Business Context and Reporting Period
Company: Madison Square Garden Sports Corp. (MSGS)
Filing Type: Form 8-K (Current Report)
Date of Report: November 6, 2025
Event: Entry into Material Definitive Agreements regarding credit facilities for wholly-owned subsidiaries New York Knicks, LLC and New York Rangers, LLC.
Key Financial Metrics and Debt Structure
This filing details the restructuring of revolving credit facilities rather than reporting operational financial results (revenue, profit, or cash flow). Key debt metrics include:
- New Knicks Facility: Senior secured revolving credit facility of up to $425,000,000.
- New Rangers Facility: Senior secured revolving credit facility of up to $250,000,000.
- Outstanding Borrowings (Knicks): $267,000,000 as of November 6, 2025 (refinanced from prior agreement).
- Outstanding Borrowings (Rangers): $0 as of November 6, 2025.
- Maturity Date: November 6, 2030 for both facilities.
- Interest Rates (Knicks): Base rate + 0.25% to 0.375% OR Term SOFR + 0.10% + 1.25% to 1.375%.
- Interest Rates (Rangers): Base rate + 0.375% to 0.625% OR Term SOFR + 0.10% + 1.375% to 1.625%.
- Covenants: Both subsidiaries must maintain a minimum debt service ratio of at least 1.5:1.00.
Material Changes Versus Prior Period
The primary material change is the amendment and restatement of the 2021 Credit Agreements for both subsidiaries:
- Knicks: Increased facility capacity from the prior agreement to $425,000,000. The existing $267,000,000 outstanding balance was fully refinanced under the new terms.
- Rangers: Established a new facility capacity of $250,000,000 with no outstanding borrowings at inception.
- Terms: Both facilities now share a common maturity date of November 6, 2030, extending the previous terms.
Outlook, Risks, and Contingencies
Management Commentary: The facilities are intended to fund working capital needs and general corporate purposes. The interest rates are tied to the credit ratings of the NBA and NHL league-wide credit facilities, respectively.
Risks and Covenants:
- Financial Covenants: Failure to maintain the 1.5:1.00 debt service ratio could trigger default.
- Restrictions: Agreements include customary limitations on indebtedness, liens, restricted payments, and fundamental changes.
- Events of Default: Standard provisions allow lenders to accelerate obligations upon occurrence of default events.
Unusual Items: None reported in this filing.
Investor Verification Checklist
- Verify the full text of Exhibit 10.1 (Knicks) and Exhibit 10.2 (Rangers) for specific covenant definitions and default triggers.
- Confirm the current credit ratings of the NBA and NHL league-wide facilities to determine the exact applicable interest rate margins.
- Monitor future filings to ensure the subsidiaries maintain the required 1.5:1.00 debt service ratio.
- Review the Company's consolidated balance sheet to assess the impact of the $267,000,000 outstanding debt on overall leverage.