MSG Sports delivered a strong financial performance in the second quarter of fiscal year 2026, showcasing significant growth across various revenue streams. The company's strategic initiatives, including enhanced fan engagement, renewed media rights agreements, and innovative marketing partnerships, have contributed to a positive outlook. This period saw increased financial flexibility through debt refinancing and a sustained focus on maximizing shareholder value while investing in the core business of its iconic sports franchises.
MSG Sports Bolsters Financial Standing with Robust Q2 2026 Results
On the morning of February 5, 2026, MSG Sports executives, including President and Chief Operating Officer Jamaal T. Lesane, Executive Vice President and Chief Financial Officer Victoria M. Mink, and Senior Vice President of Investor Relations and Treasury Ari Danes, convened to announce impressive second-quarter results for fiscal year 2026. The company reported total revenues of approximately $403 million and an adjusted operating income of roughly $30 million. These figures represent a notable increase from the previous year, fueled by strong momentum across key operational areas.
A significant driver of this growth was the substantial increase in per-game revenues from ticketing, suite sales, sponsorships, and food, beverage, and merchandise. This surge was complemented by higher national media rights fees, benefiting from new NBA deals, and the impact of amended local media rights agreements with MSG Networks. Fan enthusiasm for the Knicks and Rangers played a pivotal role, with a combined season ticket renewal rate of approximately 94%. The company also successfully optimized pricing strategies for individual and group sales, further boosting ticketing revenues.
Strategic marketing partnerships have also been a highlight. The Rangers' centennial season featured a significant multiyear agreement with Game Seven, co-founded by NHL legend Mark Messier, which saw Game Seven become the first-ever jersey patch partner for the team. Other notable partnerships and renewals included agreements with PwC, Polymarket, Anheuser-Busch, and Infosys. These collaborations, along with successful merchandise launches like the Knicks' new kit collection and the Rangers' Centennial Collection, resulted in record-breaking single-game merchandise sales and increased per-cap spending at Madison Square Garden.
Financially, MSG Sports demonstrated prudence by refinancing the Knicks and Rangers' senior secured revolving credit facilities in November 2025. This move improved borrowing rates and extended maturity dates to November 2030, while also increasing the Knicks' credit facility capacity by $150 million to $425 million. As of the end of the quarter, the company maintained a healthy cash balance of approximately $81 million against a debt balance of $291 million, underscoring its commitment to a strong balance sheet and operational liquidity.
Looking ahead, the company continues to assess the evolving landscape of regional sports networks and local media rights. Despite an 18% reduction in annual rights fees from MSG Networks effective January 1, 2025, MSG Sports remains confident in the value of local media coverage and its strong partnership with MSG Networks, which extends through the 2028-2029 season. The strong business fundamentals and robust consumer and corporate demand for its iconic sports franchises position MSG Sports for continued long-term value creation for its shareholders.
This quarter's earnings call from MSG Sports offers a fascinating glimpse into the dynamic interplay between sports, entertainment, and corporate strategy. It highlights how fan loyalty and strategic business decisions can drive significant financial success. The emphasis on both on-court/ice performance and sophisticated marketing, along with careful financial management, paints a picture of a well-rounded and forward-thinking organization. The ability to adapt to changing media landscapes while leveraging the enduring appeal of iconic teams like the Knicks and Rangers provides valuable lessons for businesses in the sports and entertainment industry and beyond. It's a clear testament that passion for the game, when combined with shrewd business acumen, can lead to impressive growth and sustained shareholder value.