Madison Square Garden Q4 Earnings Call Highlights

Madison Square Garden Q4 Earnings Call Highlights Fiscal 2026 results surged as the Knicks’ championship run lifted ticketing, merchandise, sponsorship and arena spending. Revenue reached $1.15 billion, while fourth-quarter revenue rose 37% to $278.7 million and adjusted operating income improved to $39.6 million from a $16.8 million loss. Management expects continued fiscal 2027 growth across tickets, sponsorships, suites, food and beverage, and merchandise, supported by strong renewals, partnerships and planned suite renovations. However, higher team compensation, luxury-tax payments and revenue-sharing costs are expected to pressure results. The proposed Rangers spin-off remains targeted for completion by the end of October , pending board approval and other conditions. The transaction would create separately traded Knicks and Rangers companies, while MSG Sports continues evaluating potential future minority stake sales. Madison Square Garden NYSE: MSGS reported fiscal 2026 revenue of $1.15 billion and adjusted operating income of $58.7 million, as the New York Knicks’ championship run drove higher ticketing, merchandise, sponsorship and in-arena spending. For the fiscal fourth quarter, revenue rose to $278.7 million from $204.0 million a year earlier, while adjusted operating income was $39.6 million, compared with an adjusted operating loss of $16.8 million in the prior-year quarter. The company said the two periods included the same number of regular-season and playoff home games, although the Knicks advanced to the NBA Finals in fiscal 2026 after reaching the Eastern Conference Finals in fiscal 2025. Chief Operating Officer Jamaal Lesane said the Knicks’ championship season generated substantial engagement across New York City, including home-game crowds, citywide watch parties, marketing activations and a championship parade attended by millions of fans. The company said the Knicks set NBA records for per-game gate revenue on multiple occasions during the postseason. Within 24 hours of the team clinching the NBA title, the Knicks also produced their highest-ever single day of merchandise sales, according to Lesane. Chief Financial Officer Paul DiCicco said playoff-related revenue in the fourth quarter reached $182.0 million, compared with $115.2 million in the prior-year period. The company hosted nine playoff games at Madison Square Garden in each quarter, with fiscal 2026 playoff revenue averaging about $20.2 million per game, including the benefit of strong non-game-day merchandise sales. Those results were accompanied by higher costs. DiCicco said direct operating, marketing and administrative costs associated with the playoffs averaged approximately $11.2 million per game. Fourth-quarter costs also included $2.9 million related to the company’s proposed spin-off transaction. Fourth-quarter event-related revenue, which includes ticketing, food, beverage and merchandise, increased 43% year over year to $200.7 million. Suites, sponsorship and signage revenue increased 23% to $39.1 million. National and local media rights fees of $27.7 million were essentially unchanged from the prior year. The company attributed the media-rights result to its amended local telecast rights agreement with MSG Networks and fewer games exclusively available to MSG Networks, partly offset by higher NBA national media-rights fees under the league’s new agreements. Lesane said consumer and corporate demand was strong throughout the regular seasons for both the Knicks and Ra.