MSG Knickerbockers Posts $31.1 Million Loss for Quarter Before Rangers Spin

The Tip Desk · November 6, 2026 · 3 min read

Revenue rose 15% to $45.5 million in the fiscal first quarter ended September 30, 2026, as league distributions and championship merchandise sales lifted consolidated results, which include the Rangers business.

MSG Knickerbockers Corp. (MSGK), the owner of the New York Knicks, reported revenues of $45.5 million, up 15%, for the fiscal first quarter ended September 30, 2026, and a net loss of $31.1 million, or $1.29 a share, versus a net loss of $8.8 million, or $0.37 a share, a year earlier.

The professional sports company generated revenues of $45.5 million, up $6.0 million, or 15%, from the year-ago period. Operating loss was $25.5 million, an improvement of $2.0 million, or 7%. Adjusted operating loss was $20.0 million, an improvement of $0.8 million, or 4%.

Because of the timing of the spin-off, the fiscal 2027 first-quarter consolidated results include the New York Rangers business. On October 26, 2026, the company completed the spin-off of that Rangers business.

Revenue growth came primarily from higher league distributions of $3.1 million, mainly due to an increase in certain league distributions unrelated to national media rights fees. Food, beverage and merchandise sales increased $2.6 million, primarily due to higher Knicks merchandise revenues driven by demand from the team winning the 2025-26 NBA Championship.

Direct operating expenses were $8.8 million, up $0.5 million, or 7%. The company said the increase was driven by $1.6 million higher merchandise-sales expenses, $1.3 million higher team personnel compensation, and $0.7 million higher net provisions for certain team personnel transactions, mostly offset by a $3.0 million decrease in net provisions for league revenue sharing expense (net of escrow and excluding playoffs) and NBA luxury tax.

Selling, general and administrative expenses were $60.8 million, up $3.0 million, or 5%. The company said the increase was primarily from $3.6 million of spin-off transaction expenses and higher other general and administrative expenses, partially offset by $1.2 million lower employee compensation and related benefits.

The company said the narrower operating and adjusted operating losses reflected higher revenues, partially offset by higher selling, general and administrative expenses.

Miscellaneous (expense) income, net was a $3.7 million expense versus $15.1 million of income a year earlier. Restructuring charges of $0.6 million appeared in the current quarter versus none a year earlier. Interest expense was $4.7 million. An income tax benefit of $2.2 million reduced the pretax loss of $33.3 million.

Cash and cash equivalents were $40.0 million at September 30, 2026, down from $164.5 million at June 30, 2026. Net cash used in operating activities was $146.3 million, versus $85.0 million a year earlier. Current deferred revenue was $366.4 million at September 30, 2026, versus $165.4 million at June 30, 2026. Long-term debt was $282.0 million. Total equity was a deficit of $307.4 million.

Subsequent to quarter-end, the Knicks began their 2026-27 regular season at Madison Square Garden Arena with a banner raising and ring celebration to commemorate the 2025-26 NBA Championship. Executive Chairman and CEO James L. Dolan said that with the completion of the Rangers spin-off and a new Knicks season underway, the business is well-positioned to build on positive operating momentum, and that the company remains confident in the value of owning the franchise and its ability to generate long-term shareholder value.