Madison Square Garden Sports Corp. ( MSGS ) shares declined following the release of first-quarter financial results on Friday.

The company posted a loss of 37 cents per share, beating analysts’ estimates of a 88 cents loss, compared with a loss of 31 cents per share in the same period last year.

Revenue dropped 26% to $39.5 million, missing Wall Street expectations of $41.30 million, driven mainly by lower revenues from league distributions of $11.4 million. The decline was mainly due to a decrease in certain league distributions unrelated to national media rights fees.

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In addition, local media rights fees decreased $2.3 million compared with the prior-year period. This was primarily due to amendments to the Knicks’ and Rangers’ local media rights agreements with MSG Networks entered into in the fourth quarter of fiscal 2025.

Direct operating expenses inched up 1% to $8.3 million, as higher team personnel transaction costs and other increases were mostly offset by lower league revenue sharing and NBA luxury tax provisions.

The company reported an adjusted operating loss of $20.8 million, widening by $18.5 million from the prior-year period, mainly due to lower revenues and higher selling, general and administrative expenses.

Madison Square Garden Sports ( MSGS ) ended the period with cash and cash equivalents totaling $48.63 million.

Key Operating Highlights

The company’s operating highlights include a strong 94% combined season ticket renewal rate for Knicks and Rangers teams and a new multi-year marketing partnership with GAME 7, which became the Rangers’ first-ever jersey patch partner.

The suites business continues to see solid demand, supported by strong renewals and new sales, including recently renovated Lexus-level suites.

In addition, the Rangers launched a year-long centennial celebration, featuring special initiatives and a commemorative Centennial jersey unveiled in September.

CEO Commentary

Madison Square Garden Sports ( MSGS ) Executive Chairman and CEO James L. Dolan stated, “With the new seasons underway, we are seeing strong ongoing demand for the Knicks and Rangers to start the fiscal year. We remain confident in the value of owning these two marquee professional sports franchises and our ability to generate long-term shareholder value.”

Price Action: MSGS shares were trading lower by 6.61% to $209.91 at last check Friday.

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