Madison Square Garden Sports Corp. Q2 FY2026 earnings call

• Fan Enthusiasm: Knicks and Rangers combined season ticket renewal rate was approximately 94%. Focused on optimizing pricing and mix of individual and group sales, resulting in year-over-year increase in per game ticketing revenue. • Rangers Centennial Season: Celebrated with theme nights, new merchandise (centennial jersey, winter classic jersey), and partnerships like Game Seven as jersey patch partner. • Marketing Partnerships: Had new multiyear deals with PwC, Polymarket and renewals with Anheuser-Busch, Infosys. • Premium Hospitality: Strong new sales and renewal activity for suites, and benefited from renovated Lexus level suites. • Media Rights: Benefited from NBA's new national media deals and amended local media rights agreements with MSG Networks.

For the fiscal 2026 second quarter, Madison Square Garden Sports Corp. generated revenues of approximately $403 million. Event-related revenues, mainly consisting of ticket, food, beverage, and merchandise revenue, were $167.2 million, increasing 20% year over year. Suites and sponsorship revenues were $98.5 million, up 24% year over year. National and local media rights fees were $122.3 million, down 4% year over year, primarily due to amended local media rights agreements with MSG Networks but partially offset by higher national media rights fees from the NBA's new national media deals. Adjusted operating income was approximately $30 million.

• Business has positive momentum across key areas and is well-positioned to drive long-term value for shareholders. • Recent refinancings of Knicks and Rangers senior secured revolving credit facilities improved average borrowing rate and extended maturity, providing enhanced financial flexibility. • Confident in continuing momentum in business operations going forward.

• Potential differences between forward-looking statements and actual results due to risks and uncertainties such as changes in market conditions, media rights agreements, and team performance impacting financial results.

Q: Given current cash and debt balances, update on potential capital returns and if contingent on playoff runs?

A: Victoria M. Mink said they take all variables into account, long-term capital allocation priorities include maintaining liquidity, strong balance sheet, and being opportunistic about other uses of cash flow, not ruling out return to capital program in future.

Q: Comment if minority interest sale remains a potential option?

A: Jamaal T. Lesane said no news on minority interest sale, confident in value of teams, not ruling out possibility but nothing to report at this time.

Q: Impact of upcoming changes to tax deductibility of compensation starting in 2027?

A: Victoria M. Mink said they continue to assess impact, but effective for year ended June 30, 2028, and nothing further to share at this time.

Q: Updated outlook on evolving RSN and local media rights landscape?

A: Jamaal T. Lesane said RSN evolves, believe in value of local media coverage, have amended agreements with MSG Networks running through 2028-2029 season, remain focused on maintaining connection with MSG Networks and fans.

Q: Impact of Rangers' ice result on financials?

A: Jamaal T. Lesane said business remains strong with growth in in-game revenue categories, playoffs have markers like incremental home games and potential ticket price increase, but currently fully focused on making season successful.

Q: Update on sponsorship growth and further suite upgrades?

A: Jamaal T. Lesane said good momentum in marketing partnerships with new deals and renewals, premium hospitality has robust demand, strong suite renewals and new sales, benefited from renovated Lexus level suites