Madison Square Garden Sports Corp. reported financial results for its fiscal fourth quarter and full-year ended June 30, 2025, on August 12, 2025. For the full fiscal year 2025, revenues increased by 1%, or $12.1 million, to $1,039.2 million compared to the prior year.
However, full-year operating income decreased significantly by 90%, or $131.2 million, to $14.8 million, and adjusted operating income decreased by 78%, or $134.1 million, to $38.2 million. The fiscal fourth quarter saw revenues decrease by 10%, or $23.3 million, to $204.0 million, resulting in an operating loss of $22.6 million and an adjusted operating loss of $16.8 million.
The decline in Q4 revenues was primarily due to lower playoff-related revenues, as the Rangers did not qualify for the playoffs and there were fewer home playoff games overall. Lower league distributions and local media rights fees, which decreased by $1.1 million, also contributed to the revenue reduction.
Direct operating expenses in Q4 increased substantially by $47.1 million, or 44%, driven by higher net provisions for team personnel transactions of $42.8 million, and increased league revenue sharing and NBA luxury tax expenses of $9.8 million. These rising costs, coupled with reduced media rights, significantly impacted profitability.
On June 27, 2025, the Knicks and Rangers officially amended their media rights agreements with MSG Networks, effective January 1, 2025. These amendments include a 28% reduction in annual rights fees for the Knicks and an 18% reduction for the Rangers, the elimination of annual escalators, and a revised contract term ending after the 2028-29 seasons. MSGS also received penny warrants for 19.9% of MSG Networks' equity interests.
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