Madison Square Garden Sports Corp. (MSG Sports), the parent company of the New York Knicks and New York Rangers, reported $1.039 billion in revenue for the fiscal year ending June 30, 2025, a modest 1% increase from the previous year. While the headline figure signals continued strong demand for its marquee franchises, the underlying numbers reveal a more complex financial picture.
Despite the revenue bump, MSG Sports saw its operating income plummet to $14.8 million, down from $146 million the year prior, a staggering 90% decline. Adjusted operating income also fell sharply, dropping to $38.2 million from $172.2 million. The fourth quarter was particularly challenging, with revenues falling 10% year-over-year to $204 million and the company posting an operating loss of $22.6 million.
One bright spot was the Knicks’ deep playoff run, which included nine home games at Madison Square Garden and culminated in an appearance in the Eastern Conference Finals. This surge in postseason activity helped offset the absence of the Rangers from the NHL playoffs, who had contributed eight home playoff games the previous year.
MSG Sports also reported growth in per-game revenues across ticket sales, sponsorships, and suite rentals. However, these gains were tempered by reductions in local media rights fees, following amendments to the Knicks’ and Rangers’ agreements with MSG Networks. The new terms resulted in a 28% drop in annual rights fees for the Knicks and an 18% reduction for the Rangers, effective January 2025.
Executive Chairman and CEO James L. Dolan acknowledged the challenges but struck a confident tone about the future.
“Fiscal 2025 was highlighted by growth in per-game revenues and the Knicks’ postseason run to the Eastern Conference Finals,” Dolan said. “While it also reflected our investment in our teams and the changing local media landscape, we expect continued strong demand for the Knicks and Rangers and remain confident in the value of owning two professional sports franchises”.
The decline in media revenue underscores a broader shift in the sports broadcasting ecosystem, as teams and networks adapt to changing viewer habits and streaming platforms. MSG Sports’ financials reflect both the opportunities and vulnerabilities of operating legacy franchises in a rapidly evolving media environment.
MSG Sports may have crossed the billion-dollar threshold, but the road ahead will require strategic recalibration. With fan interest strong and team performance trending upward, the company’s next challenge is turning that momentum into sustainable profitability.
