Madison Square Garden Sports Corp

Item 1A. Risk Factors

The risk factor set forth below should be read carefully in conjunction with the risk factors discussed in Part I, Item 1A. Risk Factors of our Annual Report on Form 10-K for the fiscal year ended June 30, 2024, which could materially impact our business, financial condition and results of operations.

Local Media Rights Are a Significant Revenue Stream for Our Business and . Decreases in Local Media Rights Revenue, including from a Work-Out or Bankruptcy of MSG Networks, Could  Have a Material NegativeHad an Adverse Effect on our Business and Results of Operations.

Solvency an, and the Effect of Future Reductions, Including from a Bankruptcy of MSG Networks, Could be Material.

Business disrupconditions impacting our broadcasting partner, MSG Networks, including the work-out or bankruptcy of MSG Networks (as discussed below) and/or actions by the NBA or NHL or their national broadcast partners, chave in the past adversely affected and could ain the future materially adversely affect the revenue that can be derived from these media rights.

In October 2015, the Knicks and the Rangers entered into 20-year local media rights agreements with MSG Networks, a regional sports network and wholly-owned subsidiary of Sphere Entertainment. These agreements provide MSG Networks with exclusive local linear and digital rights to home and away games of the Knicks and the Rangers, as well as other team-related programming.

In recent years, certain regional sports networks have experienced finsignificant financial difficulties. For example, in March 2023, Diamond Sports Group, an unconsolidated subsidiary of Sinclair Broadcasting Group Inc., which licensed and distributed sports content in a number of regional markets, filed for protection under Chapter 11 of the bankruptcy code. As a result, the majority of Diamond Sports Groups media rights agreements were either rejected in connection with the bankruptcy proceedings or expired without renewal. For example, during its bankruptcy, Diamond Sports Group ended its media rights agreements with a number of NHL, NBA and MLB teams, and emerged from bankruptcy owning rights to 29 teams (compared to 42 teams prior to its bankruptcy).

MSG Networks was not able to refinance its credit facilities prior to their maturity in October 2024 and entered into a forbearance agreement with its lenders that initially terminated on November 8while pursuing a work-out of its indebtedness. On April 25, 2024 an5, MSG Networks announced that has been extit had reached an agreement among its lended numerous times with a current terminars, the Knicks and the Rangers, and Sphere Entertainment to support certain proposed transactions to reduce and restructure its credit facilities (collectively, the Proposed Transaction dates). As part of February 4, 2025. According this debt restructuring, the Knicks and the Rangers agreed to reccertain amendment public filings, MSG Networks to those local media rights anticipates that any furgreements, including, effective as of January 1, 2025, fee reductions of 28% for ther extension would be for at least several weeks. MSG Networks has indicated that it is pursuing a  Knicks and 18% for the Rangers with no annual rights fee escalators. As proposed, the term of the media rights agreements would also be reduced to end after the 2028-29 seasons, subject to a right of first refusal in favor of MSG Network-ous. As a result of its indebtedness and, if the proposed amendments, the work-out is not successful, may seek bankruptcy Company expects that media rights fees will be approtectiximately $1.1 million prilower for tohe the lree months enders exercising theird June 30, 2025 compared to the prior year period. Stated annual local media rights under its credit facilities. Tfees, subject to adjustments in certain circumstances, including if the expiration Company does not make available a minimum number of games to MSG Networks affiliin the year, after consideration agreeof the media rights amendment with Altice without renewal on December 31, 2024 could increases contemplated in the Transaction Support Agreement are anticipated to be approximately $162.9 million and $139.2 million for the risk that MSG Networks will seek bankruptcy proteyears ending June 30, 2025 and 2026, respection. As part of a work-out, MSG Networks has sought to renegotiate itsvely. The Proposed Transactions, including the amendments to the media rights agreements prior to expira, are subject to the execution, including to reduce the fees thereunder, of definitive documentation. See Part I Item 2. Managements Discussion and in the absenceAnalysis of Financial Condition and Results of renegotiation, may seekOperations Matters Affecting Comparability Proposed Amendments to discharge those aMedia Rights Agreements as pof this Quart of a bankruptcy proceeerly Report on Form 10-Q for more information regarding. Med the amendments to the local media rights revenues foragreements.

Although the Knicks and Rangersparties have agreed to work totaled $175.3 million in fiscal year 2024 gether and use commercially reasonable and timely efforts to support, implement and stated rights fees for fiscal year 2025 total up to approximately $186.7 million (which amounfinalize the Proposed Transactions, if the Proposed Transactions are not successfully implemented, MSG Networks could seek bankruptcy protection prior to the lenders exercising their rights under its are subject to reductcredit facilities. MSG Networks may also seek bankruptcy protection if gameits broadcast by the leagues national broadcast partners exceed certain numbers of games). usiness conditions deteriorate at a more rapid pace than it currently expects, including as a result of carriage disputes between MSG Networks and its distributors.

If MSG Networks were to discharge its media rights agreements with us as part of a bankruptcy proceeding, we would lose a significant recurring revenue stream with stated rights fees that increase annually, and would also lose the exposure provided by the MSG Networks broadcasting related to the Knicks and the Rangers, any of which could have a material negative effect on our business and results of operations. Although we would pursue alternative sources of distribution for home and away games of the Knicks and the Rangers, as well

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as other team-related programming, there can be no assurances as to the timing or success of such alternative sources of distribution, all of which would be subject to the approval of the applicable league.

In addition, financial difficwe had an outstanding receivable balance of $30.1 million at March 31, 2025 from MSG Networks related to unpaid amounts under the media rights agreements. If MSG Networks were to experience a bankruptcy or insolvency event, some or all of this accounts receivable balance could be impaired, which may have a material adverse effect on our liquidity.

Financial difficulties by MSG Networks also may have negative implications under our credit facilities. For example, the if MSG Networks were to experience a bankruptcy or insolvency event (as set forth in each of the Knicks Credit Agreement and Rangers Credit Agreement ), we would be prevented, absent a cure or waiver, from making borrowings under our revolving credit facilities. Further, the Rangers Credit Agreement (as defined herein), which had no borrowings outstanding as of DecemberMarch 31, 20245, includes an event of default upon a bankruptcy or insolvency event (as set forth in the Rangers Credit Agreement) with respect to a material media rights counterparty, including MSG Networks. See Economic and Business Relationship Risks Certain of Our Subsidiaries Have Incurred Substantial Indebtedness, and the Occurrence of an Event of Default Under Our Subsidiaries Credit Facilities or Our Inability to Repay Such Indebtedness When Due Could Substantially Impair the Assets of Those Subsidiaries and Have a Negative Effect on Our Business in our Annual Report on Form 10-K for the fiscal year ended June 30, 2024.

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