Madison Square Garden Sports Corp.
For the period ended Dec 31, 2025. Filed Feb 6, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Dec 31, 2025 · Filed Feb 6, 2026
MSGS$384.39-1.1%Stored close · as of Oct 26, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-10-31.
0001628280-25-047671
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-12-31; filed 2026-02-06.
0001628280-26-006075
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 132 previous paragraphs and 156 current paragraphs.
98 unchanged; 25 reworded; 32 added; 8 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 6 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (32)
Current report
Business Overview. This section provides a general description of our business, as well as other matters that we believe are important in understanding our results of operations and financial condition and in anticipating future trends.
Current report
Business Overview
Current report
The Company owns and operates a portfolio of assets featuring some of the most recognized teams in all of sports, including the Knicks of the NBA and the Rangers of the NHL. Both the Knicks and the Rangers play their home games at 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. The Company also operates a professional sports team performance center — the Madison Square Garden Training Center in Greenburgh, NY.
Current report
General
Current report
Our operating results are largely dependent on the continued popularity and/or on-court or on-ice competitiveness of our Knicks and Rangers teams, which have a direct effect on ticket sales for the teams’ home games and are each team’s largest single source of revenue. As with other sports teams, the competitive positions of our sports teams depend primarily on our ability to develop, obtain and retain talented players, for which we compete with other professional sports teams. A significant factor in our ability to attract and retain talented players is player compensation. The Company’s operating results reflect the impact of high costs for player salaries (including NBA luxury tax, if any) and salaries of non-player team personnel. In addition, we have incurred significant charges for costs associated with transactions relating to players on our sports teams for season-ending and career-ending injuries and for trades, waivers and contract terminations of players and other team personnel, including team executives. Waiver and termination costs reflect our efforts to improve the competitiveness of our sports teams. These transactions can result in significant charges as the Company recognizes the estimated ultimate costs of these events in the period in which they occur, although amounts due to these individuals are generally paid over their remaining contract terms. We expect to continue to pursue opportunities to improve the overall quality of our sports teams and our efforts may result in continued significant expenses and charges. Such expenses and charges may result in future operating losses although it is not possible to predict their timing or amount. Our performance has been, and may in the future be, impacted by work stoppages. See “Part I — Item 1A. Risk Factors — Economic and Business Relationship Risks —Labor Matters May Have a Material Negative Effect on Our Business and Results of Operations.” in our 2025 Form 10-K.
Current report
In addition, our future performance is also dependent on general economic conditions, in particular those in the New York City metropolitan area, and the effect of these conditions on our customers. An economic downturn could adversely affect our business and results of operations as it may lead to lower demand for suite licenses and tickets to the games of our sports teams, which would also negatively affect merchandise and concession sales, as well as decrease levels of sponsorship and venue signage revenues.
Current report
Knicks and Rangers Home Games at The Garden
Current report
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 and six months ended December 31, 2025, the Knicks and the Rangers played a combined four additional home games at The Garden during the current year periods as compared to the prior year periods. The Knicks played 20 games at The Garden during the three and six months ended December 31, 2025 as compared to 17 games during the prior year periods. The Rangers played 19 games at The Garden during the three months ended December 31, 2025 and 21 games at The Garden during the six months ended December 31, 2025 as compared to 18 and 20 games, respectively, during the prior year periods.
Current report
Revenues increased $45,665, or 13%, to $403,424 for thethree months ended December 31, 2025 as compared to the prior year period. Revenues increased$31,812, or 8%, to $442,878 for the six months ended December 31, 2025 as compared to the prior year period.
Current report
The increases in pre/regular season ticket-related revenues for the three and six months ended December 31, 2025 were primarily due to the Knicks and the Rangers playing a combined four additional home games at The Garden during the current year periods as compared to the prior year periods and higher average per-game revenue.
Current report
The increases in suite revenues for the three and six months ended December 31, 2025 were primarily due to higher net sales of suite products and the Knicks and the Rangers playing a combined four additional home games at The Garden during the current year periods as compared to the prior year periods.
Current report
The increases in sponsorship and signage revenues for the three and six months ended December 31, 2025 were primarily due to higher net sales of existing sponsorship and signage inventory and the Knicks and the Rangers playing a combined four additional home games at The Garden during the current year periods as compared to the prior year periods.
Current report
The increases in pre/regular season food, beverage and merchandise sales for the three and six months ended December 31, 2025 were primarily due to higher online sales of merchandise, the Knicks and the Rangers playing a combined four additional home games at The Garden during the current year periods as compared to the prior year periods, and higher average per-game revenue. Merchandise sales for the three and six months ended December 31, 2025 included the positive impact of new Rangers’ jersey launches.
Current report
Direct operating expenses increased $35,636, or 13%, to $311,389 for thethree months ended December 31, 2025 as compared to the prior year period. Direct operating expenses increased$35,704, or 13%, for the six months ended December 31, 2025 as compared to the prior year period.
Current report
The increases in team personnel compensation for the three and six months ended December 31, 2025 were primarily due to changes in the Knicks and the Rangers rosters.
Current report
The actual net provisions for league revenue sharing expense (net of escrow and excluding playoffs) for the 2025-26 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.
Current report
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 increases in other team operating expenses for the three and six months ended December 31, 2025 were primarily due to higher average per-game expenses and the Knicks and the Rangers playing a combined four additional home games at The Garden during the current year periods as compared to the prior year periods.
Current report
The increases in operating lease costs associated with the Knicks and the Rangers playing home games at The Garden for the three and six months ended December 31, 2025 were a result of the Knicks and the Rangers playing a combined four additional home games at The Garden during the current year periods as compared to the prior year periods.
Current report
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) $20,185 and $21,064 of expense paid in cash for the three and six months ended December 31, 2025, respectively, and $17,447 and $18,301 of expense paid in cash for the three and six months ended December 31, 2024, respectively, and (ii) a non-cash expense of $9,896 and $10,327 for the three and six months ended December 31, 2025, respectively, and $9,334 and $9,791 for the three and six months ended December 31, 2024, respectively.
Current report
The increases in pre/regular season expense associated with merchandise sales for the three and six months ended December 31, 2025 were primarily due to higher online sales of merchandise, the Knicks and the Rangers playing a combined four additional home games at The Garden during the current year periods as compared to the prior year periods, and higher average per-game revenue.
Current report
Selling, general and administrative expenses for the three months ended December 31, 2025 increased $1,165, or 2%, to $69,065 as compared to the prior year period driven by (i) higher employee compensation and related benefits of $2,096, (ii) higher costs related to the Services Agreement of $1,424, (iii) higher sales and marketing costs of $1,227, and (iv) higher other general and administrative expenses, partially offset by the timing of lower operating lease costs of $2,240, and lower professional fees of $2,070.
Current report
Operating income (loss)
Current report
Operating income for the three months ended December 31, 2025 increased $8,865, or 67%, to $22,180 as compared to the prior year period primarily due to higher revenues, partially offset by higher direct operating expenses and, to a lesser extent, higher selling, general and administrative expenses.
Current report
Operating income (loss) for the six months ended December 31, 2025 decreased $10,287 to an operating loss of $5,245 as compared to the prior year period driven by higher direct operating expenses and, to a lesser extent, higher selling, general and administrative expenses, partially offset by higher revenues.
Current report
Interest income for the three months ended December 31, 2025 decreased $194, or 28%, to $496 as compared to the prior year period.
Current report
Interest income for the six months ended December 31, 2025 decreased $480, or 31%, to $1,074 as compared to the prior year period.
Current report
Interest expense for the three months ended December 31, 2025 increased $623, or 11%, to $6,210 as compared to the prior year period.
Current report
Interest expense for the six months ended December 31, 2025 increased $159, or 1%, to $11,801 as compared to the prior year period.
Current report
Miscellaneous (expense) income, net
Current report
Adjusted operating income (loss)
Current report
For the six months ended December 31, 2025, adjusted operating income decreased $9,114, or 51%, to $8,867 as compared to the prior year period. The decrease in adjusted operating income was primarily due to higher direct operating expenses and, to a lesser extent, higher selling, general and administrative expenses, partially offset by higher revenues.
Current report
On January 5, 2026, the Company made a principal repayment of $7,500 under the Rangers NHL Advance Agreement and on February 3, 2026, the Company made a principal repayment of $25,000 under the Knicks Revolving Credit Facility.
Removed paragraphs (8)
Previous report
Revenues decreased $13,853, or 26%, to $39,454 for thethree months ended September 30, 2025 as compared to the prior year period.
Previous report
Direct operating expenses increased $68, or 1%, to $8,279 for thethree months ended September 30, 2025 as compared to the prior year period.
Previous report
Operating loss
Previous report
Operating loss for the three months ended September 30, 2025 increased $19,152 to $27,425 as compared to the prior year period primarily due to lower revenues and higher selling, general and administrative expenses.
Previous report
Interest income for the three months ended September 30, 2025 decreased $286, or 33%, to $578 as compared to the prior year period primarily due to lower average interest rates and lower average cash balances in the current year period.
Previous report
Interest expense for the three months ended September 30, 2025 decreased $464, or 8%, to $5,591 as compared to the prior year period primarily due to lower average interest rates and lower average borrowings under the Knicks Revolving Credit Facility in the current year period, partially offset by higher other interest expense.
Previous report
Miscellaneous income (expense), net
Previous report
Adjusted operating loss
Reworded paragraphs (25)
Previous wording
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:
Current wording
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 ending 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:
Previous wording
Results of Operations. This section provides an analysis of our unaudited results of operations for the three months ended September 30, 2025 compared to the three months ended September 30, 2024.
Current wording
Results of Operations. This section provides an analysis of our unaudited results of operations for the three and six months ended December 31, 2025 compared to the three and six months ended December 31, 2024.
Previous wording
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 three months ended September 30, 2025 compared to the three months ended September 30, 2024, and (iii) certain contractual obligations.
Current wording
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 six months ended December 31, 2025 compared to the six months ended December 31, 2024, and (iii) certain contractual obligations.
Previous wording
As a result of the amendments to the media rights agreements, media rights fees revenues for the three months ended September 30, 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.
Current wording
As a result of the amendments to the media rights agreements, media rights fees revenues for the three and six months ended December 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.
Previous wording
Comparison of the three months ended September 30, 2025 versus the three months ended September 30, 2024
Current wording
Comparison of the three and six months ended December 31, 2025 versus the three and six months ended December 31, 2024
Previous wording
The net decreasewas attributable to the following:
Current wording
The net increases were attributable to the following:
Previous wording
The decrease in revenues from league distributions for the three months ended September 30, 2025 was primarily due to a decrease in certain league distributions unrelated to national media rights fees.
Current wording
The increases in revenues from league distributions for the three and six months ended December 31, 2025 were primarily due to increased rights fees under the NBA’s new national media rights agreements, which began with the 2025-26 NBA regular season, in the current year periods. In addition, for the six months ended December 31, 2025, the increase was partially offset by a decrease in certain league distributions unrelated to national media rights fees.
Previous wording
The decrease in revenues from local media rights fees for the three months ended September 30, 2025 was primarily due to reduced local media rights fees as a result of amendments to the Knicks’ and Rangers’ local media rights agreements with MSG Networks entered into in the fourth quarter of fiscal year 2025, and to a lesser extent, a reduction in rights fees due to a decrease in the number of games exclusively available to MSG Networks during the current fiscal year as compared to the prior fiscal year. 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.
Current wording
The decreases in revenues from local media rights fees for the three and six months ended December 31, 2025 were primarily due to reduced local media rights fees as a result of amendments to the Knicks’ and Rangers’ local media rights agreements with MSG Networks entered into in the fourth quarter of fiscal year 2025, and, to a lesser extent, a reduction in rights fees due to a decrease in the number of games exclusively available to MSG Networks during the current fiscal year as compared to the prior fiscal year. 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 fiscal 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.
Previous wording
The net increase was attributable to the following:
Current wording
The net increases were attributable to the following:
Previous wording
The decrease in net provisions for league revenue sharing expense (net of escrow and excluding playoffs) and NBA luxury tax for the three months ended September 30, 2025 was due to the net impact of adjustments to prior seasons’ revenue sharing expense (net of escrow).
Current wording
The increases in net provisions for league revenue sharing expense (net of escrow and excluding playoffs) and NBA luxury tax for the three and six months ended December 31, 2025 were primarily due to higher provisions for league revenue sharing expense (net of escrow and excluding playoffs) and higher NBA luxury tax expense. In addition, for the six months ended December 31, 2025, the increase was partially offset by the net impact of adjustments to prior seasons’ revenue sharing expense (net of escrow).
Previous wording
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.
Current wording
Net provisions for certain team personnel transactions were as follows:
Previous wording
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.
Current wording
Selling, general and administrative expenses primarily consist of (i) administrative costs, including compensation, costs under the Services Agreement with MSG Entertainment (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.
Previous wording
Selling, 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.
Current wording
Selling, general and administrative expenses for the six months ended December 31, 2025 increased $6,367, or 5%, to $126,854 as compared to the prior year period driven by (i) higher employee compensation and related benefits of $3,103, (ii) higher costs related to the Services Agreement of $3,038, (iii) higher sales and marketing costs of $1,389, and (iv) higher other general and administrative expenses, partially offset by lower professional fees of $1,982.
Previous wording
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.
Current wording
Miscellaneous (expense) income, net for the six months ended December 31, 2025 reflected net income of $13,579 and miscellaneous (expense) income, net for the six months ended December 31, 2024 reflected net expense of $7,735. The increase in miscellaneous (expense) income, net relates to changes in fair value in the Company’s investments.
Previous wording
Changes 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
Current wording
Changes 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 Failure to Comply With These Regulations May Have a Material Negative Effect on Our Business and Results of Operations” in our 2025 Form 10-K.
Previous wording
The following are the reconciliations of operating loss to adjusted operating loss for the three months ended September 30, 2025 and 2024:
Current wording
The following are the reconciliations of operating income (loss) to adjusted operating income for the three and six months ended December 31, 2025 and 2024:
Previous wording
For the three months ended September 30, 2025, adjusted operating loss increased $18,549 to $20,807 as compared to the prior year period. The increase in adjusted operating loss was primarily due to lower revenues and higher selling, general and administrative expenses.
Current wording
For the three months ended December 31, 2025, adjusted operating income increased $9,435, or 47%, to $29,674 as compared to the prior year period. The increase in adjusted operating income was primarily due to higher revenues, partially offset by higher direct operating expenses.
Previous wording
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).
Current wording
Our primary sources of liquidity are cash and cash equivalents, cash flow from operations and available borrowing capacity under our credit facilities. On November 6, 2025, the Company amended and extended the 2021 Knicks Credit Agreement and the 2021 Rangers Credit Agreement. 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 2025 Knicks Credit Agreement, the 2025 Rangers Credit Agreement, and the Rangers NHL Advance Agreement (each as defined therein).
Previous wording
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.
Current wording
As of December 31, 2025, we had$81,302 in Cash and cash equivalents. In addition, as of December 31, 2025, the Company’s deferred revenue obligations were $205,141, net of billed, but not yet collected deferred revenue. This balance is primarily comprised of obligations in connection with tickets and suites.
Previous wording
We believe we have sufficient liquidity, including approximately $48,634 in Cash and cash equivalents as of September 30, 2025, along with $258,000 of additional available borrowing capacity under existing credit facilities (as of September 30, 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 September 30, 2025. See “Item 1A. Risk Factors — 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 2025 Form 10-K.
Current wording
We believe we have sufficient liquidity, including approximately $81,302 in Cash and cash equivalents as of December 31, 2025, along with $408,000 of additional available borrowing capacity under existing credit facilities (as of December 31, 2025), to fund our operations and satisfy any obligations for the foreseeable future.
Previous wording
The following table summarizes the Company’s cash flow activities for the three months ended September 30, 2025 and 2024:
Current wording
The following table summarizes the Company’s cash flow activities for the six months ended December 31, 2025 and 2024:
Previous wording
Net cash used in operating activities for the three months ended September 30, 2025 increased by $58,796 to $84,954 as compared to the prior year period. The 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.
Current wording
Net cash used in operating activities for the six months ended December 31, 2025 was $52,509 as compared to net cash provided by operating activities in the prior year period of $35,621. This change was primarily due to changes in working capital assets and liabilities and the change in net loss adjusted for non-cash items. The changes in working capital assets and liabilities were primarily driven by (i) a lower increase in deferred revenue of $33,994 primarily due to the timing of recognition of ticket-related and sponsorship and signage revenues, as well as the impact of lower revenues from local media rights fees, including the impact of amendments to the media rights agreements, (ii) an increase in net related party receivables of $29,054 primarily due to the timing of collections related to the Company’s Arena License Agreements and sponsorship sales and service representation agreements, (iii) a higher increase in prepaid expenses and other assets of $23,205 primarily due to higher prepayments related to team personnel compensation and income taxes in the current year period and (iv) a higher increase in accounts receivable, net, of $18,715 primarily due to the lack of receipts related to NBA luxury tax in the current year period and the timing of collections of sponsorship sales in the current year period. These changes were partially offset by a lower decrease in accrued and other liabilities of $14,022 primarily due to higher accruals for employee compensation in the current year period, partially offset by the impact of NBA luxury tax payments in the current year period.
Previous wording
Net cash used in investing activities for the three months ended September 30, 2025 increased by $685 to $1,848 as compared to the prior year period primarily due to higher purchases of investments in the current year period.
Current wording
Net cash used in investing activities for the six months ended December 31, 2025 increased by $441 to $2,743 as compared to the prior year period primarily due to higher capital expenditures and higher purchases of investments in the current year period.
Previous wording
Net cash used in financing activities for the three months ended September 30, 2025 decreased by $392 to $9,110 as compared to the prior year period primarily due to lower taxes paid in lieu of shares issued for equity-based compensation and lower dividends paid in the current year period.
Current wording
Net cash used in financing activities for the six months ended December 31, 2025 increased by $4,261 to $16,634 as compared to the prior year period primarily due to payments for financing costs in the current year period, partially offset by lower taxes paid in lieu of shares issued for equity-based compensation in the current year period.
Previous wording
Identifiable indefinite-lived intangible assets are tested annually for impairment as of August 31 st 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 September 30, 2025:
Current wording
Identifiable indefinite-lived intangible assets are tested annually for impairment as of August 31 st 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 accompanying consolidated balance sheet as of December 31, 2025:
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Miscellaneous (expense) income, net for the three months ended December 31, 2025 and 2024 reflected net expense of $1,506 and $6,609, respectively. The decrease in miscellaneous (expense) income, net relates to changes in fair value in the Company’s investments.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Failure to Comply With These Regulations May Have a Material Negative Effect on Our Business and Results of Operations” in our 2025 Form 10-K.