MSGS · MSG Knickerbockers Corp. Class A

Madison Square Garden Sports Corp.'s fiscal 2026 third quarter results showed revenue growth of 2% to $432.2 million despite the Knicks and Rangers playing a combined five fewer regular season home games at Madison Square Garden Arena compared to the prior year. This increase was primarily driven by a $27.0 million rise in league distributions, fueled by the NBA's new national media rights deals starting in the 2025-26 season and an incremental NBA Cup-related distribution. However, this was partially offset by lower ticket-related revenues ($12.9 million decrease), local media rights fees ($4.0 million decrease), food/beverage/merchandise sales ($1.2 million decrease), and sponsorship/signage ($0.7 million decrease), though average per-game revenues rose across all key categories due to strong team demand and new Rangers jersey launches.

Profitability deteriorated sharply, with GAAP operating income plunging 94% to $2.0 million and non-GAAP adjusted operating income dropping 72% to $10.3 million. Direct operating expenses surged 12% to $354.5 million, led by $18.8 million higher team personnel compensation, $15.4 million in elevated league revenue sharing and NBA luxury tax provisions, and $5.4 million in team personnel transactions. Selling, general, and administrative expenses edged down 1% to $73.7 million, with lower professional fees offsetting executive transition costs of $6.9 million. Net loss widened to $19.983 million or $(0.83) per share from $14.227 million or $(0.59) per share.

For the nine months ended March 31, 2026, revenues grew 5% to $875.1 million, but the company posted an operating loss of $3.3 million versus $37.4 million income last year, with adjusted operating income down 65% to $19.2 million. CEO James L. Dolan highlighted per-game revenue growth from demand and announced exploration of separating the Knicks and Rangers into distinct public companies to enhance long-term shareholder value, following a February board approval. Both teams completed regular seasons post-quarter, with the Knicks in NBA playoffs.