Madison Square Garden Sports Corp. Q4 FY2023 earnings call

• Fiscal 2023 was an exceptional year with $887 million in revenues, a new record, and adjusted operating income of $115 million. Growth was broad-based across ticket, suites, marketing partnerships, and media rights. • Knicks and Rangers had strong regular seasons with playoff appearances; Rangers added a new head coach and players, Knicks advanced to Eastern Conference semifinals. • Average paid attendance and ticket yield increased in fiscal 2023 regular season; season ticket renewal rate for Knicks and Rangers in 2023-24 is ~93%. • Merchandise revenue hit new highs in fiscal 2023 with collaborations; fan engagement initiatives like FanFirst and social media growth. • Marketing partnerships saw robust renewals and new sales, including HUB International and MSC Cruises as Knicks' global partner. • Premium hospitality had record revenues, with two new event level suites added to The Garden. • Media rights benefited from contractual escalators, with strong viewership trends for NBA and NHL post-seasons.

For fiscal 2023, total revenue was $887.4 million and adjusted operating income was $115 million. In the fiscal 2023 fourth quarter, total revenues were $126.9 million, with event-related revenues (including ticket, food, beverage, and merchandise) at $70.2 million, suites and sponsorship revenues at $20.3 million, and national and local media rights fees at $28.6 million. Adjusted operating income for the fourth quarter was a loss of $7.8 million.

• Expect revenue growth in fiscal 2024. • AOI to reflect higher team operation expenses, including current rosters, higher revenue sharing expense (lower luxury tax receipts), and impacts of NBA and NHL salary caps. • No material impact expected from new NBA collective bargaining agreement.

• Evolution of the media landscape and potential changes in local distribution of content. • Uncertainties in sports betting regulations and their impact on sponsorship revenue opportunities.

Q: How does MSG think about restructuring local distribution of content given evolving media landscape?

A: Believe in value of live sports content, have long-term local media contracts with MSG Networks, supportive of their direct-to-consumer offering MSG Plus.

Q: Will there be a minority sale of teams?

A: Not ruling out but no update; confident in team value with strong fundamentals and growth opportunities.

Q: Rank order of revenue opportunities beyond national media rights?

A: Focus on ticketing growth (renewals, attendance, yield), sponsorships (renewals, new sales, patches, international), premium hospitality (new suites), and fan engagement initiatives.

Q: Details on playoff revenues?

A: Fewer playoff home games in 2023 quarter, but playoff-related revenues per game still positive due to premium pricing on tickets, F&B, and merchandise.

Q: Pacing of ticketing sales for upcoming season?

A: Combined season ticket renewal rate ~93% (higher than last year), individual and group ticket sales for Rangers pacing ahead of last year, Knicks individual games not yet on sale but positive momentum.