Madison Square Garden Sports Corp

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 increased expenses as a result of higher team personnel compensation and corresponding NBA luxury tax. 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 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:

Previous wording

•general economic conditions, especially in the New York City metropolitan area;

Current wording

•general economic conditions, especially in the New York City metropolitan area, including the impact of a recession on our business;

Previous wording

Results of Operations. This section provides an analysis of our unaudited results of operations for the three and six months ended December 31, 2024 compared to the three and six months ended December 31, 2023.

Current wording

Results of Operations. This section provides an analysis of our unaudited results of operations for the three and nine months ended March 31, 2025 compared to the three and nine months ended March 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 six months ended December 31, 2024 compared to the six months ended December 31, 2023, 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 nine months ended March 31, 2025 compared to the nine months ended March 31, 2024, and (iii) certain contractual obligations.

Previous wording

The increases in pre/regular season ticket-related revenues for the three and six months ended December 31, 2024 were primarily due to the Knicks and the Rangers playing a combined 3 additional home games at The Garden during the current year periods as compared to the prior year periods and higher average per-game revenue. The Knicks played 17 games at The Garden during the three and six months ended December 31, 2024 as compared to 15 games during the prior year periods. The Rangers played 18 games at The Garden during the three months ended December 31, 2024 and 20 games at The Garden during the six months ended December 31, 2024 as compared to 17 and 19 games, respectively, during the prior year periods.

Current wording

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

Previous wording

Comparison of the three and six months ended December 31, 2024 versus the three and six months ended December 31, 2023

Current wording

Comparison of the three and nine months ended March 31, 2025 versus the three and nine months ended March 31, 2024

Previous wording

Revenues increased $30,861, or 9%, to $357,759 for thethree months ended December 31, 2024 as compared to the prior year period. Revenues increased $41,122, or 11%, to $411,066 for the six months ended December 31, 2024 as compared to the prior year period.

Current wording

Revenues decreased $5,757, or 1%, to $424,197 for thethree months ended March 31, 2025 as compared to the prior year period. Revenues increased $35,365, or 4%, to $835,263 for the nine months ended March 31, 2025 as compared to the prior year period.

Previous wording

The net increases were attributable to the following:

Current wording

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

Previous wording

The increases in pre/regular season food, beverage, and merchandise sales for the three and six months ended December 31, 2024 were primarily due to higher average per-game revenue and the Knicks and the Rangers playing additional home games at The Garden during the current year periods as compared to the prior year periods, partially offset by lower online sales of merchandise.

Current wording

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

Previous wording

The increases in sponsorship and signage revenues for the three and six months ended December 31, 2024 were primarily due the Knicks and the Rangers playing additional home games at The Garden during the current year periods as compared to the prior year periods and higher net sales of existing sponsorship and signage inventory.

Current wording

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

Previous wording

The increase in revenues from league distributions for the three months ended December 31, 2024 was primarily due to increased national media rights fees in the current year period. The increase in revenues from league distributions for the six months ended December 31, 2024 was primarily due to an increase in certain league distributions unrelated to national media rights fees and increased national media rights fees in the current year period.

Current wording

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

Previous wording

Direct operating expenses increased $43,528, or 19%, to $275,753 for thethree months ended December 31, 2024 as compared to the prior year period. Direct operating expenses increased $48,219, or 20%, to $283,964 for thesix months ended December 31, 2024 as compared to the prior year period.

Current wording

Direct operating expenses increased $43,309, or 16%, to $316,335 for thethree months ended March 31, 2025 as compared to the prior year period. Direct operating expenses increased $91,528, or 18%, to $600,299 for thenine months ended March 31, 2025 as compared to the prior year period.

Previous wording

The increases in net provisions for league revenue sharing expense (net of escrow and excluding playoffs) and NBA luxury tax for thethree and six months ended December 31, 2024 were primarily due to higher estimated NBA luxury tax expense, partially offset by lower provisions for league revenue sharing expense (net of escrow and excluding playoffs). The increases in estimated NBA luxury tax expense were the result of the expectation that the Knicks will be a significant luxury tax payer for the 2024-25 season based on their roster as of December 31, 2024, whereas the Knicks were not a luxury tax payer for the 2023-24 season. The Knicks received an equal share of the portion of luxury tax receipts that were distributed to non-paying teams for the 2023-24 season.

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

Previous wording

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

Current wording

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

Previous wording

The increases in team personnel compensationfor the three and six months ended December 31, 2024 were primarily due to changes in the Knicks roster.

Current wording

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

Previous wording

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, 2024 were primarily due to the Knicks and the Rangers playing additional home games at The Garden during the current year periods as compared to the prior year periods and higher average per-game expenses.

Current wording

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

Previous wording

Net provisions for certain team personnel transactions for the three and six months ended December 31, 2024 reflect provisions recorded for player trades of $7,586. In addition, for the six months ended December 31, 2024, net provisions for certain team personnel transactions reflect provisions for waiver/contract terminations of $833.

Current wording

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

Previous wording

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, 2024 were a result of the Knicks and the Rangers playing additional home games at The Garden during the current year periods as compared to the prior year periods.

Current wording

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

Previous wording

(a)Adjusted operating income includes operating lease costs which is comprised of a contractual cash component plus or minus a non-cash component for each period presented. Pursuant to GAAP, recognition of operating lease costs is recorded on a straight-line basis over the term of the agreement based upon the value of total future payments under the arrangement. Adjusted operating income includes operating lease costs of (i) $17,447 and $18,301 of expense paid in cash for the three and six months ended December 31, 2024, respectively, and $15,409 and $16,238 of expense paid in cash for the three and six months ended December 31, 2023, respectively, and (ii) a non-cash expense of $9,334 and $9,791 for the three and six months ended December 31, 2024, respectively, and $8,953 and $9,435 for the three and six months ended December 31, 2023, respectively.

Current wording

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

Previous wording

The increases in pre/regular season expense associated with merchandise sales for the three and six months ended December 31, 2024 were primarily related to higher merchandise sales as a result of higher average per-game revenue and the Knicks and the Rangers playing additional home games at The Garden during the current year periods as compared to the prior year periods, partially offset by lower online sales of merchandise.

Current wording

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

Previous wording

Selling, general and administrative expenses primarily consist of (i) administrative costs, including compensation, costs under the Company’s Services Agreement, professional fees, and operating lease costs, (ii) fees related to the Company’s 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, 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 December 31, 2024 increased $2,834, or 4%, to $67,900 as compared to the prior year period driven by higher operating lease costs of $3,613 and higher professional fees of $2,713, partially offset by lower employee compensation and related benefits of $2,648 and lower other general and administrative expenses.

Current wording

Selling, general and administrative expenses for the three months ended March 31, 2025 decreased $1,701, or 2%, to $74,697 as compared to the prior year period driven by lower employee compensation and related benefits of $12,423, primarily related to executive management transition costs recognized in the prior year period, and lower other general and administrative expenses, partially offset by (i) higher professional fees of $7,617, (ii) higher costs related to the Services Agreement of $1,844, (iii) higher operating lease costs of $1,373, and (iv) higher fees related to the Sponsorship Sales and Service Representation Agreements of $1,182.

Previous wording

Selling, general and administrative expenses for the six months ended December 31, 2024 increased $1,865, or 2%, to $120,487 as compared to the prior year period driven by higher professional fees of $3,901 and higher operating lease costs of $3,764, partially offset by (i) lower employee compensation and related benefits of $3,278, (ii) lower sales and marketing costs of $1,406, and (iii) lower other general and administrative expenses.

Current wording

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

Previous wording

Interest income for the three months ended December 31, 2024 increased $71, or 11%, to $690 as compared to the prior year period primarily due to higher average cash balances in the current year period, partially offset by lower average interest rates.

Current wording

Interest income for the three months ended March 31, 2025 increased $574 to $1,051 as compared to the prior year period primarily due to higher average cash balances in the current year period, partially offset by lower average interest rates.

Previous wording

Interest income for the six months ended December 31, 2024 increased $482, or 45%, to $1,554 as compared to the prior year period primarily due to higher average cash balances in the current year period.

Current wording

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

Previous wording

Interest expense for the three months ended December 31, 2024 decreased $1,832, or 25%, to $5,587 as compared to the prior year period primarily due to lower average borrowings under the Rangers Revolving Credit Facility in the current year period and lower average interest rates under the Knicks Revolving Credit Facility in the current year period.

Current wording

Interest expense for the three months ended March 31, 2025 decreased $1,901, or 27%, to $5,020 as compared to the prior year period primarily due to lower average borrowings under the Rangers Revolving Credit Facility in the current year period and lower average interest rates under the Knicks Revolving Credit Facility in the current year period.

Previous wording

Interest expense for the six months ended December 31, 2024 decreased $2,706, or 19%, to $11,642 as compared to the prior year period primarily due to lower average borrowings under the Rangers Revolving Credit Facility in the current year period and lower average interest rates under the Knicks Revolving Credit Facility in the current year period, partially offset by higher average borrowings under the Knicks Revolving Credit Facility in the current year period.

Current wording

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

Previous wording

Miscellaneous (expense) income, net for the three months ended December 31, 2024 reflected net expense of $6,609 and Miscellaneous (expense) income, net for the three months ended December 31, 2023 reflected net income of $2,991. The decrease in Miscellaneous (expense) income, net as compared to the prior year period was primarily due to the recognition of unrealized losses in the current year period as compared to unrealized gains in the prior year period related to the Company’s investments in Xtract One common stock and warrants.

Current wording

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

Previous wording

Miscellaneous (expense) income, net for the six months ended December 31, 2024 reflected net expense of $7,735 and Miscellaneous (expense) income, net for the six months ended December 31, 2023 reflected net expense of $9,674. The decrease in Miscellaneous (expense) income, net as compared to the prior year period was primarily due to lower unrealized losses in the current year period related to the Company’s investments in Xtract One common stock and warrants.

Current wording

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

Previous wording

The following are the reconciliations of operating income to adjusted operating income for the three and six months ended December 31, 2024 and 2023:

Current wording

The following are the reconciliations of operating income to adjusted operating income for the three and nine months ended March 31, 2025 and 2024:

Previous wording

For the three months ended December 31, 2024, adjusted operating income decreased $16,777, or 45%, to $20,239 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 wording

For the three months ended March 31, 2025, adjusted operating income decreased $51,770, or 58%, to $36,931 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, lower revenues.

Previous wording

For the six months ended December 31, 2024, adjusted operating income decreased $9,050, or 33%, to $17,981 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 wording

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

Previous wording

As of December 31, 2024, we had$107,823 in Cash and cash equivalents. In addition, as of December 31, 2024, the Company’s deferred revenue obligations were $222,146, 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 March 31, 2025, we had$96,536 in Cash and cash equivalents. In addition, as of March 31, 2025, the Company’s deferred revenue obligations were $124,958, net of billed, but not yet collected deferred revenue. This balance is primarily comprised of obligations in connection with tickets and suites.

Previous wording

We believe we have sufficient liquidity, including approximately $107,823 in Cash and cash equivalents as of December 31, 2024, along with $250,000 of additional available borrowing capacity under existing credit facilities (as of December 31, 2024), 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 December 31, 2024.

Current wording

We believe we have sufficient liquidity, including approximately $96,536 in Cash and cash equivalents as of March 31, 2025, along with $258,000 of additional available borrowing capacity under existing credit facilities (as of March 31, 2025), to fund our operations and satisfy any obligations for the foreseeable future. If MSG Networks were to experience a bankruptcy or insolvency event (as set forth in each of the credit facilities), we would be prevented, absent a cure or waiver, from making borrowings under our revolving credit facilities. The Rangers Credit Agreement also includes an event of default upon a bankruptcy or insolvency event with respect to a material media rights counterparty, including MSG Networks. There were no borrowings outstanding under the Rangers Revolving Credit Facility as of March 31, 2025. In addition, we had an outstanding receivable balance of $30,101 as of March 31, 2025 from MSG Networks related to unpaid amounts under the media rights agreements. If MSG Networks were to experience a bankruptcy or insolvency event, some or all of this accounts receivable balance could be impaired.

Previous wording

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

Previous wording

The following table summarizes the Company’s cash flow activities for the six months ended December 31, 2024 and 2023:

Current wording

The following table summarizes the Company’s cash flow activities for the nine months ended March 31, 2025 and 2024:

Previous wording

Net cash provided by (used in) operating activities for the six months ended December 31, 2024 improved by $55,878 to $35,621 as compared to the prior year period. The improvement was primarily due to changes in working capital assets and liabilities, partially offset by the decrease in net income (loss) adjusted for non-cash items. The changes in working capital assets and liabilities were primarily driven by (i) a higher increase in deferred revenue of $29,563 primarily due to higher collections of ticket, sponsorship, and suite sales in advance of recognition, (ii) a lower decrease in accrued and other liabilities of $26,020 primarily due to increased accruals for NBA luxury tax in the current year period and lower payments related to employee compensation in the current year period, (iii) a decrease in net related party receivables of $13,626 primarily due to primarily due to the timing of collections related to the Company’s arena license agreements and sponsorship sales and service representation agreements, and (iv) a lower increase in prepaid expenses and other assets of $6,213 primarily due to lower contract assets, current in the current year period and higher collections of other receivables in the current year period. These changes were partially offset by a higher increase in accounts receivable, net of $13,085 primarily due to higher receivables related to league distributions in the current year period.

Current wording

Net cash provided by (used in) operating activities for the nine months ended March 31, 2025 improved by $58,104 to $41,884 as compared to the prior year period. The improvement was primarily due to changes in working capital assets and liabilities, partially offset by the decrease in net (loss) income adjusted for non-cash items. The changes in working capital assets and liabilities were primarily driven by (i) an increase in deferred revenue of $68,441 primarily due to higher collections of ticket, suites, and sponsorship sales in advance of recognition, (ii) a higher increase in accrued and other liabilities of $39,964 primarily due to increased accruals for NBA luxury tax in the current year period, (iii) a lower increase in prepaid expenses and other assets of $33,982 primarily due to a lower increase in contract assets in the current year period primarily due to lower revenue recognized under the Company’s local media rights agreements, and (iv) a decrease in net related party receivables of $10,327 primarily due to the timing of collections related to the Company’s Sponsorship Sales and Service Representation Agreements. These changes were partially offset by a higher increase in accounts receivable, net of $39,559 primarily due to higher accounts receivable from MSG Networks related to unpaid amounts under the local media rights agreements.

Previous wording

Net cash used in investing activities for the six months ended December 31, 2024 decreased by $2,936 to $2,302 as compared to the prior year period primarily due to lower purchases of investments in the current year period.

Current wording

Net cash used in investing activities for the nine months ended March 31, 2025 decreased by $340 to $5,349 as compared to the prior year period primarily due to lower purchases of investments in the current year period, partially offset by higher capital expenditures.

Previous wording

Net cash used in financing activities for the six months ended December 31, 2024 was $12,373 as compared to net cash provided by financing activities for the six months ended December 31, 2023 of $26,268. This was primarily due to additional borrowings under the Company’s credit facilities in the prior year period partially offset by higher principal repayments in the prior year period.

Current wording

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