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Madison Square Garden Sport Corp (MSG)

Description

Madison Square Garden Sport Corp owns and operates professional sports franchises (NBA’s New York Knicks, NHL’s New York Rangers), manages The Garden arena, and generates revenue from ticketing, media rights, sponsorships, suite licenses, merchandise and concessions.

Historical Reports

Financial Information

Report Date
2025-05-10
Report Period
Quarter Ended March 31, 2025 (Q3 2025)
Debt
$291,000,000
Debt History
4.6% decrease compared to June 2024
Debt Trend
Decreasing

Profit Information

Profit
-$14,227,000
Profit History
62.4% improvement in net loss compared to Q3 2024
Profit Trend
Increasing

Detailed Report

Financial Report for Madison Square Garden Sport Corp

Report Date: 2025-05-10
Period Covered: Quarter Ended March 31, 2025 (Q3 2025)

1. Overview

Madison Square Garden Sport Corp ("MSG Sports") reported total revenue of $424.2 million in Q3 2025, down 0.6% from $430.0 million in Q3 2024. The company delivered a net loss of $14.2 million versus a $37.9 million loss in the prior-year period, reflecting a 62.4% improvement.

2. Profit & Loss Analysis

  • Net Loss: $14.2 million (Q3 2025) vs. $37.9 million (Q3 2024)
  • Improvement Drivers:
    • Lower NBA luxury tax and league revenue sharing provision in Q3 2025.
    • Reduced team personnel transaction net charges.
  • Offsets:
    • Decline in food, beverage and merchandise sales due to two fewer combined home games.
    • One-time media rights fee reduction under proposed MSG Network amendment.

3. Debt Analysis

  • Total Debt: $291.0 million (Current: $24.0M; Long-Term: $267.0M)
  • Debt Reduction: Down from $305.0 million at June 2024 (−4.6%).
  • Debt Facilities:
    • Knicks Revolver: $267.0 million outstanding (matures Dec 2026).
    • Rangers NHL Advance: $24.0 million outstanding (demand note at 3.00%).

4. Revenue & Segment Performance

  • Total Revenue: $424.2 million
  • Key drivers:
    • Media Rights: $123.5 million (‐11.5% YoY) due to amendment under transaction support agreement.
    • Event-Related: $176.8 million (‐0.6% YoY) reflecting consistent attendance.
    • Sponsorship/Signage: $113.7 million (+12.2% YoY) on strong renewals.
    • Suites & League Distribution: $10.2 million (‐8.4% YoY) tied to fewer home dates.

5. Pros and Cons

Pros:

  • Improved operating leverage driving narrowing of net loss.
  • Strong sponsorship revenue growth.
  • Reduced debt balance enhances flexibility.

Cons:

  • Continued net losses for the quarter.
  • Dependence on MSG Network for media carriage; amendment fee cut pressures near-term revenue.
  • Seasonal and game schedule fluctuations impact food, beverage and suite sales.

Statistics Breakdown

Revenue Breakdown Q3 2025:

  • Event-Related: $176.8M (41.6%)
  • Media Rights: $123.5M (29.1%)
  • Sponsorship/Signage: $113.7M (26.8%)
  • Suites & League Distribution: $10.2M (2.4%)

Company Direction Insights

MSG Sports is on a path to margin improvement driven by cost control and non-ticketing revenue growth, particularly sponsorships. The recent amendment to media rights fees signals short-term revenue headwinds but long-term stability if distribution alternatives materialize. Debt reduction of 4.6% and strong cash generation underpin financial health, although seasonal variability and reliance on a single regional sports network remain key risks. Future opportunities include expansion of premium hospitality and digital fan engagement to diversify away from game-day dependence.