<PAGE>

                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.  20549

                                   FORM 10-Q

X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
-
ACT OF 1934

For the quarterly period ended November 3, 2001
                               ----------------

                                      OR

_ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the transition period from ___________________ to ____________________

Commission File No. 1-13426
                    -------

                          THE SPORTS AUTHORITY, INC.
                          --------------------------
            (Exact name of registrant as specified in its charter)


              Delaware                                 36-3511120
 ---------------------------------------      -----------------------------
    (State or other jurisdiction of                  (I.R.S. Employer
    incorporation or organization)                 Identification No.)

3383 N. State Road 7, Ft. Lauderdale, Florida     33319
----------------------------------------------------------------------------
    (Address of principal executive offices)      (Zip Code)

                                (954) 735-1701
                          __________________________

             (Registrant's telephone number, including area code)

    Indicate by check mark whether the registrant:  (1) has filed all reports
     required to be filed by Section 13 or 15 (d) of the Securities Exchange Act
     of 1934 during the preceding 12 months (or for such shorter period that the
     registrant was required to file such reports), and (2) has been subject to
     such filing requirements for the past 90 days.

              Yes      X           No _______
                  -------------

Number of shares of Common Stock outstanding at December 14, 2001:  32,698,282
                                                                    ----------
<PAGE>

                          THE SPORTS AUTHORITY, INC.


                              INDEX TO FORM 10-Q



                                                                     Page Number
                                                                     -----------

Part I.   FINANCIAL INFORMATION

          Item 1.   Financial Statements

                    Consolidated Statements of Operations                  3

                    Consolidated Balance Sheets                            4

                    Consolidated Statements of Cash Flows                  5

                    Notes to Consolidated Financial Statements             6

          Item 2.   Management's Discussion and Analysis of Financial
                    Condition and Results of Operations                    9

Part II.  OTHER INFORMATION

          Item 6.   Exhibits and Reports on Form 8-K                      14


SIGNATURES                                                                15

INDEX TO EXHIBITS                                                         16

                                       2
<PAGE>

Part I. FINANCIAL INFORMATION
Item 1. Financial Statements

                          THE SPORTS AUTHORITY, INC.
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                     (In thousands, except per share data)
<TABLE>
<CAPTION>


                                                               13 Weeks Ended              39 Weeks Ended
                                                         -------------------------  ------------------------
                                                         November 3,   October 28,  November 3,   October 28,
                                                             2001          2000         2001         2000
                                                         -----------   -----------  -----------   -----------
                                                             (Unaudited)                (Unaudited)
<S>                                                      <C>           <C>          <C>           <C>
Sales                                                     $  304,825   $   331,919  $ 1,014,975   $ 1,070,925
License fees and rental income                                   775           581        2,345         1,894
                                                          ----------   -----------  -----------   -----------
                                                             305,600       332,500    1,017,320     1,072,819
                                                          ----------   -----------  -----------   -----------
Cost of merchandise sold, including
       buying and occupancy costs                            221,517       242,149      739,328       789,673
Selling, general and administrative expenses                  85,625        89,646      267,424       272,559
Pre-opening expense                                                -           331            -         2,131
                                                          ----------   -----------  -----------   -----------
                                                             307,142       332,126    1,006,752     1,064,363
                                                          ----------   -----------  -----------   -----------

Store exit costs                                                 272             -        1,855             -
Corporate restructuring                                            -             -          800             -
                                                          ----------   -----------  -----------   -----------

       Operating income (loss)                                (1,814)          374        7,913         8,456
Interest, net                                                  2,710         5,023       11,227        14,583
                                                          ----------   -----------  -----------   -----------

Loss before extraordinary gain and cumulative effect
 of change in accounting principle                            (4,524)       (4,649)      (3,314)       (6,127)
Extraordinary gain, net of tax                                     -             -          548        18,631
Cumulative effect of change in accounting principle                -             -         (503)            -
                                                          ----------   -----------  -----------   -----------

       Net income (loss)                                  $   (4,524)  $    (4,649) $    (3,269)  $    12,504
                                                          ==========   ===========  ===========   ===========

Earnings (loss) per common share-basic and diluted
     Loss before extraordinary gain and cumulative
       effect of change in accounting principle               $(0.14)       $(0.14)  $    (0.10)  $     (0.18)
     Extraordinary gain                                            -             -         0.02          0.57
     Cumulative effect of change in accounting                     -             -        (0.02)            -
      principle                                           ----------   -----------   ----------   -----------
     Net income (loss)                                        $(0.14)       $(0.14)  $    (0.10)  $      0.39
                                                          ==========   ===========   ==========   ===========

Weighted average common shares outstanding:
       Basic                                                  32,634        32,315       32,599        32,271
                                                          ==========   ===========   ==========   ===========

       Diluted                                                32,634        32,315       32,599        32,271
                                                          ==========   ===========   ==========   ===========
</TABLE>


          See accompanying Notes to Consolidated Financial Statements

                                       3
<PAGE>

                           THE SPORTS AUTHORITY, INC.
                          CONSOLIDATED BALANCE SHEETS
                                (In thousands)

<TABLE>
<CAPTION>
                                                                                             November 3,         February 3,
                                                                                                 2001                2001
                                                                                             -------------       ------------
                                                                                              (Unaudited)
<S>                                                                                          <C>                 <C>
Assets
Current assets:
   Cash and cash equivalents                                                                     $   6,334          $   7,535
   Merchandise inventories                                                                         410,273            393,087
   Receivables and other current assets                                                             31,088             32,690
                                                                                                 ---------          ---------
       Total current assets                                                                        447,695            433,312

Net property and equipment                                                                         152,281            212,991
Other assets and deferred charges                                                                   16,208             16,244
                                                                                                 ---------          ---------

       Total assets                                                                              $ 616,184          $ 662,547
                                                                                                 =========          =========

Liabilities and Stockholders' Equity
Current liabilities:
   Accounts payable - trade                                                                      $ 128,174          $  97,097
   Accrued payroll and other liabilities                                                            91,670            114,990
   Current debt                                                                                        938             45,756
   Taxes other than income taxes                                                                    12,920             10,380
   Income taxes                                                                                      5,036              4,889
                                                                                                 ---------          ---------
       Total current liabilities                                                                   238,738            273,112

Long-term debt                                                                                     201,098            205,100
Other long-term liabilities                                                                         36,559             42,018
                                                                                                 ---------          ---------

       Total liabilities                                                                           476,395            520,230

Stockholders' equity:
   Common stock, $.01 par value, 100,000 shares
      authorized, 32,698 and 32,449 shares issued, respectively                                        327                324
   Additional paid-in capital                                                                      253,002            252,279
   Deferred compensation                                                                              (459)               (83)
   Accumulated deficit                                                                            (112,952)          (109,683)
   Accumulated other comprehensive income                                                              391                  -
   Treasury stock, 56 shares at cost                                                                  (520)              (520)
                                                                                                 ---------          ---------
       Total stockholders' equity                                                                  139,789            142,317
                                                                                                 ---------          ---------

       Total liabilities and stockholders' equity                                                $ 616,184          $ 662,547
                                                                                                 =========          =========
</TABLE>

          See accompanying Notes to Consolidated Financial Statements

                                       4
<PAGE>

                          THE SPORTS AUTHORITY, INC.
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (In thousands)

<TABLE>
<CAPTION>
                                                                                                      39 Weeks Ended
                                                                                             --------------------------------
                                                                                               November 3,       October 28,
                                                                                                  2001               2000
                                                                                             -------------       ------------
                                                                                                          (Unaudited)
<S>                                                                                          <C>                 <C>
Cash provided by (used for):

Operations
   Net income (loss)                                                                              $ (3,269)          $ 12,504
   Adjustments to reconcile net income (loss) to operating cash flows:
       Depreciation and amortization                                                                31,585             30,135
       Extraordinary gain                                                                             (548)           (20,631)
       Cumulative effect of change in accounting principle                                             503                  -
       Cumulative translation adjustment                                                                 -                309
       Store closing charges                                                                         1,855                  -
       Corporate restructuring                                                                         800                  -
   Cash provided by (used for) current assets and liabilities:
       Decrease in receivables and other current assets                                              1,993             24,137
       Increase in merchandise inventories                                                         (17,689)           (52,946)
       Increase in accounts payable - trade                                                         31,077             45,084
       Decrease in accrued payroll and other liabilities                                           (26,040)           (16,360)
       Decrease in other long-term liabilities                                                      (6,237)            (4,037)
       Other - net                                                                                   1,462              2,139
                                                                                                  --------           --------

       Net cash provided by operations                                                              15,492             20,334
                                                                                                  --------           --------

Investing
   Capital expenditures                                                                            (12,371)           (32,301)
   Proceeds from sale of property, plant, and equipment                                             43,931                  -
   Other - net                                                                                           -             (2,000)
                                                                                                  --------           --------

       Net cash provided by (used for) investing                                                    31,560            (34,301)
                                                                                                  --------           --------

Financing
   (Payments) borrowings under credit facility, net                                                 (3,298)            69,580
   Purchase of convertible notes                                                                   (44,219)           (59,832)
   Proceeds from sale of stock and treasury stock                                                      166                204
   Debt issuance costs                                                                                (145)            (1,177)
   (Payments) borrowings under capital lease obligations, net                                         (757)             1,290
                                                                                                  --------           --------

       Net cash (used for) provided by financing                                                   (48,253)            10,065
                                                                                                  --------           --------

Net decrease in cash and cash equivalents                                                           (1,201)            (3,902)
   Cash and cash equivalents at beginning of year                                                    7,535             11,814
                                                                                                  --------           --------

Cash and cash equivalents at end of period                                                        $  6,334           $  7,912
                                                                                                  ========           ========
</TABLE>

          See accompanying Notes to Consolidated Financial Statements

                                       5
<PAGE>

                          THE SPORTS AUTHORITY, INC.

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



Note 1:  Basis of Presentation

     The unaudited interim financial statements have been prepared in accordance
with generally accepted accounting principles for interim financial statements
and should be read in conjunction with the Company's Annual Report on Form 10-K
for the fiscal year ended February 3, 2001.  The unaudited financial statements
include all adjustments (consisting of normal recurring accruals) which are, in
the opinion of management, necessary for a fair presentation.  Results of
operations for the period are not necessarily indicative of the results to be
expected for the full year.

     Certain amounts in the prior year's financial statements have been
reclassified to conform to the current year's presentation.

NOTE 2:  Change in Accounting Method

     In the first quarter of 2001, the Company changed its method of accounting
for inventories from the retail inventory method to the lower of weighted
average cost or market method. The Company believes the weighted average cost
method is preferable because it results in greater precision in the costing of
sales and inventories and a better matching of revenues and cost of goods sold.
The effect of the change as of the beginning of the year was presented as a
cumulative effect of a change in accounting principle of $0.5 million, or $0.02
per share, in the first quarter of 2001. The effect of the change on loss before
extraordinary gain for the quarter and nine months ended November 3, 2001, and
the pro-forma effect on the comparable periods of the prior year, is not
determinable.

Note 3:  E-commerce Agreement

     Prior to July 2001, the Company was a 19.9% owner of
TheSportsAuthority.com, Inc., a joint venture with Global Sports Interactive,
Inc. ("Global Sports"), a wholly-owned subsidiary of Global Sports, Inc., which
operated the Company's e-commerce business. In July 2001, the joint venture was
dissolved and the Company entered into a License and E-Commerce Agreement (the
"Agreement") with Global Sports. Under the Agreement, Global Sports owns and
operates TheSportsAuthority.com website, and pays a license fee to the Company
for use of certain trademarks, service marks and domain names owned by the
Company.

     In October 2001, the Company exercised a warrant to purchase common stock
of Global Sports, Inc. on a net settlement basis. The Company has classified the
shares as available-for-sale securities as of the balance sheet date, and will
report unrealized gains and losses on the securities as a separate component of
shareholders' equity.

Note 4:  Restructuring Reserves

Store Exit Costs:

     In the third quarter of 2001, the Company entered into an agreement to
terminate its remaining lease obligation for a previously closed store site.
The Company recorded store exit charges of $0.3 million due primarily to the
excess of the lease termination fee over the recorded obligation for this store.

     The Company recorded store exit costs of $2.8 million, $8.9 million and
$39.4 million in 2000, 1999 and 1998, respectively. The 2000 charge related
primarily to a $4.0 million increase in reserves established under prior store
exit plans based on changes in the estimated time and rate to sublease or assign
certain locations.  The charge was partially offset by a net $1.2 million gain
on the lease termination of one store approved for closure in 2000 pursuant to a
favorable lease buy-out agreement.  This store closed in the fourth quarter of
2000.

                                       6
<PAGE>

                           THE SPORTS AUTHORITY, INC.

                    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


     The 1999 charge related primarily to closure of five Canadian and two U.S.
stores.  The Canadian stores were closed in the first quarter of 2000, and the
two U.S. stores by the end of the third quarter of 2000.  The 1998 charge
related to the announced closure of 18 underperforming stores, including two in
Canada.  As a result of favorable market and lease factors, the Company decided
not to close three stores and reversed its exit reserves for these stores in
1999.  The remaining 15 stores were closed in the first quarter of 1999.  As a
result of its store closures, the Company ceased its Canadian operations in
2000.  The Company's results of operations for the 39 weeks ended October 28,
2000 include sales of $3.4 million and operating income of $0.6 million from the
Canadian stores.

     With the most recent lease termination agreement, the Company has
cumulatively assigned or terminated its lease obligations at eleven stores, and
entered into long-term subleases at three others. The Company is actively
marketing the remaining closed store sites, which include five leased and two
owned locations. Following is a summary of activity in the store exit reserves
for the 39 weeks ended November 3, 2001.

<TABLE>
<CAPTION>
                                                     Lease and
                                                      Related        Fixed      Employee
(in thousands)                                      Obligations     Assets      Severance     Other     Total
                                                --------------------------------------------------------------
<S>                                               <C>               <C>         <C>          <C>     <C>
Balance at February 3, 2001                         $ 21,634        $   82      $     3      $ 667   $ 22,386
Payments                                             (10,960)          (82)           -       (574)   (11,616)
Adjustment of previously established reserves          1,893             -            -        (38)     1,855
Sublease income                                        1,534             -            -         86      1,620
                                                    --------        ------      -------      -----   --------
Balance at November 3, 2001                         $ 14,101        $    -      $     3      $ 141   $ 14,245
                                                    ========        ======      =======      =====   ========
</TABLE>

Corporate Restructuring:

     During the first quarter of 2001, the Company approved a corporate
restructuring plan to consolidate certain departmental functions. In conjunction
with this plan, the Company eliminated 44 positions and recorded a charge of
$0.8 million for employment termination benefits. The Company paid $0.2 million
in severance payments under this plan during the third quarter of 2001, and has
a remaining reserve of $0.2 million.

Note 5:  Income Taxes

     No tax provision was recorded in the third quarter of 2001 since the
Company expects that it will have a nominal effective tax rate in fiscal 2001
due to the availability of federal and state net operating loss carryforwards,
as well as the reversal of other tax deductible timing differences.

Note 6:  Earnings Per Share

     The Company calculates earnings per share ("EPS") in accordance with
Statement of Financial Accounting Standards No. 128 ("SFAS 128"), "Earnings Per
Share", which requires a dual presentation of basic and diluted EPS. Due to
losses before extraordinary gains for all periods presented, the calculation of
diluted EPS excludes shares issuable under the Company's 5.25% Convertible
Subordinated Notes (the "Notes") prior to the September 17, 2001 maturity date,
and the effect of stock options.

                                       7
<PAGE>

                           THE SPORTS AUTHORITY, INC.

                    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Note 7:  Comprehensive Income

     Comprehensive income represents the change in equity arising from non-owner
sources, including net income and other comprehensive income items such as
foreign currency translation adjustments and unrealized gains and losses on
available-for- sale-securities. The Company's comprehensive loss was $4.1
million and $2.9 million for the 13 and 39 weeks ended November 3, 2001,
respectively, compared to comprehensive loss of $4.6 million, and comprehensive
income of $12.8 million, for the same periods of the prior year.

Note 8:  Sale-Leaseback Transaction

     In October 2001, the Company completed the sale of ten store locations
pursuant to a sale-leaseback agreement with Realty Income Corporation ("RIC").
The Company will continue to operate the stores under 20-year leases with RIC.
The Company received net cash proceeds on the transaction of $43.9 million and
recorded a deferred gain of $0.8 million.  The gain will be amortized over the
lease term.  The Company used the proceeds to reduce borrowings under its
committed revolving credit facility ("Credit Facility").

Note 9:  Extraordinary Gain

     During the nine months ended November 3, 2001, the Company recorded an
extraordinary gain of $0.5 million related to the purchase of approximately
$31.9 million principal amount of the Notes for $31.4 million.  The remaining
Notes obligation was repaid in full on the September 17, 2001 maturity date.

Note 10:  Impact of Adoption of New Accounting Pronouncement

     In October 2001, the FASB issued Statement No. 144 ("SFAS 144"),
"Accounting for the Impairment or Disposal of Long-Lived Assets, " which
supercedes SFAS 121. SFAS 144 retains many of the provisions of SFAS 121 with
respect to assets held for use, but significantly changes the criteria for
classifying assets as held for sale. SFAS 144 is effective for fiscal years
beginning after December 15, 2001. Management does not believe that the adoption
of the statement will have a material effect on the Company's financial position
or results of operations.

     In May 2000, the Emerging Issues Task Force ("EITF") reached a consensus in
EITF Issue No. 00-14, Accounting for Certain Sales Incentives, which is
effective for quarters beginning after March 15, 2001.  Under this
pronouncement, the estimated cost of sales incentives such as coupons and
rebates must be treated as a reduction of revenue in the period in which the
related sale is recognized.  The Company has historically classified the cost of
such incentives as a component of merchandise costs or as selling, general and
administrative ("SG&A") expense.  The Company early adopted Issue No. 00-14 in
the first quarter of 2001. This adoption had no impact on the Company's results
of operations, other than the reclassification of such costs in the statement of
operations for the periods presented.  For the 13 weeks ended October 28, 2000,
this reclassification resulted in a reduction of sales of $2.9 million, with a
corresponding reduction in merchandise costs and SG&A expense of $2.0 million
and $0.9 million, respectively.  For the 39 weeks ended October 28, 2000, the
reclassification resulted in reductions of sales, merchandise costs and SG&A
expense of $7.7 million, $4.8 million, and $2.9 million, respectively.

                                       8
<PAGE>

Item 2.

                          THE SPORTS AUTHORITY, INC.
        MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
                             RESULTS OF OPERATIONS


Results of Operations

The following table sets forth the Company's statement of operations data as a
percent of sales for the periods indicated.

<TABLE>
<CAPTION>
                                                             13 Weeks Ended               39 Weeks Ended
                                                        -------------------------   --------------------------
                                                        November 3,   October 28,   November 3,    October 28,
                                                            2001          2000         2001            2000
                                                        -----------   -----------   -----------    ----------
<S>                                                     <C>           <C>           <C>            <C>
Sales                                                         100.0%        100.0%        100.0%        100.0%
Cost of merchandise sold, including
   buying and occupancy costs                                  72.7          73.0          72.8          73.7
                                                        -----------   -----------   -----------    ----------
Gross margin                                                   27.3          27.0          27.2          26.3
License fees and rental income                                 (0.3)         (0.2)         (0.2)         (0.2)
Selling, general and administrative expenses                   28.1          27.0          26.3          25.5
Pre-opening expense                                             0.0           0.1             -           0.2
Store exit costs                                                0.1             -           0.2             -
Corporate restructuring                                           -             -           0.1             -
                                                        -----------   -----------   -----------    ----------
   Operating income (loss)                                     (0.6)          0.1           0.8           0.8
Interest, net                                                   0.9           1.5           1.1           1.4
                                                        -----------   -----------   -----------    ----------
Loss before extraordinary gain and cumulative
   effect of change in accounting principle                    (1.5)         (1.4)         (0.3)         (0.6)
Extraordinary gain, net of tax                                    -             -          (0.1)          1.7
Cumulative effect of change in accounting principle               -             -           0.1             -
                                                        -----------   -----------   -----------    ----------
   Net income (loss)                                           (1.5)%        (1.4)%        (0.3)%         1.1%
                                                        ===========   ===========   ===========    ==========
</TABLE>


The following table sets forth the Company's store openings and closings for the
periods indicated.

<TABLE>
<CAPTION>

                                       13 Weeks Ended             39 Weeks Ended
                                  -----------------------    ------------------------
                                  November 3,  October 28,   November 3,  October 28,
                                     2001         2000          2001        2000
                                  ----------   ----------    ----------   -----------
<S>                               <C>          <C>           <C>          <C>
Beginning number of stores (a)           198          199           198         201
Openings                                   -            1             -           5
Closings (a)                               -           (1)            -          (7)
                                  ----------   ----------    ----------   ---------
Ending number of stores                  198          199           198         199
                                  ==========   ==========    ==========   =========
</TABLE>

(a) The beginning number of stores and closed stores for the 39 weeks ended
    October 28, 2000 exclude two clearance stores opened on a test basis in
    previously closed store sites. The clearance stores were closed in the
    second quarter of 2000.

                                       9
<PAGE>

                          THE SPORTS AUTHORITY,  INC.
        MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
                       RESULTS OF OPERATIONS - continued


13 Weeks Ended November 3, 2001 and October 28, 2000

     Sales for the 13 weeks ended November 3, 2001 were $304.8 million, a $27.1
million, or 8.2%, decrease from sales of $331.9 million for the same period in
the prior year.  During 2000, the Company closed ten stores pursuant to its
store closing plans, including five in Canada in the first quarter of 2000.
Results for the 13 weeks ended October 28, 2000 include sales from closed stores
of $4.1 million.

     Excluding the impact of store closings, sales decreased $23.0 million, or
7.0%.  The decrease was due primarily to a decrease in comparable store sales of
$14.4 million, or 4.5%. In deriving comparable store sales, the 2000 period
sales were adjusted for the difference in the fiscal 2000 versus fiscal 2001
calendar, such that comparable days are included in the measurement.   The
effect of this adjustment accounted for the remaining change in sales of $8.6
million.

     Sales during the third quarter of 2001 reflected the continued effects of
the soft economic environment, compounded by the terrorist attack on September
11, 2001. Comparable store sales were also pressured by a comparison to last
year's scooter phenomenon and Major League Baseball's "Subway Series." Excluding
sales of scooters and Subway Series merchandise, comparable store sales declined
by less than 1.0%, with key categories such as ladies activewear and fitness
continuing to perform well. In the fourth quarter, the Company will continue to
focus on stimulating sales through value-oriented pricing and advertising
programs.

     License fees and rental income were $0.8 million, or 0.3% of sales, for the
13 weeks ended November 3, 2001, compared to $0.6 million, or 0.2% of sales, for
the same period in the prior year. License fees consist principally of license
fee income under a license agreement between the Company and Mega Sports Co.,
Ltd. ("Mega Sports"), the Company's Japanese joint venture. License fees under
this agreement totaled $0.7 million and $0.5 million for the 13 weeks ended
November 3, 2001 and October 28, 2000, respectively. License fees under the
License and E-commerce Agreement with Global Sports were nominal in both
periods.

     Cost of merchandise sold, which includes certain buying and occupancy
costs, was $221.5 million, or 72.7% of sales, for the 13 weeks ended November 3,
2001 as compared to $242.1 million, or 73.0% of sales, for the same period in
the prior year. Merchandise costs as a percent of sales were 120 basis points
lower than the prior year due to controlled markdowns and promotional activity,
increased margin contribution from the Company's private label and import
business, and improved vendor pricing as a result of vendor bidding programs.
Reductions in merchandise costs were offset, however, by a 0.9% of sales
increase in occupancy costs due to negative leveraging created by the sales
shortfall. In the first quarter of 2001, the Company changed its method of
accounting for inventories from the retail inventory method to the lower of
weighted average cost or market method. The effect of the accounting change on
the Company's gross margin for the quarter ended November 3, 2001, and the pro-
forma effect for the same period of the prior year, was not determinable.

     Selling, general and administrative ("SG&A") expenses for the 13 weeks
ended November 3, 2001 were $85.6 million, or 28.1% of sales, as compared to
$89.6 million, or 27.0% of sales, for the same period in the prior year. The
$4.0 million decline in expense reflected controlled spending and payroll
management in response to the sales shortfall, although negative leveraging
produced a 1.0% increase as a percent of sales.

     The Company opened no new stores during the 13 weeks ended November 3,
2001. Pre-opening expense for the 13 weeks ended October 28, 2000 was $0.3
million and related primarily to one store opening. Pre-opening expense consists
principally of store payroll expense for associate training and store
preparation, occupancy costs and grand-opening advertising expenditures.

                                       10
<PAGE>

                          THE SPORTS AUTHORITY, INC.
        MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
                       RESULTS OF OPERATIONS - continued


     Store exit costs were $0.3 million, or 0.1% of sales, for the 13 weeks
ended November 3, 2001. In October 2001, the Company entered into a lease
termination agreement for a previously closed store site. The third quarter
charge related primarily to the excess of the lease termination fee over the
recorded obligation for this store.

     Interest, net for the 13 weeks ended November 3, 2001 was $2.7 million, or
0.9% of sales, compared to $5.0 million, or 1.5% of sales, for the same period
in the prior year. The decrease of $2.3 million was due primarily to interest
rate reductions on borrowings under the Company's committed revolving credit
facility (the "Credit Facility"), combined with a reduction in overall
borrowings under both the Credit Facility and the Notes. The Company retired its
remaining Notes obligation on the September 17, 2001 maturity date.

     No tax provision was recorded in the third quarter of 2001 since the
Company expects that it will have a nominal effective tax rate in fiscal 2001
due to the availability of federal and state net operating loss carryforwards,
as well as the reversal of other tax deductible timing differences.

     As a result of the foregoing factors, net loss for the 13 weeks ended
November 3, 2001 was $4.5 million, compared to $4.6 million for the same period
of the prior year.

39 Weeks Ended November 3, 2001 and October 28, 2000

     Sales for the 39 weeks ended November 3, 2001 were $1,015.0 million, a
$55.9 million, or 5.2%, decrease from sales of $1,070.9 million for the same
period in the prior year. Sales for the period ended October 28, 2000 include
sales from closed stores of $18.8 million.

     Excluding the impact of store closings, sales decreased $37.1 million, or
3.5%. The decrease resulted from a decline in comparable store sales of $47.4
million, or 4.5%, partially offset by an increase of $11.9 million, or 1.1%,
from non-comparable stores opened in fiscal 2000. In deriving comparable store
sales, sales in the 2000 period were adjusted for the difference in the fiscal
2000 versus fiscal 2001 calendar, such that comparable days are included in the
measurement. This adjustment accounted for the remaining change in sales of $1.6
million.

     The decline in comparable store sales resulted from a number of factors,
including: the sluggish economy and increased competition in general; a late
spring, combined with inventory imbalances in certain categories, which hampered
sales in the first quarter; and the September 11 terrorist attack, combined with
the comparison to last year's scooter sales and Subway Series, which pressured
results in the third quarter. Although the fitness and ladies activewear
categories continued strong trends started in 2000, these gains were more than
offset by decreases in underperforming categories such as hunting and fishing,
in-line skates, scooters, and licensed merchandise.

     License fees and rental income were $2.3 million, or 0.2% of sales, for the
39 weeks ended November 3, 2001, compared to $1.9 million, or 0.2% of sales, for
the same period in the prior year. License fees under the Mega Sports license
agreement were $2.1 million and $1.7 million for the 39 weeks ended November 3,
2001 and October 28, 2000, respectively. License fees under the e-commerce
agreement were approximately $0.1 million for both periods.

     Cost of merchandise sold, including certain buying and occupancy costs, was
$739.3 million, or 72.8% of sales, for the 39 weeks ended November 3, 2001,
compared to $789.7 million, or 73.7% of sales, for the same period in the prior
year. The decline in merchandise costs as a percent of sales reflected the
impact of buying and pricing strategies implemented during the last year.
Merchandise costs were determined under the lower of weighted average cost or
market method for the 39 weeks ended November 3, 2001, versus the retail
inventory method for the 39 weeks ended October 28, 2000. The effect of the
accounting change on merchandise costs for the 2001 period, and the pro-forma
impact of the change on the 2000 period, is not determinable.

                                       11
<PAGE>

                          THE SPORTS AUTHORITY,  INC.
        MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
                       RESULTS OF OPERATIONS - continued


     SG&A expenses for the 39 weeks ended November 3, 2001 were $267.4 million,
or 26.3% of sales, as compared to $272.6 million, or 25.5% of sales, for the
same period in the prior year. While total SG&A expenses declined year over
year, negative leverage due to the sales shortfall resulted in a 0.9% of sales
increase.

     Store exit costs were $1.9 million, or 0.2% of sales, for the 39 weeks
ended November 3, 2001, and related primarily to lease termination fees paid for
two previously closed store sites, which exceeded the recorded obligations for
these stores.

     Corporate restructuring was $0.8 million, or 0.1% of sales, for the 39
weeks ended November 3, 2001. During the first quarter of 2001, the Company
approved a corporate restructuring plan to consolidate certain departmental
functions, resulting in the elimination of 44 positions. The Company has paid
approximately $0.6 million in severance payments under the plan through November
3, 2001.

     Interest, net for the 39 weeks ended November 3, 2001 was $11.2 million, or
1.1% of sales, compared to $14.6 million, or 1.4% of sales, for the same period
in the prior year. The decrease in expense was due to a general decline in
interest rates as well as a reduction in the Company's overall debt.

     The Company recorded no tax provision for the 39 weeks ended November 3,
2001. The Company expects its effective tax rate in fiscal 2001 will be nominal
due to the availability of federal and state net operating loss carryforwards,
as well as the reversal of other tax deductible timing differences. In fiscal
2000, the Company recorded a $2.0 million tax provision for estimated
alternative minimum taxes related to the extraordinary gain on early
extinguishment of debt.

     During the 39 weeks ended November 3, 2001, the Company purchased $31.9
million principal amount of the Notes for $31.4 million, and recorded an
extraordinary gain of approximately $0.5 million. During the 39 weeks ended
October 28, 2000, the Company recorded an extraordinary gain of $18.6 million,
net of tax, related to the purchase of $81.1 million principal amount of the
Notes for $59.9 million. The Company repaid its remaining obligation under the
Notes on the September 17, 2001 maturity date.

     As a result of the foregoing factors, net loss for the 39 weeks ended
November 3, 2001 was $3.3 million, as compared to net income of $12.5 million
for the same period in the prior year. In the first quarter of 2000, the Company
closed its five remaining Canadian stores pursuant to its announced store exit
plan. The Company's results of operations for the 39 weeks ended October 28,
2000 include sales of $3.4 million and operating income of $0.6 million related
to the Canadian subsidiary.

Liquidity and Capital Resources

     The Company's principal capital requirements are to fund working capital
needs and capital expenditures. For the 39 weeks ended November 3, 2001, these
capital requirements were generally funded by operations and by borrowings
under the Company's Credit Facility, which fluctuate seasonally in amount. Cash
flows generated by (used for) operating, investing and financing activities for
the 39 weeks ended November 3, 2001 and October 28, 2000 are summarized below.

     Net cash provided by operations was $15.5 million for the 39 weeks ended
November 3, 2001, compared to $20.3 million for the same period in the prior
year. Income before extraordinary gains and depreciation and amortization was
$28.3 million in the 2001 period, an increase of $4.3 million from the same
period in the prior year. Additionally, inventory investment in the 2001 period
(offset by a related increase in accounts payable), produced a positive cash
flow of $13.4 million in the 2001 period, versus a use of cash of $7.9 million
in the 2000 period. These improvements were offset, however, by a $21.7 million
income tax refund included in the 2000 period.

                                       12
<PAGE>

                          THE SPORTS AUTHORITY,  INC.
        MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
                       RESULTS OF OPERATIONS - continued


     Net cash provided by investing activities was $31.6 million for the 39
weeks ended November 3, 2001, compared to net cash used for investing activities
of $34.3 million for the same period in the prior year. The 2001 period includes
proceeds of $43.9 million on the sale-leaseback of ten store locations,
partially offset by capital expenditures of $12.4 million. Capital expenditures
in 2001 included: $8.3 million for refurbishment of existing stores, $3.6
million for hardware and software upgrades, and $0.5 million for leasehold
improvements at the regional distribution centers and corporate office.

     Net cash used for financing activities was $48.3 million for the 39 weeks
ended November 3, 2001, compared to net cash provided by financing activities of
$10.1 million for the same period of the prior year. Cash used in the 2001
period was primarily for Notes purchases and payment of the remaining obligation
at maturity. The Company essentially replaced this financing by monetizing
certain of its real property through the sale-leaseback of ten stores.
Conversely, during the 2000 period the Company relied principally on borrowings
under the Credit Facility to finance Notes purchases and a portion of its
capital expenditures.

     The Company's working capital at November 3, 2001 was $209.0 million,
compared to $140.4 million at October 28, 2000, an increase of $68.6 million.
The increase reflects the $44.6 million reduction in current debt year over year
as a result of the Notes purchases and retirement at maturity.

     The Company substantially curtailed its expansion strategy in the past two
years and will open no new stores in fiscal 2001. The Company estimates its
capital expenditures in 2001 will approximate $15 to $18 million and will
consist of store refurbishment, facility maintenance, and information system
upgrades. Investment in the new catalog and team sales distribution channels has
been nominal to date and is expected to remain so through the balance of 2001.

     The Company believes that anticipated cash flows from operations, combined
with borrowings under the Credit Facility, will be sufficient to fund working
capital and finance capital expenditures during the next 12 months.

Seasonality and Inflation

     The Company's annual business is seasonal, with higher sales and correlated
profits occurring in the second and fourth quarters. In fiscal 2000, the
Company's sales trended as follows: 23.6% in the first quarter, 26.0% in the
second quarter, 22.4% in the third quarter and 28.0% in the fourth quarter.

     Management does not believe inflation had a material effect on the
financial statements for the periods presented.

Forward Looking Statements

     Certain statements under the heading "Management's Discussion and Analysis"
and elsewhere in this Form 10-Q constitute "forward looking statements" made in
reliance on the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. As such, they involve risks and uncertainties that could
cause actual results to differ materially from those set forth in such forward
looking statements. The Company's forward looking statements are based on
assumptions about, or include statements concerning, many important factors,
including without limitation changes in discretionary consumer spending and
consumer preferences, particularly as they relate to athletic footwear, apparel
and sporting equipment and the Company's particular merchandise mix and retail
locations; the Company's ability to effectively implement its merchandising,
marketing, store expansion and refurbishment, electronic commerce and other
strategies; increasing competition from other retailers; unseasonable weather;
fluctuating sales margins; product availability; capital spending levels; and
the impact of external factors such as the recent terrorist attacks against the
United States. The Company undertakes no obligation to release publicly the
results of any revisions to these forward looking statements to reflect events
or circumstances after the date such statements were made.

                                       13
<PAGE>

Part II.  OTHER INFORMATION

               Item 6.  Exhibits and Reports on Form 8-K

                        (a)  Exhibits:

                             See Index to Exhibits on Page 16

                        (b)  Reports on Form 8-K:

                              None

                                       14
<PAGE>

                          THE SPORTS AUTHORITY, INC.

                                  SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                    THE SPORTS AUTHORITY, INC.



Date:  December 18, 2001               By: /s/  GEORGE R. MIHALKO
                                                -----------------
                                            George R. Mihalko
                                            Executive Vice President and
                                            Chief Financial Officer
                                            (Principal Financial Officer)



Date:  December 18, 2001               By: /s/  TODD WEYHRICH
                                                -------------
                                            Todd Weyhrich
                                            Senior Vice President and
                                            Controller (Principal
                                            Accounting Officer)

                                       15
<PAGE>

                               INDEX TO EXHIBITS

Exhibits
--------

10.1         Purchase Agreement dated as of October 15, 2001 between the Company
             and Realty Income Corporation.
10.2         Form of Severance Agreement dated as of September 18, 2001 between
             the Company and George R. Mihalko, incorporated by reference to
             Exhibit 10.2 to the Company's Form 10-Q for the period ended August
             4, 2001.