UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________

FORM 10-Q

________________________

(Mark One)


			☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~March 31~~September 30, 2025


			☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 1-36900

MADISON SQUARE GARDEN SPORTS CORP.

(Exact name of registrant as specified in its charter)

Delaware						47-3373056
Nevada						47-3373056
(State or other jurisdiction ofincorporation or organization)						(I.R.S. EmployerIdentification No.)

Two Penn Plaza

New York

10121

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (212) 465-4111

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock	MSGS	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☑ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☑ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☑ No

Number of shares of common stock outstanding as of ~~April~~October 2524, 2025:

Class A Common Stock par value $0.01 per share			—			19,~~488~~529,~~096~~890
Class B Common Stock par value $0.01 per share			—			4,529,517

Table of Contents

MADISON SQUARE GARDEN SPORTS CORP.

INDEX TO FORM 10-Q

			Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets as of March 31, 2025 (unaudited) and June 30, 2024			1
Consolidated Balance Sheets as of September 30, 2025 (unaudited) and June 30, 2025			1
Consolidated Statements of Operations for the three and nine months ended March 31, 2025 and 2024 (unaudited)			3
Consolidated Statements of Operations for the three months ended September 30, 2025 and 2024 (unaudited)			3
Consolidated Statements of Comprehensive (Loss) Income for the three and nine months ended March 31, 2025 and 2024 (unaudited)			4
Consolidated Statements of Comprehensive Loss for the three months ended September 30, 2025 and 2024 (unaudited)			4
Consolidated Statements of Cash Flows for the nine months ended March 31, 2025 and 2024 (unaudited)			5
Consolidated Statements of Cash Flows for the three months ended September 30, 2025 and 2024 (unaudited)			5
Consolidated Statements of Equity for the three and nine months ended March 31, 2025 and 2024 (unaudited)			6
Consolidated Statements of Equity for the three months ended September 30, 2025 and 2024 (unaudited)			6
Notes to Consolidated Financial Statements (unaudited)			107
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			2825
Item 3. Quantitative and Qualitative Disclosures About Market Risk			3934
Item 4. Controls and Procedures			3934
PART II. OTHER INFORMATION
Item 1. Legal Proceedings			4035
Item 1A. Risk Factors			40
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			35
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			41
Item 6. Exhibits			36
Item 6. Exhibits			42

Table of Contents

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

MADISON SQUARE GARDEN SPORTS CORP.

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

March 31,2025

June 30,2024

September 30,2025

June 30,2025

(Unaudited)

ASSETS

Current Assets:

Cash and cash equivalents

9648,~~536~~634

89144,~~136~~617

Restricted cash

8,~~500~~642

58,~~771~~571

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

110,044

33,781

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

42,618

25,855

Net related party receivables

2926,~~149~~684

323,~~255~~582

Prepaid expenses

35102,~~297~~500

3043,~~956~~417

Other current assets

3917,~~761~~615

25,~~043~~053

Total current assets

~~319~~246,~~287~~693

~~216~~251,~~942~~095

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

29,407

28,541

Property and equipment, net of accumulated depreciation and amortization of $54,446 and $53,635 as of September 30, 2025 and June 30, 2025, respectively

28,728

28,962

Right-of-use lease assets

~~763~~758,~~469~~422

~~694~~760,~~566~~456

Indefinite-lived intangible assets

103,644

Goodwill

226,523

Investments

5373,~~425~~515

6254,~~543~~720

Other assets

8,743

13,533

Deferred tax assets, net

43,268

34,821

Total assets

1,504,498

1,346,292

Other assets

36,609

12,753

Total assets

1,517,402

1,472,974

See accompanying notes to consolidated financial statements.

Table of Contents

MADISON SQUARE GARDEN SPORTS CORP.

CONSOLIDATED BALANCE SHEETS (Continued)

(in thousands, except per share data)

March 31,2025

June 30,2024

September 30,2025

June 30,2025

(Unaudited)

LIABILITIES AND EQUITY

Current Liabilities:

Accounts payable

65,~~948~~201

9,~~900~~336

Net related party payables

64,~~530~~394

64,~~718~~807

Debt

24,000

3024,000

Accrued liabilities:

Employee related costs

138,962

133,930

Employee-related costs

56,551

98,924

League-related accruals

~~170~~156,~~159~~564

~~120~~196,~~876~~567

Other accrued liabilities

535,~~652~~794

2113,~~613~~093

Operating lease liabilities, current

5154,~~015~~233

5052,~~267~~618

Deferred revenue

~~165~~330,~~923~~587

~~148~~164,~~678~~178

Total current liabilities

~~617~~637,~~189~~324

~~521~~563,~~982~~523

Long-term debt

267,000

~~275~~267,000

Operating lease liabilities, noncurrent

~~848~~829,~~534~~365

~~749~~841,~~952~~050

Defined benefit obligations

944

4,103

Other employee-related costs

77,257

82,178

Other employee related costs

47,257

43,493

Deferred revenue, noncurrent

634

662

Deferred tax liabilities, net

6,305

16,925

Total liabilities

1,811,580

1,754,413

Deferred revenue, noncurrent

718

1,147

Total liabilities

1,787,947

1,612,602

Commitments and contingencies (see Note 11)

Madison Square Garden Sports Corp. Stockholders’ Equity:

Class A Common Stock, par value $0.01, 120,000 shares authorized; 19,486 and 19,423 shares outstanding as of March 31, 2025 and June 30, 2024, respectively

204

Class A Common Stock, par value $0.01, 120,000 shares authorized; 19,530 and 19,488 shares outstanding as of September 30, 2025 and June 30, 2025, respectively

204

Class B Common Stock, par value $0.01, 30,000 shares authorized; 4,530 shares outstanding as of March 31, 2025 and June 30, 2024

Class B Common Stock, par value $0.01, 30,000 shares authorized; 4,530 shares outstanding as of September 30, 2025 and June 30, 2025

Preferred stock, par value $0.01, 15,000 shares authorized; none outstanding as of March 31, 2025 and June 30, 2024

—

Preferred stock, par value $0.01, 15,000 shares authorized; none outstanding as of September 30, 2025 and June 30, 2025

—

Additional paid-in capital

114,~~855~~403

1915,~~079~~348

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

(158,826)

(169,547)

Treasury stock, at cost, 918 and 960 shares as of September 30, 2025 and June 30, 2025, respectively

(151,524)

(158,543)

Accumulated deficit

(~~135~~146,~~816~~410)

(~~115~~137,~~139~~596)

Accumulated other comprehensive loss

(~~911~~896)

(~~952~~897)

Total equity

(~~283~~294,~~449~~178)

(~~266~~281,~~310~~439)

Total liabilities and equity

1,~~504~~517,~~498~~402

1,~~346~~472,~~292~~974

See accompanying notes to consolidated financial statements.

Table of Contents

MADISON SQUARE GARDEN SPORTS CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(in thousands, except per share data)

	Three Months Ended				Nine Months Ended
	Three Months Ended September 30,
	March 31,				March 31,
	2025		2024
	2025		2024		2025		2024
Revenues (a)	$	39,454	$	53,307
Revenues (a)	$	424,197	$	429,954	$	835,263	$	799,898
Operating expenses:
Direct operating expenses (b)	~~316~~8,~~335~~279		~~273~~8,~~026~~211		~~600,299~~		~~508,771~~
Selling, general and administrative expenses (c)	7457,~~697~~789		7652,~~398~~587		~~195,184~~		~~195,020~~
Depreciation and amortization	~~823~~811		~~788~~782		~~2,396~~		~~2,372~~
Operating income	32,342		79,742		37,384		93,735
Operating loss	(27,425)		(8,273)
Other income (expense):
Interest income	~~1,051~~578		~~477~~864		~~2,605~~		~~1,549~~
Interest expense	(5,~~020~~591)		(6,~~921~~055)		~~(16,662)~~		~~(21,269)~~
Miscellaneous expense, net	(5,743)		(1,403)		(13,478)		(11,077)
Miscellaneous income (expense), net	15,085		(1,126)
	(9,712)		(7,847)		(27,535)		(30,797)
	10,072		(6,317)
Income before income taxes	22,630		71,895		9,849		62,938
Loss before income taxes	(17,353)		(14,590)
Income tax expense	(36,857)		(34,018)		(30,507)		(29,658)
Income tax benefit	8,555		7,048
Net (loss) income	$	(14,227)	$	37,877	$	(20,658)	$	33,280
Net loss	$	(8,798)	$	(7,542)
Basic (loss) earnings per common share attributable to Madison Square Garden Sports Corp.’s stockholders	$	(0.59)	$	1.58	$	(0.86)	$	1.39
Basic loss per common share attributable to Madison Square Garden Sports Corp.’s stockholders	$	(0.37)	$	(0.31)
Diluted (loss) earnings per common share attributable to Madison Square Garden Sports Corp.’s stockholders	$	(0.59)	$	1.57	$	(0.86)	$	1.38
Diluted loss per common share attributable to Madison Square Garden Sports Corp.’s stockholders	$	(0.37)	$	(0.31)
Weighted-average number of common shares outstanding:
Basic	24,~~103~~116		24,~~028~~049		~~24,084~~		~~24,005~~
Diluted	24,~~103~~116		24,~~100~~049		~~24,084~~		~~24,076~~

_________________

(a)Includes revenues from related parties of $676,~~704~~760 and $868,~~944~~904 for the three months ended ~~March~~September 3130, 2025 and 2024, respectively~~, and $156,825 and $173,419 for the nine months ended March 31, 2025 and 2024, respectively~~.

(b)Includes net charges from related parties of $472,~~476~~454 and $492,~~907~~295 for the three months ended ~~March~~September 3130, 2025 and 2024, respectively~~, and $88,528 and $88,206 for the nine months ended March 31, 2025 and 2024, respectively~~.

(c)Includes net charges from related parties of $2214,~~439~~732 and $1811,~~707~~862 for the three months ended ~~March~~September 3130, 2025 and 2024, respectively~~, and $53,994 and $47,462 for the nine months ended March 31, 2025 and 2024, respectively~~.

See accompanying notes to consolidated financial statements.

Table of Contents

MADISON SQUARE GARDEN SPORTS CORP.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS~~) INCOME~~

(Unaudited)

(in thousands)

	Three Months Ended				Nine Months Ended
	Three Months Ended September 30,
	March 31,				March 31,
	2025		2024
	2025		2024		2025		2024
Net loss	$	(8,798)	$	(7,542)
Net (loss) income	$	(14,227)	$	37,877	$	(20,658)	$	33,280
Other comprehensive income, before income taxes:
Pension plans:
Amounts reclassified from accumulated other comprehensive loss:
Amortization of actuarial loss included in net periodic benefit cost	212		1020		61		28
Other comprehensive income, before income taxes	212		1020		61		28
Income tax expense related to items of other comprehensive income	(71)		(36)		~~(20)~~		~~(9)~~
Other comprehensive income, net of income taxes	141		714		41		19
Comprehensive (loss) income	$	(14,213)	$	37,884	$	(20,617)	$	33,299
Comprehensive loss	$	(8,797)	$	(7,528)

See accompanying notes to consolidated financial statements.

Table of Contents

MADISON SQUARE GARDEN SPORTS CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(in thousands)

Nine Months Ended

Three Months Ended September 30,

March 31,

2025

2024

Cash flows from operating activities:

Net (loss) income

(20,658)

33,280

Net loss

(8,798)

(7,542)

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

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

Depreciation and amortization

~~2,396~~811

~~2,372~~782

Benefit from deferred income taxes

(108,~~640~~448)

(97,~~139~~140)

Share-based compensation expense

144,~~159~~844

184,~~069~~268

Unrealized loss on equity investments with readily determinable fair value and warrants

11,471

9,969

Unrealized (gain) loss on equity investments with readily determinable fair value and warrants

(15,500)

612

Other non-cash adjustments

31,~~652~~612

31,~~136~~673

Change in assets and liabilities:

Accounts receivable, net

(7616,~~263~~763)

(3611,~~704~~521)

Net related party receivables

3(23,~~106~~102)

(76,~~221)~~237

Prepaid expenses and other assets

(1575,~~270~~787)

(4959,~~252~~309)

Investments

(12,~~963~~181)

(2,~~067~~046)

Accounts payable

(24,~~949~~190)

(34,~~190~~697)

Net related party payables

(~~195~~497)

(~~563~~2,064)

Accrued and other liabilities

87(95,~~795~~300)

47(93,~~831~~834)

Deferred revenue

16166,~~816~~381

~~(51~~158,~~625)~~134

Operating lease right-of-use assets and lease liabilities

30(8,~~427~~036)

28(9,~~884~~711)

Net cash provided by (used in) operating activities

41,884

(16,220)

Net cash used in operating activities

(84,954)

(26,158)

Cash flows from investing activities:

Capital expenditures

(~~3,248~~371)

(~~1,084~~359)

Purchases of investments

(21,~~101~~477)

(~~4,605~~804)

Net cash used in investing activities

(51,~~349~~848)

(51,~~689~~163)

Cash flows from financing activities:

Dividends paid

(~~633~~340)

(~~682~~440)

Taxes paid in lieu of shares issued for equity-based compensation

(118,~~773~~770)

(89,~~084~~062)

Proceeds from revolving credit facilities

—

75,000

Net cash used in financing activities

(9,110)

(9,502)

Repayment of revolving credit facilities

(8,000)

(40,000)

Net decrease in cash, cash equivalents and restricted cash

(95,912)

(36,823)

Repayment of NHL advance

(6,000)

—

Cash, cash equivalents and restricted cash at beginning of period

153,188

94,907

Net cash (used in) provided by financing activities

(26,406)

26,234

Cash, cash equivalents and restricted cash at end of period

57,276

58,084

Net increase in cash, cash equivalents and restricted cash

10,129

4,325

Cash, cash equivalents and restricted cash at beginning of period

94,907

40,459

Cash, cash equivalents and restricted cash at end of period

105,036

44,784

Non-cash investing and financing activities:

Capital expenditures incurred but not yet paid

22233

~~105~~232

See accompanying notes to consolidated financial statements.

Table of Contents

MADISON SQUARE GARDEN SPORTS CORP.

CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited)

(in thousands)

	Three Months Ended March 31, 2025
	Three Months Ended September 30,
	CommonStockIssued		AdditionalPaid-InCapital		TreasuryStock		Accumulated Deficit		AccumulatedOtherComprehensiveLoss		Total Equity
	2025		2024
Balance as of December 31, 2024	$	249	$	9,776	$	(160,647)	$	(121,589)	$	(925)	$	(273,136)
Common Stock Issued	$	249	$	249
Net loss	—		—		—		(14,227)		—		(14,227)
Additional Paid-In Capital
Other comprehensive income	—		—		—		—		14		14
Beginning Balance	15,348		19,079
Comprehensive loss	—		—		—		—		—		(14,213)
Share-based compensation	4,844		4,268
Share-based compensation	—		3,900		—		—		—		3,900
Tax withholding associated with shares issued for equity-based compensation	(8,770)		(7,951)
Common stock issued under stock incentive plans	—(7,019)		(17,~~821~~043)		~~1,821~~		—		—		—
Balance as of March 31, 2025	$	249	$	11,855	$	(158,826)	$	(135,816)	$	(911)	$	(283,449)
Ending Balance	4,403		8,353
See accompanying notes to consolidated financial statements.
Treasury Stock
Beginning Balance	(158,543)		(169,547)
Common stock issued under stock incentive plans	7,019		7,043
Ending Balance	(151,524)		(162,504)
Accumulated Deficit
Beginning Balance	(137,596)		(115,139)
Net loss	(8,798)		(7,542)
Dividends declared ($7.00 per share)	(16)		(8)
Ending Balance	(146,410)		(122,689)
Accumulated Other Comprehensive Loss
Beginning Balance	(897)		(952)
Other comprehensive income	1		14
Ending Balance	(896)		(938)
Total Equity	$	(294,178)	$	(277,529)

See accompanying notes to consolidated financial statements.

Table of Contents

MADISON SQUARE GARDEN SPORTS CORP.

CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited)

(in thousands)

	Three Months Ended March 31, 2024
	CommonStockIssued		AdditionalPaid-InCapital		TreasuryStock		Accumulated Deficit		AccumulatedOtherComprehensiveLoss		Total Equity
Balance as of December 31, 2023	$	249	$	11,471	$	(171,400)	$	(178,512)	$	(997)	$	(339,189)
Net income	—		—		—		37,877		—		37,877
Other comprehensive income	—		—		—		—		7		7
Comprehensive income	—		—		—		—		—		37,884
Share-based compensation	—		7,350		—		—		—		7,350
Common stock issued under stock incentive plans	—		(817)		817		—		—		—
Balance as of March 31, 2024	$	249	$	18,004	$	(170,583)	$	(140,635)	$	(990)	$	(293,955)
See accompanying notes to consolidated financial statements.

Table of Contents

MADISON SQUARE GARDEN SPORTS CORP.

CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited)

	Nine Months Ended March 31, 2025
	Common Stock Issued		AdditionalPaid-InCapital		TreasuryStock		Accumulated Deficit		AccumulatedOtherComprehensive Loss		Total Equity
Balance as of June 30, 2024	$	249	$	19,079	$	(169,547)	$	(115,139)	$	(952)	$	(266,310)
Net loss	—		—		—		(20,658)		—		(20,658)
Other comprehensive income	—		—		—		—		41		41
Comprehensive loss	—		—		—		—		—		(20,617)
Share-based compensation	—		14,159		—		—		—		14,159
Tax withholding associated with shares issued for equity-based compensation	—		(10,662)		—		—		—		(10,662)
Common stock issued under stock incentive plans	—		(10,721)		10,721		—		—		—
Dividends declared ($7.00 per share)	—		—		—		(19)		—		(19)
Balance as of March 31, 2025	$	249	$	11,855	$	(158,826)	$	(135,816)	$	(911)	$	(283,449)
See accompanying notes to consolidated financial statements.

Table of Contents

MADISON SQUARE GARDEN SPORTS CORP.

CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited)

(in thousands)

	Nine Months Ended March 31, 2024
	Common Stock Issued		AdditionalPaid-InCapital		TreasuryStock		Accumulated Deficit		AccumulatedOtherComprehensive Loss		Total Equity
Balance as of June 30, 2023	$	249	$	16,846	$	(179,410)	$	(173,910)	$	(1,009)	$	(337,234)
Net income	—		—		—		33,280		—		33,280
Other comprehensive income	—		—		—		—		19		19
Comprehensive income	—		—		—		—		—		33,299
Share-based compensation	—		18,069		—		—		—		18,069
Tax withholding associated with shares issued for equity-based compensation	—		(8,084)		—		—		—		(8,084)
Common stock issued under stock incentive plans	—		(8,827)		8,827		—		—		—
Dividends declared ($7.00 per share)	—		—		—		(5)		—		(5)
Balance as of March 31, 2024	$	249	$	18,004	$	(170,583)	$	(140,635)	$	(990)	$	(293,955)
See accompanying notes to consolidated financial statements.

Table of Contents

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

All amounts included in the following Notes to Consolidated Financial Statements are presented in thousands, except per share data or as otherwise noted.

Note 1. Description of Business and Basis of Presentation

Description of Business

Madison Square Garden Sports Corp. (together with its subsidiaries, collectively, “we,” “us,” “our,” “MSG Sports,” or the “Company”) owns and operates a portfolio of assets featuring some of the most recognized teams in all of sports, including the New York Knickerbockers (“Knicks”) of the National Basketball Association (“NBA”) and the New York Rangers (“Rangers”) of the National Hockey League (“NHL”). Both the Knicks and the Rangers play their home games in Madison Square Garden Arena (“The Garden”). The Company’s other professional sports franchises include two development league teams — the Hartford Wolf Pack of the American Hockey League and the Westchester Knicks of the NBA G League. These professional sports franchises are collectively referred to herein as the “sports teams” or the “teams.” The Company also ~~owns and~~ operates a professional sports team performance center — the Madison Square Garden Training Center in Greenburgh, NY.

The Company operates and reports financial information in one segment. The Company’s decision to organize as one operating segment and report in one segment is based upon its internal organizational structure; the manner in which its operations are managed; and the criteria used by the Company’s Executive Chairman and Chief Executive Officer, its Chief Operating Decision Maker (“CODM”), to evaluate segment performance. The Company’s CODM reviews total company operating results to assess overall performance and allocate resources.

The Company was originally incorporated in Delaware on March 4, 2015 as an indirect, wholly-owned subsidiary of MSG Networks Inc. (“MSG Networks”). All the outstanding common stock of the Company was distributed to MSG Networks stockholders (the “MSGS Distribution”) on September 30, 2015.

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

On July 9, 2021, MSG Networks merged with a subsidiary of Sphere Entertainment and became a wholly-owned subsidiary of Sphere Entertainment. Accordingly, agreements between the Company and MSG Networks are now effectively agreements with Sphere Entertainment on a consolidated basis.

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

Basis of Presentation

The accompanying unaudited consolidated interim financial statements (referred to as the “Financial Statements” herein) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and Article 10 of Regulation S-X of the Securities and Exchange Commission for interim financial information, and should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, ~~2024~~2025 (“fiscal year ~~2024~~2025”). Certain information and note disclosures normally included in the annual financial statements have been condensed or omitted from these Financial Statements. The Financial Statements presented in this Quarterly Report on Form 10-Q are unaudited; however, in the opinion of management, the Financial Statements reflect all adjustments, consisting solely of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods presented. The results of operations for the periods presented are not necessarily indicative of the results that might be expected for future interim periods or for the full fiscal year. The dependence of MSG Sports on revenues from its NBA and NHL sports teams generally means it earns a disproportionate share of its revenues in the second and third quarters of the Company’s fiscal year, which is when the majority of the sports teams’ games are played.

10Reclassifications

Certain reclassifications have been made in order to conform to the current period’s presentation and relate to the combination of Defined benefit obligations and Other employee-related costs in non-current liabilities in the consolidated balance sheets.

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MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Continued)

Note 2. Accounting Policies

Principles of Consolidation

The consolidated financial statements of the Company include the accounts of Madison Square Garden Sports Corp. and its subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation.

Use of Estimates

The preparation of the accompanying Financial Statements in conformity with GAAP requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Such estimates include the valuation of accounts receivable, other current assets, goodwill, intangible assets, other long-lived assets, fair value of investments, deferred tax valuation allowance, tax accruals, and other liabilities. In addition, estimates are used in revenue recognition, revenue sharing expense (net of escrow ~~and excluding playoffs~~), luxury tax expense, income tax expense (benefit), performance and share-based compensation, depreciation and amortization, litigation matters and other matters. Management believes its use of estimates in the Financial Statements to be reasonable.

Management evaluates its estimates on an ongoing basis using historical experience and other factors, including the general economic environment and actions it may take in the future. The Company adjusts such estimates when facts and circumstances dictate. However, these estimates may involve significant uncertainties and judgments and cannot be determined with precision. In addition, these estimates are based on management’s best judgment at a point in time and, as such, these estimates may ultimately differ from actual results. Changes in estimates resulting from weakness in the economic environment or other factors beyond the Company’s control could be material and would be reflected in the Company’s financial statements in future periods.

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In March 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-01, Leases (Topic 842): Common Control Arrangements. This ASU amends certain provisions of Accounting Standards Codification (“ASC”) 842, Leases that apply to arrangements between related parties under common control. The Company adopted this standard as of the beginning of the fiscal year ending June 30, 2025 (“fiscal year 2025”) and the adoption did not have an impact on the Company’s consolidated financial statements.

Recently Issued Accounting Pronouncements Not Yet Adopted

In ~~November~~December 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2023-0709, ~~Segment~~Income ~~Reporting~~Taxes (Topic ~~280~~740): Improvements to ~~Reportable~~Income ~~Segment~~Tax Disclosures. The ASU ~~expands~~enhances ~~public~~annual ~~entities’ segment~~ disclosures byrelated ~~requiring disclosure of significant segment expenses that are regularly provided~~ to the ~~CODM~~effective ~~and~~income ~~included~~tax ~~within~~rate ~~each~~reconciliation ~~reported measure of segment profit or loss, an amount~~ and ~~description~~income oftaxes ~~its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets~~paid. ~~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 ~~2025~~ending June 30, 2026 and subsequent interim periods, with early adoption permitted. The Company is currently evaluating the impact this standard will have on its ~~segment~~income tax disclosures.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The ASU enhances annual disclosures related to the effective income tax rate reconciliation and income taxes paid. The ASU is effective for the Company’s Annual Report on Form 10-K for the fiscal year ending June 30, 2026 and subsequent interim periods, with early adoption permitted. The Company is currently evaluating the impact this standard will have on its income tax disclosures.

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.

11In September 2025, the FASB issued ASU No. 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40) - Targeted Improvements to the Accounting for Internal-Use Software. The ASU modernizes and clarifies the threshold for when an entity is required to start capitalizing software costs and is based on when (i) management has authorized and committed to funding the software project and (ii) it is probable that the project will be completed and the software will be used to perform the function intended. The ASU is effective for the Company in the first quarter of fiscal year 2028. The Company is currently evaluating the impact this standard will have on its consolidated financial statements.

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MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Continued)

Note 3. Revenue Recognition

Contracts with Customers

All revenue recognized in the consolidated statements of operations is considered to be revenue from contracts with customers. For the three months ended ~~March~~September 3130, 2025, the Company did not have any impairment losses on contract assets arising from contracts with customers. For the nine months ended March 31, 2025, the Company recorded impairment losses of $109 on contract assets arising from contracts with customers. For the three and ~~nine months ended March 31, 2025, the Company did not have any impairment losses on receivables arising from contracts with customers. For the three and nine months ended March 31,~~ 2024, the Company did not have any impairment losses on receivables or contract assets arising from contracts with customers.

Disaggregation of Revenue

The following table disaggregates the Company’s revenues by type of goods or services in accordance with the disclosure requirements set forth in Accounting Standards Codification (“ASC”) Subtopic 280-10-50-38 to 40 and the disaggregation of revenue required disclosures in accordance with ASC Subtopic 606-10-50-5 for the three ~~and nine~~ months ended ~~March~~September 3130, 2025 and 2024:

	Three Months Ended				Nine Months Ended
	Three Months Ended September 30,
	March 31,				March 31,
	2025		2024
	2025		2024		2025		2024
Event-related (a)	$	6,007	$	6,085
Event-related (a)	$	176,756	$	177,826	$	322,211	$	306,096
Media rights (b)	5,100		7,353
Media rights (b)	123,544		139,579		257,799		269,345
Sponsorship, signage and suite licenses	4,655		5,188
Sponsorship, signage and suite licenses	113,701		101,402		198,302		176,032
League distributions and other	23,692		34,681
League distributions and other	10,196		11,147		56,951		48,425
Total revenues from contracts with customers	$	39,454	$	53,307
Total revenues from contracts with customers	$	424,197	$	429,954	$	835,263	$	799,898

_________________

(a)Consists of (i) ticket sales and other ticket-related revenues, and (ii) food, beverage and merchandise sales at The Garden.

(b)Consists of (i) local media rights fees from MSG Networks, (ii) revenue from the distribution through league-wide national ~~television~~media contracts, and (iii) other local radio rights fees. Revenues from media rights for the three and nine months ended March 31, 2025 reflect a reduction in expected revenues from local media rights fees for the 2024-25 season as a result of proposed amendments to the Knicks’ and Rangers’ local media rights agreements with MSG Networks contemplated in the Transaction Support Agreement (as defined below).

12On June 27, 2025, the media rights agreements between subsidiaries of MSG Networks, on the one hand, and New York Knicks, LLC (“Knicks LLC”) and New York Rangers, LLC (“Rangers LLC”), on the other hand, were amended, as follows:

•New York Knicks:

◦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; and

◦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; and

◦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 fiscal 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 9 for further details regarding the penny warrant investment and corresponding fair value.

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MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Continued)

Contract Balances

The timing of revenue recognition, billings and cash collections results in billed receivables, contract assets and contract liabilities on the consolidated balance sheets. The following table provides information about contract balances from the Company’s contracts with customers as of ~~March~~September 3130, 2025 and June 30, ~~2024~~2025:

March 31,

June 30,

September 30,

June 30,

2025

~~2024~~2025

Receivables from contracts with customers, net (a)

9142,~~448~~688

1925,~~930~~214

Contract assets, current (b)

284,~~059~~929

14,~~054~~095

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

~~166~~331,~~641~~221

~~149~~164,~~825~~840

_________________

(a)Receivables from contracts with customers, net, which are reported in Accounts receivable, net and Net related party receivables in the accompanying consolidated balance sheets, represent the Company’s unconditional rights to consideration under its contracts with customers. As of ~~March~~September 3130, 2025 and June 30, ~~2024~~2025, the Company’s receivables reported above included $~~30,532~~466 and $0, respectively, related to contracts with customers that are related parties. See Note 1615 for further details on these related party arrangements. Receivables from contracts with customers, net, excludes amounts recorded in Accounts receivable, net, associated with amounts due from the NBA and NHL related to escrow and player compensation recoveries and luxury tax payments. As of March 31, 2025 and June 30, 2024, the Company had receivable balances related to escrow and player compensation recoveries of $14,667 and $0, respectively, recorded in Accounts receivable, net.

(b)Contract assets, current, which are reported as Other current assets in the accompanying consolidated balance sheets, primarily relate to the Company’s rights to consideration for goods or services transferred to the customer, for which the Company does not have an unconditional right to bill as of the reporting date. Contract assets are transferred to accounts receivable once the Company’s right to consideration becomes unconditional. The Company had contract assets related to local media rights of $6,507 and $0 as of March 31, 2025 and June 30, 2024, respectively. See Note 16 for further details on these related party arrangements.

(c)Deferred revenue, including the non-current portion, primarily relates to the Company’s receipt of consideration from customers, inclusive of sales tax collected, or billing customers in advance of the Company’s transfer of goods or services to those customers. Deferred revenue is reduced and the related revenue is recognized once the underlying goods or services are transferred to a customer. The Company’s deferred revenue related to local media rights was $16,533 and $0 as of September 30, 2025 and June 30, 2025, respectively. See Note 15 for further details on these related party arrangements.

(d)Revenue recognized for the ~~nine~~three months ended ~~March~~September 3130, 2025 relating to the deferred revenue balance as of ~~June~~July 301, ~~2024~~2025 was $~~115~~5,~~264~~874.

Transaction Price Allocated to the Remaining Performance Obligations

The following table depicts the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of ~~March~~September 3130, 2025. In developing the estimated revenue, the Company applies the allowable practical expedient and does not disclose information about remaining performance obligations that have original expected durations of one year or less. Additionally, the Company has elected to exclude variable consideration from its disclosure related to the remaining performance obligations under its local media rights arrangements with MSG Networks, league-wide national and international ~~television~~media contracts, and certain other arrangements with variable consideration.

Fiscal year ending June 30, 2025 (remainder)	$	23,903
Fiscal year ending June 30, 2026 (remainder)	$	174,402
Fiscal year ending June 30, 2026	153,698
Fiscal year ending June 30, 2027	126,804
Fiscal year ending June 30, 2027	96,694
Fiscal year ending June 30, 2028	86,519
Fiscal year ending June 30, 2028	58,905
Fiscal year ending June 30, 2029	57,720
Fiscal year ending June 30, 2029	46,842
Fiscal year ending June 30, 2030	32,725
Thereafter	3417,~~870~~977
	$	~~414~~496,~~912~~147

1310

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MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Continued)

Note 4. Computation of Earnings (Loss) ~~Earnings~~ per Common Share

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

	Three Months Ended				Nine Months Ended
	Three Months Ended September 30,
	March 31,				March 31,
	2025		2024
	2025		2024		2025		2024
Net loss allocable to common shares, basic and diluted (numerator):
Net (loss) earnings allocable to common shares, basic and diluted (numerator):
Net loss	$	(8,798)	$	(7,542)
Net (loss) income	$	(14,227)	$	37,877	$	(20,658)	$	33,280
Less: Dividends to other-than-common stockholders (a)	16		8
Less: Dividends to other-than-common stockholders (a)	—		—		19		5
Net loss allocable to common shares, basic and diluted (numerator):	$	(8,814)	$	(7,550)
Net (loss) earnings allocable to common shares, basic and diluted (numerator):	$	(14,227)	$	37,877	$	(20,677)	$	33,275
Weighted-average shares (denominator):
Weighted-average shares for basic EPS	24,~~103~~116		24,~~028~~049		~~24,084~~		~~24,005~~
Dilutive effect of shares issuable under share-based compensation plans	—		72—		—		71
Weighted-average shares for diluted EPS	24,~~103~~116		24,~~100~~049		~~24,084~~		~~24,076~~
Weighted-average shares excluded from diluted EPS	6280		—92		73		—
Basic (loss) earnings per common share attributable to Madison Square Garden Sports Corp.’s stockholders	$	(0.59)	$	1.58	$	(0.86)	$	1.39
Basic loss per common share attributable to Madison Square Garden Sports Corp.’s stockholders	$	(0.37)	$	(0.31)
Diluted (loss) earnings per common share attributable to Madison Square Garden Sports Corp.’s stockholders	$	(0.59)	$	1.57	$	(0.86)	$	1.38
Diluted loss per common share attributable to Madison Square Garden Sports Corp.’s stockholders	$	(0.37)	$	(0.31)

_________________

(a)Dividends to other-than-common stockholders consists of forfeitable rights to dividends declared and payable to holders of the Company’s unvested restricted stock units and performance restricted stock units.

Note 5. Team Personnel Transactions

Direct operating and selling, general and administrative expenses in the accompanying consolidated statements of operations include a net provision or credit for transactions relating to the Company’s sports teams for waiver/contract termination costs, player trades and season-ending injuries (“Team personnel transactions”). Team personnel transactions were a net ~~credit of $653 and a net~~ provision of $2,~~170~~382 ~~for the three months ended March 31, 2025~~ and ~~2024, respectively, and a net provision of~~ $~~7,766~~833 ~~and $2,170~~ for the ~~nine~~three months ended ~~March~~September 3130, 2025 and 2024, respectively.

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MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Continued)

Note 6. Cash, Cash Equivalents and Restricted Cash

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

As of

March 31,2025

June 30,2024

March 31,2024

September 30,2025

June 30,2025

September 30,2024

Captions on the consolidated balance sheets:

Cash and cash equivalents

9648,~~536~~634

89144,~~136~~617

4052,~~033~~252

Restricted cash (a)

8,~~500~~642

58,~~771~~571

45,~~751~~832

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

~~105~~57,~~036~~276

94153,~~907~~188

4458,~~784~~084

_________________

(a)Restricted cash as of ~~March~~September 3130, 2025, June 30, ~~2024~~2025 and ~~March~~September 3130, 2024 included cash deposited in an escrow account (see Note 2 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, ~~2024~~2025 for more information).

~~Note 7. Leases~~11

The Company’s leases primarily consist of the lease of the Company’s principal executive offices under the Sublease Agreement with MSG Entertainment (as defined below), and a lease agreement for an aircraft. In addition, the Company accounts for the rights of use of The Garden pursuant to the Arena License Agreements (as defined below) as leases under the ASC Topic 842, Leases. See Note 7 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2024 for more information regarding the Company’s accounting policies associated with its leases.

During the second quarter of fiscal 2025, the Company amended and restated its prior sublease agreement with MSG Entertainment (the “Prior Sublease Agreement”) to enter into a short term lease for new principal executive offices through December 31, 2024. The Company recorded the short term operating lease costs for this amendment within Selling, general and administrative expenses in the accompanying consolidated statements of operations for the nine months ended March 31, 2025.

In January 2025, the Company entered into a new sublease agreement with MSG Entertainment for new principal executive offices at Two Pennsylvania Plaza in New York with a lease term which ends January 31, 2046 (the “New Sublease Agreement” and together with the Prior Sublease Agreement, the “Sublease Agreement”) and fixed lease payment obligations of $167,444 over the lease term. The Company recorded a lease right-of-use asset and liability in the accompanying consolidated balance sheet as of March 31, 2025 based on the present value of minimum fixed lease payments over the lease term utilizing the Company’s incremental borrowing rate as of the lease commencement date. In addition, the Company entered into a commitment whereby if the MSG Entertainment’s lease for principal executive offices at Two Pennsylvania Plaza in New York were terminated under certain circumstances, the Company would be required to enter into a new lease for executive offices at Two Pennsylvania Plaza directly with the landlord, with a consistent lease term through January 31, 2046.

As of March 31, 2025, the Company’s existing operating leases, which are recorded in the accompanying financial statements, have remaining lease terms ranging from 7 to 30 years. In certain instances, leases include options to renew, with varying option terms. The exercise of lease renewals, if available under the lease options, is generally at the Company’s discretion and is considered in the Company’s assessment of the respective lease term. The Company’s lease agreements do not contain material residual value guarantees or material restrictive covenants.

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MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Continued)

~~The following table summarizes the right-of-use assets and lease liabilities recorded in the accompanying consolidated balance sheets as of March~~Note ~~31, 2025 and June~~7. ~~30, 2024:~~Leases

	Line Item in the Company’s Consolidated Balance Sheet	March 31,2025		June 30,2024
Right-of-use assets:
Operating leases	Right-of-use lease assets	$	763,469	$	694,566
Lease liabilities:
Operating leases, current (a)	Operating lease liabilities, current	$	51,015	$	50,267
Operating leases, noncurrent (a)	Operating lease liabilities, noncurrent	848,534		749,952
Total lease liabilities		$	899,549	$	800,219

The Company’s leases primarily consist of the lease of the Company’s principal executive offices at Two Pennsylvania Plaza in New York under the Sublease Agreement with MSG Entertainment (as defined below) and a lease agreement for an aircraft. In addition, the Company accounts for the rights of use of The Garden pursuant to the Arena License Agreements (as defined below) as leases under the ASC Topic 842, Leases. See Note 7 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2025 for more information regarding the Company’s accounting policies associated with its leases.

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

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

As of September 30, 2025, the Company’s existing operating leases, which are recorded in the accompanying financial statements, have remaining lease terms ranging from 6 to 30 years. In certain instances, leases include options to renew, with varying option terms. The exercise of lease renewals, if available under the lease options, is generally at the Company’s discretion and is considered in the Company’s assessment of the respective lease term. The Company’s lease agreements do not contain material residual value guarantees or material restrictive covenants.

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


	Line Item in the Company’s Consolidated Balance Sheet	September 30, 2025		June 30, 2025
Right-of-use assets:
Operating leases	Right-of-use lease assets	$	758,422	$	760,456
Lease liabilities:
Operating leases, current (a)	Operating lease liabilities, current	$	54,233	$	52,618
Operating leases, noncurrent (a)	Operating lease liabilities, noncurrent	829,365		841,050
Total lease liabilities		$	883,598	$	893,668

_________________

(a)As of ~~March~~September 3130, 2025, Operating lease liabilities, current and Operating lease liabilities, noncurrent included balances of $4447,~~437~~655 and $~~817~~800,~~504~~692, respectively, that are payable to MSG Entertainment. As of June 30, ~~2024~~2025, Operating lease liabilities, current and Operating lease liabilities, noncurrent included balances of $4346,~~689~~040 and $~~715~~811,~~507~~190, respectively, that are payable to MSG Entertainment.

The following table summarizes the activity recorded within the accompanying consolidated statements of operations for the three ~~and nine~~ months ended ~~March~~September 3130, 2025 and 2024:

	Line Item in the Company’s Consolidated Statement of Operations	Three Months Ended March 31,				Nine Months Ended March 31,
	Line Item in the Company’s ConsolidatedStatement of Operations	Three Months Ended September 30,
		2025		2024		~~2025~~		~~2024~~
Operating lease costs	Direct operating expenses	$	331,~~380~~311	$	351,~~370~~311	$	~~61,472~~	$	~~61,043~~
Operating lease costs	Selling, general and administrative expenses	3,693		2,~~320~~471		~~8,126~~		~~6,960~~
Short term lease costs	Selling, general and administrative expenses	—		—		3,971		—
Total lease cost		$	5,004	$	3,782
Total lease cost		$	37,073	$	37,690	$	73,569	$	68,003

~~Supplemental Information~~12

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

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

The weighted average remaining lease term for operating leases recorded in the accompanying consolidated balance sheet as of March 31, 2025 was 28.4 years. The weighted average discount rate was 7.05% as of March 31, 2025 and represented the Company’s estimated incremental borrowing rate, assuming a secured borrowing, based on the remaining lease term at the period in which the lease term expectation commenced or was modified.

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

Fiscal year ending June 30, 2025 (remainder)	$	12,708
Fiscal year ending June 30, 2026	54,369
Fiscal year ending June 30, 2027	59,716
Fiscal year ending June 30, 2028	62,388
Fiscal year ending June 30, 2029	63,874
Thereafter	2,129,295
Total lease payments	2,382,350
Less imputed interest	(1,482,801)
Total lease liabilities	$	899,549

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MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Continued)

Supplemental Information

For the three months ended September 30, 2025 and 2024, cash paid for amounts included in the measurement of lease liabilities was $13,039 and $13,493, respectively.

For the three months ended September 30, 2025 and 2024, there were no non-cash additions to right-of-use assets and operating lease liabilities.

The weighted average remaining lease term for operating leases recorded in the accompanying consolidated balance sheet as of September 30, 2025 was 27.9 years. The weighted average discount rate was 7.05% as of September 30, 2025.

Maturities of operating lease liabilities as of September 30, 2025 were as follows:


Fiscal year ending June 30, 2026 (remainder)	$	41,331
Fiscal year ending June 30, 2027	59,716
Fiscal year ending June 30, 2028	62,388
Fiscal year ending June 30, 2029	63,874
Fiscal year ending June 30, 2030	65,361
Thereafter	2,063,935
Total lease payments	2,356,605
Less imputed interest	(1,473,007)
Total lease liabilities	$	883,598

Note 8. Goodwill and Intangible Assets

During the first quarter of fiscal year ~~2025~~2026, the Company performed its annual impairment test of goodwill and determined that there were no impairments identified as of the impairment test date. The carrying amount of goodwill as of ~~March~~September 3130, 2025 and June 30, ~~2024~~2025 was $226,523.

The Company’s indefinite-lived intangible assets as of ~~March~~September 3130, 2025 and June 30, ~~2024~~2025 were as follows:



Sports franchises	$	102,564
Photographic related rights	1,080
	$	103,644

During the first quarter of fiscal year ~~2025~~2026, the Company performed its annual impairment test of identifiable indefinite-lived intangible assets and determined that there were no impairments identified as of the impairment test date.

~~Note 9. Investments~~13

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

	March 31,2025		June 30,2024
Equity method investments:
NRG	$	6,994	$	7,536
Other equity method investments	4,513		5,038
Equity investments with readily determinable fair values:
Xtract One Technologies Inc. (“Xtract One”) common stock	10,277		17,380
Other equity investments with readily determinable fair values held in trust under the Company’s Executive Deferred Compensation Plan	21,773		18,837
Equity investments without readily determinable fair values (a)	7,964		6,757
Derivative instruments:
Xtract One warrants	1,904		6,995
Total investments	$	53,425	$	62,543

_________________

(a)During the three and nine months ended March 31, 2025, the Company recorded impairment charges and reductions in carrying value resulting from observable price changes of $0 and $894, respectively, related to its equity securities without readily determinable fair values in Miscellaneous expense, net within the accompanying consolidated statements of operations. During the three and nine months ended March 31, 2024, the Company did not record any impairment charges or changes in carrying value of its equity securities without readily determinable fair values in the accompanying consolidated statements of operations.

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MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Continued)

Note 9. Investments

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


	September 30, 2025		June 30, 2025
Equity method investments:
Hard Carry Gaming, Inc. (“NRG”)	$	6,333	$	6,607
MSG Networks	—		—
Other equity method investments	4,332		4,421
Equity investments with readily determinable fair values:
Xtract One Technologies Inc. (“Xtract One”) common stock	18,116		9,290
Other equity investments with readily determinable fair values held in trust under the Company’s Executive Deferred Compensation Plan	26,680		23,536
Equity investments without readily determinable fair values (a)	10,739		9,262
Derivative instruments:
Xtract One warrants	7,315		1,604
Total investments	$	73,515	$	54,720

_________________

(a)During the three months ended September 30, 2025 and 2024, the Company did not record any impairment charges or changes in carrying value of its equity securities without readily determinable fair values in the accompanying consolidated statements of operations.

Equity Method Investments

NRG

The Company holds preferred shares of the capital stock of ~~Hard Carry Gaming, Inc. (“~~NRG”), a professional gaming and entertainment company. During the three ~~and nine~~ months ended ~~March~~September 3130, 2025, ~~the Company recognized its net share of losses of $26~~ and ~~$542, respectively, in Miscellaneous expense, net within the Company’s consolidated statements of operations. During the three and nine months ended March 31,~~ 2024, the Company recognized its net share of ~~income~~losses of $~~140~~274 and ~~losses of~~ $~~718~~230, respectively, in Miscellaneous income (expense), net within the Company’s consolidated statements of operations. As of ~~March~~September 3130, 2025 and June 30, ~~2024~~2025, the Company’s ownership in NRG was approximately 25%.

MSG Networks

In June 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. During the three months ended September 30, 2025, the Company recognized no income or loss related to the MSG Networks equity method investment.

Equity Investments with Readily Determinable Fair Values

The Company holds investments in equity instruments with readily determinable fair value:

•Xtract One, a technology-driven threat detection and security solution company that is listed on the Toronto Stock Exchange under the symbol “XTRA”. The Company holds common stock of Xtract One and holds warrants entitling the Company to acquire additional shares of common stock of Xtract One which are considered derivative instruments. Refer to Note 10 for further details regarding the Company’s warrants, including the inputs used in determining the fair value of the warrants.

~~•Other equity investments held in trust under the Company’s Executive Deferred Compensation Plan. Refer to Note 13 for further details regarding the plan.~~14

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MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Continued)

•Other equity investments held in trust under the Company’s Executive Deferred Compensation Plan (the “Deferred Compensation Plan”). See Note 14 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2025 for more information regarding Deferred Compensation Plan. The Company recorded compensation expense of $963 and $965 for the three months ended September 30, 2025 and 2024, respectively, within Selling, general and administrative expenses to reflect the remeasurement of the Deferred Compensation Plan liability. In addition, the Company recorded gains of $963 and $965 for the three months ended September 30, 2025 and 2024, respectively, within Miscellaneous income (expense), net to reflect the remeasurement of the fair value of assets under the Deferred Compensation Plan.

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.

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

March 31, 2025

June 30, 2024

September 30, 2025

June 30, 2025

Cost Basis

Carrying Value/Fair Value

Cost Basis

Carrying Value/Fair Value

Xtract One common stock

7,721

1018,~~277~~116

7,721

179,~~380~~290

Other equity investments with readily determinable fair values

1821,~~723~~444

2126,~~773~~680

1619,~~510~~263

1823,~~837~~536

2629,~~444~~165

3244,~~050~~796

2426,~~231~~984

3632,~~217~~826

The following table summarizes ~~the~~amounts ~~realized~~recognized ~~and~~related ~~unrealized~~to ~~gains~~the ~~(losses)~~Deferred onCompensation ~~equity~~Plan ~~investments~~in ~~with readily determinable fair values, recorded within Miscellaneous expense, net within~~ the ~~Company’s~~ consolidated ~~statements~~balance ~~of operations, for the three and nine months ended March 31, 2025 and 2024~~sheets:

	Three Months Ended March 31,				Nine Months Ended March 31,
	September 30,2025		June 30,2025
	2025		2024		2025		2024
Non-current assets (included in investments)	$	26,680	$	23,536
Unrealized loss - Xtract One common stock	$	(3,387)	$	(853)	$	(7,103)	$	(5,645)
Current liabilities (included in accrued employee related costs)	(1,404)		(1,333)
Unrealized (loss) gain - other equity investments with readily determinable fair values	(319)		809		723		1,501
Non-current liabilities (included in other employee related costs)	(25,276)		(22,203)
Realized gain - other equity investments with readily determinable fair values	184		12		250		55
	$	(3,522)	$	(32)	$	(6,130)	$	(4,089)

18The following table summarizes the realized and unrealized gains (losses) on equity investments with readily determinable fair values, recorded within Miscellaneous income (expense), net within the Company’s consolidated statements of operations, for the three months ended September 30, 2025 and 2024:


	Three Months Ended September 30,
	2025		2024
Unrealized gain (loss) - Xtract One common stock	$	8,826	$	(533)
Unrealized gain - other equity investments with readily determinable fair values	963		965

	$	9,789	$	432

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MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Continued)

Note 10. Fair Value Measurements

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

Fair Value Hierarchy

~~March~~September 3130,2025

June 30,~~2024~~2025

Assets:

Money market accounts

5039,~~026~~625

3795,~~594~~367

Time deposits

448,~~741~~012

4948,~~510~~263

Equity investments

3244,~~050~~796

3632,~~217~~826

Warrants

III

17,~~904~~315

61,~~995~~604

Total assets measured at fair value

~~128~~99,~~721~~748

~~130~~178,~~316~~060

Level I Inputs

Assets that are classified within Level I of the fair value hierarchy are valued using observable inputs that reflect quoted prices for identical assets in active markets. The carrying amount of the Company’s money market accounts and time deposits approximates fair value due to their short-term maturities. Refer to Note 9 for further details regarding equity investments.

Level III Inputs

The Company’s Level III assets consist of warrants entitling the Company to acquire additional common stock of Xtract One. The Company’s warrants are included within Investments in the accompanying consolidated balance sheets. Changes in the fair value of derivative instruments are measured at each reporting date and are recorded within Miscellaneous income (expense), net in the accompanying consolidated statements of operations. The fair value of the Company’s warrants in Xtract One were determined using the Black-Scholes option pricing model. The following are key assumptions used to calculate the fair value of the warrants as of ~~March~~September 3130, 2025 and June 30, ~~2024~~2025:

	March 31,2025		June 30,2024
	September 30,2025		June 30,2025
Expected term	1.4318 years		1.8030 years
Expected volatility	6178.4149	%	6470.1578	%
Risk-free interest rate	3.9767	%	43.7385	%

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

	Three Months Ended March 31,				Nine Months Ended March 31,
	Three Months Ended September 30,
	2025		2024		~~2025~~		~~2024~~
Balance at beginning of period	$	31,~~838~~604	$	86,~~802~~995	$	~~6,995~~	$	~~13,098~~
Unrealized losses on warrants	(1,934)		(1,529)		(5,091)		(5,825)
Unrealized gains (losses) on warrants	5,711		(1,044)
Balance at end of period	$	17,~~904~~315	$	75,~~273~~951	$	~~1,904~~	$	~~7,273~~

1916

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MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Continued)

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

	March 31, 2025				June 30, 2024
	September 30, 2025				June 30, 2025
	CarryingValue		FairValue		CarryingValue		FairValue
Liabilities
Debt, current (a)	$	24,000	$	24,000	$	3024,000	$	3024,000
Long-term debt (b)	$	267,000	$	267,000	$	~~275~~267,000	$	~~275~~267,000

_________________

(a)The Company’s debt, current is classified within Level II of the fair value hierarchy as it is valued using quoted indices of similar securities for which the inputs are readily observable. The fair value of the Company’s debt, current is the same as its carrying amount based on valuation of similar securities. See Note 12 for further details.

(b)The Company’s long-term debt is classified within Level II of the fair value hierarchy as it is valued using quoted indices of similar securities for which the inputs are readily observable. The fair value of the Company’s long-term debt is the same as its carrying amount as the debt bears interest at a variable rate indexed to current market conditions. See Note 12 for further details.

Note 11. Commitments and Contingencies

Commitments

As more fully described in Note 12 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, ~~2024~~2025, the Company’s commitments consist primarily of the Company’s obligations under employment agreements that the Company has with its professional sports teams’ personnel that are generally guaranteed regardless of employee injury or termination. In addition, see Note 7 for more information on the contractual obligations related to future lease payments. The Company did not have any material changes in its contractual obligations, including off-balance sheet commitments, since the end of fiscal year ~~2024~~2025, other than ~~the New Sublease Agreement described in Note 7 and~~ activities in the ordinary course of business.

Legal Matters

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

Note 12. Debt

Knicks Revolving Credit Facility

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

On November 6, 2020, the Company amended and restated the 2016 Knicks Credit Agreement in its entirety (the “2020 Knicks Credit Agreement”). On December 14, 2021, Knicks LLC entered into Amendment No. 2 to the 2020 Knicks Credit Agreement, which amended and restated the 2020 Knicks Credit Agreement (as amended and restated, the “Knicks Credit Agreement”).

The Knicks Credit Agreement provides for a senior secured revolving credit facility of up to $275,000 (the “Knicks Revolving Credit Facility”) to fund working capital needs and for general corporate purposes. The maturity date of the Knicks Credit Agreement is December 14, 2026. 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 or insolvency event (as ~~set~~defined ~~forth~~ in the Knicks Credit Agreement) with respect to the obligor ~~(including MSG Networks)~~ under any local media rights agreement. Borrowings under the Knicks Credit Agreement bear interest at a floating rate, which at the option of Knicks LLC may be either (i) a base rate plus a margin ranging from 0.250% to 0.500% per annum or (ii) term Secured Overnight Financing Rate (“SOFR”) plus a credit spread adjustment of 0.100% per annum plus a margin ranging from 1.250% to 1.500% per annum depending on the credit rating applicable to the NBA’s league-wide credit facility. Knicks LLC is required to pay a commitment fee ranging from 0.250% to 0.300% per annum in respect of the average daily unused commitments under the Knicks Revolving Credit Facility. The outstanding balance under

2017

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MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Continued)

~~0.300% per annum in respect of~~ the ~~average daily unused commitments under the~~ Knicks Revolving Credit Facility. During the nine months ended March 31, 2025, the Company made principal repayments of $8,000 under the Knicks Revolving Credit Facility. The outstanding balance under the Knicks Revolving Credit Facility was $267,000 as of ~~March~~September 3130, 2025, which was recorded as Long-term debt in the accompanying consolidated balance sheet. The interest rate on the Knicks Revolving Credit Facility as of ~~March~~September 3130, 2025 was 5.6751%. During the ~~nine~~three months ended ~~March~~September 3130, 2025 and 2024, the Company made interest payments ~~of $12,897~~ in respect of the Knicks Revolving Credit Facility of $3,883 and $4,793, respectively.

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

Subject to customary notice and minimum amount conditions, Knicks LLC may voluntarily prepay outstanding loans under the Knicks Revolving Credit Facility at any time, in whole or in part, without premium or penalty (except for customary breakage costs with respect to SOFR-based loans). Knicks LLC is required to make mandatory prepayments in certain circumstances, including without limitation if the maximum available amount under the Knicks Revolving Credit Facility is greater than 350% of qualified revenues.

In addition to the financial covenant described above, the Knicks Credit Agreement and related security agreement contain certain customary representations and warranties, affirmative covenants and events of default. The Knicks Revolving Credit Facility contains certain restrictions on the ability of Knicks LLC to take certain actions as provided in (and subject to various exceptions and baskets set forth in) the Knicks Revolving Credit Facility, including the following: (i) incurring additional indebtedness and contingent liabilities; (ii) creating liens on certain assets; (iii) making restricted payments during the continuance of an event of default under the Knicks Revolving Credit Facility; (iv) engaging in sale and leaseback transactions; (v) merging or consolidating; and (vi) taking certain actions that would invalidate the secured lenders’ liens on any Knicks LLC’s collateral.

The Knicks Revolving Credit Facility requires Knicks LLC to comply with a debt service ratio of at least 1.5:1.0 over a trailing four quarter period. As of ~~March~~September 3130, 2025, Knicks LLC was in compliance with this financial covenant.

Rangers Revolving Credit Facility

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

On November 6, 2020, the Company amended and restated the 2017 Rangers Credit Agreement in its entirety (the “2020 Rangers Credit Agreement”). On December 14, 2021, Rangers LLC entered into Amendment No. 3 to the 2020 Rangers Credit Agreement, which amended and restated the 2020 Rangers Credit Agreement (as amended and restated, the “Rangers Credit Agreement”).

The Rangers Credit Agreement provides for a senior secured revolving credit facility of up to $250,000 (the “Rangers Revolving Credit Facility”) to fund working capital needs and for general corporate purposes. The maturity date of the Rangers Credit Agreement is December 14, 2026. Amounts borrowed may be distributed to the Company except during an event of default.

All borrowings under the Rangers Revolving Credit Facility are subject to the satisfaction of certain customary conditions, including a representation as to the absence of a bankruptcy or insolvency event (as ~~set~~defined ~~forth~~ in the Rangers Credit Agreement) with respect to the obligor ~~(including MSG Networks)~~ under any local media rights agreement. Borrowings under the Rangers Revolving Credit Facility bear interest at a floating rate, which at the option of Rangers LLC may be either (i) a base rate plus a margin ranging from 0.500% to 1.000% per annum or (ii) term SOFR plus a credit spread adjustment of 0.100% per annum plus a margin ranging from 1.500% to 2.000% per annum depending on the credit rating applicable to the NHL’s league-wide credit facility. Rangers LLC is required to pay a commitment fee ranging from 0.375% to 0.625% per annum in respect of the average daily unused commitments under the Rangers Revolving Credit Facility. There were no borrowings ~~outstanding~~ under the Rangers Revolving Credit Facility as of ~~March~~September 3130, 2025. ~~and~~The ~~the~~ Company did not make any interest payments ~~during the nine months ended March 31, 2025~~ in respect of the Rangers Revolving Credit Facility during the three months ended September 30, 2025 and 2024.

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

2118

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MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Continued)

Subject to customary notice and minimum amount conditions, Rangers LLC may voluntarily prepay outstanding loans under the Rangers Revolving Credit Facility at any time, in whole or in part, without premium or penalty (except for customary breakage costs with respect to SOFR-based loans). Rangers LLC is required to make mandatory prepayments in certain circumstances, including without limitation if qualified revenues are less than 17% of the maximum available amount under the Rangers Credit Agreement.

In addition to the financial covenant described above, the Rangers Credit Agreement and related security agreement contain certain customary representations and warranties, affirmative covenants and events of default. The Rangers Revolving Credit Facility contains certain restrictions on the ability of Rangers LLC to take certain actions as provided in (and subject to various exceptions and baskets set forth in) the Rangers Revolving Credit Facility, including the following: (i) incurring additional indebtedness and contingent liabilities; (ii) creating liens on certain assets; (iii) making restricted payments during the continuance of an event of default under the Rangers Revolving Credit Facility; (iv) engaging in sale and leaseback transactions; (v) merging or consolidating; and (vi) taking certain actions that would invalidate the secured lenders’ liens on any of Rangers LLC’s assets securing the obligations under the Rangers Revolving Credit Facility.

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

The Rangers Revolving Credit Facility requires Rangers LLC to comply with a debt service ratio of at least 1.5:1.0 over a trailing four quarter period. As of ~~March~~September 3130, 2025, Rangers LLC was in compliance with this financial covenant.

Rangers NHL Advance Agreement

On March 19, 2021, Rangers LLC, Rangers Holdings, LLC and MSG NYR Holdings LLC entered into an advance agreement with the NHL (the “Rangers NHL Advance Agreement”) pursuant to which the NHL advanced $30,000 to Rangers LLC. The advance is required to be utilized solely and exclusively to pay for Rangers LLC operating expenses.

All obligations under the Rangers NHL Advance Agreement are senior to and shall have priority over all secured and other indebtedness of Rangers LLC, Rangers Holdings, LLC and MSG NYR Holdings LLC. All borrowings under the Rangers NHL Advance Agreement were made on a non-revolving basis and bear interest at 3.00% per annum, ending on the date any such advances are fully repaid. Advances received under the Rangers NHL Advance Agreement are payable upon demand by the NHL. ~~The~~It is expected that the remaining advanced amount ~~may~~will be set off against funds that would otherwise be paid, distributed or transferred by the NHL to Rangers LLC. ~~During the nine months ended March 31, 2025, the Company made principal repayments of $6,000 under the Rangers NHL Advance Agreement.~~ The outstanding balance under the Rangers NHL Advance Agreement was $24,000 as of ~~March~~September 3130, 2025 and was recorded as Debt in the accompanying consolidated balance sheet. During the ~~nine~~three months ended ~~March~~September 3130, 2025 and 2024, the Company made interest payments ~~of $688~~ in respect of the Rangers NHL Advance Agreement of $180 and $225, respectively.

Deferred Financing Costs

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

March 31,2025

June 30,2024

September 30,2025

June 30,2025

Other current assets

1,145

Other assets

~~806~~234

~~1,665~~520

22Note 13. Share-based Compensation

See Note 15 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2025 for more information regarding the Company’s 2015 Employee Stock Plan (the “Employee Stock Plan”) and its 2015 Stock Plan for Non-Employee Directors.

Share-based compensation expense is recognized in the consolidated statements of operations as a component of Selling, general and administrative expenses. Share-based compensation expense was $4,844 and $4,268 for the three months ended September 30, 2025 and 2024, respectively. There were no costs related to share-based compensation that were capitalized for the three months ended September 30, 2025 and 2024.

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MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Continued)

Note 13. Benefit Plans

Defined Benefit Pension Plans

The Company sponsors the MSG Sports, LLC Excess Cash Balance Plan (the “Excess Cash Balance Plan”), an unfunded non-contributory, non-qualified excess cash balance plan and the MSG Sports, LLC Excess Retirement Plan, an unfunded non-contributory, non-qualified defined benefit pension plan for the benefit of certain employees (collectively referred to as the “Pension Plans”). All benefits in the Company’s Pension Plans are frozen and participants are not able to earn benefits for future service under these plans, and no employee of the Company who was not already a participant as of the date the respective plan was frozen may become a participant in the Pension Plans. Existing account balances under the Excess Cash Balance Plan are credited with monthly interest in accordance with the terms of the plan.

The following table presents components of net periodic benefit cost for the Pension Plans included in the accompanying consolidated statements of operations for the three and nine months ended March 31, 2025 and 2024. Components of net periodic benefit cost are reported in Miscellaneous expense, net:

	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2025		2024		2025		2024
Interest cost	$	63	$	68	$	189	$	204
Recognized actuarial loss	21		10		61		28
Net periodic benefit cost	$	84	$	78	$	250	$	232

Defined Contribution Plans

MSG Sports employees participate in The Madison Square Garden 401(k) Savings Plan (the “401(k) Plan”), which is a multiple employer plan sponsored by MSG Entertainment Holdings, LLC, a wholly owned subsidiary of MSG Entertainment. In addition, the Company sponsors the MSG Sports LLC, Excess Savings Plan (the “Excess Savings Plan”), which provides non-qualified retirement benefits to eligible MSG Sports employees.

Expense related to the 401(k) Plan and Excess Savings Plan for the three and nine months ended March 31, 2025 was $1,500 and $4,027, respectively, and $1,261 and $3,869 for the three and nine months ended March 31, 2024, respectively.

Executive Deferred Compensation Plan

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

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

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

	March 31,2025		June 30,2024
Non-current assets (included in investments)	$	21,773	$	18,837
Current liabilities (included in accrued employee related costs)	(1,226)		(1,233)
Non-current liabilities (included in other employee related costs)	(20,547)		(17,604)

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MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Continued)

Note 14. Share-based Compensation

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

Share-based compensation expense is recognized in the consolidated statements of operations as a component of Selling, general and administrative expenses. Share-based compensation expense was $3,900 and $14,159 for the three and nine months ended March 31, 2025, respectively, and $7,350 and $18,069 for the three and nine months ended March 31, 2024, respectively. There were no costs related to share-based compensation that were capitalized for the three and nine months ended March 31, 2025 and 2024.

Restricted Stock Units Award Activity

The following table summarizes activity related to the Company’s restricted stock units and performance restricted stock units, collectively referred to as “RSUs,” held by current and former employees of the Company and non-employee directors, for the ~~nine~~three months ended ~~March~~September 3130, 2025:

	Number of		Weighted-AverageFair Value Per Share atDate of Grant (a)
	NonperformanceBased VestingRSUs	PerformanceBased VestingRSUs
Unvested award balance, June 30, 2024	105	153	$	170.61
Unvested award balance, June 30, 2025	95	139	$	184.56
Granted	5446	4648	$	~~207~~195.9427
Vested	(6446)	(5958)	$	~~174~~171.9811
Forfeited / Cancelled	(21)	(31)	$	~~173~~193.5153
Unvested award balance, March 31, 2025	93	137	$	184.48
Unvested award balance, September 30, 2025	94	128	$	195.32

_____________________

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

The fair value of RSUs that vested during the ~~nine~~three months ended ~~March~~September 3130, 2025 was $2521,~~713~~962. Upon delivery, RSUs granted under the Employee Stock Plan were net share-settled to cover the required statutory tax withholding obligations. To fulfill the Company’s current and former employees’ required statutory tax withholding obligations for the applicable income and other employment taxes, 5542 of these RSUs, with an aggregate value of $108,~~662~~770, inclusive of $2436 related to the Company’s former employees (who vested in the Company’s RSUs), were retained by the Company and the taxes paid are reflected as a financing activity in the accompanying consolidated statement of cash flows for the ~~nine~~three months ended ~~March~~September 3130, 2025.

The fair value of RSUs that vested during the ~~nine~~three months ended ~~March~~September 3130, 2024 was $21,~~192~~227. The weighted-average fair value per share at grant date of RSUs granted during the ~~nine~~three months ended ~~March~~September 3130, 2024 was $~~177~~205.6231.

Stock Options Award Activity

The following table summarizes activity related to the Company’s stock options for the ~~nine~~three months ended ~~March~~September 3130, 2025:

	Number ofTime Vesting Options	Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contractual Term (In Years)	Aggregate Intrinsic Value
Balance as of June 30, 2024	94	$	138.78
Balance as of June 30, 2025	94	$	138.78
Granted	—	$	—
Cancelled	—	$	—
Balance as of March 31, 2025	94	$	138.78	2.71	$	5,249
Balance as of September 30, 2025	94	$	138.78	2.21	$	8,277
Exercisable as of March 31, 2025	94	$	138.78	2.71	$	5,249
Exercisable as of September 30, 2025	94	$	138.78	2.21	$	8,277

24Note 14. Stock Repurchase Program

Effective as of October 1, 2015, the Company’s board of directors authorized the repurchase of up to $525,000 of the Company’s Class A Common Stock, par value $0.01 per share (“Class A Common Stock”). Under the authorization, shares of Class A Common Stock may be purchased from time to time in open market or private transactions, block trades or such other manner as the Company may determine, in accordance with applicable insider trading and other securities laws and regulations. The timing and amount of purchases will depend on market conditions and other factors.

During the three months ended September 30, 2025 and 2024, the Company did not repurchase any shares under its share repurchase program. As of September 30, 2025, the Company had $184,639 of availability remaining under its stock repurchase authorization.

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MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Continued)

Note 15. ~~Stock~~Related ~~Repurchase~~Party ~~Program~~Transactions

~~Effective~~As as of ~~October~~September 30, 12025, ~~2015~~certain members of the Dolan family, including certain trusts for the ~~Company’s~~benefit ~~board~~of members of ~~directors~~the ~~authorized~~Dolan family, for purposes of Section 13(d) of the ~~repurchase~~Securities Exchange Act of up1934, toas ~~$525~~amended,~~000~~ collectively beneficially owned 100% of the Company’s outstanding Class AB Common Stock, par value $0.01 per share (“Class AB Common Stock”). ~~Under~~and ~~the~~owned ~~authorization,~~approximately ~~shares~~3.2% of ~~Class~~the Company’s outstanding Class A Common Stock. ~~may~~Such beshares ~~purchased~~of ~~from~~the ~~time~~Company’s toClass A ~~time~~Common inStock ~~open~~and ~~market~~Class orB ~~private~~Common ~~transactions~~Stock, ~~block~~collectively, ~~trades~~represented orapproximately ~~such~~70.8% ~~other~~of ~~manner as~~ the ~~Company~~aggregate ~~may~~voting ~~determine,~~power inof ~~accordance~~the ~~with~~Company’s ~~applicable~~outstanding ~~insider~~common ~~trading~~stock. ~~and~~Members ~~other~~of ~~securities~~the ~~laws~~Dolan ~~and~~family ~~regulations.~~are ~~The~~also ~~timing~~the ~~and~~controlling ~~amount~~stockholders of ~~purchases~~Sphere ~~will~~Entertainment, ~~depend~~MSG onEntertainment ~~market~~and ~~conditions~~AMC ~~and~~Networks ~~other~~Inc. ~~factors~~(“AMC Networks”).

~~During~~The ~~the~~Company ~~nine~~was ~~months~~party ~~ended~~to ~~March 31, 2025 and 2024,~~ the ~~Company~~following ~~did~~agreements ~~not~~and/or ~~repurchase~~arrangements ~~any~~with ~~shares~~MSG ~~under~~Entertainment ~~its~~as ~~share repurchase program. As~~ of ~~March~~September 3130, 2025~~, the Company had $184,639 of availability remaining under its stock repurchase authorization.~~:

~~Note~~•Arena ~~16.~~license ~~Related~~agreements, ~~Party~~entered ~~Transactions~~into in April 2020 (the “Arena License Agreements”), pursuant to which MSG Entertainment (i) provides the right to use The Garden for games of the Knicks and the Rangers for a 35-year term in exchange for arena license fees, (ii) shares revenues collected for suite and club licenses, (iii) operates and manages the sale of the sports teams’ merchandise at The Garden for a commission, (iv) operates and manages the sales of food and beverage concessions in exchange for 50% of net profits from sales and catering services during Knicks and Rangers home games, (v) shares revenues collected for the sale of venue indoor signage space and sponsorship rights at The Garden that are not specific to our teams, (vi) provides day of game services, and (vii) provides other general services within The Garden;

As•Sponsorship ofsales ~~March 31,~~and ~~2025,~~service ~~certain~~representation ~~members of the Dolan family~~agreements, ~~including~~entered ~~certain~~into ~~trusts~~in ~~for~~April ~~members~~2020 ~~of the Dolan family~~ (~~collectively,~~ the “~~Dolan~~Sponsorship ~~Family~~Sales ~~Group”),~~and ~~for~~Service ~~purposes~~Representation ~~of Section 13(d~~Agreements”) ~~of the Securities Exchange Act of 1934~~, aspursuant ~~amended,~~to ~~collectively~~which ~~beneficially~~MSG ~~owned~~Entertainment ~~100%~~has of the ~~Company’s~~exclusive ~~outstanding~~right ~~Class B Common Stock, par value $0.01 per share (“Class B Common Stock”)~~ and ~~approximately~~obligation ~~2.6%~~to ofsell the Company’s ~~outstanding~~sponsorships ~~Class A~~for ~~Common~~an ~~Stock.~~initial ~~Such~~stated ~~shares~~term of ~~the~~10 ~~Company’s~~years ~~Class A~~for ~~Common~~a ~~Stock~~commission. ~~and~~In ~~Class~~addition, Bunder ~~Common~~these ~~Stock~~agreements, ~~collectively, represented approximately 70.7% of~~ the ~~aggregate voting power of the~~ Company’s ~~outstanding~~is ~~common~~charged ~~stock~~by asMSG ofEntertainment ~~March 31,~~for ~~2025.~~sales ~~Members~~and ofservice ~~the~~staff ~~Dolan~~and ~~family~~overhead ~~are~~associated ~~also~~with the ~~controlling~~sales ~~stockholders~~ of ~~Sphere~~sponsorship ~~Entertainment, MSG Entertainment and AMC Networks Inc. (“AMC Networks”).~~assets;

~~The~~•Team ~~Company~~sponsorship ~~was~~allocation ~~party~~agreement with MSG Entertainment, pursuant to which the ~~following~~teams ~~agreements~~receive an allocation of certain sponsorship and~~/or~~ ~~arrangements~~signage revenues associated with sponsorship agreements that include the assets of the Company, MSG Entertainment, asand ofSphere ~~March 31~~Entertainment, ~~2025:~~based on the percentage of revenue each company earns relative to the total contract value;

•~~Arena~~Services ~~license~~agreement ~~agreements, entered into in April 2020~~ (the “~~Arena~~Services ~~License Agreements~~Agreement”), pursuant to which ~~MSG~~the ~~Entertainment~~Company (i) ~~provides~~receives ~~the~~certain ~~right~~services tofrom ~~use~~MSG ~~The~~Entertainment, ~~Garden~~such ~~for~~as ~~games~~information oftechnology, ~~the~~executive ~~Knicks~~support, ~~and~~accounts ~~the~~payable, ~~Rangers for a 35-year term in exchange for arena license fees~~payroll, ~~(ii)~~human ~~shares revenues collected for suite and club licenses~~resources, ~~(iii) operates~~ and ~~manages~~other ~~the~~corporate ~~sale of the sports teams’ merchandise at The Garden for a commission~~functions, ~~(iv) operates~~ and ~~manages~~communications, ~~the~~marketing ~~sales of food~~ and ~~beverage~~facilities-related ~~concessions~~services, in exchange for ~~50%~~service offees ~~net profits from sales~~ and ~~catering services during Knicks and Rangers home games,~~ (vii) ~~shares~~provides ~~revenues~~certain ~~collected~~services ~~for the sale of venue indoor signage space and sponsorship rights at The Garden that are not specific~~ to ~~our~~MSG ~~sports teams~~Entertainment, ~~(vi)~~such ~~provides~~as ~~day~~certain ofcommunications ~~game~~and legal services, ~~and~~in ~~(vii)~~exchange ~~provides~~for ~~other~~service ~~general services within The Garden~~fees;

•~~Sponsorship~~Arrangements ~~sales~~pursuant ~~and~~to ~~service~~which ~~representation agreements (~~the ~~“Sponsorship~~Company ~~Sales~~provides ~~and Service Representation Agreements”) pursuant to which~~ MSG Entertainment ~~has~~certain ~~the~~services ~~exclusive~~associated ~~right~~with ~~and obligation to sell~~ the ~~Company’s~~management ~~sponsorships for an initial stated term~~ of ~~10 years for a commission. In addition~~ticketing, ~~under~~premium ~~these~~hospitality ~~agreements~~sales, ~~the~~sponsorship ~~Company is charged by MSG Entertainment for~~ sales and ~~service~~other ~~staff~~business ~~and~~operations ~~overhead associated with the sales of sponsorship assets~~services;

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

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

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

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

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

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

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

The Company was also party to the following agreements and/or arrangements with Sphere Entertainment (including through its subsidiary MSG Networks) as of September 30, 2025:

•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;

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MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Continued)

•~~Other~~An ~~agreements~~agreement with MSG ~~Entertainment~~Networks ~~entered~~pursuant ~~into~~to inwhich ~~connection~~the ~~with~~Company was issued penny warrants exercisable for 19.9% of the ~~Sphere~~equity ~~Distribution,~~interests ~~including~~in aMSG ~~trademark~~Networks, ~~license~~as ~~agreement~~further ~~and~~described ~~certain~~in ~~other~~Note ~~arrangements.~~9;

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

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

•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;

•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; and

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

OnThe ~~April~~Company ~~24,~~is ~~2025,~~also ~~Knicks~~party ~~LLC~~to time-sharing and ~~Rangers~~dry ~~LLC~~lease ~~(collectively,~~arrangements ~~the~~with ~~“Teams”),~~MSG ~~entered~~Entertainment ~~into~~in aconnection ~~Transaction Support Agreement (the “Transaction Support Agreement”)~~ with ~~respect~~aircraft toleased ~~amendments~~by to the ~~media~~Company ~~rights~~and ~~agreements~~MSG ~~between~~Entertainment ~~subsidiaries~~as ofwell ~~MSG~~as ~~Networks~~arrangements ~~and~~with ~~the~~MSG ~~Teams~~Entertainment and ~~the~~Sphere ~~restructuring~~Entertainment ofpursuant ~~the~~to ~~debt~~which ~~of subsidiaries of MSG Networks (~~the ~~“Transactions”).~~three ~~The~~companies ~~Transaction~~have ~~Support~~agreed ~~Agreement contemplates entering into amendments~~ to ~~the~~allocate ~~media~~expenses ~~rights~~in ~~agreements~~connection towith ~~which~~ the ~~Teams~~use ~~are~~by aeach ~~party,~~company ~~effective as~~ of ~~January~~such ~~1, 2025, as follows:~~aircraft.

~~•New~~In ~~York~~addition, ~~Knicks~~the Company shares certain executive support costs, including office space, executive assistants, security and transportation costs for: (i) the Company’s Executive Chairman and Chief Executive Officer with Sphere Entertainment and MSG Entertainment, (ii) the Company’s Vice Chairman with AMC Networks, Sphere Entertainment and MSG Entertainment, and (iii) the Company’s Executive Vice President with Sphere Entertainment and AMC Networks. Additionally, the Company, Sphere Entertainment, AMC Networks and MSG Entertainment allocate the costs of certain personal aircraft and helicopter usage by their shared executives.

◦aRevenues ~~reduction~~and ofOperating ~~28%~~Expenses ~~in the annual rights fee;~~(Credits)

~~◦an~~The ~~elimination~~following table summarizes the composition and amounts of the ~~annual~~transactions ~~rights~~with ~~fee~~the ~~escalator;~~Company’s affiliates. These amounts are reflected in revenues and operating expenses in the accompanying consolidated statements of operations for the three months ended September 30, 2025 and 2024:

◦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;


	Three Months Ended September 30,
	2025		2024
Revenues (a)	$	6,760	$	8,904
Operating expenses:

Expense pursuant to the Services Agreement	$	10,423	$	8,477
Rent expense pursuant to Sublease Agreement	2,075		894
Costs associated with the Sponsorship Sales and Service Representation Agreements	2,604		2,612
Operating lease expense associated with the Arena License Agreements	1,311		1,311
Other costs associated with the Arena License Agreements	1,193		1,013
Other operating credits, net	(420)		(150)

___________________

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

~~◦a reduction of 18% in the annual rights fee;~~22

◦an elimination of the annual rights fee escalator; and

◦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; and

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

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

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

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

In addition, the Company shares certain executive support costs, including office space, executive assistants, security and transportation costs for: (i) the Company’s Executive Chairman and Chief Executive Officer with MSG Entertainment and Sphere Entertainment, (ii) the Company’s Vice Chairman with MSG Entertainment, Sphere Entertainment, and AMC Networks, and (iii) the Company’s Executive Vice President with Sphere Entertainment and AMC Networks. Additionally, the

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MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Continued)

~~Company,~~Note ~~MSG~~16. ~~Entertainment,~~Income ~~Sphere Entertainment, and AMC Networks allocate the costs of certain personal aircraft and helicopter usage by their shared executives.~~Taxes

~~Revenues~~In general, the Company is required to use an estimated annual effective tax rate to measure the tax benefit or tax expense recognized in an interim period. The estimated annual effective tax rate exceeds the statutory federal tax rate of 21% primarily due to state taxes, nondeductible officers’ compensation, and ~~Operating~~players’ ~~Expenses~~disability ~~(Credits)~~insurance premiums expense, partially offset in the current period by the impact of dividends received. The estimated annual effective tax rate is revised on a quarterly basis.

~~The~~Income ~~following~~tax ~~table~~benefit ~~summarizes~~for the ~~composition~~three ~~and~~months ~~amounts~~ended ofSeptember 30, ~~the~~2025 ~~transactions~~of ~~with~~$8,555 ~~the~~reflects ~~Company’s~~an ~~affiliates.~~effective ~~These~~tax ~~amounts~~rate ~~are reflected in revenues and operating expenses in the accompanying consolidated statements~~ of ~~operations for the three and nine months ended March 31, 2025 and 2024:~~49%.

	Three Months Ended March 31,				Nine Months Ended March 31,
	2025		2024		2025		2024
Revenues (a)	$	67,704	$	86,944	$	156,825	$	173,419
Operating expenses:
Expense pursuant to the Services Agreement	$	10,383	$	9,131	$	26,836	$	28,557
Rent expense pursuant to Sublease Agreement	1,973		731		7,151		2,233
Costs associated with the Sponsorship Sales and Service Representation Agreements	8,568		7,260		17,209		15,411
Operating lease expense associated with the Arena License Agreements	33,380		35,370		61,472		61,043
Other costs associated with the Arena License Agreements	16,746		16,788		31,565		30,409
Other operating credits, net	(1,135)		(666)		(1,711)		(1,985)

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

~~(a)Primarily~~During ~~consist~~the ofthree ~~local~~months ~~media~~ended ~~rights~~September 30, ~~recognized~~2025 ~~from~~and 2024, the ~~licensing~~Company ofmade ~~team-related~~income ~~programming~~tax ~~under~~payments, ~~the~~net ~~media~~of ~~rights~~refunds, ~~agreements~~of ~~covering~~$11,836 ~~the Knicks~~ and ~~the~~$10,280, ~~Rangers~~respectively.

~~Note~~The 17Company was notified in March 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. ~~Income~~The ~~Taxes~~audit was finalized in July 2025 and resulted in no material changes.

InOn ~~general~~July 4, 2025, the ~~Company~~Reconciliation isBill, ~~required~~commonly toknown ~~use~~as anthe ~~estimated~~“One ~~annual~~Big ~~effective~~Beautiful ~~tax~~Bill ~~rate~~Act” to(the ~~measure~~“OBBBA”), ~~the~~was ~~tax~~enacted ~~benefit~~into orlaw. ~~tax~~The ~~expense~~OBBBA ~~recognized~~includes ina anbroad ~~interim~~range ~~period.~~of ~~The~~tax ~~estimated~~reform ~~annual~~provisions ~~effective~~affecting ~~tax~~businesses, ~~rate~~including ~~exceeds~~extending ~~the~~and ~~statutory~~modifying ~~federal~~certain ~~tax~~key ~~rate~~Tax ofCuts ~~21%~~& ~~primarily~~Jobs ~~due~~Act toprovisions ~~state~~(both ~~taxes~~domestic and international), ~~nondeductible~~expanding ~~officers’~~certain ~~compensation,~~Inflation Reduction Act incentives and ~~players’~~accelerating ~~disability~~the ~~insurance~~phase-out ~~premiums~~of ~~expense~~others. The ~~estimated~~Company ~~annual~~evaluated ~~effective~~these ~~tax~~provisions ~~rate~~and isconcluded ~~revised~~the onprovisions did not have a ~~quarterly~~material ~~basis~~impact on the Company’s consolidated financial statements.

~~Income~~Note ~~tax~~17. ~~expense~~Additional ~~for~~Financial ~~the three and nine months ended March 31, 2025 of $36,857 and $30,507, respectively, reflects an effective tax rate of 163% and 310%, respectively.~~Information

~~Income~~The ~~tax~~following ~~expense~~table ~~for~~summarizes the ~~three~~composition and ~~nine~~amounts ~~months~~of ~~ended~~prepaid ~~March 31,~~expenses ~~2024~~included ofin ~~$34,018~~the ~~and~~accompanying ~~$29,658,~~consolidated ~~respectively,~~balance ~~reflects~~sheets anas ~~effective~~of ~~tax~~September ~~rate~~30, of2025 ~~47%.~~and June 30, 2025:

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


	September 30, 2025		June 30, 2025
Prepaid employee-related costs	$	73,220	$	34,850
Other prepaid expenses	29,280		8,567
Total prepaid expenses	$	102,500	$	43,417

The Company was notified in March of 2025 that the State of New York was commencing an audit of the state income tax returns for the fiscal years ended June 30, 2022 and 2023. The Company does not expect the examinations, when finalized, to result in material changes.23

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

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MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Continued)

Note 18. 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 income (loss) to assess financial performance and allocate resources. Consolidated net income (loss) 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 three months ended September 30, 2025 and 2024:


	Three Months Ended September 30,
	2025		2024
Revenues	$	39,454	$	53,307
Significant segment expenses:
Ticketing and sponsorship sales related expenses (a)	(8,178)		(8,515)

Marketing & event-related expenses (b)	(8,922)		(8,151)

Corporate & administrative (c)	(26,395)		(23,237)
Operating lease expenses and other rental expenses associated with the Arena License Agreements (d)	(1,345)		(1,344)

Team operating expenses (e)	(13,009)		(11,647)

Other segment items (f)	(8,219)		(7,904)
Depreciation and amortization	(811)		(782)
Interest income	578		864
Interest expense	(5,591)		(6,055)
Miscellaneous income (expense), net	15,085		(1,126)
Income tax benefit	8,555		7,048
Net loss	$	(8,798)	$	(7,542)

_________________

(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 15 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.

(c)Corporate & administrative expenses include certain selling, general, and administrative costs.

(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 15 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 and 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.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

This Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In this MD&A, there are statements concerning the future operating and future financial performance of Madison Square Garden Sports Corp. and its direct and indirect subsidiaries (collectively, “we,” “us,” “our,” “MSG Sports,” or the “Company”), including stated annual local media rights fees for the fiscal year ended June 30, 2026. Words such as “expects,” “anticipates,” “believes,” “estimates,” “may,” “will,” “should,” “could,” “potential,” “continue,” “intends,” “plans,” and similar words and terms used in the discussion of future operating and future financial performance identify forward-looking statements. Investors are cautioned that such forward-looking statements are not guarantees of future performance, results or events and involve risks and uncertainties and that actual results or developments may differ materially from the forward-looking statements as a result of various factors. Factors that may cause such differences to occur include, but are not limited to:

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

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

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

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

•general economic conditions, especially in the New York City metropolitan area, including ~~the~~any ~~impact~~economic ofdownturn, a recession, onfinancial ~~our~~instability, ~~business~~impact from Government shutdowns or inflation;

•the demand for sponsorship arrangements and for advertising;

•competition, for example, from other teams, and other sports and entertainment options;

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

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

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

•any NBA, NHL or other work stoppage;

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

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

•seasonal fluctuations and other variation in our operating results and cash flow from period to period;

•the level of our expenses, including our corporate expenses;

•operational, business, reputational, litigation and other risk if there is a security incident resulting in loss, disclosure or misappropriation of stored personal information or other breaches of our information security or if third party facilities, systems and/or software upon which we rely are interrupted or unavailable;

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

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

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

•the acquisition or disposition of assets or businesses and/or the impact of, and our ability to successfully pursue acquisitions or other strategic transactions;

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

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

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

•the impact of governmental regulations or laws, changes in how those regulations and laws are interpreted and the continued benefit of certain tax exemptions (including for The Garden) or tax deductions and the ability for us and Madison Square Garden Entertainment Corp. (“MSG Entertainment”) to maintain necessary permits or licenses;

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•the impact of governmental regulations or laws, including potential legislation related to ticketing, changes in how those regulations and laws are interpreted and the continued benefit of certain tax exemptions (including for The Garden) and the ability for us and Madison Square Garden Entertainment Corp. (“MSG Entertainment”) to maintain necessary permits or licenses;

•the impact of any government plans to redesign New York City’s Pennsylvania Station;

•changes in international trade policies and practices, including tariffs, and the economic impacts, volatility and uncertainty resulting therefrom;

•business, economic, reputational and other risks associated with, and the outcome of, litigation and other proceedings;

•financial community and rating agency perceptions of our business, operations, financial condition and the industry in which we operate;

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

•the ~~tax-free~~factors ~~treatment~~described ofunder ~~the~~“Risk ~~distribution~~Factors” ofin ~~all~~our ofAnnual ~~the~~Report ~~outstanding~~on ~~common~~Form ~~stock~~10-K offor ~~Sphere~~the ~~Entertainment~~fiscal ~~Co.~~year ~~(“Sphere~~ended ~~Entertainment”) to its stockholders~~June 30, ~~which~~2025 ~~was~~(our ~~completed~~“2025 onForm ~~April 17, 2020; and~~10-K”).

•the factors described under “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended June 30, 2024 and in this Quarterly Report on Form 10-Q.

We disclaim any obligation to update or revise the forward-looking statements contained herein, except as otherwise required by applicable federal securities laws.

All dollar amounts included in the following MD&A are presented in thousands, except as otherwise noted.

Introduction

This MD&A is provided as a supplement to, and should be read in conjunction with, the Company’s unaudited financial statements and accompanying notes thereto included in this Quarterly Report on Form 10-Q, as well as the ~~Company’s~~2025 ~~Annual Report on~~ Form 10-K ~~for the fiscal year ended June 30~~, ~~2024,~~ to help provide an understanding of our financial condition, changes in financial condition and results of operations. Unless the context otherwise requires, all references to “we,” “us,” “our,” “MSG Sports,” or the “Company” refer collectively to Madison Square Garden Sports Corp., a holding company, and its direct and indirect subsidiaries through which substantially all of our operations are conducted.

The Company operates and reports financial information in one segment.

This MD&A is organized as follows:

Results of Operations. This section provides an analysis of our unaudited results of operations for the three ~~and nine~~ months ended ~~March~~September 3130, 2025 compared to the three ~~and nine~~ months ended ~~March~~September 3130, 2024.

Liquidity and Capital Resources. This section focuses primarily on (i) the liquidity and capital resources of the Company, (ii) an analysis of the Company’s cash flows for the ~~nine~~three months ended ~~March~~September 3130, 2025 compared to the ~~nine~~three months ended ~~March~~September 3130, 2024, and (iii) certain contractual obligations.

Seasonality of Our Business. This section discusses the seasonal performance of our business.

Recent Accounting Pronouncements and Critical Accounting Policies. This section discusses accounting pronouncements that have been adopted by the Company, if any, as well as the results of the Company’s annual impairment testing of goodwill and identifiable indefinite-lived intangible assets performed during the first quarter of fiscal year ~~2025~~2026. This section should be read together with our critical accounting policies, which are discussed in our ~~Annual~~2025 ~~Report on~~ Form 10-K ~~for the fiscal year ended June 30, 2024~~ under “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Recently Issued Accounting Pronouncements and Critical Accounting Policies — Critical Accounting Policies” and in the notes to the consolidated financial statements of the Company included therein.

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~~Matters~~Factors Affecting ~~Comparability~~Operating Results

~~Proposed~~ Amendments to Media Rights Agreements

On ~~April~~June 2427, 2025, ~~New York Knicks, LLC and New York Rangers, LLC (collectively,~~ the ~~“Teams”), entered into a Transaction Support Agreement (the “Transaction Support Agreement”) with respect to amendments to the~~ media rights agreements between subsidiaries of MSG Networks, ~~and~~on the ~~Teams~~one hand, and ~~the~~New ~~restructuring~~York ofKnicks, ~~the~~LLC ~~debt of subsidiaries of MSG Networks~~ (~~the~~ “~~Transactions~~Knicks LLC”). ~~The~~and ~~Transaction~~New ~~Support~~York ~~Agreement~~Rangers, ~~contemplates~~LLC ~~entering~~(“Rangers ~~into~~LLC”), ~~amendments~~on to the ~~media~~other ~~rights agreements to which the Teams are a party~~hand, ~~effective~~were ~~as of January 1~~amended, ~~2025,~~ as follows:

•New York Knicks:

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

◦an elimination of the annual rights fee escalator; and

◦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; and

•New York Rangers:

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

◦an elimination of the annual rights fee escalator; and

◦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~~; and~~.

•Concurrent with the ~~issuance~~amendments byto the media rights agreements, MSG Networks ofissued penny warrants to the Company exercisable for 19.9% of the equity interests in MSG Networks.

~~The~~As ~~Transactions~~a ~~will~~result beof ~~consummated~~the ~~upon~~amendments to the ~~execution~~media ofrights ~~definitive~~agreements, ~~documents~~media ~~containing~~rights ~~terms~~fees ~~consistent~~revenues ~~with~~for ~~those~~the ~~set~~three ~~forth~~months inended September 30, 2025 have been recorded at the ~~Transaction~~applicable ~~Support~~reduced ~~Agreement~~rate described above. The Company also expects to record media rights fees reflecting the reduced rates described above in future periods.

As a result of the proposed amendments to the media rights agreements contemplated by the Transaction Support Agreement, media rights fees revenues for the three and nine months ended March 31, 2025 have been recorded at the applicable reduced rate described above. The Company also expects to record media rights fees reflecting the reduced rates described above in future periods.27

Knicks and Rangers Home Games at The Garden

The Company’s operating results are impacted by the number of home games the Knicks and the Rangers play at The Garden during each quarter of the fiscal year. For the three months ended March 31, 2025 the Knicks and the Rangers played two fewer combined home games at The Garden during the current year period as compared to the prior year period. For the nine months ended March 31, 2025 the Knicks and the Rangers playing a combined one additional home game at The Garden during the current year period as compared to the prior year period. The Knicks played 23 games at The Garden during the three months ended March 31, 2025 and 40 games at The Garden during the nine months ended March 31, 2025 as compared to 26 and 41 games, respectively, during the prior year periods. The Rangers played 20 games at The Garden during the three months ended March 31, 2025 and 40 games at The Garden during the nine months ended March 31, 2025 as compared to 19 and 38 games, respectively, during the prior year periods.

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Results of Operations

Comparison of the three ~~and nine~~ months ended ~~March~~September 3130, 2025 versus the three ~~and nine~~ months ended ~~March~~September 3130, 2024

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

	Three Months Ended								Nine Months Ended
	Three Months Ended September 30,				Change
	March 31,				Change				March 31,				Change
	2025		2024		$		%
	2025		2024		$		%		2025		2024		$		%
Revenues	$	39,454	$	53,307	$	(13,853)	(26)	%
Revenues	$	424,197	$	429,954	$	(5,757)	(1)	%	$	835,263	$	799,898	$	35,365	4	%
Direct operating expenses	8,279		8,211		68		1	%
Direct operating expenses	316,335		273,026		43,309		16	%	600,299		508,771		91,528		18	%
Selling, general and administrative expenses	57,789		52,587		5,202		10	%
Selling, general and administrative expenses	74,697		76,398		(1,701)		(2)	%	195,184		195,020		164		—	%
Depreciation and amortization	811		782		29		4	%
Depreciation and amortization	823		788		35		4	%	2,396		2,372		24		1	%
Operating loss	(27,425)		(8,273)		(19,152)		NM
Operating income	32,342		79,742		(47,400)		(59)	%	37,384		93,735		(56,351)		(60)	%
Other income (expense):
Interest income	~~1,051~~578		~~477~~864		~~574~~(286)		NM(33)	%	~~2,605~~		~~1,549~~		~~1,056~~		68	%
Interest expense	(5,~~020~~591)		(6,~~921~~055)		~~1,901~~464		(278)	%	~~(16,662)~~		~~(21,269)~~		~~4,607~~		~~(22)~~	%
Miscellaneous expense, net	(5,743)		(1,403)		(4,340)		NM		(13,478)		(11,077)		(2,401)		22	%
Miscellaneous income (expense), net	15,085		(1,126)		16,211		NM
Income before income taxes	22,630		71,895		(49,265)		(69)	%	9,849		62,938		(53,089)		(84)	%
Loss before income taxes	(17,353)		(14,590)		(2,763)		(19)	%
Income tax expense	(36,857)		(34,018)		(2,839)		8	%	(30,507)		(29,658)		(849)		3	%
Income tax benefit	8,555		7,048		1,507		21	%
Net (loss) income	$	(14,227)	$	37,877	$	(52,104)	NM		$	(20,658)	$	33,280	$	(53,938)	NM
Net loss	$	(8,798)	$	(7,542)	$	(1,256)	(17)	%

______________

NM - Percentage is not meaningful

Revenues

Revenues decreased $513,~~757~~853, or 126%, to $~~424~~39,~~197~~454 for the three months ended ~~March~~September 3130, 2025 as compared to the prior year period. ~~Revenues increased $35,365, or 4%, to $835,263 for the nine months ended March 31, 2025 as compared to the prior year period.~~

The net (decrease) ~~increase~~was ~~were~~ attributable to the following:

	Three		Nine
Decrease in revenues from league distributions	$	(11,429)
	Months		Months
Decrease in revenues from local media rights fees	(2,253)
Decrease in revenues from local media rights fees	$	(18,638)	$	(16,837)
Other net decreases	(171)
Decrease in pre/regular season food, beverage and merchandise sales	(2,534)		(96)
	$	(13,853)
Increase in sponsorship and signage revenues	8,898		11,602
Increase in suite revenues	3,401		10,669
Increase in revenues from league distributions	2,446		14,822
Increase in pre/regular season ticket-related revenues	506		15,272
Other net increases (decreases)	164		(67)
	$	(5,757)	$	35,365

The ~~decreases~~decrease in revenues from ~~local~~league ~~media~~distributions ~~rights fees~~ for the three ~~and nine~~ months ended ~~March~~September 3130, 2025 ~~were~~was primarily due to a ~~reduction~~decrease in ~~expected~~certain ~~local~~league ~~media~~distributions ~~rights~~unrelated ~~fees for the 2024-25 season as a result of proposed amendments~~ to ~~the~~national ~~Knicks’ and Rangers’ local~~ media rights agreements with MSG Networks contemplated in the Transaction Support Agreement. As a result of the amendments contemplated by the Transaction Support Agreement, the Company expects revenues from local media rights fees ~~will be $1,098 lower for the three months ended June 30, 2025, as compared to the prior year period~~. Stated annual local media rights fees, subject to adjustments in certain circumstances, including if the Company does not make available a minimum number of games in the year, after consideration of the media rights amendments contemplated in the Transaction Support Agreement are anticipated to be $162,939 and $139,237 for the years ended June 30, 2025 and 2026, respectively.

The decrease in ~~pre/regular~~revenues ~~season~~from ~~food,~~local ~~beverage,~~media ~~and~~rights ~~merchandise~~fees ~~sales~~ for the three months ended ~~March~~September 3130, 2025 was primarily due to ~~lower~~reduced ~~average~~local ~~per-game~~media ~~revenue,~~rights ~~lower~~fees ~~online~~as ~~sales~~a result of ~~merchandise,~~amendments ~~and~~to the Knicks’ and Rangers’ local media rights agreements with MSG Networks entered into in the ~~Rangers~~fourth ~~playing~~quarter ~~two~~of ~~fewer~~fiscal ~~combined~~year ~~home~~2025, and to a lesser extent, a reduction in rights fees due to a decrease in the number of games atexclusively ~~The~~available ~~Garden~~to MSG Networks during the current fiscal year ~~period~~ as compared to the prior ~~year~~fiscal ~~period~~year. ~~The~~Stated annual local media rights fees, subject to adjustments in certain circumstances, including if the Company does not make available a minimum number of games in the year, after consideration of the media rights amendments are $139,237 for the year ending June 30, 2026 as compared to $162,939 in stated annual local media rights fees for the fiscal year ended June 30, 2025.

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decrease in pre/regular season food, beverage, and merchandise sales for the nine months ended March 31, 2025 was primarily due to lower online sales of merchandise, partially offset by the Knicks and the Rangers playing a combined one additional home game at The Garden during the current year period as compared to the prior year period and higher average per-game revenue. Merchandise sales for the three and nine months ended March 31, 2024 included the positive impact of new Rangers’ jersey launches.

The increase in sponsorship and signage revenues for the three months ended March 31, 2025 was primarily due to higher net sales of existing sponsorship and signage inventory, partially offset by the Knicks and the Rangers playing two fewer combined home games at The Garden during the current year period as compared to the prior year period. The increase in sponsorship and signage revenues for the nine months ended March 31, 2025 was primarily due to higher net sales of existing sponsorship and signage inventory.

The increase in suite revenues for the three months ended March 31, 2025 was primarily due higher net sales of suite products, partially offset by the Knicks and the Rangers playing two fewer combined home games at The Garden during the current year period as compared to the prior year period. The increase in suite revenues for the nine months ended March 31, 2025 was primarily due higher net sales of suite products and the Knicks and the Rangers playing a combined one additional home game at The Garden during the current year period as compared to the prior year period.

The increase in revenues from league distributions for the three months ended March 31, 2025 was primarily due to increased national media rights fees in the current year period. The increase in revenues from league distributions for the nine months ended March 31, 2025 was primarily due to an increase in certain league distributions unrelated to national media rights fees and increased national media rights fees in the current year period.

The increase in pre/regular season ticket-related revenues for the three months ended March 31, 2025 was primarily due to higher average per-game revenue, partially offset by the Knicks and the Rangers playing two fewer combined home games at The Garden during the current year period as compared to the prior year period. The increase in pre/regular season ticket-related revenues for the nine months ended March 31, 2025 was primarily due to higher average per-game revenue and the Knicks and the Rangers playing a combined one additional home game at The Garden during the current year period as compared to the prior year period.

Direct operating expenses

Direct operating expenses increased $4368,~~309,~~ or 161%, to $~~316~~8,~~335~~279 for the three months ended ~~March~~September 3130, 2025 as compared to the prior year period. ~~Direct operating expenses increased $91,528, or 18%, to $600,299 for the nine months ended March 31, 2025 as compared to the prior year period.~~

The net ~~increases~~increase ~~were~~was attributable to the following:

	Three		Nine
Increase in net provisions for certain team personnel transactions	$	1,549
	Months		Months
Decrease in net provisions for league revenue sharing expense (net of escrow and excluding playoffs) and NBA luxury tax	(2,428)
Increase in net provisions for league revenue sharing expense (net of escrow and excluding playoffs) and NBA luxury tax	$	33,808	$	52,808
Other net increases	947
Increase in team personnel compensation	14,692		29,939
	$	68
Increase in other team operating expenses	1,091		2,972
(Decrease) increase in net (credits) provisions for certain team personnel transactions	(2,823)		5,596
(Decrease) increase in operating lease costs associated with the Knicks and the Rangers playing home games at The Garden	(1,989)		429
Decrease in pre/regular season expense associated with merchandise sales	(1,470)		(216)
	$	43,309	$	91,528

	Three Months Ended						Nine Months Ended
	March 31,						March 31,
	2025		2024		Increase		2025		2024		Increase
Net provisions for league revenue sharing expense (net of escrow and excluding playoffs) and NBA luxury tax	$	53,911	$	20,103	$	33,808	$	95,329	$	42,521	$	52,808

Net provisions for certain team personnel transactions for the three months ended September 30, 2025 and 2024 reflect provisions recorded for waiver/contract terminations of $2,382 and $833, respectively.

The ~~increases~~decrease in net provisions for league revenue sharing expense (net of escrow and excluding playoffs) and NBA luxury tax for the three ~~and nine~~ months ended ~~March~~September 3130, 2025 ~~were~~was ~~primarily~~ due to ~~higher NBA luxury tax expense. In addition,~~ the ~~increase~~net inimpact ~~net~~of ~~provisions~~adjustments ~~for~~to ~~league~~prior seasons’ revenue sharing expense (net of escrow ~~and excluding playoffs~~) ~~and NBA luxury tax for~~ .

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the three months ended March 31, 2025 was partially due to higher provisions for league revenue sharing expense (net of escrow and excluding playoffs). The increases in NBA luxury tax expense were the result of the Knicks being a significant luxury tax payer for the 2024-25 season based on their roster as of March 31, 2025, whereas the Knicks were not a luxury tax payer for the 2023-24 season. The Knicks received an equal share of the portion of luxury tax receipts that were distributed to non-paying teams for the 2023-24 season.

The actual net provisions for league revenue sharing expense (net of escrow and excluding playoffs) for the 2024-25 seasons may vary significantly from the recorded provisions based on actual operating results for each league and all teams within each league for the season and other factors.

The increases in team personnel compensation for the three and nine months ended March 31, 2025 were primarily due to changes in the Knicks roster.

Other team operating expenses primarily consist of expenses associated with day-to-day operations, including variable day-of-event costs incurred at The Garden, team travel, player insurance, and league assessments. The increase in other team operating expenses for the three months ended March 31, 2025 was primarily due to higher average per-game expenses, partially offset by the Knicks and the Rangers playing two fewer combined home games at The Garden during the current year period as compared to the prior year period. The increase in other team operating expenses for the nine months ended March 31, 2025 was primarily due to higher average per-game expenses and the Knicks and the Rangers playing a combined one additional home game at The Garden during the current year period as compared to the prior year period.

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

	Three Months Ended						Nine Months Ended
	March 31,						March 31,
	2025		2024		Decrease		2025		2024		Increase (Decrease)
Season-ending player injuries	$	133	$	2,170	$	(2,037)	$	133	$	2,170	$	(2,037)
Player trades	(786)		—		(786)		6,800		—		6,800
Waivers/contract terminations	—		—		—		833		—		833
Net (credits) provisions for certain team personnel transactions	$	(653)	$	2,170	$	(2,823)	$	7,766	$	2,170	$	5,596

The decrease in operating lease costs associated with the Knicks and the Rangers playing home games at The Garden for the three months ended March 31, 2025 was a result of the Knicks and the Rangers playing two fewer combined home games at The Garden during the current year period as compared to the prior year period. The increase in operating lease costs associated with the Knicks and the Rangers playing home games at The Garden for the nine months ended March 31, 2025 was a result of the Knicks and the Rangers playing a combined one additional home game at The Garden during the current year period as compared to the prior year period.

Recognition of operating lease costs is recorded on a straight-line basis over the term of the applicable agreement based upon the value of total future payments under the arrangement. Operating lease costs associated with the Knicks and the Rangers playing home games at The Garden includes operating lease costs of (i) $21,747 and $40,048 of expense paid in cash for the three and nine months ended March 31, 2025, respectively, and $22,372 and $38,610 of expense paid in cash for the three and nine months ended March 31, 2024, respectively, and (ii) a non-cash expense of $11,633 and $21,424 for the three and nine months ended March 31, 2025, respectively, and $12,998 and $22,433 for the three and nine months ended March 31, 2024, respectively.

The decrease in pre/regular season expense associated with merchandise sales for the three months ended March 31, 2025 was primarily related to lower average per-game revenue, lower online sales of merchandise, and the Knicks and the Rangers playing two fewer combined home games at The Garden during the current year period as compared to the prior year period. The decrease in pre/regular season expense associated with merchandise sales for the nine months ended March 31, 2025 was primarily due to higher reserves for obsolete inventory recorded in the prior year period as compared to the current year period.

Selling, general and administrative expenses

Selling, general and administrative expenses primarily consist of (i) administrative costs, including compensation, costs under the Services Agreement, professional fees, and operating lease costs, (ii) fees related to the Sponsorship Sales and Service Representation Agreements, and (iii) sales and marketing costs. Selling, general and administrative expenses generally do not fluctuate in line with changes in the Company’s revenues and direct operating expenses.

33Selling, general and administrative expenses for the three months ended September 30, 2025 increased $5,202, or 10%, to $57,789 as compared to the prior year period driven by (i) higher costs related to the Services Agreement of $1,614, (ii) higher operating lease costs of $1,222, (iii) higher employee compensation and related benefits of $1,008, and (iv) higher other general and administrative expenses.

~~Table~~Operating ~~of Contents~~loss

~~Selling,~~Operating ~~general~~loss ~~and administrative expenses~~ for the three months ended ~~March~~September 3130, 2025 ~~decreased~~increased $119,~~701,~~152 ~~or 2%,~~ to $7427,~~697~~425 as compared to the prior year period ~~driven by lower employee compensation and related benefits of $12,423,~~ primarily ~~related~~due to ~~executive management transition costs recognized in the prior year period, and~~ lower ~~other~~revenues ~~general~~ and ~~administrative expenses, partially offset by (i)~~ higher ~~professional fees of $7~~selling,~~617,~~ ~~(ii)~~general ~~higher costs related to the Services Agreement of $1,844, (iii) higher operating lease costs of $1,373,~~ and ~~(iv)~~administrative ~~higher fees related to the Sponsorship Sales and Service Representation Agreements of $1,182~~expenses.

Selling, general and administrative expenses for the nine months ended March 31, 2025 increased $164 to $195,184 as compared to the prior year period driven by (i) higher professional fees of $11,518, (ii) higher operating lease costs of $5,138, and (iii) higher fees related to the Sponsorship Sales and Service Representation Agreements of $1,686, offset by lower employee compensation and related benefits of $15,701, primarily related to executive management transition costs recognized in the prior year period, lower sales and marketing costs of $2,202, and lower other general and administrative expenses.

Operating income

Operating income for the three months ended March 31, 2025 decreased $47,400, or 59%, to $32,342 as compared to the prior year period primarily due to higher direct operating expenses and, to a lesser extent, lower revenues.

Operating income for the nine months ended March 31, 2025 decreased $56,351, or 60%, to $37,384 as compared to the prior year period primarily due to higher direct operating expenses, partially offset by higher revenues.

Interest income

Interest income for the three months ended ~~March~~September 3130, 2025 ~~increased~~decreased $~~574~~286, or 33%, to $~~1,051~~578 as compared to the prior year period primarily due to ~~higher~~lower average interest rates and lower average cash balances in the current year period~~, partially offset by lower average interest rates~~.

Interest income for the nine months ended March 31, 2025 increased $1,056, or 68%, to $2,605 as compared to the prior year period primarily due to higher average cash balances in the current year period, partially offset by lower average interest rates.

Interest expense

Interest expense for the three months ended ~~March~~September 3130, 2025 decreased $1464,~~901,~~ or 278%, to $5,~~020~~591 as compared to the prior year period primarily due to lower average ~~borrowings~~interest ~~under~~rates ~~the Rangers Revolving Credit Facility in the current year period~~ and lower average ~~interest~~borrowings ~~rates~~ under the Knicks Revolving Credit Facility in the current year period, partially offset by higher other interest expense.

~~Interest~~Miscellaneous ~~expense~~income ~~for the nine months ended March 31~~(expense), 2025 decreased $4,607, or 22%, to $16,662 as compared to the prior year period primarily due to lower average borrowings under the Rangers Revolving Credit Facility in the current year period and lower average interest rates under the Knicks Revolving Credit Facility in the current year period.net

Miscellaneous income (expense), net for the three months ended September 30, 2025 reflected net income of $15,085 and miscellaneous income (expense), net for the three months ended September 30, 2024 reflected net expense of $1,126. The increase in miscellaneous income (expense), net relates to changes in fair value in the Company’s investments.

Miscellaneous expense, net for the three months ended March 31, 2025 increased $4,340 to $5,743 as compared to the prior year period primarily due to higher unrealized losses in the current year period as compared to the prior year period related to the Company’s investments in Xtract One common stock and warrants and the net impact of the remeasurement of the fair value of assets under the Deferred Compensation Plan.

Miscellaneous expense, net for the nine months ended March 31, 2025 increased $2,401, or 22%, to $13,478 as compared to the prior year period primarily due to higher unrealized losses in the current year period related to the Company’s investments in equity investments without readily determinable fair values and Xtract One common stock and warrants, and lower unrealized gains in the current year period related to the remeasurement of the fair value of assets under the Deferred Compensation Plan.

Income taxes

See Note 1716 to the consolidated financial statements included in “Part I — Item 1. Financial Statements” of this Quarterly Report on Form 10-Q for a discussion of the Company’s income taxes.

~~Adjusted~~Changes ~~operating~~in tax regulations could limit the availability of tax benefits or deductions that the Company expects to claim or otherwise increase the taxes imposed on the Company’s operations. For example, to the extent the expansion of Section 162(m) of the U.S. Internal Revenue Code, which will become effective for the Company’s fiscal year ending June 30, 2028, reduces the amount of tax deductions available to us, our income tax expense would increase, which would reduce our net income. See “Item 1A. Risk Factors—Operational Risks—We Are Subject to Governmental Regulation, Which Can Change, and Any

The Company evaluates performance based on several factors, of which the key financial measure is operating income (loss) excluding (i) depreciation, amortization and impairments of property and equipment, goodwill and other intangible assets, (ii) share-based compensation expense or benefit, (iii) restructuring charges or credits, (iv) gains or losses on sales or dispositions of businesses, (v) the impact of purchase accounting adjustments related to business acquisitions, and (vi) gains and losses related to the remeasurement of liabilities under the Company’s Executive Deferred Compensation Plan, which is referred to as adjusted operating income (loss), a non-GAAP measure.29

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~~cash.~~Failure ~~In addition, management believes that the exclusion of gains and losses related~~ to ~~the~~Comply ~~remeasurement~~With ofThese ~~liabilities~~Regulations ~~under~~May ~~the~~Have ~~Company’s Executive Deferred Compensation Plan provides investors with~~ a ~~clearer~~Material ~~picture~~Negative ofEffect ~~the~~on ~~Company’s~~Our ~~operating~~Business ~~performance given that, in accordance with GAAP, gains~~ and ~~losses~~Results ~~related to the remeasurement~~ of ~~liabilities~~Operations” ~~under the Company’s Executive Deferred Compensation Plan are recognized~~ in ~~Operating~~our ~~income~~2025 ~~(loss)~~Form whereas gains and losses related to the remeasurement of the assets under the Company’s Executive Deferred Compensation Plan, which are equal to and therefore fully offset the gains and losses related to the remeasurement of liabilities, are recognized in Miscellaneous income (expense), net, which is not reflected in Operating income (loss)10-K.

Adjusted operating loss

Management believes that the exclusion of share-based compensation expense or benefit allows investors to better track the performance of the Company’s business without regard to the settlement of an obligation that is not expected to be made in cash. In addition, management believes that the exclusion of gains and losses related to the remeasurement of liabilities under the Company’s Executive Deferred Compensation Plan provides investors with a clearer picture of the Company’s operating performance given that, in accordance with GAAP, gains and losses related to the remeasurement of liabilities under the Company’s Executive Deferred Compensation Plan are recognized in Operating income (loss) whereas gains and losses related to the remeasurement of the assets under the Company’s Executive Deferred Compensation Plan, which are equal to and therefore fully offset the gains and losses related to the remeasurement of liabilities, are recognized in Miscellaneous income (expense), net, which is not reflected in Operating income (loss).

The Company believes adjusted operating income (loss) is an appropriate measure for evaluating the operating performance of the Company. Adjusted operating income (loss) and similar measures with similar titles are common performance measures used by investors and analysts to analyze the Company’s performance. The Company uses revenues and adjusted operating income (loss) measures as the most important indicators of its business performance and evaluates management’s effectiveness with specific reference to these indicators.

Adjusted operating income (loss) should be viewed as a supplement to and not a substitute for operating income (loss), net income (loss), cash flows from operating activities, and other measures of performance and/or liquidity presented in accordance with GAAP. Since adjusted operating income (loss) is not a measure of performance calculated in accordance with GAAP, this measure may not be comparable to similar measures with similar titles used by other companies. The Company has presented the components that reconcile operating income (loss), the most directly comparable GAAP financial measure, to adjusted operating income (loss).

The following are the reconciliations of operating ~~income~~loss to adjusted operating ~~income~~loss for the three ~~and nine~~ months ended ~~March~~September 3130, 2025 and 2024:

	Three Months Ended								Nine Months Ended
	Three Months Ended September 30,				Change
	March 31,				Change				March 31,				Change
	2025		2024		$		%
	2025		2024		$		%		2025		2024		$		%
Operating loss	$	(27,425)	$	(8,273)	$	(19,152)	NM
Operating income	$	32,342	$	79,742	$	(47,400)	(59)	%	$	37,384	$	93,735	$	(56,351)	(60)	%
Depreciation and amortization	811		782
Depreciation and amortization	823		788						2,396		2,372
Share-based compensation	4,844		4,268
Share-based compensation	3,900		7,350						14,159		18,069
Remeasurement of deferred compensation plan liabilities	963		965
Remeasurement of deferred compensation plan liabilities	(134)		821						973		1,556
Adjusted operating loss	$	(20,807)	$	(2,258)	$	(18,549)	NM
Adjusted operating income	$	36,931	$	88,701	$	(51,770)	(58)	%	$	54,912	$	115,732	$	(60,820)	(53)	%

For the three months ended ~~March~~September 3130, 2025, adjusted operating ~~income~~loss ~~decreased~~increased $5118,~~770,~~549 ~~or 58%,~~ to $3620,~~931~~807 as compared to the prior year period. The ~~decrease~~increase in adjusted operating ~~income~~loss was primarily due to ~~higher~~lower ~~direct~~revenues ~~operating~~and ~~expenses~~higher ~~and~~selling, togeneral aand ~~lesser~~administrative ~~extent, lower revenues~~expenses.

For the nine months ended March 31, 2025, adjusted operating income decreased $60,820, or 53%, to $54,912 as compared to the prior year period. The decrease in adjusted operating income was primarily due to higher direct operating expenses, partially offset by higher revenues.

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Liquidity and Capital Resources

Overview

Our primary sources of liquidity are cash and cash equivalents, cash flow from operations and available borrowing capacity under our credit facilities. See Note 12 to the consolidated financial statements included in “Part I - Item 1. Financial Statements” of this Quarterly Report on Form 10-Q for a discussion of the Knicks Credit Agreement, the Rangers Credit Agreement, and the Rangers NHL Advance Agreement (each as defined therein).

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

As of March 31, 2025, we had $96,536 in Cash and cash equivalents. In addition, as of March 31, 2025, the Company’s deferred revenue obligations were $124,958, net of billed, but not yet collected deferred revenue. This balance is primarily comprised of obligations in connection with tickets and suites.30

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As of September 30, 2025, we had $48,634 in Cash and cash equivalents. In addition, as of September 30, 2025, the Company’s deferred revenue obligations were $302,021, net of billed, but not yet collected deferred revenue. This balance is primarily comprised of obligations in connection with tickets, suites, sponsorships, and local media rights.

We regularly monitor and assess our ability to meet our net funding and investing requirements. The decisions of the Company as to the use of its available liquidity will be based upon the ongoing review of the funding needs of the business, management’s view of a favorable allocation of cash resources, and the timing of cash flow generation. To the extent the Company desires to access alternative sources of funding through the capital and credit markets, restrictions imposed by the NBA and NHL and potentially challenging U.S. and global economic and market conditions could adversely impact its ability to do so at that time.

We believe we have sufficient liquidity, including approximately $9648,~~536~~634 in Cash and cash equivalents as of ~~March~~September 3130, 2025, along with $258,000 of additional available borrowing capacity under existing credit facilities (as of ~~March~~September 3130, 2025), to fund our operations and satisfy any obligations for the foreseeable future. If MSG Networks were to experience a bankruptcy or insolvency event (as set forth in each of the credit facilities), we would be prevented, absent a cure or waiver, from making borrowings under our revolving credit facilities. The Rangers Credit Agreement also includes an event of default upon a bankruptcy or insolvency event with respect to a material media rights counterparty, including MSG Networks. There were no borrowings outstanding under the Rangers Revolving Credit Facility as of ~~March~~September 3130, 2025. InSee ~~addition,~~“Item we1A. ~~had~~Risk anFactors ~~outstanding~~— ~~receivable~~Economic ~~balance~~and ofBusiness ~~$30,101~~Relationship asRisks — Certain of ~~March~~Our ~~31,~~Subsidiaries ~~2025~~Have ~~from~~Incurred ~~MSG~~Substantial ~~Networks~~Indebtedness, ~~related~~and tothe ~~unpaid~~Occurrence ~~amounts~~of ~~under~~an ~~the~~Event ~~media~~of ~~rights~~Default ~~agreements.~~Under IfOur ~~MSG~~Subsidiaries’ ~~Networks~~Credit ~~were~~Facilities or Our Inability to ~~experience~~Repay aSuch ~~bankruptcy~~Indebtedness orWhen ~~insolvency~~Due ~~event,~~Could ~~some~~Substantially orImpair ~~all~~the Assets of ~~this~~Those ~~accounts~~Subsidiaries ~~receivable~~and ~~balance~~Have ~~could~~a beNegative ~~impaired~~Effect on Our Business.” in our 2025 Form 10-K.

Financing Agreements and Stock Repurchases

See Note 12 and Note 1514 to the consolidated financial statements included in “Part I — Item 1. Financial Statements” of this Quarterly Report on Form 10-Q for discussions of the Company’s debt obligations and various financing agreements, and the Company’s stock repurchases, respectively.

Contractual Obligations

The Company did not have any material changes in its contractual obligations since the end of fiscal year ~~2024~~2025 other than ~~the New Sublease Agreement described in Note 7 to the consolidated financial statements included in “Part I — Item 1. Financial Statements” of this Quarterly Report on Form 10-Q and~~ activities in the ordinary course of business.

Cash Flow Discussion

The following table summarizes the Company’s cash flow activities for the ~~nine~~three months ended ~~March~~September 3130, 2025 and 2024:

	Nine Months Ended March 31,
	Three Months Ended September 30,
	2025		2024
Net (loss) income	$	(20,658)	$	33,280
Net loss	$	(8,798)	$	(7,542)
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:	21,038		24,407
Adjustments to reconcile net loss to net cash used in operating activities:	(16,681)		195
Changes in working capital assets and liabilities	41(59,~~504~~475)		(7318,~~907~~811)
Net cash provided by (used in) operating activities	41,884		(16,220)
Net cash used in operating activities	(84,954)		(26,158)
Net cash used in investing activities	(51,~~349~~848)		(51,~~689~~163)
Net cash (used in) provided by financing activities	(26,406)		26,234
Net cash used in financing activities	(9,110)		(9,502)
Net increase in cash, cash equivalents and restricted cash	$	10,129	$	4,325
Net decrease in cash, cash equivalents and restricted cash	$	(95,912)	$	(36,823)

Operating Activities

Net cash ~~provided by (~~used in) operating activities for the ~~nine~~three months ended ~~March~~September 3130, 2025 ~~improved~~increased by $58,~~104~~796 to $4184,~~884~~954 as compared to the prior year period. The ~~improvement~~increase in net cash used in operating activities was primarily due to changes in working capital assets and liabilities and the decrease in net loss adjusted for non-cash items. The changes in working capital assets and liabilities were primarily driven by (i) an increase in net related party receivables of $29,339 primarily due to the timing of collections related to the Company’s Arena License Agreements., (ii) a higher increase in prepaid expenses and other assets of $16,478 primarily due to higher prepayments related to team personnel compensation and income taxes in the current year period, and (iii) a higher increase in accounts receivable, net, of $5,242 primarily due to the lack of receipts related to NBA luxury tax in the current year period, partially offset by higher collections of sponsorship sales in the current year period. These changes were partially offset by a higher increase in deferred revenue of $8,247 primarily due to higher collections of ticket sales in advance of recognition in the current year period.

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offset by the decrease in net (loss) income adjusted for non-cash items. The changes in working capital assets and liabilities were primarily driven by (i) an increase in deferred revenue of $68,441 primarily due to higher collections of ticket, suites, and sponsorship sales in advance of recognition, (ii) a higher increase in accrued and other liabilities of $39,964 primarily due to increased accruals for NBA luxury tax in the current year period, (iii) a lower increase in prepaid expenses and other assets of $33,982 primarily due to a lower increase in contract assets in the current year period primarily due to lower revenue recognized under the Company’s local media rights agreements, and (iv) a decrease in net related party receivables of $10,327 primarily due to the timing of collections related to the Company’s Sponsorship Sales and Service Representation Agreements. These changes were partially offset by a higher increase in accounts receivable, net of $39,559 primarily due to higher accounts receivable from MSG Networks related to unpaid amounts under the local media rights agreements.

Investing Activities

Net cash used in investing activities for the ~~nine~~three months ended ~~March~~September 3130, 2025 ~~decreased~~increased by $~~340~~685 to $51,~~349~~848 as compared to the prior year period primarily due to ~~lower~~higher purchases of investments in the current year period~~, partially offset by higher capital expenditures~~.

Financing Activities

Net cash used in financing activities for the ~~nine~~three months ended ~~March~~September 3130, 2025 ~~was~~decreased by $~~26,406~~392 ~~as compared~~ to ~~net cash provided by financing activities for the nine months ended March 31, 2024 of~~ $269,~~234.~~110 ~~This~~as ~~was~~compared ~~primarily due~~ to ~~additional borrowings under~~ the ~~Company’s credit facilities in the~~ prior year period ~~and,~~primarily due to alower ~~lesser extent, the impact of principal repayments under the Rangers NHL Advance Agreement in the current year period and higher~~ taxes paid in lieu of shares issued for equity-based compensation inand ~~the current year period. These were partially offset by~~ lower ~~repayments~~dividends ~~under~~paid ~~the Company’s credit facilities~~ in the current year period.

Seasonality of Our Business

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

Recent Accounting Pronouncements and Critical Accounting Policies

Recent Accounting Pronouncements

See Note 2 to the consolidated financial statements included in “Part I — Item 1. Financial Statements” of this Quarterly Report on Form 10-Q for discussion of recent accounting pronouncements.

Critical Accounting Policies

The following discussion has been included to provide the results of our annual impairment testing of goodwill and identifiable indefinite-lived intangible assets performed during the first quarter of fiscal year ~~2025~~2026. There have been no material changes to the Company’s critical accounting policies from those set forth in our ~~Annual~~2025 ~~Report on~~ Form 10-K ~~for the fiscal year ended June 30, 2024~~.

Goodwill

The carrying amount of goodwill as of ~~March~~September 3130, 2025 was $226,523. Goodwill is tested annually for impairment as of August 31st and at any time upon the occurrence of certain events or changes in circumstances. The Company performs its goodwill impairment test at the reporting unit level, which is the same as or one level below the operating segment level. The Company has one operating and reportable segment, and one reporting unit for goodwill impairment testing purposes.

The Company has the option to perform a qualitative assessment to determine if an impairment is more likely than not to have occurred. If the Company can support the conclusion that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company would not need to perform a quantitative impairment test for that reporting unit. If the Company cannot support such a conclusion or the Company does not elect to perform the qualitative assessment, quantitative assessment is performed by comparing the fair value of a reporting unit with its carrying amount, including goodwill. The estimates of the fair value of the Company’s reporting units are primarily determined using discounted cash flows and comparable market transactions. These valuations are based on estimates and assumptions including projected future cash flows, discount rates, determination of appropriate market comparables and the determination of whether a premium or discount should be applied to comparables. Significant judgments inherent in a discounted cash flow analysis include the selection of the appropriate discount rate, the estimate of the amount and timing of projected future cash flows and identification of appropriate continuing growth rate assumptions. The discount rates used in the analysis are intended to reflect the risk inherent in the projected future cash flows. The amount of an impairment loss is measured as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The Company elected to perform the qualitative assessment of impairment for the Company’s reporting unit for the fiscal year 2026 impairment test. These assessments considered factors such as:

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The Company elected to perform the qualitative assessment of impairment for the Company’s reporting unit for the fiscal year 2025 impairment test. These assessments considered factors such as:

•macroeconomic conditions;

•industry and market considerations;

•market capitalization;

•cost factors;

•overall financial performance of the reporting unit;

•other relevant company-specific factors such as changes in management, strategy or customers; and

•relevant reporting unit specific events such as changes in the carrying amount of net assets.

The Company performed its most recent annual impairment test of goodwill during the first quarter of fiscal year ~~2025~~2026, and there was no impairment of goodwill. Based on this impairment test, the Company concluded it was not more likely than not ~~that the fair value of the reporting unit was less than its carrying amount.~~

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that the fair value of the reporting unit was less than its carrying amount.

Identifiable Indefinite-Lived Intangible Assets

Identifiable indefinite-lived intangible assets are tested annually for impairment as of August 31st and at any time upon the occurrence of certain events or substantive changes in circumstances. The following table sets forth the amount of identifiable indefinite-lived intangible assets reported in the Company’s consolidated balance sheet as of ~~March~~September 3130, 2025:


Sports franchises	$	102,564
Photographic related rights	1,080
	$	103,644

The Company has the option to perform a qualitative assessment to determine if an impairment is more likely than not to have occurred. In the qualitative assessment, the Company must evaluate the totality of qualitative factors, including any recent fair value measurements, that impact whether an indefinite-lived intangible asset other than goodwill has a carrying amount that more likely than not exceeds its fair value. The Company must proceed to conducting a quantitative analysis, if the Company (i) determines that such an impairment is more likely than not to exist, or (ii) forgoes the qualitative assessment entirely. Under the quantitative assessment, the impairment test for identifiable indefinite-lived intangible assets consists of a comparison of the estimated fair value of the intangible asset with its carrying value. If the carrying value of the intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. For all periods presented, the Company elected to perform a qualitative assessment of impairment for the indefinite-lived intangible assets. These assessments considered the events and circumstances that could affect the significant inputs used to determine the fair value of the intangible asset. Examples of such events and circumstances include:

•cost factors;

•financial performance;

•legal, regulatory, contractual, business or other factors;

•other relevant company-specific factors such as changes in management, strategy or customers;

•industry and market considerations; and

•macroeconomic conditions.

The Company performed its most recent annual impairment test of identifiable indefinite-lived intangible assets during the first quarter of fiscal year ~~2025~~2026, and there were no impairments identified. Based on this impairment test, the Company concluded it was not more likely than not that the fair value of the indefinite-lived intangible assets was less than their carrying amount.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

There were no material changes to the disclosures regarding market risks in connection with our interest rate risk exposure. See Item 7A, “Quantitative and Qualitative Disclosures About Market Risk,” of our ~~Annual~~2025 ~~Report on~~ Form 10-K ~~for the fiscal year ended June 30, 2024~~.

Potential interest rate risk exposure:

We have potential interest rate risk exposure related to outstanding borrowings incurred under our credit facilities. Changes in interest rates may increase interest expense payments with respect to any borrowings incurred under the credit facilities.

Borrowings under our credit facilities incur interest, depending on our election, at a floating rate based upon SOFR plus a credit spread adjustment, the U.S. Federal Funds Rate or the U.S. Prime Rate, plus, in each case, a fixed spread. If appropriate, we may seek to reduce such exposure through the use of interest rate swaps or similar instruments. As of ~~March~~September 3130, 2025, we had a total of $267 million of borrowings outstanding under our credit facilities. The effect of a hypothetical 100 basis point increase in floating interest rates prevailing as of ~~March~~September 3130, 2025 and continuing for a full year would increase interest expense by approximately $2.7 million. See Note 12 to the consolidated financial statements included in “Part I — Item 1. Financial Statements” of this Quarterly Report on Form 10-Q for a discussion of the Knicks Credit Agreement, Rangers Credit Agreement, and Rangers NHL Advance Agreement.

Item 4. 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) of the Securities Exchange Act of 1934). Based on that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer concluded that as of ~~March~~September 3130, 2025 the Company’s disclosure controls and procedures were effective.

There were no changes in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Securities Exchange Act of 1934) during the quarter ended ~~March~~September 3130, 2025 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II—OTHER INFORMATION

Item 1. Legal Proceedings

Item 1A. Risk Factors

The risk factor set forth below should be read carefully in conjunction with the risk factors discussed in Part I, “Item 1A. Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended June 30, 2024, which could materially impact our business, financial condition and results of operations.

Local Media Rights Are a Significant Revenue Stream for Our Business. Decreases in Local Media Rights Revenue Have Had an Adverse Effect on our Business and Results of Operations, and the Effect of Future Reductions, Including from a Bankruptcy of MSG Networks, Could be Material.

Business conditions impacting our broadcasting partner, MSG Networks, including the work-out or bankruptcy of MSG Networks (as discussed below) and/or actions by the NBA or NHL or their national broadcast partners, have in the past adversely affected and could in the future materially adversely affect the revenue that can be derived from these media rights.

In October 2015, the Knicks and the Rangers entered into 20-year local media rights agreements with MSG Networks, a regional sports network and wholly-owned subsidiary of Sphere Entertainment. These agreements provide MSG Networks with exclusive local linear and digital rights to home and away games of the Knicks and the Rangers, as well as other team-related programming.

In recent years, certain regional sports networks have experienced significant financial difficulties. For example, in March 2023, Diamond Sports Group, an unconsolidated subsidiary of Sinclair Broadcasting Group Inc., which licensed and distributed sports content in a number of regional markets, filed for protection under Chapter 11 of the bankruptcy code. As a result, the majority of Diamond Sports Group’s media rights agreements were either rejected in connection with the bankruptcy proceedings or expired without renewal. For example, during its bankruptcy, Diamond Sports Group ended its media rights agreements with a number of NHL, NBA and MLB teams, and emerged from bankruptcy owning rights to 29 teams (compared to 42 teams prior to its bankruptcy).

MSG Networks was not able to refinance its credit facilities prior to their maturity in October 2024 and entered into a forbearance agreement with its lenders while pursuing a work-out of its indebtedness. On April 25, 2025, MSG Networks announced that it had reached an agreement among its lenders, the Knicks and the Rangers, and Sphere Entertainment to support certain proposed transactions to reduce and restructure its credit facilities (collectively, the “Proposed Transactions”). As part of this debt restructuring, the Knicks and the Rangers agreed to certain amendments to those local media rights agreements, including, effective as of January 1, 2025, fee reductions of 28% for the Knicks and 18% for the Rangers with no annual rights fee escalators. As proposed, the term of the media rights agreements would also be reduced to end after the 2028-29 seasons, subject to a right of first refusal in favor of MSG Networks. As a result of the proposed amendments, the Company expects that media rights fees will be approximately $1.1 million lower for the three months ended June 30, 2025 compared to the prior year period. Stated annual local media rights fees, subject to adjustments in certain circumstances, including if the Company does not make available a minimum number of games to MSG Networks in the year, after consideration of the media rights amendments contemplated in the Transaction Support Agreement are anticipated to be approximately $162.9 million and $139.2 million for the years ending June 30, 2025 and 2026, respectively. The Proposed Transactions, including the amendments to the media rights agreements, are subject to the execution of definitive documentation. See “Part I — Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Matters Affecting Comparability — Proposed Amendments to Media Rights Agreements” of this Quarterly Report on Form 10-Q for more information regarding the amendments to the local media rights agreements.

Although the parties have agreed to work together and use commercially reasonable and timely efforts to support, implement and finalize the Proposed Transactions, if the Proposed Transactions are not successfully implemented, MSG Networks could seek bankruptcy protection prior to the lenders exercising their rights under its credit facilities. MSG Networks may also seek bankruptcy protection if its business conditions deteriorate at a more rapid pace than it currently expects, including as a result of carriage disputes between MSG Networks and its distributors.

If MSG Networks were to discharge its media rights agreements with us as part of a bankruptcy proceeding, we would lose a significant recurring revenue stream, and would also lose the exposure provided by the MSG Networks broadcasting related to the Knicks and the Rangers, any of which could have a material negative effect on our business and results of operations. Although we would pursue alternative sources of distribution for home and away games of the Knicks and the Rangers, as well

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as other team-related programming, there can be no assurances as to the timing or success of such alternative sources of distribution, all of which would be subject to the approval of the applicable league.

In addition, we had an outstanding receivable balance of $30.1 million at March 31, 2025 from MSG Networks related to unpaid amounts under the media rights agreements. If MSG Networks were to experience a bankruptcy or insolvency event, some or all of this accounts receivable balance could be impaired, which may have a material adverse effect on our liquidity.

Financial difficulties by MSG Networks also may have negative implications under our credit facilities. For example, if MSG Networks were to experience a bankruptcy or insolvency event (as set forth in each of the Knicks Credit Agreement and Rangers Credit Agreement), we would be prevented, absent a cure or waiver, from making borrowings under our revolving credit facilities. Further, the Rangers Credit Agreement (as defined herein), which had no borrowings outstanding as of March 31, 2025, includes an event of default upon a bankruptcy or insolvency event with respect to a material media rights counterparty, including MSG Networks. See “— Economic and Business Relationship Risks — Certain of Our Subsidiaries Have Incurred Substantial Indebtedness, and the Occurrence of an Event of Default Under Our Subsidiaries’ Credit Facilities or Our Inability to Repay Such Indebtedness When Due Could Substantially Impair the Assets of Those Subsidiaries and Have a Negative Effect on Our Business” in our Annual Report on Form 10-K for the fiscal year ended June 30, 2024.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

As of ~~March~~September 3130, 2025, the Company had approximately $185 million remaining under the $525 million Class A Common Stock share repurchase program authorized by the Company’s Board of Directors on September 11, 2015. Under the authorization, shares of Class A Common Stock may be purchased from time to time in open market or private transactions, block trades or such other manner as the Company may determine, in accordance with applicable insider trading and other securities laws and regulations, with the timing and amount of purchases depending on market conditions and other factors. The Company has funded and expects to continue to fund stock repurchases, if any, through a combination of cash on hand, cash generated by operations and available borrowing capacity under its existing credit facilities. During the three months ended ~~March~~September 3130, 2025, the Company did not make any share repurchases under its share repurchase program.

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Item 6. Exhibits

(a)Index to Exhibits

EXHIBITNO.						DESCRIPTION
10.1						~~Employment~~Form ~~Agreement, dated as~~ of ~~January~~Restricted 6,Stock ~~2025,~~Units ~~between~~Agreement ~~Madison~~Under ~~Square Garden Sports Corp. and Victoria M. Mink (incorporated by reference to Exhibit 10.1 to~~ the ~~Company's~~2015 ~~Current~~Employee ~~Report~~Stock ~~on Form 8-K filed on January 6~~Plan, ~~2025)~~As Amended. †
10.2						Form of Performance Restricted Stock Units Agreement Under the 2015 Employee Stock Plan, As Amended. †
10.3						Form of Stock Options Agreement Under the 2015 Employee Stock Plan, As Amended. †
31.1						Certification by the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2						Certification by the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*						Certification by the Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*						Certification by the Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101						The following materials from Madison Square Garden Sports Corp. Quarterly Report on Form 10-Q for the quarter ended ~~March~~September 3130, 2025 formatted in Inline Extensible Business Reporting Language (iXBRL): (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						The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended ~~March~~September 3130, 2025 formatted in Inline XBRL and contained in Exhibit 101.

† This exhibit is a management contract or a compensatory plan or arrangement.

* Furnished herewith. These exhibits shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that Section. Such exhibits shall not be deemed incorporated into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on the ~~2nd~~31st day of ~~May~~October 2025.


Madison Square Garden Sports Corp.

By:	/S/ VICTORIA M. MINK
	Name:	Victoria M. Mink
	Title:	Executive Vice President, Chief Financial Officer and Treasurer

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