The New York Knicks traded for Karl-Anthony Towns last October to give them a spark in the frontcourt. He’s also helped the Knicks parent company’s revenue, even as it faces potential losses from its media-rights deals.
The Knicks and the New York Rangers together helped Madison Square Garden Sports Corp. reel in $357.8 million in revenue during the second quarter of the fiscal year 2025. That’s a $30 million (9%) jump from the same period last year.
The uptick didn’t stop the stock from dropping 3.6% on the day, to $210.40 a share, as it navigates a challenging media environment highlighted by ongoing turbulence with its media rights partner, MSG Networks.
While the Knicks and Rangers are keeping the ticket sales flowing at MSG, how fans will continue watching games locally remains up in the air. On the investor call on Tuesday, MSG Sports touched on the potential reduction of media rights fees from MSG Networks, the cable TV station that airs Rangers and Knicks games.
Since the beginning of the year, MSG Networks has been in a carriage dispute with Optimum, one of the top cable carriers in the region. It has forced Optimum customers to look elsewhere to watch the Knicks and Rangers, as well as the New York Islanders and the New Jersey Devils.
“Obviously there’s been industry-wide pressure on local media rights,” MSG Sports chief operating officer Jamaal Lesane said on the investor call. “MSG Networks is a great partner of ours and their content helps drive and grow engagement with our local fan base. … We continue to assess the best path forward for our business, and we remain focused on maximizing long-term value for our shareholders.”
Overall, the company’s second-quarter performance was mixed. Besides the media rights issues, MSG Sports also reported an adjusted operating income of $20 million during the second quarter, a 45% decrease from the same time last year. Lesane said the decrease in operating income is the result of “continued investment” in both teams. “The robust demand from fans and corporate partners alike has driven positive momentum in all key revenue areas,” he said.
The second quarter coffers overall benefited from a combined three more regular-season games between the Knicks and Rangers at the Garden compared with the same time last season. The overall increase year over year, however, was mostly driven by league distributions, ticket-related revenue, suite and sponsorship revenues.
MSG Sports, which signed a multiyear Knicks jersey patch deal with the Department of Culture and Tourism Abu Dhabi back in October, simultaneously announced a multiyear partnership between the NBA team and Nutrabolt (C4 Energy drink) on Tuesday.
The Knicks, who will send star guard Jalen Brunson and Towns to this month’s All-Star Game, have won six of their last seven games. The Rangers meanwhile have lost three out of their last four.
(This has been updated with MSG Sports’ closing stock price.)
