Madison Square Garden Sports Corp. (MSGS) Bundle
A Brief History of Madison Square Garden Sports Corp.
Madison Square Garden Sports Corp. (MSG Sports) was incorporated on March 4, 2015, as an indirect, wholly-owned subsidiary of MSG Networks Inc. The company was established to operate a portfolio of professional sports teams, including the New York Knicks of the NBA and the New York Rangers of the NHL. In 2015, MSG Sports was spun off from MSG Networks, allowing shareholders to hold shares in both entities independently.
Recent Financial Performance
As of September 30, 2024, MSG Sports reported revenues of $53.3 million for the three months ended, an increase of 24% compared to $43.0 million for the same period in 2023. This growth was driven primarily by an increase in league distributions, which rose by $9.7 million.
| Financial Metric | Q1 2025 (Sep 30, 2024) | Q1 2024 (Sep 30, 2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenues | $53,307,000 | $43,046,000 | $10,261,000 | 24% |
| Direct Operating Expenses | $8,211,000 | $3,520,000 | $4,691,000 | NM |
| Selling, General & Administrative Expenses | $52,587,000 | $53,556,000 | ($969,000) | 2% |
| Operating Loss | ($8,273,000) | ($14,824,000) | $6,551,000 | 44% |
| Net Loss | ($7,542,000) | ($18,821,000) | $11,279,000 | 60% |
Cash Flow and Liquidity
For the three months ended September 30, 2024, MSG Sports reported a net cash used in operating activities of $26.2 million, a significant decrease compared to $54.1 million for the same period in 2023. The company had cash and cash equivalents of $58.1 million at the end of the quarter, alongside additional borrowing capacity of $250 million under existing credit facilities.
| Cash Flow Metric | Q1 2025 (Sep 30, 2024) | Q1 2024 (Sep 30, 2023) |
|---|---|---|
| Net Cash Used in Operating Activities | ($26,158,000) | ($54,141,000) |
| Cash and Cash Equivalents | $58,084,000 | $52,419,000 |
| Borrowing Capacity | $250,000,000 | $250,000,000 |
Equity and Stock Performance
As of September 30, 2024, MSG Sports had a total equity of $277.5 million, reflecting an accumulated deficit of $122.7 million. The company’s stock performance has been influenced by its dividends, which were declared at $7.00 per share, despite the net losses reported during the quarter.
| Equity Metric | As of Sep 30, 2024 |
|---|---|
| Total Equity | $277,529,000 |
| Accumulated Deficit | ($122,689,000) |
| Dividends Declared | $7.00 per share |
Future Outlook and Market Position
Looking ahead, MSG Sports anticipates continuing challenges due to the competitive nature of the sports industry and potential impacts from economic conditions. The company remains committed to enhancing its operational efficiency and exploring new revenue streams to support its financial health.
A Who Owns Madison Square Garden Sports Corp. (MSGS)
Ownership Structure
As of September 30, 2024, the ownership of Madison Square Garden Sports Corp. (MSGS) is primarily held by the Dolan family. The Dolan Family Group collectively beneficially owns 100% of the Company’s outstanding Class B Common Stock and approximately 3.0% of the Company’s outstanding Class A Common Stock. This ownership structure provides the Dolan family with approximately 70.9% of the aggregate voting power of the Company’s outstanding common stock.
| Share Class | Outstanding Shares | Ownership Percentage | Voting Power |
|---|---|---|---|
| Class A Common Stock | 19,465,000 | 97.0% | 29.1% |
| Class B Common Stock | 4,530,000 | 100.0% | 70.9% |
| Total Common Stock | 24,995,000 | 100.0% | 100.0% |
Financial Overview
For the three months ended September 30, 2024, Madison Square Garden Sports Corp. reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenues | $53,307,000 | $43,046,000 |
| Net Loss | $(7,542,000) | $(18,821,000) |
| Basic Loss per Share | $(0.31) | $(0.79) |
| Total Assets | $1,373,297,000 | $1,346,292,000 |
| Total Liabilities | $1,650,826,000 | $1,612,602,000 |
| Total Equity | $(277,529,000) | $(266,310,000) |
Key Stakeholders
- James Dolan - Executive Chairman and CEO, significant shareholder in Class B Common Stock.
- Dolan Family Trusts - Beneficially own a majority of Class B shares.
- Sphere Entertainment Co. - Parent company with controlling interest over MSG Networks, which also impacts MSGS.
Recent Developments
As of September 30, 2024, MSGS has not engaged in any share repurchase activities under its authorized program, which has approximately $185 million remaining under a $525 million authorization. The company continues to monitor its liquidity and capital resources closely, maintaining $52,252,000 in cash and cash equivalents as of the same date.
Madison Square Garden Sports Corp. (MSGS) Mission Statement
Mission Overview
The mission of Madison Square Garden Sports Corp. is to be the premier sports and entertainment company, delivering an unparalleled experience to fans, enhancing the value of its franchises, and maximizing shareholder returns through innovation and operational excellence.
Core Values
- Fan Engagement: Prioritizing the experience of fans through exceptional service and innovative offerings.
- Team Excellence: Fostering a culture of success and teamwork across all franchises.
- Community Impact: Committing to positively influence the communities it serves through outreach and support initiatives.
- Integrity: Upholding transparency and ethical practices in all business dealings.
Financial Performance
As of September 30, 2024, Madison Square Garden Sports Corp. reported the following financial metrics:
| Metric | Value |
|---|---|
| Revenues | $53,307,000 |
| Net Loss | $(7,542,000) |
| Basic Loss Per Share | $(0.31) |
| Cash and Cash Equivalents | $52,252,000 |
| Operating Loss | $(8,273,000) |
| Direct Operating Expenses | $8,211,000 |
| Selling, General and Administrative Expenses | $52,587,000 |
| Depreciation and Amortization | $782,000 |
Franchise Valuation
The franchises under Madison Square Garden Sports Corp. include:
- New York Knicks (NBA)
- New York Rangers (NHL)
- Hartford Wolf Pack (AHL)
- Westchester Knicks (NBA G League)
Media Rights and Revenue Streams
In fiscal year 2024, the media rights revenues for the Knicks and Rangers totaled $175.3 million. For fiscal year 2025, stated rights fees are projected to total approximately $186.7 million.
Liquidity and Capital Resources
As of September 30, 2024, MSGS had:
- Cash and cash equivalents: $52,252,000
- Available borrowing capacity: $250,000,000
- Total liabilities: $1,650,826,000
Stock Repurchase Program
As of September 30, 2024, the company had approximately $185 million remaining under its $525 million Class A Common Stock repurchase program.
Future Outlook
Adjusted operating income for fiscal year 2025 is expected to reflect higher team personnel compensation and corresponding NBA luxury tax due to the Knicks' 2024-25 season roster.
How Madison Square Garden Sports Corp. (MSGS) Works
Business Overview
Madison Square Garden Sports Corp. (MSGS) operates a portfolio of professional sports teams, including the New York Knicks (NBA) and the New York Rangers (NHL). MSGS also manages two development league teams and a training center. The company generates revenue through various channels, including ticket sales, media rights, sponsorships, and league distributions.
Financial Performance
For the three months ended September 30, 2024, MSGS reported revenues of $53,307,000, which represents a 24% increase compared to $43,046,000 for the same period in 2023. The increase in revenues was primarily driven by higher league distributions and other net revenue increases.
| Financial Metric | Q1 2024 | Q1 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenues | $53,307,000 | $43,046,000 | $10,261,000 | 24% |
| Operating Expenses | $61,580,000 | $57,890,000 | $3,690,000 | 6% |
| Operating Loss | ($8,273,000) | ($14,824,000) | $6,551,000 | 44% |
| Net Loss | ($7,542,000) | ($18,821,000) | $11,279,000 | 60% |
Revenue Breakdown
Revenue sources for MSGS include:
- Event-related revenue: $6,085,000 (Q1 2024)
- Media rights: $7,353,000 (Q1 2024)
- Sponsorship and signage: $5,188,000 (Q1 2024)
- League distributions: $34,681,000 (Q1 2024)
Operating Expenses
Operating expenses for the three months ended September 30, 2024, totaled $61,580,000, which includes:
- Direct operating expenses: $8,211,000
- Selling, general and administrative expenses: $52,587,000
- Depreciation and amortization: $782,000
Cash Flow and Liquidity
As of September 30, 2024, MSGS had cash and cash equivalents of $52,252,000, with net cash used in operating activities amounting to $26,158,000 for the quarter. The cash flow activities show a decrease in cash flow from $54,141,000 in Q1 2023, indicating improved cash management despite sustaining a net loss.
| Cash Flow Activity | Q1 2024 | Q1 2023 |
|---|---|---|
| Net Cash Used in Operating Activities | ($26,158,000) | ($54,141,000) |
| Cash and Cash Equivalents | $52,252,000 | $51,208,000 |
Debt and Equity Structure
As of September 30, 2024, MSGS reported total liabilities of $1,650,826,000 and total equity of $277,529,000. The company has a share repurchase program with approximately $185 million remaining under authorization to repurchase Class A Common Stock.
| Debt and Equity Metrics | Amount |
|---|---|
| Total Liabilities | $1,650,826,000 |
| Total Equity | $277,529,000 |
| Remaining Stock Repurchase Authorization | $185,000,000 |
Future Outlook
MSGS anticipates that its adjusted operating loss for fiscal year 2025 will reflect higher team personnel compensation and increased NBA luxury tax due to the Knicks' roster. The company continues to monitor its liquidity and funding needs closely.
How Madison Square Garden Sports Corp. (MSGS) Makes Money
Revenue Streams
Madison Square Garden Sports Corp. (MSGS) generates revenue through several key streams, primarily from its sports teams, media rights, sponsorships, and event-related activities. For the three months ended September 30, 2024, MSGS reported total revenues of $53,307,000, representing a 24% increase from $43,046,000 in the same period the previous year.
| Revenue Source | Q3 2024 ($000) | Q3 2023 ($000) | Change ($000) | Change (%) |
|---|---|---|---|---|
| Event-related (ticket sales, merchandise) | 6,085 | 5,821 | 264 | 4.5 |
| Media rights | 7,353 | 7,219 | 134 | 1.9 |
| Sponsorship, signage, suite licenses | 5,188 | 5,314 | (126) | (2.4) |
| League distributions and other | 34,681 | 24,692 | 9,989 | 40.4 |
League Distributions
The most significant portion of MSGS's revenue comes from league distributions, which saw a substantial increase of $9,727,000 for the three months ended September 30, 2024. This increase is attributed to higher distributions from the NBA and NHL, driven by enhanced league performance and increased media rights fees.
Media Rights Agreements
MSGS has secured media rights agreements with MSG Networks, which provide local telecast rights for Knicks and Rangers games. For fiscal year 2024, media rights revenues totaled approximately $175.3 million, with stated rights fees for fiscal year 2025 expected to reach approximately $186.7 million.
Sponsorship and Advertising
Sponsorship, signage, and suite licenses contribute significantly to MSGS's revenue, although this segment experienced a slight decline in Q3 2024 compared to the previous year. The company utilizes its premier venue, Madison Square Garden, to attract high-value sponsorship deals, which are crucial for maintaining revenue growth.
Event-Related Revenues
Event-related revenues include ticket sales, merchandise, and food and beverage sales during events. For Q3 2024, event-related revenues totaled $6,085,000, up from $5,821,000 in Q3 2023, indicating a steady demand for live events at the venue.
Direct Operating Expenses
Direct operating expenses for the three months ended September 30, 2024, increased to $8,211,000 from $3,520,000 the previous year, largely due to higher costs associated with team personnel and league revenue sharing.
Net Loss and Financial Performance
Despite the revenue growth, MSGS reported a net loss of $7,542,000 for Q3 2024, an improvement from the net loss of $18,821,000 reported in Q3 2023. This improvement reflects a reduction in operating losses and increased revenues.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Revenues ($000) | 53,307 | 43,046 |
| Net Loss ($000) | (7,542) | (18,821) |
| Basic Loss per Share | (0.31) | (0.79) |
| Diluted Loss per Share | (0.31) | (0.79) |
Future Outlook
Looking forward, MSGS anticipates continued growth in league distributions and media rights, coupled with ongoing efforts to enhance sponsorship revenues. The company also expects adjustments in operating expenses linked to team roster changes and potential increases in the NBA luxury tax.
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Article updated on 8 Nov 2024
Resources:
- Madison Square Garden Sports Corp. (MSGS) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Madison Square Garden Sports Corp. (MSGS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Madison Square Garden Sports Corp. (MSGS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.