MSG Knickerbockers reports $8.8 million net loss for fiscal Q1 2026

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For the fiscal year ended June 30 , 2025

☑ ANNUAL QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2025

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(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)

incorporation or organization) (I.R.S. Employer

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Securities registered pursuant to Section 12(g) of the Act: None.

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☑ No ☐

Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes o No ☑

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant has been was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☑ Yes ☐ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). ☑ Yes ☐ No ☐

Indicate by check mark whether each the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

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Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☑

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to § 240.10D-1(b). ☐

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Aggregate market value of the voting and non-voting common equity held by non-affiliates of Madison Square Garden Sports Corp. computed by reference to the price at which the common equity was last sold on New York Stock Exchange as of December 31, 2024, the last business day of the registrant's most recently completed second fiscal quarter, was approximately $ 4.3 billion.

Number of shares of common stock outstanding as of July 31, October 24, 2025:

Class A Common Stock par value $0.01 per share — 19,488,096 19,529,890

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Documents incorporated by reference — Certain information required for Part III of this report is incorporated herein by reference to the proxy statement for the 2025 annual meeting of the Company's stockholders, expected to be filed within 120 days after the close of our fiscal year.

MADISON SQUARE GARDEN SPORTS CORP.

PART I. FINANCIAL INFORMATION

Financial statements 146 changes

The Financial Statements required by this Item 8 appear beginning on page F-1 of this Annual Report on Form 10-K, and are incorporated by reference herein.

MADISON SQUARE GARDEN SPORTS CORP.

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

Cash and cash equivalents $ 48,634 $ 144,617

Restricted cash 8,642 8,571

Accounts receivable, net of allowance for doubtful accounts of $ 0 as of September 30, 2025 and June 30, 2025

Net related party receivables 26,684 3,582

Prepaid expenses 102,500 43,417

Other current assets 17,615 25,053

Total current assets 246,693 251,095

Property and equipment, net of accumulated depreciation and amortization of $ 54,446 and $ 53,635 as of September 30, 2025 and June 30, 2025, respectively

Right-of-use lease assets 758,422 760,456

Indefinite-lived intangible assets 103,644 103,644

Goodwill 226,523 226,523

Investments 73,515 54,720

Deferred tax assets, net 43,268 34,821

Other assets 36,609 12,753

Total assets $ 1,517,402 $ 1,472,974

See accompanying notes to consolidated financial statements.

MADISON SQUARE GARDEN SPORTS CORP.

CONSOLIDATED BALANCE SHEETS (Continued)

(in thousands, except per share data)

LIABILITIES AND EQUITY

Current Liabilities:

Accounts payable $ 5,201 $ 9,336

Net related party payables 4,394 4,807

Accrued liabilities:

Employee-related costs 56,551 98,924

League-related accruals 156,564 196,567

Other accrued liabilities 5,794 13,093

Operating lease liabilities, current 54,233 52,618

Deferred revenue 330,587 164,178

Total current liabilities 637,324 563,523

Long-term debt 267,000 267,000

Operating lease liabilities, noncurrent 829,365 841,050

Other employee-related costs 77,257 82,178

Deferred revenue, noncurrent 634 662

Total liabilities 1,811,580 1,754,413

Commitments and contingencies (see Note 11)

Madison Square Garden Sports Corp. Stockholders' Equity:

Class A Common Stock, par value $ 0.01 , 120,000 shares authorized; 19,530 and 19,488 shares outstanding as of September 30, 2025 and June 30, 2025, respectively

Class B Common Stock, par value $ 0.01 , 30,000 shares authorized; 4,530 shares outstanding as of September 30, 2025 and June 30, 2025

Preferred stock, par value $ 0.01 , 15,000 shares authorized; none outstanding as of September 30, 2025 and June 30, 2025

Additional paid-in capital 4,403 15,348

Treasury stock, at cost, 918 and 960 shares as of September 30, 2025 and June 30, 2025, respectively ( 151,524 ) ( 158,543 )

Accumulated deficit ( 146,410 ) ( 137,596 )

Accumulated other comprehensive loss ( 896 ) ( 897 )

Total equity ( 294,178 ) ( 281,439 )

Total liabilities and equity $ 1,517,402 $ 1,472,974

See accompanying notes to consolidated financial statements.

MADISON SQUARE GARDEN SPORTS CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

Three Months Ended September 30,

Direct operating expenses (b)

Selling, general and administrative expenses (c)

Depreciation and amortization 811 782

Operating loss ( 27,425 ) ( 8,273 )

Other income (expense):

Interest income 578 864

Interest expense ( 5,591 ) ( 6,055 )

Miscellaneous income (expense), net 15,085 ( 1,126 )

Loss before income taxes ( 17,353 ) ( 14,590 )

Income tax benefit 8,555 7,048

Net loss $ ( 8,798 ) $ ( 7,542 )

Basic loss per common share attributable to Madison Square Garden Sports Corp.'s stockholders $ ( 0.37 ) $ ( 0.31 )

Diluted loss per common share attributable to Madison Square Garden Sports Corp.'s stockholders $ ( 0.37 ) $ ( 0.31 )

Weighted-average number of common shares outstanding:

Diluted 24,116 24,049

(a) Includes revenues from related parties of $ 6,760 and $ 8,904 for the three months ended September 30, 2025 and 2024, respectively.

(b) Includes net charges from related parties of $ 2,454 and $ 2,295 for the three months ended September 30, 2025 and 2024, respectively.

(c) Includes net charges from related parties of $ 14,732 and $ 11,862 for the three months ended September 30, 2025 and 2024, respectively.

See accompanying notes to consolidated financial statements.

MADISON SQUARE GARDEN SPORTS CORP.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

Three Months Ended September 30,

Net loss $ ( 8,798 ) $ ( 7,542 )

Other comprehensive income, before income taxes:

Amounts reclassified from accumulated other comprehensive loss:

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Note 1: Description of Business and Basis of Presentation 8 changes

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Madison Square Garden Sports Corp. (together with its subsidiaries, collectively, "we," "us," "our," "MSG Sports," or the "Company") owns and operates a portfolio of assets featuring some of the most recognized teams in all of sports, including the New York Knickerbockers ("Knicks") of the National Basketball Association ("NBA") and the New York Rangers ("Rangers") of the National Hockey League ("NHL"). Both the Knicks and the Rangers play their home games in Madison Square Garden Arena ("The Garden"). The Company's other professional sports franchises include two development league teams — the Hartford Wolf Pack of the American Hockey League and the Westchester Knicks of the NBA G League. These professional sports franchises are collectively referred to herein as the "sports teams" or the "teams." In addition, the Company previously owned a controlling interest in Counter Logic Gaming ("CLG"), a North American esports organization. In April 2023, the Company sold its controlling interest in CLG to Hard Carry Gaming Inc. ("NRG"), a professional gaming and entertainment company, in exchange for a noncontrolling equity interest in the combined NRG/CLG company. The Company also operates a professional sports team performance center — the Madison Square Garden Training Center in Greenburgh, NY.

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On April 17, 2020, the "Sphere Distribution Date"), the Company distributed all of the outstanding common stock of Sphere Entertainment Co. (formerly Madison Square Garden Entertainment Corp. and referred to herein as ("Sphere Entertainment") to its stockholders (the "Sphere Distribution").

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On April 20, 2023 (the "MSGE Distribution Date"), Sphere Entertainment distributed approximately 67 % of the issued and outstanding shares of common stock of Madison Square Garden Entertainment Corp. (referred to herein as "MSG Entertainment") to its stockholders (the "MSGE Distribution"). All agreements between the Company and MSG Entertainment described herein were between the Company and Sphere Entertainment prior to the MSGE Distribution (except agreements entered into after the MSGE Distribution Date).

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Unless the context otherwise requires, all references to Madison Square Garden Entertainment Corp. ("MSG Entertainment"), Sphere Entertainment and MSG Networks refer to such entity, together with its direct and indirect subsidiaries.

Basis of Presentation

The accompanying unaudited consolidated interim financial statements (referred to as the "Financial Statements" herein) have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and Article 10 of Regulation S-X of the Securities and Exchange Commission for interim financial information, and should be read in conjunction with the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2025 ("fiscal year 2025"). Certain information and note disclosures normally included in the annual financial statements have been condensed or omitted from these Financial Statements. The Financial Statements presented in this Quarterly Report on Form 10-Q are unaudited; however, in the opinion of management, the Financial Statements reflect all adjustments, consisting solely of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods presented. The results of operations for the periods presented are not necessarily indicative of the results that might be expected for future interim periods or for the full fiscal year. The dependence of MSG Sports on revenues from its NBA and NHL sports teams generally means it earns a disproportionate share of its revenues in the second and third quarters of the Company's fiscal year, which is when the majority of the sports teams' games are played.

Certain reclassifications have been made in order to conform to the current period's presentation and relate to the combination of Defined benefit obligations and Other employee-related costs in non-current liabilities in the consolidated balance sheets.

MADISON SQUARE GARDEN SPORTS CORP.

Note 3: Revenue Recognition 21 changes

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The Company recognizes revenue when, or as, performance obligations under the terms of a contract are satisfied, which generally occurs when, or as, control of promised goods or services are transferred to customers. Revenue is measured as the amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services ("transaction price"). To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing the most likely amount to which the Company expects to be entitled. Variable consideration is included in the transaction price if, in the Company's judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Estimates of variable consideration and the determination of whether to include such estimated amounts in the transaction price are based largely on an assessment of the Company's anticipated performance and all information that is reasonably available. The Company accounts for taxes collected from customers and remitted to governmental authorities on a net basis and excludes these amounts from revenues.

In addition, the Company defers certain costs to fulfill the Company's contracts with customers to the extent such costs relate directly to the contracts, are expected to generate resources that will be used to satisfy the Company's performance obligations under the contracts, and are expected to be recovered through revenue generated under the contracts. Contract fulfillment costs are expensed as the Company satisfies the related performance obligations.

Arrangements with Multiple Performance Obligations

The Company has contracts with customers, including multi-year sponsorship agreements, that contain multiple performance obligations. Payment terms for such arrangements can vary by contract, but payments are generally due in installments throughout the contractual term. The performance obligations included in each sponsorship agreement vary and may include various advertising benefits such as, but not limited to, signage, digital advertising, event or property specific advertising, as well as non-advertising benefits such as suite licenses and event tickets. To the extent the Company's multi-year arrangements provide for performance obligations that are consistent over the multi-year contractual term, such performance obligations generally meet the definition of a series as provided for under the accounting guidance. If performance obligations meet the definition of a series, the contractual fees for all years during the contract term are aggregated and the related revenue is recognized proportionately as the underlying performance obligations are satisfied.

All revenue recognized in the consolidated statements of operations is considered to be revenue from contracts with customers. in accordance with ASC Topic 606. For the year ended June 30, 2025, the Company did not have any impairment losses on receivables arising from contracts with customers. For the year three months ended June September 30, 2025 the Company recorded impairment losses of $ 109 on contract assets arising from contracts with customers. For the years ended 2024 and 2023, 2024, the Company did not have any impairment losses on receivables or contract assets arising from contracts with customers.

Disaggregation of Revenue

The following table disaggregates the Company's revenues by type of goods or services in accordance with the disclosure requirements set forth in Accounting Standards Codification ("ASC") Subtopic 280-10-50-38 to 40 and the disaggregation of revenue required disclosures in accordance with ASC Subtopic 606-10-50-5 for the three months ended September 30, 2025 and 2024:

Three Months Ended September 30,

Sponsorship, signage and suite licenses 4,655 5,188

League distributions and other 23,692 34,681

Total revenues from contracts with customers $ 39,454 $ 53,307 (a) Consists of (i) ticket sales and other ticket-related revenues, and (ii) food, beverage and merchandise sales at The Garden.

(b) Consists of (i) local media rights fees from MSG Networks, (ii) revenue from the distribution through league-wide national media contracts, and (iii) other local radio rights fees.

On June 27, 2025, the media 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:

◦ A modification to the annual rights fee to effect a 28 % reduction as of January 1, 2025;

◦ an elimination of the annual rights fee escalator; and

◦ 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;

◦ A modification to the annual rights fee to effect an 18 % reduction as of January 1, 2025;

◦ an elimination of the annual rights fee escalator; and

◦ 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.

Concurrent with the amendments to the media rights agreements, MSG Networks issued penny warrants to the Company exercisable for 19.9 % of the equity interests in MSG Networks.

The amendments were accounted for as a modification under ASC Subtopic 606 with revenue for the fiscal year ended June 30, 2025 reflecting the change in the transaction price in the media rights agreements. The penny warrants issued to the Company were considered non-cash consideration under ASC Subtopic 606 and the fair value of consideration received was included in the change in transaction price as a result of the modification. Refer to Note 9 for further details regarding the penny warrant investment and corresponding fair value.

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Note 4: Computation of Earnings (Loss) per Common Share 14 changes

Years Ended June 30,

Net (loss) income attributable to Madison Square Garden Sports Corp.'s stockholders $ ( 22,438 ) $ 58,771 $ 47,793

The following table presents a reconciliation of (loss) earnings (loss) allocated to common shares and a reconciliation of weighted-average shares used in the calculations of basic and diluted (loss) earnings (loss) per common share attributable to the Company's stockholders ("EPS") and the number of shares excluded from diluted (loss) earnings (loss) per common share, as they were anti-dilutive.

Three Months Ended September 30,

Net loss income allocable to common shares, basic and diluted (numerator):

Net loss $ ( 8,798 ) $ ( 7,542 )

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Net loss earnings allocable to common shares, basic and diluted (numerator): $ ( 22,457 8,814 ) $ 58,771 $ 45,751 ( 7,550 )

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Weighted-average shares for basic EPS 24,089 24,011 24,090 24,116 24,049

Dilutive effect of shares issuable under share-based compensation plans — 85 104 —

Weighted-average shares for diluted EPS 24,089 24,096 24,194 24,116 24,049

Weighted-average shares excluded from diluted earnings per share 82 — — EPS 80 92

Basic loss earnings per common share attributable to Madison Square Garden Sports Corp.'s stockholders $ ( 0.93 0.37 ) $ 2.45 $ 1.90 ( 0.31 )

Diluted loss per common share attributable to Madison Square Garden Sports Corp.'s stockholders $ ( 0.37 ) $ ( 0.31 )

Diluted (loss) earnings per common share attributable to Madison Square Garden Sports Corp's stockholders $ ( 0.93 ) $ 2.44 $ 1.89 (a) Dividends to other-than-common stockholders consists of forfeitable rights to dividends declared and payable to holders of the Company's unvested restricted stock units and performance restricted stock units.

Note 5: Team Personnel Transactions 1 change

Direct operating and selling, general and administrative expenses in the accompanying consolidated statements of operations include a net provisions provision or credit for transactions relating to the Company's sports teams for (i) waivers/contract waiver/contract termination costs, (ii) player trades and (iii) season-ending injuries ("Team personnel transactions"). Team personnel transactions were a net provision of $ 49,148 , $ 781 2,382 and $ 4,412 833 for the years three months ended June September 30, 2025 2024 and 2023, 2024, respectively. which were recorded as direct operating expenses in the accompanying consolidated statements of operations.

Note 7: Leases 26 changes

The Company's leases primarily consist of the lease of the Company's corporate offices under the Sublease Agreement (as defined below) with MSG Entertainment for the Company's principal executive offices at Two Pennsylvania Plaza in New York and a lease agreement for an aircraft. In addition, we are party to the Arena License Agreements, which are long term license agreements with MSG Entertainment that end June 30, 2055 that allow the Knicks and the Rangers to play their home games at The Garden. The Company accounts for the rights of use of The Garden pursuant to the Arena License Agreements as leases under the ASC Topic 842, Leases . The Company determines whether an arrangement contains a lease at the inception of the arrangement. If a lease is determined to exist, the lease term is assessed based on the date when the underlying asset is made available for the Company's use by the lessor. The Company's assessment of the lease term reflects the non-cancelable term of the lease, inclusive of any rent-free periods and/or periods covered by early-termination options which the Company is reasonably certain not to exercise, as well as periods covered by renewal options which the Company is reasonably certain of exercising. The Company also determines lease classification as either operating or finance at lease commencement, which governs the pattern of expense recognition and the presentation reflected in the consolidated statements of operations over the lease term.

For leases with a term exceeding 12 months, a lease liability is recorded on the Company's consolidated balance sheet at lease commencement reflecting the present value of the fixed minimum payment obligations over the lease term. A corresponding ROU asset equal to the initial lease liability is also recorded, adjusted for any prepaid rent and/or initial direct costs incurred in connection with execution of the lease and reduced by any lease incentives received.

The Company includes fixed payment obligations related to non-lease components in the measurement of ROU assets and lease liabilities, as the Company has elected to account for lease and non-lease components together as a single lease component. ROU assets associated with finance leases are presented separate from operating lease ROU assets and are included within Property and equipment, net on the Company's consolidated balance sheets. For purposes of measuring the present value of the Company's fixed payment obligations for a given lease, the Company uses its incremental borrowing rate, determined based on information available at lease commencement, as rates implicit in the underlying leasing arrangements are typically not readily determinable. The Company's incremental borrowing rate reflects the rate it would pay to borrow on a secured basis and incorporates the term and economic environment surrounding the associated lease.

For operating leases, fixed lease payments are recognized as lease expense on a straight-line basis over the lease term. For finance leases, the initial ROU asset is depreciated on a straight-line basis over the lease term, along with recognition of interest expense associated with accretion of the lease liability, which is ultimately reduced by the related fixed payments. For leases with a term of 12 months or less ("short-term leases"), any fixed lease payments are recognized on a straight-line basis over the lease term and are not recognized on the consolidated balance sheet. Variable lease costs for both operating and finance leases, if any, are recognized as incurred and such costs are excluded from lease balances recorded on the consolidated balance sheet.

The Company is party to the Sublease Agreement for the Company's principal executive offices at Two Pennsylvania Plaza in New York. The sublease ROU assets and liabilities are recorded on the balance sheet at lease commencement based on the present value of minimum base rent and other fixed payments over the reasonably certain lease term.

In November 2021, Sphere Entertainment entered into a new lease for principal executive offices at Two Pennsylvania Plaza in New York, which was assigned to MSG Entertainment in connection with the MSGE Distribution (the "New MSGE Lease Agreement"). In accordance with the terms of the Prior Sublease Agreement (as defined below) and the New MSGE Lease Agreement, the lease term of the Prior Sublease Agreement was extended until October 31, 2024. The Company accounted for this extension as a lease remeasurement and remeasured the ROU asset and operating lease liability utilizing the Company's incremental borrowing rate as of the date of remeasurement.

The Company's leases primarily consist of the lease of the Company's principal executive offices at Two Pennsylvania Plaza in New York under the Sublease Agreement with MSG Entertainment (as defined below) and a lease agreement for an aircraft. In addition, the Company accounts for the rights of use of The Garden pursuant to the Arena License Agreements (as defined below) as leases under the ASC Topic 842, Leases. See Note 7 to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2025 for more information regarding the Company's accounting policies associated with its leases.

During the second quarter of fiscal year 2025, the Company amended and restated its prior sublease agreement with MSG Entertainment (the "Prior Sublease Agreement") to enter into a short term lease for new principal executive offices through December 31, 2024. The Company recorded the short term operating lease costs for this amendment within Selling, general and administrative expenses in the accompanying consolidated statements of operations for the year ended June 30, 2025.

In January 2025, the Company entered into a new sublease agreement with MSG Entertainment for new principal executive offices at Two Pennsylvania Plaza in New York with a lease term which ends January 31, 2046 (the "New Sublease Agreement" and together with the Prior Sublease Agreement, the "Sublease Agreement") and fixed lease payment obligations of $ 167,444 over the lease term. The Company recorded a lease right-of-use asset and liability in the accompanying consolidated balance sheet as of June 30, 2025 based on the present value of minimum fixed lease payments over the lease term utilizing the Company's incremental borrowing rate as of the lease commencement date. In addition, the Company entered into a commitment whereby if the MSG Entertainment's lease for principal executive offices at Two Pennsylvania Plaza in New York were terminated under certain circumstances, the Company would be required to enter into a new lease for executive offices at Two Pennsylvania Plaza directly with the landlord, with a consistent lease term through January 31, 2046.

As of September 30, 2025, the Company's exis ting operating leases, which are recorded in the accompanying financial statements, have remaining lease terms ranging from 6 to 30 years. In certain ins tances, leases include options to renew, with varying option terms. The exercise of lease renewals, if available under the lease options, is generally at the Company's discretion and is considered in the Company's assessment of the respective lease term. The Company's lease agreements do not contain material residual value guarantees or material restrictive covenants.

The following table summarizes the right-of-use assets and lease liabilities recorded in the accompanying consolidated balance sheets as of September 30, 2025 and June 30, 2025:

Line Item in the Company's Consolidated Balance Sheet September 30,

Right-of-use assets:

Right-of-use lease assets $ 758,422 $ 760,456

Operating leases, current (a)

Operating lease liabilities, current $ 54,233 $ 52,618

Operating leases, noncurrent (a)

Operating lease liabilities, noncurrent 829,365 841,050

Total lease liabilities $ 883,598 $ 893,668

(a) As of September 30, 2025, Operating lease liabilities, current and Operating lease liabilities, noncurrent included balances o f $ 47,655 and $ 800,692 , r espectively, that are payable to MSG Entertainment. As of June 30, 2025, Operating lease liabilities, current and Operating lease liabilities, noncurrent included balances of $ 46,040 and $ 811,190 , respectively, that are payable to MSG Entertainment.

The following table summarizes the activity recorded within the accompanying consolidated statements of operations for the three months ended September 30, 2025 and 2024:

Line Item in the Company's Consolidated

Statement of Operations Three Months Ended September 30,

Operating lease costs Direct operating expenses $ 1,311 $ 1,311

Operating lease costs Selling, general and administrative expenses

Total lease cost $ 5,004 $ 3,782

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Note 8: Goodwill and Intangible Assets 5 changes

During the first quarter of fiscal year 2025, 2026, the Company performed its annual impairment test of goodwill and determined that there were no impairments of goodwill identified as of the impairment test date. The Company's carrying amount of goodwill was $ 226,523 as of June September 30, 2025 and 2024. June 30, 2025 was $ 226,523 .

The Company's indefinite-lived intangible assets as of September 30, 2025 and June 30, 2025 were as follows:

Sports franchises $ 102,564

Photographic related rights 1,080

During the first quarter of fiscal year 2026, the Company performed its annual impairment test of identifiable indefinite-lived intangible assets and determined that there were no impairments identified as of the impairment test date.

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Note 9: Investments 15 changes

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Hard Carry Gaming, Inc. ("NRG") $ 6,333 $ 6,607

Other equity method investments 4,332 4,421 5,038

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Xtract One Technologies Inc. ("Xtract One") common stock 18,116 9,290 17,380

Other equity investments with readily determinable fair values held in trust under the Company's Executive Deferred Compensation Plan 26,680 23,536 18,837

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Total investments $ 54,720 $ 62,543

Xtract One warrants 7,315 1,604 6,995

Total investments $ 73,515 $ 54,720

(a) For During the year three months ended June September 30, 2025 and 2024, the Company recorded did not record any impairment charges and reductions or changes in carrying value resulting from observable price changes of $ 894 related to its equity securities without readily determinable fair values in Miscellaneous (expense) income, net within the accompanying consolidated statements of operations. For the year ended June 30, 2024, the Company did not have any impairment charges or changes in carrying value recorded to its equity securities without readily determinable fair values .

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The Company determined that it has the ability to exert significant influence over the investee and therefore accounts for these investments under the equity method of accounting.

In April 2023, the Company sold its controlling interest in CLG to NRG, a professional gaming and entertainment company in exchange for a noncontrolling equity interest in the combined NRG/CLG company. The Company received preferred shares representing approximately 25 % of the capital stock of NRG. The Company recorded the investment in NRG at fair value as an equity method investment. The Company deconsolidated the CLG business in the fourth fiscal quarter of 2023 and recorded a loss of $ 1,031 within Miscellaneous (expense) income, net within the Company's consolidated statement of operations for the year ended June 30, 2023. For the years ended June 30, 2025 and 2024, the Company recognized losses related to the investment in NRG of $ 929 and $ 4,412 , respectively in Miscellaneous (expense) income, net within the Company's consolidated statement of operations. As of June 30, 2025 and 2024, the Company's ownership in NRG was approximately 25 %.

The Company holds preferred shares of the capital stock of NRG, a professional gaming and entertainment company. During the three months ended September 30, 2025 and 2024, the Company recognized its net share of losses of $ 274 and $ 230 , respectively, in Miscellaneous income (expense), net within the Company's consolidated statements of operations. As of September 30, 2025 and June 30, 2025, the Company's ownership in NRG was approximately 25 %.

In June 2025, the media rights agreements between subsidiaries of MSG Networks, on the one hand, and Knicks LLC and Rangers LLC, on the other hand, were amended as further described in Note 3. Concurrent with the amendments to the media rights agreements, MSG Networks issued penny warrants to the Company exercisable for 19.9 % of the equity interests in MSG Networks. The Company has accounted for the penny warrants issued to the Company as in-substance common stock in accordance with ASC Topic 323, Investments — Equity Method and Joint Ventures, and the Company determined that it has the ability to exert significant influence over the investee. The Company recorded the investment in MSG Networks penny warrants at fair value as an equity method investment. The Company estimated the fair value of the MSG Networks warrants based on a discounted cash flow model (income approach). This approach relied on numerous assumptions and judgments within the model that were subject to various risks and uncertainties. Principal assumptions utilized, all of which are considered Level III inputs under the fair value hierarchy, include the Company's estimates of future revenue, estimates of future operating cost, margin assumptions, terminal growth rates and the discount rate applied to estimated future cash flows. During the three months ended September 30, 2025, the Company recognized no income or loss related to the MSG Networks equity method investment.

Equity Investments with Readily Determinable Fair Values

The Company holds investments in equity instruments with readily determinable fair value:

• Xtract One, a technology-driven threat detection and security solution company that is listed on the Toronto Stock Exchange under the symbol "XTRA". The Company holds common stock of Xtract One and holds warrants entitling the Company to acquire additional shares of common stock of Xtract One which are considered derivative instruments. Refer to Note 10 for further details regarding the Company's warrants, including the inputs used in determining the fair value of the warrants.

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Note 10: Fair Value Measurements 22 changes

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Warrants III 1,604 6,995

June 30, 2025 June 30, 2024

Expected volatility 70.78 % 64.15 %

Fair Value Hierarchy June September 30,

Money market accounts I $ 95,367 39,625 $ 37,594 95,367

Time deposits I 8,012 48,263 49,510

Equity investments I 44,796 32,826 36,217

Warrants III 7,315 1,604

Total assets measured at fair value $ 178,060 99,748 $ 130,316 178,060

Assets that are classified within Level I of the fair value hierarchy are valued using observable inputs that reflect quoted prices for identical assets in active markets. The carrying amount of the Company's money market accounts and time deposits approximates fair value due to their short-term maturities. Refer to Note 10 9 for further details regarding equity investments.

The Company's Level III assets consist of warrants entitling the Company to acquire additional common stock of Xtract One. The Company's warrants are included within Investments in the accompanying consolidated balance sheets. Changes in the fair value of derivative instruments are measured at each reporting date and are recorded within Miscellaneous (expense) income (expense), net in the accompanying consolidated statements of operations. The fair value of the Company's warrants in Xtract One were determined using the Black-Scholes option pricing model. The following are key assumptions used to calculate the fair value of the warrants as of June September 30, 2025 and 2024: June 30, 2025:

Expected term 1.30 1.18 years 1.80 1.30 years

Expected volatility 78.49 % 70.78 %

Risk-free interest rate 3.85 3.67 % 4.73 3.85 %

1 unchanged paragraph

Years Ended June 30,

Balance at beginning of period $ 6,995 $ 13,098

Purchases of warrants — 215

Unrealized losses on warrants ( 5,391 ) ( 6,318 )

Three Months Ended September 30,

Balance at ending beginning of period $ 1,604 $ 6,995

Unrealized gains (losses) on warrants 5,711 ( 1,044 )

Balance at end of period $ 7,315 $ 5,951

1 unchanged paragraph

Note 11: Commitments and Contingencies 16 changes

Contractual Obligations and Off-Balance Sheet Arrangements

The Company has certain future cash payments required under contracts entered into by the Company in the normal course of business.

As of June 30, 2025, future cash payments required under contracts entered into by the Company in the normal course of business in excess of one year are as follows:

Off-Balance Sheet Commitments (a)

Fiscal year ending June 30, 2026 $ 291,215 $ 68,584 $ 359,799

Fiscal year ending June 30, 2027 278,966 15,239 294,205

Fiscal year ending June 30, 2028 198,390 15,498 213,888

Fiscal year ending June 30, 2029 73,421 3,875 77,296

Fiscal year ending June 30, 2030 40,083 1,840 41,923

(a) Consist primarily of the Company's obligations under employment agreements that the Company has with its sports teams' personnel that are generally guaranteed regardless of employee injury or termination.

(b) Contractual obligations reflected on the balance sheet consist principally of the Company's obligations under employment agreements that the Company has with certain of its professional sports teams' personnel where services have been fully performed and that are being paid on a deferred basis.

(c) Pension obligations have been excluded from the table above as the timing of the future cash payments is uncertain. See Note 14 for further information on the Company's pension obligations. In addition, see Note 7 for information on the contractual obligations related to future lease payments, which are reflected on the consolidated balance sheet as lease liabilities as of June 30, 2025.

See Note 13 for further details of the outstanding balances under the Knicks Revolving Credit Facility, the Rangers Revolving Credit Facility and the Rangers NHL Advance Agreement (as defined below).

MADISON SQUARE GARDEN SPORTS CORP.

As more fully described in Note 12 to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2025, the Company's commitments consist primarily of the Company's obligations under employment agreements that the Company has with its professional sports teams' personnel that are generally guaranteed regardless of employee injury or termination. In addition, see Note 7 for more information on the contractual obligations related to future lease payments. The Company did not have any material changes in its contractual obligations, including off-balance sheet commitments, since the end of fiscal year 2025, other than activities in the ordinary course of business.

The Company is a defendant in various lawsuits. Although the outcome of these lawsuits cannot be predicted with certainty (including the extent of available insurance, if any), management does not believe that resolution of these lawsuits will have a material adverse effect on the Company.

Note 12: Debt 6 changes

1 unchanged paragraph

On September 30, 2016, New York Knicks LLC, ("Knicks LLC"), a wholly-owned wholly owned subsidiary of the Company, entered into a credit agreement (the "2016 Knicks Credit Agreement") with a syndicate of lenders providing for a senior secured revolving credit facility of up to $ 200,000 with a term of five years to fund working capital needs and for general corporate purposes.

2 unchanged paragraphs

All obligations under the Knicks Revolving Credit Facility are secured by a first lien security interest in certain of Knicks LLC's assets, including, but not limited to, (i) the Knicks LLC's membership rights in the NBA, (ii) revenues to be paid to Knicks LLC by the NBA pursuant to certain U.S. national broadcast agreements, and (iii) revenues to be paid to Knicks LLC pursuant to local media contracts.

Subject to customary notice and minimum amount conditions, Knicks LLC may voluntarily prepay outstanding loans under the Knicks Revolving Credit Facility at any time, in whole or in part, without premium or penalty (except for customary breakage costs with respect to SOFR-based loans). Knicks LLC is required to make mandatory prepayments in certain circumstances, including without limitation if the maximum available amount under the Knicks Revolving Credit Facility is greater than 350 % of qualified revenues.

In addition to the financial covenant described above, the Knicks Credit Agreement and related security agreement contain certain customary representations and warranties, affirmative covenants and events of default. The Knicks Revolving Credit Facility contains certain restrictions on the ability of Knicks LLC to take certain actions as provided in (and subject to various exceptions and baskets set forth in) the Knicks Revolving Credit Facility, including the following: (i) incurring additional indebtedness and contingent liabilities; (ii) creating liens on certain assets; (iii) making restricted payments during the continuance of an event of default under the Knicks Revolving Credit Facility; (iv) engaging in sale and leaseback transactions; (v) merging or consolidating; and (vi) taking certain actions that would invalidate the secured lenders' liens on any Knicks LLC's collateral.

The Knicks Revolving Credit Facility requires Knicks LLC to comply with a debt service ratio of at least 1.5 :1.0 over a trailing four quarter period. As of June 30, 2025, Knicks LLC was in compliance with this financial covenant .

All borrowings under the Knicks Revolving Credit Facility are subject to the satisfaction of certain customary conditions, including a representation as to the absence of a bankruptcy or insolvency event (as defined in the Knicks Credit Agreement) with respect to the obligor under any local media rights agreement. Borrowings under the Knicks Credit Agreement bear interest at a floating rate, which at the option of Knicks LLC may be either (i) a base rate plus a margin ranging from 0.250 % to 0.500 % per annum or (ii) term Secured Overnight Financing Rate ("SOFR") plus a credit spread adjustment of 0.100 % per annum plus a margin ranging from 1.250 % to 1.500 % per annum depending on the credit rating applicable to the NBA's league-wide credit facility. Knicks LLC is required to pay a commitment fee ranging from 0.250 % to 0.300 % per annum in respect of the average daily unused commitments under the Knicks Revolving Credit Facility. During The year ended June 30, 2025, the Company made principal repayments of $ 8,000 under the Knicks Revolving Credit Facility. The outstanding balance under the Knicks Revolving Credit Facility was $ 267,000 as of June 30, 2025, which was recorded as Long-term debt in the accompanying consolidated balance sheet. The interest rate on the Knicks Revolving Credit Facility as of June 30, 2025 was 5.68 %. During the years ended June 30, 2025, 2024 and 2023, the Company made interest payments of $ 16,747 , $ 18,481 and $ 13,085 , respectively, in respect of the Knicks Revolving Credit Facility.

1 unchanged paragraph

Notes to the financial statements 231 changes

Report of Independent Registered Public Accounting Firm

To the stockholders and the Board of Directors of Madison Square Garden Sports Corp.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Madison Square Garden Sports Corp. and subsidiaries (the "Company") as of June 30, 2025 and 2024, the related consolidated statements of operations, comprehensive (loss) income, cash flows, and equity, for each of the three years in the period ended June 30, 2025, and the related notes and the consolidated financial statement Schedule II listed in the Index at Item 15 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of June 30, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended June 30, 2025, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of June 30, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated August 12, 2025 expressed an unqualified opinion on the Company's internal control over financial reporting.

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Related Party Transactions — Refer to Note 17 to the financial statements

Critical Audit Matter Description

Certain members of the Dolan family, including certain trusts for the benefit of members of the Dolan family (collectively, the "Dolan Family Group") is the majority beneficial owner of the Company, Sphere Entertainment Co., Madison Square Garden Entertainment Corp., AMC Networks, Inc., and other related entities. In addition, there are overlapping directors and executive officers between the entities. Each of these companies has been identified as a related party at June 30, 2025. The Company had entered into a number of transactions with related parties, including, but not limited to agreements for use of the Madison Square Garden Arena, media rights, sales and service representation, team sponsorship allocation, sublease of office space, and other services, as well as certain shared executive support costs for the Company's Executive Chairman and Chief Executive Officer, the Company's Vice Chairman, and the Company's Executive Vice President.

We identified the evaluation of the Company's identification of related parties and related party transactions as a critical audit matter. This required a high degree of auditor judgment and an increased extent of effort when performing audit procedures to evaluate the reasonableness of management's procedures performed to identify related parties and related party transactions of the Company.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the Company's identification of related parties and related party transactions included the following:

• We tested the effectiveness of internal controls over the Company's related party process, including controls over the identification of the Company's related party relationships and transactions, the authorization and approval of transactions with related parties, the allocation of revenues and operating expenses among related parties, and the accounting, classification and disclosure of relationships and transactions with related parties in the financial statements;

• Inquired with executive officers including the Company's internal legal counsel, key members of management, including non-finance and non-accounting personnel, and the Audit Committee of the Board of Directors regarding related party relationships and transactions;

• Read agreements and contracts with and between related parties and, in certain cases third parties, and evaluated whether authorization and approvals were obtained and the terms and other information about transactions are consistent with explanations from inquiries and other audit evidence obtained about the business purpose of the transactions;

• With the assistance of our data specialists, we analyzed the general ledger detail to identify potential undisclosed transactions with related parties;

• Compared the Company's reconciliation of applicable accounts to related parties' records of transactions and balances;

• Received confirmations from related parties, and, in certain cases third parties, and compared responses to the Company's records;

• Performed the following procedures to identify information related to potential undisclosed transactions between the Company and related parties that may also include third parties:

◦ Read the Company's minutes from meetings of the Board of Directors and related committees of the Board of Directors;

◦ Inspected annual compliance questionnaires completed by the Company's directors and officers;

◦ Read publicly available sources including the Company's public filings and press releases as well as certain analyst and industry reports; and

◦ Listened to or read transcripts of the Company's earnings calls.

/s/ Deloitte & Touche LLP

We have served as the Company's auditor since 2020.

Report of Independent Registered Public Accounting Firm

To the stockholders and the Board of Directors of Madison Square Garden Sports Corp.

Opinion on Internal Control over Financial Reporting

We have audited the internal control over financial reporting of Madison Square Garden Sports Corp. and subsidiaries (the "Company") as of June 30, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of June 30, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended June 30, 2025 of the Company and our report dated August 12, 2025, expressed an unqualified opinion on those financial statements.

The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control over Financial Reporting

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Deloitte & Touche LLP

MADISON SQUARE GARDEN SPORTS CORP.

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

Cash and cash equivalents $ 144,617 $ 89,136

Restricted cash 8,571 5,771

Accounts receivable, net 25,855 33,781

Net related party receivables 3,582 32,255

Prepaid expenses 43,417 30,956

Other current assets 25,053 25,043

Total current assets 251,095 216,942

Property and equipment, net 28,962 28,541

Right-of-use lease assets 760,456 694,566

Indefinite-lived intangible assets 103,644 103,644

Goodwill 226,523 226,523

Investments 54,720 62,543

Deferred tax assets, net 34,821 —

Other assets 12,753 13,533

Total assets $ 1,472,974 $ 1,346,292

See accompanying notes to consolidated financial statements.

MADISON SQUARE GARDEN SPORTS CORP.

CONSOLIDATED BALANCE SHEETS (Continued)

(in thousands, except per share data)

LIABILITIES AND EQUITY

Current Liabilities:

Accounts payable $ 9,336 $ 9,900

Net related party payables 4,807 6,718

Accrued liabilities:

Employee-related costs 98,924 133,930

League-related accruals 196,567 120,876

Other accrued liabilities 13,093 21,613

Operating lease liabilities, current 52,618 50,267

Deferred revenue 164,178 148,678

Total current liabilities 563,523 521,982

Long-term debt 267,000 275,000

Operating lease liabilities, noncurrent 841,050 749,952

Defined benefit obligations 4,086 4,103

Other employee-related costs 78,092 43,493

Deferred tax liabilities, net — 16,925

Deferred revenue, noncurrent 662 1,147

Total liabilities 1,754,413 1,612,602

Commitments and contingencies (see Note 12)

1 unchanged paragraph

and 151 more changes in the filing

Note 13: Share-based Compensation 6 changes

The Company has two share-based compensation plans: the 2015 Employee Stock Plan (as amended, the "Employee Stock Plan") and the 2015 Stock Plan for Non-Employee Directors (as amended, the "Non-Employee Director Plan").

Under the Employee Stock Plan, the Company is authorized to grant incentive stock options, non-qualified stock options, restricted shares, restricted stock units ("RSUs"), performance RSUs ("PSUs"), stock appreciation rights and other equity-based awards. The Company may grant awards for up to 2,650 shares of the Company's Class A Common Stock (subject to certain adjustments). Options and stock appreciation rights under the Employee Stock Plan must be granted with an exercise price of not less than the fair market value of a share of the Company's Class A Common Stock on the date of grant and must expire no later than 10 years from the date of grant (or up to one additional year in the case of the death of a holder). The terms and conditions of awards granted under the Employee Stock Plan, including vesting and exercisability, are determined by the Compensation Committee of the Board of Directors ("Compensation Committee") and may include terms or conditions based upon performance criteria. RSUs that were awarded under the Employee Stock Plan generally vest ratably over three years , with PSUs generally subject to three-year cliff vesting, subject to certain performance conditions. RSUs and PSUs that were awarded by the Company to its employees will settle in shares of the Company's Class A Common Stock (either from treasury or with newly issued shares), or, at the option of the Compensation Committee, in cash.

Under the Non-Employee Director Plan, the Company is authorized to grant non-qualified stock options, restricted shares, restricted stock units, stock appreciation rights and other equity-based awards. The Company may grant awards for up to 260 shares of the Company's Class A Common Stock (subject to certain adjustments). Options under the Non-Employee Director Plan must be granted with an exercise price of not less than the fair market value of a share of the Company's Class A Common Stock on the date of grant and must expire no later than 10 years from the date of grant (or up to one additional year in the case of the death of a holder). The terms and conditions of awards granted under the Non-Employee Director Plan, including vesting and exercisability, are determined by the Compensation Committee. Unless otherwise provided in an applicable award agreement, options granted under this plan will be fully vested and exercisable upon the date of grant. Unless otherwise provided in an applicable award agreement, restricted stock units granted under this plan will be fully vested, upon the date of grant and will settle in shares of the Company's Class A Common Stock (either from treasury or with newly issued shares), or, at the option of the Compensation Committee, in cash, on the first business day after ninety days from the date the director's service on the Board of Directors ceases or, if earlier, upon the director's death.

In connection with the Sphere Distribution, pursuant to the terms of the incentive plans and award agreements, (i) each holder of an RSU and PSU granted under the Employee Stock Plan received one Sphere Entertainment RSU or PSU in respect of every one Company RSU or PSU owned on the Record Date and continues to be entitled to a share of the Company's Class A Common Stock (or cash or other property) for each Company RSU or PSU in accordance with the existing award agreement, (ii) one share of Sphere Entertainment Class A Common Stock was issued under the Sphere Entertainment Non-Employee Director Plan in respect of every one RSU outstanding under the Company's Non-Employee Director Plan, which remain outstanding and continue to be entitled to a share of the Company's Class A Common Stock (or cash or other property) in accordance with the existing award agreement, and (iii) each option to purchase the Company's Class A Common Stock became two options: one option to acquire Sphere Entertainment Class A Common Stock and one option to acquire the Company's Class A Common Stock. The existing exercise price was allocated between the Company's options and the new Sphere Entertainment options based upon the volume-weighted average prices of the Sphere Entertainment Class A Common Stock and the Company's Class A Common Stock using the 10 -day volume weighted average trading price immediately following the Sphere Distribution, and the underlying share amount was consistent with the one -to-one distribution ratio in the Sphere Distribution. Other than the split of the options and the allocation of the existing exercise price, there were no additional adjustments to the existing options in connection with the Sphere Distribution.

See Note 15 to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2025 for more information regarding the Company's 2015 Employee Stock Plan (the "Employee Stock Plan") and its 2015 Stock Plan for Non-Employee Directors.

Share-based compensation expense is recognized in the consolidated statements of operations as a component of Selling, general and administrative expenses. Share-based compensation expense was $ 4,844 and $ 4,268 for the three months ended September 30, 2025 and 2024, respectively. There were no costs related to share-based compensation that were capitalized for the three months ended September 30, 2025 and 2024.

1 unchanged paragraph

Note 14: Stock Repurchase Program 5 changes

Amounts in this footnote are in thousands, except for the number of shares repurchased and per share data.

On October 6, 2022, the Company's Board of Directors authorized a $ 75,000 accelerated share repurchase ("ASR") program under the Company's existing share repurchase authorization. On October 28, 2022, the Company entered into a $ 75,000 ASR agreement with JPMorgan Chase Bank, National Association ("JP Morgan"). Pursuant to the ASR agreement, the Company made a payment of $ 75,000 to JP Morgan and JP Morgan delivered 388,777 initial shares of Class A Common Stock to the Company on November 1, 2022, representing 80 % of the total shares expected to be repurchased under the ASR (determined based on the closing price of the Company's Class A Common Stock of $ 154.33 on October 28, 2022). The ASR was completed on January 31, 2023 with JP Morgan delivering 67,681 additional shares of Class A Common Stock to the Company upon final settlement. The average purchase price per share for shares of Class A Common Stock purchased by the Company pursuant to the ASR was $ 164.31 .

The ASR was accounted for as a repurchase of shares and as an equity forward contract indexed to the Company's Class A Common Stock. The equity forward contract was classified as an equity instrument under ASC Subtopic 815-40. The Company has treated the initial and final shares of Class A Common Stock delivered as treasury shares as of the date the shares were physically delivered in computing the weighted average shares of outstanding Class A Common Stock for both basic and diluted earnings per share.

Effective as of October 1, 2015, the Company's board of directors authorized the repurchase of up to $ 525,000 of the Company's Class A Common Stock, par value $ 0.01 per share ("Class A Common Stock"). Under the authorization, shares of Class A Common Stock may be purchased from time to time in open market or private transactions, block trades or such other matter manner as the Company may determine, in accordance with applicable insider trading and other securities laws and regulations. The timing and amount of purchases will depend on market conditions and other factors.

During the year three months ended June September 30, 2025 and 2024, the Company did no t not repurchase any shares under its share repurchase program. As of June September 30, 2025, the Company had $ 184,639 of availability remaining under its stock repurchase authorization .

1 unchanged paragraph

Note 15: Related Party Transactions 5 changes

Current Related Party Arrangements

As of June September 30, 2025, certain members of the Dolan family, including certain trusts for the benefit of members of the Dolan family, (collectively, the "Dolan Family Group"), for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, collectively beneficially own owned 100 % of the Company's outstanding Class B Common Stock, par value $ 0.01 per share ("Class B Common Stock") and own owned approximately 2.6 3.2 % of the Company's outstanding Class A Common Stock. Such shares of the Company's Class A Common Stock and Class B Common Stock, collectively, represent represented approximately 70.7 70.8 % of the aggregate voting power of the Company's outstanding common stock. Members of the Dolan family are also the controlling stockholders of Sphere Entertainment, MSG Entertainment and AMC Networks Inc. ("AMC Networks").

The Company was party to the following agreements and/or arrangements with MSG Entertainment as of June September 30, 2025:

• Arena license agreements, entered into in April 2020 (the "Arena License Agreements"), pursuant to which MSG Entertainment (i) provides the right to use The Garden for games of the Knicks and the Rangers for a 35-year term in exchange for arena license fees, (ii) shares revenues collected for suite and club licenses, (iii) operates and manages the sale of the sports teams' merchandise at The Garden for a commission, (iv) operates and manages the sales of food and beverage concessions in exchange for 50 % of net profits from sales and catering services during Knicks and Rangers home games, (v) shares revenues collected for the sale of venue indoor signage space and sponsorship rights at The Garden that are not specific to our teams, (vi) provides day of game services, and (vii) provides other general services within The Garden;

8 unchanged paragraphs

The Company was also party to the following agreements and/or arrangements with Sphere Entertainment (including through its subsidiary MSG Networks) as of June September 30, 2025 :

2 unchanged paragraphs

Note 16: Income Taxes 30 changes

Income tax expense (benefit) attributable to operations is comprised of the following components:

Years Ended June 30,

Federal $ 30,094 $ 27,605 $ 23,161

State and other 26,841 26,427 6,110

Deferred (benefit) expense:

Federal ( 27,976 ) ( 3,506 ) ( 643 )

State and other ( 23,793 ) ( 3,629 ) 15,665

Income tax expense $ 5,166 $ 46,897 $ 44,293

The income tax expense attributable to operations differs from the amount derived by applying the statutory federal rate to pre-tax (loss) income principally due to the effect of the following items:

Years Ended June 30,

Federal tax (benefit) expense at statutory federal rate $ ( 3,627 ) $ 22,190 $ 18,883

State income taxes, net of federal benefit 2,686 18,348 15,066

Change in the estimated applicable tax rate used to determine deferred taxes 47 29 1,788

Capital loss carryover — — ( 2,728 )

GAAP income of consolidated partnership attributable to non-controlling interests — — 455

Return to provision ( 87 ) ( 1,446 ) 366

Change in valuation allowance 177 1,432 2,728

Nondeductible officers' compensation 5,291 5,899 5,238

Nondeductible disability insurance premiums expense 1,710 1,349 1,227

Other nondeductible expenses 559 631 558

Dividends received deduction ( 1,159 ) ( 814 ) —

Excess tax benefit related to shared based-payments awards ( 468 ) ( 265 ) 636

Income tax expense $ 5,166 $ 46,897 $ 44,293

MADISON SQUARE GARDEN SPORTS CORP.

In general, the Company is required to use an estimated annual effective tax rate to measure the tax benefit or tax expense recognized in an interim period. The estimated annual effective tax rate exceeds the statutory federal tax rate of 21 % primarily due to state taxes, nondeductible officers' compensation, and players' disability insurance premiums expense, partially offset in the current period by the impact of dividends received. The estimated annual effective tax rate is revised on a quarterly basis.

Income tax benefit for the three months ended September 30, 2025 of $ 8,555 reflects an effective tax rate of 49 %.

Income tax benefit for the three months ended September 30, 2024 of $ 7,048 reflects an effective tax rate of 48 %.

During the three months ended September 30, 2025 and 2024, the Company made income tax payments, net of refunds, of $ 11,836 and $ 10,280 , respectively.

The Company was notified in March 2025 that the State of New York was commencing an audit of the state income tax returns for the fiscal years ended June 30, 2022 and 2023. The audit was finalized in July 2025 and resulted in no material changes.

On July 4, 2025, the Reconciliation Bill, commonly known as the "One Big Beautiful Bill Act" (the "OBBBA"), was enacted into law. The OBBBA includes a broad range of tax reform provisions affecting businesses, including extending and modifying certain key Tax Cuts & Jobs Act provisions (both domestic and international), expanding certain Inflation Reduction Act incentives and accelerating the phase-out of others. The Company evaluated these provisions and concluded the provisions did not have a material impact on the Company's consolidated financial statements.

Note 17: Additional Financial Information 13 changes

Prepaid expenses consisted of the following:

Concentration of Risk

Financial instruments that may potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents and accounts receivable. Cash and cash equivalents are invested in money market accounts and time deposits. The Company monitors the financial institutions and money market funds where it invests its cash and cash equivalents with diversification among counterparties to mitigate exposure to any single financial institution. The Company's emphasis is primarily on safety of principal and liquidity and secondarily on maximizing the yield on its investments.

The following individual non-related parties accounted for the following percentages of the Company's consolidated receivable balances recorded in Accounts receivable, net and Other assets in the accompanying consolidated balance sheets:

The following individual non-related parties accounted for the following percentages of the Company's consolidated revenue balances:

Years Ended June 30,

Entity A 14 % 13 % 13 %

Revenues from MSG Networks amounted to $ 157,389 , $ 175,325 and $ 172,340 for the years ended June 30, 2025, 2024 and 2023, which represented 15 %, 17 % and 19 %, respectively, of the Company's consolidated revenues (see Note 17).

As of June 30, 2025, approximately 115 full-time and part-time employees, which represent approximately 11.4 % of the Company's workforce, are subject to CBAs. There are 38 union employees subject to CBAs that expired as of June 30, 2025 and there are no union employees subject to CBAs that will expire by June 30, 2026.

The following table summarizes the composition and amounts of prepaid expenses included in the accompanying consolidated balance sheets as of September 30, 2025 and June 30, 2025:

Prepaid employee-related costs $ 34,850 73,220 $ 25,134 34,850

Other prepaid expenses 29,280 8,567 5,822

Total prepaid expenses $ 43,417 102,500 $ 30,956 43,417

1 unchanged paragraph

Note 18: Segment Information 19 changes

Years Ended June 30,

The Company operates as one operating segment. The Company's CODM is its Executive Chairman and Chief Executive Officer, who reviews financial information presented on a consolidated basis. The CODM uses consolidated net (loss) income (loss) to assess financial performance and allocate resources. Consolidated net (loss) income (loss) is used by the CODM to make key operating decisions, such as entering into significant contracts, setting strategic objectives for the Company, and approving annual operating budgets, including approving significant investments in team personnel, and other key executive leadership positions. The CODM does not review segment assets at a different asset level or category than those disclosed in the accompanying consolidated balance sheets.

The following table presents selected financial information with respect to the Company's single operating segment for the years three months ended June September 30, 2025 2024 and 2023: 2024:

Three Months Ended September 30,

6 unchanged paragraphs

Depreciation and amortization ( 3,218 ) ( 3,164 ) ( 3,577 )

Interest income 4,034 2,787 2,392

Interest expense ( 21,652 ) ( 27,589 ) ( 22,884 )

Miscellaneous (expense) income, net ( 14,462 ) ( 15,568 ) 25,239

Income tax expense ( 5,166 ) ( 46,897 ) ( 44,293 )

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Net (loss) income $ ( 22,438 ) $ 58,771 $ 45,628

Depreciation and amortization ( 811 ) ( 782 )

Interest income 578 864

Interest expense ( 5,591 ) ( 6,055 )

Miscellaneous income (expense), net 15,085 ( 1,126 )

Income tax benefit 8,555 7,048

Net loss $ ( 8,798 ) $ ( 7,542 )

(a) Ticketing and sponsorship sales related expenses consist of (i) expenses related to selling tickets to our sports teams' home games and primarily include employee compensation and related benefits, credit card fees, and other general and administrative expenses, and (ii) fees related to the Company's Sponsorship Sales and Service Representation Agreements and sponsorship fulfillment costs. See Note 17 15 for further details related to the Sponsorship Sales and Service Representation Agreements.

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(d) Operating lease expenses and other rental expenses associated with the Arena License Agreements primarily consist of operating lease costs, commercial rent tax, and other expenses associated with the Arena License Agreements. See Note 17 15 for further details related to the Arena License Agreements.

(e) Team operating expenses primarily consist of team personnel compensation (net of escrow), NBA luxury tax, expenses associated with day-to-day team operations, including for travel and player insurance, and operating costs of the Company's training center in Greenburgh, NY.

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MD&A 247 changes

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 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:

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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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• a pandemic or another public health emergency including a resurgence of the COVID-19 pandemic, and our ability to effectively manage the impacts, including labor market disruptions;

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• the impact of governmental regulations or laws, changes in how those regulations and laws are interpreted and the continued benefit of certain tax exemptions (including for The Garden) or tax deductions and the ability for us and Madison Square Garden Entertainment Corp. ("MSG Entertainment") to maintain necessary permits or licenses;

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• the factors described under "Part I — Item 1A. Risk Factors" included in this Annual Report on Form 10-K.

• the factors described under "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended June 30, 2025 (our "2025 Form 10-K").

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Sphere Distribution and MSGE Distribution

On April 17, 2020, the Company distributed all of the outstanding common stock of Sphere Entertainment Co. (formerly Madison Square Garden Entertainment Corp. and referred to herein as "Sphere Entertainment") to its stockholders (the "Sphere Distribution").

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and 239 more changes in the filing

Market risk 3 changes

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and 3 more changes in the filing

Controls and procedures 9 changes

and 9 more changes in the filing

Exhibits 32 changes

and 32 more changes in the filing