Madison Square Garden Sports Corp. reported financial results for its fiscal second quarter ended December 31, 2024, on February 4, 2025. The company generated revenues of $357.8 million, an increase of 9%, or $30.9 million, compared to the prior year period.
Despite revenue growth, operating income decreased by 54%, or $15.5 million, to $13.3 million, and adjusted operating income decreased by 45%, or $16.8 million, to $20.2 million. This decline in profitability was primarily due to a significant increase in direct operating expenses.
Direct operating expenses rose by $43.5 million, or 19%, driven by higher team personnel compensation of $15.2 million and increased net provisions for league revenue sharing expense and NBA luxury tax of $14.9 million. Additionally, net provisions for certain team personnel transactions amounted to $7.6 million in the current period.
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