NEW YORK - Madison Square Garden Sports Corp. (NYSE:MSGS), a $5.5 billion market cap entertainment company with over $1 billion in annual revenue, announced the immediate resignation of Richard D. Parsons (NYSE:PSN) from its Board of Directors due to health reasons.
The resignation occurred on Monday, and the company has decided not to nominate a replacement at this time, reducing the board size by one member. According to InvestingPro data, MSGS stock has shown strong momentum, delivering a 27.5% return year-to-date.
During the annual meeting of stockholders on Tuesday, Class A and Class B stockholders of the company voted on several key matters. Class A stockholders elected four directors to the board, with Joseph M. Cohen, Ivan Seidenberg, and Anthony J. Vinciquerra receiving over 12 million votes each, and Nelson Peltz receiving over 9 million votes, amidst a number of broker non-votes.
Class B stockholders unanimously re-elected twelve directors, including James L. Dolan, Charles F. Dolan, and other members of the Dolan family, with each director receiving 45,295,170 votes and no opposition.
Additionally, both Class A and Class B stockholders, voting together, ratified the appointment of the company's independent registered public accounting firm for the fiscal year 2025 with an overwhelming majority of over 63 million votes in favor.
Shareholders also approved the company's 2015 Employee Stock Plan, as amended, and the 2015 Stock Plan for Non-Employee Directors, as amended, with more than 60 million votes in favor for each plan. Furthermore, the compensation of the company's named executive officers was approved on an advisory basis, with over 60 million votes in support.
Madison Square Garden Sports Corp., based at Two Pennsylvania Plaza in New York, NY, is in the business of miscellaneous amusement and recreation services. The company maintains a GOOD financial health score according to InvestingPro analysis, with stable operations and moderate debt levels.
The stock is currently trading near its 52-week high of $232.58, reflecting strong investor confidence. InvestingPro subscribers have access to 12 additional key insights and a comprehensive Pro Research Report for MSGS, along with 1,400+ other top US stocks. The information reported is based on a press release statement.
In other recent news, Madison Square Garden Entertainment (NYSE:MSGE) Corp. has repurchased approximately $25 million of its common stock, with about $85 million remaining under its current share repurchase authorization. This move is part of a larger share repurchase program implemented by the company.
In related developments, Madison Square Garden Sports reported significant revenue and earnings that surpassed expectations. The company's revenue reached $53.3 million, primarily driven by a $9.7 million rise in league distribution revenues.
The adjusted operating loss was reported at $2.3 million, marking a 77% improvement from the previous year. Analysts from Macquarie and Guggenheim have responded positively, raising their price targets on the company's stock, citing strong ticket renewal rates and higher team valuations.
The combined average season ticket renewal rate for the New York Knicks and the New York Rangers is approximately 97% for the upcoming 2024-25 seasons. However, an increased payroll for the Knicks and associated luxury tax expenses have led to a revised Adjusted Operating Income forecast for fiscal year 2025, now set at $79 million.
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