Madison Square Garden Sports Corp. (MSG Sports) has reported record revenues of over $1 billion for fiscal 2024, marking a 16% increase year-over-year. The company also achieved record operating income of $146.0 million and adjusted operating income of $172.2 million for the fiscal year ended June 30, 2024. The strong performance was attributed to robust demand for the New York Knicks and New York Rangers, both of which had successful regular seasons and playoff runs. The Knicks advanced to the Eastern Conference Semifinals, while the Rangers made it to the Eastern Conference Finals.
For the fiscal 2024 fourth quarter, MSG Sports reported revenues of $227.3 million, up 79% from the prior year period. This growth was driven by higher playoff-related revenues, regular season ticket sales, suite revenues, sponsorship and signage revenues, as well as revenues from league distributions. The Rangers and Knicks played a combined four more regular season games and seven more playoff games at The Garden during the quarter, compared to the prior year quarter, leading to increased revenues.
Direct operating expenses for the fourth quarter increased by 34% compared to the prior year period, primarily due to higher playoff-related expenses and other team operating expenses. Selling, general, and administrative expenses also increased by 15% due to higher playoff-related expenses, employee compensation, and operating lease costs. Despite these expenses, operating income for the quarter reached $52.3 million, a significant improvement from the prior year period.
MSG Sports operates a collection of assets that includes the New York Knicks, New York Rangers, Westchester Knicks, and Hartford Wolf Pack. The company also manages the MSG Training Center in Greenburgh, NY. MSG Sports believes that adjusted operating income is an appropriate measure for evaluating its operating performance. Adjusted operating income excludes certain non-cash expenses and provides investors with a clearer picture of the company’s performance. MSG Sports is optimistic about the future and confident in the strength of its professional sports franchises.
Looking ahead, MSG Sports aims to continue generating long-term shareholder value through its professional sports teams and development league teams. The company’s strong financial results for fiscal 2024 reflect the success of the Knicks and Rangers, as well as the positive impact of increased home games and playoff runs. With a focus on driving demand from fans and partners, MSG Sports is well positioned to maintain its growth trajectory in the coming years.
