Madison Square Garden Sports Corp.

For fiscal 2026, MSG Sports reported total revenue of $1.15 billion and adjusted operating income of $58.7 million. In the fourth quarter, revenue was $278.7 million versus $24 million in the prior-year period, with event-related revenue of $200.7 million up 43% year over year and sponsorship/signage revenue of $39.1 million up 23% year over year; media rights fees were $27.7 million and essentially unchanged year over year. Fourth-quarter adjusted operating income was $39.6 million versus an adjusted operating loss of $16.8 million a year earlier. Looking ahead, management expects fiscal 2027 revenue growth across all major categories, but also higher team compensation, higher luxury tax, and higher revenue sharing expense; the NHL will have one more regular-season home game and one fewer preseason home game in fiscal 2027. Separately, management said the proposed spin-off could be completed by the end of October, and they estimate the tax-law changes would add about $60 million in income tax expense in fiscal 2028 before considering the spin-off.

Jamaal T. Lesane framed the year as a validation of the company’s sports asset value, highlighting the Knicks championship, record playoff demand, and continued fan engagement across ticketing, merchandise, media, and sponsorships. He said the proposed Rangers spin-off would create two publicly traded companies, giving shareholders a clearer way to evaluate each business and giving both entities more strategic and financial flexibility. His tone was upbeat and confident, especially around the durability of demand and the ability to monetize the teams going forward.

Paul DiCicco said the quarter benefited from playoff-related revenue gains, including $182 million of related playoff revenue in the fourth quarter versus $115.2 million a year ago, and noted that playoff revenue averaged about $20.2 million per game including non-game-day merchandise sales. He also said playoff-related direct operating expense and marketing/administrative costs ran about $11.2 million per game on average, and that Q4 SG&A included $2.9 million related to the proposed spin-off. On the balance sheet, he cited cash of approximately $164.5 million and debt of $258.5 million, consisting of $242 million under the Knicks revolving credit facility and $16.5 million advanced from the NHL.

Analysts focused heavily on the Rangers spin-off rationale, local media rights strategy, the tax-law implications of separation, and the financial impact of the Knicks title run. Management said the spin-off should improve strategic and financial flexibility, but did not rule out minority stake sales and said they remain confident in team valuations. On media rights, management emphasized its partnership with MSG Networks through 2028-2029 and said they are not speculating on league plans, while on taxes they estimated roughly $60 million of additional fiscal 2028 income tax expense before any spin-off impact. They also said the NHL’s new Rogers deal should increase their share of media rights fees and that a future NBA or NHL expansion would distribute fees pro rata among existing teams.