Madison Square Garden Sports Corp. Liquidation Value

Madison Square Garden Sports Corp. (MSGS) presents a deeply negative liquidation posture as of March 31, 2026, consistent with prior periods. MFFAIS-reported CLV is approximately negative $1.63 billion, reflecting the structural asymmetry inherent in this entity: virtually all economically valuable assets — the Knicks and Rangers franchise rights, goodwill, and the Arena License Agreement ROU asset — receive zero or near-zero recovery under the liquidation lens, while the full face-value liability stack remains intact.

On the asset side, total reported assets are $1.51 billion. Applying liquidation haircuts: cash of $107 million recovers at 100%; trade receivables of $71 million at ~90% yields ~$64 million; contract assets (media rights receivable) of $38 million are operationally dependent and likely recover at 0-20% in wind-down; prepaid expenses of $43 million recover near zero; PP&E net of $28 million recovers at 50-70% or roughly $14-20 million; the operating lease ROU asset of $744 million is offset by the corresponding $909 million lease liability and recovers nothing net; goodwill of $227 million recovers at 0%; indefinite-lived intangibles (franchise rights, photographic rights) of $104 million recover at 0% under the lens; deferred tax assets of $31 million recover at 0% in liquidation; and investments (equity securities, equity method, other) of $60 million may recover at fair value for the $38 million FV-NI bucket, with the remainder uncertain.

On the liability side, total reported liabilities are $1.80 billion at face value. Key items: operating lease liabilities of $909 million (undiscounted future payments of $2.33 billion with $1.42 billion in unaccreted discount) are retained at full ASC 842 carrying value in liquidation; long-term debt of $242 million (SOFR-based revolving and term facilities) plus $17 million short-term; deferred revenue of $103 million; accrued employee-related liabilities of $173 million; and the full remaining performance obligation of $468 million (disclosed in narrative). Total reported stockholders' equity is negative $295 million, confirming book-value insolvency before applying further haircuts.

Since the prior filing (December 31, 2025), cash increased from $81 million to $107 million — driven by net operating cash inflow in Q3 of $57 million (reversing Q1-Q2 outflow) — while long-term debt declined from $267 million to $242 million following $25 million Knicks revolving repayment and $7.5 million Rangers NHL Advance repayment. The operating lease liability is effectively unchanged quarter-over-quarter. The Rangers Distribution (potential spin-off of the Rangers business) is disclosed in MD&A as under consideration; no accounting treatment or balance-sheet separation has been reflected. Filing discloses the MSG Networks penny warrants (19.9% equity interest, fair-valued at $2.7 million) in XBRL but the underlying credit risk of MSG Networks — the primary local media rights counterparty whose solvency is cited as a risk factor — is not separately tagged in XBRL. The $28 million reduction in media rights fee rates (28% Knicks cut, 18% Rangers cut effective January 2025) structurally reduces the recoverable receivable from MSG Networks in any distress scenario.