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In a significant corporate move, Madison Square Garden Sports Corp. (NYSE:MSGS), currently valued at $4.6 billion with shares trading at $191.24, has officially changed its state of incorporation from Delaware to Nevada. According to InvestingPro data, the company maintains a moderate debt level while trading at notably high earnings and EBITDA multiples. This change, known as a redomestication, was approved by shareholders at a special meeting held on June 10, 2025, and became effective at 11:59 p.m. Eastern Time on the same day.
The transition to Nevada does not affect the company’s business operations, management, properties, or the location of its offices and facilities. While the redomestication process won’t impact core operations, InvestingPro analysis indicates the company’s current ratio of 0.52 suggests short-term obligations exceed liquid assets, a factor investors should monitor. There will be no impact on the number of employees, assets, liabilities, or net worth, aside from the expenses associated with the redomestication process. All material contracts with third parties remain unchanged, with the company’s rights and obligations under these agreements continuing post-redomestication.
With the redomestication, the internal affairs of Madison Square Garden Sports Corp. will now be governed by Nevada law. The company’s existing certificate of incorporation and bylaws are replaced by newly adopted articles of incorporation and bylaws appropriate for a Nevada corporation.
Shareholders are not required to exchange their existing stock certificates for new ones. All outstanding shares of Class A and Class B common stock, along with warrants, options, and other equity or equity-based awards, have been converted to the equivalent in the Nevada corporation, maintaining the same terms and conditions. The company’s Class A common stock will continue to trade on the New York Stock Exchange under the ticker "MSGS."
The redomestication has led to some changes in shareholder rights, detailed in the proxy statement filed with the SEC on April 23, 2025. These changes, along with the Plan of Conversion, Nevada Charter, and Nevada Bylaws, are filed with this current report and incorporated by reference.
This strategic move was made following a vote where 50,880,312 votes were in favor, 10,204,353 against, and 257,218 abstained. There were no broker non-votes. As investors await the company’s next earnings report on August 14, 2025, InvestingPro subscribers can access detailed financial analysis and 10 additional ProTips about MSGS’s performance and outlook. The full details of the vote and the implications of the redomestication can be found in the proxy statement and additional documents filed with the SEC.
This article is based on information from a press release statement.
In other recent news, Madison Square Garden Sports Corp. reported fiscal third-quarter results that fell short of analyst expectations. The company posted a loss of $0.59 per share, significantly missing the projected $1.71 profit. Revenue for the quarter was $424.2 million, which did not meet the consensus estimate of $437.04 million. The shortfall was attributed to lower local media rights fees and fewer games played by the New York Knicks and Rangers at Madison Square Garden compared to the previous year. Despite these challenges, the company noted growth in per-game revenues due to strong demand for the Knicks and Rangers.
Additionally, operating income dropped 59% to $32.3 million, and adjusted operating income decreased 58% to $36.9 million from the prior year. These declines were mainly due to higher direct operating expenses and reduced revenues. On the organizational front, the New York Knicks, owned by Madison Square Garden Sports, parted ways with head coach Tom Thibodeau. The decision was made as part of the team’s strategy to pursue an NBA championship, though a successor has not yet been announced. Despite the financial setbacks, the company expressed confidence in the value of owning major sports franchises.
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