Summary of Reported Results from Operations
For the fiscal 2024 second quarter, revenues of $326.9 million decreased $26.8 million, or 8%, as compared to the prior year period. This decrease
was primarily due to the Knicks and Rangers playing a combined nine fewer regular season home games at the Madison Square Garden Arena (“The Garden”) during the fiscal 2024 second quarter as compared to the prior year period. As a result,
pre/regular season ticket-related revenues, suite revenues and sponsorship and signage revenues all decreased as compared to the prior year period. The decrease in revenues was partially offset by higher local media rights fees and revenues from
league distributions.
Pre/regular season ticket-related revenues decreased $19.0 million, as compared to the prior year period, primarily due to the
Knicks and Rangers playing fewer games at The Garden during the fiscal 2024 second quarter, partially offset by higher average per-game revenue.
Suite revenues decreased $5.9 million, as compared to the prior year period, primarily due to the Knicks and Rangers playing fewer games at The Garden
during the fiscal 2024 second quarter, partially offset by higher net sales of suite products, including revenue related to new premium hospitality offerings which were made available at the start of the
2023-24 seasons.
Sponsorship and signage revenues decreased $5.8 million as compared to the prior year
period, primarily due to the Knicks and Rangers playing fewer games at The Garden during the fiscal 2024 second quarter.
Local media rights fees
increased $2.0 million as compared to the prior year period, primarily due to contractual rate increases. In addition, revenues from league distributions increased $1.7 million as compared to the prior year period, primarily due to higher
national media rights fees, partially offset by lower other league distributions.
Direct operating expenses of $232.2 million increased
$6.5 million, or 3%, as compared to the prior year period. This increase was primarily driven by higher team personnel compensation of $12.2 million and higher net provisions for league revenue sharing expense (net of escrow and excluding
playoffs) of $2.6 million, both as compared to the prior year period. These increases were partially offset by a decrease in operating lease costs under the arena license agreements with MSG Entertainment of $7.3 million due to the Knicks
and Rangers playing fewer games at The Garden during the fiscal 2024 second quarter, and other net cost decreases.
Selling, general and administrative
expenses of $65.1 million decreased $10.6 million, or 14%, as compared to the prior year period. This decrease was primarily driven by lower employee compensation and related benefits of $7.8 million, mainly due to executive
management transition costs recognized in the prior year period, and lower other general and administrative expenses.
Operating income of
$28.8 million decreased $22.7 million, or 44%, as compared to the prior year period, primarily due to the decrease in revenues and, to a lesser extent, the increase in direct operating expenses, partially offset by lower selling, general
and administrative expenses. Adjusted operating income of $37.0 million decreased $27.4 million, or 43%, as compared to the prior year period, primarily due to the decrease in revenues and, to a lesser extent, the increase in direct
operating expenses, partially offset by a decrease in selling, general and administrative expenses.
About Madison Square Garden Sports Corp.
Madison Square Garden Sports Corp. (MSG Sports) is a leading professional sports company, with a collection of assets that includes the New York
Knicks (NBA) and the New York Rangers (NHL), as well as two development league teams – the Westchester Knicks (NBAGL) and the Hartford Wolf Pack (AHL). MSG Sports also operates a professional sports team
performance center – the MSG Training Center in Greenburgh, NY. More information is available at www.msgsports.com.
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