Q2 2025 Madison Square Garden Entertainment Corp Earnings Call

Speaker Change: Good morning. Thank you for standing by and welcome to the Madison Square Garden Sports Court Fiscal 2025 Second Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode.

Speaker Change: After the speaker's remarks, there will be a question and answer session. I would now like to turn the call over to Ari Danes, Investor Relations. Please go ahead.

Ari Danes: Thank you, operator. Good morning. Welcome to MSG Sports' Fiscal 2025 Q2 Earnings Conference Call. Our Chief Operating Officer, Jamal Husain, will begin this morning's call with an update on the company's strategy and operations. This will be followed by a review of our financial results with Victoria Mink, our EVP, Chief Financial Officer, and Treasurer. After our prepared remarks, we will open up the call for questions. If you do not have a copy of today's earnings release, it is available in the Investors section of our corporate website. Please take note of the following. Today's discussion may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements.

Speaker Change: Thank you, Operator. Good morning and welcome to MSG Sports Fiscal 2025 Second Quarter Earnings Conference Call. Our Chief Operating Officer, Jamal Hussain, will begin this morning's call with an update on the company's strategy and operations.

Speaker Change: This will be followed by a review of our financial results with Victoria Mink, our EVP, Chief Financial Officer, and Treasurer.

Speaker Change: After our prepared remarks, we will open up the call for questions.

Speaker Change: If you do not have a copy of today's earnings release, it is available in the investor section of our corporate website.

Please take note of the following.

Speaker Change: Today's discussion may contain forward-looking statements within the meaning of the Private Security Litigation Reform Act of 1995.

Speaker Change: Any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements.

Ari Danes: Please refer to the company's filings with the SEC for a discussion of risks and uncertainties. The company disclaims any obligation to update any forward-looking statements that may be discussed during this call. On pages 4 and 5 of today's earnings release, we provide consolidated statements of operations and a reconciliation of operating income to adjusted operating income, or AOI, a non-GAAP financial measure. With that, I'll now turn the call over to Jamal.

Speaker Change: Please refer to the company's filings with the SEC for a discussion of risks and uncertainties.

Speaker Change: The company disclaims any obligation to update any forward-looking statements that may be discussed during this call.

Speaker Change: On pages 4 and 5 of today's earnings release, we provide consolidated statements of operations and a reconciliation of operating income to adjusted operating income or AOI, a non-GAAP financial measure.

Jabal: And with that, I'll now turn the call over to Jabal.

Jamal Husain: Thank you, Ari, and good morning, everyone. The Knicks' and Rangers' 2024-25 seasons are in full swing. For the fiscal Q2 2025, MSG Sports generated revenues of approximately $358 million, an adjusted operating income of approximately $20 million. These results reflect strong overall demand, while adjusted operating income also reflects our continued investment in our teams. The robust demand from fans and corporate partners alike has driven positive momentum in all key revenue areas, ticketing, suites, sponsorship, and food, beverage, and merchandise. In fact, per-game revenues across every key category were up as compared to the fiscal Q2 2024. With our iconic sports franchises and the strong top-line trends we are seeing, we remain confident in the outlook for our business. Let's discuss our operations in more detail.

Thank you, Ari, and good morning, everyone.

Jabal: These results reflect strong overall demand, while adjusted operating income also reflects our continued investment in our teams.

Jabal: The robust demand from fans and corporate partners alike has driven positive momentum in all key revenue areas.

Ticketing, Sweets, Sponsorship, and Food, Beverage, and Merchandise.

Jabal: So with our iconic sports franchises and the strong top-line trends we are seeing, we remain confident in the outlook for our business.

Jamal Husain: Since we last spoke with you in August, the Knicks' off-season, which had already included a number of significant roster moves, culminated with the trade for now five-time NBA All-Star, Karl-Anthony Towns. More than halfway through the season, we are pleased with the team's performance so far, and we're excited to see both Towns and Jalen Brunson recently selected as starters for the 2025 NBA All-Star Game. On the hockey side, the Rangers signed an eight-year contract extension with the team's star goalie, Igor Shesterkin, in December. Next week, a number of our players will participate in the NHL's 4 Nations Face-Off Tournament, which is being held in place of an All-Star Game this year. As the seasons continue to unfold, we look forward to watching the coming months of competition. Throughout this year, our fans have continued to show their support for the Knicks and Rangers.

Jabal: Since we last spoke with you in August, the Knicks offseason, which had already included a number of significant roster moves, culminated with the trade for now five-time NBA All-Star Karl-Anthony Towns.

Jabal: More than halfway through the season we are pleased with the team's performance so far and we're excited to see both Towns and Jalen Brunson recently selected as starters for the 2025 NBA All-Star Game.

Speaker Change: And next week, a number of our players will participate in the NHL's Four Nations Faceoff Tournament, which is being held in place of an All-Star Game this year.

Speaker Change: As the seasons continue to unfold, we look forward to watching the coming months of competition.

Speaker Change: Throughout this year our fans have continued to show their support for the Nixon Rangers.

Jamal Husain: This season, our average combined season ticket renewal rate was approximately 97%. In addition, we have been opportunistically pricing our other ticketing offerings, including new season ticket packages, as well as individual and group tickets. We have also continued to provide our fans with more options and have seen increased demand for our flexible ticket plans as a result. Putting it all together, we saw year-over-year increases in both average ticket yield and average paid attendance on a per-game basis in the fiscal Q2, which helped drive growth in ticketing revenue. Fan enthusiasm has also extended to in-arena spending, where food, beverage, and merchandise per-cap spending was up as compared to the fiscal 2024 Q2. Contributing to this growth are our continued efforts to introduce innovative merchandise offerings. The Knicks are once again partnering with unique brands, including Kith and New York or Nowhere.

Speaker Change: This season, our average combined season ticket renewal rate was approximately 97 percent.

Speaker Change: In addition, we have been opportunistically pricing our other ticketing offerings, including new season ticket packages, as well as individual and group tickets.

Speaker Change: We have also continued to provide our fans with more options and have seen increased demand for our flexible ticket plans as a result.

Speaker Change: Putting it all together, we saw year-over-year increases in both average ticket yield and average paid attendance on a per-game basis in the fiscal second quarter, which helped drive growth in ticketing revenue.

Speaker Change: Fan enthusiasm has also extended to in-arena spending, where food, beverage, and merchandise per-cap spending was up as compared to the fiscal 24 second quarter.

Jamal Husain: Given the ongoing success of these two collaborations, we expanded those partnerships to the Rangers for the first time this season. It is clear that these initiatives are resonating. In fact, when the Knicks debuted their new Kith collection and the Rangers launched with New York or Nowhere this season, in-arena single-game merchandise sales were amongst their highest in each team's history. We also continue to introduce exciting event offerings to foster fan engagement. For example, we recently held our first Knicks Homecoming weekend, celebrating the team's alumni and rich history. The celebration included a free daytime event sponsored by Chase with alumni and hundreds of fans, and culminated at night with the official Homecoming game presented by DoorDash, which honored a number of team alumni. Turning to media rights. As a reminder, the NBA has entered into new national media deals, which are scheduled to begin next year.

and given the ongoing success of these two collaborations.

Speaker Change: We expanded those partnerships to the Rangers for the first time this season.

It is clear that these initiatives are resonating.

Speaker Change: In fact, when the Knicks debuted their new KIPP collection and the Rangers launched with New Yorker Nowhere this season, in-arena, single-game merchandise sales were amongst their highest in each team's history.

Speaker Change: We also continue to introduce exciting event offerings to force the fan engagement.

Speaker Change: For example, we recently held our first NICS Homecoming weekend, celebrating the team's alumni and rich history.

Speaker Change: The celebration included a free daytime event sponsored by Chase with alumni and hundreds of fans, and culminated that night with the official homecoming game presented by DoorDash, which honored a number of team alumni.

Turning to meteorites.

Speaker Change: As a reminder, the NBA has entered into new national media deals, which are scheduled to begin next year.

Jamal Husain: While these deals will include a step-up in average annual value compared to the current agreements, as well as increased escalators, they will also result in a reduction in the number of exclusive live telecasts made available to RSNs, which impacts a valuable part of our ecosystem. As you may also know, in August, our local media rights partner, MSG Networks, announced that it is pursuing a refinancing of its credit facilities through a workout, which is ongoing. As part of that process, MSG Networks has approached us to renegotiate our local media rights agreements, including a potential reduction in our rights fees. In addition, on 1 January, Altice USA dropped MSG Networks from its Optimum offerings, demonstrating the challenging environment that the RSN industry continues to face. We are actively assessing the best path forward for our business and will continue to keep you updated.

Speaker Change: While these deals will include a step-up in average annual value compared to the current agreements, as well as increased escalators, it will also result in a reduction in the number of exclusive live telecasts made available to RSMs, which impacts a valuable part of our ecosystem.

Speaker Change: As you may also know, in August, our local media rights partner, MSG Networks, announced that it is pursuing a refinancing of its credit facilities through a workout, which is ongoing.

Speaker Change: As part of that process, MSG Networks has approached us to renegotiate our local media rights agreements.

including a potential reduction in our rights fees.

Altice USA dropped MSG Networks from its optimum offerings.

Speaker Change: demonstrating the challenging environment that the RSN industry continues to face.

Speaker Change: We are actively assessing the best path forward for our business and will continue to keep you updated.

Jamal Husain: With respect to marketing partnerships, fiscal 2025 has been highlighted by a number of new deals and renewals so far. In October, the company announced a significant multi-year agreement with Abu Dhabi's Department of Culture and Tourism, which included naming Experience Abu Dhabi as the official patch partner of the Knicks. Their logo now appears on all Knicks game jerseys, as well as warm-up jackets and shooting shirts. In addition, over the last several months, we signed new multi-year sponsorships with Lenovo and its subsidiary, Motorola, and reached multi-year renewals with Verizon and Benjamin Moore. In terms of premium hospitality, we continue to see strong new sales and renewal activity for suites at The Garden. That includes the event-level club space, which was introduced last year and was expanded ahead of the 2024-25 season.

Speaker Change: With respect to marketing partnerships, fiscal 2025 has been highlighted by a number of new deals and renewals so far.

Speaker Change: In October, the company announced a significant multi-year agreement with Abu Dhabi's Department of Culture and Tourism, which included naming Experience Abu Dhabi as the official patch partner of the NICS.

Speaker Change: Their logo now appears on all Knicks game jerseys as well as warm-up jackets and shooting shirts.

Speaker Change: In addition, over the last several months we signed new multi-year sponsorships with Lenovo and its subsidiary Motorola and reached multi-year renewals with Verizon and Benjamin Moore.

Speaker Change: In terms of premium hospitality, we continue to see strong new sales and renewal activity for Suites at the Gardens.

Speaker Change: That includes the event-level club space which was introduced last year and was expanded ahead of the 2024-25 season.

Jamal Husain: In addition, we are seeing the benefit of incremental revenue this year from a number of event and Lexus level suites that were recently renovated. Our business continues to demonstrate strong underlying fundamentals. While the ecosystem for RSNs continues to evolve, as we look ahead, we remain confident in the value of owning marquee sports franchises and our ability to drive long-term shareholder value. With that, I'll now turn the call over to Victoria.

Speaker Change: In addition, we are seeing the benefit of incremental revenue this year from a number of event and Lexus-level suites that were recently renovated.

Our business continues to demonstrate strong underlying fundamentals.

Speaker Change: And while the ecosystem for RSNs continues to evolve, as we look ahead, we remain confident in the value of owning Marquis Forge franchises and our ability to drive long-term shareholder value.

With that, I'll now turn the call over to Victoria.

Victoria Mink: Thank you, Jamal. Good morning, everyone. Results for the fiscal Q2 reflect preseason play and the start of the 2024-2025 regular seasons for the Knicks and Rangers. In aggregate, we hosted 35 pre- and regular season games across both teams as compared to 32 games last year, which positively impacted this quarter's results. I'd also note that our fiscal Q3 and Q4 will reflect three fewer regular season home games in total as compared to the prior year periods. For the fiscal 2025 Q2, total revenues were $357.8 million as compared to $326.9 million in the prior year period, which reflected the impact of more home games at The Garden versus the prior year, as well as increases across every key revenue category on a per-game basis.

Thank you, Jamal, and good morning, everyone.

Victoria Mink: Results for the fiscal second quarter reflect preseason play and the start of the 24-25 regular seasons for the Knicks and Rangers.

Victoria Mink: In aggregate, we hosted 35 pre- and regular-season games across both teams as compared to 32 games last year, which positively impacted this quarter's results.

Victoria Mink: I'd also note that our fiscal third and fourth quarters will reflect three fewer regular season home games in total as compared to the prior year period.

Victoria Mink: For the fiscal 25 second quarter, total revenues were $357.8 million as compared to $326.9 million in the prior year period, which reflected the impact of more home games at the Garden versus the prior year.

Victoria Mink: as well as increases across every key revenue category on a per game basis.

Victoria Mink: Event-related revenues of $139.4 million, which mainly consists of ticketing, food, beverage, and merchandise revenue, increased 14% year over year, while suites and sponsorship revenues of $79.4 million increased 15% year over year. National and local media rights fees of $126.9 million increased 4%, primarily due to the impact of contractual rate increases on our local and national media rights deals, partially offset by the impact of a decrease in the number of games exclusively available to MSG Networks during the current year as compared to the prior year. Adjusted operating income decreased $16.8 million to $20.2 million, primarily due to an increase in direct operating expenses, and to a lesser extent, higher selling, general, and administrative expenses, partially offset by the increase in revenues. Our fiscal 2025 second quarter results include $9.3 million of non-cash arena license fees expense as compared to $9 million in the prior year period.

Event-related revenues of $139.4 million

Victoria Mink: which mainly consists of ticketing, food, beverage, and merchandise revenue increased 14% year-over-year while suites and sponsorship revenues of $79.4 million increased 15% year-over-year.

Victoria Mink: National and local media rights fees of $126.9 million increased 4%.

Victoria Mink: primarily due to the impact of contractual rate increases on our local and national media rights deals, partially offset by the impact of a decrease in the number of games exclusively available to MSG networks during the current year as compared to the prior year.

Victoria Mink: Our fiscal 25 second quarter results include $9.3 million of non-cash arena license fees expense as compared to $9 million in the prior year period.

Victoria Mink: The increase in direct operating expenses primarily reflects higher team personnel compensation and corresponding luxury tax, as well as the impact of certain team personnel transactions. These direct operating expenses reflect the company's expectation that the Knicks will be a significant luxury taxpayer for the 2024-2025 season based on the team's current roster. Turning to our balance sheet. At the end of the quarter, our cash balance was approximately $108 million, and our debt balance was $305 million. This was comprised of $275 million under the Knicks senior secured revolving credit facility and $30 million advanced from the NHL. We are pleased with the demand trends we are seeing across our business so far in fiscal 2025 and remain confident in its long-term trajectory. I will now turn the call back over to Ari.

Victoria Mink: These direct operating expenses reflect the company's expectation that the Knicks will be a significant luxury taxpayer for the 24-25 season based on the team's current roster.

Turning to our balance sheet.

Victoria Mink: At the end of the quarter, our cash balance was approximately $108 million, and our debt balance was $305 million.

Victoria Mink: This was comprised of $275 million under the NICS Senior Secured Revolving Credit Facility and $30 million advanced from the NHL.

Victoria Mink: We are pleased with the demand trends we are seeing across our business so far in Fiscal 25 and remain confident in its long-term trajectory. I will now turn the call back over to Ari.

Ari Danes: Thanks, Victoria. Operator, can we open up the call for questions, please?

Ari Danes: Thanks, Victoria. Operator, can we open up the call for questions, please?

David Brown: Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star one again. Your first question comes from the line of David Karnovsky from J.P. Morgan. Your line is open.

Speaker Change: Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star 1 again. Your first question comes from the line of David Karnofsky from J.P. Morgan. Your line is open.

David Karnovsky: Hey, thank you for the question. Just given the ongoing process with MSG Networks and its lenders and then the blackout with Optimum, obviously there's some risk here to your local rights revenue. Should investors look at the range of outcomes here as simply a reduction to Knicks and Rangers fees, or is there also an opportunity through this process to maybe rethink a bit your distribution structure and look at alternatives like broadcast or streaming, for instance? Thanks.

Speaker Change: Hey, thank you for the question. You know, just given the ongoing process with MSG networks and its lenders and then

Speaker Change: Blackout with optimum. Obviously, there's some risk here to your local rights revenue. So

Speaker Change: Or is there also an opportunity through this process to maybe rethink a bit your distribution structure and look at alternatives like broadcast or streaming, for instance? Thanks.

Jamal Husain: Good morning, David, and thanks for the question. Our focus continues to be on maximizing value for our shareholders and maintaining our connection with our local fans. Now, obviously, there's been industry-wide pressure on local media rights, which includes, as I mentioned earlier, MSG Networks has approached us about negotiating a reduction in our rights fees. MSG Networks is a great partner of ours. Their content helps drive and grow our engagement with our local fan base. That being said, I'm not going to speculate on hypotheticals other than we continue to assess the best path forward for our business, and we remain focused on maximizing long-term value for our shareholders and maintaining that important connection we have with our local fans.

Good morning, David, and thanks for the question.

Speaker Change: Our focus continues to be on maximizing value for our shareholders and maintaining our connection with our local fans.

Speaker Change: Obviously there has been industry-wide pressure on local media rights, which includes, as I mentioned earlier, MSG Networks has approached us about negotiating a reduction in our rights fees.

Drive and Grow, our engagement with our local fan base.

Speaker Change: That being said, I'm not going to speculate on hypotheticals other than we continue to assess the best path forward for our business and we remain focused on maximizing long-term value for our shareholders and maintaining that important connection we have with our local fans.

David Karnovsky: Thanks.

Thanks.

David Brown: Your next question comes from the line of Brandon Ross from LightShed Partners. Your line is open.

Speaker Change: Your next question comes from the line of Brandon Ross from LightShed Partners. Your line is open.

Brandon Ross: Morning. Thanks for taking the question. Maybe a follow-up to what David just asked. If there does end up being a pause in local rights payments from an MSGN bankruptcy, or you have to take a significant reduction of rights fees, can you walk us through your liquidity position to fund team operations, including access to your revolvers and any other sources of capital that you may have?

Brandon Ross: Can you walk us through your liquidity position to fund team operations, including access to your revolvers and any other sources of capital that you may have?

Victoria Mink: Sure. Good morning, Brandon, and thank you for the question. I guess before I get into liquidity, let me just take a step back. If there were a reduction in our local media rights fees in the future, it's important to note that a $1 reduction in revenue doesn't translate into a $1 reduction in cash flow, as there are significant offsetting factors. For example, our revenue sharing expense would decrease, as would our income taxes, given the company's status as a full income cash taxpayer. It's not a one for one. With that said, our liquidity position is strong. We ended the calendar year with over $100 million of cash on hand. In addition, we have the Knicks and Rangers revolving credit facilities in place with $250 million in borrowing capacity available on the Rangers revolver.

Sure. Good morning, Brandon, and thank you for the question.

Brandon Ross: So, I guess before I get into liquidity, let me just take a step back.

Brandon Ross: If there were a reduction in our local media rights fees in the future, it's important to note that a $1 reduction in revenue doesn't translate into a $1 reduction in cash flow, as there are significant offsetting factors.

Brandon Ross: You know, so, for example, our revenue sharing expense would decrease.

Brandon Ross: As would our income taxes, given the company's status as a full-income cash taxpayer. So it's not a one-for-one.

Brandon Ross: You know, but with that said, our liquidity position is strong.

Brandon Ross: We ended the calendar year with over $100 million of cash on hand.

Brandon Ross: In addition, we have the Nixon Rangers revolving credit facilities in place with $250 million in borrowing capacity available on the Rangers revolver.

Victoria Mink: Now, in the event of an MSG Networks bankruptcy, we would need to seek waivers from our lenders to borrow additional funds against either of the facilities. Irrespective of that, we have substantial financial flexibility and are confident we'd be able to borrow funds from a number of other sources if needed.

Brandon Ross: Now, in the event of a Networks, an MSG Networks bankruptcy, we would need to seek waivers from our lenders to borrow additional funds against either of the facilities.

Brandon Ross: Irrespective of that, we have substantial financial flexibility and are confident we'd be able to borrow funds from a number of other sources.

if needed.

Thank you.

Brandon Ross: Thank you.

Thank you.

David Brown: Your next question comes from the line of Ben Swinburne from Morgan Stanley. Your line is open.

Speaker Change: Your next question comes from the line of Ben Swinburne from Morgan Stanley. Your line is open.

Ben Swinburne: Good morning. I guess two topics. I am wondering if you could help us understand how the potential of additional franchise expansion in the NBA impacts MSGS, MSG Sports P&L. In particular, you get your share of those fees, but does that go into the player payroll pot, or does that fall through to the bottom line? Maybe to revisit a topic from a while ago, which is selling a minority stake in the teams, either of the teams which had been talked about a while ago. The NBA and NHL, I think, continue to expand, consider and expand pools of capital that can invest in sports franchises. What's your appetite to let that happen with the teams? Any gain that you would generate, would that be something we should be thinking about as taxable? Thanks so much for all the time.

Ben Swinburne: Good morning. I guess two topics. I'm wondering if you could help us understand how the potential of additional franchise expansion in the NBA impacts MSGS, MSGSports P&L.

Speaker Change: In particular, you get your share of those fees, but does that go into the...

Speaker Change: in a player payroll pot, or does that fall through to the bottom line?

Speaker Change: And then maybe to revisit a topic from a while ago, which is selling a minority stake.

Speaker Change: in the teams, either of the teams which had been talked about a while ago. The NBA and NHL, I think, continue to expand, consider and expand pools of capital that can invest in sports franchises.

Speaker Change: What's your appetite to let that happen with the teams? And any gain that you would generate would that be something we should be thinking about as taxable? Thanks so much for all the time.

Victoria Mink: Great. Good morning, Ben. Let me start. I'll take the first part of your question regarding the expansion. First, we're not going to comment on league matters or hypotheticals. I think what I can say here is that any potential expansion fee is divided equally among the 30 existing NBA teams. Just by way of example, as you may recall, back in fiscal 2021, when the Seattle Kraken joined the NHL, we recognized our pro-rata share of that expansion fee in that fiscal year, and it basically drops right to the bottom line. However, I would note, following any potential expansion, league distributions, for example including the revenue from our national media rights agreements, that would be divided pro rata amongst the increased number of teams on a go-forward basis.

Speaker Change: First, we're not going to comment on league matters or hypotheticals, but I think what I can say here is that any potential expansion fee is divided equally among the 30 existing NBA teams.

Speaker Change: Just by way of example, as you may recall, back in Fiscal 21, when the Seattle Kraken joined the NHL, we recognized our pro-rata share of that expansion fee in that fiscal year and it basically drops right to the bottom line.

Speaker Change: You know, league distributions, for example, you know, including the revenue from our national meteorites agreements, that would be divided pro-rata amongst the increased number of teams on a go-forward basis.

Ben Swinburne: Right. That's a good point. Yeah.

Right, that's a good point.

Jamal Husain: With respect to the second part of your question, Ben, we are as confident as ever in the value of our teams. They are scarce assets, they have strong business fundamentals, and we don't think that those are appropriately reflected in our current stock price. We would never rule out the possibility of a minority stake sale. But we also at this time have nothing concrete to report. With that, I can't speculate on any tax implications of your hypothetical.

Ben Swinburne: And with respect to the second part of your question, Ben...

Ben Swinburne: We are as confident as ever in the value of our teams.

Ben Swinburne: They are scarce assets, they have strong business fundamentals, and we don't think that those are appropriately reflected in our current stock price.

Speaker Change: So we would never rule out the possibility of a minority stakes sale?

Speaker Change: But we also at this time have nothing concrete to report. And with that, I can't speculate on any tax implications of your hypothetical.

Okay, fair enough. Thank you.

Ben Swinburne: Okay. Fair enough. Thank you.

Ari Danes: Thanks, Ben. Operator, we'll take one last caller.

Thanks Ben. Operator will take one last caller.

David Brown: Your final question comes from the line of David Joyce from Seaport Research Partners. Your line is open.

Speaker Change: Your final question comes from a line of David Joyce from Seaport Research Partners. Your line is open.

David Joyce: Thank you. A couple questions, please. First, on sponsorship. You touched on the Experience Abu Dhabi jersey patch. Could you provide some more color on that arrangement and more broadly, the outlook for sponsorship going forward, given you also announced the C4 Energy sponsor this morning? What are the other areas where you could still be growing that revenue line? Secondly, given the various puts and takes on the revenue growth and new team performance, what are your thoughts about ticket pricing for the next year? Thanks.

Thank you. A couple of questions please. First on sponsorship.

Speaker Change: You touched on the experience of the Nauvoo Jersey patch. Can you provide some more color on that arrangement and more broadly the...

Speaker Change: Is the outlook for sponsorship going forward given you also announced C4 Energy is sponsor this morning and what are the other areas where you can still be growing that revenue line?

Speaker Change: And then secondly, given the various puts and takes on the, you know, the revenue growth and new team performance, what are your thoughts about ticket pricing for the next year? Thanks.

Thank you. Thank you.

Victoria Mink: Sure. Good morning, David. Again, I'll take, I think, the first part of your question here around sponsorship. While we don't discuss the specifics of any individual marketing partnership deal, we believe our overall sponsorship category is on track for a solid growth in fiscal 2025. This fiscal year has been highlighted so far by a number of new deals and renewals. As Jamal had mentioned earlier, we announced multi-year extensions with Verizon and Benjamin Moore, as well as a new multi-year deal with Lenovo and its subsidiary, Motorola. We formed a multifaceted partnership with Abu Dhabi's Department of Culture and Tourism with Experience Abu Dhabi becoming a Knicks global marketing partner and the official patch partner of the team. As a global partner, Experience Abu Dhabi can also leverage the Knicks marks outside the US and Canada, expanding the team's brand presence in international markets.

Speaker Change: Good morning, David. Again, I'll take I think the first part of your question here around sponsorship. So, you know, while we don't discuss the specifics of any individual marketing partnership deal, we believe our overall sponsorship category is on track for a solid growth in fiscal 25.

Speaker Change: This fiscal year has been highlighted so far by a number of new deals and renewals and as Jamal had mentioned earlier we announced multi-year extensions with Verizon and Benjamin Moore as well as new multi-year deal with Lenovo and its subsidiary Motorola.

Speaker Change: So we formed a multifaceted partnership with Abu Dhabi's Department of Culture and Tourism, with Experiance Abu Dhabi becoming a NICS global marketing partner and the official patch partner of the team.

Speaker Change: And as a global partner, Experiance Abu Dhabi can also leverage the NYX marks outside the U.S. and Canada, expanding the team's brand presence in international markets.

Victoria Mink: As we've always said, the jersey patch we believe is real premium inventory, and we are pleased with this deal.

Speaker Change: So as we've always said, you know, the Jersey patch we believe is real premium inventory and we are pleased with this deal

Jamal Husain: With respect to our season ticket pricing, those decisions are made both annually and also with a long-term view. We're factoring in how we manage our relationships with our season ticket holders, as well as our goal of maximizing long-term shareholder value. As you may recall, last season or last fiscal, coming off of two successful Knicks and Rangers seasons, we made the decision to not increase season ticket prices for our renewing holders, while at the same time, we have and we continue to opportunistically price both our new season ticket packages as well as our individual and group tickets. With that, we're on track to drive modest overall ticket revenue growth this fiscal year. Looking ahead, we still see opportunity around ticket yield, and we'll continue, as we do every year, to reevaluate our season ticket pricing on an annual basis.

Speaker Change: And with respect to our season ticket pricing, you know those decisions are made both annually and also with a long-term view. We're factoring in how we manage our relationships with our season ticket holders.

as well as our goal of maximizing long-term shareholder value.

Speaker Change: As you may recall, last season, or last fiscal, coming off of two successful Knicks and Rangers seasons,

Speaker Change: We made the decision to not increase season ticket prices for our renewing holders, while at the same time, we have and we continue to opportunistically price both our new season ticket packages, as well as our individual and group tickets.

Speaker Change: And, you know, with that, we're on track to drive modest overall ticket revenue growth this fiscal year. And then looking ahead, we still see opportunity around ticket yield, and we'll continue, as we do every year, to reevaluate our season ticket pricing on an annual basis.

David Joyce: Great. Thank you very much.

Great, thank you very much.

David Brown: That concludes our question and answer session. I will now turn the call back over to Ari Danes for closing remarks.

Speaker Change: And that concludes our question and answer session. I will now turn the call back over to Ari Danes for closing remarks.

Ari Danes: Thank you all for joining us. We look forward to speaking with you on our next earnings call. Have a good day.

Speaker Change: Thank you all for joining us. We look forward to speaking with you on our next earnings call. Have a good day.

David Brown: This concludes today's conference call. Thank you for your participation. You may now disconnect.

Speaker Change: This concludes today's conference call. Thank you for your participation. You may now disconnect.

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