MADISON SQUARE GARDEN SPORTS CORP. REPORTS FISCAL 2025 THIRD QUARTER RESULTS

, /PRNewswire/ -- Madison Square Garden Sports Corp. (NYSE: MSGS) today reported financial results for the fiscal third quarter ended March 31, 2025. Fiscal 2025 third quarter operating results reflected growth in average per-game revenues, including for tickets, sponsorship and premium hospitality offerings, across a combined two fewer New York Knicks ("Knicks") and New York Rangers ("Rangers") games played at the Madison Square Garden Arena ("The Garden") as compared to the prior year quarter. In addition, fiscal 2025 third quarter operating results reflected the impact of expected reductions in local media rights fees as a result of proposed amendments to the Knicks' and Rangers' local media rights agreements with MSG Networks Inc. ("MSG Networks") (as announced on April 25, 2025 and discussed in further detail in the Other Matters section of this earnings release), as well as the impact of the Knicks' and Rangers' rosters for the 2024-25 seasons. In March, the Company launched its 2025-26 Knicks and Rangers season ticket renewal initiative, which has seen strong demand to date. Subsequent to the end of the fiscal 2025 third quarter, both teams concluded their regular seasons, with the Knicks currently competing in the NBA playoffs. For the fiscal 2025 third quarter, the Company generated revenues of $424.2 million, a decrease of $5.8 million, or 1%, as compared to the prior year period. In addition, the Company reported operating income of $32.3 million, a decrease of $47.4 million, or 59%, and adjusted operating income of $36.9 million, a decrease of $51.8 million, or 58%, both as compared to the prior year period.(1) Madison Square Garden Sports Corp. Executive Chairman and CEO James L. Dolan said, "Our third quarter results reflect growth in per-game revenues driven by continued robust demand for the Knicks and Rangers. And while the Company is now seeing the impact of the evolving landscape for local media rights, we remain as confident as ever in the value of owning marquee professional sports franchises." Financial Results for the Three and Nine Months Ended March 31, 2025 and 2024: Three Months Ended Nine Months Ended March 31, Change March 31, Change $ millions 2025 2024 $ % 2025 2024 $ % Revenues $ 424.2 $ 430.0 $ (5.8) (1) % $ 835.3 $ 799.9 $ 35.4 4 % Operating income $ 32.3 $ 79.7 $ (47.4) (59) % $ 37.4 $ 93.7 $ (56.4) (60) % Adjusted operating income(1) $ 36.9 $ 88.7 $ (51.8) (58) % $ 54.9 $ 115.7 $ (60.8) (53) % Note: Does not foot due to rounding 1. See page 4 of this earnings release for the definition of adjusted operating income (loss) included in the discussion of non-GAAP financial measures. Summary of Financial ResultsFor the fiscal 2025 third quarter, revenues of $424.2 million decreased $5.8 million, or 1%, as compared to the prior year period. The decrease was primarily due to lower local media rights fees and, to a lesser extent, lower food, beverage and merchandise sales, partially offset by higher sponsorship and signage revenues, suite revenues, revenues from league distributions and ticket-related revenue. The Knicks and Rangers played a combined two fewer regular season games at The Garden during the fiscal 2025 third quarter as compared to the prior year period. Local media rights fees decreased $18.6 million as compared to the prior year period, primarily due to a reduction in expected 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, which were announced on April 25, 2025 and are discussed in further detail in the Other Matters section of this earnings release. Food, beverage and merchandise sales decreased $2.5 million as compared to the prior year period, primarily due to lower average per-game revenue, lower online sales of merchandise and the Knicks and Rangers playing fewer games at The Garden during the fiscal 2025 third quarter. Merchandise sales in the fiscal 2024 third quarter included the positive impact of new Rangers' jersey launches. Sponsorship and signage revenues increased $8.9 million as compared to the prior year period, primarily due to higher net sales of existing sponsorship and signage inventory, partially offset by the Knicks and Rangers playing fewer games at The Garden during the fiscal 2025 third quarter. Suite revenues increased $3.4 million as compared to the prior year period, primarily due to higher net sales of suite products, partially offset by the Knicks and Rangers playing fewer games at The Garden during the fiscal 2025 third quarter. Revenues from league distributions increased $2.4 million as compared to the prior year period, primarily due to higher national media rights fees. Ticket-related revenues increased $0.5 million as compared to the prior year period, primarily due to higher average Knicks and Rangers per-game revenue, partially offset by the Knicks and Rangers playing fewer games at The Garden during the fiscal 2025 third quarter. Direct operating expenses of $316.3 million increased $43.3 million, or 16%, as compared to the prior year period. This increase was primarily driven by higher net provisions for league revenue sharing expense (net of escrow and excluding playoffs) and NBA luxury tax of $33.8 million and higher team personnel compensation of $14.7 million, both as compared to the prior year period. These increases were partially offset by lower net (credits) provisions for certain team personnel transactions of $2.8 million, lower operating lease costs under the arena license agreements with Madison Square Garden Entertainment Corp. ("MSG Entertainment") of $2.0 million, as well as other cost decreases. Selling, general and administrative expenses of $74.7 million decreased $1.7 million, or 2%, as compared to the prior year period. This decrease was primarily driven by (i) lower employee compensation and related benefits of $12.4 million, mainly due to executive management transition costs recognized in the prior year period, partially offset by (ii) higher professional fees of $7.6 million, (iii) higher costs related to the Company's services agreement with MSG Entertainment of $1.8 million, and (iv) higher operating lease costs of $1.4 million. Operating income of $32.3 million decreased $47.4 million, or 59%, and adjusted operating income of $36.9 million decreased $51.8 million, or 58%, both as compared to the prior year period, primarily due to the increase in direct operating expenses and, to a lesser extent, the decrease in revenues. Other MattersOn April 24, 2025, New York Knicks, LLC and New York Rangers, LLC entered into a Transaction Support Agreement (the "Transaction Support Agreement") with Sphere Entertainment Co., MSG Networks and certain subsidiaries of MSG Networks, pursuant to which the teams agreed to support certain proposed transactions to reduce and restructure MSG Networks' debt (collectively, the "Proposed Transactions"). As part of this debt restructuring, the teams agreed to certain amendments to the Knicks' and Rangers' local media rights agreements, effective as of January 1, 2025, as follows: (i) 28% and 18% reductions in annual rights fees for the Knicks and Rangers, respectively; (ii) an elimination of annual rights fee escalators; and (iii) a change to the contract expiration dates to the end of the 2028-29 seasons, subject to a right of first refusal in favor of MSG Networks. The Transaction Support Agreement also contemplates the issuance by MSG Networks of penny warrants to the Company exercisable for 19.9% of the equity interests in MSG Networks. The Proposed Transactions, including the proposed amendments to the local media rights agreements, are subject to the execution of definitive documentation, which is expected to be completed on or before June 27, 2025. About Madison Square Garden Sports Corp.Madison Square Garden Sports Corp. (MSG Sports) is a leading professional sports company, with a collection of assets that includes the New York Knicks (NBA) and the New York Rangers (NHL), as well as two development league teams – the Westchester Knicks (NBAGL) and the Hartford Wolf Pack (AHL). MSG Sports also operates a professional sports team performance center – the MSG Training Center in Greenburgh, NY. More information is available at www.msgsports.com. Non-GAAP Financial MeasuresWe define adjusted operating income (loss), which is a non-GAAP financial measure, as 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. Because it is based upon operating income (loss), adjusted operating income (loss) also excludes interest expense (including cash interest expense) and other non-operating income and expense items. We believe that the exclusion of share-based compensation expense or benefit allows investors to better track the performance of our business without regard to the settlement of an obligation that is not expected to be made in cash. In addition, we believe 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 U.S. generally accepted accounting principles ("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). We believe adjusted operating income (loss) is an appropriate measure for evaluating the operating performance of our Company. Adjusted operating income (loss) and similar measures with similar titles are common performance measures used by investors and analysts to analyze our performance. Internally, we use revenues and adjusted operating income (loss) as the most important indicators of our business performance, and evaluate 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. For a reconciliation of operating income (loss) to adjusted operating income (loss), please see page 5 of this earnings release. Forward-Looking StatementsThis press release may contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties, and that actual results, developments and events may differ materially from those in the forward-looking statements as a result of various factors, including financial community and rating agency perceptions of the Company and its business, operations, financial condition and the industry in which it operates, and the factors described in the Company's filings with the Securities and Exchange Commission, including the sections titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" contained therein. The Company disclaims any obligation to update any forward-looking statements contained herein. Contacts: Ari Danes, CFA Investor Relations and Financial Communications (212) 465-6072 Justin Blaber Financial Communications (212) 465-6109 Grace Kaminer Investor Relations (212) 631-5076 MADISON SQUARE GARDEN SPORTS CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) Three Months Ended Nine Months Ended March 31, March 31, 2025 2024 2025 2024 Revenues $ 424,197 $ 429,954 $ 835,263 $ 799,898 Direct operating expenses 316,335 273,026 600,299 508,771 Selling, general and administrative expenses 74,697 76,398 195,184 195,020 Depreciation and amortization 823 788 2,396 2,372 Operating income 32,342 79,742 37,384 93,735 Other income (expense): Interest income 1,051 477 2,605 1,549 Interest expense (5,020) (6,921) (16,662) (21,269) Miscellaneous expense, net (5,743) (1,403) (13,478) (11,077) Income before income taxes 22,630 71,895 9,849 62,938 Income tax expense (36,857) (34,018) (30,507) (29,658) Net (loss) income $ (14,227) $ 37,877 $ (20,658) $ 33,280 Basic (loss) earnings per common share attributable to Madison Square Garden Sports Corp.'s stockholders $ (0.59) $ 1.58 $ (0.86) $ 1.39 Diluted (loss) earnings per common share attributable to Madison Square Garden Sports Corp.'s stockholders $ (0.59) $ 1.57 $ (0.86) $ 1.38 Basic weighted-average number of common shares outstanding 24,103 24,028 24,084 24,005 Diluted weighted-average number of common shares outstanding 24,103 24,100 24,084 24,076 MADISON SQUARE GARDEN SPORTS CORP.ADJUSTMENTS TO RECONCILE OPERATING INCOME TOADJUSTED OPERATING INCOME(In thousands)(Unaudited) The following is a description of the adjustments to operating income in arriving at adjusted operating income as described in this earnings release: Depreciation and amortization. This adjustment eliminates depreciation, amortization and impairments of property and equipment, goodwill and other intangible assets in all periods. Share-based compensation. This adjustment eliminates the compensation expense related to restricted stock units and stock options granted under the Company's employee stock plan and non-employee director plan in all periods. Remeasurement of deferred compensation plan liabilities. This adjustment eliminates the impact of gains and losses related to the remeasurement of liabilities under the Company's executive deferred compensation plan. Three Months Ended Nine Months Ended March 31, March 31, 2025 2024 2025 2024 Operating income $ 32,342 $ 79,742 $ 37,384 $ 93,735 Depreciation and amortization 823 788 2,396 2,372 Share-based compensation 3,900 7,350 14,159 18,069 Remeasurement of deferred compensation plan liabilities (134) 821 973 1,556 Adjusted operating income $ 36,931 $ 88,701 $ 54,912 $ 115,732 MADISON SQUARE GARDEN SPORTS CORP. CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) (Unaudited) March 31,2025 June 30,2024 ASSETS Current Assets: Cash and cash equivalents $ 96,536 $ 89,136 Restricted cash 8,500 5,771 Accounts receivable, net of allowance for doubtful accounts of $0 as of March 31, 2025 and June 30, 2024 110,044 33,781 Net related party receivables 29,149 32,255 Prepaid expenses 35,297 30,956 Other current assets 39,761 25,043 Total current assets 319,287 216,942 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 Right-of-use lease assets 763,469 694,566 Indefinite-lived intangible assets 103,644 103,644 Goodwill 226,523 226,523 Investments 53,425 62,543 Other assets 8,743 13,533 Total assets $ 1,504,498 $ 1,346,292 MADISON SQUARE GARDEN SPORTS CORP. CONSOLIDATED BALANCE SHEETS (continued) (In thousands, except per share data) (Unaudited) March 31,2025 June 30,2024 LIABILITIES AND EQUITY Current Liabilities: Accounts payable $ 6,948 $ 9,900 Net related party payables 6,530 6,718 Debt 24,000 30,000 Accrued liabilities: Employee related costs 138,962 133,930 League-related accruals 170,159 120,876 Other accrued liabilities 53,652 21,613 Operating lease liabilities, current 51,015 50,267 Deferred revenue 165,923 148,678 Total current liabilities 617,189 521,982 Long-term debt 267,000 275,000 Operating lease liabilities, noncurrent 848,534 749,952 Defined benefit obligations 944 4,103 Other employee related costs 47,257 43,493 Deferred tax liabilities, net 6,305 16,925 Deferred revenue, noncurrent 718 1,147 Total liabilities 1,787,947 1,612,602 Commitments and contingencies 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 204 204 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 45 45 Preferred stock, par value $0.01, 15,000 shares authorized; none outstanding as of March 31, 2025 and June 30, 2024 — — Additional paid-in capital 11,855 19,079 Treasury stock, at cost, 961 and 1,025 shares as of March 31, 2025 and June 30, 2024, respectively (158,826) (169,547) Accumulated deficit (135,816) (115,139) Accumulated other comprehensive loss (911) (952) Total equity (283,449) (266,310) Total liabilities and equity $ 1,504,498 $ 1,346,292 MADISON SQUARE GARDEN SPORTS CORP. SELECTED CASH FLOW INFORMATION (In thousands) (Unaudited) Nine Months Ended March 31, 2025 2024 Net cash provided by (used in) operating activities $ 41,884 $ (16,220) Net cash used in investing activities (5,349) (5,689) Net cash (used in) provided by financing activities (26,406) 26,234 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 SOURCE Madison Square Garden Sports Corp. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

MADISON SQUARE GARDEN SPORTS CORP. REPORTS FISCAL 2025 THIRD QUARTER RESULTS

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