MSGS

• The Company's financial results are substantially dependent on the popularity and competitive success of the Knicks and Rangers, including playoff revenue, which cannot be assured.
• Local media rights revenue, a significant 11% of FY2026 total revenues, has declined sharply due to MSG Networks' financial distress and amended rights agreements, with further risk of default or bankruptcy.
• The potential separation of the Rangers business ("Rangers Distribution") could create significant tax liability, impose operational restrictions, and may not be completed, causing uncertainty and costs.
• The Dolan Family controls approximately 70.8% of total voting power, can prevent a change in control, and the Company is a 'controlled company' exempt from certain NYSE governance rules.
• League actions by the NBA and NHL, including expansion, media rights deals, and luxury tax rules, can materially and negatively affect the business, as seen with a $13.2M revenue reduction from fewer exclusive local games.
• The Company does not own Madison Square Garden, relies on affiliated entities for critical services, and faces risks from a potential repeal of a $45.2M annual NYC real estate tax exemption.

We license The Garden, which has a maximum capacity of approximately 19,800 seats for New York Knicks games and approximately 18,000 seats for New York Rangers games, from MSG Entertainment in New York City pursuant to the Arena License Agreements. We own the Madison Square Garden Training Center in Greenburgh, NY with approximately 114,000 square feet of space. The Company is party to a Sublease Agreement with MSG Entertainment for office space of approximately 64,000 square feet housing the Company’s administrative and executive offices at Two Pennsylvania Plaza in New York City.

The Company is a defendant in various lawsuits. Although the outcome of these lawsuits cannot be predicted (including the extent of available insurance, if any), management does not believe that resolution of these lawsuits will have a material effect on the Company.

• Total revenues increased 11% to $1.15B, primarily from $66.9M in higher playoff-related revenues as the Knicks won the 2026 NBA Championship and $41.4M from increased league distributions tied to new NBA national media rights deals.
• Local media rights fees fell $31.6M due to amended agreements with MSG Networks that reduced annual rights fees by 28% for the Knicks and 18% for the Rangers and eliminated the annual escalator.
• Direct operating expenses grew 10% to $833.7M, driven by $49.5M in higher playoff costs, $41.3M in increased team personnel compensation, and a $23.3M rise in net league revenue sharing and NBA luxury tax provisions.
• Selling, general and administrative expenses rose 7% to $286.0M, reflecting $13.3M in higher playoff-related costs, $11.6M in increased employee compensation including $7.2M in executive transition costs, and $3.8M in expenses for the planned Rangers Distribution.
• As of June 30, 2026, the Company held $164.5M in cash and had $433.0M in available borrowing capacity, with $242.0M drawn on the Knicks Revolving Credit Facility and $16.5M outstanding under the Rangers NHL Advance Agreement.

We have potential interest rate risk exposure related to outstanding borrowings incurred under our credit facilities. Changes in interest rates may increase interest expense payments with respect to any borrowings incurred under the credit facilities. Borrowings under our credit facilities incur interest, depending on our election, at a floating rate based upon SOFR plus a credit spread adjustment, the U.S. Federal Funds Rate or the U.S. Prime Rate, plus, in each case, a fixed spread. If appropriate, we may seek to reduce such exposure through the use of interest rate swaps or similar instruments. See Note 14 to the consolidated financial statements included in Item 8 of this Annual Report on Form 10-K for more information on our credit facilities. As of June 30, 2026, we had a total of $242 million of borrowings outstanding under our credit facilities. The effect of a hypothetical 100 basis point increase in floating interest rates prevailing as of June 30, 2026 and continuing for a full year would increase interest expense approximately $2.4 million.

The Financial Statements required by this Item 8 appear beginning on page F-1 of this Annual Report on Form 10-K, and are incorporated by reference herein.