Companies

Knicks Title Lifts MSGS Fourth-Quarter Sales 37%

The Tip Desk · August 13, 2026 · 3 min read

Revenue reached $278.7 million as playoff-related sales rose $66.9 million and the company swung to a $32.2 million operating profit from a $22.6 million loss a year earlier.

Madison Square Garden Sports Corp. (MSGS) generated $278.7 million of revenue in the fiscal fourth quarter ended June 30, 2026, up $74.8 million, or 37%, from the year-earlier quarter, after a 2% year-over-year increase in the third quarter and 13% in the second.

The professional sports company, which owns the New York Knicks and New York Rangers, said the Knicks won the 2025-26 NBA Championship. Playoff-related revenues increased $66.9 million from the prior-year quarter, primarily from higher average per-game Knicks playoff revenue and higher Knicks merchandise sales during the title run, versus the Knicks reaching the Eastern Conference Finals a year earlier.

The company reported operating income of $32.2 million and adjusted operating income of $39.6 million, compared with an operating loss of $22.6 million and an adjusted operating loss of $16.8 million in the year-ago quarter. Net income was $28.3 million, or $1.16 a share on a diluted basis, versus a net loss of $1.8 million, or $0.07 a share, a year earlier.

The Knicks and Rangers played a combined eight regular-season home games and nine playoff home games at Madison Square Garden Arena in both the current and prior-year quarters. League-distribution revenues rose $7.2 million, primarily from higher national media rights fees under the NBA’s new national media rights agreements that began with the 2025-26 regular season and from certain league distributions unrelated to those fees. Sponsorship and signage revenues increased $1.7 million, and food, beverage and merchandise sales increased $1.5 million. Local media rights fees decreased $3.5 million after amendments to the Knicks’ and Rangers’ local telecast agreements with MSG Networks and fewer games exclusively available to MSG Networks.

Direct operating expenses were $159.5 million, up $4.7 million, or 3%. The increase was primarily driven by $49.2 million of higher playoff-related expenses, partially offset by $48.5 million of lower net provisions for certain team personnel transactions. Selling, general and administrative expenses were $85.4 million, up $14.6 million, or 21%, including $13.4 million of higher playoff-related expenses and $2.9 million of expenses related to the proposed spin-off.

For the full fiscal year ended June 30, 2026, revenues were $1,153.8 million, up $114.6 million, or 11%. Operating income was $28.9 million and adjusted operating income was $58.7 million. Fiscal 2026 results also reflected increases in average per-game revenues for every in-arena category, higher national media rights fees, and the impact of local-rights amendments and 2025-26 rosters.

Executive Chairman and CEO James L. Dolan said fiscal 2026 was highlighted by the Knicks’ championship and by consumer and corporate demand for both teams.

The company continues work toward a proposed spin-off of the Rangers business from the Knicks business. It confidentially submitted a Form 10 registration statement with the U.S. Securities and Exchange Commission in mid-May and currently expects to complete the spin-off by the end of October 2026, subject to conditions including board approval. In the third-quarter release, Dolan said the company was exploring a potential separation of the Knicks and Rangers into distinct public companies.

Cash and cash equivalents were $164.5 million at June 30, 2026. Current debt was $16.5 million and long-term debt was $242.0 million. Deferred revenue was $165.4 million in current liabilities.