SCHEDULE: Dolan Family Secures $100M Margin Loan Against MSG Sports Shares

Members of the Dolan family and associated trusts have pledged over 223,000 Class A shares of Madison Square Garden Sports Corp. as collateral for a new $100 million margin line of credit from JPMorgan Chase Bank, N.A.

Summary

• The Dolan family group, including James L. Dolan, Kathleen M. Dolan, and various trusts, beneficially owns an aggregate of 5,155,023 shares of Class A Common Stock of Madison Square Garden Sports Corp. as of February 27, 2026.
• This ownership represents approximately 21.3% of the total outstanding Class A Common Stock, calculated based on 19,539,816 shares outstanding as of January 30, 2026.
• The beneficial ownership includes 591,295 directly held Class A shares and 4,529,517 Class A shares issuable upon conversion of Class B Common Stock.
• James L. Dolan has entered into a Secured Margin Line of Credit Note with JPMorgan Chase Bank, N.A. for up to $100,000,000.00.
• In connection with this margin loan, James L. Dolan personally pledged 189,613 Class A shares.
• Two family trusts, CFD 2009 Family Trust LLC and CFD 2009 Children's Trust LLC, also pledged 4,431 and 29,249 Class A shares, respectively, as collateral for the same margin line of credit.
• The total Class A shares pledged as collateral amount to 223,293 shares.
• The filing details the individual beneficial ownership percentages for several Dolan family members and trusts, ranging from 0.1% to 13.2% of Class A Common Stock.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral filing. While it provides liquidity to a key shareholder without direct share sales, the introduction of a margin loan also brings inherent risks of forced liquidation under adverse market conditions.

Positives

• The Dolan family maintains a significant aggregate beneficial ownership of 21.3% in Madison Square Garden Sports Corp., indicating continued alignment with shareholder interests.
• The establishment of a $100 million margin line of credit provides James L. Dolan and associated trusts with access to liquidity without directly selling shares, potentially avoiding market impact from large block sales.

Negatives

• Pledging a substantial number of shares (223,293 Class A shares) as collateral for a margin loan introduces leverage and potential forced selling risk if collateral values decline significantly.
• A "collateral shortfall" could lead to the Bank forcing the sale of pledged securities without prior notice, potentially at unfavorable prices, which could depress the stock price.
• The Bank has sole discretion over which securities to liquidate in case of a shortfall, and the borrower is not entitled to choose.
• Changes in eligible collateral or collateral values by the Bank, without advance notice, could trigger a collateral shortfall.
• Floating interest rates on the margin loan could increase borrowing costs, negatively impacting the borrower's financial position.

Risks

• **Collateral Shortfall**: If the value of pledged securities decreases, additional assets may be required, or the loan may need to be paid down. Failure to cure could lead to forced liquidation.
• **Forced Sale of Securities**: The Bank can sell pledged securities without contacting the borrower if a collateral shortfall occurs, potentially at disadvantageous prices.
• **Adverse Tax Consequences**: The forced sale of securities could result in unexpected tax liabilities for the borrower.
• **Changes in Collateral Eligibility/Value**: The Bank can unilaterally change the eligibility or valuation of collateral, which could immediately trigger a collateral shortfall.
• **Increased Borrowing Costs**: Floating interest rates on the margin loan can increase, making the borrowing more expensive.
• **Issuer Event**: Specific events related to Madison Square Garden Sports Corp. (e.g., delisting, trading suspension, restrictions on share pledge/sale, or collateral shares exceeding 9.0% of outstanding shares) could trigger an Event of Default, allowing the Bank to accelerate the loan and liquidate collateral.
• **Event of Default**: Various events, including failure to pay, breach of agreements, insolvency, death/incapacitation of a natural person, entity dissolution, forfeiture proceedings, material adverse change in financial condition, invalidation of security interest, or other liens on the account, could lead to loan acceleration and collateral liquidation.
• **Conflict of Interest**: If the Bank or its affiliates act as investment manager for the pledged accounts, their duties as a secured party may conflict with their fiduciary duties as an investment manager.

Future Outlook

The filing does not contain explicit forward-looking statements or guidance from the company. It primarily reports on changes in beneficial ownership and a new margin loan agreement by a significant shareholder group.

Industry Context

StockSavvy.ai notes that margin loans are a common financing tool for high-net-worth individuals and family offices to access liquidity against their equity holdings without divesting shares. This transaction by the Dolan family, a prominent controlling shareholder group in Madison Square Garden Sports Corp., reflects a strategic financial decision to leverage their existing stake. While providing flexibility, such arrangements also introduce additional risk, particularly in volatile market conditions, which is a standard consideration in the broader financial industry for similar shareholder groups across various sectors.

Comparison to Industry Standards

• StockSavvy.ai observes that the use of margin loans by controlling shareholders is a recognized practice, often seen in companies with dual-class share structures or strong family control, such as News Corp. (NWS) or Ford Motor Company (F).
• The percentage of shares pledged (223,293 shares out of 5,155,023 beneficially owned, or approximately 4.3% of their total beneficial ownership) is within typical ranges for such arrangements, though the specific terms of the loan (e.g., interest rates, collateral maintenance requirements) are confidential.
• The disclosure of potential forced sales and collateral shortfalls aligns with standard risk disclosures for margin facilities, comparable to those seen in filings by other large shareholders leveraging their positions.

Related Party Transactions

• James L. Dolan, a reporting person, entered into a Secured Margin Line of Credit Note with JPMorgan Chase Bank, N.A.
• CFD 2009 Family Trust LLC and CFD 2009 Children's Trust LLC, entities associated with the Dolan family, entered into Margin Line of Credit Collateral Agreements with JPMorgan Chase Bank, N.A. to secure James L. Dolan's obligations.
• These transactions involve a significant shareholder and related entities leveraging their holdings.

Stakeholder Impact

• **Shareholders**: The pledging of shares as collateral introduces a risk of forced selling, which could put downward pressure on the stock price if triggered. However, it also indicates that a major shareholder is seeking liquidity without immediately selling shares into the market.
• **Creditors (JPMorgan Chase Bank, N.A.)**: The bank gains a security interest in a substantial block of Class A Common Stock, mitigating its lending risk.

Next Steps

• The Bank may exercise its rights to foreclose on and dispose of the pledged collateral upon the occurrence of certain customary events of default.
• The borrower may be required to deposit additional collateral or pay down the margin loan if a collateral shortfall occurs.

Key Dates

Recommendation

The filing primarily details a financing arrangement by a major shareholder group, not a change in the company's operational or financial performance. While the margin loan introduces some risk of forced selling, the overall beneficial ownership remains substantial, suggesting continued long-term interest. Investors should monitor market conditions and the company's fundamentals rather than reacting solely to this ownership update.

Keywords

Madison Square Garden Sports Corp., MSGS, Dolan Family, Beneficial Ownership, Schedule 13D, Margin Loan, JPMorgan Chase, Class A Common Stock, Class B Common Stock, Collateral Agreement, SEC Filing, Corporate Governance, Shareholder Ownership, Leverage, Risk Management