What changed in this filing

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Item 1. Financial Statements

2024-11-01 compared with 2024-05-03 · 225 added, 324 removed, 475 unchanged (54% of the section changed)

3 unchanged sentences

(in thousands, except per share data)

September 30,

2024 June 30,

2 unchanged sentences

Restricted cash 5,832 5,771

Accounts receivable, net of allowance for doubtful accounts of $ 0 as of March 31, 2024 and June 30, 2023

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

45,302 33,781

3 unchanged sentences

Total current assets 235,780 216,942

Property and equipment, net of accumulated depreciation and amortization of $ 51,490 and $ 49,117 as of March 31, 2024 and June 30, 2023, respectively

Property and equipment, net of accumulated depreciation and amortization of $ 51,199 and $ 52,281 as of September 30, 2024 and June 30, 2024, respectively

28,282 28,541

9 unchanged sentences

(in thousands, except per share data)

September 30,

2024 June 30,

22 unchanged sentences

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

19,416 and 19,364 shares outstanding as of March 31, 2024 and June 30, 2023, respectively

19,465 and 19,423 shares outstanding as of September 30, 2024 and June 30, 2024, respectively

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

4,530 shares outstanding as of March 31, 2024 and June 30, 2023

4,530 shares outstanding as of September 30, 2024 and June 30, 2024

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

none outstanding as of March 31, 2024 and June 30, 2023

none outstanding as of September 30, 2024 and June 30, 2024

Additional paid-in capital 8,353 19,079

Treasury stock, at cost, 1,031 and 1,084 shares as of March 31, 2024 and June 30, 2023, respectively

Treasury stock, at cost, 983 and 1,025 shares as of September 30, 2024 and June 30, 2024, respectively

( 162,504 ) ( 169,547 )

7 unchanged sentences

(in thousands, except per share data)

Three Months Ended Nine Months Ended

March 31, March 31,

2024 2023 2024 2023

Three Months Ended

September 30,

$ 53,307 $ 43,046

1 unchanged sentence

Direct operating expenses (b)

273,026 239,051 508,771 468,434

Selling, general and administrative expenses (c)

1 unchanged sentence

Depreciation and amortization 782 794

Operating income 79,742 81,751 93,735 97,371

Operating loss ( 8,273 ) ( 14,824 )

Other income (expense):

1 unchanged sentence

Interest expense ( 6,055 ) ( 6,929 )

Miscellaneous (expense) income, net ( 1,403 ) 19,324 ( 11,077 ) 19,543

Miscellaneous expense, net ( 1,126 ) ( 12,665 )

( 6,317 ) ( 19,141 )

Income before income taxes 71,895 94,775 62,938 102,146

Income tax expense ( 34,018 ) ( 42,962 ) ( 29,658 ) ( 47,024 )

Net income 37,877 51,813 33,280 55,122

Net loss attributable to nonredeemable noncontrolling interests — ( 566 ) — ( 1,928 )

Net income attributable to Madison Square Garden Sports Corp.’s stockholders $ 37,877 $ 52,379 $ 33,280 $ 57,050

Basic earnings per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ 1.58 $ 2.19 $ 1.39 $ 2.28

Diluted earnings per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ 1.57 $ 2.18 $ 1.38 $ 2.27

Loss before income taxes ( 14,590 ) ( 33,965 )

Income tax benefit 7,048 15,144

Net loss $ ( 7,542 ) $ ( 18,821 )

Basic loss per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ ( 0.31 ) $ ( 0.79 )

Diluted loss per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ ( 0.31 ) $ ( 0.79 )

Weighted-average number of common shares outstanding:

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_________________

(a) Includes revenues from related parties of $ 86,944 and $ 84,024 for the three months ended March 31, 2024 and 2023, respectively, and $ 173,419 and $ 167,148 for the nine months ended March 31, 2024 and 2023, respectively.

(b) Includes net charges from related parties of $ 49,907 and $ 43,595 for the three months ended March 31, 2024 and 2023, respectively, and $ 88,206 and $ 91,264 for the nine months ended March 31, 2024 and 2023, respectively.

(c) Includes net charges from related parties of $ 18,707 and $ 18,875 for the three months ended March 31, 2024 and 2023, respectively, and $ 47,462 and $ 49,616 for the nine months ended March 31, 2024 and 2023, respectively.

(a) Includes revenues from related parties of $ 8,904 and $ 8,817 for the three months ended September 30, 2024 and 2023, respectively.

(b) Includes net charges from related parties of $ 2,295 and $ 2,616 for the three months ended September 30, 2024 and 2023, respectively.

(c) Includes net charges from related parties of $ 11,862 and $ 12,125 for the three months ended September 30, 2024 and 2023, respectively.

See accompanying notes to consolidated financial statements.

MADISON SQUARE GARDEN SPORTS CORP.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in thousands)

Three Months Ended Nine Months Ended

March 31, March 31,

2024 2023 2024 2023

Net income $ 37,877 $ 51,813 $ 33,280 $ 55,122

Three Months Ended

September 30,

Net loss $ ( 7,542 ) $ ( 18,821 )

Other comprehensive income, before income taxes:

5 unchanged sentences

Other comprehensive income, net of income taxes 14 6

Comprehensive income 37,884 51,816 33,299 55,131

Comprehensive loss attributable to nonredeemable noncontrolling interests — ( 566 ) — ( 1,928 )

Comprehensive income attributable to Madison Square Garden Sports Corp.’s stockholders $ 37,884 $ 52,382 $ 33,299 $ 57,059

Comprehensive loss $ ( 7,528 ) $ ( 18,815 )

See accompanying notes to consolidated financial statements.

2 unchanged sentences

(in thousands)

Nine Months Ended

Three Months Ended

September 30,

Cash flows from operating activities:

Net income $ 33,280 $ 55,122

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

Net loss $ ( 7,542 ) $ ( 18,821 )

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

Depreciation and amortization 782 794

(Benefit from) provision for deferred income taxes ( 9,139 ) 27,590

Benefit from deferred income taxes ( 7,140 ) ( 15,170 )

Share-based compensation expense 4,268 4,149

Unrealized loss (gain) on equity investments with readily determinable fair value, warrants, and forward contract 9,969 ( 19,738 )

Unrealized loss on equity investments with readily determinable fair value, warrants, and forward contract 612 12,101

Other non-cash adjustments 1,673 571

9 unchanged sentences

Operating lease right-of-use assets and lease liabilities ( 9,711 ) ( 9,442 )

Net cash (used in) provided by operating activities ( 16,220 ) 114,801

Net cash used in operating activities ( 26,158 ) ( 54,141 )

Cash flows from investing activities:

3 unchanged sentences

Cash flows from financing activities:

Accelerated share repurchase — ( 75,060 )

Dividends paid ( 440 ) ( 537 )

1 unchanged sentence

Proceeds from revolving credit facilities — 75,000

Repayment of revolving credit facilities ( 40,000 ) ( 85,000 )

Other financing activities — 1,705

Net cash provided by (used in) financing activities 26,234 ( 129,618 )

Net increase (decrease) in cash, cash equivalents and restricted cash 4,325 ( 25,183 )

Net cash (used in) provided by financing activities ( 9,502 ) 67,830

Net (decrease) increase in cash, cash equivalents and restricted cash ( 36,823 ) 11,960

Cash, cash equivalents and restricted cash at beginning of period 94,907 40,459

6 unchanged sentences

(in thousands)

Three Months Ended March 31, 2024

Issued Additional

Capital Treasury

Stock Accumulated Deficit Accumulated

Comprehensive

Loss Total Equity

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

Net income — — — 37,877 — 37,877

Other comprehensive income — — — — 7 7

Comprehensive income — — — — — 37,884

Share-based compensation

— 7,350 — — — 7,350

Common stock issued under stock incentive plans

— ( 817 ) 817 — — —

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

See accompanying notes to consolidated financial statements.

MADISON SQUARE GARDEN SPORTS CORP.

CONSOLIDATED STATEMENTS OF EQUITY (Continued)

(in thousands)

Three Months Ended March 31, 2023

Common Stock Issued Additional

Capital Treasury

Stock Accumulated Deficit Accumulated

Comprehensive Loss Total Madison Square Garden Sports Corp.

Stockholders ’ Equity

Noncontrolling

Interests Total Equity

Balance as of December 31, 2022 $ 249 $ — $ ( 169,772 ) $ ( 217,047 ) $ ( 1,180 ) $ ( 387,750 ) $ 1,338 $ ( 386,412 )

Net income (loss) — — — 52,379 — 52,379 ( 566 ) 51,813

Other comprehensive income — — — — 3 3 — 3

Comprehensive income (loss) — — — — — 52,382 ( 566 ) 51,816

Share-based compensation

— 3,220 — — — 3,220 — 3,220

Tax withholding associated with shares issued for equity-based compensation

— ( 2,457 ) — — — ( 2,457 ) — ( 2,457 )

Common stock issued under stock incentive plans

— ( 1,844 ) 2,729 — — 885 — 885

Accelerated share repurchase — 12,307 ( 12,367 ) — — ( 60 ) — ( 60 )

Balance as of March 31, 2023 $ 249 $ 11,226 $ ( 179,410 ) $ ( 164,668 ) $ ( 1,177 ) $ ( 333,780 ) $ 772 $ ( 333,008 )

See accompanying notes to consolidated financial statements.

MADISON SQUARE GARDEN SPORTS CORP.

CONSOLIDATED STATEMENTS OF EQUITY (Continued)

(in thousands)

Nine Months Ended March 31, 2024

Three Months Ended September 30, 2024

Issued Additional

4 unchanged sentences

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

Net income — — — 33,280 — 33,280

Net loss — — — ( 7,542 ) — ( 7,542 )

Other comprehensive income — — — — 14 14

Comprehensive income — — — — — 33,299

Comprehensive loss — — — — — ( 7,528 )

Share-based compensation

6 unchanged sentences

— — — ( 8 ) — ( 8 )

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

Balance as of September 30, 2024 $ 249 $ 8,353 $ ( 162,504 ) $ ( 122,689 ) $ ( 938 ) $ ( 277,529 )

See accompanying notes to consolidated financial statements.

2 unchanged sentences

(in thousands)

Nine Months Ended March 31, 2023

Three Months Ended September 30, 2023

Common Stock Issued Additional

Capital Treasury

Stock Retained Earnings (Accumulated Deficit) Accumulated

Comprehensive Loss Total Madison Square Garden Sports Corp.

Stockholders ’ Equity

Noncontrolling

Interests Total Equity

Stock Accumulated Deficit Accumulated

Comprehensive Loss Total Equity

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

Net income (loss) — — — 57,050 — 57,050 ( 1,928 ) 55,122

Net loss — — — ( 18,821 ) — ( 18,821 )

Other comprehensive income — — — — 6 6

Comprehensive income (loss) — — — — — 57,059 ( 1,928 ) 55,131

Comprehensive loss — — — — — ( 18,815 )

Share-based compensation

6 unchanged sentences

— — — ( 6 ) — ( 6 )

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

Adjustments to noncontrolling interests — ( 988 ) — — — ( 988 ) 988 —

Balance as of March 31, 2023 $ 249 $ 11,226 $ ( 179,410 ) $ ( 164,668 ) $ ( 1,177 ) $ ( 333,780 ) $ 772 $ ( 333,008 )

Balance as of September 30, 2023 $ 249 $ 7,553 $ ( 172,605 ) $ ( 192,737 ) $ ( 1,003 ) $ ( 358,543 )

See accompanying notes to consolidated financial statements.

8 unchanged sentences

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

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

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

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

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

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

The Company operates and reports financial information in one segment.

1 unchanged sentence

the manner in which its operations are managed;

and 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.

1 unchanged sentence

(“MSG Networks”).

All of 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 Company distributed all of the outstanding common stock of Sphere Entertainment Co.

(formerly Madison Square Garden Entertainment Corp.

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

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

(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 Date).

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.

(“Sphere Entertainment”) to its stockholders (the “Sphere Distribution”).

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

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

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

(“MSG Entertainment”), Sphere Entertainment and MSG Networks refer to such entity, together with its direct and indirect subsidiaries.

Basis of Presentation

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

generally accepted accounting principles (“GAAP”) and Article 10 of Regulation S-X of the Securities and Exchange Commission (the “SEC”) for interim financial information, and should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended June 30, 2023 (“fiscal year 2023”).

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

however, in the opinion of management, the Financial Statements reflect all adjustments, consisting solely of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods presented.

The results of operations for the periods presented are not necessarily indicative of the results that might be expected for future interim periods or for the full year.

The results of operations for the periods presented are not necessarily indicative of the results that might be expected for future interim periods or for the full fiscal year.

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

Reclassifications

Certain reclassifications have been made in order to conform to the current period’s presentation and relate to the separation of Investments and unrealized loss (gain) on equity investments with readily determinable fair value and warrants on the consolidated statements of cash flows for the nine months ended March 31, 2023.

MADISON SQUARE GARDEN SPORTS CORP.

5 unchanged sentences

All significant intercompany transactions and balances have been eliminated in consolidation.

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” in the accompanying consolidated balance sheets, the accompanying consolidated statements of operations and consolidated statements of comprehensive income (loss), respectively.

Use of Estimates

1 unchanged sentence

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

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

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

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

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

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

4 unchanged sentences

Changes in estimates resulting from weakness in the economic environment or other factors beyond the Company’s control could be material and would be reflected in the Company’s financial statements in future periods.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements Not Yet Adopted

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

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

2 unchanged sentences

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

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.

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

Recently Issued Accounting Pronouncements Not Yet Adopted

In November 2023, the FASB issued ASU No.

3 unchanged sentences

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

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

10 unchanged sentences

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

For the three and nine months ended March 31, 2024 and 2023, the Company did not have any material impairment losses on receivables or contract assets arising from contracts with customers.

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

Disaggregation of Revenue

The following table disaggregates the Company’s revenues by type of goods or services in accordance with the required entity-wide disclosure requirements set forth in ASC Subtopic 280-10-50-38 to 40 and the disaggregation of revenue required disclosures in accordance with ASC Subtopic 606-10-50-5 for the three and nine months ended March 31, 2024 and 2023:

Three Months Ended Nine Months Ended

March 31, March 31,

2024 2023 2024 2023

The following table disaggregates the Company’s revenues by type of goods or services in accordance with the disclosure requirements set forth in ASC Subtopic 280-10-50-38 to 40 and the disaggregation of revenue required disclosures in accordance with ASC Subtopic 606-10-50-5 for the three months ended September 30, 2024 and 2023:

Three Months Ended

September 30,

Event-related (a)

1 unchanged sentence

Media rights (b)

139,579 135,200 269,345 260,344

Sponsorship, signage and suite licenses 5,188 5,314

6 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

The following table provides information about contract balances from the Company’s contracts with customers as of March 31, 2024 and June 30, 2023.

March 31, June 30,

Contract Balances

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

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

September 30, June 30,

Receivables from contracts with customers, net (a)

1 unchanged sentence

Contract assets, current (b)

64,724 19,465

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

2 unchanged sentences

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

As of March 31, 2024 and June 30, 2023, the Company’s receivables reported above incl uded $ 1,970 and $ 0 , respectively, related to contracts with customers who are related parties.

See Note 16 for further details on related party arrangements.

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

As of March 31, 2024 and June 30, 2023, the Company had receivable balances related to escrow and player compensation recoveries of $ 7,058 and $ 1,544 , respectively, reco rded in Accounts receivable, net.

As of September 30, 2024 and June 30, 2024, the Company’s receivables reported above incl uded $ 235 and $ 0 , respectively, related to contracts with customers that are related parties.

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

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

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

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

The Company had contract asset balances related to local media rights of $ 25,642 and $ 0 as of March 31, 2024 and June 30, 2023, respectively.

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

(c) Deferred revenue, including non-current portion, primarily relates to the Company’s receipt of consideration from customers 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 a customer.

The Company’s deferred revenue related to local media rights was $ 0 as of March 31, 2024 and June 30, 2023.

The Company’s deferred revenue related to local media rights was $ 34,241 and $ 0 as of September 30, 2024 and June 30, 2024, respectively.

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

(d) Revenue recognized for the nine months ended March 31, 2024 relating to the deferred revenue balance as of June 30, 2023 was $ 141,372 .

(d) Revenue recognized for the three months ended September 30, 2024 relating to the deferred revenue balance as of June 30, 2024 was $ 16,713 .

Transaction Price Allocated to the Remaining Performance Obligations

The following table depicts the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of March 31, 2024 and is based on current projections.

The following table depicts the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of September 30, 2024.

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

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

Fiscal Year 2024 (remainder) $ 23,113

Fiscal Year 2025 124,822

Fiscal Year 2026 77,696

Fiscal Year 2027 39,157

Fiscal Year 2028 19,647

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

Fiscal year ending June 30, 2025 (remainder) $ 161,652

Fiscal year ending June 30, 2026 110,059

Fiscal year ending June 30, 2027 70,484

Fiscal year ending June 30, 2028 39,724

Fiscal year ending June 30, 2029 29,480

Thereafter 19,616

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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.

Three Months Ended Nine Months Ended

March 31, March 31,

2024 2023 2024 2023

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

Net income attributable to Madison Square Garden Sports Corp.’s stockholders $ 37,877 $ 52,379 $ 33,280 $ 57,050

Computation of Earnings (Loss) per Common Share

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

Three Months Ended

September 30,

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

Net loss $ ( 7,542 ) $ ( 18,821 )

Dividends to other-than-common stockholders (a)

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Weighted-average shares excluded from diluted EPS 92 94

Basic earnings per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ 1.58 $ 2.19 $ 1.39 $ 2.28

Diluted earnings per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ 1.57 $ 2.18 $ 1.38 $ 2.27

Basic loss per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ ( 0.31 ) $ ( 0.79 )

Diluted loss per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ ( 0.31 ) $ ( 0.79 )

_________________

1 unchanged sentence

Team Personnel Transactions

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

Team personnel transactions were a net provision of $ 2,170 and $ 81 for the three months ended March 31, 2024 and 2023, respectively, and a net provision of $ 2,170 and a net credit of $ 219 for the nine months ended March 31, 2024 and 2023, respectively.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

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

There were no Team personnel transactions for the three months ended September 30, 2023.

Cash, Cash Equivalents and Restricted Cash

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

2024 June 30,

2023 March 31,

September 30,

2024 June 30,

2024 September 30,

Captions on the consolidated balance sheets:

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_________________

(a) Restricted cash as of March 31, 2024, June 30, 2023 and March 31, 2023 included cash deposited in an escrow account (see Note 2 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2023 for more information).

As of March 31, 2024, the Company’s leases primarily consist of the lease of the Company’s principal executive offices under the Sublease Agreement with MSG Entertainment (the “Sublease Agreement”) and a lease agreement for an aircraft.

Prior to the MSGE Distribution Date, the Sublease Agreement was between the Company and Sphere Entertainment.

(a) Restricted cash as of September 30, 2024, June 30, 2024 and September 30, 2023 included cash deposited in an escrow account (see Note 2 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2024 for more information).

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

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

See Note 7 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2023 for more information regarding the Company’s accounting policies associated with its leases.

As of March 31, 2024, the Company’s exis ting operating leases, which are recorded in the accompanying financial statements, have remaining lease terms ranging from 7 months to 31 years.

See Note 7 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2024 for more information regarding the Company’s accounting policies associated with its leases.

As of September 30, 2024, the Company’s exis ting operating leases, which are recorded in the accompanying financial statements, have remaining lease terms ranging from 1 month to 31 years.

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

1 unchanged sentence

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

The following table summarizes the right-of-use assets and lease liabilities recorded in the accompanying consolidated balance sheets as of March 31, 2024 and June 30, 2023:

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

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

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

2024 June 30,

9 unchanged sentences

_________________

(a) As of March 31, 2024, Operating lease liabilities, current and Operating lease liabilities, noncurrent included balances o f $ 43,798 and $ 721,320 , r espectively, that are payable to MSG Entertainment.

(a) As of September 30, 2024, Operating lease liabilities, current and Operating lease liabilities, noncurrent included balances o f $ 43,220 and $ 705,233 , r espectively, that are payable to MSG Entertainment.

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

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The following table summarizes the activity recorded within the accompanying consolidated statements of operations for the three and nine months ended March 31, 2024 and 2023:

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

2024 2023 2024 2023

The following table summarizes the activity recorded within the accompanying consolidated statements of operations for the three months ended September 30, 2024 and 2023:

Line Item in the Company’s Consolidated Statement of Operations Three Months Ended September 30,

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

Operating lease cost Selling, general and administrative expenses

2,320 613 6,960 1,839

Short-term lease cost Direct operating expenses — 59 — 174

Total lease cost $ 3,782 $ 3,631

Supplemental Information

For the nine months ended March 31, 2024 and 2023, cash paid for amounts included in the measurement of lease liabilities was $ 39,119 and $ 33,791 , respectively.

The weighted average remaining lease term for operating leases recorded in the accompanying consolidated balance sheet as of March 31, 2024 was 30.0 years.

The weighted average discount rate was 7.1 % as of March 31, 2024 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 March 31, 2024 are as follows:

Fiscal Year 2024 (remainder) $ 13,023

Fiscal Year 2025 51,681

Fiscal Year 2026 52,155

Fiscal Year 2027 53,516

Fiscal Year 2028 54,919

For the three months ended September 30, 2024 and 2023, cash paid for amounts included in the measurement of lease liabilities was $ 13,493 and $ 13,072 , respectively.

The weighted average remaining lease term for operating leases recorded in the accompanying consolidated balance sheet as of September 30, 2024 was 29.6 years.

The weighted average discount rate was 7.1 % as of September 30, 2024 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.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Maturities of operating lease liabilities as of September 30, 2024 were as follows:

Fiscal year ending June 30, 2025 (remainder) $ 38,387

Fiscal year ending June 30, 2026 52,155

Fiscal year ending June 30, 2027 53,516

Fiscal year ending June 30, 2028 54,919

Fiscal year ending June 30, 2029 56,363

Thereafter 1,985,246

4 unchanged sentences

During the first quarter of fiscal year 2025, the Company performed its annual impairment test of goodwill and determined that there were no impairments identified as of the impairment test date.

The carrying amount of goodwill as of March 31, 2024 and June 30, 2023 was $ 226,523 .

The Company’s indefinite-lived intangible assets as of March 31, 2024 and June 30, 2023 are as follows:

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

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

Sports franchises $ 102,564

1 unchanged sentence

During the first quarter of fiscal year 2025, the Company performed its annual impairment test of identifiable indefinite-lived intangible assets and determined that there were no impairments identified as of the impairment test date.

For the three and nine months ended March 31, 2023, amortization expense o f intangible assets was $ 29 and $ 167 , respectively.

There was no amortization expense for the three and nine months ended March 31, 2024 as a result of the disposal of CLG in April 2023.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

September 30,

2024 June 30,

11 unchanged sentences

_________________

(a) For the three and nine months ended March 31, 2024 and 2023, the Company did not record any impairment charges or changes in carrying value of its equity securities without readily determinable fair values in the accompanying consolidated statements of operations.

(a) For the three months ended September 30, 2024 and 2023, the Company did not record any impairment charges or changes in carrying value of its equity securities without readily determinable fair values in the accompanying consolidated statements of operations.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Equity Method Investments

In April 2023, the Company sold its controlling interest in CLG to NRG, a professional gaming and entertainment company, in exchange for a noncontrolling equity interest in the combined NRG/CLG company.

In April 2023, the Company sold its controlling interest in Counter Logic Gaming (“CLG”), a North American esports organization, to Hard Carry Gaming, Inc.

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

The Company received preferred shares representing approximately 25 % of the capital stock of NRG.

The Company deconsolidated the CLG business and recorded the investment in NRG at fair value as an equity method investment in the fourth quarter of fiscal year 2023.

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

As of March 31, 2024 and June 30, 2023, the Company’s ownership in NRG was approximately 25 %.

During the three months ended September 30, 2024 and 2023, the Company recognized its net share of losses of $ 230 and $ 415 , respectively, in Miscellaneous expense, net within the Company’s consolidated statements of operations.

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

Equity Investments with Readily Determinable Fair Values

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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 (UNAUDITED)

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

March 31, 2024 June 30, 2023

September 30, 2024 June 30, 2024

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

2 unchanged sentences

$ 25,868 $ 38,786 $ 24,231 $ 36,217

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 three and nine months ended March 31, 2024 and 2023.

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

2024 2023 2024 2023

Unrealized (loss) gain - Xtract One common stock $ ( 853 ) $ 7,337 $ ( 5,645 ) $ 7,337

Unrealized gain - other equity investments with readily determinable fair values 809 372 1,501 718

Realized gain (loss) - other equity investments with readily determinable fair values 12 ( 4 ) 55 ( 4 )

The following table summarizes the realized and unrealized gains (losses) on equity investments with readily determinable fair values, recorded within Miscellaneous expense, net within the Company’s consolidated statements of operations, for the three months ended September 30, 2024 and 2023:

Three Months Ended September 30,

Unrealized loss - Xtract One common stock $ ( 533 ) $ ( 6,553 )

Unrealized gain (loss) - other equity investments with readily determinable fair values 965 ( 130 )

Realized gain - other equity investments with readily determinable fair values — 26

$ 432 $ ( 6,657 )

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Fair Value Measurements

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

Fair Value Hierarchy March 31,

Fair Value Hierarchy September 30,

2024 June 30,

Money market accounts I $ 22,523 $ 37,594

Time deposit I 11,487 1,457

Time deposits I 27,066 49,510

Equity investments I 38,786 36,217

3 unchanged sentences

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 deposit approximates fair value due to their short-term maturities.

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 9 for further details regarding equity investments.

2 unchanged sentences

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

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

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

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

determined using the Black-Scholes option pricing model.

The following are key assumptions used to calculate the fair value of the warrants as of March 31, 2024 and June 30, 2023:

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

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

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

September 30,

2024 June 30,

3 unchanged sentences

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

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

2024 2023 2024 2023

Three Months Ended September 30,

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

Purchase of warrants — 1,959 — 1,959

Unrealized (loss) gain on warrants ( 1,529 ) 4,543 ( 5,825 ) 4,543

Unrealized gain on forward contract (a)

— 7,140 — 7,140

Unrealized losses on warrants ( 1,044 ) ( 5,418 )

Balance at end of period $ 5,951 $ 7,680

_________________

(a) During the three months ended March 31, 2023, the Company recorded an unrealized gain on a forward contract to acquire additional common stock and warrants of Xtract One.

The Company’s forward contract was included within Other current assets in the accompanying consolidated balance sheets.

The fair value of the Company’s forward contract was determined using the number of additional common shares and warrants in the forward contract, the contractual price of the forward contract, the quoted prices of Xtract One, and the fair value of the Xtract One warrants as of March 31, 2023.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

March 31, 2024 June 30, 2023

September 30, 2024 June 30, 2024

Value Carrying

11 unchanged sentences

Commitments and Contingencies

As more fully described in Note 12 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2023, the Company’s commitments consist primarily of the Company’s obligations under employment agreements that the Company has with its professional sports teams’ personnel that are generally guaranteed regardless of employee injury or termination.

As more fully described in Note 12 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2024, the Company’s commitments consist primarily of the Company’s obligations under employment agreements that the Company has with its professional sports teams’ personnel that are generally guaranteed regardless of employee injury or termination.

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

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

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Legal Matters

The Company is a defendant in various lawsuits.

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

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

Knicks Revolving Credit Facility

6 unchanged sentences

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

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

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

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 nine months ended March 31, 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 March 31, 2024, which was recorded as Long-term debt in the accompanying consolidated balance sheet.

The interest rate on the Knicks Revolving Credit Facility as of March 31, 2024 was 6.68 % .

During the nine months ended March 31, 2024 the Company made interest payments of $ 13,778 in respect of the Knicks Revolving Credit Facility.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

The interest rate on the Knicks Revolving Credit Facility as of September 30, 2024 was 6.22 % .

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

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

11 unchanged sentences

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

As of March 31, 2024, Knicks LLC was in compliance with this financial covenant.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

Rangers Revolving Credit Facility

6 unchanged sentences

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

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

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

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

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

During the nine months ended March 31, 2024, the Company borrowed an additional $ 35,000 and made principal repayments of $ 40,000 under the Rangers Revolving Credit Facility.

The outstanding balance under the Rangers Revolving Credit Facility wa s $ 55,000 as of March 31, 2024, which was recorded as Long-term debt in the accompanying consolidated balance sheet.

The interest rate on the Rangers Revolving Credit Facility as of March 31, 2024 wa s 7.18 % .

During the nine months ended March 31, 2024 the Company made interest payments of $ 3,804 in respect of the Rangers Revolving Credit Facility.

In addition, on April 22, 2024, the Company made an additional principal repayment of $ 40,000 under the Rangers Revolving Credit Facility.

There were no borrowings under the Rangers Revolving Credit Facility as of September 30, 2024 and accordingly the Company did not make any interest payments during the three months ended September 30, 2024 in respect of the Rangers Revolving Credit Facility.

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

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

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

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 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 or insolvency event with respect to a material media rights counterparty, including MSG Networks.

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

As of March 31, 2024, Rangers LLC was in compliance with this financial covenant .

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

Rangers NHL Advance Agreement

2 unchanged sentences

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.

All borrowings under the Rangers NHL

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Advance Agreement were made on a non-revolving basis and bear interest at 3.00 % per annum, ending on the date any such advances are fully repaid.

All borrowings under the Rangers NHL Advance Agreement were made on a non-revolving basis and bear interest at 3.00 % per annum, ending on the date any such advances are fully repaid.

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

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

The outstanding balance under the Rangers NHL Advance Agreement was $ 30,000 as of March 31, 2024 and was recorded as Debt in the accompanying consolidated balance sheet.

During the nine months ended March 31, 2024 the Company made interest p ayments of $ 900 .

The outstanding balance under the Rangers NHL Advance Agreement was $ 30,000 as of September 30, 2024 and was recorded as Debt in the accompanying consolidated balance sheet.

During the three months ended September 30, 2024 the Company made interest p ayments of $ 225 .

Deferred Financing Costs

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

September 30,

2024 June 30,

1 unchanged sentence

Other assets 1,379 1,665

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Benefit Plans

1 unchanged sentence

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

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

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

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

The following table presents components of net periodic benefit cost for the Pension Plans included in the accompanying consolidated statements of operations for the three and nine months ended March 31, 2024 and 2023.

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

Three Months Ended Nine Months Ended

March 31, March 31,

2024 2023 2024 2023

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

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

Three Months Ended

September 30,

Interest cost $ 63 $ 68

4 unchanged sentences

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

Expense related to the 401(k) Plan and Excess Savings Plan for the three and nine months ended March 31, 2024 was $ 1,261 and $ 3,869 , respectively, and $ 1,465 and $ 3,602 for the three and nine months ended March 31, 2023, respectively .

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Expense related to the 401(k) Plan and Excess Savings Plan for the three months ended September 30, 2024 and 2023 was $ 1,283 and $ 1,294 , respectively.

Executive Deferred Compensation Plan

See Note 14 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2023 for more information regarding the Company’s E xecutive Deferred Compensation Plan (the “Deferred Compensation Plan”).

The Company recorded compensation expense of $ 821 and $ 1,556 for the three and nine months ended March 31, 2024 , respectively, and $ 368 and $ 714 for the three and nine months ended March 31, 2023, respectively, within Selling, general and administrative expenses to reflect the remeasurement of the Deferred Compensation Plan liability.

In addition, the Company recorded gains of $ 821 and $ 1,556 for the three and nine months ended March 31, 2024 , respectively, and $ 368 and $ 714 for the three and nine months ended March 31, 2023, respectively, within Miscellaneous (expense) income, net to reflect t he remeasurement of the fair value of assets under the Deferred Compensation Plan.

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

The Company recorded compensation expense/(compensation cost credits) of $ 965 and $( 104 ) for the three months ended September 30, 2024 and 2023, 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 $ 965 and $( 104 ) for the three months ended September 30, 2024 and 2023, respectively , within Miscellaneous expense, net to reflect t he remeasurement of the fair value of assets under the Deferred Compensation Plan.

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

September 30,

2024 June 30,

2 unchanged sentences

Non-current liabilities (included in other employee related costs) ( 20,621 ) ( 17,604 )

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Share-based Compensation

See Note 15 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2023 for more information regarding the Company’s 2015 Employee Stock Plan (the “Employee Stock Plan”) and its 2015 Stock Plan for Non-Employee Directors.

See Note 15 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2024 for more information regarding the Company’s 2015 Employee Stock Plan (the “Employee Stock Plan”) and its 2015 Stock Plan for Non-Employee Directors.

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

Share-based compensation expense was $ 7,350 and $ 18,069 for the three and nine months ended March 31, 2024, respectively and $ 3,220 and $ 22,059 for the three and nine months ended March 31, 2023, respectively.

There were no costs related to share-based compensation that were capitalized for the three and nine months ended March 31, 2024 and 2023, respectively.

Share-based compensation expense was $ 4,268 and $ 4,149 for the three months ended September 30, 2024 and 2023, respectively.

There were no costs related to share-based compensation that were capitalized for the three months ended September 30, 2024 and 2023.

Restricted Stock Units Award Activity

The following table summarizes activity related to the Company’s restricted stock units and performance restricted stock units, collectively referred to as “RSUs,” held by current and former employees of the Company and non-employee directors, for the nine months ended March 31, 2024:

Number of Weighted-Average

8 unchanged sentences

Forfeited / Cancelled ( 1 ) ( 2 ) $ 170.43

Unvested award balance, March 31, 2024 127 145 $ 170.68

Unvested award balance, September 30, 2024 103 138 $ 186.26

_____________________

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

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

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

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

To fulfill the Company’s current and former employees’ required statutory tax withholding obligations for the applicable income and other employment taxes, 50 of these RSUs, with an aggregate value of $ 8,084 , 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 a financing activity in the accompanying consolidated statement of cash flows for the nine months ended March 31, 2024.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The fair value of RSUs that vested during the nine months ended March 31, 2023 was $ 40,795 .

The weighted-average fair value per share at grant date of RSUs granted during the nine months ended March 31, 2023 was $ 161.70 .

To fulfill the Company’s current and former employees’ required statutory tax withholding obligations for the applicable income and other employment taxes, 39 of these RSUs, with an aggregate value of $ 7,951 , inclusive of $ 24 related to the Company’s former employees (who vested in the Company’s RSUs), were retained by the Company and the taxes paid are reflected as a financing activity in the accompanying consolidated statement of cash flows for the three months ended September 30, 2024.

The fair value of RSUs that vested during the three months ended September 30, 2023 was $ 16,637 .

The weighted-average fair value per share at grant date of RSUs granted during the three months ended September 30, 2023 was $ 178.45 .

Stock Options Award Activity

The following table summarizes activity related to the Company’s stock options for the nine months ended March 31, 2024:

The following table summarizes activity related to the Company’s stock options for the three months ended September 30, 2024:

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

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Cancelled — $ —

Balance as of March 31, 2024 94 $ 138.78 3.71 $ 4,292

Exercisable as of March 31, 2024 94 $ 138.78 3.71 $ 4,292

Balance as of September 30, 2024 94 $ 138.78 3.21 $ 6,519

Exercisable as of September 30, 2024 94 $ 138.78 3.21 $ 6,519

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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 (“Class A Common Stock”).

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

On October 6, 2022, the Company’s Board of Directors authorized a $ 75,000 accelerated share repurchase (“ASR”) program under the Company’s existing share repurchase authorization.

On October 28, 2022, the Company entered into a $ 75,000 ASR agreement with JPMorgan Chase Bank, National Association (“JP Morgan”).

Pursuant to the ASR agreement, the Company made a payment of $ 75,000 to JP Morgan and JP Morgan delivered 388,777 initial shares of Class A Common Stock to the Company on November 1, 2022, representing 80 % of the total shares expected to be repurchased under the ASR (determined based on the closing price of the Company’s Class A Common Stock of $ 154.33 on October 28, 2022).

The ASR was completed on January 31, 2023 with JP Morgan delivering 67,681 additional shares of Class A Common Stock to the Company upon final settlement.

The average purchase price per share for shares of Class A Common Stock purchased by the Company pursuant to the ASR was $ 164.31 .

The ASR was accounted for as a repurchase of shares and as an equity forward contract indexed to the Company’s Class A Common Stock.

The equity forward contract was classified as an equity instrument under ASC Subtopic 815-40.

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 nine months ended March 31, 2024 , the Company did not make any share repurchases under its share repurchase program.

As of March 31, 2024, the Company had $ 184,639 of availability remaining under its stock repurchase authorization .

During the three months ended September 30, 2024 and 2023, the Company did not repurchase any shares under its share repurchase program.

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

Related Party Transactions

As of March 31, 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.

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

As of September 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 owned 100 % of the Company’s outstanding Class B Common Stock and approximately 3.0 % of the Company’s outstanding Class A Common Stock.

Such shares of the Company’s Class A Common Stock and Class B Common Stock, collectively, represented approximately 70.9 % of the aggregate voting power of the Company’s outstanding common stock as of September 30, 2024.

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

(“AMC Networks”).

The Company was party to the following agreements and/or arrangements with MSG Entertainment as of March 31, 2024:

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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;

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

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

• Sponsorship sales and service representation agreements 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;

• 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;

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

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

• Services agreement (the “Services Agreement”) pursuant to which the Company (i) receives certain services from MSG Entertainment, such as information technology, 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 and ticketing services, in exchange for service fees;

• Arrangements pursuant to which the Company provides certain sponsorship, premium hospitality and other business operations services;

• 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;

• 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;

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

• 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 March 31, 2024 :

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The Company was also party to the following agreements and/or arrangements with Sphere Entertainment (including through its subsidiary MSG Networks) as of September 30, 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 sponsorship and other business operations services;

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

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

• 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.

The Company is also party to 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 aircraft owned or leased by the Company and MSG Entertainment.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

The Company is also party to 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 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.

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.

Revenues and Operating Expenses

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

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

Revenues and Operating Expenses (Credits)

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

These amounts are reflected in revenues and operating expenses in the accompanying consolidated statements of operations for the three and nine months ended March 31, 2024 and 2023:

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

2024 2023 2024 2023

These amounts are reflected in revenues and operating expenses in the accompanying consolidated statements of operations for the three months ended September 30, 2024 and 2023:

Three Months Ended September 30,

$ 8,904 $ 8,817

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Expense pursuant to the Services Agreement $ 8,477 $ 9,887

Rent expense pursuant to Sublease agreement with MSG Entertainment 731 741 2,233 2,162

Rent expense pursuant to Sublease Agreement 894 750

Costs associated with the Sponsorship sales and service representation agreements 2,612 2,601

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Other costs associated with the Arena License Agreements 1,013 804

Other operating (credits) expenses, net ( 666 ) 64 ( 1,985 ) 69

Other operating credits, net ( 150 ) ( 612 )

___________________

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

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

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

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

Income tax expense for the three and nine months ended March 31, 2023 of $ 42,962 and $ 47,024 , respectively, reflects an effective tax rate of 45 % and 46 %, respectively.

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

During the nine months ended March 31, 2024, the Company made income tax payments, net of refunds, of $ 14,319 .

The Company had $ 35,115 and $ 10,633 of accrued federal and state income tax, recorded within other accrued liabilities in the accompanying consolidated balance sheets as of March 31, 2024 and June 30, 2023, respectively.

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

Income tax benefit for the three months ended September 30, 2023 of $ 15,144 reflects an effective tax rate of 45 %.

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

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

What changed 10-Q

Item 1. Financial Statements