MSG Knickerbockers Corp.
For the period ended Sep 30, 2026. Filed Nov 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.
Sep 30, 2026 · Filed Nov 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 2026-03-31; filed 2026-05-08.
0001628280-26-032888
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-06.
0001628280-26-071322
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 162 previous paragraphs and 140 current paragraphs.
73 unchanged; 49 reworded; 18 added; 38 removed; 2 previous and 0 current paragraphs rearranged.
Tables are not compared: 8 previous and 7 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 (18)
Current report
•the tax-free treatment of the Rangers Distribution;
Current report
•our ability to achieve the intended benefits of the Rangers Distribution;
Current report
•the performance by the Company and MSG Rangers of their obligations under transition services and other agreements entered into in connection with the Rangers Distribution; and
Current report
Spin-off Transaction
Current report
On October 26, 2026 (the “Distribution Date”) the Company distributed 100% of the outstanding common stock of MSG Rangers Corp. to its stockholders in the Rangers Distribution. MSG Rangers owns the New York Rangers business previously owned and operated by the Company. In the Distribution, stockholders of the Company received (a) one share of MSG Rangers’ Class A common stock, par value $0.01 per share, for every two shares of the Company’s Class A common stock, par value $0.01 per share, held of record as of the close of business, New York City time, on October 20, 2026 (the “Record Date”), and (b) one share of MSG Rangers’ Class B common stock, par value $0.01 per share, for every two shares of the Company’s Class B common stock, par value $0.01 per share, held of record as of the close of business, New York City time, on the Record Date.
Current report
The accompanying unaudited consolidated interim financial statements include the financial results of the Company’s Rangers business in continuing operations for all periods presented. Beginning with the Company’s Quarterly Report on Form 10-Q for the quarterly period ending December 31, 2026, the historical financial results of the Rangers business through the Distribution Date will be presented as discontinued operations under U.S. generally accepted accounting principles (“GAAP”) for all periods presented.
Current report
Revenues increased $6,035, or 15%, to $45,489 for the three months ended September 30, 2026 as compared to the prior year period.
Current report
The increase in pre/regular season food, beverage and merchandise sales for the three months ended September 30, 2026 was primarily due to higher Knicks merchandise revenues driven by ongoing demand from the team winning the 2026 NBA Championship.
Current report
Direct operating expenses increased $545, or 7%, to $8,824 for the three months ended September 30, 2026 as compared to the prior year period.
Current report
The increase in pre/regular season expense associated with merchandise sales for the three months ended September 30, 2026 was primarily due to higher Knicks merchandise revenues driven by the team winning the 2026 NBA Championship.
Current report
The increase in team personnel compensation for the three months ended September 30, 2026 was primarily due to the timing of the start of the 2026-27 NHL regular season as compared to the 2025-26 NHL regular season.
Current report
Operating loss
Current report
Operating loss for the three months ended September 30, 2026 decreased $1,968, or 7%, to $25,457 as compared to the prior year period primarily due to higher revenues, partially offset by higher selling, general and administrative expenses.
Current report
Interest income for the three months ended September 30, 2026 decreased $105, or 18%, to $473 as compared to the prior year period.
Current report
On October 22, 2026, the Company borrowed an additional $30,000 under the Knicks Revolving Credit Facility. In addition, in connection with the Rangers Distribution, in October 2026, the Company incurred additional one-time costs of approximately $20,000 for employee awards and financial advisory fees.
Current report
In addition, prior to the Rangers Distribution, amounts that we collected for tickets, suites and sponsorship sales in advance were recorded as deferred revenue and were recognized as revenues when earned for both accounting and tax purposes. In connection with the Rangers Distribution, the tax recognition by the Company for certain of these deferred revenues will be accelerated to the Distribution Date, rather than recognized over the course of one year. The Company will not be reimbursed by MSG Rangers for such taxes associated with collection of Rangers deferred revenue.
Current report
Recently Issued Accounting Pronouncements
Current report
Critical Accounting Estimates
Removed paragraphs (38)
Previous report
•whether or not we pursue and complete the Rangers Distribution and, if so, its impact on our business, financial condition and results of operations; and
Previous report
Amendments to Local Telecast Rights Agreements
Previous report
On June 27, 2025, the local telecast 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:
Previous report
•New York Knicks:
Previous report
◦a modification to the annual rights fee to effect a 28% reduction as of January 1, 2025;
Previous report
◦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
Previous report
•New York Rangers:
Previous report
◦a modification to the annual rights fee to effect an 18% reduction as of January 1, 2025;
Previous report
◦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.
Previous report
Concurrent with the amendments to the local telecast rights agreements, MSG Networks issued penny warrants to the Company exercisable for 19.9% of the equity interests in MSG Networks.
Previous report
As a result of the amendments to the local telecast rights agreements, local telecast rights fees revenues for the three and nine months ended March 31, 2026 and 2025 have been recorded at the applicable reduced rate described above. The Company also expects to record local telecast rights fees reflecting the reduced rates described above in future periods.
Previous report
Knicks and Rangers Home Games at The Garden
Previous 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 months ended March 31, 2026, the Knicks and the Rangers played a combined five fewer home games at The Garden during the current year period as compared to the prior year period. For the nine months ended March 31, 2026, the Knicks and the Rangers played a combined one fewer home game at The Garden during the current year period as compared to the prior year period. The Knicks played 19 games at The Garden during the three months ended March 31, 2026 and 39 games at The Garden during the nine months ended March 31, 2026 as compared to 23 and 40 games, respectively, during the prior year periods. As a result of the NBA Cup, the Knicks will play 43 pre/regular season home games at The Garden during the 25-26 season as compared to 44 pre/regular season home games during the 24-25 season. The Rangers played 19 games at The Garden during the three months ended March 31, 2026 and 40 games at The Garden during the nine months ended March 31, 2026 as compared to 20 and 40 games, respectively, during the prior year periods.
Previous report
Revenues increased $8,002, or 2%, to $432,199 for thethree months ended March 31, 2026 as compared to the prior year period. Revenues increased$39,814, or 5%, to $875,077 for the nine months ended March 31, 2026 as compared to the prior year period.
Previous report
The increase in suite revenues for the three months ended March 31, 2026 was primarily due to higher net sales of suite products, offset by the Knicks and the Rangers playing a combined five fewer 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, 2026 was primarily due to higher net sales of suite products.
Previous report
The decrease in pre/regular season ticket-related revenues for the three months ended March 31, 2026 was primarily due to the Knicks and the Rangers playing a combined five fewer home games at The Garden during the current year period as compared to the prior year period, partially offset by higher average per-game revenue. The increase in pre/regular season ticket-related revenues for the nine months ended March 31, 2026 was primarily due to higher average per-game revenue, partially offset by the Knicks and the Rangers playing a combined one fewer home game during the current year period as compared to the prior year period.
Previous report
The decrease in revenue from local media rights fees for the three months ended March 31, 2026 was primarily due to a reduction in local telecast 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. The decrease in revenue from local media rights fees for the nine months ended March 31, 2026 was primarily due to reduced local telecast rights fees as a result of amendments to the Knicks’ and the Rangers’ local telecast rights agreements with MSG Networks entered into in the fourth quarter of fiscal year 2025, and a reduction in local telecast 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 local telecast 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 report
The decrease in pre/regular season food, beverage and merchandise sales for the three months ended March 31, 2026 was primarily due to the Knicks and the Rangers playing a combined five fewer home games at The Garden during the current year period as compared to the prior year period, partially offset by higher average per-game revenue. The increase in pre/regular season food, beverage and merchandise sales for the nine months ended March 31, 2026 was primarily due to higher online sales of merchandise and higher average per-game revenue. Merchandise sales for the three and nine months ended March 31, 2026 included the positive impact of new Rangers’ jersey launches.
Previous report
The decrease in sponsorship and signage revenues for the three months ended March 31, 2026 was primarily due to the Knicks and the Rangers playing a combined five fewer home games at The Garden during the current year period as compared to the prior year period, partially offset by higher net sales of existing sponsorship and signage inventory. The increase in sponsorship and signage revenues for the nine months ended March 31, 2026 was primarily due to higher net sales of existing sponsorship and signage inventory.
Previous report
Direct operating expenses increased $38,168, or 12%, to $354,503 for thethree months ended March 31, 2026 as compared to the prior year period. Direct operating expenses increased$73,872, or 12%, to$674,171 for the nine months ended March 31, 2026 as compared to the prior year period.
Previous report
The increases in team personnel compensation for the three and nine months ended March 31, 2026 were primarily due to changes in the Knicks and the Rangers rosters.
Previous 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.
Previous 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 nine months ended March 31, 2026 were primarily due to higher average per-game expenses. In addition, for the three months ended March 31, 2026, the increase was partially offset by the Knicks and the Rangers playing a combined five fewer home games at The Garden during the current year period as compared to the prior year period.
Previous report
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, 2026 was a result of the Knicks and the Rangers playing a combined five fewer home games at The Garden during the current year period as compared to the prior year period.
Previous 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 (i) $20,185 and $41,249 of expense paid in cash for the three and nine months ended March 31, 2026, respectively, and $21,747 and $40,048 of expense paid in cash for the three and nine months ended March 31, 2025, respectively, and (ii) a non-cash expense of $9,896 and $20,223 for the three and nine months ended March 31, 2026, respectively, and $11,633 and $21,424 for the three and nine months ended March 31, 2025, respectively.
Previous report
The decrease in pre/regular season expense associated with merchandise sales for the three months ended March 31, 2026 was primarily due to the Knicks and the Rangers playing a combined five fewer home games at The Garden during the current year period as compared to the prior year period, partially offset by higher average per-game revenue. The increase in pre/regular season expense associated with merchandise sales for the nine months ended March 31, 2026 was primarily due to higher online sales of merchandise and higher average per-game revenue. Merchandise sales for the three and nine months ended March 31, 2026 included the positive impact of new Rangers’ jersey launches.
Previous report
Selling, general and administrative expenses for the nine months ended March 31, 2026 increased $5,369, or 3%, to $200,553 as compared to the prior year period primarily driven by (i) higher employee compensation and related benefits of $10,632, including executive management transition costs of $6,939 recognized in the current year period, (ii) higher costs related to the Services Agreement of $2,523 and (iii) higher other general and administrative expenses. The increase was partially offset by lower professional fees of $9,167.
Previous report
Operating income (loss)
Previous report
Operating income for the three months ended March 31, 2026 decreased $30,379, or 94%, to $1,963 as compared to the prior year period primarily due to higher direct operating expenses, partially offset by higher revenues.
Previous report
Operating income (loss) for the nine months ended March 31, 2026 reflected an operating loss of $3,282 and operating income (loss) for the nine months ended March 31, 2025 reflected operating income of $37,384. The decrease was primarily driven by higher direct operating expenses and, to a lesser extent, higher selling, general and administrative expenses, partially offset by higher revenues.
Previous report
Interest income for the three months ended March 31, 2026 decreased $318, or 30%, to $733 as compared to the prior year period.
Previous report
Interest income for the nine months ended March 31, 2026 decreased $798, or 31%, to $1,807 as compared to the prior year period.
Previous report
Interest expense for the nine months ended March 31, 2026 decreased $26 to $16,636 as compared to the prior year period.
Previous report
NM - Percentage is not meaningful
Previous report
For the nine months ended March 31, 2026, adjusted operating income decreased $35,737, or 65%, to $19,175 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.
Previous report
These changes were partially offset by (i) a higher increase in accrued and other liabilities of $42,337 primarily due to higher accruals for employee compensation and league revenue sharing (net of escrow) in the current year period, partially offset by the impact of NBA luxury tax payments in the the current year period and lower accruals for income taxes in the current year period and (ii) a lower increase in accounts receivable, net, of $25,555 primarily due to the timing of collections from MSG Networks related to the Company’s local media rights agreements.
Previous report
Recent Accounting Pronouncements
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Critical Accounting Policies
Reworded paragraphs (49)
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 ending June 30, 2026 and the potential spin-off the Company’s New York Rangers (“Rangers”) business (the “Rangers Distribution”). See Note 1 to the consolidated financial statements included in “Part I — Item 1. Financial Statements” of this Quarterly Report on Form 10-Q for further discussion of the Rangers Distribution. 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 MSG Knickerbockers Corp. (formerly Madison Square Garden Sports Corp.) and its direct and indirect subsidiaries (collectively, “we,” “us,” “our,” “MSG Knicks,” or the “Company”), including the impact of the spin-off of the Company’s New York Rangers (“Rangers”) business (the “Rangers Distribution”) through the distribution of all of the common stock of MSG Rangers Corp. (formerly MSGS Spinco, Inc. and referred to herein as “MSG Rangers”). See Note 1 to the consolidated financial statements included in “Part I — Item 1. Financial Statements” of this Quarterly Report on Form 10-Q for further discussion of the Rangers Distribution. 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
•the level of our revenues, which depends in part on the popularity and competitiveness of our sports teams;
Current wording
•the level of our revenues, which depends in part on the popularity and competitiveness of the New York Knickerbockers (the “Knicks”) and their ability to reach and advance in the National Basketball Association (“NBA”) playoffs;
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•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;
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•changes in professional sports teams’ compensation, including the impact of signing free agents and executing trades, subject to league salary floors and caps and the impact of luxury tax;
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•general economic conditions, especially in the New York City metropolitan area, including any economic downturn, recession, financial instability, impact from government shutdowns or inflation;
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•general economic conditions, especially in the New York City metropolitan area, including any economic downturn, recession, financial instability, impacts from government shutdowns or inflation;
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•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;
Current wording
•changes in laws, NBA rules, regulations, guidelines, bulletins, directives, policies and agreements, including the NBA’s collective bargaining agreement with their players’ association, salary caps, escrow requirements, revenue sharing, NBA luxury tax thresholds and media rights, or other regulations under which we operate;
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•developments affecting the regional sports network industry, including the effects of such developments on MSG Networks Inc.’s (“MSG Networks”) solvency and its ability to perform its obligations under its local media rights agreements with us;
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•developments affecting the regional sports network industry, including the effects of such developments on MSG Networks Inc.’s (“MSG Networks”) solvency and its ability to perform its obligations under its local telecast rights agreement with us;
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•a default by our subsidiaries under their respective credit facilities;
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•a default by our subsidiary under its credit facility;
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•any NBA, NHL or other work stoppage;
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•any NBA or other work stoppage;
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•geopolitical risks, including the direct and indirect impact of foreign wars and conflicts, including the conflict with Iran and related unrest in the Middle East, on international, domestic and local economies;
Current wording
•geopolitical risks, including the risks of foreign wars and conflicts, including the conflict with Iran and related unrest in the Middle East, on international, domestic and local economies;
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•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 Rangers are played;
Current wording
•actual or threatened 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 Knicks are played;
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•certain restrictions on transfer and ownership of our common stock related to our ownership of professional sports franchises in the NBA and NHL;
Current wording
•certain restrictions on transfer and ownership of our common stock related to our ownership of professional sports franchises in the NBA;
Previous wording
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 2025 Form 10-K, 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.
Current wording
This MD&A is provided as a supplement to, and should be read in conjunction with, the unaudited consolidated financial statements and footnotes thereto included in this Quarterly Report on Form 10-Q, as well as our 2026 Form 10-K, to help provide an understanding of our financial condition, changes in financial condition and results of operations.
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This MD&A is organized as follows:
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Our MD&A is organized as follows:
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Results of Operations. This section provides an analysis of our unaudited results of operations for the three and nine months ended March 31, 2026 compared to the three and nine months ended March 31, 2025.
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Results of Operations. This section provides an analysis of our unaudited results of operations for the three months ended September 30, 2026 compared to the three months ended September 30, 2025.
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 nine months ended March 31, 2026 compared to the nine months ended March 31, 2025, 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 three months ended September 30, 2026 compared to the three months ended September 30, 2025, and (iii) certain contractual obligations.
Previous wording
Seasonality of Our Business. This section discusses the seasonal performance of our business.
Current wording
Seasonality of Our Business. This section discusses the seasonal performance of the Company.
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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 2026. This section should be read together with our critical accounting policies, which are discussed in our 2025 Form 10-K 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.
Current wording
Recently Issued Accounting Pronouncements and Critical Accounting Estimates. 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 2027. This section should be read together with our critical accounting policies, which are discussed in our 2026 Form 10-K 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 Estimates” and in the notes to the consolidated financial statements of the Company included therein.
Previous wording
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.
Current wording
The Company owns and operates one of the most storied franchises in all of sports, the Knicks of the NBA and, prior to the Rangers Distribution, owned and operated the Rangers of the National Hockey League (“NHL”). Both the Knicks and the Rangers play their home games at The Garden. The Company also includes the Westchester Knicks of the NBA G League and, prior to the Rangers Distribution, the Hartford Wolf Pack of the American Hockey League. Our professional sports franchises are collectively referred to herein as “our sports teams” or the “teams.” Prior to the Rangers Distribution, the Company also operated a professional sports team performance center — the Madison Square Garden Training Center in Greenburgh, NY.
Previous wording
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 wording
Our operating results are largely dependent on the continued popularity and/or on-court competitiveness of the Knicks and, prior to the Rangers Distribution, the on-ice competitiveness of the Rangers, which have a direct effect on ticket sales for the teams’ home games and are each team’s largest single source of revenue. In addition, the popularity of our sports teams can generate fan enthusiasm, resulting in sustained premium seating, suite, sponsorship, food and beverage and merchandise sales. Furthermore, success in the regular season may qualify our sports teams for participation in post-season playoffs, which provides us with a significant source of additional revenue, operating income and adjusted operating income. 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. In addition, 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 2026 Form 10-K.
Previous wording
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 wording
In addition to our future performance being dependent upon the continued popularity and/or on-court or on-ice competitiveness of the Knicks, it 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 Knicks’ games, which would also negatively affect merchandise and concession sales, as well as decrease levels of sponsorship and venue signage revenues.
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Comparison of the three and nine months ended March 31, 2026 versus the three and nine months ended March 31, 2025
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Comparison of the three months ended September 30, 2026 versus the three months ended September 30, 2025
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The net increases were attributable to the following:
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The net increase was attributable to the following:
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The increases in revenues from league distributions for the three and nine months ended March 31, 2026 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, as well as an incremental league distribution received from the NBA in the current year related to the impact of the NBA Cup on the Knicks' 2025-26 game schedule. In addition, for the nine months ended March 31, 2026, the increase was partially offset by a decrease in certain league distributions unrelated to national media rights fees.
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The increase in revenues from league distributions for the three months ended September 30, 2026 was primarily due to an increase in certain league distributions unrelated to national media rights fees.
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The net increases were attributable to the following:
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The net increase was attributable to the following:
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Net provisions (credits) for certain team personnel transactions were as follows:
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Net provisions for certain team personnel transactions were as follows:
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The increases 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 31, 2026 were primarily due to higher provisions for league revenue sharing expense (net of escrow and excluding playoffs) and higher NBA luxury tax expense, partially offset by the net impact of adjustments to prior seasons’ revenue sharing expense (net of escrow).
Current 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, 2026 was primarily due to the impact of adjustments to prior seasons’ revenue sharing expense (net of escrow) in the current year period.
Previous wording
Selling, general and administrative expenses for the three months ended March 31, 2026 decreased $998, or 1%, to $73,699 as compared to the prior year period primarily driven by lower professional fees of $7,183 and lower other general and administrative expenses, partially offset by higher employee compensation and related benefits of $7,528, primarily due to executive management transition costs of $6,939 recognized in the current year period.
Current wording
Selling, general and administrative expenses for the three months ended September 30, 2026 increased $2,973, or 5%, to $60,762 as compared to the prior year period primarily driven by expenses related to the Rangers Distribution of $3,554 in the current year period and higher other general and administrative expenses, partially offset by lower employee compensation and related benefits of $1,235.
Previous wording
Restructuring charges for the three and nine months ended March 31, 2026 were $1,244 due to termination benefits provided as part of a voluntary exit program the Company implemented during the three months ended March 31, 2026. There were no restructuring charges for the three and nine months ended March 31, 2025.
Current wording
Restructuring charges for the three months ended September 30, 2026 were $579 due to termination benefits provided to certain employees during the current year period. There were no restructuring charges for the three months ended September 30, 2025.
Previous wording
Interest expense for the three months ended March 31, 2026 decreased $185, or 4%, to $4,835 as compared to the prior year period.
Current wording
Interest expense for the three months ended September 30, 2026 decreased $892, or 16%, to $4,699 as compared to the prior year period.
Previous wording
Miscellaneous (expense) income, net for the nine months ended March 31, 2026 reflected net income of $2,424 and miscellaneous (expense) income, net for the nine months ended March 31, 2025 reflected net expense of $13,478. The increase in miscellaneous (expense) income, net relates to changes in fair value in the Company’s investments.
Current wording
Miscellaneous (expense) income, net for the three months ended September 30, 2026 reflected net expense of $3,663 and miscellaneous (expense) income, net for the three months ended September 30, 2025 reflected net income of $15,085. The decrease 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, all of which could have a significant impact on our business and results of operations. 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.
Current wording
Changes in tax laws and regulations have limited and in the future could further 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, Section 162(m) of the U.S. Internal Revenue Code generally limits a publicly held corporation’s deduction for compensation paid to each “covered employee” to $1 million per year. Effective for our tax year beginning July 1, 2027, Section 162(m) expands the definition of “covered employee” to include the five highest compensated employees for the taxable year other than our principal executive officer, principal financial officer, and three highest compensated executive officers. This expanded provision will apply to players on our sports teams and would cause a significant amount of compensation expense to be nondeductible in fiscal year 2028 and beyond. See “Item 1A. Risk Factors—Operational Risks—We Are Subject to Governmental Regulation, Including Tax Laws and Regulations, 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 2026 Form 10-K.
Previous wording
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).
Current wording
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 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).
Previous wording
The following are the reconciliations of operating income (loss) to adjusted operating income for the three and nine months ended March 31, 2026 and 2025:
Current wording
The following is a reconciliation of operating loss to adjusted operating loss for the three months ended September 30, 2026 and 2025:
Previous wording
For the three months ended March 31, 2026, adjusted operating income decreased $26,623, or 72%, to $10,308 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 and lower selling, general and administrative expenses.
Current wording
For the three months ended September 30, 2026, adjusted operating loss decreased $803, or 4%, to $20,004 as compared to the prior year period. The decrease in adjusted operating loss was primarily due to higher revenues, partially offset by higher selling, general and administrative 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. On November 6, 2025, the Company amended and extended the 2021 Knicks Credit Agreement and the 2021 Rangers Credit Agreement. See Note 13 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).
Current wording
Our primary sources of liquidity are cash and cash equivalents, cash flow from operations and available borrowing capacity under our credit facility. See Note 13 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.
Previous wording
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.
Current wording
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. In addition, in connection with the Rangers Distribution, the Company contributed $19,095 of cash to MSG Rangers.
Previous wording
As of March 31, 2026, we had$107,039 in Cash and cash equivalents. In addition, as of March 31, 2026, the Company’s deferred revenue obligations were $78,250, net of billed, but not yet collected deferred revenue. This balance is primarily comprised of obligations in connection with tickets and suites.
Current wording
As of September 30, 2026, we had$40,046 in Cash and cash equivalents. In addition, as of September 30, 2026, the Company’s deferred revenue obligations were $292,428, net of billed, but not yet collected deferred revenue. This balance is primarily comprised of obligations in connection with tickets and suites. The outstanding balance under the Knicks Revolving Credit Facility was $282,000 as of September 30, 2026.
Previous wording
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.
Current wording
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 potentially challenging U.S. and global economic and market conditions could adversely impact its ability to do so at that time.
Previous wording
We believe we have sufficient liquidity, including approximately $107,039 in Cash and cash equivalents as of March 31, 2026, along with $433,000 of additional available borrowing capacity under existing credit facilities (as of March 31, 2026), to fund our operations and satisfy any obligations for the foreseeable future.
Current wording
We believe we have sufficient liquidity, including $40,046 in Cash and cash equivalents as of September 30, 2026, along with $113,000 of additional available borrowing capacity under the 2025 Knicks Credit Agreement (as of the date of filing), to fund our operations and satisfy any obligations for the foreseeable future.
Previous wording
The Company did not have any material changes in its contractual obligations since the end of fiscal year 2025 other than activities in the ordinary course of business.
Current wording
The Company did not have any material changes in its contractual obligations since the end of fiscal year 2026 other than activities in the ordinary course of business, except for the related party agreements entered into in connection with the Rangers Distribution as further described in Note 16 to the consolidated financial statements included in “Part I - Item 1. Financial Statements” of this Quarterly Report on Form 10-Q.
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Previous report — wording carried elsewhere
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.
Previous report — wording carried elsewhere
Miscellaneous (expense) income, net for the three months ended March 31, 2026 and 2025 reflected net expense of $11,155 and $5,743, respectively. The decrease in miscellaneous (expense) income, net relates to changes in fair value in the Company’s investments.