have been certain overlapping directors and executive officers between the companies.

In addition, there are overlapping directors and executive officers between the entities.

Each of these companies has been identified as a related party at June 30, 2024.

The Company has entered into a number of transactions with related parties, including, but not limited to agreements for use of the Madison Square Garden Arena, media rights, sales and service representation, team sponsorship allocation, sublease of office space, and other services, as well as certain shared executive support costs for the Company’s Executive Chairman, the Company’s Vice Chairman, the Company’s Executive Vice President and previously, the Company’s former Chief Executive Officer.

The Company had entered into a number of transactions with related parties, including, but not limited to agreements for use of the Madison Square Garden Arena, media rights, sales and service representation, team sponsorship allocation, sublease of office space, and other services, as well as certain shared executive support costs for the Company’s Executive Chairman and Chief Executive Officer, the Company’s Vice Chairman, and the Company’s Executive Vice President.

We identified the evaluation of the Company’s identification of related parties and related party transactions as a critical audit matter.

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• Received confirmations from related parties, and, in certain cases third parties, and compared responses to the Company’s records;

• Performed the following procedures to identify information related to potential undisclosed transactions between the Company and related parties that may also involve third parties:

• Performed the following procedures to identify information related to potential undisclosed transactions between the Company and related parties that may also include third parties:

◦ Read the Company’s minutes from meetings of the Board of Directors and related committees of the Board of Directors;

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Right-of-use lease assets 694,566 715,283

Amortizable intangible assets, net — 636

Indefinite-lived intangible assets 103,644 103,644

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Deferred revenue, noncurrent 1,147 12,666

Other liabilities — 1,002

Total liabilities 1,612,602 1,652,251

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Accumulated other comprehensive loss ( 952 ) ( 1,009 )

Total Madison Square Garden Sports Corp.

stockholders’ equity ( 337,234 ) ( 147,089 )

Nonredeemable noncontrolling interests — 1,712

Total equity ( 266,310 ) ( 337,234 )

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Depreciation and amortization 3,164 3,577 5,042

Operating income (loss) 85,174 86,080 ( 78,443 )

Operating income 146,038 85,174 86,080

Other income (expense):

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Interest expense ( 27,589 ) ( 22,884 ) ( 11,735 )

Miscellaneous income (expense), net 25,239 ( 726 ) ( 346 )

Miscellaneous (expense) income, net ( 15,568 ) 25,239 ( 726 )

( 40,370 ) 4,747 ( 12,148 )

Income (loss) before income taxes 89,921 73,932 ( 89,318 )

Income tax (expense) benefit ( 44,293 ) ( 25,052 ) 73,421

Net income (loss) 45,628 48,880 ( 15,897 )

Income before income taxes 105,668 89,921 73,932

Income tax expense ( 46,897 ) ( 44,293 ) ( 25,052 )

Net income 58,771 45,628 48,880

Net loss attributable to nonredeemable noncontrolling interests — ( 2,165 ) ( 2,251 )

Net income (loss) attributable to Madison Square Garden Sports Corp.’s stockholders $ 47,793 $ 51,131 $ ( 13,954 )

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

$ 1.90 $ 2.11 $ ( 0.58 )

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

$ 1.89 $ 2.10 $ ( 0.58 )

Net income attributable to Madison Square Garden Sports Corp.’s stockholders $ 58,771 $ 47,793 $ 51,131

Basic earnings per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ 2.45 $ 1.90 $ 2.11

Diluted earnings per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ 2.44 $ 1.89 $ 2.10

Weighted-average number of common shares outstanding:

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MADISON SQUARE GARDEN SPORTS CORP.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

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2024 2023 2022

Net income (loss) $ 45,628 $ 48,880 $ ( 15,897 )

Other comprehensive income (loss), before income taxes:

Net income $ 58,771 $ 45,628 $ 48,880

Other comprehensive income, before income taxes:

Benefit plans:

Net unamortized gains (losses) arising during the period $ 215 $ 1,078 $ ( 38 )

Net unamortized gains arising during the period $ 18 $ 215 $ 1,078

Amounts reclassified from accumulated other comprehensive loss:

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Other comprehensive income, net of income taxes 57 177 841

Comprehensive income (loss) 45,805 49,721 ( 15,785 )

Comprehensive income 58,828 45,805 49,721

Comprehensive loss attributable to nonredeemable noncontrolling interests — ( 2,165 ) ( 2,251 )

Comprehensive income (loss) attributable to Madison Square Garden Sports Corp.’s stockholders $ 47,970 $ 51,972 $ ( 13,842 )

Comprehensive income attributable to Madison Square Garden Sports Corp.’s stockholders $ 58,828 $ 47,970 $ 51,972

See accompanying notes to consolidated financial statements.

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Cash flows from operating activities:

Net income (loss) $ 45,628 $ 48,880 $ ( 15,897 )

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

Net income $ 58,771 $ 45,628 $ 48,880

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

Depreciation and amortization 3,164 3,577 5,042

Share-based compensation expense 21,291 25,203 24,245

Provision for (benefit from) deferred income taxes 15,022 24,480 ( 73,664 )

Unrealized (gain)/loss on equity investments with readily determinable fair value and warrants ( 26,561 ) 461 —

Provision for (recovery of) doubtful accounts — — ( 175 )

(Benefit from) provision for deferred income taxes ( 7,135 ) 15,022 24,480

Unrealized loss (gain) on equity investments with readily determinable fair value and warrants 10,591 ( 26,561 ) 461

Other non-cash adjustments 7,264 3,330 1,833

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Operating lease right-of-use assets and lease liabilities 24,754 24,404 26,922

Net cash provided by (used in) operating activities 152,473 178,056 ( 35,326 )

Net cash provided by operating activities 92,131 152,473 178,056

Cash flows from investing activities:

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Dividends paid ( 701 ) ( 170,923 ) —

Proceeds from NHL advance — — 30,000

Proceeds from revolving credit facilities 75,000 215,000 —

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Other financing activities — 3,607 —

Net cash (used in) provided by financing activities ( 185,273 ) ( 156,142 ) 17,155

Net (decrease) increase in cash, cash equivalents and restricted cash ( 50,559 ) 18,982 ( 18,637 )

Net cash used in financing activities ( 28,785 ) ( 185,273 ) ( 156,142 )

Net increase (decrease) in cash, cash equivalents and restricted cash 54,448 ( 50,559 ) 18,982

Cash, cash equivalents and restricted cash from beginning of period 40,459 91,018 72,036

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Balance as of June 30, 2021 $ 249 $ 23,102 $ ( 146,734 ) $ ( 78,898 ) $ ( 2,027 ) $ ( 204,308 ) $ 2,442 $ ( 201,866 )

Net loss — — — ( 13,954 ) — ( 13,954 ) ( 1,943 ) ( 15,897 )

Net income (loss) — — — 51,131 — 51,131 ( 2,251 ) 48,880

Other comprehensive income — — — — 841 841 — 841

Comprehensive loss — — — — ( 13,842 ) ( 1,943 ) ( 15,785 )

Comprehensive income (loss) — — — — 51,972 ( 2,251 ) 49,721

Share-based compensation — 24,245 — — — 24,245 — 24,245

— 30,437 — — — 30,437 — 30,437

Tax withholding associated with shares issued for equity-based compensation

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Share-based compensation — 25,203 — — — 25,203 — 25,203

— 24,245 — — — 24,245 — 24,245

Tax withholding associated with shares issued for equity-based compensation

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— ( 9,179 ) 20,983 ( 8,928 ) — 2,876 — 2,876

Dividends declared ($ 7.00 per share)

— — — ( 172,734 ) — ( 172,734 ) — ( 172,734 )

Accelerated share repurchase — 1,649 ( 72,367 ) ( 4,342 ) — ( 75,060 ) — ( 75,060 )

Adjustments to noncontrolling interests — ( 503 ) — — ( 503 ) 453 ( 50 )

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Comprehensive

Loss Total Madison Square Garden Sports Corp.

Stockholders ’ Equity

Nonredeemable

Noncontrolling

Interests Total Equity

Loss Total Equity

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

Net income (loss) — — — 47,793 — 47,793 ( 2,165 ) 45,628

Net income — — — 58,771 — 58,771

Other comprehensive income — — — — 57 57

Comprehensive income (loss) — — — — — 47,970 ( 2,165 ) 45,805

Comprehensive income — — — — — 58,828

Share-based compensation — 21,291 — — — 21,291

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Common stock issued under stock incentive plans — ( 9,863 ) 9,863 — — —

Dividends declared ($ 7.00 per share)

— — — ( 172,734 ) — ( 172,734 ) — ( 172,734 )

Accelerated share repurchase — 1,649 ( 72,367 ) ( 4,342 ) — ( 75,060 ) — ( 75,060 )

Adjustments to noncontrolling interests — ( 503 ) — — — ( 503 ) 453 ( 50 )

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

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Madison Square Garden Sports Corp.

(together with its subsidiaries, the “Company” or “MSG Sports”) owns and operates a portfolio of assets featuring some of the most recognized teams in all of sports, including the New York Knickerbockers (“Knicks”) of the National Basketball Association (“NBA”) and the New York Rangers (“Rangers”) of the National Hockey League (“NHL”).

(together with its subsidiaries, collectively, “we,” “us,” “our,” “MSG Sports,” or the “Company”) owns and operates a portfolio of assets featuring some of the most recognized teams in all of sports, including the New York Knickerbockers (“Knicks”) of the National Basketball Association (“NBA”) and the New York Rangers (“Rangers”) of the National Hockey League (“NHL”).

Both the Knicks and the Rangers play their home games in Madison Square Garden Arena (“The Garden”).

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

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

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

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the manner in which its operations are managed;

the criteria used by the Company’s Executive Chairman, its Chief Operating Decision Maker (“CODM”), to evaluate segment performance.

and the criteria used by the Company’s Executive Chairman and Chief Executive Officer, its Chief Operating Decision Maker (“CODM”), to evaluate segment performance.

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

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(“MSG Networks”).

All the outstanding common stock of the Company was distributed to MSG Networks shareholders (the “MSGS Distribution”) on September 30, 2015.

All the outstanding common stock of the Company was distributed to MSG Networks stockholders (the “MSGS Distribution”) on September 30, 2015.

On April 17, 2020 (the “Sphere Distribution Date”), the Company distributed all of the outstanding common stock of Sphere Entertainment Co.

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and referred to herein as “Sphere Entertainment”) to its stockholders (the “Sphere Distribution”).

Prior to the MSGE Distribution (as defined below), Sphere Entertainment owned, directly or indirectly, the entertainment business previously owned and operated by the Company through its MSG Entertainment business segment and the sports booking business previously owned and operated by the Company through its MSG Sports business segment.

On July 9, 2021, MSG Networks merged with a subsidiary of Sphere Entertainment and became a wholly-owned subsidiary of Sphere Entertainment.

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On April 20, 2023 (the “MSGE Distribution Date”), Sphere Entertainment distributed approximately 67 % of the issued and outstanding shares of common stock of Madison Square Garden Entertainment Corp.

(formerly MSGE Spinco, Inc.

and referred to herein as “MSG Entertainment”) to its stockholders (the “MSGE Distribution”).

All agreements between the Company and MSG Entertainment described herein were between the Company and Sphere Entertainment prior to the MSGE Distribution (except agreements entered into after the MSGE Distribution).

(referred to herein as “MSG Entertainment”) to its stockholders (the “MSGE Distribution”).

Unless the context otherwise requires, all references to MSG Entertainment, Sphere Entertainment and MSG Networks refer to such entity, together with its direct and indirect subsidiaries.

Reclassifications

Certain reclassifications have been made in order to conform to the current period’s presentation and relate to the separation of Investments, which was previously reported in Other assets in the consolidated balance sheet as of June 30, 2022 and related reclassifications on the consolidated statements of cash flows for the year ended June 30, 2022.

Impact of COVID-19

During fiscal years 2020 and 2021, COVID-19 disruptions materially impacted the Company’s revenues and the Company recognized materially less revenues, or in some cases, no revenues, across a number of areas.

In fiscal year 2022, the Company’s operations and operating results were also impacted by temporary declines in attendance due to ongoing reduced tourism levels as well as an increase in COVID-19 cases during certain months of the fiscal year.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

It is unclear to what extent COVID-19, including variants thereof, or another pandemic or public health emergency, could result in renewed governmental and/or league restrictions on attendance or otherwise impact attendance of games at The Garden, demand for our sponsorship, tickets and other premium inventory or otherwise impact the Company’s operations and operating results.

Summary of Significant Accounting Policies

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and its subsidiaries.

For consolidated subsidiaries where the Company’s ownership is less than 100%, the relevant amounts attributable to investors other than the Company are reflected under “Nonredeemable noncontrolling interests,” “Net income (loss) attributable to nonredeemable noncontrolling interests” and “Comprehensive income (loss) attributable to nonredeemable noncontrolling interests” on the accompanying consolidated balance sheets, consolidated statements of operations and consolidated statements of comprehensive income (loss), respectively.

All significant intracompany transactions and accounts within the Company’s consolidated financial statements have been eliminated.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Use of Estimates

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Direct Operating Expenses

Direct operating expenses include compensation expense for the Company’s sports teams’ players and certain other team personnel, as well as NBA luxury tax, if applicable, NBA and NHL revenue sharing (net of escrow) and league assessments for the Company, event costs related to the presentation and production of the Company’s sporting events and other operating expenses, including expenses related to the Arena License Agreements which require the Company to pay arena license fees to MSG Entertainment in exchange for the right to use The Garden for games of the Knicks and the Rangers for a 35-year term.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Direct operating expenses include compensation expense for the Company’s sports teams’ players and certain other team personnel, as well as NBA luxury tax, if applicable, NBA and NHL revenue sharing (net of escrow) and league assessments for the Company, event costs related to the presentation and production of the Company’s sporting events and other operating expenses, including expenses related to the Arena License Agreements with MSG Entertainment (the “Arena License Agreements”) which require the Company to pay arena license fees to MSG Entertainment in exchange for the right to use The Garden for games of the Knicks and the Rangers for a 35 -year term.

Player Costs and Other Team Personnel Transactions, NBA Luxury Tax, NBA and NHL Escrow System/Revenue Sharing, League Assessments, and Arena License Expenses

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

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 more, sometimes substantially more, than the cap).

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

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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 more, sometimes substantially more, than the cap).

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 has been adjusted each season thereafter based upon league-wide revenues).

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

The luxury tax rates for teams with aggregate player salaries above such threshold start at $1.50 for each $1.00 of team salary above the threshold up to $5,000 and scale up to $3.25 for each $1.00 of team salary that is from $15,000 to $20,000 over the threshold, and an additional tax rate increment of $0.50 applies for each additional $5,000 (or part thereof) of team salary in excess of $20,000 over the threshold.

In addition, 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 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 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 2023-24 season was $5,000 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.

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.

In addition, beginning with the 2025-26 season, for teams that are taxpayers in at least three of the four previous seasons, the above tax rates are increased by $2.00 for each increment.

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

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The percentage of league-wide revenues paid as compensation and retained by the teams does not apply evenly across all teams and accordingly the Company may pay its players a higher or lower percentage of the Knicks’ revenues than other NBA teams.

Throughout each season, NBA teams withhold 10% of each player’s salary and contribute the withheld amounts to an escrow account.

If the league’s aggregate player compensation exceeds the designated percentage of league-wide revenues, some or all of such escrowed amounts are distributed equally to all NBA teams.

In the event that the league’s aggregate player compensation is below the designated percentage of league-wide revenues, the teams will remit the shortfall to the NBPA for distribution to the players.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

During the 2020-21 season, the escrow system above was eliminated and a new “Ten-and-Spread” system was put in place.

Under the Ten-and-Spread system, based upon league-wide revenues, aggregate player compensation will be reduced by up to 10% of each player’s salary.

If, for a particular season, compensation reductions in excess of 10% are needed, the excess will be divided by three and recouped via reductions to players’ compensation over the same season, and the subsequent two seasons.

The reduction of players’ salary for any one season is capped at 20% and carried over to the subsequent season as additional compensation reductions.

Each team is entitled to receive an equal one-thirtieth share of the compensation reductions up to 10% and the excess above 10% is allocated in proportion to each team’s player payroll.

During the 2020-21 season a “Ten-and-Spread” escrow system was put in place.

Under the Ten-and-Spread system, based upon league-wide revenues, aggregate player compensation was reduced by up to 10% of each player’s salary.

If, for a particular season, compensation reductions in excess of 10% were needed, the excess would be divided by three and recouped via reductions to players’ compensation over the same season, and the subsequent two seasons.

The reduction of players’ salary for any one season was capped at 20% and carried over to the subsequent season as additional compensation reductions.

Each team was entitled to receive an equal one-thirtieth share of the compensation reductions up to 10% and the excess above 10% was allocated in proportion to each team’s player payroll.

This system was in place until the new CBA took effect on July 1, 2023.

Effective July 1, 2023, a “Ten-and-Roll” escrow system was put in place.

Under the Ten-and-Roll system, throughout each season, NBA teams withhold 10% of each player’s salary.

If, for a particular season, compensation reductions in excess of 10% are needed, the excess will be recouped via certain reductions to player benefit contributions and if necessary, reductions to players’ compensation over subsequent seasons, with the reduction of players’ salary capped at 10%.

Each team is entitled to receive an equal one-thirtieth share of the compensation reductions up to 10% and the excess above 10% is allocated in proportion to each team’s player payroll.

The NBA also has a revenue sharing plan that generally requires the distribution of a pool of funds to teams with below-average net revenues (as defined in the plan), subject to reduction or elimination based on individual team market size and profitability.

4 unchanged sentences

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

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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.

4 unchanged sentences

If annual excess 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.

The NHL CBA provides for a revenue sharing plan which generally requires the distribution of a pool of funds approximating 6.055% of league-wide revenues to certain qualifying lower-revenue teams.

The NHL CBA provides for a revenue sharing plan which generally requires the distribution of a pool of funds not more than 6.055% of league-wide revenues to certain qualifying lower-revenue teams.

Under the NHL CBA, the pool is funded as follows:

(a) 50% from contributions by the top ten revenue earning teams (based on preseason and regular season revenues) in accordance with a formula;

(b) then from payments by teams participating in the playoffs, with each team contributing 35% of its gate receipts for each home playoff game (although this provision was waived for the 2020-21 season);

(b) then from payments by teams participating in the playoffs, with each team contributing 35% of its gate receipts for each home playoff game;

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

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See Note 7 for more information on the accounting for leases.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Advertising Expenses

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The Company measures the cost of employee services received in exchange for an award of equity-based instruments based on the grant date fair value of the award.

Share-based compensation cost is recognized in earnings over the period during which an employee is required to provide service in exchange for the award, except for restricted stock units granted to non-employee directors which, unless otherwise provided under the applicable award agreement, are fully vested, and are expensed at the grant date.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

directors which, unless otherwise provided under the applicable award agreement, are fully vested, and are expensed at the grant date.

The Company accounts for forfeitures as they occur.

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As the holders of Class A and Class B common stock are entitled to identical dividend and liquidation rights, the undistributed earnings are allocated on a proportionate basis to each class of common stock and the resulting basic and diluted net earnings (loss) per share attributable to common stockholders are, therefore, the same for both Class A and Class B common stock on both an individual and combined basis.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Cash and Cash Equivalents

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Restricted Cash

The Company’s restricted cash includes cash deposited in escrow accounts and, prior to the December 2021 credit facility amendments described below, cash required to be held under the Company’s revolving credit facilities.

The Company’s restricted cash includes cash deposited in escrow accounts.

Cash is required to be withheld from player salaries and deposited in an escrow account which is in the name of the Company pursuant to the NHL CBA.

That escrow account will be distributed to the players and NHL teams based on the provisions of the NHL CBA.

See Note 13 for more information related to the Company’s revolving credit facilities.

The carrying amount of restricted cash approximates fair value due to the short-term maturity of these instruments.

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The allowance for doubtful accounts is estimated based on the Company’s analysis of receivables aging, historical experience, as well as current and expected economic conditions and industry trends.

The Company had no allowance for doubtful accounts as of June 30, 2023 and 2022.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Company had no allowance for doubtful accounts as of June 30, 2024 and 2023.

Long-Lived and Indefinite-Lived Assets

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If the Company can support the conclusion that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company would not need to perform a quantitative impairment test for that reporting unit.

If the Company cannot support such a conclusion or the Company does not elect to perform the qualitative assessment, the first step of the goodwill impairment test is used to identify potential impairment by comparing the fair value of a reporting unit with its carrying amount, including goodwill.

If the Company cannot support such a conclusion or the Company does not elect to perform the qualitative assessment, a quantitative assessment is performed by comparing the fair value of a reporting unit with its carrying amount, including goodwill.

The Company generally determines the fair value of a reporting unit using an income approach, such as the discounted cash flow method, in instances when it does not perform the qualitative assessment of goodwill.

The amount of an impairment loss is measured as the amount by which a reporting unit’s carrying value exceeds its fair value determined in step one, not to exceed the carrying amount of goodwill.

The second step of the goodwill impairment test compared the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill.

If the carrying amount

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

of the reporting unit’s goodwill exceeded the implied fair value of that goodwill, an impairment loss was recognized in an amount equal to that excess.

The implied fair value of goodwill was determined in the same manner as the amount of goodwill that would be recognized in a business combination.

The amount of an impairment loss is measured as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill.

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.

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The Company generally determines the fair value of an indefinite-lived intangible asset using an income approach, such as the relief from royalty method, in instances when it does not perform the qualitative assessment of the intangible asset.

For other long-lived assets, including right-of-use lease assets and intangible assets that are amortized, the Company evaluates assets for recoverability when there is an indication of potential impairment.

For other long-lived assets, including ROU lease assets and intangible assets that are amortized, the Company evaluates assets for recoverability when there is an indication of potential impairment.

If the undiscounted cash flows from a group of assets being evaluated is less than the carrying value of that group of assets, the fair value of the asset group is determined and the carrying value of the asset group is written down to fair value.

The Company generally determines the fair value of a finite-lived intangible asset using an income approach, such as the discounted cash flow method.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Company’s equity method investments are carried at cost, plus or minus the Company’s share of net earnings or losses of the investment, subject to certain other adjustments.

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The Company measures equity investments without readily determinable fair values at cost, less any impairment, adjusted for observable price changes from orderly transactions for identical or similar investments of the same issuer.

Changes in observable price are reflected within Miscellaneous income (expense), net in the accompanying consolidated statements of operations.

For equity investments with readily determinable fair values, changes in the fair value of those investments are measured at each reporting date and are recorded within Miscellaneous income (expense), net in the accompanying consolidated statements of operations.

Changes in observable price are reflected within Miscellaneous (expense) income, net in the accompanying consolidated statements of operations.

For equity investments with readily determinable fair values, changes in the fair value of those investments are measured at each reporting date and are recorded within Miscellaneous (expense) income, net in the accompanying consolidated statements of operations.

The Company has investments in certain derivative instruments, including warrants, which are measured at fair value using the Black-Scholes option pricing model.

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

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

The Company recognizes the value of the equity method investments, equity investments with and without readily determinable fair values, and derivative instruments within Investments in the accompanying consolidated balance sheets.

1 unchanged sentence

The equity securities held in trust are considered trading account securities by the Company and purchases and sales of those securities are classified as operating activities in the Company’s consolidated statements of cash flows in accordance with ASC Subtopic 230-10-45-18 and 45-19.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Contingencies

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• Level III — Instruments whose significant value drivers are unobservable.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Recent Accounting Pronouncements

Recently Issued Accounting Pronouncements Not Yet Adopted

In March 2023, the Financial Accounting Standards Board issued ASU No.

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

2023-01, Leases (Topic 842):

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The new guidance is effective for the Company in the first quarter of fiscal year 2025.

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

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements.

In November 2023, the FASB issued ASU No.

2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures.

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

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

The ASU is effective for the Company’s Annual Report on Form 10-K for the fiscal year ending June 30, 2025 and subsequent interim periods, with early adoption permitted.

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

In December 2023, the FASB issued ASU No.

2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures.

The ASU enhances annual disclosures related to the effective income tax rate reconciliation and income taxes paid.

The ASU is effective for the Company’s Annual Report on Form 10-K for the fiscal year ending June 30, 2026 and subsequent interim periods, with early adoption permitted.

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

Revenue Recognition

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All revenue recognized in the consolidated statements of operations is considered to be revenue from contracts with customers in accordance with ASC Topic 606.

For the year ended June 30, 2023, the Company did not have any impairment losses on receivables or contract assets arising from contracts with customers.

For the years ended June 30, 2024, 2023 and 2022, the Company did not have any impairment losses on receivables or contract assets arising from contracts with customers.

The Company recognizes revenue when, or as, performance obligations under the terms of a contract are satisfied, which generally occurs when, or as, control of promised goods or services are transferred to customers.

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Contract fulfillment costs are expensed as the Company satisfies the related performance obligations.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Arrangements with Multiple Performance Obligations

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When the Company concludes that it does not control the good or service before transfer to the customer but arranges for another entity to provide the good or service, the Company acts as an agent and records revenue on a net basis in the amount it earns for its agency service.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Company’s revenue recognition policies that summarize the nature, amount, timing and uncertainty associated with each of the Company’s revenue sources are discussed further below.

8 unchanged sentences

Progress toward satisfaction of the Company’s suite license performance obligations is measured as access to the suite is provided to the licensee throughout the contractual term of the license.

For the year ended June 30, 2021, access to suites for Knicks and Rangers games was primarily sold by way of individual tickets, thus minimal suite license revenue was recognized.

Event-related revenue also includes food, beverage and merchandise sales which are recognized at the point goods are provided to customers.

1 unchanged sentence

Pursuant to the Arena License Agreements, the Knicks and the Rangers receive 50 % of net profits from the sales of food and beverages during their games at The Garden.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In addition to event-related revenue, MSG Sports maintains local media rights arrangements which provide for the licensing of team-related programming to MSG Networks.

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Receipt of league-wide revenues generally occurs at the time of communication or according to a specified timeline.

After suspending the 2019-20 seasons in March 2020 due to COVID-19, the NHL and NBA subsequently restarted their seasons, which were completed in September and October 2020, respectively.

As a result, revenue for the year ended June 30, 2021 includes revenue for league distributions that otherwise would have been recognized during the third and fourth quarters of fiscal year 2020.

MSG Sports also earns revenues from the sale of advertising in the form of sponsorships and signage, which are not related to any specific event.

MSG Sports also earns revenues from the sale of advertising in the form of sponsorships and signage, which are generally not related to any specific event.

The Company’s performance obligations with respect to this advertising are satisfied as the related benefits are delivered over the term of the respective agreements.

Amounts collected in advance of the Company’s satisfaction of its contractual performance obligations are recorded as a contract liability within deferred revenue and are recognized as the Company satisfies the related performance obligations.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table disaggregates the Company’s revenues by type of goods or services in accordance with the disclosure requirements per 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 years ended June 30, 2024, 2023 and 2022:

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

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Contract Balances

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

As of June 30, 2023, the Company had receivable balances related to escrow and player compensation recoveries of $ 1,544 recorded in Account s receivable, net.

As of June 30, 2024 and 2023, the Company had receivable balances related to escrow and player compensation recover ies of $ 0 and $ 1,544 , respectively, rec o rded in Accounts receivable, net.

As of June 30, 2022, the Company had receivable balances related to escrow and player compensation recover ies of $ 12,464 and $ 6,782 rec o rded in Accounts receivable, net and Other assets, respectively.

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

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

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

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

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

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

The non-current portion of deferred revenue primarily consists of amounts received from the NBA in December 2020 of league distributions in advance of the Company’s recognition.

The Company’s deferred revenue with MSG Networks was $ 0 , $ 0 and $ 260 as of June 30, 2023, 2022 and 2021, respectively.

There were no deferred revenue balances with related parties as of June 30, 2024, 2023 and 2022, respectively.

(d) Revenue recognized for the year ended June 30, 2024 relating to the deferred revenue balance as of July 1, 2023 was $ 144,936 .

Revenue recognized for the year ended June 30, 2022 relating to the deferred revenue balance as of July 1, 2021 was $ 121,271 .

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Transaction Price Allocated to the Remaining Performance Obligations

8 unchanged sentences

Thereafter 13,977

Computation of Earnings (Loss) per Common Share

The following table presents 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.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Computation of Earnings per Common Share

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

Years Ended June 30,

2024 2023 2022

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

Net income (loss) attributable to Madison Square Garden Sports Corp.’s stockholders $ 47,793 $ 51,131 $ ( 13,954 )

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

Net income attributable to Madison Square Garden Sports Corp.’s stockholders $ 58,771 $ 47,793 $ 51,131

Dividends to other-than-common stockholders (a)

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

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

$ 58,771 $ 45,751 $ 51,131

1 unchanged sentence

Weighted-average shares for basic EPS 24,011 24,090 24,246

24,090 24,246 24,129

Dilutive effect of shares issuable under share-based compensation plans 85 104 159

Weighted-average shares for diluted EPS 24,096 24,194 24,405

Weighted-average shares excluded from diluted earnings per share — — —

Basic earnings per common share attributable to Madison Square Garden Sports Corp’s stockholders $ 2.45 $ 1.90 $ 2.11

Diluted earnings per common share attributable to Madison Square Garden Sports Corp’s stockholders $ 2.44 $ 1.89 $ 2.10

_________________

Weighted-average shares excluded from diluted earnings (loss) per share — — 315

Basic earnings (loss) per common share attributable to Madison Square Garden Sports Corp’s stockholders $ 1.90 $ 2.11 $ ( 0.58 )

Diluted earnings (loss) per common share attributable to Madison Square Garden Sports Corp’s stockholders $ 1.89 $ 2.10 $ ( 0.58 )

(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.

1 unchanged sentence

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

Team Personnel Transactions amounted to $ 4,412 , $ 737 and $ 44,242 for the years ended June 30, 2023, 2022 and 2021, respectively.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Team personnel transactions were a net provision of $ 781 , $ 4,412 and $ 737 for the years ended June 30, 2024, 2023 and 2022, respectively.

Cash, Cash Equivalent and Restricted Cash

2 unchanged sentences

2023 June 30,

2021 June 30,

Captions on the consolidated balance sheets:

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Restricted cash (a)

61 — 7,134 12,821

Cash, cash equivalents and restricted cash on the consolidated statements of cash flows

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(a) See Note 2 for more information regarding the nature of restricted cash.

The Company’s leases primarily consist of the lease of the Company’s corporate offices under the Sublease Agreement with MSG Entertainment (the “Sublease Agreement”) for the Company’s principal executive offices at Two Pennsylvania Plaza in New York, until April 2023, the lease of CLG performance center in Los Angeles, CA, and an aircraft lease entered into in June 2023.

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

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In addition, we are party to the Arena License Agreements, which are long term license agreements with MSG Entertainment that end June 30, 2055 that allow the Knicks and the Rangers to play their home games at The Garden.

The Company accounts for the rights of use of The Garden pursuant to the Arena License Agreements as leases under the ASC Topic 842, Leases .

The Company determines whether an arrangement contains a lease at the inception of the arrangement.

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Variable lease costs for both operating and finance leases, if any, are recognized as incurred and such costs are excluded from lease balances recorded on the consolidated balance sheet.

The Company is party to a sublease agreement with MSG Entertainment for the Company’s principal executive offices at Two Pennsylvania Plaza in New York.

The sublease right of use 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 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.

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”).

In accordance with the terms of the Sublease Agreement and the New MSGE Lease Agreement, the lease term of the Sublease Agreement was extended until October 31, 2024.

The Company has accounted for this extension as a lease

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

remeasurement and remeasured the right-of-use asset and operating lease liability utilizing the Company’s incremental borrowing rate as of the date of remeasurement.

The Company has 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.

In accordance with the terms of the Sublease Agreement, the Company has committed to enter into a new sublease agreement with MSG Entertainment for a lease term equivalent to the New MSGE Lease Agreement term, which ends January 31, 2046.

In addition, in connection with the New MSGE Lease Agreement, the Company has entered into a commitment whereby if the New MSGE Lease Agreement were terminated under certain circumstances, the Company would be required to enter into a new lease for executive offices in Two Pennsylvania Plaza directly with the landlord, with a consistent lease term through January 31, 2046.

As the Company has not yet entered into a new sublease for or taken possession of the new executive office space at Two Pennsylvania Plaza, no additional right-of-use assets or operating lease liabilities have been recorded as of June 30, 2023 related to the commitments discussed above.

As the Company has not yet entered into a new sublease for or taken possession of the new executive office space at Two Pennsylvania Plaza, no additional ROU assets or operating lease liabilities have been recorded as of June 30, 2024 related to the commitments discussed above.

In addition, we are party to long term leases with MSG Entertainment through June 30, 2055 that allow the Knicks and the Rangers to play their home games at The Garden.

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 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.

At the time of the Sphere Distribution, The Garden was not available for use due to the government-mandated suspension of events in response to COVID-19.

As a result, the Company was not required to pay license fees under the Arena License Agreements until games resumed at The Garden.

On December 16, 2020 and January 14, 2021, respectively, the Knicks and the Rangers resumed playing their homes games at The Garden as part of their 2020-21 seasons.

However, fans were initially prohibited from attending games due to government-mandated assembly restrictions.

Effective February 23, 2021, New York venues with at least a 10,000-person capacity were permitted to operate at 10% capacity, and the Knicks and the Rangers began playing games at The Garden with a limited number of fans in attendance on February 23 and 26, 2021, respectively.

When games were played at The Garden by the Knicks and the Rangers either without fans in attendance or with limited fans in attendance due to government mandated capacity constraints, the applicable license fees under the Arena License Agreements were substantially reduced.

Effective May 19, 2021, event venues such as The Garden were permitted to host guests at full capacity, subject to certain restrictions, including, for example, restrictions for unvaccinated guests.

As a result, the Knicks played three home playoff games with ticket sales of approximately 15,000 - 16,500 per game during the fiscal year ended June 30, 2021.

As a result of the unique circumstances due to COVID-19 during the prior season, the Company agreed to make certain variable lease payments associated with the Knicks playoff games during the 2021 NBA playoffs.

Costs associated with such payments were considered variable lease costs for the year ended June 30, 2021.

Effective July 1, 2021, the Company began paying license fees under the Arena License Agreements in their full contractual amounts.

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

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Rangers, and then for each subsequent year, the license fees are 103 % of the license fees for the immediately preceding contract year.

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.

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

The lease right of use asset and liability were recorded in the Company’s accompanying consolidated balance sheet as of June 30, 2023 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 liability were recorded in the Company’s accompanying consolidated balance sheet as of June 30, 2023 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.

As of June 30, 2024, the Company’s existing operating leases, which are recorded in the accompanying consolidated financial statements, have remaining lease terms ranging from 4 months to 31 years.

2 unchanged sentences

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

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table summarizes the ROU assets and lease liabilities recorded on the Company’s consolidated balance sheet as of June 30, 2024 and 2023:

8 unchanged sentences

Total lease liabilities $ 800,219 $ 796,182

_________________

(a) As of June 30, 2024, Operating lease liabilities, current and Operating leases liabilities, noncurrent included balances of $ 43,689 and $ 715,507 , respectively, that are payable to MSG Entertainment.

6 unchanged sentences

Short-term lease cost Direct operating expenses — 185 161

Variable lease cost (a)

Direct operating expenses — — 1,209

Total lease cost $ 77,505 $ 70,870 $ 70,922

(a) As a result of the unique circumstances due to COVID-19, the Company agreed to make certain variable lease payments to Sphere Entertainment associated with the Knicks playoff games during the 2021 NBA playoffs.

Supplemental Information

For the years ended June 30, 2024 and 2023, cash paid for amounts included in the measurement of lease liabilities was $ 52,700 and $ 44,986 , respectively.

For the years ended June 30, 2023 and 2022, non-cash additions to right-of-use assets and operating lease liabilities was $ 45,357 and $ 1,244 , respectively.

The weighted average remaining lease term for operating leases recorded on the accompanying consolidated balance sheet as of June 30, 2023 and 2022 was 30.5 years and 32.7 years, respectively.

The weighted average discount rate was 7.10 % and 7.13 % as of June 30, 2023 and 2022, respectively, and represented the Company’s estimated incremental borrowing rate, assuming a secured borrowing, based on the remaining lease term at the time of either (i) adoption of the standard or (ii) the period in which the lease term expectation commenced or was modified .

For the years ended June 30, 2024 and 2023, non-cash additions to ROU assets and operating lease liabilities was $ 789 and $ 45,357 , respectively.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The weighted average remaining lease term for operating leases recorded on the accompanying consolidated balance sheet as of June 30, 2024 and 2023 was 29.8 years and 30.5 years, respectively.

The weighted average discount rate was 7.10 % as of June 30, 2024 and 2023 and represented the Company’s estimated incremental borrowing rate, assuming a secured borrowing, based on the remaining lease term at the time of either (i) adoption of the standard or (ii) the period in which the lease term expectation commenced or was modified .

Maturities of operating lease liabilities as of June 30, 2024 are as follows:

15 unchanged sentences

Equipment 22,878 21,587 2 years to 20 years

Furniture and fixtures 631 786 4 years to 10 years

Leasehold improvements 564 564 Shorter of term of lease or life of improvement

Furniture and fixtures 555 631 4 years to 10 years

Construction in progress 27 218

6 unchanged sentences

During the first quarter of fiscal year 2024, the Company performed its annual impairment test of goodwill and determined that there were no impairments of goodwill identified as of the impairment test date.

The Company’s goodwill is $ 226,523 and $ 226,955 as of June 30, 2023 and 2022, respectively.

The decrease in goodwill was attributable to the Company’s disposal of CLG in April 2023.

The Company’s indefinite-lived intangible assets as of June 30, 2023 and 2022 are as follows:

2023 June 30,

The Company’s goodwill was $ 226,523 as of June 30, 2024 and 2023.

The Company’s indefinite-lived intangible assets as of June 30, 2024 and 2023 were as follows:

Sports franchises $ 102,564

Photographic related rights 1,080

$ 103,644 $ 112,144

During the first quarter of fiscal year 2024, the Company performed its annual impairment test of identifiable indefinite-lived intangible assets and determined that there were no impairments identified.

The decrease in the indefinite-lived intangible assets was attributable to the Company’s disposal of CLG in April 2023.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Company had no intangible assets subject to amortization as of June 30, 2023 as a result of the disposal of CLG in April 2023.

The Company’s intangible assets subject to amortization as of June 30, 2022 were as follows:

June 30, 2022 Gross Accumulated

Amortization Net

Trade names $ 2,300 $ ( 2,262 ) $ 38

Non-compete agreements 2,400 ( 2,360 ) 40

Other intangibles 1,200 ( 642 ) 558

$ 5,900 $ ( 5,264 ) $ 636

The Company had no intangible assets subject to amortization as of June 30, 2024 and 2023 as a result of the disposal of CLG in April 2023.

Amortization expense for intangible assets was $ 0 , $ 167 and $ 1,059 for the years ended June 30, 2024, 2023 and 2022, respectively.

The Company’s investments in nonconsolidated affiliates which are accounted for under the equity method of accounting, equity investments with readily determinable fair values, equity investments without readily determinable fair values, and derivative instruments, which are reported within Investments in the accompanying consolidated balance sheets consisted of the following:

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

2024 June 30,

Equity method investments:

NRG $ 7,536 $ 11,948

Other equity method investments 5,038 —

Equity investments with readily determinable fair values:

1 unchanged sentence

(“Xtract One”) common stock 17,380 22,408

Other equity investments with readily determinable fair values 14,406

Other equity investments with readily determinable fair values held in trust under the Company’s Executive Deferred Compensation Plan 18,837 14,406

Equity investments without readily determinable fair values (a)

2 unchanged sentences

Total investments $ 62,543 $ 67,374

Equity investments with readily determinable fair values:

Other equity investments with readily determinable fair values $ 2,736

Equity investments without readily determinable fair values (a)

Total investments $ 4,736

_________________

5 unchanged sentences

The Company recorded the investment in NRG at fair value as an equity method investment.

The Company deconsolidated the CLG business in the fourth fiscal quarter of 2023 and recorded a loss of $ 1,031 within Miscellaneous income (expense) , net within the Company’s consolidated statement of operations for the year ended June 30, 2023.

The Company deconsolidated the CLG business in the fourth fiscal quarter of 2023 and recorded a loss of $ 1,031 within Miscellaneous (expense) income, net within the Company’s consolidated statement of operations for the year ended June 30, 2023.

For the year ended June 30, 2024, the Company recognized losses related to the investment in NRG of $ 4,412 , including other than temporary impairments, in Miscellaneous (expense) income, net within the Company’s consolidated statement of operations.

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

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Equity Investments with Readily Determinable Fair Values

6 unchanged sentences

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.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

June 30, 2023

Cost Basis Carrying Value / Fair Value

June 30, 2024 June 30, 2023

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

Xtract One common stock $ 7,721 $ 17,380 $ 6,783 $ 22,408

1 unchanged sentence

$ 24,231 $ 36,217 $ 20,555 $ 36,814

June 30, 2022

Cost Basis Carrying Value / Fair Value

Other equity investments with readily determinable fair values $ 3,197 $ 2,736

$ 3,197 $ 2,736

The following table summarizes the realized and unrealized gains on equity investments with readily determinable fair values, recorded within Miscellaneous income (expense), net within the Company’s consolidated statement of operations, for the years ended June 30, 2023 and 2022.

The Company did not have any investments in the year ended June 30, 2021, and therefore no gains or losses were recorded.

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 Company’s consolidated statement of operations, for the years ended June 30, 2024, 2023 and 2022:

Years Ended June 30,

Unrealized gain - Xtract One common stock $ 15,625 $ —

2024 2023 2022

Unrealized (loss) gain - Xtract One common stock $ ( 5,966 ) $ 15,625 $ —

Unrealized gain (loss) - other equity investments with readily determinable fair values 1,694 1,095 ( 461 )

Realized loss - other equity investments with readily determinable fair values ( 4 ) —

Realized gain (loss) - other equity investments with readily determinable fair values 55 ( 4 ) —

$ ( 4,217 ) $ 16,716 $ ( 461 )

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Fair Value Measurements

2 unchanged sentences

Money market accounts I $ 37,594 $ 17,330

Time deposit I 1,457 56,082

Time deposits I 49,510 1,457

Equity investments I 36,217 36,814

2 unchanged sentences

Level I Inputs

Assets that are classified within Level I of the fair value hierarchy and are valued using observable inputs that reflect quoted prices for identical assets in active markets.

The carrying amount of the Company’s money market accounts and time deposit approximates fair value due to their short-term maturities.

Assets that are classified within Level I of the fair value hierarchy are valued using observable inputs that reflect quoted prices for identical assets in active markets.

The carrying amount of the Company’s money market accounts and time deposits approximates fair value due to their short-term maturities.

Refer to Note 10 for further details regarding equity investments.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Level III Inputs

The Company’s level III assets consist of warrants entitling the Company to acquire additional common shares of Xtract One.

The Company’s level III assets consist of warrants entitling the Company to acquire additional common stock of Xtract One.

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

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

The following are key assumptions used to calculated the fair value of the warrants as of June 30, 2023:

Expected term 2.34 years

The following are key assumptions used to calculate the fair value of the warrants as of June 30, 2024 and 2023:

June 30, 2024 June 30, 2023

Expected term 1.80 years 2.34 years

Expected volatility 64.15 % 74.43 %

3 unchanged sentences

Balance at beginning of period $ 13,098 $ —

Purchase of warrants 3,257

Unrealized gains on warrants 9,841

Purchases of warrants 215 3,257

Unrealized (losses) gains on warrants ( 6,318 ) 9,841

Balance at ending of period $ 6,995 $ 13,098

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

12 unchanged sentences

See Note 13 for more information.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Commitments and Contingencies

11 unchanged sentences

_________________

(a) Consist principally of the Company’s obligations under employment agreements that the Company has with its sports teams’ personnel that are generally guaranteed regardless of employee injury or termination.

(a) Consist primarily of the Company’s obligations under employment agreements that the Company has with its sports teams’ personnel that are generally guaranteed regardless of employee injury or termination.

(b) Consist primarily of amounts earned under employment agreements that the Company has with certain of its sports teams’ personnel.

3 unchanged sentences

See Note 13 for further details of the outstanding balances under the Knicks Revolving Credit Facility, the Rangers Revolving Credit Facility and the Rangers NHL Advance Agreement (as defined below).

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Legal Matters

2 unchanged sentences

Knicks Revolving Credit Facility

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

The 2016 Knicks Revolving Credit Facility would have matured and any unused commitments thereunder would have expired on September 30, 2021.

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

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

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

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

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

The Knicks Credit Agreement provides for a senior secured revolving credit facility of up to $ 275,000 (the “Knicks Revolving Credit Facility”) to fund working capital needs and for general corporate purposes.

1 unchanged sentence

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

All borrowings under the 2021 Knicks Revolving Credit Facility are subject to the satisfaction of certain customary conditions.

All borrowings under the Knicks Revolving Credit Facility are subject to the satisfaction of certain customary conditions, including a representation as to the absence of a bankruptcy event (as defined in the Knicks Credit Agreement) with respect to the

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

obligor under any local media rights agreement.

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

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

During the year ended June 30, 2023, the Company borrowed an additional $ 55,000 and made principal repayments of $ 40,000 under the 2021 Knicks Revolving Credit Facility.

During the year ended June 30, 2024, the Company borrowed an additional $ 40,000 under the Knicks Revolving Credit Facility.

The outstanding balance under the Knicks Revolving Credit Facility was $ 275,000 as of June 30, 2024, which was recorded as Long-term debt in the accompanying consolidated balance sheet.

1 unchanged sentence

During the year ended June 30, 2024 the Company made interest payments of $ 18,481 in respect of the Knicks Revolving Credit Facility.

In addition, on July 10, 2023, the Company borrowed an additional $ 25,000 under the 2021 Knicks Revolving Credit Facility.

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

12 unchanged sentences

As of June 30, 2024, Knicks LLC was in compliance with this financial covenant .

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Knicks Holdings Credit Facility

3 unchanged sentences

Rangers Revolving Credit Facility

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

The 2017 Rangers Revolving Credit Facility would have matured and any unused commitments thereunder would have expired on January 25, 2022.

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

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

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

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

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

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

1 unchanged sentence

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

All borrowings under the 2021 Rangers Revolving Credit Facility are subject to the satisfaction of certain customary conditions.

Borrowings under the 2021 Rangers Revolving Credit Facility bear interest at a floating rate, which at the option of Rangers LLC may be either (i) a base rate plus a margin ranging from 0.500 % to 1.000 % per annum or (ii) term SOFR plus a credit spread adjustment of 0.100 % per annum plus a margin ranging from 1.500 % to 2.000 % per annum depending on the credit rating applicable to the NHL’s league-wide credit facility.

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

Borrowings under the Rangers Revolving Credit Facility bear interest at a floating rate, which at the option of Rangers LLC may be either (i) a base rate plus a margin ranging from 0.500 % to 1.000 % per annum or (ii) term SOFR plus a credit spread adjustment of 0.100 % per annum plus a margin ranging from 1.500 % to 2.000 % per

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

annum depending on the credit rating applicable to the NHL’s league-wide credit facility.

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

During the year ended June 30, 2023, the Company borrowed $ 160,000 and made principal repayments of $ 100,000 under the 2021 Rangers Revolving Credit Facility.

The outstanding balance under the 2021 Rangers Revolving Credit Facility was $ 60,000 as of June 30, 2023, which was recorded as Long-term debt in the accompanying consolidated balance sheet.

During the year ended June 30, 2024, the Company borrowed an additional $ 35,000 and made principal repayments of $ 95,000 under the Rangers Revolving Credit Facility.

There were no borrowings under the Rangers Revolving Credit Facility as of June 30, 2024.

The interest rate on the Rangers Revolving Credit Facility as of June 30, 2024 was 7.18 %.

3 unchanged sentences

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

Rangers LLC is required to make mandatory prepayments in certain circumstances, including without limitation if qualified revenues are less than 17 % of the maximum available amount under the 2021 Rangers Revolving Credit Facility.

In addition to the financial covenant described above, the Rangers Credit Agreement and related security agreement contain certain customary representations and warranties, affirmative covenants and events of default.

6 unchanged sentences

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

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

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

As of June 30, 2024, Rangers LLC was in compliance with this financial covenant .

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Rangers NHL Advance Agreement

On March 19, 2021, Rangers LLC, Rangers Holdings, LLC and MSG NYR Holdings LLC entered into an advance agreement with the NHL (the “Rangers NHL Advance Agreement”) pursuant to which the NHL advanced $ 30,000 to Rangers LLC.

The advance is to be utilized solely and exclusively to pay for Rangers LLC operating expenses.

The advance is required to be utilized solely and exclusively to pay for Rangers LLC operating expenses.

All obligations under the Rangers NHL Advance Agreement are senior to and shall have priority over all secured and other indebtedness of Rangers LLC, Rangers Holdings, LLC and MSG NYR Holdings LLC.

5 unchanged sentences

Deferred Financing Costs

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

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

2024 June 30,

1 unchanged sentence

Other assets 1,665 2,810

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Benefit Plans

12 unchanged sentences

The actuarial gain of $ 18 , included in the change in benefit obligation for pension benefits in the year ended June 30, 2024, is primarily the result of increases in the discount rate and demographic experience as of June 30, 2024.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Amounts recognized in the consolidated balance sheets as of June 30, 2024 and 2023 consist of:

4 unchanged sentences

Actuarial loss $ ( 458 ) $ ( 543 )

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table presents components of net periodic benefit cost for the Pension Plans included in the accompanying consolidated statements of operations for the years ended June 30, 2024, 2023 and 2022.

Components of net periodic benefit cost are reported in Miscellaneous income (expense), net .

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

Years Ended June 30,

6 unchanged sentences

(a) For the years ended June 30, 2024, 2023 and 2022, lump-sum payments totaling $ 212 , $ 253 and $ 83 , respectively, were distributed to vested participants of the Excess Cash Balance Plan, triggering the recognition of settlement losses in accordance with ASC Topic 715.

Due to these pension settlements, the Company was required to remeasure its pension plan liability as of June 30, 2023, June 30, 2022, and June 31, 2021 for the years ended June 30, 2023, 2022 and 2021, respectively.

Discount rates used for the projected benefit obligation and interest cost were 4.38 % and 2.97 % as of June 30, 2023, respectively, 1.89 % and 0.86 % as of June 30, 2022, respectively, and 1.73 % and 0.91 % as of June 30, 2021, respectively.

Additionally, settlement charges of $ 30 , $ 9 and $ 47 were recognized in Miscellaneous income (expense), net for the years ended June 30, 2023, 2022 and 2021, respectively.

Other pre-tax changes benefit obligations recognized in other comprehensive income (loss) for the years ended June 30, 2023, 2022 and 2021 are as follows:

Due to these pension settlements, the Company was required to remeasure its pension plan liability as of June 30, 2024, June 30, 2023, and June 30, 2022, respectively.

Assumptions used in calculating the settlement loss recognized include the discount rate used in remeasuring the projected benefit obligation which was 5.53 % as of June 30, 2024, 5.57 % as of June 30, 2023, and 4.38 % as of June 30, 2022.

Settlement charges of $ 30 , $ 30 and $ 9 were recognized in Miscellaneous (expense) income, net for the years ended June 30, 2024, 2023 and 2022, respectively.

Other pre-tax changes benefit obligations recognized in other comprehensive income for the years ended June 30, 2024, 2023 and 2022 are as follows:

Years Ended June 30,

2024 2023 2022

Actuarial gain (loss), net $ 215 $ 1,078 $ ( 38 )

Actuarial gain, net $ 18 $ 215 $ 1,078

Recognized actuarial loss 37 18 133

Settlement loss recognized

Total recognized in other comprehensive income (loss) $ 263 $ 1,220 $ 112

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Total recognized in other comprehensive income $ 85 $ 263 $ 1,220

Weighted-average assumptions used to determine benefit obligations (made at the end of the period) as of June 30, 2024 and 2023 are as follows:

9 unchanged sentences

This model was developed by examining the yields on selected highly rated corporate bonds.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Estimated Future Benefit Payments

6 unchanged sentences

Fiscal years ending June 30, 2030 – 2034 1,728

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Defined Contribution Pension Plans

24 unchanged sentences

Plan Name EIN Pension Plan Number 2024 2023 2024 2023 2022 Surcharge Imposed Expiration Date of CBA

National Basketball Association Players’ Pension Plan

832172122 001 Yellow Yellow Implemented $ 4,113 $ — $ 3,526 No 6/1/2030 (with certain termination rights becoming effective 6/2029)

National Basketball Association Players’ Pension Plan 832172122 001 Yellow Yellow Implemented $ 4,254 $ 4,113 $ — No 6/1/2030 (with certain termination rights becoming effective 6/2029)

2/2/2023 2/1/2022

National Hockey League Players’ Retirement Benefit Plan

462555356 001 Green Green No 1,413 1,276 1,153 No 9/15/26

National Hockey League Players’ Retirement Benefit Plan 462555356 001 Green Green No 1,198 1,413 1,276 No 9/15/2026

4/30/2023 4/30/2022

11 unchanged sentences

In accordance with ASC Topic 710, the Company remeasures the deferred compensation liability, with a charge (or credit) to compensation cost in the Company’s consolidated statements of operations, to reflect changes in the fair value of the assets owed to the participants of the Deferred Compensation Plan.

The Company remeasures the fair value of the assets held in trust in accordance with ASC Topic 321, Investments – Equity Securities , and recognizes unrealized gains and losses in Miscellaneous income (expense), net in the Company’s consolidated statements of operations.

The Company remeasures the fair value of the assets held in trust in accordance with ASC Topic 321, Investments – Equity Securities , and recognizes unrealized gains and losses in Miscellaneous (expense) income, net in the Company’s consolidated statements of operations.

The Company recorded compensation expense/(compensation cost credits) of $ 1,749 , $ 1,091 , and $( 461 ) for the years ended June 30, 2024, 2023, and 2022, respectively, within Selling, general and administrative expenses to reflect the remeasurement of the Deferred Compensation Plan liability.

In addition, the Company recorded gains/(losses) of $ 1,091 and $( 461 ), for the years ended June 30, 2023 and 2022, respectively, within Miscellaneous income (expense), net to reflect the remeasurement of the fair value of assets under the Deferred Compensation Plan.

In addition, the Company recorded gains/(losses) of $ 1,749 , $ 1,091 , and $( 461 ) for the years ended June 30, 2024, 2023, and 2022, respectively, within Miscellaneous (expense) income, net to reflect the remeasurement of the fair value of assets under the Deferred Compensation Plan.

Amounts recognized in the consolidated balance sheets as of June 30, 2024 and 2023 related to the Deferred Compensation Plan consist of:

30 unchanged sentences

Share-based Compensation Expense

Share-based compensation expense is generally recognized straight-line over the vesting term of the award, which typically provides for three-year cliff or graded vesting subject to continued employment.

For awards that are graded vesting and subject to performance conditions, in addition to continued employment, the Company uses the graded-vesting method to recognize share-based compensation expense.

Share-based compensation expense was recognized in the consolidated statements of operations as a component of direct operating expenses or selling, general and administrative expenses.

Share-based compensation expense recorded during the years

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

Share-based compensation expense recorded during the years ended June 30, 2024, 2023 and

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

ended June 30, 2023, 2022 and 2021 was $ 25,203 , $ 24,245 and $ 30,437 , respectively.

2022 was $ 21,291 , $ 25,203 and $ 24,245 , respectively.

There were no costs related to share-based compensation in operations that were capitalized for the years ended June 30, 2024, 2023 and 2022.

1 unchanged sentence

The cost is expected to be recognized over a weighted-average period of approximately 1.9 years for unvested RSUs and PSUs.

As a result of an agreement to settle an action (the “Settlement”) filed by a purported stockholder of the Company derivatively on behalf of the Company against certain directors of the Company who are members of the Dolan family and against the directors of the Company who were members of the Compensation Committee, Mr.

Dolan voluntarily relinquished a one-time equity award granted by the Company in October 2018 pursuant to his 2018 employment agreement, and the related award agreements were canceled.

The one-time equity award included:

32 target performance stock units and three grants of stock options to purchase an aggregate of 449 shares of Class A Common Stock, which were to vest over a four-year period.

The Settlement became effective October 8, 2020 and therefore, upon cancellation, the Company recorded previously unrecognized share-based compensation expense of approximately $ 7,400 related to this award during the year ended June 30, 2021.

Restricted Stock Units Award Activity

12 unchanged sentences

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

To fulfill the employees’ statutory minimum tax withholding obligations for the applicable income and other employment taxes, 117 of these RSUs and PSUs, with an aggregate value of $ 17,897 , inclusive of $ 4,233 related to Sphere Entertainment and MSG Entertainment employees (who vested in the Company’s RSUs and PSUs), were retained by the Company and the taxes paid are reflected as financing activity in the accompanying consolidated statement of cash flows for the year ended June 30, 2023.

To fulfill the employees’ statutory minimum tax withholding obligations for the applicable income and other employment taxes, 56 of these RSUs and PSUs, with an aggregate value of $ 9,195 , inclusive of $ 4 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 financing activity in the accompanying consolidated statement of cash flows for the year ended June 30, 2024.

The fair value of RSUs and PSUs that vested during the years ended June 30, 2023 and 2022 was $ 40,944 and $ 40,490 , respectively.

The weighted-average fair value per share at grant date of RSUs and PSUs granted during the years ended June 30, 2023 and 2022 was $ 165.33 and $ 162.09 , respectively.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Stock Options Award Activity

The following table summarizes activity related to the Company’s stock options for the year ended June 30, 2024:

Number of Weighted-Average Exercise Price Per Share (a)

Time Vesting Options Weighted-Average Exercise Price Per Share (a)

Weighted-Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value

Time Vesting Options

Balance as of June 30, 2023 94 $ 138.78 4.46 $ 4,623

6 unchanged sentences

See above for a discussion of the treatment of options in connection with the Sphere Distribution.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Stock Repurchase Program

Amounts in this footnote are in thousands, except for the number of shares repurchased and per share data.

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.

9 unchanged sentences

The Company has treated the initial and final shares of Class A Common Stock delivered as treasury shares as of the date the shares were physically delivered in computing the weighted average shares of outstanding Class A Common Stock for both basic and diluted earnings per share.

During the year ended June 30, 2024, the Company did no t repurchase any shares under its share repurchase program.

As of June 30, 2024, the Company had $ 184,639 of availability remaining under its stock repurchase authorization.

Related Party Transactions

As of June 30, 2023, members of the Dolan family including trusts for members of the Dolan family (collectively, the “Dolan Family Group”), for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, collectively beneficially own 100 % of the Company’s outstanding Class B Common Stock and own approximately 3.2 % of the Company’s outstanding Class A Common Stock.

As of June 30, 2024, certain members of the Dolan family, including certain trusts for members of the Dolan family (collectively, the “Dolan Family Group”), for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, collectively beneficially own 100 % of the Company’s outstanding Class B Common Stock and own 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, represent approximately 70.9 % of the aggregate voting power of the Company’s outstanding common stock.

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(“AMC Networks”).

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Current Related Party Arrangements

The Company is party to the following agreements and/or arrangements with MSG Entertainment as of June 30, 2023:

• Arena License Agreements, entered into in April 2020, 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 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) provides day of game services, and (vi) provides other general services within The Garden;

The Company was party to the following agreements and/or arrangements with MSG Entertainment as of June 30, 2024:

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

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

In addition, under this agreement, the Company is charged by MSG Entertainment for sales and service staff and overhead associated with the sales of sponsorship assets.

As of January 1, 2023, the Company has been providing certain services that were previously provided by MSG Entertainment under the agreements on an interim basis, and MSG Entertainment fully reimburses the Company for the costs of providing such services;

• Team sponsorship allocation agreement with MSG Entertainment, pursuant to which the teams continue receiving an allocation of sponsorship and signage revenues associated with the sponsorship agreements;

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

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

• Single night rental commission agreement, pursuant to which the Company may, from time to time, sell (or make referrals for sales of) licenses for the use of suites at The Garden for individual MSG Entertainment events in exchange for a commission and reimbursement for sales and service staff and overhead associated with the ticket sales on behalf of MSG Entertainment;

• Interest-bearing advances to MSG Entertainment in connection with the construction of new premium hospitality suites at The Garden;

• Aircraft sharing agreements pursuant to which MSG Entertainment has agreed from time to time to make its aircraft and aircraft it leases from other related parties available to the Company for lease on a “time sharing” basis;

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

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

• Services agreement (the “Services Agreement”) pursuant to which the Company (i) receives certain services from MSG Entertainment, such as information technology, accounts payable, payroll, human resources, and other corporate

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

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

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

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

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

The Company is also party to the following agreements and/or arrangements with Sphere Entertainment (including through its subsidiary MSG Networks) as of June 30, 2023:

The Company was also party to the following agreements and/or arrangements with Sphere Entertainment (including through its subsidiary MSG Networks) as of June 30, 2024:

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

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

• Arrangements pursuant to which the Company provides Sphere Entertainment with certain business operations services;

• Arrangements pursuant to which the Company provides sponsorship rights to Sphere Entertainment;

• Other agreements with Sphere Entertainment in connection with the Sphere Distribution, including a distribution agreement, a tax disaffiliation agreement and an employee matters agreement and certain other arrangements;

• 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.

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

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

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

(i) the Company’s Executive Chairman and Chief Executive Officer with Sphere Entertainment and, following the MSGE Distribution, with MSG Entertainment as well;

(ii) the Company’s Vice Chairman with AMC Networks, Sphere Entertainment and, following the MSGE Distribution, with MSG Entertainment as well, and (iii) the Company’s Executive Vice President with Sphere Entertainment and AMC Networks.

The Company also previously shared such costs for the Company’s former Chief Executive Officer with Sphere Entertainment through March 31, 2022.

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

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

(i) the Company’s Executive Chairman with Sphere Entertainment and, following the MSGE Distribution, MSG Entertainment;

(ii) the Company’s Vice Chairman with AMC Networks, Sphere Entertainment and, following the MSGE Distribution, MSG Entertainment, and (iii) the Company’s Executive Vice President with Sphere Entertainment and AMC Networks.

The Company also previously shared such costs for the Company’s former Chief Executive Officer with Sphere Entertainment through March 31, 2022.

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

From time to time the Company has entered into, and may in the future enter into, arrangements with 605, LLC.

Dolan, a former director of the Company and spouse of James L.

Dolan, the Company’s Executive Chairman and a director, is the founder, Non-Executive Chairman and former Chief Executive Officer of 605, LLC.

Dolan and Kristin A.

Dolan own 50 % of 605, LLC.

605, LLC has provided audience measurement and data analytics services to the Company and its subsidiaries in the ordinary course of business.

Revenues and Operating Expenses (Credits)

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Operating expenses (credits):

Expense pursuant to Services agreement with MSG Entertainment 36,458 38,102 36,730

Rent expense pursuant to Sublease agreement with MSG Entertainment 2,918 2,978 2,636

Expense pursuant to the Services Agreement 37,346 36,458 38,102

Rent expense pursuant to Sublease Agreement 3,720 2,918 2,978

Costs associated with the Sponsorship sales and service representation agreements 19,319 19,329 22,316

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Other costs associated with the Arena License Agreements 41,916 36,240 33,894

Other operating expenses (credits), net 84 1,288 ( 302 )

Other operating (credits) expenses, net ( 1,867 ) 84 1,288

_________________

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

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2024 2023 2022

Current expense (benefit):

Current expense:

Federal $ 27,605 $ 23,161 $ —

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54,032 29,271 572

Deferred expense (benefit):

Deferred (benefit) expense:

Federal ( 3,506 ) ( 643 ) 18,664

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( 7,135 ) 15,022 24,480

Income tax expense (benefit) $ 44,293 $ 25,052 $ ( 73,421 )

Income tax expense $ 46,897 $ 44,293 $ 25,052

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The income tax expense (benefit) attributable to operations differs from the amount derived by applying the statutory federal rate to pre-tax income principally due to the effect of the following items:

The income tax expense attributable to operations differs from the amount derived by applying the statutory federal rate to pre-tax income principally due to the effect of the following items:

Years Ended June 30,

2024 2023 2022

Federal tax expense (benefit) at statutory federal rate $ 18,883 $ 15,525 $ ( 18,757 )

Federal tax expense at statutory federal rate $ 22,190 $ 18,883 $ 15,525

State income taxes, net of federal benefit 18,348 15,066 8,763

Change in the estimated applicable tax rate used to determine deferred taxes 29 1,788 ( 3,191 )

1,788 ( 3,191 ) ( 896 )

Capital loss carryover — ( 2,728 ) —

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Nondeductible disability insurance premiums expense 1,349 1,227 964

1,227 964 392

Other nondeductible expenses 631 558 379

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Other ( 1,270 ) 76 137

Income tax expense (benefit) $ 44,293 $ 25,052 $ ( 73,421 )

The tax effects of temporary differences which give rise to significant portions of the deferred tax assets and liabilities at June 30, 2023 and 2022 are as follows:

Income tax expense $ 46,897 $ 44,293 $ 25,052

The tax effects of temporary differences which give rise to significant portions of the deferred tax assets and liabilities as of June 30, 2024 and 2023 are as follows:

Deferred tax asset:

Net operating loss carryforwards $ — $ 21,171

Capital loss and tax credit carryforwards $ 4,168 $ 2,728

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The Company was notified in April 2020 that the City of New York was commencing an audit of the local income tax returns for the fiscal years ended June 30, 2016 and 2017.

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

The federal and state statute of limitations are currently open for tax returns for years starting with 2020 and 2016, respectively

During the year ended June 30, 2023, the Company made income tax payments of $ 18,615 .

The audit was finalized in January 2024 and resulted in no material changes.

The federal and state statute of limitations are currently open for tax returns for years starting with 2021.

During the year ended June 30, 2024, the Company made income tax payments, net of refunds, of $ 48,035 .

Concentrations of Risk

Financial instruments that may potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents and accounts receivable.

Cash and cash equivalents are invested in money market accounts and a time deposit.

Cash and cash equivalents are invested in money market accounts and time deposits.

The Company monitors the financial institutions and money market funds where it invests its cash and cash equivalents with diversification among counterparties to mitigate exposure to any single financial institution.

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Entity B 16 % 17 %

Entity C 18 % 4 %

The following individual non-related parties accounted for the following percentages of the Company’s consolidated revenue balances:

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2024 2023 2022

Entity B 13 % 14 % 32 %

Entity A 13 % 13 % 14 %

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As of June 30, 2024, approximately 110 full-time and part-time employees, which represent approximately 11.2 % of the Company’s workforce, are subject to CBAs.

There are no union employees subject to CBAs that expired as of June 30, 2023 and there are no union employees subject to CBAs that will expire by June 30, 2024.

There are no union employees subject to CBAs that expired as of June 30, 2024 and there are 37 union employees subject to CBAs that will expire by June 30, 2025.

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 9A. Controls and Procedures