What changed in this filing

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Item 1. Financial Statements

2025-05-02 compared with 2025-02-04 · 175 added, 164 removed, 605 unchanged (36% of the section changed)

7 unchanged sentences

Restricted cash 8,500 5,771

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

Accounts receivable, net of allowance for doubtful accounts of $ 0 as of March 31, 2025 and June 30, 2024

110,044 33,781

3 unchanged sentences

Total current assets 319,287 216,942

Property and equipment, net of accumulated depreciation and amortization of $ 51,990 and $ 52,281 as of December 31, 2024 and June 30, 2024, respectively

Property and equipment, net of accumulated depreciation and amortization of $ 52,813 and $ 52,281 as of March 31, 2025 and June 30, 2024, respectively

29,407 28,541

33 unchanged sentences

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

19,476 and 19,423 shares outstanding as of December 31, 2024 and June 30, 2024, respectively

19,486 and 19,423 shares outstanding as of March 31, 2025 and June 30, 2024, respectively

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

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

4,530 shares outstanding as of March 31, 2025 and June 30, 2024

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

none outstanding as of December 31, 2024 and June 30, 2024

none outstanding as of March 31, 2025 and June 30, 2024

Additional paid-in capital 11,855 19,079

Treasury stock, at cost, 972 and 1,025 shares as of December 31, 2024 and June 30, 2024, respectively

Treasury stock, at cost, 961 and 1,025 shares as of March 31, 2025 and June 30, 2024, respectively

( 158,826 ) ( 169,547 )

7 unchanged sentences

(in thousands, except per share data)

Three Months Ended Six Months Ended

December 31, December 31,

Three Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

10 unchanged sentences

Interest expense ( 5,020 ) ( 6,921 ) ( 16,662 ) ( 21,269 )

Miscellaneous (expense) income, net ( 6,609 ) 2,991 ( 7,735 ) ( 9,674 )

Miscellaneous expense, net ( 5,743 ) ( 1,403 ) ( 13,478 ) ( 11,077 )

( 9,712 ) ( 7,847 ) ( 27,535 ) ( 30,797 )

Income (loss) before income taxes 1,809 25,008 ( 12,781 ) ( 8,957 )

Income tax (expense) benefit ( 698 ) ( 10,784 ) 6,350 4,360

Net income (loss) $ 1,111 $ 14,224 $ ( 6,431 ) $ ( 4,597 )

Basic earnings (loss) per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ 0.05 $ 0.59 $ ( 0.27 ) $ ( 0.19 )

Diluted earnings (loss) per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ 0.05 $ 0.59 $ ( 0.27 ) $ ( 0.19 )

Income before income taxes 22,630 71,895 9,849 62,938

Income tax expense ( 36,857 ) ( 34,018 ) ( 30,507 ) ( 29,658 )

Net (loss) income $ ( 14,227 ) $ 37,877 $ ( 20,658 ) $ 33,280

Basic (loss) earnings per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ ( 0.59 ) $ 1.58 $ ( 0.86 ) $ 1.39

Diluted (loss) earnings per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ ( 0.59 ) $ 1.57 $ ( 0.86 ) $ 1.38

Weighted-average number of common shares outstanding:

2 unchanged sentences

_________________

(a) Includes revenues from related parties of $ 80,217 and $ 77,658 for the three months ended December 31, 2024 and 2023, respectively, and $ 89,121 and $ 86,475 for the six months ended December 31, 2024 and 2023, respectively.

(b) Includes net charges from related parties of $ 38,757 and $ 35,683 for the three months ended December 31, 2024 and 2023, respectively, and $ 41,052 and $ 38,299 for the six months ended December 31, 2024 and 2023, respectively.

(c) Includes net charges from related parties of $ 19,693 and $ 16,630 for the three months ended December 31, 2024 and 2023, respectively, and $ 31,555 and $ 28,755 for the six months ended December 31, 2024 and 2023, respectively.

(a) Includes revenues from related parties of $ 67,704 and $ 86,944 for the three months ended March 31, 2025 and 2024, respectively, and $ 156,825 and $ 173,419 for the nine months ended March 31, 2025 and 2024, respectively.

(b) Includes net charges from related parties of $ 47,476 and $ 49,907 for the three months ended March 31, 2025 and 2024, respectively, and $ 88,528 and $ 88,206 for the nine months ended March 31, 2025 and 2024, respectively.

(c) Includes net charges from related parties of $ 22,439 and $ 18,707 for the three months ended March 31, 2025 and 2024, respectively, and $ 53,994 and $ 47,462 for the nine months ended March 31, 2025 and 2024, respectively.

See accompanying notes to consolidated financial statements.

MADISON SQUARE GARDEN SPORTS CORP.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

(in thousands)

Three Months Ended Six Months Ended

December 31, December 31,

Three Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

Net income (loss) $ 1,111 $ 14,224 $ ( 6,431 ) $ ( 4,597 )

Net (loss) income $ ( 14,227 ) $ 37,877 $ ( 20,658 ) $ 33,280

Other comprehensive income, before income taxes:

5 unchanged sentences

Other comprehensive income, net of income taxes 14 7 41 19

Comprehensive income (loss) $ 1,124 $ 14,230 $ ( 6,404 ) $ ( 4,585 )

Comprehensive (loss) income $ ( 14,213 ) $ 37,884 $ ( 20,617 ) $ 33,299

See accompanying notes to consolidated financial statements.

2 unchanged sentences

(in thousands)

Six Months Ended

Nine Months Ended

Cash flows from operating activities:

Net loss $ ( 6,431 ) $ ( 4,597 )

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

Net (loss) income $ ( 20,658 ) $ 33,280

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

Depreciation and amortization 2,396 2,372

23 unchanged sentences

Repayment of revolving credit facilities ( 8,000 ) ( 40,000 )

Repayment of NHL advance ( 6,000 ) —

Net cash (used in) provided by financing activities ( 26,406 ) 26,234

8 unchanged sentences

(in thousands)

Three Months Ended December 31, 2024

Three Months Ended March 31, 2025

Issued Additional

3 unchanged sentences

Loss Total Equity

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

Net income — — — 1,111 — 1,111

Balance as of December 31, 2024 $ 249 $ 9,776 $ ( 160,647 ) $ ( 121,589 ) $ ( 925 ) $ ( 273,136 )

Net loss — — — ( 14,227 ) — ( 14,227 )

Other comprehensive income — — — — 14 14

Comprehensive income — — — — — 1,124

Comprehensive loss — — — — — ( 14,213 )

Share-based compensation

— 3,900 — — — 3,900

Tax withholding associated with shares issued for equity-based compensation — ( 2,711 ) — — — ( 2,711 )

Common stock issued under stock incentive plans

— ( 1,821 ) 1,821 — — —

Dividends declared ($ 7.00 per share)

— — — ( 11 ) — ( 11 )

Balance as of December 31, 2024 $ 249 $ 9,776 $ ( 160,647 ) $ ( 121,589 ) $ ( 925 ) $ ( 273,136 )

Balance as of March 31, 2025 $ 249 $ 11,855 $ ( 158,826 ) $ ( 135,816 ) $ ( 911 ) $ ( 283,449 )

See accompanying notes to consolidated financial statements.

2 unchanged sentences

(in thousands)

Three Months Ended December 31, 2023

Three Months Ended March 31, 2024

Issued Additional

3 unchanged sentences

Loss Total Equity

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

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

Net income — — — 37,877 — 37,877

3 unchanged sentences

— 7,350 — — — 7,350

Tax withholding associated with shares issued for equity-based compensation — ( 1,447 ) — — — ( 1,447 )

Common stock issued under stock incentive plans

— ( 817 ) 817 — — —

Dividends declared ($ 7.00 per share)

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

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

See accompanying notes to consolidated financial statements.

2 unchanged sentences

(in thousands)

Six Months Ended December 31, 2024

Nine Months Ended March 31, 2025

Common Stock Issued Additional

13 unchanged sentences

— — — ( 19 ) — ( 19 )

Balance as of December 31, 2024 $ 249 $ 9,776 $ ( 160,647 ) $ ( 121,589 ) $ ( 925 ) $ ( 273,136 )

Balance as of March 31, 2025 $ 249 $ 11,855 $ ( 158,826 ) $ ( 135,816 ) $ ( 911 ) $ ( 283,449 )

See accompanying notes to consolidated financial statements.

2 unchanged sentences

(in thousands)

Six Months Ended December 31, 2023

Nine Months Ended March 31, 2024

Common Stock Issued Additional

3 unchanged sentences

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

Net loss — — — ( 4,597 ) — ( 4,597 )

Net income — — — 33,280 — 33,280

Other comprehensive income — — — — 19 19

Comprehensive loss — — — — — ( 4,585 )

Comprehensive income — — — — — 33,299

Share-based compensation

5 unchanged sentences

— — — ( 5 ) — ( 5 )

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

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

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” or 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 owns and 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.

69 unchanged sentences

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

For the three and six months ended December 31, 2024, the Company recorded impairment losses of $ 109 on receivables or contract assets arising from contracts with customers.

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

For the three months ended March 31, 2025, the Company did not have any impairment losses on contract assets arising from contracts with customers.

For the nine months ended March 31, 2025, the Company recorded impairment losses of $ 109 on contract assets arising from contracts with customers.

For the three and nine months ended March 31, 2025, the Company did not have any impairment losses on receivables arising from contracts with customers.

For the three and nine months ended March 31, 2024, 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 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 six months ended December 31, 2024 and 2023:

Three Months Ended Six Months Ended

December 31, December 31,

Three Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

9 unchanged sentences

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

Revenues from media rights for the three and nine months ended March 31, 2025 reflect a reduction in expected revenues from local media rights fees for the 2024-25 season as a result of proposed amendments to the Knicks’ and Rangers’ local media rights agreements with MSG Networks contemplated in the Transaction Support Agreement (as defined below).

MADISON SQUARE GARDEN SPORTS CORP.

2 unchanged sentences

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

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

December 31, June 30,

The following table provides information about contract balances from the Company’s contracts with customers as of March 31, 2025 and June 30, 2024:

March 31, June 30,

Receivables from contracts with customers, net (a)

6 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 December 31, 2024 and June 30, 2024, the Company’s receivables reported above incl uded $ 2,666 and $ 0 , respectively, related to contracts with customers that are related parties.

As of March 31, 2025 and June 30, 2024, the Company’s receivables reported above incl uded $ 30,532 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 and NHL related to escrow and player compensation recoveries and luxury tax payments.

As of March 31, 2025 and June 30, 2024, the Company had receivable balances related to escrow and player compensation recoveries of $ 14,667 and $ 0 , respectively, recorded in Accounts receivable, net.

(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 assets related to local media rights of $ 6,507 and $ 0 as of March 31, 2025 and June 30, 2024, 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, 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 $ 8,492 and $ 0 as of December 31, 2024 and June 30, 2024, respectively.

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

(d) Revenue recognized for the six months ended December 31, 2024 relating to the deferred revenue balance as of June 30, 2024 was $ 74,514 .

(d) Revenue recognized for the nine months ended March 31, 2025 relating to the deferred revenue balance as of June 30, 2024 was $ 115,264 .

Transaction Price Allocated to the Remaining Performance Obligations

The following table depicts the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of December 31, 2024.

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, 2025.

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

8 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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 Six Months Ended

December 31, December 31,

Computation of (Loss) Earnings per Common Share

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

Three Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

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

Net income (loss) $ 1,111 $ 14,224 $ ( 6,431 ) $ ( 4,597 )

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

Net (loss) income $ ( 14,227 ) $ 37,877 $ ( 20,658 ) $ 33,280

Dividends to other-than-common stockholders (a)

11 ( 1 ) 19 5

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

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

$ ( 14,227 ) $ 37,877 $ ( 20,677 ) $ 33,275

4 unchanged sentences

Weighted-average shares excluded from diluted EPS 62 — 73 —

Basic earnings (loss) per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ 0.05 $ 0.59 $ ( 0.27 ) $ ( 0.19 )

Diluted earnings (loss) per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ 0.05 $ 0.59 $ ( 0.27 ) $ ( 0.19 )

Basic (loss) earnings per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ ( 0.59 ) $ 1.58 $ ( 0.86 ) $ 1.39

Diluted (loss) earnings per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ ( 0.59 ) $ 1.57 $ ( 0.86 ) $ 1.38

_________________

2 unchanged sentences

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

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

There were no Team personnel transactions for the three and six months ended December 31, 2023.

Team personnel transactions were a net credit of $ 653 and a net provision of $ 2,170 for the three months ended March 31, 2025 and 2024, respectively, and a net provision of $ 7,766 and $ 2,170 for the nine months ended March 31, 2025 and 2024, respectively .

MADISON SQUARE GARDEN SPORTS CORP.

3 unchanged sentences

2025 June 30,

2024 December 31,

2024 March 31,

Captions on the consolidated balance sheets:

5 unchanged sentences

_________________

(a) Restricted cash as of December 31, 2024, June 30, 2024 and December 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 fiscal year ended June 30, 2024 for more information).

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.

(a) Restricted cash as of March 31, 2025, June 30, 2024 and March 31, 2024 included cash deposited in an escrow account (see Note 2 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2024 for more information).

The Company’s leases primarily consist of the lease of the Company’s principal executive offices under the Sublease Agreement with MSG Entertainment (as defined below), 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 fiscal year ended June 30, 2024 for more information regarding the Company’s accounting policies associated with its leases.

During the second quarter of fiscal 2025, the Company amended and restated the Sublease Agreement to enter into a short term lease for new principal executive offices through December 31, 2024.

The Company has recorded the short term operating lease costs for this amendment within Selling, general and administrative expenses in the accompanying consolidated statements of operations for the three and six months ended December 31, 2024.

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

The Company will record a lease right-of-use asset and liability based on the present value of minimum lease fixed payments over the lease term utilizing the Company’s incremental borrowing rate in the third quarter of fiscal 2025.

In addition, in connection with the New MSGE Lease Agreement, the Company 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 of December 31, 2024, the Company’s exis ting operating leases, which are recorded in the accompanying financial statements, have remaining lease terms ranging from 7 to 31 years.

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

The Company recorded the short term operating lease costs for this amendment within Selling, general and administrative expenses in the accompanying consolidated statements of operations for the nine months ended March 31, 2025.

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

The Company recorded a lease right-of-use asset and liability in the accompanying consolidated balance sheet as of March 31, 2025 based on the present value of minimum fixed lease payments over the lease term utilizing the Company’s incremental borrowing rate as of the lease commencement date.

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

As of March 31, 2025, the Company’s exis ting operating leases, which are recorded in the accompanying financial statements, have remaining lease terms ranging from 7 to 30 years.

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

3 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

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

The following table summarizes the right-of-use assets and lease liabilities recorded in the accompanying consolidated balance sheets as of March 31, 2025 and June 30, 2024:

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

2025 June 30,

9 unchanged sentences

_________________

(a) As of December 31, 2024, Operating lease liabilities, current and Operating lease liabilities, noncurrent included balances o f $ 43,276 and $ 715,368 , r espectively, that are payable to MSG Entertainment.

(a) As of March 31, 2025, Operating lease liabilities, current and Operating lease liabilities, noncurrent included balances o f $ 44,437 and $ 817,504 , 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.

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

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

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

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

2025 2024 2025 2024

Operating lease cost Direct operating expenses $ 26,781 $ 24,362 $ 28,092 $ 25,673

Operating lease cost Selling, general and administrative expenses

Operating lease costs Direct operating expenses $ 33,380 $ 35,370 $ 61,472 $ 61,043

Operating lease costs Selling, general and administrative expenses

3,693 2,320 8,126 6,960

2 unchanged sentences

Supplemental Information

For the six months ended December 31, 2024 and 2023, cash paid for amounts included in the measurement of lease liabilities was $ 26,463 and $ 26,095 , respectively.

The weighted average remaining lease term for operating leases recorded in the accompanying consolidated balance sheet as of December 31, 2024 was 29.4 years.

The weighted average discount rate was 7.11 % as of December 31, 2024 and represented the Company’s estimated incremental borrowing rate, assuming a secured borrowing, based on the remaining lease term at the period in which the lease term expectation commenced or was modified.

Maturities of operating lease liabilities as of December 31, 2024 were as follows:

For the nine months ended March 31, 2025 and 2024, cash paid for amounts included in the measurement of lease liabilities was $ 39,172 and $ 39,119 , respectively.

For the nine months ended March 31, 2025, non-cash additions to right-of-use assets and operating lease liabilities were $ 86,201 .

The weighted average remaining lease term for operating leases recorded in the accompanying consolidated balance sheet as of March 31, 2025 was 28.4 years.

The weighted average discount rate was 7.05 % as of March 31, 2025 and represented the Company’s estimated incremental borrowing rate, assuming a secured borrowing, based on the remaining lease term at the period in which the lease term expectation commenced or was modified.

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

Fiscal year ending June 30, 2025 (remainder) $ 12,708

11 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 December 31, 2024 and June 30, 2024 was $ 226,523 .

The Company’s indefinite-lived intangible assets as of December 31, 2024 and June 30, 2024 were as follows:

The carrying amount of goodwill as of March 31, 2025 and June 30, 2024 was $ 226,523 .

The Company’s indefinite-lived intangible assets as of March 31, 2025 and June 30, 2024 were as follows:

Sports franchises $ 102,564

15 unchanged sentences

_________________

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

During the three and six months ended December 31, 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) During the three and nine months ended March 31, 2025, the Company recorded impairment charges and reductions in carrying value resulting from observable price changes of $ 0 and $ 894 , respectively, related to its equity securities without readily determinable fair values in Miscellaneous expense, net within the accompanying consolidated statements of operations.

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

MADISON SQUARE GARDEN SPORTS CORP.

1 unchanged sentence

Equity Method Investments

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

During the three and six months ended December 31, 2023, the Company recognized its net share of losses of $ 442 and $ 857 , respectively, in Miscellaneous (expense) income, net within the Company’s consolidated statements of operations.

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

The Company holds preferred shares of the capital stock of Hard Carry Gaming, Inc.

(“NRG”), a professional gaming and entertainment company.

During the three and nine months ended March 31, 2025, the Company recognized its net share of losses of $ 26 and $ 542 , respectively, in Miscellaneous expense, net within the Company’s consolidated statements of operations.

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, net within the Company’s consolidated statements of operations.

As of March 31, 2025 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 cost basis and carrying value of equity investments with readily determinable fair values are as follows:

December 31, 2024 June 30, 2024

March 31, 2025 June 30, 2024

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

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$ 26,444 $ 32,050 $ 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 statements of operations, for the three and six months ended December 31, 2024 and 2023:

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

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 and nine months ended March 31, 2025 and 2024:

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

2025 2024 2025 2024

Unrealized (loss) gain - Xtract One common stock $ ( 3,183 ) $ 1,761 $ ( 3,716 ) $ ( 4,792 )

Unrealized gain - other equity investments with readily determinable fair values 77 821 1,042 691

Unrealized loss - Xtract One common stock $ ( 3,387 ) $ ( 853 ) $ ( 7,103 ) $ ( 5,645 )

Unrealized (loss) gain - other equity investments with readily determinable fair values ( 319 ) 809 723 1,501

Realized gain - other equity investments with readily determinable fair values 184 12 250 55

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

Fair Value Hierarchy December 31,

Fair Value Hierarchy March 31,

2025 June 30,

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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.

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 December 31, 2024 and June 30, 2024:

The following are key assumptions used to calculate the fair value of the warrants as of March 31, 2025 and June 30, 2024:

2025 June 30,

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

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

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

2025 2024 2025 2024

Balance at beginning of period $ 3,838 $ 8,802 $ 6,995 $ 13,098

Unrealized (losses) gains on warrants ( 2,113 ) 1,122 ( 3,157 ) ( 4,296 )

Unrealized losses on warrants ( 1,934 ) ( 1,529 ) ( 5,091 ) ( 5,825 )

Balance at end of period $ 1,904 $ 7,273 $ 1,904 $ 7,273

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

December 31, 2024 June 30, 2024

March 31, 2025 June 30, 2024

Value Carrying

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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.

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 the New Sublease Agreement described in Note 7 and activities in the ordinary course of business.

Legal Matters

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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.

Knicks LLC is required to pay a commitment fee ranging from 0.250 % to

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

outstanding balance under the Knicks Revolving Credit Facility was $ 275,000 as of December 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 December 31, 2024 was 5.70 % .

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

In addition, on January 23, 2025, the Company made a principal repayment of $ 8,000 under the Knicks Revolving Credit Facility.

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, 2025 , the Company made principal repayments of $ 8,000 under the Knicks Revolving Credit Facility.

The outstanding balance under the Knicks Revolving Credit Facility was $ 267,000 as of March 31, 2025, which was recorded as Long-term debt in the accompanying consolidated balance sheet.

The interest rate on the Knicks Revolving Credit Facility as of March 31, 2025 was 5.67 % .

During the nine months ended March 31, 2025, the Company made interest payments of $ 12,897 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.

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

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

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

Rangers Revolving Credit Facility

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

There were no borrowings outstanding under the Rangers Revolving Credit Facility as of December 31, 2024 and the Company did not make any interest payments during the six months ended December 31, 2024 in respect of the Rangers Revolving Credit Facility.

There were no borrowings outstanding under the Rangers Revolving Credit Facility as of March 31, 2025 and the Company did not make any interest payments during the nine months ended March 31, 2025 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.

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

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

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

Rangers NHL Advance Agreement

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The advanced amount may 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 December 31, 2024 and was recorded as Debt in the accompanying consolidated balance sheet.

During the six months ended December 31, 2024, the Company made interest p ayments of $ 450 .

In addition, on January 3, 2025, the Company made a principal repayment of $ 6,000 under the Rangers NHL Advance Agreement .

During the nine months ended March 31, 2025, the Company made principal repayments of $ 6,000 under the Rangers NHL Advance Agreement .

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

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

Deferred Financing Costs

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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 six months ended December 31, 2024 and 2023.

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

Three Months Ended Six Months Ended

December 31, December 31,

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

Three Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

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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 six months ended December 31, 2024 was $ 1,244 and $ 2,527 , respectively, and $ 1,314 and $ 2,608 for the three and six months ended December 31, 2023, respectively.

Expense related to the 401(k) Plan and Excess Savings Plan for the three and nine months ended March 31, 2025 was $ 1,500 and $ 4,027 , respectively, and $ 1,261 and $ 3,869 for the three and nine months ended March 31, 2024, 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 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 of $ 142 and $ 1,107 for the three and six months ended December 31, 2024, respectively, and $ 839 and $ 735 for the three and six months ended December 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 $ 142 and $ 1,107 for the three and six months ended December 31, 2024, respectively, and $ 839 and $ 735 for the three and six months ended December 31, 2023, respectively, within Miscellaneous (expense) income, net to reflect t he remeasurement of the fair value of assets under the Deferred Compensation Plan.

The Company recorded (compensation cost credits)/compensation expense of $( 134 ) and $ 973 for the three and nine months ended March 31, 2025, respectively, and $ 821 and $ 1,556 for the three and nine months ended March 31, 2024, respectively, within Selling, general and administrative expenses to reflect the remeasurement of the Deferred Compensation Plan liability.

In addition, the Company recorded (losses)/gains of $( 134 ) and $ 973 for the three and nine months ended March 31, 2025, respectively, and $ 821 and $ 1,556 for the three and nine months ended March 31, 2024, 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:

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

Share-based compensation expense was $ 5,991 and $ 10,259 for the three and six months ended December 31, 2024, respectively, and $ 6,570 and $ 10,719 for the three and six months ended December 31, 2023, respectively.

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

Share-based compensation expense was $ 3,900 and $ 14,159 for the three and nine months ended March 31, 2025, respectively, and $ 7,350 and $ 18,069 for the three and nine months ended March 31, 2024, respectively.

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

Restricted Stock Units Award Activity

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

Number of Weighted-Average

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Forfeited / Cancelled ( 2 ) ( 3 ) $ 173.51

Unvested award balance, December 31, 2024 102 137 $ 186.27

Unvested award balance, March 31, 2025 93 137 $ 184.48

_____________________

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

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

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

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, 51 of these RSUs, with an aggregate value of $ 10,662 , 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 six months ended December 31, 2024.

The fair value of RSUs that vested during the six months ended December 31, 2023 was $ 19,195 .

The weighted-average fair value per share at grant date of RSUs granted during the six months ended December 31, 2023 was $ 177.39 .

To fulfill the Company’s current and former employees’ required statutory tax withholding obligations for the applicable income and other employment taxes, 55 of these RSUs, with an aggregate value of $ 10,662 , 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 nine months ended March 31, 2025.

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

The weighted-average fair value per share at grant date of RSUs granted during the nine months ended March 31, 2024 was $ 177.62 .

Stock Options Award Activity

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

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

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

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Cancelled — $ —

Balance as of December 31, 2024 94 $ 138.78 2.96 $ 8,153

Exercisable as of December 31, 2024 94 $ 138.78 2.96 $ 8,153

Balance as of March 31, 2025 94 $ 138.78 2.71 $ 5,249

Exercisable as of March 31, 2025 94 $ 138.78 2.71 $ 5,249

MADISON SQUARE GARDEN SPORTS CORP.

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Stock Repurchase Program

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

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

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

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

During the six months ended December 31, 2024 and 2023, the Company did not repurchase any shares under its share repurchase program.

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

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

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

Related Party Transactions

As of December 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 owned 100 % of the Company’s outstanding Class B Common Stock and approximately 2.9 % of the Company’s outstanding Class A Common Stock.

Such shares of the Company’s Class A Common Stock and Class B Common Stock, collectively, represented approximately 70.8 % of the aggregate voting power of the Company’s outstanding common stock as of December 31, 2024.

As of March 31, 2025, 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, par value $ 0.01 per share (“Class B Common Stock”) and approximately 2.6 % 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 70.7 % of the aggregate voting power of the Company’s outstanding common stock as of March 31, 2025.

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

(“AMC Networks”).

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

The Company was party to the following agreements and/or arrangements with MSG Entertainment as of March 31, 2025:

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

• Sponsorship sales and service representation agreements (the “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 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 MSG Entertainment certain services associated with the management of premium hospitality sales and other business operations services;

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

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

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

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• 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;

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

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 December 31, 2024 :

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

The Company was also party to the following agreements and/or arrangements with Sphere Entertainment (including through its subsidiary MSG Networks) as of March 31, 2025 :

• 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;

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• Other agreements with MSG Networks entered into in connection with the MSGS Distribution, including an employee matters agreement, agreements related to audio-only distribution rights for Knicks and Rangers games, and certain other arrangements.

On April 24, 2025, Knicks LLC and Rangers LLC (collectively, the “Teams”), entered into a Transaction Support Agreement (the “Transaction Support Agreement”) with respect to amendments to the media rights agreements between subsidiaries of MSG Networks and the Teams and the restructuring of the debt of subsidiaries of MSG Networks (the “Transactions”).

The Transaction Support Agreement contemplates entering into amendments to the media rights agreements to which the Teams are a party, effective as of January 1, 2025, as follows:

• New York Knicks:

◦ a reduction of 28 % in the annual rights fee;

◦ an elimination of the annual rights fee escalator;

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

• New York Rangers:

◦ a reduction of 18 % in the annual rights fee;

◦ an elimination of the annual rights fee escalator;

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

• the issuance by MSG Networks of penny warrants to the Company exercisable for 19.9 % of the equity interests in MSG Networks.

The Transactions will be consummated upon the execution of definitive documents containing terms consistent with those set forth in the Transaction Support Agreement.

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.

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

Additionally, the

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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 six months ended December 31, 2024 and 2023:

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

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

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

2025 2024 2025 2024

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(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 months ended December 31, 2024 of $ 698 reflects an effective tax rate of 39 %.

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

Income tax expense for the three months ended December 31, 2023 of $ 10,784 reflects an effective tax rate of 43 %.

Income tax benefit for the six months ended December 31, 2023 of $ 4,360 reflects an effective tax rate of 49 %.

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

Income tax expense for the three and nine months ended March 31, 2025 of $ 36,857 and $ 30,507 , respectively, reflects an effective tax rate of 163 % and 310 %, respectively.

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 %.

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

The Company was notified in March of 2025 that the State of New York was commencing an audit of the state income tax returns for the fiscal years ended June 30, 2022 and 2023.

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

The Company had $ 35,963 and $ 15,775 of accrued federal and state income tax, recorded within other accrued liabilities in the accompanying consolidated balance sheets as of March 31, 2025 and June 30, 2024, respectively.

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