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Madison Square Garden Sports (MSGS)
NYSE:MSGS
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Madison Square Garden Sports (MSGS) AI Stock Analysis

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MSGS

Madison Square Garden Sports

(NYSE:MSGS)

Rating:58Neutral
Price Target:
$212.00
▲(4.85%Upside)
Madison Square Garden Sports exhibits strong revenue growth and cash flow, reflected in a moderate financial performance score. However, high leverage risk and substantial overvaluation significantly impact the overall score. Technical analysis shows moderate stability, but valuation concerns limit upside potential.
Positive Factors
Market Valuation
MSG shares trade at an approximately 50% discount to private market value, limiting downside risk.
Revenue Growth
YoY growth in average per-game revenues (ticketing, sponsorship and premium hospitality) was encouraging, with no sign of slowing consumer spending.
Negative Factors
Financial Impact
The F2Q revenue and adj OI were negatively impacted by the previously announced reduction in local media rights with MSG Networks.
Media Rights Revenue
The reduction in media rights revenues accepted by the Knicks and Rangers was necessary to prevent MSG Networks from going into restructuring, which could have led to greater downside risk to the teams' local rights revenues.

Madison Square Garden Sports (MSGS) vs. SPDR S&P 500 ETF (SPY)

Madison Square Garden Sports Business Overview & Revenue Model

Company DescriptionMadison Square Garden Sports Corp. operates as a professional sports company. The company owns and operates a portfolio of assets that consists of the New York Knickerbockers of the National Basketball Association (NBA) and the New York Rangers of the National Hockey League. Its other professional franchises include two development league teams, the Hartford Wolf Pack of the American Hockey League and the Westchester Knicks of the NBA G League. It also owns Knicks Gaming, an esports franchise that competes in the NBA 2K League, as well as a controlling interest in Counter Logic Gaming, a North American esports organization. In addition, the company operates two professional sports team performance centers, the Madison Square Garden Training Center in Greenburgh and the CLG Performance Center in Los Angeles. The company was formerly known as The Madison Square Garden Company. Madison Square Garden Sports Corp. was incorporated in 2015 and is based in New York, New York.
How the Company Makes MoneyMadison Square Garden Sports Corp. generates revenue through various streams, primarily anchored around its professional sports teams. The key revenue sources include ticket sales for home games, which contribute significantly to the company's earnings, alongside revenue from the sale of premium seating and suites. Additionally, MSGS benefits from broadcasting rights agreements, which provide a substantial portion of its income through contracts with regional and national television networks. Merchandising and licensing deals also bolster revenue, as fans purchase team-related apparel and memorabilia. Corporate sponsorships and partnerships play a crucial role, offering MSGS a steady influx of cash through strategic alliances with brands looking to associate with its prestigious sports teams. Overall, MSGS leverages its strong brand and team assets to maximize revenue through multiple channels, including live events, media, merchandise, and partnerships.

Madison Square Garden Sports Earnings Call Summary

Earnings Call Date:May 02, 2025
(Q2-2025)
|
% Change Since: 4.85%|
Next Earnings Date:Aug 14, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong revenue growth, particularly in ticket sales and sponsorships, reflecting robust demand and fan engagement. However, concerns regarding local media rights negotiations and potential impacts from MSG Networks' financial issues posed significant challenges. Despite an impressive revenue increase, operating income declined due to higher expenses. The overall sentiment is balanced with both positive achievements and notable challenges.
Q2-2025 Updates
Positive Updates
Revenue Growth
MSG Sports generated revenues of approximately $358 million for the fiscal 2025 second quarter, reflecting an increase from $326.9 million in the prior year period.
Strong Ticket Sales
Average combined season ticket renewal rate was approximately 97%, with year-over-year increases in both average ticket yield and average paid attendance.
Sponsorship Success
The company secured new multiyear sponsorships with Lenovo, Motorola, and a significant agreement with Abu Dhabi's Department of Culture and Tourism.
Merchandise and In-Arena Spending
In arena spending on food, beverage, and merchandise per cap was up compared to the fiscal 2024 second quarter, driven by innovative merchandise offerings and collaborations.
Negative Updates
Adjusted Operating Income Decline
Adjusted operating income decreased by $16.8 million to $20.2 million due to increased direct operating expenses and higher selling, general, and administrative expenses.
Challenges in Local Media Rights
MSG Networks approached the company to renegotiate local media rights agreements, including a potential reduction in rights fee amid a challenging RSN industry environment.
Potential Impact of MSG Networks Bankruptcy
Concerns were raised about the company's liquidity position in the event of a network and MSG Networks bankruptcy, requiring waivers from lenders to borrow additional funds.
Company Guidance
During the Madison Square Garden Sports Corp. fiscal 2025 second quarter earnings call, several key metrics were highlighted. The company reported total revenues of approximately $358 million and an adjusted operating income of about $20 million for the quarter. This growth was attributed to strong demand across key revenue areas, including ticketing, suites, sponsorship, and food, beverage, and merchandise, with pre-game revenues up compared to the fiscal 2024 second quarter. The Knicks and Rangers' season ticket renewal rate was approximately 97%, with increased demand for flexible ticket plans contributing to year-over-year increases in average ticket yield and average paid attendance per game. Event-related revenues rose 14% year-over-year to $139.4 million, while suites and sponsorship revenues grew by 15% to $79.4 million. Despite facing challenges in the media rights sector, including negotiations with MSG Networks and a blackout with Altice USA, the company remains confident in the long-term value of its marquee sports franchises.

Madison Square Garden Sports Financial Statement Overview

Summary
Madison Square Garden Sports exhibits strong revenue growth and robust cash flow generation, enhancing its operational profile. However, the high leverage and negative stockholders' equity pose significant financial risks. Improving operational efficiencies and addressing leverage concerns will be critical for long-term sustainability.
Income Statement
75
Positive
Madison Square Garden Sports has demonstrated robust revenue growth with a notable increase in revenue from $821.4M in 2022 to $1.06B in TTM (Trailing-Twelve-Months) 2025, reflecting a strong revenue growth rate. Gross Profit Margin stands at 36.2% and Net Profit Margin at 6.2%, indicating stable profitability. However, the EBIT and EBITDA margins are relatively low at 8.4% and 7.7% respectively, suggesting room for improvement in operational efficiencies.
Balance Sheet
40
Negative
The balance sheet reveals significant leverage with a high Debt-to-Equity ratio due to negative stockholders' equity, posing a risk to financial stability. The negative equity is a concern, indicating potential financial distress. Although the company has a substantial asset base, the leverage and negative equity ratio require careful monitoring.
Cash Flow
80
Positive
Cash flow analysis shows strong free cash flow generation with a growth to $149.9M in TTM 2025. The Operating Cash Flow to Net Income Ratio is favorable, indicating effective cash conversion. The positive Free Cash Flow to Net Income ratio highlights the company's ability to generate cash from its operations efficiently.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue1.03B887.45M821.35M415.72M603.32M
Gross Profit410.63M338.64M320.79M133.83M243.35M
EBITDA136.42M116.38M90.71M-73.18M-76.05M
Net Income58.77M47.79M51.13M-15.90M-118.64M
Balance Sheet
Total Assets1.35B1.32B1.30B1.31B1.23B
Cash, Cash Equivalents and Short-Term Investments89.14M40.40M91.02M64.90M77.85M
Total Debt1.11B1.12B993.29M1.12B1.07B
Total Liabilities1.61B1.65B1.45B1.51B1.44B
Stockholders Equity-266.31M-337.23M-147.09M-204.31M-206.99M
Cash Flow
Free Cash Flow90.68M151.29M177.12M-35.79M-358.91M
Operating Cash Flow92.13M152.47M178.06M-35.33M3.57M
Investing Cash Flow-8.90M-17.76M-2.93M-466.00K-514.86M
Financing Cash Flow-28.79M-185.27M-156.14M17.16M-520.59M

Madison Square Garden Sports Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price202.20
Price Trends
50DMA
198.65
Positive
100DMA
195.35
Positive
200DMA
207.35
Negative
Market Momentum
MACD
1.49
Positive
RSI
47.99
Neutral
STOCH
16.67
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MSGS, the sentiment is Neutral. The current price of 202.2 is below the 20-day moving average (MA) of 205.89, above the 50-day MA of 198.65, and below the 200-day MA of 207.35, indicating a neutral trend. The MACD of 1.49 indicates Positive momentum. The RSI at 47.99 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MSGS.

Madison Square Garden Sports Risk Analysis

Madison Square Garden Sports disclosed 34 risk factors in its most recent earnings report. Madison Square Garden Sports reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Madison Square Garden Sports Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$35.44B52.35827.53%-2.92%166.63%
73
Outperform
$2.87B-4.43%4.04%82.47%
66
Neutral
¥382.85B15.252.24%2.38%5.42%-14.79%
63
Neutral
$1.88B14.561222.83%5.81%133.05%
60
Neutral
$1.63B-15.64%-5.04%-155.66%
58
Neutral
$4.88B1,033.08-20.85%14.64%-79.70%
48
Neutral
$3.07B-34.14%-4.57%20.00%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MSGS
Madison Square Garden Sports
202.20
2.91
1.46%
LYV
Live Nation Entertainment
153.06
57.59
60.32%
MANU
Manchester United
17.45
0.39
2.29%
SPHR
Sphere Entertainment
43.58
-0.43
-0.98%
MSGE
Madison Square Garden Entertainment Corp.
39.79
0.90
2.31%
BATRA
Atlanta Braves Holdings Inc Class A
49.33
3.70
8.11%

Madison Square Garden Sports Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Madison Square Garden Sports Amends Media Rights Agreements
Neutral
Jun 27, 2025

On June 27, 2025, Madison Square Garden Sports Corp. amended media rights agreements for its subsidiaries, the New York Knicks and New York Rangers, with MSG Networks. The amendments, effective January 1, 2025, include a reduction in annual rights fees and changes to contract expiration dates, as part of MSG Networks’ debt workout process. Additionally, MSG Networks issued penny warrants to the company for 19.9% equity interests.

The most recent analyst rating on (MSGS) stock is a Buy with a $240.00 price target. To see the full list of analyst forecasts on Madison Square Garden Sports stock, see the MSGS Stock Forecast page.

Shareholder MeetingsBusiness Operations and Strategy
Madison Square Garden Sports Redomesticates to Nevada
Neutral
Jun 11, 2025

On June 10, 2025, Madison Square Garden Sports held a Special Meeting where stockholders voted on a proposal to redomesticate the company from Delaware to Nevada. The proposal was approved by both Class A and Class B stockholders, who voted together as a single class, with a significant majority in favor.

The most recent analyst rating on (MSGS) stock is a Buy with a $240.00 price target. To see the full list of analyst forecasts on Madison Square Garden Sports stock, see the MSGS Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 25, 2025