Madison Square Garden Sports Corp. (NYSE: MSGS) posted a drop in fourth-quarter revenue despite strong demand for New York Knicks tickets during their playoff run.
For the fiscal fourth quarter ending June 30, 2025, MSG Sports reported $204 million in revenue, down 10% from the same period last year. The company recorded an operating loss of $22.6 million, compared to operating income of $52.3 million a year ago. Adjusted operating income showed a similar swing, falling to a $16.8 million loss from $56.5 million in the prior year.
The decline was largely attributed to fewer playoff games at Madison Square Garden compared to 2024, as well as lower media rights fees and merchandise sales. Last year, both the Knicks and Rangers advanced deep into the playoffs, delivering 15 home playoff games at the Garden. This year, the Knicks carried the load with nine postseason home dates, reaching the Eastern Conference Finals, while the Rangers failed to qualify.
Playoff-related revenues dropped by $12.9 million, mainly due to the absence of Rangers playoff games, though the increase in Knicks’ per-game postseason revenue and two additional Knicks home playoff games provided some offset. League distributions also fell by $6.8 million, in part because last year included a one-time NHL territorial fee of about $7 million.
Meanwhile, local media rights revenue declined by $1.1 million, reflecting amended agreements with MSG Networks that reduced annual rights fees. Merchandise and concessions were also down slightly, pressured by fewer games and softer sales.
Direct operating expenses surged 44% year-over-year to $154.8 million, driven by team personnel transactions, higher league revenue-sharing costs, and NBA luxury tax obligations.
For the full fiscal year, MSG Sports reported $1.04 billion in revenue, up 1% from 2024. Operating income fell sharply to $14.8 million from $146 million the year before, with adjusted operating income dropping to $38.2 million from $172 million.
Executive chairman and CEO James L. Dolan highlighted the strong demand for tickets and suites but noted the challenges of the changing media landscape.
“Fiscal 2025 was highlighted by growth in per-game revenues and the Knicks’ postseason run to the Eastern Conference Finals, while it also reflected our investment in our teams and the changing local media landscape,” Dolan said in a statement. “Looking ahead, we expect continued strong demand for the Knicks and Rangers and remain confident in the value of owning two professional sports franchises.”
MSG Sports’ media landscape shifted in June when the Knicks and Rangers amended their local broadcast rights deals with MSG Networks. The new terms included fee reductions of 28% for the Knicks and 18% for the Rangers beginning in January 2025, along with the elimination of annual escalators. In exchange, MSG Sports received warrants representing up to 19.9% of equity in MSG Networks.
