Madison Square Garden Sports Corp. (MSGS): Business Model Canvas [Dec-2025 Updated]

You're looking to understand the nuts and bolts of a billion-dollar sports holding company, and frankly, the Business Model Canvas for Madison Square Garden Sports Corp. (MSGS) shows a clear play: own the most valuable real estate in sports media. For fiscal 2025, Madison Square Garden Sports Corp. (MSGS) generated $1,039.2 million in total revenues from the Knicks and Rangers, though operating income was a tight $14.8 million; we'll map out exactly how they convert that iconic brand equity and nearly 94% season ticket renewal rate into that massive top line, detailing the critical media rights and sponsorship deals that keep the engine running, so you can see the structure behind the spectacle.

Madison Square Garden Sports Corp. (MSGS) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that fuel Madison Square Garden Sports Corp.'s operations as of late 2025. These partnerships are critical, especially given the recent shifts in the media landscape. Here's the breakdown, focusing strictly on the hard numbers we have from the Fiscal 2025 results and related announcements.

The overall company revenue for the full fiscal year 2025 reached $1,039.2 million, a 1% increase year-over-year, which sets the stage for how these key deals contribute to the top line.

MSG Networks (local media rights and equity interest)

The relationship with MSG Networks saw significant structural changes effective January 1, 2025, tied to MSG Networks' debt restructuring. This directly impacts the revenue streams for both the New York Knicks and the New York Rangers.

The financial impact of these amendments is quantified as follows:

The local rights fees cost MSG Networks $187 million in 2025 to broadcast both Knicks and Rangers games. As part of the agreement, MSG Networks will issue penny warrants to Madison Square Garden Sports Corp., granting MSGS the right to acquire 19.9% equity interests in MSG Networks.

PepsiCo (expanded multi-year official beverage/food partner)

The renewed and expanded multi-year partnership with PepsiCo was announced in March 2025, positioning them as an Official Partner across the MSG Family of Companies. This is a relationship with a major player; PepsiCo generated nearly $92 billion in net revenue in 2024.

This partnership ensures product placements across venues including Madison Square Garden and Sphere in Las Vegas. The portfolio includes exclusive placements for brands like Gatorade and Pepsi Zero Sugar.

National Basketball Association (NBA) and National Hockey League (NHL)

The leagues provide the core assets for Madison Square Garden Sports Corp. The New York Knicks are one of the league's most valuable franchises, cited with valuations around $6.6 billion by Forbes and $7.43 billion by Sportico around the time of their latest major sponsorship deal.

The Knicks' playoff run to the Eastern Conference Finals in Fiscal 2025 was a financial highlight, despite the overall quarterly revenue decline.

Department of Culture and Tourism - Abu Dhabi (Knicks jersey patch partner)

The multi-year marketing partnership with the Department of Culture and Tourism - Abu Dhabi, making 'Experience Abu Dhabi' the Official Patch Partner of the New York Knicks, began in the 2024-2025 season. This deal is reportedly valued at $30 million a season.

This visibility extends across all Knicks game jerseys, warm-up jackets, and shooting shirts.

Corporate sponsors like Verizon, Lenovo, and Benjamin Moore

Sponsorship and signage revenues are a key component of the business model. For the fiscal 2025 third quarter, sponsorship and signage revenues increased by $8.9 million compared to the prior year period, driven by higher net sales of existing inventory.

Specific corporate relationships include:

• Verizon and Benjamin Moore signed multiyear extensions, contributing to sponsorship and signage income increases seen in the second quarter of fiscal 2025.
• Lenovo is also listed as a key corporate sponsor.

Finance: draft 13-week cash view by Friday.

Madison Square Garden Sports Corp. (MSGS) - Canvas Business Model: Key Activities

You're analyzing the core engine of Madison Square Garden Sports Corp. (MSGS), the day-to-day work that keeps the lights on and the franchises competitive. It all boils down to managing two of the most valuable sports assets in the world.

Owning, managing, and operating the New York Knicks and New York Rangers

This is the foundational activity. For the fiscal year ended June 30, 2025, Madison Square Garden Sports Corp. reported total revenues of $1,039.2 million, which was a 1% increase compared to the prior year. The core business is the operation of these two teams, which drives nearly all other revenue streams. The company is definitely focused on maximizing the value of these scarce assets.

Maximizing team competitiveness through roster investment and personnel transactions

The pursuit of on-court and on-ice success is a major capital allocation decision. The fiscal 2025 results clearly reflect this investment, which comes with a near-term cost. Direct operating expenses increased by 16% to $316.3 million in the fiscal 2025 third quarter compared to the prior year period, driven by higher team personnel compensation and provisions for league revenue sharing and NBA luxury tax. This strategic spending resulted in operating income for fiscal 2025 falling to $14.8 million, a year-over-year decrease of $131.2 million. The impact of the Knicks' 2024-25 roster decisions, including their run to the Eastern Conference Finals, is baked into these figures.

Here's a quick look at the financial outcomes tied to these operational efforts for the full fiscal year 2025:

What this estimate hides is the long-term view: franchise valuation, which stood at an estimated $9.75 billion as of October 2025, is the ultimate measure of this investment strategy.

Monetizing intellectual property (IP) through media and sponsorship sales

Monetizing the IP involves selling media rights and securing partnerships. A significant recent event was the amendment of the local media rights agreements with MSG Networks, effective January 1, 2025. This resulted in annual rights fee reductions of 28% for the Knicks and 18% for the Rangers. Still, the company is actively pursuing new deals; for example, a new multi-year marketing partnership was announced making GAME 7 the first-ever jersey patch partner for the Rangers. In the fiscal 2025 third quarter, sponsorship and signage revenues actually increased by $8.9 million compared to the prior year period due to higher net sales of existing inventory.

Key IP monetization activities include:

• Securing new jersey patch partners, like the multi-year deal with GAME 7 for the Rangers.
• Managing the impact of local media rights fee reductions, which saw annual fees drop by 28% (Knicks) and 18% (Rangers) effective January 1, 2025.
• Generating revenue from league distributions, which increased by $2.4 million in the fiscal 2025 third quarter due to higher national media rights fees.

Generating ticket, suite, and in-venue sales for all home games

This activity is about maximizing per-game revenue from the live experience at Madison Square Garden. The demand remains robust, as shown by the combined average season ticket renewal rate for the 2025-26 seasons being approximately 94% for both teams. In the fiscal 2025 third quarter, ticket-related revenues saw an increase of $0.5 million due to higher average per-game revenue, even with fewer home games played. Suite revenues also increased by $3.4 million in that same quarter due to higher net sales of suite products.

Here are some figures related to premium in-venue sales:

• Knicks home game suite pricing can start around $8,000 per game and go up to $30,000.
• Rangers home game suite pricing can start around $7,000 per game and go up to $24,000.
• Luxury suite rentals at Madison Square Garden generally range from $5,000 to $50,000 depending on the event.
• The Knicks' postseason run in Q4 FY2025 included nine home playoff games.

The core activity here is driving up the average revenue generated per seat, per game, which management noted was growing across tickets, sponsorship, and suites in the fiscal 2025 second quarter.

Madison Square Garden Sports Corp. (MSGS) - Canvas Business Model: Key Resources

The Key Resources for Madison Square Garden Sports Corp. are centered around its ownership of premier, high-value sports intellectual property and the associated media and facility infrastructure.

Iconic professional sports franchises: New York Knicks and New York Rangers

Ownership of these two teams in the New York market represents the core asset base. As of late 2025, franchise valuations reflect this premium positioning:

• New York Knicks valuation: $9.85 billion per Sportico's 2025 NBA Franchise Valuations.
• New York Rangers valuation: Valued at $3.8 billion by CNBC in late 2025 rankings, or $3.65 billion per Sportico's 2025 NHL Franchise Valuations.
• The New York Knicks generated $179 million in regular season gate receipts in the last year, the highest in the NHL/NBA combined leagues reported.
• For fiscal year 2025, Madison Square Garden Sports Corp. reported total revenues of $1.039 billion.
• The Knicks made a run to the Eastern Conference Finals in fiscal year 2025, including nine home playoff games at Madison Square Garden Arena.

Intangible asset of strong brand equity in the largest US media market

The brand equity is inseparable from the location and history, driving strong fan engagement metrics, even when on-court performance fluctuates. The company's market capitalization as of June 2025 was reported at $4.97B. The Knicks' brand power in the world's largest media market is a primary driver of their high valuation.

Long-term local media rights agreements with MSG Networks

These agreements are critical for broadcast revenue, though recently amended as part of MSG Networks' debt restructuring process. The amendments became effective January 1, 2025.

As part of the agreement, MSG Networks issued penny warrants to Madison Square Garden Sports Corp. for 19.9% equity interests in MSG Networks.

Madison Square Garden Training Center (state-of-the-art performance center)

This facility supports player development and performance for the teams. Madison Square Garden Sports Corp. operates the MSG Training Center in Greenburgh, NY.

• The company also operates the CLG Performance Center in Los Angeles, California.

Madison Square Garden Sports Corp. (MSGS) - Canvas Business Model: Value Propositions

You're looking at the core reason Madison Square Garden Sports Corp. (MSGS) commands the valuation it does. The value proposition isn't just about putting on a game; it's about owning irreplaceable, high-demand assets in the world's premier media market. This is the foundation of their pricing power.

The most concrete value is the exclusive ownership of two marquee franchises in New York City. These aren't just any teams; they are the New York Knicks of the NBA and the New York Rangers of the NHL, one of the league's Original Six franchises. This dual-franchise ownership in the New York market creates a unique, year-round sports entertainment platform that few competitors can match.

This ownership translates directly into providing a premium, high-demand live sports experience. The demand for this experience is evident in the per-game revenue metrics. For instance, during the fiscal 2025 second quarter, average per-game revenues across tickets, suites, sponsorship, and merchandise exceeded results from the prior year period. This pricing power is what helps offset the high fixed costs of running these operations.

That premium demand is reinforced by sustained fan loyalty. You see this clearly in the renewal figures for the upcoming season. The combined average season ticket renewal rate for the Knicks and Rangers is approximately 94% for the 2025-2026 seasons. That number is defintely a strong signal of inelastic demand from the core season ticket holder base.

Also critical to the model are the high-value corporate sponsorship opportunities via iconic team brands. Corporate demand remains robust, helping drive revenue growth even as other segments face headwinds. For example, during the fiscal 2025 second quarter, sponsorship and signage revenues increased by $3.1 million compared to the prior year period, driven by higher net sales of existing inventory. Furthermore, the Rangers announced a new multi-year marketing partnership with GAME 7, naming them the first-ever jersey patch partner of the Rangers, which is a prime example of monetizing the team's brand equity.

Here are some of the specific premium inventory components that drive this value:

• Premium hospitality, specifically suite revenues, saw increases in fiscal 2025.
• Sponsorship and signage revenues showed growth in fiscal 2025.
• The Knicks' appeal to youth and lifestyle audiences makes them a hot property for sponsors in 2025.
• The Rangers' affluent, passionate fan base targets finance, spirits, and luxury brands.

Finance: draft the Q2 FY2026 per-game revenue breakdown by category by next Tuesday.

Madison Square Garden Sports Corp. (MSGS) - Canvas Business Model: Customer Relationships

You're looking at how Madison Square Garden Sports Corp. (MSGS) manages its connection with the people who buy tickets and suites for the Knicks and Rangers. It's not one-size-fits-all; the relationship changes based on how much you spend.

Dedicated account management for high-value suite and season ticket holders

For the most committed fans, the relationship is clearly high-touch. The combined average season ticket renewal rate for the New York Knicks and New York Rangers for the 2025-2026 seasons stood at approximately 94%. This high retention suggests a strong, managed relationship, likely involving dedicated support to secure those renewals. Furthermore, suite revenues increased by $7.0 million in the fiscal 2025 second quarter compared to the prior year period, indicating that high-value corporate and premium clients receive tailored service to maintain that spend.

Here's a look at the revenue drivers that necessitate this dedicated approach:

Transactional relationship for single-game ticket and merchandise sales

For the typical single-game buyer or merchandise purchaser, the relationship is more about the immediate transaction. The overall business still relies on high volume, as evidenced by the total fiscal 2025 revenues reaching $1,039.2 million, a 1% increase over the previous year. Even in the fiscal fourth quarter, average regular season per-game revenues for tickets and merchandise saw increases, showing consistent transactional demand.

The transactional side is volume-driven, but still profitable on a per-event basis:

• Pre/regular season food, beverage and merchandise sales increased by $2.1 million in fiscal Q2 2025.
• The Knicks' playoff run, which included nine home playoff games in Q4 FY2025, drove significant single-transaction revenue spikes.

Investment in future AI-driven fan personalization tools

Madison Square Garden Sports Corp. operates within an industry where technology is rapidly changing fan interaction. While direct MSGS AI investment figures aren't explicitly detailed, the broader ecosystem shows a clear trend toward technology integration. For instance, the general industry trend suggests that hyper-personalization can lead to a 20% revenue boost with personalized marketing strategies. Furthermore, the venue itself is seeing technology upgrades; Madison Square Garden Entertainment announced a multi-year partnership with Cisco in December 2025 to power scalable, future-ready experiences for fans using Cisco's networking hardware. This infrastructure investment directly supports the ability to deploy advanced, personalized digital experiences for fans of the teams.

Maintaining high fan engagement through team performance and brand building

Fan engagement is fundamentally tied to the on-ice and on-court product. The Knicks' appearance in the Eastern Conference Finals in fiscal 2025 is a prime example of performance driving engagement and revenue. The company's total revenue for fiscal year 2025 was $1,039.2 million. However, this is balanced against strategic shifts, such as amendments to local media rights agreements where the Knicks saw a 28% cut in annual rights fees and the Rangers an 18% cut. This financial pressure underscores the need for high fan engagement to drive direct revenue streams like ticket sales, which remain robust with the 94% season ticket renewal rate.

Key engagement metrics and financial context for fiscal year 2025:

• FY 2025 Total Revenue: $1,039.2 million.
• Knicks/Rangers Season Ticket Renewal Rate (2025-2026): Approx. 94%.
• Knicks Playoff Home Games (Q4 FY2025): Nine.

Madison Square Garden Sports Corp. (MSGS) - Canvas Business Model: Channels

You're looking at the distribution methods Madison Square Garden Sports Corp. (MSGS) uses to get its value proposition-the New York Knicks and New York Rangers experiences-to the customer as of late 2025. The channels are a mix of traditional venue access and modern media distribution, heavily influenced by recent media rights restructuring.

Live events at Madison Square Garden Arena (The Garden)

This is the core physical channel, driven by ticket sales, premium seating, and in-arena spending. Demand remains robust for the marquee assets. For the fiscal 2025 third quarter, ticket-related revenues saw an increase of $0.5 million compared to the prior year period, driven by higher average Knicks and Rangers per-game revenue, even though the teams played a combined two fewer regular season games at The Garden. Suite revenues also increased by $3.4 million in that quarter due to higher net sales of suite products. The Knicks' run to the Eastern Conference Finals in the fiscal 2025 fourth quarter was a major highlight, including nine home playoff games, which generated the highest per-game gate revenues in team history for that run.

Local media broadcasts via MSG Networks

This channel involves the local television rights for the Knicks and Rangers through the agreement with MSG Networks. This channel faced headwinds in fiscal 2025 due to structural changes. Local media rights fees decreased by $18.6 million in the fiscal 2025 third quarter compared to the prior year period, primarily due to proposed amendments to the local media rights agreements. These amendments, announced in April 2025, included a 28% reduction in annual rights fees payable to the Knicks and an 18% reduction for the Rangers, both effective January 1, 2025.

National media broadcasts via NBA and NHL league agreements

This channel flows through the league-level agreements, which distribute national media rights revenue to Madison Square Garden Sports Corp. Revenues from league distributions increased by $2.4 million in the fiscal 2025 third quarter, primarily due to higher national media rights fees. However, the fourth quarter saw revenues from league distributions decrease by $6.8 million compared to the prior year quarter, largely due to the absence of a non-recurring territorial fee from the NHL of approximately $7 million recognized in the prior year quarter. All NBA teams share equally in national media rights fees, and the NBA is set to see a step up in the average annual value for its national media rights starting the upcoming season.

Direct-to-consumer channels for ticketing and online merchandise sales

This covers direct sales to the end-user, which includes online ticketing platforms and e-commerce for team merchandise. The 2025-26 Knicks and Rangers season ticket renewal initiative, launched in March 2025, saw strong demand. In the second quarter context, the combined season ticket renewal rate for both teams was 97%. Merchandise sales, part of the broader in-arena/event revenue, saw a decrease of $2.5 million in the third quarter compared to the prior year period, partly due to lower online sales of merchandise in the fourth quarter.

Here's a look at the revenue components that flow through these channels for the full fiscal year 2025:

The overall revenue for Madison Square Garden Sports Corp. for fiscal 2025 was $1,039.2 million. Finance: review the Q1 2026 projections for local media rights revenue given the January 1, 2025, fee reductions.

Madison Square Garden Sports Corp. (MSGS) - Canvas Business Model: Customer Segments

You're looking at the core audience for Madison Square Garden Sports Corp. (MSGS), and honestly, the numbers show a deeply committed base that keeps showing up, even with recent media rights adjustments. The most direct measure of this loyalty is the season ticket renewal rate for the upcoming 2025-2026 seasons; the combined average for the New York Knicks and New York Rangers is sitting at approximately 94%. That's a strong indicator of the passionate, loyal New York Knicks and New York Rangers fan bases you mentioned. To be fair, the pricing strategy reflected this segmentation: season ticket prices were raised for the Knicks, while they were not raised for the Rangers, who missed the playoffs in the preceding season.

Next up are the high-net-worth individuals and corporations who buy into the premium experience. These buyers are critical because their spending drives up per-game revenue even when the total number of games is lower. For instance, in the fiscal 2025 third quarter, suite revenues saw an increase of $3.4 million compared to the prior year period, driven by higher net sales of suite products. This segment is clearly resilient, supporting premium hospitality offerings across both teams.

The local, national, and global media consumers form a massive, though sometimes less direct, segment. Their value is tied up in broadcast rights and overall brand reach. You'll remember the local media rights agreements were amended, effective January 1, 2025, as part of MSG Networks' debt workout. This meant the Knicks took a 28% cut in their local rights fee, and the Rangers took an 18% reduction for the 2024-2025 season, with the escalator feature removed. Before these cuts, the broadcast rights for both teams cost MSG Networks $187 million in 2025. Still, the overall fiscal 2025 results showed total revenues of $1,039.2 million, up 1% year-over-year, showing the breadth of the other customer streams.

Finally, corporate sponsors seeking major market brand exposure are a key group, and their spending reflects confidence in the New York market. This is visible in the sponsorship and signage revenue line. In that same fiscal 2025 third quarter, sponsorship and signage revenues increased by $8.9 million compared to the prior year period, primarily due to higher net sales of existing inventory. This growth, alongside the suite revenue increase, helped offset lower local media fees during that quarter.

Here's a quick look at how these segments contributed to the top line for the most recent full fiscal year and the start of the current one:

Finance: draft the Q2 FY2026 revenue projection breakdown by segment by next Tuesday.

Madison Square Garden Sports Corp. (MSGS) - Canvas Business Model: Cost Structure

You're looking at the cost side of Madison Square Garden Sports Corp. (MSGS) as of late 2025, and honestly, the biggest chunk of change goes to keeping the teams competitive. The direct operating expenses are massive, driven heavily by the players.

High direct operating expenses, primarily team personnel costs (player salaries/rosters)

• Direct operating expenses for the fiscal 2025 fourth quarter hit $154.8 million.
• That Q4 figure represented a 44% increase, or $47.1 million, compared to the prior year quarter.
• The main reason for the Q4 jump was higher net provisions for certain team personnel transactions totaling $42.8 million.
• Team personnel compensation itself was also higher by $2.9 million in Q4 fiscal 2025 versus the prior year period.
• Looking at the third quarter of fiscal 2025, direct operating expenses were $316.3 million, up 16% (or $43.3 million) year-over-year.

League expenses and revenue sharing obligations (NBA and NHL)

• League costs are a significant factor, especially when you factor in the NBA's structure.
• In the fiscal 2025 fourth quarter, higher net provisions for league revenue sharing expense (net of escrow and excluding playoffs) and NBA luxury tax added $9.8 million to expenses compared to the prior year period.
• For the fiscal 2025 third quarter, this category was a major driver, with higher net provisions for league revenue sharing expense (net of escrow and excluding playoffs) and NBA luxury tax totaling $33.8 million year-over-year.

Selling, general, and administrative expenses (SG&A)

SG&A costs are the overhead to run the business outside of the direct team operations. They move, but not as dramatically as player costs.

The Q3 decrease was mainly due to lower employee compensation and related benefits of $12.4 million, though this was partially offset by higher professional fees of $7.6 million.

Fiscal 2025 operating income was $14.8 million, a decrease of $131.2 million year-over-year

The bottom line for the full fiscal year 2025 shows the pressure from those costs, even with revenues growing slightly.

• Full-year fiscal 2025 operating income landed at $14.8 million.
• This represents a sharp year-over-year decline of $131.2 million.
• For context, total revenues for fiscal 2025 were $1,039.2 million, an increase of $12.1 million (or 1%) compared to the prior year.

Finance: draft 13-week cash view by Friday.

Madison Square Garden Sports Corp. (MSGS) - Canvas Business Model: Revenue Streams

For the fiscal year ended June 30, 2025, Madison Square Garden Sports Corp. reported total revenues of $1,039.2 million.

You see the revenue generation is a mix of fixed commitments and variable event-driven income, which is typical for this business. The impact of playoff performance and media rights changes really shows up in the quarterly figures. Here's a quick look at how the revenue components performed across the first four quarters of fiscal 2025, showing the variability you need to track.

Ticket-related revenues (regular season and playoffs) and suite licenses are clearly a major driver, especially when playoff runs are deep. The New York Knicks participation in the NBA playoffs in the fourth quarter included nine home playoff games, which compares to fifteen combined home playoff games for the Knicks and New York Rangers in the prior year quarter. The suites business showed strength with strong renewals and new sales activity, including for several recently renovated Lexus-level suites at The Garden.

Sponsorship and signage revenues saw positive momentum in the earlier quarters, with Q3 seeing an increase of $8.9 million compared to the prior year period, driven by higher net sales of existing inventory. The Rangers announced a new multi-year marketing partnership with GAME 7, naming them the first-ever jersey patch partner of the Rangers.

Local and national media rights fees from league distributions are undergoing structural changes. The Knicks and Rangers amended their local media rights agreements with MSG Networks, effectively reducing annual rights fees by 28% for the Knicks and 18% for the Rangers, starting January 2025. National media rights fees did contribute to an increase in league distributions in the second quarter.

Food, beverage, and merchandise sales are tied to game attendance. In the fiscal 2025 fourth quarter, these sales decreased by $1.8 million compared to the prior year quarter, due in part to one fewer combined home game.

You should also note the strong commitment from the season ticket base moving into the next fiscal year:

• The combined average season ticket renewal rate for the Knicks and Rangers is approximately 94% for the 2025-26 seasons.

Finance: draft 13-week cash view by Friday.