Good morning. Thank you for standing by and welcome to the Madison Square Garden Sports Corp Fiscal 2026 Fourth Quarter and Year-End Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's remarks, there will be a question and answer session. I would now like to turn the call over to Ari Daines, Investor Relations. Ari, please go ahead. Thank you. Good morning and welcome to MSG Sports Fiscal 2026 Fourth Quarter and Year-End Earnings Conference Call. Our Chief Operating Officer, Jamal Hussain, will begin this morning's call with a discussion on the company's strategy and operations, as well as an update on the company's proposed spinoff of its Rangers business. This will be followed by a review of our financial results with Paul DeCicco, our EVP Chief Financial Officer and Treasurer. After our prepared remarks, we will open up the call for questions. If you do not have a copy of today's earnings release, it is available in the Investors section of our corporate website. Please take note of the following. Today's discussion may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any such forward-thinking statements are not guarantees of future performance or results and involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Please refer to the company's filings with the SEC for a discussion of risks and uncertainties. The company disclaims any obligation to update any forward- looking statements that may be discussed during this call. On pages 4 and 5 of today's earnings release, we provide consolidated statements of operations and a reconciliation of operating income to adjusted operating income or aoi a non-gap financial measure and with that i'll now turn the call over to jabal thank you ari and good morning everyone i am pleased to be here with you all today following a fiscal year that culminated with the knicks winning an nba championship before i dive further into the next season i would like to take a moment to discuss an important plan that we announced since we last spoke in february potential spin-off of our rangers business from our nix business this transaction would create two distinct publicly traded companies enabling shareholders to more clearly evaluate each company's assets and growth prospects it would also provide both with enhanced strategic and financial flexibility in may we confidentially filed a form 10 registration statement with the sec regarding the proposed spin-off we anticipate publicly filing an updated form 10 registration statement this week and currently expect to complete the spin-offs by the end of october subject to various conditions including board approval we will continue to keep you updated on our progress now let's discuss our operations in more detail For Fiscal 26, MSG Sports generated full-year revenues of approximately $1.2 billion and adjusted operating income of nearly $59 million. These results reflect robust consumer and corporate demand throughout the regular season and, of course, the impact of the Knicks championship run. The Knicks playoff run took over New York City, from electric crowds in arena for home games, to watch parties at various locations throughout the city, to unique activations from our marketing partners, all culminating with the championship parade attended by millions of fans. With this unprecedented momentum, we achieved a number of operational milestones during the postseason. To share a few highlights, on the ticketing front, the Knicks set new league-wide records with the highest per-game gate revenues in NBA history on multiple occasions during the playoffs. With respect to merchandise, within the first 24 hours of clinching the NBA title, the Knicks generated its highest-ever single day of merchandise sales, with this robust demand continuing in the weeks that have followed. And we added over 2.2 million net new social media followers this past year, bringing the Knicks and Rangers combined following to nearly 22 million by the end of June. And this interest wasn't just limited to New York. Nationwide, the championship series became the most watched NBA finals in 28 years. While fan enthusiasm reached new highs during the playoffs, the demand for both the Knicks and Rangers was evident throughout the regular seasons, which we expect to carry forward in fiscal 27. In terms of ticketing, we saw higher per-game revenue year over year during the 2025-26 regular seasons. Looking ahead to the upcoming seasons, we are off to a strong start with season ticket renewals, and we expect our combined season ticket renewal rate to once again reach levels above 90 percent. I would note that consistent with our past practice, we made the decision to not raise season ticket prices for the Rangers as the team did not qualify for the playoffs, but we did raise season ticker prices for the Knicks. This past fiscal year, we also celebrated the Rangers' centennial season, which will culminate with the Rangers 100th anniversary capstone game at the Garden in November against the Montreal Canadiens. That game will also mark the 100th anniversary of the date of the Rangers' first ever game, also against the Montréal franchise. In addition, we continued unique merchandise collaborations with brands such as KISS and New York or Nowhere for both the Knicks and Rangers. These initiatives helped drive robust year-over-year growth in merchandise per cap spending at the arena for Fiscal 26 as compared to the prior year. We also saw fan enthusiasm throughout the fiscal year translate into higher food and beverage per cap spending year-over-year at the Arena. In terms of marketing partnerships, Fiscal 26 was highlighted by a number of significant new sales and renewals. We signed new multi-year partnerships with pwc and polymarket and reached multi-year renewals with lexus anheuser-busch and infofis and in our premium hospitality business we also saw a strong new sales and renewal activity for suites at the garden which included a number of lexus level suites that were renovated at the start of the fiscal year building on this successful initiative several more suites are in the process of being renovated which we expect to drive incremental revenue for our business in fiscal 27. as we look ahead to the upcoming seasons the rangers have had a productive summer including acquiring forward pavel dorothea and defenseman marcus peterson and sean dursey we look forward to the ranger's 2026-27 regular season campaign getting underway this fall and And the Knicks will begin with a special banner-raising celebration in October to tip off the season as defending champions. So in summary, we are proud to have seen the Knick's deliver this year's championship for our fans, partners, employees, and shareholders. And as we pursue a spinoff of our Rangers business, we remain confident in our ability to drive long-term shareholder value. I'd now like to introduce Paul DeCicco, our new EVP Chief Financial Officer and Treasurer. Paul is a seasoned executive with 30 years of experience in a range of global finance roles. His proven track record of strategic financial leadership is an asset to our company, and we are pleased to have him on board. With that, I'll now turn the call over to Paul. Thank you, Jamal, and good morning, everyone. I'm pleased to join you here today in my new role at MSG Sports during such an exciting time for the company. For fiscal 26, we generated total revenues of $1.15 billion and adjusted operating income of $58.7 million. Results for the fiscal fourth quarter reflect the same number of regular season and playoff home games as compared to the prior year period. That includes the completion of the 25-26 regular season, followed by the next playoff run to the finals, which compared to reaching the Eastern Conference Finals in Fiscal 25. For the Fiscal 26 fourth quarter, total revenues were $278.7 million, as compared to $204 million in the prior year period. The event-related revenues of $200.7 billion, which mainly consists of ticket, food, beverage, and merchandise revenues inclusive of playoffs increased 43 percent year over year. Tweets, sponsorship, and signage revenues also inclusive of the playoffs were 39.1 million dollars, an increase of 23 percent year-over-year. National and local media rights fees of 27.7 million dollars were essentially unchanged year- over-year this primarily reflected our amended local telecast rights agreement with MSG networks as well as a decrease in the number of games exclusively available to MSD networks during the current year as compared to the prior year. These decreases were offset by higher national media rights fees due to the NBA's new national media rights deals. Adjusted operating income was $39.6 million as compared to adjusted operating loss of $16.8 million in the prior year quarter, which reflected the increases in revenues partially offset by higher SG&A and direct operating expenses. The increase in costs primarily reflects higher playoff related expenses. I would note that SMA also reflects to a lesser extent 2.9 million dollars in expenses related to the proposed spinoff transaction. This overall increase in cost was partially offset by a decrease in net provisions for certainty personnel transactions recognized in the prior year quarter. As we look ahead, we believe our business is poised to deliver revenue growth across all in arena categories in fiscal 27. In addition, we expect our results to also reflect our continued investment in our teams as well as higher revenue sharing expense i'd also add the nhl's new collective bargaining agreement takes effect in the 2026-27 season as a result we will have one more regular season home game and one fewer pre-season home game for the rangers in fiscal 27. turning to our balance sheet at the end of the quarter our cash balance was approximately 164.5 million dollars and our debt balance was 258.5 billion dollars this was comprised of 242 million dollars under the next senior secured revolving credit facility and 16.5 dollars advanced from the nhl so in summary we remain pleased with the demand we are seeing for our teams as we also pursue the potential separation of our businesses which we are confident would position us well to drive long-term value for our shareholders. I will now turn the call back over to Ari. Operator, can we now open up the call for questions? We will now begin the question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, please press star 1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of David Karnofsky with JP Morgan. Your line is open. Please go ahead. Hi, thank you. And I'm going to be the first to say congrats on the Knicks championship. So regarding the New York Rangers spinoff, can you speak a bit more of the rationale here and should investors read this as a willingness to sell minority stakes in the teams and then relatedly with the pending tax law change uh why enter this benefit now creates a tax challenge across two public companies thank you good morning david and uh thank you for those uh congratulations um with respect to your first question, we believe that our proposed spinoff, as I mentioned earlier, would enable shareholders to more clearly evaluate each company's assets and growth prospects. You know, as it relates to a minority stake sale or the potential for a minority stake sale on either team, our position hasn't changed from what we've articulated on previous calls. We continue to be confident in the value of our teams. We're as confident as ever in that respect. And there continue to be reported transactions in the marketplace that demonstrate that value and scarcity of these assets. And so, as I've said before, we would never rule out the possibility of a minority stake sale, but we don't have anything further to report at this time in that regard. You know, the takeaway here, David, is that this transaction will provide both companies with enhanced strategic and financial flexibility. Thanks, David. I'll take the second part of your question you know as we discussed earlier just now we believe the proposed spin will create long-term value for our shareholders and we're certainly mindful of the implications that the tax laws would have at each company after the separation look but that being said as jamal just said the proposed spinoff does create provide you know provides both companies with strategic and financial flexibility such as enhancing each company's ability to access funding for liquidity particularly as we take into account the implications of our business from these tax law changes okay your next question comes in line of cameron manson perrone with morgan stanley your line is open please go ahead thanks this morning too if i could first on local media rights there's you know a range of evolving approaches across leagues and teams right now between traditional rsn distribution full dtc as we're seeing with the braves um leagues trying to centrally manage and package rights uh jamal what's what's your latest thinking about those various options and what makes sense from your perspective for the msgs teams over time and is are there any league specific factors we should consider that might make the approach different for the Knicks relative to the Rangers, or are you thinking about both teams and local rights in a similar or from a similar lens? And then I have a follow-up. Sure. Thanks for that, Cameron. And great to meet you. You know, as you mentioned, there is a lot going on, but with respect to the Knick and the Rangers local distribution, we have a great partner in MSU networks and our agreements with them run through the 2029 seasons and one of the things that makes them a great partner is that they help us stay connected with our local fans which is of paramount importance to us we're also supportive of what they've been doing on the distribution front including their new partnership with the zone which is a premier streaming platform and with that you know we're not going to speculate on league plans we believe in the value of local media coverage. We believe in the value of content that's tailored for local markets. And as such, we remain confident in our position as a rights holder for these two marquee sports franchises. Great. Appreciate that. Follow-up was just on the question about the future potential tax obligations. Any help quantifying that incremental tax impact for each team when those changes take effect, I guess, assuming current payrolls remain unchanged at each time? Sure, Cameron. I'll take that one. It's nice to meet you as well. So we continue to assess the impact of these tax law changes on our business. But just a quick reminder, these become effective for our fiscal year end, June 30th, 2028. So with that in mind, excluding the impact to the proposed spinoff, we currently estimate these changes result in approximately $60 million in additional income tax expense for that fiscal year. That's fiscal year 28. If the proposed spinoff is completed, the combined income tax expense across the two companies will certainly be higher. I do think it's important to note, though, as you kind of alluded to, the final impact will largely depend on the team rosters at that point in time. Got it. That sounds helpful. Thanks, both. your next question comes from the line of david joyce with seaport research partners your line is open please go ahead thank you well that was an exciting quarter can you help us understand some more of the financial impacts uh on the revenues expenses and aoi from that championship run uh and subsequent to you know the win uh you know there was uh you talk about and not encroaching the next apron. So could you please also give us some operating expense outlook for the next fiscal year, including on the player comp? Thanks. Sure. Sure, David. I'll take those questions and work through those for you. The championship run resulted in a significant incremental business for our company's evidence and our results today. To give a little bit more context, I'll touch on a few areas. And I'll start with tickets. Playoff tickets are priced at a premium to the regular season games with increases each round. As Jamal noted earlier, the Knicks set new NBA records for the per-game gate revenues. Our per-gap spending on F&B and merchandise during the playoffs is typically higher than regular season averages, but we noted it was a notable acceleration during the championship series. Now, what was interesting is we hosted nine playoff games in this past quarter at the Garden, which is the same number of games as the prior year when the Knicks advanced to the Eastern Conference Finals. And just to compare those results, related playoff revenues for the year's fourth quarter were $182 million as compared to $115.2 million in the prior-year period. That's roughly $20.2 billion in average per-game revenues, including the benefits of robust non-game-day merchandise sales. On the flip side, right, there are additional costs in connection with being in the playoffs. We saw approximately $11.2 million on average per game related to direct operating expense, as well as marketing and administrative costs. One quick point I want to make. I won't get into all the specifics, but I know at the last quarter there were increasing expenses for playoffs associated with making the finals and winning the championship. Just to kind of close out on the thread of where we think about that goes, we expect to increase enthusiasm from our fans and partners to create tailwinds across every every aspect of our business for fiscal 27 like tickets sponsorship suites as well as food and beverage and merchandise sales the focus on the second part of your question really around operating expenses i'm not going to provide specific guidance but i will you know we do expect our results for 27 to reflect higher team compensation and luxury tax you know as you know the nba salary cap had increased 10.4 million dollars for the 26-27 season, while the NHL cap increased $8.5 million. And in addition to that, the NBA luxury tax threshold for 26- 27 season increased $12.5 million to approximately $200.4 million. It's an important reminder that this is measured based on the roster at the end of the season. The other area I've mentioned earlier, we also anticipate increased revenue share expense in fiscal 27. Really twofold, really. One is this reflects our current expectations for ongoing revenue growth, excluding the impact of playoffs. In addition, it will partly be due to the impact of the new NHL CBA that goes into effect for the upcoming season. That new CBA slightly changed the calculation for rev share and is expected to result in higher revenue sharing expense for the Rangers. Thanks for the questions, David. Operator, we'll take the next caller. Your next question comes from the line of Joe Stoff with Susquehanna. Your line is open. Please go ahead. Thank you. Good morning. I just wanted to maybe follow up on David's previous question in a little bit more detail. Can I ask, on the sponsorship outlook this coming season, what it looks like, especially considering the Knicks win, And, you know, what that does for you in terms of both pricing and any added inventory and how we think about that number in particular for fiscal 27. Thanks, Joe. I'm actually, I'm glad you touched on that. And just looking back just a little bit, we saw overwhelming demand from our partners during the championship run. And that included not just the obvious presence in our arenas for those exhilarating home games, but it also included the opportunity for them to activate at our viewing parties around the city, and then even on the road, where we hosted a number of partners in Cleveland for the Eastern Conference Finals and in San Antonio for the NBA Finals, all culminating with our giving many of our partners a presence during the championship parade celebration. And so all of that had two effects. One, that valuable time spent enhances our relationship with our partners, and it improves the value proposition moving forward. And then two, we saw sponsorship revenues more than double year over year during the postseason. And so looking ahead, not only do we expect to see the run rate benefit from our fiscal 26 year for fiscal 26 deals in the year ahead, but the next win should actually enable us to sell more sponsorships. So in short, Joe, while we're not providing specific guidance, as we look to fiscal 27, we're seeing great momentum and believe that we are well positioned to drive another year of growth. thanks for the question joe operator we'll take one final caller your last question comes in the line of tyler dimateo with btip your line is open please go ahead hi and uh good morning thank you for taking the questions i have two here i wanted to start on the the nhl side of things i guess how should we think about the the new rodgers deal kicking in this season and the potential financial impact on that. And then along with that, I guess, do you have any early thoughts on the potential new U.S. NHL deal and the renewal of it following the existing deal that concludes next year? Thanks, Tyler. I'll take that one. Tyler, to answer the first part of your question, the NHL begins a new 12-year media rights agreement with Rogers Communications this upcoming season, and they, the NHR, will see a step up in average annual value for its canadian media rights but annual escalators thereafter and so we'll see an increase in our share of those media rights those media rates fees and kind of to piggyback into the second part of your question in terms of the nhl us deals the current agreements run through the 27 28 season and we continue to believe in the value of live professional sports content we expect the nhel will maximize that opportunity okay great and then secondarily here i guess do you have any early thoughts or how do you think about the potential financial impact of domestic expansion for the nba or nhl and just what that could mean for your business and the contribution yeah i won't comment on the nva nhl strategy and whether that occurs or not but i will if an expansion does occur you know as it has in the past, if expansion were to occur, any potential expansion fees in the NBA would be divided equally among the 30 existing NBA teams and vice versa. Any potential expansion feeds in the NHL would be divided among the existing 32 NHL teams. From a league distributions perspective, including revenue from the national media rights agreements, those would be provided pro rata amongst the increased number of teams following any potential extension. There are no further questions at this time. I will now turn the call back to Ari for closing remarks. Thank you all for joining us. We look forward to speaking with you on our next earnings call. Have a good day. This concludes today's call. Thank You for attending. You may now disconnect.