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Mar 31
MSG Sports Q3 2025 Earnings Report
Madison Square Garden Sports Corp. reported its fiscal third quarter results for 2025, showing a decrease in revenues and operating income compared to the prior year.
Key Takeaways
Madison Square Garden Sports Corp. reported revenues of $424.2 million for the fiscal third quarter ended March 31, 2025, a 1% decrease from the prior year. Operating income decreased by 59% to $32.3 million, and adjusted operating income decreased by 58% to $36.9 million, primarily due to increased direct operating expenses and decreased revenues.
Revenues for Q3 2025 were $424.2 million, a 1% decrease from $430.0 million in Q3 2024.
Operating income for Q3 2025 was $32.3 million, a 59% decrease from $79.7 million in Q3 2024.
Adjusted operating income for Q3 2025 was $36.9 million, a 58% decrease from $88.7 million in Q3 2024.
The decrease in revenues was primarily due to lower local media rights fees and lower food, beverage, and merchandise sales, partially offset by higher sponsorship, signage, and suite revenues.
MSG Sports
MSG Sports
Forward Guidance
The company anticipates continued impact from the evolving landscape for local media rights due to proposed amendments to the Knicks' and Rangers' local media rights agreements, effective January 1, 2025. These amendments include reductions in annual rights fees and elimination of annual rights fee escalators.
Positive Outlook
- Strong demand for 2025-26 Knicks and Rangers season ticket renewals.
- Continued robust demand for the Knicks and Rangers driving per-game revenue growth.
- Company remains confident in the value of owning marquee professional sports franchises.
- Higher net sales of existing sponsorship and signage inventory.
- Higher net sales of suite products.
Challenges Ahead
- Expected reductions in local media rights fees for the 2024-25 season.
- Impact of Knicks' and Rangers' rosters for the 2024-25 seasons on financial results.
- Combined two fewer New York Knicks and New York Rangers games played at The Garden compared to prior year.
- Lower average per-game revenue for food, beverage, and merchandise sales.
- Increased direct operating expenses, primarily due to higher net provisions for league revenue sharing expense and NBA luxury tax.