MSG Knicks revenue rises 15% as league distributions climb
Revenue rose to $45.5 million in the fiscal first quarter ended Sept. 30, and the operating loss narrowed to $25.5 million. Net loss widened to $31.1 million, or $1.29 per share.
Key takeaways
- MSG Knickerbockers (MSGS) reported fiscal first-quarter revenue of $45.5 million, up 15% from a year earlier, and an operating loss of $25.5 million, from $27.4 million a year earlier. Results include the New York Rangers business, spun off Oct. 26. Net loss widened to $31.1 million, or $1.29 per share.
MSG Knickerbockers (MSGS) said revenue rose 15% to $45.5 million in the fiscal first quarter ended Sept. 30, from $39.5 million a year earlier. The operating loss narrowed to $25.5 million.
The quarter includes the New York Rangers business, which the company spun off Oct. 26.
Here’s how the company did:
- Revenue: $45.5 million vs. $39.5 million a year earlier
- Operating loss: $25.5 million vs. $27.4 million a year earlier
- Adjusted operating loss: $20.0 million vs. $20.8 million a year earlier
- Net loss: $31.1 million vs. $8.8 million a year earlier
- Diluted loss per share: $1.29 vs. $0.37 a year earlier
Revenue drivers
League distributions rose $3.1 million, the company said, mainly from distributions unrelated to national media rights fees.
Food, beverage and merchandise sales rose $2.6 million. The company said the increase was driven by Knicks merchandise demand after the team won the 2025-26 NBA Championship.
After the quarter, the Knicks opened the 2026-27 regular season at Madison Square Garden with a banner raising and ring celebration for that championship.
Executive Chairman and CEO James L. Dolan said, “We remain confident in the value of owning this storied franchise and our ability to generate long-term shareholder value.”
Costs and charges
Direct operating expenses rose $0.5 million, or 7%, to $8.8 million. Selling, general and administrative expenses rose $3.0 million, or 5%, to $60.8 million.
Spin-off transaction expenses of $3.6 million were the main driver of the increase in selling, general and administrative expenses. Lower employee compensation of $1.2 million partly offset the rise.
Restructuring charges were $0.6 million, for termination benefits provided to certain employees.
Net income has swung from a loss of $20.0 million in the third quarter of fiscal 2026 to a profit of $28.3 million in the fourth quarter.
Cash and balance sheet
Cash and cash equivalents fell to $40.0 million from $164.5 million at June 30. Net cash used in operating activities was $146.3 million, compared with $85.0 million a year earlier.
Long-term debt rose to $282.0 million from $242.0 million at June 30.