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- **Record Revenue Growth**: Fiscal 2025 full-year revenues exceeded $1 billion, driven by 90% season ticket renewal rates and playoff success.
- **Media Rights Restructuring**: Local fees reduced by 28% (Knicks) and 18% (Rangers), offset by NBA national rights increases.
- **Playoff Financial Impact**: Q4 playoff revenues of $115.2 million, with per-game gate records and 775,000 new social media followers.
- **Sponsorship Momentum**: 2025 saw multiyear renewals and new deals; 2026 poised for growth post-Knicks playoff run.
- **Financial Flexibility**: $145M cash, $250M revolver, and no immediate plans for minority stake sales despite franchise valuations.

**【Management Opening Remarks】**
- Ari Danes welcomed participants and outlined the call structure, emphasizing the availability of the earnings release and the inclusion of forward-looking statements.
- The company reported fiscal 2025 full-year revenues of $1.04 billion and adjusted operating income (AOI) of $38.2 million.

**【COO Operational Update】**
- **Revenue Growth Drivers**: Fiscal 2025 saw increases in ticketing, sponsorship, and suites, driven by strong team performance (Knicks Eastern Conference Finals, Rangers off-season coaching changes).
- **Season Ticket Renewals**: Combined renewal rate for 2025-26 is ~90%, with Knicks season ticket prices raised due to playoff success.
- **Media Rights Changes**: Local media rights fees with MSG Networks reduced by 28% (Knicks) and 18% (Rangers), with contract expirations shortened to 2028-29.
- **Marketing Partnerships**: New deals with Abu Dhabi, Lenovo/Motorola, and renewals with Verizon, Pepsi, and Benjamin Moore.
- **Playoff Impact**: Fiscal 2025 Q4 playoff-related revenues were $115.2 million, with per-game gate revenue hitting team records.

**【CFO Financial Commentary】**
- **Q4 2025 Results**: Revenues $204 million (down 10% YoY), AOI loss of $16.8 million due to higher team personnel costs and luxury tax.
- **Media Rights**: National NBA media rights increased, offsetting local fee reductions; overall media rights revenue expected to rise in 2026.
- **Balance Sheet**: $145 million cash, $291 million debt (including $267 million Knicks revolver).
- **2026 Outlook**: Revenue growth across in-arena categories, higher team operating expenses due to NBA/NHL salary cap increases.

**【Q&A Highlights】**
- **Capital Allocation**: CFO emphasized financial flexibility ($250M revolver) and long-term priorities (liquidity, balance sheet strength).
- **Minority Stake Sale**: COO noted franchise valuations ($8-10B) but stated no current plans for minority stake sales.
- **RSN Evolution**: COO highlighted local media's role in fan engagement, while monitoring national rights changes.
- **Playoff Financial Impact**: Per-game revenue $12.8M (revenues) vs. $5.8M (expenses), with lasting demand for 2026 season.
- **Sponsorship Growth**: 2025 saw multiyear renewals and new deals; 2026 expected to build on playoff momentum.
- **Tax Changes**: CFO noted 2027 tax deductibility changes will impact 2028 financials, with no current guidance.


Madison Square Garden Sports Corp. (MSGS) Q4 2025 Earnings Conference Call Transcript

- **Revenue Growth Driven by Strong Fan Demand**: 15% YoY revenue increase with record merchandise sales and 97% ticket renewal rate
- **Media Rights Uncertainty**: Potential fee reduction discussions with MSG Networks offset by cost savings
- **Sponsorship Expansion**: Abu Dhabi patch deal and C4 Energy partnership highlight premium inventory
- **Pricing Strategy**: No 2024-25 season ticket increase, modest 2025-26 growth through dynamic pricing
- **Financial Resilience**: $108M cash, $250M available credit, ability to secure additional funding if needed

**【COO Jamaal Lesane: Operations & Financial Overview】**
- Q2 2025 Revenues: $358M (15% YoY growth vs. $326.9M) driven by 35 games vs. 32 prior year
- Adjusted Operating Income: $20M (down $16.8M YoY due to team expenses)
- Key Revenue Growth Areas:
  - Ticketing: 14% YoY increase in event-related revenue
  - Sponsorships: 15% YoY rise in suites & sponsorship revenue
  - Merchandise: Record single-game sales with new partnerships (KISS, New York or Nowhere)
- Fan Engagement Metrics:
  - 97% season ticket renewal rate
  - Higher average ticket yield and paid attendance
  - 12% increase in food/beverage per cap spending
- Media Rights Challenges:
  - MSG Networks seeking rights fee reduction
  - Optimum blackout impacting distribution
  - NBA media rights deal reduces RSN exclusives

**【CFO Victoria Mink: Financial Details】**
- Revenue Breakdown:
  - Event-related: $139.4M (14% YoY)
  - Sponsorships: $79.4M (15% YoY)
  - Media Rights: $126.9M (4% YoY)
- Expense Highlights:
  - Direct operating expenses +$9.3M (luxury tax, team compensation)
  - SGA expenses up 5% YoY
- Liquidity Position:
  - $108M cash balance
  - $250M available on Rangers revolver
  - Ability to secure additional financing if needed

**【Q&A Key Themes】**
1. **Media Rights Risk**:
   - Potential fee reduction scenarios
   - Offset by revenue sharing savings and tax benefits
2. **Team Expansion Impact**:
   - Expansion fees split among 30 teams
   - Future league distributions diluted by more teams
3. **Sponsorship Outlook**:
   - Abu Dhabi patch deal highlights premium inventory
   - C4 Energy partnership announced
   - Focus on international brand expansion
4. **Ticket Pricing Strategy**:
   - 2024-25: No season ticket price increase for renewing holders
   - 2025-26: Modest growth through dynamic pricing
   - Long-term focus on yield optimization

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