What changed in this filing

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Item 9A. Controls and Procedures

2025-08-12 compared with 2024-08-13 · 290 added, 229 removed, 1347 unchanged (28% of the section changed)

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Evaluation of Disclosure Controls and Procedures

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

period covered by this report.

Based upon that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer concluded that as of June 30, 2025 the Company’s disclosure controls and procedures were effective.

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(incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K filed on March 31, 2020).

Amended and Restated Certificate of Incorporation of Madison Square Garden Sports Corp.

(formerly, The Madison Square Garden Company) (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on October 1, 2015).

Amendment to the Amended and Restated Certificate of Incorporation of Madison Square Garden Sports Corp., dated April 17, 2020 (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on April 23, 2020).

Amended By-Laws of Madison Square Garden Sports Corp.

Plan of Conversion of Madison Square Garden Sports Corp.

(incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K filed on June 11, 2025).

Articles of Incorporation of Madison Square Garden Sports Corp., dated June 10, 2025 (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on June 11, 2025).

Bylaws of Madison Square Garden Sports Corp., dated June 10, 2025 (incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K filed on June 11, 2025).

Transfer Consent Agreement, dated September 28, 2015 with the NBA (incorporated by reference to Exhibit 4.1 to the Company’s Form 10-K for the fiscal year ended June 30, 2016 filed on August 19, 2016).

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(formerly, The Madison Square Garden Company) and The Dolan Family Affiliates (incorporated by reference to Exhibit 4.2 to the Company’s Current Report on Form 8-K filed on October 1, 2015).

Description of Capital Stock (incorporated by reference to Exhibit 4.5 to the Company’s Form 10-K for the fiscal year ended June 30, 2021 filed on August 19, 2021).

Description of Capital Stock .

Employee Matters Agreement, dated September 11, 2015, by and between MSG Networks Inc.

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Madison Square Garden Sports Corp.

(formerly, The Madison Square Garden Company) 2015 Employee Stock Plan (incorporated by reference to Exhibit 10.4 to the Company’s Form 10-K for the fiscal year ended June 30, 2016 filed on August 19, 2016).

2015 Employee Stock Plan, as amended (incorporated by reference to Annex B to the Company’s Definitive Proxy Statement filed on October 24, 2024).

Madison Square Garden Sports Corp.

(formerly, The Madison Square Garden Company) 2015 Stock Plan for Non-Employee Directors (incorporated by reference to Exhibit 10.6 to the Company’s Form 10-K for the fiscal year ended June 30, 2016 filed on August 19, 2016).

2015 Stock Plan for Non-Employee Directors, as amended (incorporated by reference to Annex C to the Company’s Definitive Proxy Statement filed on October 24, 2024).

Form of Indemnification Agreement between Madison Square Garden Sports Corp.

(formerly, The Madison Square Garden Company) and its Directors and Executive Officers (incorporated by reference to Exhibit 10.8 to Amendment No.

3 to the Company’s Registration Statement on Form 10 filed on July 24, 2015).

and its Directors and Executive Officers (incorporated by reference to Exhibit 10.

1 to the Company’s Current Report on Form 8-K on June 1 1, 2025) .

Form of Madison Square Garden Sports Corp.

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Form of Stock Option Agreement Under the 2015 Employee Stock Plan (incorporated by reference to Exhibit 10.5 to the Company’s Current Report on Form 8-K filed on April 25, 2023).

Employment Agreement dated as of November 17, 2021, between Madison Square Garden Sports Corp.

Employment Agreement, dated as of January 6, 2025, between Madison Square Garden Sports Corp.

and Victoria M.

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

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

and Jamaal Lesane (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 filed on May 5, 2022).

Employment Agreement dated as of September 9, 2022, between Madison Square Garden Sports Corp.

and David Hopkinson (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on September 9, 2022).

Mink (incorporated by reference to Exhibit 10.1 to the Company ’ s Current Report on Form 8-K filed on January 6, 2025).

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

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

Employment Agreement dated as of October 1, 2024 between Madison Square Garden Sports Corp.

and Bryan Warner.

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

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(formerly, MSG Entertainment Spinco, Inc.) (incorporated by reference to Exhibit 10.72 to the Company’s Annual Report on Form 10-K for the year ended June 30, 2020 filed on August 31, 2020).

Madison Square Garden Sports Corp.

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

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

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

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

Insider Trading Policy

Insider Trading Polic y (incorporated by reference to Exh ibit 19.1 to the Company ’ s Annual Report on Form 1 0-K for the year ended June 30, 2024 filed on August 13, 2024).

Subsidiaries of the Registrant.

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

Clawback Policy

Clawback Polic y (incorporated by reference to Exhibit 97.1 to the Company ’ s Annual Report on Form 10-K for the year ended June 30, 2024 filed on August 13, 2024).

101 The following materials from Madison Square Garden Sports Corp.

Annual Report on Form 10-K for the year ended June 30, 2025, formatted in Inline Extensible Business Reporting Language (iXBRL):

(i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Cash Flows, (v) Consolidated Statements of Equity, and (vi) Notes to Consolidated Financial Statements.

(i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive (Loss) Income, (iv) Consolidated Statements of Cash Flows, (v) Consolidated Statements of Equity, and (vi) Notes to Consolidated Financial Statements.

104 Cover Page Interactive Data File (formatted in iXBRL and included in Exhibit 101).

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(in thousands)

(Additions) / Deductions

of Period Charged to Costs and Expenses Charged to Other Accounts Deductions Balance at

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POWER OF ATTORNEY

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

Mink and Mark C.

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

Mink, Bryan Warner and Mark C.

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

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Alexander Shvartsman

/ s / CHARLES F.

Director August 13, 2024

/ s / CHARLES P.

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Director August 12, 2025

/s/ ANDREW LUSTGARTEN Director August 13, 2024

Andrew Lustgarten

/s/ STEPHEN C.

MILLS Director August 12, 2025

/ s / RICHARD D.

Director August 13, 2024

/ s / NELSON PELTZ

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Consolidated Statements of Operations for the years ended June 30, 202 5 , 202 4 and 202 3

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

Consolidated Statements of Comprehensive (Loss) Income for the years ended June 30, 2025, 2024 and 2023

Consolidated Statements of Cash Flows for the years ended June 30, 202 5 , 202 4 and 202 3

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

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

and subsidiaries (the "Company") as of June 30, 2025 and 2024, the related consolidated statements of operations, comprehensive (loss) income, cash flows, and equity, for each of the three years in the period ended June 30, 2025, and the related notes and the consolidated financial statement Schedule II listed in the Index at Item 15 (collectively referred to as the "financial statements").

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of June 30, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended June 30, 2025, in conformity with accounting principles generally accepted in the United States of America.

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Critical Audit Matter Description

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

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

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

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• Compared the Company’s reconciliation of applicable accounts to related parties’ records of transactions and balances;

• For new or amended revenue arrangements among related parties, evaluated the reasonableness of management’s allocation of the transaction price to each performance obligation identified in the arrangement;

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

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Investments 54,720 62,543

Deferred tax assets, net 34,821 —

Other assets 12,753 13,533

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( 32,080 ) ( 40,370 ) 4,747

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

(Loss) income before income taxes ( 17,272 ) 105,668 89,921

Income tax expense ( 5,166 ) ( 46,897 ) ( 44,293 )

Net income 58,771 45,628 48,880

Net (loss) income ( 22,438 ) 58,771 45,628

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

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

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

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

Net (loss) income attributable to Madison Square Garden Sports Corp.’s stockholders $ ( 22,438 ) $ 58,771 $ 47,793

Basic (loss) earnings per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ ( 0.93 ) $ 2.45 $ 1.90

Diluted (loss) earnings per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ ( 0.93 ) $ 2.44 $ 1.89

Weighted-average number of common shares outstanding:

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MADISON SQUARE GARDEN SPORTS CORP.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

(in thousands)

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2025 2024 2023

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

Net (loss) income $ ( 22,438 ) $ 58,771 $ 45,628

Other comprehensive income, before income taxes:

Benefit plans:

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

Net unamortized (losses) gains arising during the period $ ( 437 ) $ 18 $ 215

Amounts reclassified from accumulated other comprehensive loss:

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Other comprehensive income, net of income taxes 55 57 177

Comprehensive income 58,828 45,805 49,721

Comprehensive (loss) income ( 22,383 ) 58,828 45,805

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

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

Comprehensive (loss) income attributable to Madison Square Garden Sports Corp.’s stockholders $ ( 22,383 ) $ 58,828 $ 47,970

See accompanying notes to consolidated financial statements.

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Cash flows from operating activities:

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

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

Net (loss) income $ ( 22,438 ) $ 58,771 $ 45,628

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

Depreciation and amortization 3,218 3,164 3,577

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Purchases of investments ( 3,399 ) ( 7,447 ) ( 13,554 )

Other investing activities 100 — —

Net cash used in investing activities ( 6,920 ) ( 8,898 ) ( 17,759 )

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Repayment of revolving credit facility ( 8,000 ) ( 95,000 ) ( 140,000 )

Payments for financing costs — — ( 2,836 )

Repayment of NHL advance ( 6,000 ) — —

Other financing activities — — 3,607

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Net increase (decrease) in cash, cash equivalents and restricted cash 58,281 54,448 ( 50,559 )

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

Cash, cash equivalents and restricted cash at beginning of period 94,907 40,459 91,018

Cash, cash equivalents and restricted cash at end of period $ 153,188 $ 94,907 $ 40,459

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

Dividends declared ($ 7.00 per share)

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

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

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

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Comprehensive

Loss Total Madison Square Garden Sports Corp.

Stockholders’ Equity Nonredeemable

Noncontrolling

Interests Total Equity

Loss Total Equity

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

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

Net income — — — 58,771 — 58,771

Other comprehensive income — — — — 57 57

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

Comprehensive income — — — — — 58,828

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

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— ( 9,863 ) 9,863 — — —

Dividends declared ($ 7.00 per share)

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

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

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

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

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

Net income — — — 58,771 — 58,771

Net loss — — — ( 22,438 ) — ( 22,438 )

Other comprehensive income — — — — 55 55

Comprehensive income — — — — — 58,828

Comprehensive loss — — — — — ( 22,383 )

Share-based compensation — 17,935 — — — 17,935

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Common stock issued under stock incentive plans — ( 11,004 ) 11,004 — — —

Dividends declared ($ 7.00 per share)

— — — ( 19 ) — ( 19 )

Balance as of June 30, 2025 $ 249 $ 15,348 $ ( 158,543 ) $ ( 137,596 ) $ ( 897 ) $ ( 281,439 )

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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.

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

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

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

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.

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.

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

The Company was incorporated on March 4, 2015 as an indirect, wholly-owned subsidiary of MSG Networks Inc.

The Company was originally incorporated in Delaware on March 4, 2015 as an indirect, wholly-owned subsidiary of MSG Networks Inc.

(“MSG Networks”).

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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).

On June 10, 2025, the Company completed its conversion from a corporation organized under the laws of the State of Delaware to a corporation organized under the laws of the State of Nevada.

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.

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and its subsidiaries.

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

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 loss attributable to nonredeemable noncontrolling interests” and “Comprehensive loss attributable to nonredeemable noncontrolling interests” on the accompanying consolidated balance sheets, consolidated statements of operations and consolidated statements of comprehensive (loss) income, respectively.

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

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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), luxury tax expense, income tax expense, performance and share-based compensation, depreciation and amortization, litigation matters and other matters, as well as in the valuation of contingent consideration and noncontrolling interests resulting from business combination transactions.

In addition, estimates are used in revenue recognition, revenue sharing expense (net of escrow), 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.

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Direct Operating Expenses

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

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

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

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

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

The NBA CBA contains a salary floor (i.e., a floor on each team’s aggregate player salaries with a requirement that the team pay

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

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

The new NHL CBA expires after the 2029-30 season.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

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

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

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

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

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

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

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

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

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

The Company recognizes the estimated amount associated with luxury tax expense or the amount it expects to receive as a non-tax paying team, if applicable, on a straight-line basis over the NBA regular season as a component of direct operating expenses.

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

NBA and NHL Escrow System/Revenue Sharing

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

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

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

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

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

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

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

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

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

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

The plan is funded by a combination of disproportionate contributions from teams with above-average net revenues, subject to certain profit-based limits (each as defined in the plan);

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

The plan is funded by a combination of disproportionate contributions from teams with above-average net revenues (as defined in the plan);

50% of aggregate league-wide luxury tax proceeds;

and collective league sources, if necessary.

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

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

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

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

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

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

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

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

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

(b) then from payments by teams participating in the playoffs, with each team contributing 35% of its gate receipts for each home playoff game in the first round of the playoffs and 50% of its gate receipts for each home playoff game in subsequent playoff rounds;

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

The Company recognizes the amount of its estimated revenue sharing expense associated with the preseason and regular season, net of the amount the Company expects to receive from the escrow, on a straight-line basis over the applicable NBA and NHL seasons as a component of direct operating expenses.

In years when the Knicks or the Rangers participate in the playoffs, the Company recognizes its estimate of the playoff revenue sharing contribution in the periods when the playoffs occur.

As of June 30, 2024 and 2023, the Company had net revenue sharing liabilities, recorded within League-related accruals, of $ 109,011 and $ 94,822 , respectively.

As of June 30, 2025 and 2024, the Company had revenue sharing liabilities, recorded within League-related accruals, of $ 135,276 and $ 109,011 , respectively.

League Assessments

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

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

The Company accounts for forfeitures as they occur.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

The Company accounts for forfeitures as they occur.

In addition, for the Company’s stock option awards, the Company applies the fair value recognition provisions of ASC Topic 718 Compensation — Stock Compensation .

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The carrying amount of cash and cash equivalents either approximates fair value due to the short-term maturity of these instruments or is at fair value.

Checks outstanding in excess of related book balances are included in accounts payable in the accompanying consolidated balance sheets.

The Company presents the change in these book cash overdrafts as cash flows from operating activities.

Restricted Cash

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

The Company had no allowance for doubtful accounts as of June 30, 2025 and 2024.

Long-Lived and Indefinite-Lived Assets

The Company’s long-lived and indefinite-lived assets consist of property and equipment, right-of-use (“ROU”) assets, goodwill,

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

Long-Lived and Indefinite-Lived Assets

The Company’s long-lived and indefinite-lived assets consist of property and equipment, right-of-use (“ROU”) assets, goodwill, indefinite-lived intangible assets and amortizable intangible assets.

indefinite-lived intangible assets and amortizable intangible assets.

Property and equipment is stated at cost.

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

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

1 unchanged sentence

As required by GAAP, to the extent that there is a basis difference between the cost and the underlying equity in the net assets of an equity investment, the Company allocates such differences between tangible and intangible assets.

The Company’s share of net earnings or losses of the investment, inclusive of amortization expense for intangible assets associated with the investment, will be reflected in equity in earnings (loss) of nonconsolidated affiliates on the Company’s consolidated statements of operations.

The Company’s share of net earnings or losses of the investment, inclusive of amortization expense for intangible assets associated

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

with the investment, will be reflected in equity in earnings (loss) of nonconsolidated affiliates on the Company’s consolidated statements of operations.

Dividends received from the investee reduce the carrying amount of the investment.

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

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Recent Accounting Pronouncements

Recently Issued Accounting Pronouncements Not Yet Adopted

Recently Adopted Accounting Pronouncements

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

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This ASU amends certain provisions of 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 adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements.

The Company adopted this standard as of the beginning of fiscal year 2025 and the adoption did not have an impact on the Company’s consolidated financial statements.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In November 2023, the FASB issued ASU No.

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

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

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

The Company adopted this standard as of June 30, 2025 and this standard has been applied retrospectively to all prior periods as presented in Note 20.

Segment Information.

Recently Issued Accounting Pronouncements Not Yet Adopted

In December 2023, the FASB issued ASU No.

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

In November 2024, the FASB issued ASU No.

2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses.

The ASU requires the disclosure of additional information about specific expense categories in the notes to the financial statements.

The ASU is effective for the Company’s Annual Report on Form 10-K for the fiscal year ending June 30, 2028 and subsequent interim periods, with early adoption permitted.

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

Revenue Recognition

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

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

For the year ended June 30, 2025, the Company did not have any impairment losses on receivables arising from contracts with customers.

For the year ended June 30, 2025, the Company recorded impairment losses of $ 109 on contract assets arising from contracts with customers.

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

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

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

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Arrangements with Multiple Performance Obligations

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If performance obligations meet the definition of a series, the contractual fees for all years during the contract term are aggregated and the related revenue is recognized proportionately as the underlying performance obligations are satisfied.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The timing of revenue recognition for each performance obligation is dependent upon the facts and circumstances surrounding the Company’s satisfaction of its respective performance obligation.

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

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

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The resulting transaction price is allocated entirely to the rights provided for the related contract year and revenue is recognized using an output measure of progress toward satisfaction of the Company’s performance obligations within the contract year, as the underlying benefits are conveyed to the licensee.

On June 27, 2025, the media rights agreements between subsidiaries of MSG Networks, on the one hand, and Knicks LLC and

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Rangers LLC (each as defined below), on the other hand, were amended, as follows:

• New York Knicks:

◦ A modification to the annual rights fee to effect a 28 % reduction as of January 1, 2025;

◦ 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 modification to the annual rights fee to effect an 18 % reduction as of January 1, 2025;

◦ an elimination of the annual rights fee escalator;

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

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

The amendments were accounted for as a modification under ASC Subtopic 606 with revenue for the year ended June 30, 2025 reflecting the change in the transaction price in the media rights agreements.

The penny warrants issued to the Company were considered non-cash consideration under ASC Subtopic 606 and the fair value of consideration received was included in the change in transaction price as a result of the modification.

Refer to Note 10 for further details regarding the penny warrant investment and corresponding fair value.

The Company’s sports teams also derive revenue from the distribution of league-wide national and international television contracts and other league-wide revenue sources.

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_________________

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

As of June 30, 2024, 2023 and 2022 the Company’s receivables from contracts with customers above included $ 0 , $ 0 and $ 1,258 , respectively, related to various related parties.

See Note 17 for further details on these related party arrangements.

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

As of June 30, 2025, 2024 and 2023, the Company’s receivables from contracts with customers above included no receivables related to various related parties.

See Note 17 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 luxury tax payments.

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

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

(b) Contract assets, 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.

16 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Computation of Earnings per Common Share

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

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) earnings per common share attributable to the Company’s stockholders (“EPS”) and the number of shares excluded from diluted (loss) earnings per common share, as they were anti-dilutive:

Years Ended June 30,

2025 2024 2023

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

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

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

Net (loss) income attributable to Madison Square Garden Sports Corp.’s stockholders $ ( 22,438 ) $ 58,771 $ 47,793

Dividends to other-than-common stockholders (a)

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

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

$ ( 22,457 ) $ 58,771 $ 45,751

4 unchanged sentences

Weighted-average shares excluded from diluted earnings per share 82 — —

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

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

Basic (loss) earnings per common share attributable to Madison Square Garden Sports Corp’s stockholders $ ( 0.93 ) $ 2.45 $ 1.90

Diluted (loss) earnings per common share attributable to Madison Square Garden Sports Corp’s stockholders $ ( 0.93 ) $ 2.44 $ 1.89

_________________

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

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

Team personnel transactions were a net provision of $ 49,148 , $ 781 and $ 4,412 for the years ended June 30, 2025, 2024 and 2023, respectively, which were recorded as direct operating expenses in the accompanying consolidated statements of operations.

Cash, Cash Equivalent and Restricted Cash

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Restricted cash (a)

8,571 5,771 61

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

4 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

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

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

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

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

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

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

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

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

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

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

The contracted license fee for the first full contract year ended June 30, 2021 was approximately $ 22,500 for the Knicks and approximately $ 16,700 for the

In accordance with the terms of the Prior Sublease Agreement (as defined below) and the New MSGE Lease Agreement, the lease term of the Prior Sublease Agreement was extended until October 31, 2024.

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

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

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

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

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

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

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

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.

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

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

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

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

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

The lease ROU asset and liability were recorded in the Company’s accompanying consolidated balance sheet as of June 30, 2023 based on the present value of minimum lease fixed payments over the lease term utilizing the Company’s incremental borrowing rate as of the lease commencement date.

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

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

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

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

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Operating lease cost Selling, general and administrative expenses 11,819 9,886 2,452

Short-term lease cost Selling, general and administrative expenses 3,971 — —

Short-term lease cost Direct operating expenses — — 185

Total lease cost $ 83,409 $ 77,505 $ 70,870

Supplemental Information

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

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

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Supplemental Information

For the years ended June 30, 2025, 2024 and 2023, cash paid for amounts included in the measurement of lease liabilities was $ 51,880 , $ 52,700 and $ 44,986 , respectively.

For the years ended June 30, 2025, 2024 and 2023, non-cash additions to ROU assets and operating lease liabilities were $ 86,201 , $ 789 and $ 45,357 , respectively.

The weighted average remaining lease term for operating leases recorded on the accompanying consolidated balance sheet as of June 30, 2025 and 2024 was 28.1 years and 29.8 years, respectively.

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

The weighted average discount rate was 7.05 % and 7.10 % as of June 30, 2025 and 2024, respectively, and represented the Company’s estimated incremental borrowing rate, assuming a secured borrowing, based on the remaining lease term at the time of either (i) adoption of the standard or (ii) the period in which the lease term expectation commenced or was modified .

Maturities of operating lease liabilities as of June 30, 2025 are as follows:

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The Company’s goodwill was $ 226,523 as of June 30, 2025 and 2024.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

2 unchanged sentences

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.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Company had no intangible assets subject to amortization as of June 30, 2025 and 2024 as a result of the disposal of CLG in April 2023.

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

Amortization expense for intangible assets was $ 167 for the year ended June 30, 2023.

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

2 unchanged sentences

NRG $ 6,607 $ 7,536

MSG Networks — —

Other equity method investments 4,421 5,038

8 unchanged sentences

_________________

(a) For the years ended June 30, 2024 and 2023, the Company did not have any impairment charges or changes in carrying value recorded to its equity securities without readily determinable fair values .

(a) For the year ended June 30, 2025, 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.

For the year ended June 30, 2024, the Company did not have any impairment charges or changes in carrying value recorded to its equity securities without readily determinable fair values .

Equity Method Investments

4 unchanged sentences

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

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

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

For the years ended June 30, 2025 and 2024, the Company recognized losses related to the investment in NRG of $ 929 and $ 4,412 , respectively in Miscellaneous (expense) income, net within the Company’s consolidated statement of operations.

As of June 30, 2025 and 2024, the Company’s ownership in NRG was approximately 25 %.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

On June 27, 2025, the media rights agreements between subsidiaries of MSG Networks, on the one hand, and Knicks LLC and Rangers LLC, on the other hand, were amended as further described in Note 3.

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

The Company has accounted for the penny warrants issued to the Company as in-substance common stock in accordance with ASC Topic 323, Investments — Equity Method and Joint Ventures , and the Company determined that it has the ability to exert significant influence over the investee.

The Company recorded the investment in MSG Networks penny warrants at fair value as an equity method investment.

The Company estimated the fair value of the MSG Networks warrants based on a discounted cash flow model (income approach).

This approach relied on numerous assumptions and judgments within the model that were subject to various risks and uncertainties.

Principal assumptions utilized, all of which are considered Level III inputs under the fair value hierarchy, include the Company’s estimates of future revenue, estimates of future operating cost, margin assumptions, terminal growth rates and the discount rate applied to estimated future cash flows.

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

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

8 unchanged sentences

Unrealized (loss) gain - Xtract One common stock $ ( 8,090 ) $ ( 5,966 ) $ 15,625

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

Unrealized gain - other equity investments with readily determinable fair values 1,945 1,694 1,095

Realized gain (loss) - other equity investments with readily determinable fair values 250 55 ( 4 )

$ ( 5,895 ) $ ( 4,217 ) $ 16,716

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Fair Value Measurements

10 unchanged sentences

Refer to Note 10 for further details regarding equity investments.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Level III Inputs

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

Year Ended June 30,

Years Ended June 30,

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

Purchases of warrants — 215

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

Unrealized losses on warrants ( 5,391 ) ( 6,318 )

Balance at ending of period $ 1,604 $ 6,995

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

12 unchanged sentences

See Note 13 for more information.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Commitments and Contingencies

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

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

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

2 unchanged sentences

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

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Legal Matters

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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, including a representation as to the absence of a bankruptcy event (as defined in the Knicks Credit Agreement) with respect to the

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

obligor under any local media rights agreement.

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

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

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

During the year ended June 30, 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 June 30, 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 June 30, 2025 was 5.68 %.

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

During the years ended June 30, 2025, 2024 and 2023, the Company made interest payments of $ 16,747 , $ 18,481 and $ 13,085 , respectively, 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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As of June 30, 2025, Knicks LLC was in compliance with this financial covenant .

Knicks Holdings Credit Facility

On November 6, 2020, Knicks Holdings, LLC, an indirect, wholly-owned subsidiary of the Company and the direct parent of Knicks LLC (“Knicks Holdings”), entered into a credit agreement with a syndicate of lenders (the “2020 Knicks Holdings Credit Agreement”).

The 2020 Knicks Holdings Credit Agreement provided for a revolving credit facility of up to $ 75,000 (the “2020 Knicks Holdings Revolving Credit Facility”) to fund working capital needs and for general corporate purposes.

On December 14, 2021, the Company terminated the 2020 Knicks Holdings Revolving Credit Facility in its entirety.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Rangers Revolving Credit Facility

7 unchanged sentences

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

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

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

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

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

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

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

During the year ended June 30, 2024 the Company made interest payments of $ 4,193 in respect of the Rangers Revolving Credit Facility.

There were no borrowings under the Rangers Revolving Credit Facility as of June 30, 2025 and the Company did not make any interest payments during the year ended June 30, 2025 in respect of the Rangers Revolving Credit Facility.

During the years ended June 30, 2024 and 2023, the Company made interest payments of $ 4,193 and $ 4,911 , respectively, 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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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 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

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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.

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

During the year ended June 30, 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 June 30, 2025 and was recorded as Debt in the accompanying consolidated balance sheet.

During the year ended June 30, 2024 the Company made interest payments of $ 1,125 .

During the years ended June 30, 2025, 2024 and 2023, the Company made interest payments of $ 858 , $ 1,125 and $ 675 , respectively, in respect of the Rangers NHL Advance Agreement.

Deferred Financing Costs

3 unchanged sentences

Other assets 520 1,665

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Benefit Plans

7 unchanged sentences

Interest cost 251 272

Actuarial gain ( 18 ) ( 215 )

Actuarial loss (gain) 437 ( 18 )

Benefits paid ( 390 ) ( 248 )

1 unchanged sentence

Benefit obligation at end of period $ 4,872 $ 7,631

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

The actuarial loss of $ 437 , included in the change in benefit obligation for pension benefits in the year ended June 30, 2025, is primarily the result of demographic experience as well as a decrease in the discount rate as of June 30, 2025.

Amounts recognized in the consolidated balance sheets as of June 30, 2025 and 2024 consist of:

2 unchanged sentences

$ ( 4,872 ) $ ( 7,631 )

Accumulated other comprehensive loss, before income tax, as of June 30, 2024 and 2023 consists of the following amounts that have not yet been recognized in net periodic benefit cost:

Actuarial loss $ ( 458 ) $ ( 543 )

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Accumulated other comprehensive loss, before income tax, as of June 30, 2025 and 2024 consists of the following amounts that have not yet been recognized in net periodic benefit cost:

Actuarial loss $ ( 377 ) $ ( 458 )

The following table presents components of net periodic benefit cost for the Pension Plans included in the accompanying consolidated statements of operations for the years ended June 30, 2025, 2024 and 2023.

8 unchanged sentences

(a) For the years ended June 30, 2025, 2024 and 2023, lump-sum payments totaling $ 3,057 , $ 212 and $ 253 , respectively, were distributed to vested participants of the Excess Cash Balance Plan, triggering the recognition of settlement losses in accordance with ASC Topic 715.

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

Due to these pension settlements, the Company was required to remeasure its pension plan liability as of June 30, 2025, 2024 and 2023, respectively.

Assumptions used in calculating the settlement loss recognized include the discount rate used in remeasuring the projected benefit obligation which was 4.99 % as of June 30, 2025, 5.53 % as of June 30, 2024, and 5.57 % as of June 30, 2023.

Settlement charges of $ 437 , $ 30 and $ 30 were recognized in Miscellaneous (expense) income, net for the years ended June 30, 2025, 2024 and 2023, respectively.

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

Other pre-tax changes in benefit obligations recognized in other comprehensive income for the years ended June 30, 2025, 2024 and 2023 are as follows:

Years Ended June 30,

2025 2024 2023

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

Actuarial (loss) gain, net $ ( 437 ) $ 18 $ 215

Recognized actuarial loss 81 37 18

9 unchanged sentences

Discount rate - interest cost 5.05 % 5.15 % 4.27 %

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The discount rates were determined (based on the expected duration of the benefit payments for the plans) from the Willis Towers Watson U.S.

1 unchanged sentence

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

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Estimated Future Benefit Payments

24 unchanged sentences

The “FIP/RP Status Pending/Implemented” column indicates whether a funding improvement plan (“FIP”) for yellow/orange zone plans or a rehabilitation plan (“RP”) for red zone plans is either pending or has been implemented by the trustees of such plan.

The zone status and any FIP or RP information is based on information that the Company received from the plan, and the zone status is as certified by the plan’s actuary.

The last column lists the expiration date(s) or a range of expiration dates of the CBA to which the plans are subject.

There are no other significant changes that affect such comparability.

The zone status and any FIP or RP information is based on information that the Company received from the plan, and

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

the zone status is as certified by the plan’s actuary.

The last column lists the expiration date(s) or a range of expiration dates of the CBA to which the plans are subject.

There are no other significant changes that affect such comparability.

PPA Zone Status FIP/RP Status Pending / Implemented MSG Sports

18 unchanged sentences

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

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

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

The Company recorded compensation expense of $ 2,195 , $ 1,749 and $ 1,091 for the years ended June 30, 2025, 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 of $ 2,195 , $ 1,749 and $ 1,091 for the years ended June 30, 2025, 2024 and 2023, respectively, within Miscellaneous (expense) income, net to reflect the remeasurement of the fair value of assets under the Deferred Compensation Plan.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Amounts recognized in the consolidated balance sheets as of June 30, 2025 and 2024 related to the Deferred Compensation Plan consist of:

6 unchanged sentences

( 22,203 ) ( 17,604 )

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Share-based Compensation

The Company has two share-based compensation plans:

the 2015 Employee Stock Plan (the “Employee Stock Plan”) and the 2015 Stock Plan for Non-Employee Directors (the “Non-Employee Director Plan”).

the 2015 Employee Stock Plan (as amended, the “Employee Stock Plan”) and the 2015 Stock Plan for Non-Employee Directors (as amended, the “Non-Employee Director Plan”).

Under the Employee Stock Plan, the Company is authorized to grant incentive stock options, non-qualified stock options, restricted shares, restricted stock units (“RSUs”), performance RSUs (“PSUs”), stock appreciation rights and other equity-based awards.

14 unchanged sentences

Other than the split of the options and the allocation of the existing exercise price, there were no additional adjustments to the existing options in connection with the Sphere Distribution.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Company’s RSUs/PSUs and/or stock options held by individuals who are solely Sphere Entertainment or MSG Entertainment employees will not be expensed by the Company;

4 unchanged sentences

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

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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

Share-based compensation expense recorded during the years ended June 30, 2025, 2024 and 2023 was $ 17,935 , $ 21,291 and $ 25,203 , respectively.

There were no costs related to share-based compensation in operations that were capitalized for the years ended June 30, 2025, 2024 and 2023.

4 unchanged sentences

Number of Weighted-Average

Date of Grant (a)

Date of Grant

Unvested award balance as of June 30, 2024 105 153 $ 170.61

3 unchanged sentences

Unvested award balance as of June 30, 2025 95 139 $ 184.56

_________________

(a) Weighted-average fair value per share at date of grant does not reflect any adjustment associated with the Sphere Distribution.

See above for a discussion of the treatment of RSUs and PSUs in connection with the Sphere Distribution.

The fair value of RSUs and PSUs that vested during the year ended June 30, 2025 was $ 25,713 .

3 unchanged sentences

The weighted-average fair value per share at grant date of RSUs and PSUs granted during the years ended June 30, 2024 and 2023 was $ 177.66 and $ 165.33 , respectively.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Stock Options Award Activity

10 unchanged sentences

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

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Stock Repurchase Program

13 unchanged sentences

As of June 30, 2025, the Company had $ 184,639 of availability remaining under its stock repurchase authorization.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Related Party Transactions

As of June 30, 2024, certain members of the Dolan family, including certain trusts for members of the Dolan family (collectively, the “Dolan Family Group”), for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, collectively beneficially own 100 % of the Company’s outstanding Class B Common Stock and own approximately 3.0 % of the Company’s outstanding Class A Common Stock.

As of June 30, 2025, certain members of the Dolan family, including certain trusts for the benefit of 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 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, represent approximately 70.7 % of the aggregate voting power of the Company’s outstanding common stock.

4 unchanged sentences

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

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

• Sponsorship sales and service representation agreements, entered into in April 2020 (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 teams receive an allocation of sponsorship and signage revenues associated with sponsorship agreements that include the assets of both the Company and MSG Entertainment;

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

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

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

• Team sponsorship allocation agreement with MSG Entertainment, pursuant to which the teams receive an allocation of certain sponsorship and signage revenues associated with sponsorship agreements that include the assets of the Company, MSG Entertainment, and Sphere Entertainment, based on the percentage of revenue each company earns relative to the total contract value;

• 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, and legal 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;

3 unchanged sentences

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

• Media rights agreements between the Company and MSG Networks, as amended in June 2025 and set to expire after the 2028-29 seasons, providing MSG Networks with local telecast rights for Knicks and Rangers games in exchange for media rights fees;

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

• An agreement with MSG Networks pursuant to which the Company was issued penny warrants exercisable for 19.9 % of the equity interests in MSG Networks, as further described in Note 10;

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

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

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

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

5 unchanged sentences

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

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

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

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Revenues and Operating Expenses (Credits)

13 unchanged sentences

(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

Income tax expense (benefit) attributable to operations is comprised of the following components:

10 unchanged sentences

Income tax expense $ 5,166 $ 46,897 $ 44,293

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

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

Years Ended June 30,

2025 2024 2023

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

Federal tax (benefit) expense at statutory federal rate $ ( 3,627 ) $ 22,190 $ 18,883

State income taxes, net of federal benefit 2,686 18,348 15,066

7 unchanged sentences

Other nondeductible expenses 559 631 558

Dividends received deduction ( 1,159 ) ( 814 ) —

Excess tax benefit related to shared based-payments awards ( 468 ) ( 265 ) 636

1 unchanged sentence

Income tax expense $ 5,166 $ 46,897 $ 44,293

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The tax effects of temporary differences which give rise to significant portions of the deferred tax assets and liabilities as of June 30, 2025 and 2024 are as follows:

5 unchanged sentences

Arena deferred rent adjustment 42,094 34,342

NBA luxury tax 12,528 —

Investments 9,018 3,303

Deferred revenue accelerated for tax purposes 964 4,945

7 unchanged sentences

Total deferred tax liabilities $ ( 107,794 ) $ ( 112,483 )

Net deferred tax liability $ ( 16,925 ) $ ( 24,024 )

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Net deferred tax asset (liability) $ 34,821 $ ( 16,925 )

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax asset will not be realized.

1 unchanged sentence

The Company will continue to assess the realizability of its deferred tax assets on a quarterly basis.

The Company does no t have any uncertain tax positions as of June 30, 2024 and 2023.

The Company does not have any uncertain tax positions as of June 30, 2025 and 2024.

Prior to the Sphere Distribution, the Company and Sphere Entertainment entered into a Tax Disaffiliation Agreement (“TDA”) that governs the parties’ respective rights, responsibilities and obligations with respect to taxes and tax benefits.

1 unchanged sentence

federal, state, local and other applicable income taxes of Sphere Entertainment for any taxable period or portion of such period ending on or before the Sphere Distribution Date.

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.

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 audit was finalized in July 2025 and resulted in no material changes.

The federal and state statute of limitations are currently open for tax returns for years starting with 2022.

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

Concentrations of Risk

During the years ended June 30, 2025, 2024 and 2023, the Company made income tax payments, net of refunds, of $ 65,733 , $ 48,035 and $ 18,615 , respectively.

On July 4, 2025, the Reconciliation Bill commonly known as the “One Big Beautiful Bill Act” (the “OBBBA”) was enacted into law.

OBBBA includes a broad range of tax reform provisions affecting businesses, including extending and modifying certain key Tax Cuts & Jobs Act provisions (both domestic and international), expanding certain Inflation Reduction Act incentives, and accelerating the phase-out of others.

The Company is currently evaluating the impact of these provisions on the Company’s consolidated financial statements.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Additional Financial Information

Prepaid expenses consisted of the following:

2025 June 30,

Prepaid employee-related costs $ 34,850 $ 25,134

Other prepaid expenses 8,567 5,822

Total prepaid expenses $ 43,417 $ 30,956

Concentration of Risk

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

12 unchanged sentences

As of June 30, 2025, approximately 115 full-time and part-time employees, which represent approximately 11.4 % of the Company’s workforce, are subject to CBAs.

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

There are 38 union employees subject to CBAs that expired as of June 30, 2025 and there are no union employees subject to CBAs that will expire by June 30, 2026.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Segment Information

The Company operates as one operating segment.

The Company’s CODM is its Executive Chairman and Chief Executive Officer, who reviews financial information presented on a consolidated basis.

The CODM uses consolidated net (loss) income to assess financial performance and allocate resources.

Consolidated net (loss) income is used by the CODM to make key operating decisions, such as entering into significant contracts, setting strategic objectives for the Company, and approving annual operating budgets, including approving significant investments in team personnel, and other key executive leadership positions.

The CODM does not review segment assets at a different asset level or category than those disclosed in the accompanying consolidated balance sheets.

The following table presents selected financial information with respect to the Company’s single operating segment for the years ended June 30, 2025, 2024 and 2023:

Years Ended June 30,

2025 2024 2023

$ 1,039,220 $ 1,027,149 $ 887,447

Significant segment expenses:

Ticketing and sponsorship sales related expenses (a)

( 64,272 ) ( 62,347 ) ( 62,651 )

Marketing & event-related expenses (b)

( 58,037 ) ( 65,993 ) ( 60,392 )

Corporate & administrative (c)

( 113,142 ) ( 102,482 ) ( 92,071 )

Operating lease expenses and other rental expenses associated with the Arena License Agreements (d)

( 69,337 ) ( 69,288 ) ( 69,749 )

Team operating expenses (e)

( 508,295 ) ( 380,027 ) ( 365,016 )

Depreciation and amortization ( 3,218 ) ( 3,164 ) ( 3,577 )

Interest income 4,034 2,787 2,392

Interest expense ( 21,652 ) ( 27,589 ) ( 22,884 )

Miscellaneous (expense) income, net ( 14,462 ) ( 15,568 ) 25,239

Income tax expense ( 5,166 ) ( 46,897 ) ( 44,293 )

Other segment items (f)

( 208,111 ) ( 197,810 ) ( 148,817 )

Net (loss) income $ ( 22,438 ) $ 58,771 $ 45,628

_________________

(a) Ticketing and sponsorship sales related expenses consist of (i) expenses related to selling tickets to our sports teams’ home games and primarily include employee compensation and related benefits, credit card fees, and other general and administrative expenses, and (ii) fees related to the Company’s Sponsorship Sales and Service Representation Agreements and sponsorship fulfillment costs.

See Note 17 for further details related to the Sponsorship Sales and Service Representation Agreements.

(b) Marketing & event-related expenses primarily relate to marketing and production expenses and services provided to the Company by MSG Entertainment pursuant to the Arena License Agreements.

(d) Operating lease expenses and other rental expenses associated with the Arena License Agreements primarily consist of operating lease costs, commercial rent tax, and other expenses associated with the Arena License Agreements.

See Note 17 for further details related to the Arena License Agreements.

(e) Team operating expenses primarily consist of team personnel compensation (net of escrow), NBA luxury tax, expenses associated with day-to-day team operations, including for travel, player insurance, and operating costs of the Company’s training center in Greenburgh, NY.

(f) Other segment items primarily consist of net provisions for league revenue sharing expense (excluding playoffs), league assessments, playoff related expenses, cost of goods sold and commission expense related to merchandise revenues, and share-based compensation expense.

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

What changed 10-K

Item 9A. Controls and Procedures