Madison Square Garden Sports Corp. has reported its fiscal 2025 fourth quarter and full-year results, highlighting the New York Knicks' participation in the NBA playoffs, which included nine home playoff games at the Madison Square Garden Arena. The fiscal 2025 fourth quarter saw a decrease in revenues to $204.0 million, down $23.3 million or 10% compared to the prior year quarter. Operating income also decreased significantly to an operating loss of $22.6 million, compared to operating income of $52.3 million in the prior year quarter.
For the full fiscal year 2025, the company reported revenues of $1,039.2 million, representing an increase of $12.1 million or 1% compared to the prior year. However, operating income decreased to $14.8 million, a substantial drop of $131.2 million compared to the prior year.
The decrease in revenues for the fourth quarter was primarily attributed to lower playoff-related revenues, lower revenues from leagues distributions, and lower food, beverage, and merchandise sales. The decrease in operating income was primarily driven by an increase in direct operating expenses and a decrease in revenues.
It's important to note that the company's executive chairman and CEO, James L. Dolan, emphasized the growth in per-game revenues and the Knicks' postseason run to the eastern conference finals. Despite the decrease in operating income, Dolan expressed confidence in the value of owning two professional sports franchises and expected continued strong demand for the Knicks and Rangers.
Notably, the company's amended media rights agreements with MSG Networks led to reductions in annual rights fees payable to the Knicks and Rangers, as well as changes to contract expiration dates and the issuance of penny warrants to the company exercisable for 19.9% of the equity interests in MSG Networks.
The market has reacted to these announcements by moving the company's shares -0.8% to a price of $200.8525. If you want to know more, read the company's complete 8-K report here.
