Madison Square Garden Sports Corp.MSGS

Madison Square Garden Sports Corp. Fair Value Disclosure

10-KFiled Aug 12, 20252 min read
Fair Value Measurements
The following table presents the Company’s assets that are measured at fair value on a recurring basis, which include cash equivalents:
Fair Value HierarchyJune 30,
20252024
Assets:
Money market accountsI$95,367 $37,594 
Time depositsI48,263 49,510 
Equity investmentsI32,826 36,217 
WarrantsIII1,604 6,995 
Total assets measured at fair value$178,060 $130,316 
Level I Inputs
Assets that are classified within Level I of the fair value hierarchy are valued using observable inputs that reflect quoted prices for identical assets in active markets. The carrying amount of the Company’s money market accounts and time deposits approximates fair value due to their short-term maturities. Refer to Note 10 for further details regarding equity investments.
Level III Inputs
The Company’s level III assets consist of warrants entitling the Company to acquire additional common stock of Xtract One. The Company’s warrants are included within Investments in the accompanying consolidated balance sheets. Changes in the fair value of derivative instruments are measured at each reporting date and are recorded within Miscellaneous (expense) income, net in the accompanying consolidated statements of operations. The fair value of the Company’s warrants in Xtract One were determined using the Black-Scholes option pricing model. The following are key assumptions used to calculate the fair value of the warrants as of June 30, 2025 and 2024:
June 30, 2025June 30, 2024
Expected term1.30 years1.80 years
Expected volatility70.78 %64.15 %
Risk-free interest rate3.85 %4.73 %
The following table presents additional information about our assets for which we utilize Level III inputs to determine fair value:
Years Ended June 30,
20252024
Balance at beginning of period $6,995 $13,098 
Purchases of warrants— 215 
Unrealized losses on warrants(5,391)(6,318)
Balance at ending of period$1,604 $6,995 
The carrying value and fair value of the Company’s financial instruments reported in the accompanying consolidated balance sheets are as follows:
June 30, 2025June 30, 2024
Carrying
Value		Fair
Value		Carrying
Value		Fair
Value
Liabilities
Debt, current (a)
$24,000 $24,000 $30,000 $30,000 
Long-term debt (b)
$267,000 $267,000 $275,000 $275,000 
_________________
(a)The Company’s debt, current is classified within Level II of the fair value hierarchy as it is valued using quoted indices of similar securities for which the inputs are readily observable. The fair value of the Company’s debt, current is the same as its carrying amount based on valuation of similar securities. See Note 13 for further details.
(b)The Company’s long-term debt is classified within Level II of the fair value hierarchy as it is valued using quoted indices of similar securities for which the inputs are readily observable. The fair value of the Company’s long-term debt is the same as its carrying amount as the facilities bear interest at a variable rate indexed to current market conditions. See Note 13 for more information.

Historical Timeline

Fiscal YearFiled
2025Aug 12, 2025Showing above
2024Aug 13, 2024
2023Aug 17, 2023
2022Aug 18, 2022
2021Aug 19, 2021
2020Aug 31, 2020
2019Aug 20, 2019
2018Aug 17, 2018
2017Aug 17, 2017
2016Aug 19, 2016

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.

Other Available Disclosures

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