Aug 13, 2026 earnings call — Proposed Rangers spin off and Knicks championship
Company announced a proposed Rangers spin off and reported fiscal 26 total revenues of $1.15 billion.
Revenue $0.3B (est $0.2B) · EPS $1.19 (est $0.64)
Key quotes
"And currently expect to complete the spin off by the end of October."
"Within the first 24 hours of clinching the NBA title, the Knicks generated its highest ever single day of merchandise sales."
"For fiscal 26, we generated total revenues of $1.15 billion and adjusted operating income of $58.7 million"
Analyst Q&A 5
Rangers spinoff and minority stake possibility
Q (David Karnoff · JPMorgan): Why spin off the Rangers now and does this mean you may sell minority stakes in the teams? Also, why would the timing create a tax challenge across two public companies with the pending tax change?
A: Management said the spin off would let shareholders more clearly evaluate each company's assets and growth prospects. They said they would not rule out a minority stake sale but have nothing further to report. They called the transaction a way to provide both companies enhanced strategic and financial flexibility and did not address tax specifics in this answer.
"With respect to your first question, we believe that our proposed spin off as I mentioned earlier, would enable shareholders to more clearly evaluate each company's assets and growth prospects." — Jamaal T. Lesane (COO)
Local media rights and tax impact
Q (Morgan Stanley): What is your view on local media distribution options for the Knicks and Rangers and any league-specific differences? Also, can you quantify incremental tax impact per team when the tax changes take effect, assuming payrolls stay the same?
A: Management said they have a long agreement with MSG Networks through the 28, 29 seasons and value local content and the MSG Networks partnership, including its DAZN deal. On taxes, they said the changes take effect for fiscal year ending June 30, 2028 and, excluding the spin off, they estimate roughly $60 million in additional income tax expense for that fiscal year. They added that if the spin off is completed combined income tax expense across the two companies will be higher and final impact depends on team rosters then.
"we currently estimate these changes result in approximately $60 million in additional income tax expense for that fiscal year." — Paul DiCicco (CFO)
Financial impact of championship run
Q (David Joyce · Seaport Research Partners): How did the Knicks championship affect revenues, expenses and AOI? And what is the operating expense outlook for next fiscal year, including player compensation and luxury tax?
A: Management said the championship run produced significant incremental business and gave details on tickets, per-cap spending, and playoff activity. They cited fourth quarter playoff revenues of $182 million versus $115.2 million the prior year and noted about $11.2 million on average per game in additional operating, marketing and administrative costs. They will not give specific guidance, but expect fiscal 2027 to reflect higher team compensation, higher luxury tax, and increased revenue share expense partly due to the new NHL CBA.
"The championship run resulted in a significant incremental business for our company as evidenced in our results today." — Paul DiCicco (CFO)
Sponsorship outlook after Knicks win
Q (Joseph Robert Stauff · Susquehanna): What does the Knicks win mean for sponsorships next season — pricing, inventory, and how to think about sponsorship revenue for fiscal 2027?
A: Management said they saw overwhelming demand from partners during the championship run, with activations in arenas, viewing parties, on the road, and at the parade. They said that time with partners enhances relationships and improves their value proposition, and sponsorship revenues more than doubled year over year during the postseason. Looking ahead they expect run-rate benefits, the ability to sell more sponsorships, and strong momentum, though they are not providing specific guidance.
"we saw sponsorship revenues more than double year over year during the postseason" — Jamaal T. Lesane (COO)
NHL media deals and expansion impact
Q (Tyler DiMatteo · BTIG): How will the new Rogers deal affect the NHL and your share of media rights? Any thoughts on the U.S. NHL deal renewal? And what would domestic expansion mean financially for your teams?
A: Management said the NHL begins a new 12-year media rights agreement with Rogers this upcoming season and the league will see a step up in average annual value with annual escalators, which increases MSG's share of media rights fees. They noted current U.S. agreements run through the 2027-2028 season and expect the NHL to maximize the value of live sports content. On expansion, they would not comment on league strategy but said any expansion fees would be divided equally among existing teams and league distributions would be divided pro rata among the increased number of teams.
"the NHL begins a new 12-year media rights agreement with the Rogers Communications this upcoming season." — Jamaal T. Lesane (COO)