Madison Square Garden Sports Q1 Revenues Drop 26%

By Hao Liu • Friday, October 31 12:08 • Permanent Link

Madison Square Garden Sports Corp. (NYSE: MSGS) has reported its financial results for the fiscal first quarter ended September 30, 2025. The company generated revenues of $39.5 million, reflecting a decrease of $13.9 million, or 26%, as compared to the prior year period.

Operating loss for the quarter was reported at $27.4 million, representing an increase of $19.2 million from the prior year period. Adjusted operating loss stood at $20.8 million, marking an increase of $18.5 million from the prior year period.

The decrease in revenues was primarily driven by lower revenues from league distributions, which decreased by $11.4 million, and local media rights fees, which decreased by $2.3 million as compared to the prior year period. Direct operating expenses increased by $0.1 million, or 1%, primarily due to higher net provisions for certain team personnel transactions.

Selling, general and administrative expenses increased by $5.2 million, or 10%, as compared to the prior year period. This increase was primarily driven by higher costs related to the company's services agreement with Madison Square Garden Entertainment Corp., higher operating lease costs, higher employee compensation and related benefits, and higher other general and administrative expenses.

MSG Sports reported that the combined average season ticket renewal rate for the New York Knicks and New York Rangers is approximately 94% for the 2025-26 seasons. The company also announced a new multi-year marketing partnership with Game 7, which includes naming the multi-platform sports and entertainment brand as the first-ever jersey patch partner of the Rangers.

Madison Square Garden Sports Corp. Executive Chairman and CEO James L. Dolan expressed confidence in the value of owning the two marquee professional sports franchises and the company's ability to generate long-term shareholder value.

The company also provided a summary of non-GAAP financial measures, defining adjusted operating income (loss) and its significance as an appropriate measure for evaluating the operating performance of the company. Today the company's shares have moved 0.07% to a price of $224.77. If you want to know more, read the company's complete 8-K report here.

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