MSG Knickerbockers FY2027 Q1 net loss widens to $31.1M
The Knicks' 2026–27 season began with a banner raising and ring celebration for the team's 2025–26 NBA championship.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
MSG Knickerbockers Corp. (MSGK) reported fiscal 2027 first-quarter revenue of $45.5 million, up $6.0 million, or 15%, from a year earlier. Operating loss was $25.5 million, a $2.0 million (7%) improvement; adjusted operating loss was $20.0 million, a $0.8 million (4%) improvement. Net loss was $31.137 million, compared with $8.798 million, and diluted loss per share was $1.29, versus $0.37.
Net cash used in operating activities was $146.268 million, compared with $84.954 million; cash and cash equivalents were $40.046 million as of September 30, 2026. Long-term debt was $282.0 million as of September 30, 2026, versus $242.0 million as of June 30, 2026. Total assets were $1,526.541 million and total liabilities were $1,833.986 million as of September 30, 2026, with total equity of negative $307.445 million. The quarter's consolidated results include the New York Rangers business, which MSG Knickerbockers spun off on October 26, 2026, after quarter-end. Adjusted operating loss excludes depreciation and amortization, share-based compensation, restructuring charges, and gains or losses from remeasuring liabilities under the Executive Deferred Compensation Plan.
2 points · 0 major0 major · 2 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointRevenue rose 15% to $45.5 million year over year.
- Moderate pointOperating loss improved 7% to $25.5 million.
Negative
- Moderate pointNet loss was $31.137 million, versus $8.798 million a year earlier.
- Moderate pointOperating cash use was $146.268 million, versus $84.954 million a year earlier.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Revenue: $45.5 million
Operating loss: $25.5 million loss
Adjusted operating loss: $20.0 million loss
+5 more
8 metrics
Revenue
$45.5 million
Fiscal 2027 first quarter; up $6.0 million, or 15%, from the prior-year period
Operating loss
$25.5 million loss
Fiscal 2027 first quarter; $2.0 million improvement, or 7%, from the prior-year period
Adjusted operating loss
$20.0 million loss
Fiscal 2027 first quarter; $0.8 million improvement, or 4%, from the prior-year period
Net loss
$31.137 million loss
Three months ended September 30, 2026; prior-year period net loss was $8.798 million
Diluted loss per common share
$1.29 loss
Three months ended September 30, 2026; $0.37 loss in 2025
Net cash used in operating activities
$146.268 million
Three months ended September 30, 2026; $84.954 million in 2025
Cash and cash equivalents
$40.046 million
As of September 30, 2026
Total equity
Negative $307.445 million
As of September 30, 2026
Key Terms
adjusted operating loss, share-based compensation, remeasurement of deferred compensation plan liabilities, right-of-use lease assets
4 terms
adjusted operating loss financial
"Adjusted operating loss"
Adjusted operating loss is the company’s operating loss after removing one-time or unusual charges and income that management believes do not reflect ongoing business performance, such as major restructuring costs or gains from selling an asset. Investors use it like looking at a household’s monthly bills after excluding a single big repair bill — it helps show the underlying health of operations, but can be shaped by choices about what to exclude.
remeasurement of deferred compensation plan liabilities financial
"Remeasurement of deferred compensation plan liabilities"
right-of-use lease assets financial
"Right-of-use lease assets"
An asset a lessee records when a lease gives it the right to use an underlying item of property, plant or equipment for a specified period. It is recognized at lease commencement and initially measured as the present value of required lease payments plus certain initial direct costs and prepaid amounts, less any lease incentives; the right-of-use asset is presented alongside a corresponding lease liability and is depreciated (or amortized) over the lease term subject to impairment and any transfer/ownership provisions. The concept applies to lessees’ accounting under modern lease standards (for example IFRS 16 and ASC 842) and does not describe the lessor’s asset or ownership of the underlying property.
Earnings Snapshot
Revenue: $45.5 million
Fiscal 2027 first quarter ended September 30, 2026
Revenue
$45.5 million
$6.0 million increase, or 15%
Operating loss
$25.5 million loss
$2.0 million improvement, or 7%
Adjusted operating loss
$20.0 million loss
$0.8 million improvement, or 4%
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What was MSGK's net loss in fiscal 2027's first quarter?
MSG Knickerbockers reported a $31.137 million net loss for the three months ended September 30, 2026, compared with an $8.798 million net loss for the same period in 2025. Diluted loss per share was $1.29, versus $0.37.
How does MSGK calculate adjusted operating loss?
The company adjusts operating loss for depreciation and amortization, share-based compensation, restructuring charges, and gains or losses from remeasuring liabilities under its Executive Deferred Compensation Plan.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 6, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
| , | , | |||||||||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||||||||
Registrant’s telephone number, including area code: (212) 465-6300
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 | Results of Operations and Financial Condition. | ||||
On November 6, 2026, MSG Knickerbockers Corp. (the “Company”) announced its financial results for its first quarter ended September 30, 2026. A copy of the press release containing the announcement is included as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Exchange Act.
| Item 9.01 | Financial Statements and Exhibits. | ||||
(d) Exhibits
99.1 Press Release dated November 6, 2026.
104 Cover Page Interactive Data File (embedded within the Inline XBRL document).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| MSG KNICKERBOCKERS CORP. | ||||||||||||||
(Registrant) | ||||||||||||||
| By: | /s/ Paul DiCicco | |||||||||||||
| Name: | Paul DiCicco | |||||||||||||
| Title: | Executive Vice President, Chief Financial Officer and Treasurer | |||||||||||||
Dated: November 6, 2026
MSG KNICKERBOCKERS CORP. REPORTS
FISCAL 2027 FIRST QUARTER RESULTS
NEW YORK, N.Y., November 6, 2026 - MSG Knickerbockers Corp. (NYSE: MSGK) ("MSG Knicks" or the "Company") today reported financial results for the fiscal first quarter ended September 30, 2026.
On October 26, 2026, the Company completed the spin-off of its New York Rangers ("Rangers") business. As a result of the timing of the spin-off, the Company’s fiscal 2027 first quarter consolidated results include the financial results of the Rangers business.
For the fiscal 2027 first quarter, the Company generated revenues of $45.5 million, an increase of $6.0 million, or 15%, as compared to the prior year period. In addition, the Company reported an operating loss of $25.5 million, an improvement of $2.0 million, or 7%, and adjusted operating loss of $20.0 million, an improvement of $0.8 million, or 4%, both as compared to the prior year period.(1)
In addition, subsequent to the end of the quarter, the New York Knicks ("Knicks") began their 2026-27 regular season at the Madison Square Garden Arena (“The Garden”) with a banner raising and ring celebration to commemorate the team winning the 2025-26 NBA Championship.
MSG Knickerbockers Corp. Executive Chairman and CEO James L. Dolan said, “With the completion of the spin-off of our Rangers business and a new Knicks season underway, our business is well-positioned to build on our positive operating momentum. We remain confident in the value of owning this storied franchise and our ability to generate long-term shareholder value.”
Financial Results for the Three Months Ended September 30, 2026 and 2025:
| Three Months Ended | ||||||||||||||||||||||||||
| September 30, | Change | |||||||||||||||||||||||||
| $ millions | 2026 | 2025 | $ | % | ||||||||||||||||||||||
| Revenues | $ | 45.5 | $ | 39.5 | $ | 6.0 | 15 | % | ||||||||||||||||||
| Operating loss | $ | (25.5) | $ | (27.4) | $ | 2.0 | 7 | % | ||||||||||||||||||
Adjusted operating loss(1) | $ | (20.0) | $ | (20.8) | $ | 0.8 | 4 | % | ||||||||||||||||||
Note: Does not foot due to rounding.
1.See page 3 of this earnings release for the definition of adjusted operating income (loss) included in the discussion of non-GAAP financial measures.
1
Summary of Financial Results
For the fiscal 2027 first quarter, revenues of $45.5 million increased $6.0 million, or 15%, as compared to the prior year period. This primarily reflected higher revenues from league distributions of $3.1 million, mainly due to an increase in certain league distributions unrelated to national media rights fees. In addition, food, beverage and merchandise sales increased $2.6 million as compared to the prior year period, primarily due to higher Knicks merchandise revenues driven by ongoing demand from the team winning the 2025-26 NBA Championship.
Direct operating expenses of $8.8 million increased $0.5 million, or 7%, as compared to the prior year period. This was primarily driven by (i) higher expenses associated with merchandise sales of $1.6 million, (ii) higher team personnel compensation of $1.3 million, and (iii) higher net provisions for certain team personnel transactions of $0.7 million, mostly offset by (iv) a $3.0 million decrease in net provisions for league revenue sharing expense (net of escrow and excluding playoffs) and NBA luxury tax.
Selling, general and administrative expenses of $60.8 million increased $3.0 million, or 5%, as compared to the prior year period. This increase was primarily driven by (i) expenses related to the spin-off transaction in the current year period of $3.6 million and (ii) higher other general and administrative expenses, partially offset by (iii) lower employee compensation and related benefits of $1.2 million.
Operating loss of $25.5 million improved $2.0 million, or 7%, and adjusted operating loss of $20.0 million improved $0.8 million, or 4%, both as compared to the prior year period, primarily due to higher revenues, partially offset by higher selling, general and administrative expenses.
About MSG Knickerbockers Corp.
MSG Knickerbockers Corp. is a leading professional sports company that owns and operates the New York Knicks (NBA), as well as a development league team, the Westchester Knicks (NBAGL). As an original franchise of the NBA, the Knicks have a rich history, winning three NBA Championships including the 2025-26 NBA Championship. More information is available at msgknicks.com.
2
Non-GAAP Financial Measures
We define adjusted operating income (loss), which is a non-GAAP financial measure, as operating income (loss) excluding (i) depreciation, amortization and impairments of property and equipment, goodwill and other intangible assets, (ii) share-based compensation expense or benefit, (iii) restructuring charges or credits, (iv) gains or losses on sales or dispositions of businesses, (v) the impact of purchase accounting adjustments related to business acquisitions, and (vi) gains and losses related to the remeasurement of liabilities under the Company’s Executive Deferred Compensation Plan. Because it is based upon operating income (loss), adjusted operating income (loss) also excludes interest expense (including cash interest expense) and other non-operating income and expense items. We believe that the exclusion of share-based compensation expense or benefit allows investors to better track the performance of our business without regard to the settlement of an obligation that is not expected to be made in cash. In addition, we believe that the exclusion of gains and losses related to the remeasurement of liabilities under the Company’s Executive Deferred Compensation Plan provides investors with a clearer picture of the Company’s operating performance given that, in accordance with U.S. generally accepted accounting principles (“GAAP”), gains and losses related to the remeasurement of liabilities under the Company’s Executive Deferred Compensation Plan are recognized in operating income (loss) whereas gains and losses related to the remeasurement of the assets under the Company’s Executive Deferred Compensation Plan, which are equal to and therefore fully offset the gains and losses related to the remeasurement of liabilities, are recognized in miscellaneous income (expense), net, which is not reflected in operating income (loss).
We believe adjusted operating income (loss) is an appropriate measure for evaluating the operating performance of our Company. Adjusted operating income (loss) and similar measures with similar titles are common performance measures used by investors and analysts to analyze our performance. Internally, we use revenues and adjusted operating income (loss) as the most important indicators of our business performance, and evaluate management’s effectiveness with specific reference to these indicators. Adjusted operating income (loss) should be viewed as a supplement to and not a substitute for operating income (loss), net income (loss), cash flows from operating activities, and other measures of performance and/or liquidity presented in accordance with GAAP. Since adjusted operating income (loss) is not a measure of performance calculated in accordance with GAAP, this measure may not be comparable to similar measures with similar titles used by other companies. For a reconciliation of operating income (loss) to adjusted operating income (loss), please see page 5 of this earnings release.
Forward-Looking Statements
This press release may contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties, and that actual results, developments or events may differ materially from those in the forward-looking statements as a result of various factors, including financial community perceptions of the Company and its business, operations, financial condition and the industry in which it operates, and the factors described in the Company’s filings with the Securities and Exchange Commission, including the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained therein. The Company disclaims any obligation to update any forward-looking statements contained herein.
# # #
Contacts:
| Ari Danes, CFA Investor Relations (212) 465-6072 | |||||
| Grace Kaminer Investor Relations (212) 631-5076 | |||||
3
MSG KNICKERBOCKERS CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
| Three Months Ended | ||||||||||||||
| September 30, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Revenues | $ | 45,489 | $ | 39,454 | ||||||||||
| Direct operating expenses | 8,824 | 8,279 | ||||||||||||
| Selling, general and administrative expenses | 60,762 | 57,789 | ||||||||||||
| Depreciation and amortization | 781 | 811 | ||||||||||||
| Restructuring charges | 579 | — | ||||||||||||
| Operating loss | (25,457) | (27,425) | ||||||||||||
| Other income (expense): | ||||||||||||||
| Interest income | 473 | 578 | ||||||||||||
| Interest expense | (4,699) | (5,591) | ||||||||||||
| Miscellaneous (expense) income, net | (3,663) | 15,085 | ||||||||||||
| Loss before income taxes | (33,346) | (17,353) | ||||||||||||
| Income tax benefit | 2,209 | 8,555 | ||||||||||||
| Net loss | $ | (31,137) | $ | (8,798) | ||||||||||
| Basic loss per common share attributable to MSG Knickerbockers Corp.’s stockholders | $ | (1.29) | $ | (0.37) | ||||||||||
| Diluted loss per common share attributable to MSG Knickerbockers Corp.’s stockholders | $ | (1.29) | $ | (0.37) | ||||||||||
Basic weighted-average number of common shares outstanding | 24,179 | 24,116 | ||||||||||||
Diluted weighted-average number of common shares outstanding | 24,179 | 24,116 | ||||||||||||
4
MSG KNICKERBOCKERS CORP.
ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS) TO
ADJUSTED OPERATING INCOME (LOSS)
(In thousands)
(Unaudited)
The following is a description of the adjustments to operating loss in arriving at adjusted operating loss as described in this earnings release:
•Depreciation and amortization. This adjustment eliminates depreciation, amortization and impairments of property and equipment, goodwill and other intangible assets in all periods.
•Share-based compensation. This adjustment eliminates the compensation expense related to restricted stock units and stock options granted under the Company's employee stock plan and non-employee director plan in all periods.
•Restructuring charges. This adjustment eliminates costs related to termination benefits provided to certain employees.
•Remeasurement of deferred compensation plan liabilities. This adjustment eliminates the impact of gains and losses related to the remeasurement of liabilities under the Company's Executive Deferred Compensation Plan.
| Three Months Ended | ||||||||||||||
| September 30, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Operating loss | $ | (25,457) | $ | (27,425) | ||||||||||
| Depreciation and amortization | 781 | 811 | ||||||||||||
| Share-based compensation | 3,953 | 4,844 | ||||||||||||
| Restructuring charges | 579 | — | ||||||||||||
| Remeasurement of deferred compensation plan liabilities | 140 | 963 | ||||||||||||
| Adjusted operating loss | $ | (20,004) | $ | (20,807) | ||||||||||
5
MSG KNICKERBOCKERS CORP.
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
| September 30, 2026 | June 30, 2026 | |||||||||||||
| ASSETS | (Unaudited) | |||||||||||||
| Current Assets: | ||||||||||||||
| Cash and cash equivalents | $ | 40,046 | $ | 164,511 | ||||||||||
| Accounts receivable, net of allowance for doubtful accounts of $0 as of September 30, 2026 and June 30, 2026 | 59,597 | 52,184 | ||||||||||||
| Net related party receivables | 65,333 | 36,103 | ||||||||||||
| Prepaid expenses | 96,905 | 43,104 | ||||||||||||
| Other current assets | 23,968 | 27,388 | ||||||||||||
| Total current assets | 285,849 | 323,290 | ||||||||||||
Property and equipment, net of accumulated depreciation and amortization of $56,653 and $55,873 as of September 30, 2026 and June 30, 2026, respectively | 27,129 | 27,163 | ||||||||||||
| Right-of-use lease assets | 738,526 | 740,576 | ||||||||||||
| Indefinite-lived intangible assets | 103,644 | 103,644 | ||||||||||||
| Goodwill | 226,523 | 226,523 | ||||||||||||
| Investments | 63,763 | 65,618 | ||||||||||||
| Deferred tax assets, net | 31,034 | 28,773 | ||||||||||||
| Other assets | 50,073 | 22,065 | ||||||||||||
| Total assets | $ | 1,526,541 | $ | 1,537,652 | ||||||||||
6
MSG KNICKERBOCKERS CORP.
CONSOLIDATED BALANCE SHEETS (continued)
(In thousands, except per share data)
| September 30, 2026 | June 30, 2026 | |||||||||||||
| LIABILITIES AND EQUITY | (Unaudited) | |||||||||||||
| Current Liabilities: | ||||||||||||||
| Accounts payable | $ | 5,929 | $ | 18,411 | ||||||||||
| Net related party payables | 5,411 | 4,964 | ||||||||||||
| Debt | 16,500 | 16,500 | ||||||||||||
| Accrued liabilities: | ||||||||||||||
| Employee-related costs | 58,994 | 159,940 | ||||||||||||
| League-related accruals | 130,860 | 209,926 | ||||||||||||
| Other accrued liabilities | 9,972 | 9,444 | ||||||||||||
| Operating lease liabilities, current | 58,682 | 57,834 | ||||||||||||
| Deferred revenue | 366,415 | 165,416 | ||||||||||||
| Total current liabilities | 652,763 | 642,435 | ||||||||||||
| Long-term debt | 282,000 | 242,000 | ||||||||||||
| Operating lease liabilities, noncurrent | 831,373 | 843,975 | ||||||||||||
| Other employee-related costs | 67,324 | 71,984 | ||||||||||||
| Deferred revenue, noncurrent | 526 | 554 | ||||||||||||
| Total liabilities | 1,833,986 | 1,800,948 | ||||||||||||
| Commitments and contingencies | ||||||||||||||
| MSG Knickerbockers Corp. Stockholders’ Equity: | ||||||||||||||
Class A Common Stock, par value $0.01, 120,000 shares authorized; 19,590 and 19,547 shares outstanding as of September 30, 2026 and June 30, 2026, respectively | 204 | 204 | ||||||||||||
Class B Common Stock, par value $0.01, 30,000 shares authorized; 4,530 shares outstanding as of September 30, 2026 and June 30, 2026 | 45 | 45 | ||||||||||||
Preferred stock, par value $0.01, 15,000 shares authorized; none outstanding as of September 30, 2026 and June 30, 2026 | — | — | ||||||||||||
| Additional paid-in capital | — | 17,090 | ||||||||||||
Treasury stock, at cost, 865 and 908 shares as of September 30, 2026 and June 30, 2026, respectively | (142,652) | (149,858) | ||||||||||||
| Accumulated deficit | (164,127) | (129,861) | ||||||||||||
| Accumulated other comprehensive loss | (915) | (916) | ||||||||||||
| Total equity | (307,445) | (263,296) | ||||||||||||
| Total liabilities and equity | $ | 1,526,541 | $ | 1,537,652 | ||||||||||
7
MSG KNICKERBOCKERS CORP.
SELECTED CASH FLOW INFORMATION
(In thousands)
(Unaudited)
| Three Months Ended | ||||||||||||||
| September 30, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Net cash used in operating activities | $ | (146,268) | $ | (84,954) | ||||||||||
| Net cash used in investing activities | (1,231) | (1,848) | ||||||||||||
| Net cash provided by (used in) financing activities | 23,034 | (9,110) | ||||||||||||
| Net decrease in cash, cash equivalents and restricted cash | (124,465) | (95,912) | ||||||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 164,511 | 153,188 | ||||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 40,046 | $ | 57,276 | ||||||||||
8