☑ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 84-3755666 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
Two Penn Plaza, | New York, | NY | 10121 | |||||||||||||||||
(Address of principal executive offices) |
Title of each class | Trading Symbol(s) | Symbol(s) | Name of each exchange | |||||||
Class A Common Stock | MSGE | New York Stock Exchange |
Large accelerated filer | ☑ | Accelerated filer | ☐ | |||||||||||||
Non-accelerated filer | ☐ | |||||||||||||||
Smaller reporting company | ☐ | |||||||||||||||
Emerging growth company | ☐ |
Class A Common Stock par value $0.01 per share | — | 27,381,806 | |||||||||||
Class B Common Stock par value $0.01 per share | — | 6,866,754 |
Page | ||||||||
Base Period 4/20/20 | 6/30/20 | 6/30/21 | 6/30/22 | |||||||||||||||||||||||||||||||||||
Madison Square Garden Entertainment Corp. | $ | 100.00 | $ | 114.80 | $ | 128.53 | $ | 80.54 | ||||||||||||||||||||||||||||||
Russell 3000 Index | 100.00 | 111.76 | 161.11 | 138.77 | ||||||||||||||||||||||||||||||||||
Bloomberg Americas Entertainment Index | 100.00 | 123.07 | 283.23 | 149.70 |
Years Ended June 30, | Change | |||||||||||||||
2021 | 2020 | Amount | Percentage | |||||||||||||
Revenues | $ | 647,510 | $ | 685,797 | $ | (38,287 | ) | (6 | )% | |||||||
Direct operating expenses | 262,859 | 282,837 | (19,978 | ) | (7 | )% | ||||||||||
Selling, general and administrative expenses | 115,339 | 100,829 | 14,510 | 14 | % | |||||||||||
Depreciation and amortization | 7,335 | 7,163 | 172 | 2 | % | |||||||||||
Operating income (loss) | $ | 261,977 | $ | 294,968 | $ | (32,991 | ) | (11 | )% |
Years Ended June 30, | Change | |||||||||||||||
2021 | 2020 | Amount | Percentage | |||||||||||||
Operating income | $ | 261,977 | $ | 294,968 | $ | (32,991 | ) | (11 | )% | |||||||
Share-based compensation | 17,667 | 19,235 | ||||||||||||||
Depreciation and amortization | 7,335 | 7,163 | ||||||||||||||
Adjusted operating income | $ | 286,979 | $ | 321,366 | $ | (34,387 | ) | (11 | )% |
Years Ended June 30, | Change | |||||||||||||||||||||||||
2022 | 2021 | Amount | Percentage | |||||||||||||||||||||||
Revenues | $ | 1,724,618 | $ | 814,213 | $ | 910,405 | 112 | % | ||||||||||||||||||
Direct operating expenses | 1,009,245 | 434,783 | 574,462 | 132 | % | |||||||||||||||||||||
Selling, general and administrative expenses | 681,796 | 424,355 | 257,441 | 61 | % | |||||||||||||||||||||
Depreciation and amortization | 124,629 | 121,999 | 2,630 | 2 | % | |||||||||||||||||||||
Impairment and other gains, net | (3,045) | — | (3,045) | NM | ||||||||||||||||||||||
Restructuring charges | 14,690 | 21,299 | (6,609) | (31) | % | |||||||||||||||||||||
Operating loss | (102,697) | (188,223) | 85,526 | 45 | % | |||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||
Loss in equity method investments | (5,027) | (6,858) | 1,831 | 27 | % | |||||||||||||||||||||
Interest expense, net | (22,945) | (17,201) | (5,744) | (33) | % | |||||||||||||||||||||
Loss on extinguishment of debt | (35,815) | — | (35,815) | NM | ||||||||||||||||||||||
Other income (expense), net | (49,448) | 51,488 | (100,936) | (196) | % | |||||||||||||||||||||
Loss from operations before income taxes | (215,932) | (160,794) | (55,138) | (34) | % | |||||||||||||||||||||
Income tax benefit (expense) | 25,785 | (5,725) | 31,510 | NM | ||||||||||||||||||||||
Net loss | (190,147) | (166,519) | (23,628) | (14) | % | |||||||||||||||||||||
Less: Net income (loss) attributable to redeemable noncontrolling interests | 7,739 | (16,269) | 24,008 | 148 | % | |||||||||||||||||||||
Less: Net loss attributable to nonredeemable noncontrolling interests | (3,491) | (2,099) | (1,392) | (66) | % | |||||||||||||||||||||
Net loss attributable to Madison Square Garden Entertainment Corp.’s stockholders | $ | (194,395) | $ | (148,151) | $ | (46,244) | (31) | % |
Years Ended June 30, | Change (a) | |||||||||||||||
2021 | 2020 | Amount | Percentage | |||||||||||||
Revenues | $ | 180,401 | $ | 762,936 | $ | (582,535 | ) | (76 | )% | |||||||
Direct operating expenses | 171,924 | 508,122 | (336,198 | ) | (66 | )% | ||||||||||
Selling, general and administrative expenses (“SG&A”) | 322,714 | 344,637 | (21,923 | ) | (6 | )% | ||||||||||
Depreciation and amortization | 114,664 | 104,899 | 9,765 | 9 | % | |||||||||||
Impairment for intangibles, long-lived assets, and goodwill | — | 105,817 | (105,817 | ) | (100 | )% | ||||||||||
Gain on disposal of assets held for sale and associated settlements (b) | — | (240,783 | ) | 240,783 | 100 | % | ||||||||||
Restructuring charges (b) | 21,299 | — | 21,299 | NM | ||||||||||||
Operating loss | (450,200 | ) | (59,756 | ) | (390,444 | ) | NM | |||||||||
Other income (expense): | ||||||||||||||||
Loss in equity method investments | (6,858 | ) | (4,433 | ) | (2,425 | ) | (55 | )% | ||||||||
Interest income (expense), net | 1,065 | 17,753 | (16,688 | ) | NM | |||||||||||
Miscellaneous income, net | 51,062 | 38,855 | 12,207 | 31 | % | |||||||||||
Loss from operations before income taxes | (404,931 | ) | (7,581 | ) | (397,350 | ) | NM | |||||||||
Income tax benefit (expense) | 9,371 | (5,046 | ) | 14,417 | NM | |||||||||||
Net loss | (395,560 | ) | (12,627 | ) | (382,933 | ) | NM | |||||||||
Less: Net loss attributable to redeemable noncontrolling interests | (16,269 | ) | (30,387 | ) | 14,118 | 46 | % | |||||||||
Less: Net loss attributable to nonredeemable noncontrolling interests | (2,099 | ) | (1,534 | ) | (565 | ) | (37 | )% | ||||||||
Net income (loss) attributable to Madison Square Garden Entertainment Corp.’s stockholders | $ | (377,192 | ) | $ | 19,294 | $ | (396,486 | ) | NM | |||||||
Changes attributable to | Revenues | Direct operating expenses (b) | SG&A (c) | Depreciation and amortization | Impairment for intangibles, long-lived assets, and goodwill | Gain on disposal of assets held for sale and associated settlements | Restructuring charges | Operating loss | Changes attributable to | Revenues | Direct operating expenses | SG&A | Depreciation and amortization | Impairment and other (gains) losses, net | Restructuring charges | Operating loss | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Entertainment segment | $ | (502,927 | ) | $ | (285,554 | ) | $ | (13,338 | ) | $ | (4,147 | ) | $ | — | $ | 240,783 | $ | 21,299 | $ | (461,970 | ) | $ | 573,111 | $ | 317,216 | $ | 125,846 | $ | (2,965) | $ | (245) | $ | (7,061) | $ | 140,320 | |||||||||||||||||||||||||||||||||||||||||||||||
Tao Group Hospitality segment (a) | (80,035 | ) | (50,047 | ) | (9,015 | ) | 799 | (94,946 | ) | — | — | 73,174 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MSG Networks segment | MSG Networks segment | (39,355) | 57,419 | 31,668 | 2,059 | — | 452 | (130,953) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tao Group Hospitality segment | Tao Group Hospitality segment | 384,781 | 198,050 | 106,957 | 17,066 | (3,969) | — | 66,677 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase accounting adjustments | — | (1,027 | ) | (6 | ) | 13,113 | (10,871 | ) | — | — | (1,209 | ) | Purchase accounting adjustments | — | 2,765 | — | (13,530) | 1,169 | — | 9,596 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inter-segment eliminations | 427 | 430 | 436 | — | — | — | — | (439 | ) | Inter-segment eliminations | (8,132) | (988) | (7,030) | — | — | — | (114) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 910,405 | $ | 574,462 | $ | 257,441 | $ | 2,630 | $ | (3,045) | $ | (6,609) | $ | 85,526 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | (582,535 | ) | $ | (336,198 | ) | $ | (21,923 | ) | $ | 9,765 | $ | (105,817 | ) | $ | 240,783 | $ | 21,299 | $ | (390,444 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tao Group Hospitality Segment | Purchase accounting adjustments | Total | ||||||||||
Intangibles | $ | — | $ | 3,541 | $ | 3,541 | ||||||
Long-lived assets | 6,363 | 7,330 | 13,693 | |||||||||
Goodwill | 88,583 | — | 88,583 | |||||||||
$ | 94,946 | $ | 10,871 | $ | 105,817 | |||||||
Years Ended June 30, | Change | |||||||||||||||
2021 | 2020 | Amount | Percentage | |||||||||||||
Operating loss | $ | (450,200 | ) | $ | (59,756 | ) | $ | (390,444 | ) | NM | ||||||
Non-cash portion of arena license fees from MSG Sports | (13,026 | ) | — | |||||||||||||
Share-based compensation | 52,917 | 42,190 | ||||||||||||||
Depreciation and amortization (a) | 114,664 | 104,899 | ||||||||||||||
Restructuring charges | 21,299 | — | ||||||||||||||
Impairment of intangibles, long-lived assets and goodwill | — | 105,817 | ||||||||||||||
Gain on disposal of assets held for sale and associated settlements | — | (240,783 | ) | |||||||||||||
Other purchase accounting adjustments | 3,334 | 4,367 | ||||||||||||||
Adjusted operating loss | $ | (271,012 | ) | $ | (43,266 | ) | $ | (227,746 | ) | NM | ||||||
Years Ended June 30, | Change | |||||||||||||||||||||||||
2022 | 2021 | Amount | Percentage | |||||||||||||||||||||||
Operating loss | $ | (102,697) | $ | (188,223) | $ | 85,526 | 45 | % | ||||||||||||||||||
Non-cash portion of arena license fees from MSG Sports | (27,754) | (13,026) | ||||||||||||||||||||||||
Share-based compensation expense | 72,552 | 70,584 | ||||||||||||||||||||||||
Depreciation and amortization (a) | 124,629 | 121,999 | ||||||||||||||||||||||||
Restructuring charges | 14,690 | 21,299 | ||||||||||||||||||||||||
Impairment and other gains, net | (3,045) | — | ||||||||||||||||||||||||
Merger and acquisition related costs, including litigation | 48,764 | 24,220 | ||||||||||||||||||||||||
Amortization for capitalized cloud computing costs | 271 | — | ||||||||||||||||||||||||
Other purchase accounting adjustments | 6,099 | 3,334 | ||||||||||||||||||||||||
Remeasurement of deferred compensation plan liabilities | 46 | — | ||||||||||||||||||||||||
Adjusted operating income | $ | 133,555 | $ | 40,187 | $ | 93,368 | NM |
Decrease in adjusted operating loss of the Entertainment segment | $ | 120,396 | ||||||
Increase in adjusted operating income of the Tao Group Hospitality segment | 78,746 | |||||||
Decrease in adjusted operating income of the MSG Networks segment | (105,660) | |||||||
Inter-segment eliminations | (114) | |||||||
$ | 93,368 |
Increase in adjusted operating loss of the Entertainment segment | $ | 210,655 | ||
Increase in adjusted operating loss of the Tao Group Hospitality segment | 16,652 | |||
Inter-segment eliminations | 439 | |||
$ | 227,746 | |||
Years Ended June 30, | Change | |||||||||||||||||||||||||
2022 | 2021 | Amount | Percentage | |||||||||||||||||||||||
Revenues | $ | 655,392 | $ | 82,281 | $ | 573,111 | NM | |||||||||||||||||||
Direct operating expenses | 420,305 | 103,089 | 317,216 | NM | ||||||||||||||||||||||
Selling, general and administrative expenses | 394,551 | 268,705 | 125,846 | 47 | % | |||||||||||||||||||||
Depreciation and amortization | 77,177 | 80,142 | (2,965) | (4) | % | |||||||||||||||||||||
Restructuring charges | 14,238 | 21,299 | (7,061) | (33) | % | |||||||||||||||||||||
Impairment and other (gains) losses, net | (245) | — | (245) | NM | ||||||||||||||||||||||
Operating loss | $ | (250,634) | $ | (390,954) | $ | 140,320 | 36 | % | ||||||||||||||||||
Reconciliation to adjusted operating loss: | ||||||||||||||||||||||||||
Non-cash portion of arena license fees from MSG Sports | (27,754) | (13,026) | ||||||||||||||||||||||||
Share-based compensation | 47,813 | 47,633 | ||||||||||||||||||||||||
Depreciation and amortization | 77,177 | 80,142 | ||||||||||||||||||||||||
Restructuring charges | 14,238 | 21,299 | ||||||||||||||||||||||||
Impairment and other (gains) losses, net | (245) | — | ||||||||||||||||||||||||
Merger and acquisition related costs | 20,834 | 16,080 | ||||||||||||||||||||||||
Amortization for capitalized cloud computing costs | 95 | — | ||||||||||||||||||||||||
Remeasurement of deferred compensation plan liabilities | 46 | — | ||||||||||||||||||||||||
Adjusted operating loss | $ | (118,430) | $ | (238,826) | $ | 120,396 | 50 | % |
Increase in event-related revenues, as discussed below | $ | 239,574 | |||
Increase in revenues from signage, suite licenses, and sales of food, beverage and merchandise subject to revenue or profit sharing with MSG Sports pursuant to the Arena License Agreements | 130,238 | ||||
Increase in revenues from theshortened Christmas Spectacular 2021 holiday season run as compared to the cancellation of the 2020 production in the prior year as a result of the COVID-19 pandemic | 55,454 | ||||
Increase in arena license fees from MSG Sports pursuant to the Arena License Agreements, as discussed below | 46,727 | ||||
Increase in suite license fee revenues, due to the return of live events at the Company’s venues during the current year as compared to limited live events held in the prior year due to the COVID-19 pandemic | 34,904 | ||||
Increase in venue-related signage and sponsorship revenues primarily due to the return of live events at the Company’s venues during the current year as compared to limited live events held in the prior year due to the COVID-19 pandemic | 29,940 | ||||
Increase in revenues from the Boston Calling Music Festival as compared to the cancellation of the festival in Fiscal Year 2021 as a result of the COVID-19 pandemic | 18,313 | ||||
Increase in inter-segment revenues on advertising sales commission from MSG Networks, which are eliminated in consolidation | 7,177 | ||||
Increase in revenues from Sponsorship Sales and Service Representation Agreements with MSG Sports | 3,987 | ||||
Other net increases | 6,797 | ||||
$ | 573,111 |
Increase in event-related direct operating expenses, as discussed below | $ | 125,931 | |||
Increase in direct operating expenses associated with revenue or profit sharing expense from signage, suites licenses and sales of food, beverage and merchandise with MSG Sports pursuant to the Arena License Agreements | 94,226 | ||||
Increase in direct operating expenses from the shortened Christmas Spectacular 2021 holiday season run as compared to the cancellation of the 2020 production in the prior year as a result of the COVID-19 pandemic | 39,029 | ||||
Increase in direct operating expenses associated with the Boston Calling Music Festival as compared to the cancellation of the festival in Fiscal Year 2021 as a result of the COVID-19 pandemic | 19,003 | ||||
Increase in direct operating expenses associated with the Arena License Agreements | 17,645 | ||||
Increase in direct operating expenses associated with venue operating costs | 15,445 | ||||
Other net increases | 5,937 | ||||
$ | 317,216 |
Years Ended June 30, | Change | |||||||||||||||||||||||||
2022 | 2021 | Amount | Percentage | |||||||||||||||||||||||
Revenues | $ | 608,155 | $ | 647,510 | $ | (39,355) | (6) | % | ||||||||||||||||||
Direct operating expenses | 320,278 | 262,859 | 57,419 | 22 | % | |||||||||||||||||||||
Selling, general and administrative expenses | 147,007 | 115,339 | 31,668 | 27 | % | |||||||||||||||||||||
Depreciation and amortization | 9,394 | 7,335 | 2,059 | 28 | % | |||||||||||||||||||||
Restructuring charges | 452 | — | 452 | NM | ||||||||||||||||||||||
Operating income | $ | 131,024 | $ | 261,977 | $ | (130,953) | (50) | % | ||||||||||||||||||
Reconciliation to adjusted operating income: | ||||||||||||||||||||||||||
Share-based compensation | 17,092 | 17,667 | ||||||||||||||||||||||||
Depreciation and amortization | 9,394 | 7,335 | ||||||||||||||||||||||||
Restructuring charges | 452 | — | ||||||||||||||||||||||||
Merger and acquisition related costs | 27,683 | 4,502 | ||||||||||||||||||||||||
Amortization for capitalized cloud computing arrangement costs | 176 | — | ||||||||||||||||||||||||
Adjusted operating income | $ | 185,821 | $ | 291,481 | $ | (105,660) | (36) | % |
Year Ended June 30, 2022 | ||||||||||||||
Decrease in affiliation fee revenue | $ | (67,286) | ||||||||||||
Increase in advertising revenue | 26,310 | |||||||||||||
Other net increases | 1,621 | |||||||||||||
$ | (39,355) |
Years Ended June 30, | Change | Years Ended June 30, | Change | |||||||||||||||||||||||||||||||||||||||
2021 | 2020 | Amount | Percentage | 2022 | 2021 | Amount | Percentage | |||||||||||||||||||||||||||||||||||
Revenues | $ | 82,281 | $ | 585,208 | $ | (502,927 | ) | (86 | )% | Revenues | $ | 484,947 | $ | 100,166 | $ | 384,781 | NM | |||||||||||||||||||||||||
Direct operating expenses | 103,089 | 388,643 | (285,554 | ) | (73 | )% | Direct operating expenses | 264,641 | 66,591 | 198,050 | NM | |||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 268,705 | 282,043 | (13,338 | ) | (5 | )% | Selling, general and administrative expenses | 160,991 | 54,034 | 106,957 | 198 | % | ||||||||||||||||||||||||||||||
Depreciation and amortization | 80,142 | 84,289 | (4,147 | ) | (5 | )% | Depreciation and amortization | 26,021 | 8,955 | 17,066 | 191 | % | ||||||||||||||||||||||||||||||
Restructuring charges | 21,299 | — | 21,299 | NM | ||||||||||||||||||||||||||||||||||||||
Gain on disposal of assets held for sale and associated settlements | — | (240,783 | ) | 240,783 | NM | |||||||||||||||||||||||||||||||||||||
Impairment and other (gains) losses, net | Impairment and other (gains) losses, net | (3,969) | — | (3,969) | NM | |||||||||||||||||||||||||||||||||||||
Operating income (loss) | $ | (390,954 | ) | $ | 71,016 | $ | (461,970 | ) | NM | Operating income (loss) | $ | 37,263 | $ | (29,414) | $ | 66,677 | NM | |||||||||||||||||||||||||
Reconciliation to adjusted operating loss: | ||||||||||||||||||||||||||||||||||||||||||
Non-cash portion of arena license fees from MSG Sports | (13,026 | ) | — | |||||||||||||||||||||||||||||||||||||||
Reconciliation to adjusted operating income (loss): | Reconciliation to adjusted operating income (loss): | |||||||||||||||||||||||||||||||||||||||||
Share-based compensation | 47,633 | 41,227 | Share-based compensation | 7,647 | 5,284 | |||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 80,142 | 84,289 | Depreciation and amortization | 26,021 | 8,955 | |||||||||||||||||||||||||||||||||||||
Restructuring charges | 21,299 | — | ||||||||||||||||||||||||||||||||||||||||
Gain on disposal of assets held for sale and associated settlements | — | (240,783 | ) | |||||||||||||||||||||||||||||||||||||||
Adjusted operating loss | $ | (254,906 | ) | $ | (44,251 | ) | $ | (210,655 | ) | NM | ||||||||||||||||||||||||||||||||
Impairment and other (gains) losses, net | Impairment and other (gains) losses, net | (3,969) | — | |||||||||||||||||||||||||||||||||||||||
Merger and acquisition related costs | Merger and acquisition related costs | 247 | 3,638 | |||||||||||||||||||||||||||||||||||||||
Adjusted operating income (loss) | Adjusted operating income (loss) | $ | 67,209 | $ | (11,537) | $ | 78,746 | NM |
————— |
Increase in revenues for the months of July 2021 through April 2022 due to the acquisition of Hakkasan on April 27, 2021 | $ | 174,263 | |||
Increase in revenues at venues subject to capacity restrictions in the prior year period (a) | 140,954 | ||||
Increase in revenues at venues that were temporarily closed in the prior year as a result of the COVID-19 pandemic | 59,870 | ||||
Other net increases, including the impact of new venue openings | 9,694 | ||||
$ | 384,781 |
Increase in direct operating expenses for the months of July 2021 through April 2022 due to the acquisition of Hakkasan on April 27, 2021 | $ | 86,985 | |||
Increase in the costs of food, beverage and venue entertainment as a result of resuming operations compared with the closure of certain venues and capacity restrictions due to the COVID-19 pandemic in the prior year | 48,774 | ||||
Increase in employee compensation and related benefits as a result of resuming operations compared with the reduction in headcount resulting from the COVID-19 pandemic in the prior year | 45,066 | ||||
Increase in rent expense, primarily due to rent concessions in the prior year resulting from the COVID-19 pandemic | 12,372 | ||||
Other net increases | 4,853 | ||||
$ | 198,050 |
Decrease in event-related revenues, as discussed below | $ | (212,899 | ) | |
Decrease in revenues from the Christmas Spectacular COVID-19 pandemic | (128,488 | ) | ||
Decrease in suite license fee revenues due to the government-mandated closures and restrictions on the use of our venues beginning in March 2020 as a result of the COVID-19 pandemic. | (85,900 | ) | ||
Decrease in venue-related signage and sponsorship revenues due to the impact of carve-out financial statement assumptions in Fiscal Year 2020 as well as the impact of government-mandated closures and restrictions on the use of our venues beginning in March 2020 as a result of theCOVID-19 pandemic | (65,196 | ) | ||
Absence of revenues from the Forum due to its disposition in May 2020 | (45,719 | ) | ||
Increase in arena license fees from MSG Sports pursuant to the Arena License Agreements, as discussed below | 21,345 | |||
Increase in revenues from Sponsorship Sales and Service Representation Agreements with MSG Sports, as discussed below | 11,280 | |||
Other net increases | 2,650 | |||
$ | (502,927 | ) | ||
Decrease in event-related direct operating expenses from (i) concerts of $85,449 during Fiscal Year 2021 and (ii) other live entertainment and sporting events of $39,057, both due to government-mandated closures and restrictions on the use of our venues beginning in March 2020 as a result of the COVID-19 pandemic | $ | (124,506 | ) | |
Decrease in direct operating expenses associated with suite license operations primarily due to the impact of lower revenue sharing expenses with MSG Sports corresponding to the lower suite revenue during Fiscal Year 2020 due to government-mandated closures and restrictions on the use of our venues beginning in March 2020 as a result of the COVID-19 pandemic | (58,096 | ) | ||
Decrease in direct operating expenses associated with venue-related signage and sponsorship primarily due to the impact of lower revenue sharing expense with MSG Sports of $52,052 as a part of carve-out financial assumptions in Fiscal Year 2020. | (53,392 | ) | ||
Decrease in direct operating expenses associated with the Christmas Spectacular COVID-19 pandemic | (50,714 | ) | ||
Decrease in direct operating expenses associated with the Forum due to its disposition in May 2020 | (26,576 | ) | ||
Increase in direct operating expenses associated with hosting the Knicks and the Rangers games, including expenses not reimbursable by MSG Sports pursuant to the Arena License Agreements | 3,118 | |||
Other net increases, primarily due to the absence of venue operating costs carve-out adjustments in Fiscal Year 2020 | 24,612 | |||
$ | (285,554 | ) | ||
Years Ended June 30, | Change | |||||||||||||||||||||||||
2021 | 2020 | Amount | Percentage | |||||||||||||||||||||||
Revenues | $ | 814,213 | $ | 1,436,018 | $ | (621,805) | (43) | % | ||||||||||||||||||
Direct operating expenses | 434,783 | 790,499 | (355,716) | (45) | % | |||||||||||||||||||||
Selling, general and administrative expenses | 424,355 | 433,211 | (8,856) | (2) | % | |||||||||||||||||||||
Depreciation and amortization | 121,999 | 112,062 | 9,937 | 9 | % | |||||||||||||||||||||
Impairment for intangibles, long-lived assets, and goodwill | — | 105,817 | (105,817) | (100) | % | |||||||||||||||||||||
Gain on disposal of assets held for sale and associated settlements | — | (240,783) | 240,783 | 100 | % | |||||||||||||||||||||
Restructuring charges | 21,299 | — | 21,299 | NM | ||||||||||||||||||||||
Operating income (loss) | (188,223) | 235,212 | (423,435) | (180) | % | |||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||
Loss in equity method investments | (6,858) | (4,433) | (2,425) | (55) | % | |||||||||||||||||||||
Interest expense, net | (17,201) | (14,337) | (2,864) | (20) | % | |||||||||||||||||||||
Other income, net | 51,488 | 35,061 | 16,427 | 47 | % | |||||||||||||||||||||
Income (loss) from operations before income taxes | (160,794) | 251,503 | (412,297) | (164) | % | |||||||||||||||||||||
Income tax expense | (5,725) | (101,690) | 95,965 | 94 | % | |||||||||||||||||||||
Net income (loss) | (166,519) | 149,813 | (316,332) | NM | ||||||||||||||||||||||
Less: Net loss attributable to redeemable noncontrolling interests | (16,269) | (30,387) | 14,118 | 46 | % | |||||||||||||||||||||
Less: Net loss attributable to nonredeemable noncontrolling interests | (2,099) | (1,534) | (565) | (37) | % | |||||||||||||||||||||
Net income (loss) attributable to Madison Square Garden Entertainment Corp.’s stockholders | $ | (148,151) | $ | 181,734 | $ | (329,885) | (182) | % | ||||||||||||||||||
Changes attributable to | Revenues | Direct operating expenses | SG&A | Depreciation and amortization | Impairment for intangibles, long-lived assets, and goodwill | Gain on disposal of assets held for sale and associated settlements | Restructuring charges | Operating income (loss) | ||||||||||||||||||||||||||||||||||||||||||
Entertainment segment | $ | (502,927) | $ | (285,554) | $ | (13,338) | $ | (4,147) | $ | — | $ | 240,783 | $ | 21,299 | $ | (461,970) | ||||||||||||||||||||||||||||||||||
MSG Networks segment | (38,287) | (19,978) | 14,510 | 172 | — | — | — | (32,991) | ||||||||||||||||||||||||||||||||||||||||||
Tao Group Hospitality segment | (80,035) | (50,047) | (9,015) | 799 | (94,946) | — | — | 73,174 | ||||||||||||||||||||||||||||||||||||||||||
Purchase accounting adjustments | — | (1,027) | (6) | 13,113 | (10,871) | — | — | (1,209) | ||||||||||||||||||||||||||||||||||||||||||
Inter-segment eliminations | (556) | 890 | (1,007) | — | — | — | — | (439) | ||||||||||||||||||||||||||||||||||||||||||
$ | (621,805) | $ | (355,716) | $ | (8,856) | $ | 9,937 | $ | (105,817) | $ | 240,783 | $ | 21,299 | $ | (423,435) |
Tao Group Hospitality Segment | Purchase accounting adjustments | Total | ||||||||||||||||||
Intangibles | $ | — | $ | 3,541 | $ | 3,541 | ||||||||||||||
Long-lived assets | 6,363 | 7,330 | 13,693 | |||||||||||||||||
Goodwill | 88,583 | — | 88,583 | |||||||||||||||||
$ | 94,946 | $ | 10,871 | $ | 105,817 |
Years Ended June 30, | Change | |||||||||||||||
2021 | 2020 | Amount | Percentage | |||||||||||||
Revenues | $ | 100,166 | $ | 180,201 | $ | (80,035 | ) | (44 | )% | |||||||
Direct operating expenses | 66,591 | 116,638 | (50,047 | ) | (43 | )% | ||||||||||
Selling, general and administrative expenses | 54,034 | 63,049 | (9,015 | ) | (14 | )% | ||||||||||
Depreciation and amortization | 8,955 | 8,156 | 799 | 10 | % | |||||||||||
Impairment for intangibles, long-lived assets, and goodwill | — | 94,946 | (94,946 | ) | (100 | )% | ||||||||||
Operating loss | $ | (29,414 | ) | $ | (102,588 | ) | $ | 73,174 | 71 | % | ||||||
Reconciliation to adjusted operating income (loss): | ||||||||||||||||
Share-based compensation | 5,284 | 963 | ||||||||||||||
Depreciation and amortization | 8,955 | 8,156 | ||||||||||||||
Impairment for intangibles, long-lived assets, and goodwill | — | 94,946 | ||||||||||||||
Adjusted operating income (loss) | $ | (15,175 | ) | $ | 1,477 | $ | (16,652 | ) | NM | |||||||
Decrease in revenues due to the closure of certain venues as a result of the COVID-19 pandemic | $ | (57,874 | ) | |
Decrease in revenues due to capacity restrictions at re-opened venues | (36,743 | ) | ||
Decrease in revenues associated with the permanent closing of Vandal and Avenue in New York | (12,619 | ) | ||
Increase in revenues due to the Hakkasan acquisition in April 2021 | 27,604 | |||
Other net decreases | (403 | ) | ||
$ | (80,035 | ) | ||
Decrease in employee compensation and related benefits as a result of (i) a reduction in headcount at re-opened venues, (ii) the elimination of venue line staff and manager positions at closed venues, and (iii) the permanent closure of Vandal and Avenue, all as a result of theCOVID-19 pandemic | $ | (24,916 | ) | |
Decrease in (i) costs of food and beverage, and (ii) costs of venue entertainment, both as a result of the closure of certain venues, capacity restrictions at re-opened venues and the permanent closure of Vandal and Avenue, all due to theCOVID-19 pandemic | (23,370 | ) | ||
Decrease in direct operating expenses associated with rent expense, primarily due to rent concessions received and the permanent closure of Vandal and Avenue | (7,514 | ) | ||
Increase in direct operating expenses due to the Hakkasan acquisition in April 2021 | 12,278 | |||
Other net decreases, due to lower credit card fees | (6,525 | ) | ||
$ | (50,047 | ) | ||
Years Ended June 30, | Change | |||||||||||||||||||||||||
2021 | 2020 | Amount | Percentage | |||||||||||||||||||||||
Operating income (loss) | $ | (188,223) | $ | 235,212 | $ | (423,435) | (180) | % | ||||||||||||||||||
Non-cash portion of arena license fees from MSG Sports | (13,026) | — | ||||||||||||||||||||||||
Share-based compensation expense | 70,584 | 61,425 | ||||||||||||||||||||||||
Depreciation and amortization (a) | 121,999 | 112,062 | ||||||||||||||||||||||||
Restructuring charges | 21,299 | — | ||||||||||||||||||||||||
Impairment and other (gains) losses, net | — | 105,817 | ||||||||||||||||||||||||
Merger and acquisition related costs | 24,220 | — | ||||||||||||||||||||||||
Gain on disposal of assets held for sale, including legal settlement | — | (240,783) | ||||||||||||||||||||||||
Other purchase accounting adjustments | 3,334 | 4,367 | ||||||||||||||||||||||||
Adjusted operating income | $ | 40,187 | $ | 278,100 | $ | (237,913) | (86) | % |
Increase in adjusted operating loss of the Entertainment segment | $ | (194,575) | |||
Increase in adjusted operating loss of the Tao Group Hospitality segment | (13,014) | ||||
Decrease in adjusted operating income of the MSG Networks segment | (29,885) | ||||
Inter-segment eliminations | (439) | ||||
$ | (237,913) |
Years Ended June 30, | Years Ended June 30, | |||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | ||||||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||||||||
Net loss | $ | (395,560 | ) | $ | (12,627 | ) | ||||||||||||||||||||||||||||
Adjustments to reconcile net loss to net cash provided by operating activities | 132,793 | 122,357 | ||||||||||||||||||||||||||||||||
Net income (loss) | Net income (loss) | $ | (190,147) | $ | (166,519) | $ | 149,813 | |||||||||||||||||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | 268,317 | 88,347 | 170,703 | ||||||||||||||||||||||||||||||
Subtotal | $ | (262,767 | ) | $ | 109,730 | Subtotal | $ | 78,170 | $ | (78,172) | $ | 320,516 | ||||||||||||||||||||||
Changes in working capital assets and liabilities | 8,177 | (11,639 | ) | Changes in working capital assets and liabilities | 63,170 | 19,478 | (12,393) | |||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (254,590 | ) | $ | 98,091 | Net cash provided by (used in) operating activities | $ | 141,340 | $ | (58,694) | $ | 308,123 | ||||||||||||||||||||||
Net cash used in investing activities | (119,330 | ) | (391,717 | ) | Net cash used in investing activities | (804,164) | (123,183) | (394,531) | ||||||||||||||||||||||||||
Net cash provided by financing activities | 633,333 | 122,938 | ||||||||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | Net cash provided by (used in) financing activities | (30,392) | 592,685 | (113,866) | ||||||||||||||||||||||||||||||
Effect of exchange rates on cash, cash equivalents and restricted cash | 8,027 | 2,927 | Effect of exchange rates on cash, cash equivalents and restricted cash | (750) | 8,027 | 2,927 | ||||||||||||||||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | $ | 267,440 | $ | (167,761 | ) | Net increase (decrease) in cash, cash equivalents and restricted cash | $ | (693,966) | $ | 418,835 | $ | (197,347) | ||||||||||||||||||||||
Payments Due by Period | ||||||||||||||||||||||||||||||||
Total | Year 1 | Years 2-3 | Years 4-5 | More Than 5 Years | ||||||||||||||||||||||||||||
Leases (a) | $ | 736,961 | $ | 69,070 | $ | 134,752 | $ | 76,636 | $ | 456,503 | ||||||||||||||||||||||
Debt repayments (b) | 1,762,987 | 78,512 | 974,125 | 710,350 | — | |||||||||||||||||||||||||||
Other (c) (d) | 196,894 | 196,894 | — | — | — | |||||||||||||||||||||||||||
$ | 2,696,842 | $ | 344,476 | $ | 1,108,877 | $ | 786,986 | $ | 456,503 | |||||||||||||||||||||||
Payments Due by Period | ||||||||||||||||||||
Total | Year 1 | Years 2-3 | Years 4-5 | More Than 5 Years | ||||||||||||||||
Leases (a) | $ | 410,377 | $ | 71,346 | $ | 124,559 | $ | 63,999 | $ | 150,473 | ||||||||||
Debt repayments (b) | 691,137 | 12,750 | 51,137 | 627,250 | — | |||||||||||||||
Other (c) (d) | 120,425 | 120,132 | 236 | 57 | — | |||||||||||||||
$1,221,939 | $204,228 | $175,932 | $691,306 | $150,473 | ||||||||||||||||
Commitments(a) | ||||||||||||||||||||||||||
MSG Networks(b) | Entertainment(c) | Tao Group Hospitality(d) | Total | |||||||||||||||||||||||
Fiscal year ending June 30, 2023 | $ | 279,604 | $ | 429,346 | $ | 2,650 | $ | 711,600 | ||||||||||||||||||
Fiscal year ending June 30, 2024 | 258,551 | 72,920 | 892 | 332,363 | ||||||||||||||||||||||
Fiscal year ending June 30, 2025 | 250,551 | 4,272 | 931 | 255,754 | ||||||||||||||||||||||
Fiscal year ending June 30, 2026 | 251,329 | — | 143 | 251,472 | ||||||||||||||||||||||
Fiscal year ending June 30, 2027 | 258,633 | — | — | 258,633 | ||||||||||||||||||||||
Thereafter | 2,088,459 | — | — | 2,088,459 | ||||||||||||||||||||||
$ | 3,387,127 | $ | 506,538 | $ | 4,616 | $ | 3,898,281 |
Goodwill | $ | 500,181 | |||
Indefinite-lived intangible assets | 63,801 | ||||
Amortizable intangible assets, net of accumulated amortization | 164,084 | ||||
Property and equipment, net | 2,939,052 | ||||
Right-of-use lease assets | 446,499 | ||||
$ | 4,113,617 |
Goodwill | $ | 77,687 | ||
Indefinite-lived intangible assets | 63,801 | |||
Amortizable intangible assets, net of accumulated amortization | 171,451 | |||
Property and equipment, net | 2,148,575 | |||
Right-of-use | 268,568 | |||
$ | 2,730,082 | |||
Entertainment | $ | 74,309 | |||
MSG Networks | 424,508 | ||||
Tao Group Hospitality | 1,364 | ||||
$ | 500,181 |
Entertainment | $ | 74,309 | ||
Tao Group Hospitality | 3,378 | |||
$ | 77,687 | |||
Trademarks | $ | 61,881 | |||
Photographic related rights | 1,920 | ||||
$ | 63,801 |
Trademarks | $ | 61,881 | ||
Photographic related rights | 1,920 | |||
$ | 63,801 | |||
Estimated Useful Lives | Net Carrying Value | ||||||||||||||||
Trade names | 2 years | to | 25 years | $ | 79,951 | ||||||||||||
Venue management contracts | 5.67 years | to | 20 years | 61,309 | |||||||||||||
Affiliate relationships | 24 years | 21,025 | |||||||||||||||
Non-compete agreements | 5.75 years | 522 | |||||||||||||||
Festival rights | 7 years | 1,154 | |||||||||||||||
Other intangibles | 15 years | 123 | |||||||||||||||
$ | 164,084 |
Estimated Useful Lives | Net Carrying Value | |||||||
Trade names | 2 years to 25 years | $ | 95,395 | |||||
Venue management contracts | 5.67 years to 20 years | 68,182 | ||||||
Non-compete agreements | 5.75 years | 2,087 | ||||||
Festival rights | 15 years | 5,384 | ||||||
Other intangibles | 15 years | 403 | ||||||
$ | 171,451 | |||||||
Net Periodic Benefit Cost | Benefit Obligation | |||||||
Healthcare cost trend rate assumed for next year | 6.50 | % | 6.25 | % | ||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 5.00 | % | 5.00 | % | ||||
Year that the rate reaches the ultimate trend rate | 2027 | 2027 |
Page No. | ||||||||||||||
The following documents are filed as part of this report: | ||||||||||||||
1. | The financial statements as indicated in the index set forth on page | F- 1 | ||||||||||||
2. | Financial statement schedule: | |||||||||||||
Schedule supporting consolidated and combined financial statements: | ||||||||||||||
Schedules other than that listed above have been omitted, since they are either not applicable, not required or the information is included elsewhere herein. | ||||||||||||||
3. | Exhibits: |
EXHIBIT NO. | DESCRIPTION | |||||||
EXHIBIT NO. | DESCRIPTION | |||||||
Subsidiaries of the | ||||||||
101 | The following materials from Madison Square Garden Entertainment Corp. Annual Report on Form | |||||||
104 | ||||||||
The cover page form the Company’s Annual Report on Form |
(Additions) / Deductions | |||||||||||||||||||||||||||||||||||||||||
Balance at Beginning of Period | Charged to Costs and Expenses | Charged to Other Accounts | Deductions | Balance at End of Period | |||||||||||||||||||||||||||||||||||||
Year Ended June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||
Allowance for doubtful accounts / credit losses | $ | (6,449) | $ | (1,625) | $ | — | $ | 2,595 | $ | (5,479) | |||||||||||||||||||||||||||||||
Deferred tax valuation allowance | (69,900) | (7,210) | (3,725) | — | (80,835) | ||||||||||||||||||||||||||||||||||||
$ | (76,349) | $ | (8,835) | $ | (3,725) | $ | 2,595 | $ | (86,314) | ||||||||||||||||||||||||||||||||
Year Ended June 30, 2021 | |||||||||||||||||||||||||||||||||||||||||
Allowance for doubtful accounts / credit losses | $ | (10,408) | $ | (283) | $ | — | $ | 4,242 | $ | (6,449) | |||||||||||||||||||||||||||||||
Deferred tax valuation allowance | (28,937) | (25,704) | (15,259) | — | (69,900) | ||||||||||||||||||||||||||||||||||||
$ | (39,345) | $ | (25,987) | $ | (15,259) | $ | 4,242 | $ | (76,349) | ||||||||||||||||||||||||||||||||
Year Ended June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||
Allowance for doubtful accounts / credit losses | $ | (2,898) | $ | (10,223) | $ | — | $ | 2,713 | $ | (10,408) | |||||||||||||||||||||||||||||||
Deferred tax valuation allowance | (13,173) | (2,598) | (13,166) | — | (28,937) | ||||||||||||||||||||||||||||||||||||
$ | (16,071) | $ | (12,821) | $ | (13,166) | $ | 2,713 | $ | (39,345) |
(Additions) / Deductions | ||||||||||||||||||||
Balance at Beginning of Period | Charged to Costs and Expenses | Charged to Other Accounts | Deductions | Balance at End of Period | ||||||||||||||||
Year ended June 30, 2021 | ||||||||||||||||||||
Allowance for doubtful accounts / credit losses | $ | (9,135 | ) | $ | (468 | ) | $ | — | $ | 4,026 | $ | (5,577 | ) (a) | |||||||
Deferred tax valuation allowance (c) | (29,952 | ) | (111,297 | ) | (3,929 | ) | — | (145,178 | ) | |||||||||||
$ | (39,087 | ) | $ | (111,765 | ) | $ | (3,929 | ) | $ | 4,026 | $ | (150,755 | ) | |||||||
Year ended June 30, 2020 | ||||||||||||||||||||
Allowance for doubtful accounts / credit losses | $ | (1,814 | ) | $ | (9,945 | ) | $ | — | $ | 2,624 | $ | (9,135 | ) | |||||||
Deferred tax valuation allowance (c) | (113,661 | ) | 14,028 | 69,681 | (b) | — | (29,952 | ) | ||||||||||||
$ | (115,475 | ) | $ | 4,083 | $ | 69,681 | $ | 2,624 | $ | (39,087 | ) | |||||||||
Year ended June 30, 2019 | ||||||||||||||||||||
Allowance for doubtful accounts / credit losses | $ | (777 | ) | $ | (1,456 | ) | $ | — | $ | 419 | $ | (1,814 | ) | |||||||
Deferred tax valuation allowance (c) | (130,314 | ) | 2,673 | 13,800 | — | (113,841 | ) | |||||||||||||
$ | (131,091 | ) | $ | 1,217 | $ | 13,800 | $ | 419 | $ | (115,655 | ) | |||||||||
Madison Square Garden Entertainment Corp. | ||||||||
By: | /s/ DAVID F. BYRNES | |||||||
Name: | David F. Byrnes | |||||||
Title: | Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
Name | Title | Date | ||||||||||||
/s/ JAMES L. DOLAN | Executive Chairman and Chief Executive Officer (Principal Executive Officer) and Director | August 19, 2022 | ||||||||||||
James L. Dolan | ||||||||||||||
/s/ DAVID F. BYRNES | Executive Vice President and Chief Financial Officer (Principal Financial Officer) | August 19, 2022 | ||||||||||||
David F. Byrnes | ||||||||||||||
/s/ COURTNEY M. ZEPPETELLA | Senior Vice President, Controller and Chief Accounting Officer | August 19, 2022 | ||||||||||||
Courtney M. Zeppetella | ||||||||||||||
/s/ MARTIN BANDIER | Director | August 19, 2022 | ||||||||||||
Martin Bandier | ||||||||||||||
/s/ CHARLES F. DOLAN | Director | August 19, 2022 | ||||||||||||
Charles F. Dolan | ||||||||||||||
/s/ CHARLES P. DOLAN | Director | August 19, 2022 | ||||||||||||
Charles P. Dolan | ||||||||||||||
/s/ KRISTIN A. DOLAN | Director | August 19, 2022 | ||||||||||||
Kristin A. Dolan |
Date | ||||||||||||||
/s/ MARIANNE DOLAN WEBER | ||||||||||||||
Marianne Dolan Weber | ||||||||||||||
/s/ PAUL J. DOLAN | Director | August 19, 2022 | ||||||||||||
Paul J. Dolan | ||||||||||||||
/s/ QUENTIN F. DOLAN | Director | August 19, 2022 | ||||||||||||
Quentin F. Dolan | ||||||||||||||
/s/ RYAN T. DOLAN | Director | August 19, 2022 | ||||||||||||
Ryan T. Dolan | ||||||||||||||
/s/ THOMAS C. DOLAN | Director | August 19, 2022 | ||||||||||||
Thomas C. Dolan | ||||||||||||||
/s/ JOSEPH J. LHOTA | Director | August 19, 2022 | ||||||||||||
Joseph J. Lhota | ||||||||||||||
/s/ JOEL M. LITVIN | Director | August 19, 2022 | ||||||||||||
Joel M. Litvin | ||||||||||||||
/s/ FREDERIC V. SALERNO | Director | August 19, 2022 | ||||||||||||
Frederic V. Salerno | ||||||||||||||
/s/ BRIAN G. SWEENEY | Director | August 19, 2022 | ||||||||||||
Brian G. Sweeney | ||||||||||||||
/s/ JOHN L. SYKES | Director | August 19, 2022 | ||||||||||||
John L. Sykes | ||||||||||||||
/s/ VINCENT TESE | Director | August 19, 2022 | ||||||||||||
Vincent Tese | ||||||||||||||
/s/ ISIAH L. THOMAS III | Director | August 19, 2022 | ||||||||||||
Isiah L. Thomas III |
Page | ||||||||
(Deloitte & Touche LLP, New York, NY, Auditor Firm ID: 34; KPMG LLP, New York, NY, Auditor Firm ID: 185) | F-2 | |||||||
F-6 | ||||||||
F- 7 | ||||||||
F-8 | ||||||||
F-9 | ||||||||
Consolidated Statements of Equity and Redeemable Noncontrolling Interests for the years ended June 30, 2022 and 2021, and Consolidated and Combined Statement of Equity and Redeemable Noncontrolling Interests for the year ended June 30, 2020 | F- | |||||||
11 | ||||||||
F-14 |
◦Read the Company’s minutes from meetings |
MADISON SQUARE GARDEN ENTERTAINMENT CORP. | ||||||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||||||
(in thousands, except per share data) | ||||||||||||||
June 30, | ||||||||||||||
2022 | 2021 | |||||||||||||
ASSETS | ||||||||||||||
Current Assets: | ||||||||||||||
Cash and cash equivalents | $ | 828,540 | $ | 1,516,992 | ||||||||||
Restricted cash | 17,470 | 22,984 | ||||||||||||
Accounts receivable, net | 216,652 | 184,613 | ||||||||||||
Net related party receivables | 32,541 | 31,916 | ||||||||||||
Prepaid expenses and other current assets | 123,453 | 116,231 | ||||||||||||
Total current assets | 1,218,656 | 1,872,736 | ||||||||||||
Investments in nonconsolidated affiliates | 43,804 | 49,221 | ||||||||||||
Property and equipment, net | 2,939,052 | 2,156,292 | ||||||||||||
Right-of-use lease assets | 446,499 | 280,579 | ||||||||||||
Amortizable intangible assets, net | 164,084 | 198,274 | ||||||||||||
Indefinite-lived intangible assets | 63,801 | 63,801 | ||||||||||||
Goodwill | 500,181 | 502,195 | ||||||||||||
Other assets | 146,083 | 166,781 | ||||||||||||
Total assets | $ | 5,522,160 | $ | 5,289,879 | ||||||||||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | ||||||||||||||
Current Liabilities: | ||||||||||||||
Accounts payable | $ | 31,980 | $ | 26,644 | ||||||||||
Net related party payables, current | 38,576 | 23,173 | ||||||||||||
Current portion of long-term debt, net of deferred financing costs | 73,843 | 53,973 | ||||||||||||
Accrued and other current liabilities | 518,690 | 343,006 | ||||||||||||
Operating lease liabilities, current | 65,310 | 73,423 | ||||||||||||
Deferred revenue | 228,032 | 209,651 | ||||||||||||
Total current liabilities | 956,431 | 729,870 | ||||||||||||
Long-term debt, net of deferred financing costs | 1,669,245 | 1,650,628 | ||||||||||||
Operating lease liabilities, non-current | 427,971 | 233,556 | ||||||||||||
Deferred tax liabilities, net | 163,441 | 200,325 | ||||||||||||
Other liabilities | 145,496 | 157,260 | ||||||||||||
Total liabilities | 3,362,584 | 2,971,639 | ||||||||||||
Commitments and contingencies (see Note 14) | 0 | 0 | ||||||||||||
Redeemable noncontrolling interests | 184,192 | 137,834 | ||||||||||||
Madison Square Garden Entertainment Corp. Stockholders’ Equity: | ||||||||||||||
Class A common stock, par value $0.01, 120,000 shares authorized; 27,368 and 27,093 shares outstanding as of June 30, 2022 and 2021, respectively | 273 | 271 | ||||||||||||
Class B common stock, par value $0.01, 30,000 shares authorized; 6,867 shares outstanding as of June 30, 2022 and 2021 | 69 | 69 | ||||||||||||
Preferred stock, par value $0.01, 15,000 shares authorized; none outstanding as of June 30, 2022 and 2021 | — | — | ||||||||||||
Additional paid-in capital | 2,301,970 | 2,294,775 | ||||||||||||
Accumulated deficit | (290,736) | (96,341) | ||||||||||||
Accumulated other comprehensive loss | (48,355) | (30,272) | ||||||||||||
Total Madison Square Garden Entertainment Corp. stockholders’ equity | 1,963,221 | 2,168,502 | ||||||||||||
Nonredeemable noncontrolling interests | 12,163 | 11,904 | ||||||||||||
Total equity | 1,975,384 | 2,180,406 | ||||||||||||
Total liabilities, redeemable noncontrolling interests and equity | $ | 5,522,160 | $ | 5,289,879 |
MADISON SQUARE GARDEN ENTERTAINMENT CORP. | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(in thousands, except per share data) | ||||||||
June 30, | ||||||||
2021 | 2020 | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 1,168,760 | $ | 906,555 | ||||
Restricted cash | 22,984 | 17,749 | ||||||
Short-term investments | 0 | 337,192 | ||||||
Accounts receivable, net | 85,955 | 57,184 | ||||||
Net related party receivables | 36,378 | 23,062 | ||||||
Prepaid expenses | 60,493 | 62,127 | ||||||
Other current assets | 37,779 | 22,633 | ||||||
Total current assets | 1,412,349 | 1,426,502 | ||||||
Investments in nonconsolidated affiliates | 45,969 | 52,622 | ||||||
Property and equipment, net | 2,148,575 | 1,660,453 | ||||||
Right-of-use | 268,568 | 220,328 | ||||||
Amortizable intangible assets, net | 171,451 | 150,426 | ||||||
Indefinite-lived intangible assets | 63,801 | 63,801 | ||||||
Goodwill | 77,687 | 74,309 | ||||||
Other assets | 128,169 | 85,103 | ||||||
Total assets | $ | 4,316,569 | $ | 3,733,544 | ||||
MADISON SQUARE GARDEN ENTERTAINMENT CORP. | ||||||||
CONSOLIDATED BALANCE SHEETS (Continued) | ||||||||
(in thousands, except per share data) | ||||||||
June 30, | ||||||||
2021 | 2020 | |||||||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 23,933 | $ | 17,258 | ||||
Net related party payables, current | 57,616 | 18,418 | ||||||
Current portion of long-term debt, net of deferred financing costs | 5,728 | 5,429 | ||||||
Accrued liabilities: | ||||||||
Employee related costs | 68,242 | 68,837 | ||||||
Other accrued liabilities | 181,636 | 125,452 | ||||||
Operating lease liabilities, current | 68,544 | 53,388 | ||||||
Collections due to promoters | 37,877 | 31,879 | ||||||
Deferred revenue | 209,501 | 189,308 | ||||||
Total current liabilities | 653,077 | 509,969 | ||||||
Long-term debt, net of deferred financing costs | 655,093 | 28,126 | ||||||
Operating lease liabilities, noncurrent | 224,729 | 174,219 | ||||||
Defined benefit and other postretirement obligations | 28,847 | 26,132 | ||||||
Other employee related costs | 15,629 | 15,591 | ||||||
Collections due to promoters, noncurrent | 6,625 | 0 | ||||||
Deferred tax liabilities, net | 11,972 | 12,450 | ||||||
Other liabilities | 73,790 | 78,279 | ||||||
Total liabilities | 1,669,762 | 844,766 | ||||||
Commitments and contingencies (see Note 12) | ||||||||
Redeemable noncontrolling interests | 137,834 | 20,600 | ||||||
Madison Square Garden Entertainment Corp. Stockholders’ Equity: | ||||||||
Class A common stock, par value $0.01, 120,000 shares authorized; 19,618 and 19,493 shares outstanding as of June 30, 2021 and 2020, respectively | 196 | 195 | ||||||
Class B common stock, par value $0.01, 30,000 shares authorized; 4,530 shares outstanding as of June 30, 2021 and 2020 | 45 | 45 | ||||||
Preferred stock, par value $0.01, 15,000 shares authorized; NaN outstanding as of June 30, 2021 and 2020 | 0 | 0 | ||||||
Additional paid-in capital | 2,758,843 | 2,765,295 | ||||||
Retained earnings (accumulated deficit) | (234,895 | ) | 142,297 | |||||
Accumulated other comprehensive loss | (27,120 | ) | (51,857 | ) | ||||
Total Madison Square Garden Entertainment Corp. stockholders’ equity | 2,497,069 | 2,855,975 | ||||||
Nonredeemable noncontrolling interests | 11,904 | 12,203 | ||||||
Total equity | 2,508,973 | 2,868,178 | ||||||
Total liabilities, redeemable noncontrolling interests and equity | $ | 4,316,569 | $ | 3,733,544 | ||||
Years Ended June 30, | ||||||||||||||||||||
2022 | 2021 | 2020 | ||||||||||||||||||
Revenues (a) | $ | 1,724,618 | $ | 814,213 | $ | 1,436,018 | ||||||||||||||
Operating expenses: (a) | ||||||||||||||||||||
Direct operating expenses | 1,009,245 | 434,783 | 790,499 | |||||||||||||||||
Selling, general and administrative expenses | 681,796 | 424,355 | 433,211 | |||||||||||||||||
Depreciation and amortization | 124,629 | 121,999 | 112,062 | |||||||||||||||||
Impairment and other (gains) losses, net | (3,045) | — | 105,817 | |||||||||||||||||
Gain on disposal of assets held for sale and associated settlements | — | — | (240,783) | |||||||||||||||||
Restructuring charges | 14,690 | 21,299 | — | |||||||||||||||||
Operating income (loss) | (102,697) | (188,223) | 235,212 | |||||||||||||||||
Other income (expense): | ||||||||||||||||||||
Loss in equity method investments | (5,027) | (6,858) | (4,433) | |||||||||||||||||
Interest income | 4,210 | 3,222 | 22,227 | |||||||||||||||||
Interest expense | (27,155) | (20,423) | (36,564) | |||||||||||||||||
Loss on extinguishment of debt | (35,815) | — | — | |||||||||||||||||
Other income (expense), net | (49,448) | 51,488 | 35,061 | |||||||||||||||||
(113,235) | 27,429 | 16,291 | ||||||||||||||||||
Income (loss) from operations before income taxes | (215,932) | (160,794) | 251,503 | |||||||||||||||||
Income tax benefit (expense) | 25,785 | (5,725) | (101,690) | |||||||||||||||||
Net income (loss) | (190,147) | (166,519) | 149,813 | |||||||||||||||||
Less: Net income (loss) attributable to redeemable noncontrolling interests | 7,739 | (16,269) | (30,387) | |||||||||||||||||
Less: Net loss attributable to nonredeemable noncontrolling interests | (3,491) | (2,099) | (1,534) | |||||||||||||||||
Net income (loss) attributable to Madison Square Garden Entertainment Corp.’s stockholders | $ | (194,395) | $ | (148,151) | $ | 181,734 | ||||||||||||||
Basic earnings (loss) per common share attributable to Madison Square Garden Entertainment Corp.’s stockholders | $ | (5.77) | $ | (4.60) | $ | 5.21 | ||||||||||||||
Diluted earnings (loss) per common share attributable to Madison Square Garden Entertainment Corp.’s stockholders | $ | (5.77) | $ | (4.60) | $ | 5.20 | ||||||||||||||
Weighted-average number of common shares outstanding: | ||||||||||||||||||||
Basic | 34,255 | 34,077 | 34,864 | |||||||||||||||||
Diluted | 34,255 | 34,077 | 34,942 | |||||||||||||||||
Years Ended June 30, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Revenues (a) | $ | 180,401 | $ | 762,936 | $ | 1,048,909 | ||||||
Operating expenses: | ||||||||||||
Direct operating expenses (b) | 171,924 | 508,122 | 670,641 | |||||||||
Selling, general and administrative expenses (c) | 322,714 | 344,637 | 314,522 | |||||||||
Depreciation and amortization | 114,664 | 104,899 | 109,343 | |||||||||
Impairment for intangibles, long-lived assets, and goodwill | 0 | 105,817 | 0 | |||||||||
Gain on disposal of assets held for sale and associated settlements | 0 | (240,783 | ) | 0 | ||||||||
Restructuring charges | 21,299 | 0 | 0 | |||||||||
Operating loss | (450,200 | ) | (59,756 | ) | (45,597 | ) | ||||||
Other income (expense): | ||||||||||||
Earnings (loss) in equity method investments | (6,858 | ) | (4,433 | ) | 7,062 | |||||||
Interest income (d) | 1,273 | 17,993 | 30,163 | |||||||||
Interest expense | (208 | ) | (240 | ) | (5,587 | ) | ||||||
Miscellaneous income (expense), net (e) | 51,062 | 38,855 | (6,061 | ) | ||||||||
45,269 | 52,175 | 25,577 | ||||||||||
Loss from operations before income taxes | (404,931 | ) | (7,581 | ) | (20,020 | ) | ||||||
Income tax benefit (expense) | 9,371 | (5,046 | ) | (443 | ) | |||||||
Net loss | (395,560 | ) | (12,627 | ) | (20,463 | ) | ||||||
Less: Net loss attributable to redeemable noncontrolling interests | (16,269 | ) | (30,387 | ) | (7,299 | ) | ||||||
Less: Net loss attributable to nonredeemable noncontrolling interests | (2,099 | ) | (1,534 | ) | (4,945 | ) | ||||||
Net income (loss) attributable to Madison Square Garden Entertainment Corp.’s stockholders | $ | (377,192 | ) | $ | 19,294 | $ | (8,219 | ) | ||||
Basic earnings (loss) per common share attributable to Madison Square Garden Entertainment Corp.’s stockholders (f) | $ | (15.95 | ) | $ | 0.81 | $ | (0.35 | ) | ||||
Diluted earnings (loss) per common share attributable to Madison Square Garden Entertainment Corp.’s stockholders (f) | $ | (15.95 | ) | $ | 0.81 | $ | (0.35 | ) | ||||
Weighted-average number of common shares outstanding: | ||||||||||||
Basic (f) | 24,205 | 23,998 | 23,992 | |||||||||
Diluted (f) | 24,205 | 24,017 | 23,992 |
Years Ended June 30, | ||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (190,147) | $ | (166,519) | $ | 149,813 | ||||||||||||||||||||||||||||||||
Other comprehensive income (loss), before income taxes: | ||||||||||||||||||||||||||||||||||||||
Pension plans and postretirement plans: | ||||||||||||||||||||||||||||||||||||||
Net unamortized losses arising during the period | — | (404) | (1,589) | |||||||||||||||||||||||||||||||||||
Amortization of net actuarial loss included in net periodic benefit cost | 1,978 | 1,697 | 1,878 | |||||||||||||||||||||||||||||||||||
Amortization of net prior service credit included in net periodic benefit cost | 756 | (5,168) | (3) | |||||||||||||||||||||||||||||||||||
Curtailments | — | 156 | — | |||||||||||||||||||||||||||||||||||
Settlement loss | — | 870 | 67 | |||||||||||||||||||||||||||||||||||
Cumulative translation adjustments | (25,034) | 27,688 | (7,692) | |||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), before income taxes | (22,300) | 24,839 | (7,339) | |||||||||||||||||||||||||||||||||||
Income tax benefit (expense) related to items of other comprehensive income | 4,217 | (4,638) | 1,096 | |||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of income taxes | (18,083) | 20,201 | (6,243) | |||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | (208,230) | (146,318) | 143,570 | |||||||||||||||||||||||||||||||||||
Less: Comprehensive income (loss) attributable to redeemable noncontrolling interests | 7,739 | (16,269) | (30,387) | |||||||||||||||||||||||||||||||||||
Less: Comprehensive loss attributable to nonredeemable noncontrolling interests | (3,491) | (2,099) | (1,534) | |||||||||||||||||||||||||||||||||||
Comprehensive income (loss) attributable to Madison Square Garden Entertainment Corp.’s stockholders | $ | (212,478) | $ | (127,950) | $ | 175,491 |
Years Ended June 30, | ||||||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||||||
Net loss | $ | (395,560 | ) | $ | (12,627 | ) | $ | (20,463 | ) | |||||||||||||||
Other comprehensive income (loss), before income taxes: | ||||||||||||||||||||||||
Pension plans and postretirement plan: | ||||||||||||||||||||||||
Net unamortized losses arising during the period | $ | 0 | $ | (45 | ) | $ | (2,565 | ) | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss: | ||||||||||||||||||||||||
Amortization of net actuarial loss included in net periodic benefit cost | 1,191 | 1,342 | 1,286 | |||||||||||||||||||||
Amortization of net prior service credit included in net periodic benefit cost | (5,168 | ) | 0 | (7 | ) | |||||||||||||||||||
Curtailments | 156 | 0 | 0 | |||||||||||||||||||||
Settlement loss | 870 | (2,951 | ) | 67 | 1,364 | 52 | (1,234 | ) | ||||||||||||||||
Cumulative translation adjustments | 27,688 | (7,692 | ) | (4,341 | ) | |||||||||||||||||||
Other comprehensive income (loss), before income taxes | 24,737 | (6,328 | ) | (5,575 | ) | |||||||||||||||||||
Income tax expense related to items of other comprehensive income | 0 | 0 | 0 | |||||||||||||||||||||
Other comprehensive income (loss), net of income taxes | 24,737 | (6,328 | ) | (5,575 | ) | |||||||||||||||||||
Comprehensive loss | (370,823 | ) | (18,955 | ) | (26,038 | ) | ||||||||||||||||||
Less: Comprehensive loss attributable to redeemable noncontrolling interests | (16,269 | ) | (30,387 | ) | (7,299 | ) | ||||||||||||||||||
Less: Comprehensive loss attributable to nonredeemable noncontrolling interests | (2,099 | ) | (1,534 | ) | (4,945 | ) | ||||||||||||||||||
Comprehensive income (loss) attributable to Madison Square Garden Entertainment Corp.’s stockholders | $ | (352,455 | ) | $ | 12,966 | $ | (13,794 | ) | ||||||||||||||||
MADISON SQUARE GARDEN ENTERTAINMENT CORP. | ||||||||||||||||||||
CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Years Ended June 30, | ||||||||||||||||||||
2022 | 2021 | 2020 | ||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net income (loss) | $ | (190,147) | $ | (166,519) | $ | 149,813 | ||||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||||||||||||||
Depreciation and amortization | 124,629 | 121,999 | 112,062 | |||||||||||||||||
Impairment and other (gains) losses, net | (3,045) | — | 105,817 | |||||||||||||||||
Share-based compensation expense | 77,141 | 70,584 | 61,425 | |||||||||||||||||
Amortization of deferred financing costs | 8,728 | 6,270 | 2,759 | |||||||||||||||||
Loss in equity method investments | 5,027 | 6,858 | 4,433 | |||||||||||||||||
Provision for (benefit from) deferred income taxes | (31,270) | (71,357) | 8,700 | |||||||||||||||||
Net unrealized and realized (gain) loss on equity investments with readily determinable fair value | 49,842 | (51,178) | (37,628) | |||||||||||||||||
Provision for credit losses | 1,625 | 283 | 10,223 | |||||||||||||||||
Gain on sale of the Forum, excluding associated settlement | — | — | (100,288) | |||||||||||||||||
Loss on extinguishment of debt | 35,815 | — | — | |||||||||||||||||
Other non-cash adjustments | (175) | 4,888 | 3,200 | |||||||||||||||||
Change in assets and liabilities, net of acquisitions: | ||||||||||||||||||||
Accounts receivable, net | (30,749) | (18,634) | 17,974 | |||||||||||||||||
Related party receivables, net of payables | 14,778 | 8,593 | (18,225) | |||||||||||||||||
Other current and non-current assets | (43,982) | (33,348) | (28,945) | |||||||||||||||||
Accounts payable | 6,624 | (3,514) | (6,234) | |||||||||||||||||
Accrued and other current and non-current liabilities | 71,818 | 43,409 | 15,222 | |||||||||||||||||
Deferred revenue | 18,572 | 12,753 | 2,620 | |||||||||||||||||
Operating lease right-of-use assets and lease liabilities | 26,109 | 10,219 | 5,195 | |||||||||||||||||
Net cash provided by (used in) operating activities | $ | 141,340 | $ | (58,694) | $ | 308,123 | ||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Capital expenditures, net | (756,717) | (456,007) | (455,240) | |||||||||||||||||
Capitalized interest | (48,507) | (34,890) | (2,060) | |||||||||||||||||
Purchase of short-term investments | — | — | (443,154) | |||||||||||||||||
Proceeds from maturity of short-term investments | — | 339,110 | 208,204 | |||||||||||||||||
Proceeds from sale of Forum, excluding associated settlement | — | — | 210,521 | |||||||||||||||||
Proceeds from sale of securities investments | — | 22,079 | 7,659 | |||||||||||||||||
Investments in nonconsolidated affiliates | — | — | (1,050) | |||||||||||||||||
Proceeds from sales of nonconsolidated affiliates | — | — | 18,000 | |||||||||||||||||
Loan repayment received from subordinated debt | — | — | 58,735 | |||||||||||||||||
Cash received for notes receivable, net of payments | — | 6,328 | 3,378 | |||||||||||||||||
Other investing activities | 1,060 | 197 | 476 | |||||||||||||||||
Net cash used in investing activities | $ | (804,164) | $ | (123,183) | $ | (394,531) | ||||||||||||||
See accompanying notes to the consolidated and combined financial statements. |
MADISON SQUARE GARDEN ENTERTAINMENT CORP. | ||||||||||||||||||||
CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS (Continued) | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Years Ended June 30, | ||||||||||||||||||||
2022 | 2021 | 2020 | ||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Proceeds from issuance of term loan, net of issuance discount | $ | 725,000 | $ | 630,500 | $ | 100,000 | ||||||||||||||
Principal repayment on long-term debt | (725,000) | (46,750) | (41,250) | |||||||||||||||||
Proceeds from revolving credit facilities | 39,100 | 15,000 | — | |||||||||||||||||
Repayment of revolving credit facilities | (15,000) | — | (15,000) | |||||||||||||||||
Taxes paid in lieu of shares issued for share-based compensation | (16,658) | (8,208) | (4,290) | |||||||||||||||||
Noncontrolling interest holders’ capital contributions | 6,400 | 18,537 | 4,300 | |||||||||||||||||
Distributions to noncontrolling interest holders | (6,998) | — | (4,062) | |||||||||||||||||
Debt extinguishment costs | (12,838) | — | — | |||||||||||||||||
Share repurchase costs | — | — | (293,531) | |||||||||||||||||
Distribution to related parties associated with the settlement of certain share-based awards granted prior to the Entertainment Distribution | (2,256) | (1,771) | — | |||||||||||||||||
Purchase of noncontrolling interest from redeemable noncontrolling interest holders | (4,638) | — | — | |||||||||||||||||
Payments for debt financing costs | (17,504) | (14,623) | (3,983) | |||||||||||||||||
Net transfers from Madison Square Garden Sports Corp. and its subsidiaries | — | — | 143,950 | |||||||||||||||||
Net cash provided by (used in) financing activities | $ | (30,392) | $ | 592,685 | $ | (113,866) | ||||||||||||||
Effect of exchange rates on cash, cash equivalents and restricted cash | (750) | 8,027 | 2,927 | |||||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (693,966) | 418,835 | (197,347) | |||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 1,539,976 | 1,121,141 | 1,318,488 | |||||||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 846,010 | $ | 1,539,976 | $ | 1,121,141 | ||||||||||||||
Non-cash investing and financing activities: | ||||||||||||||||||||
Non-cash redemption of redeemable noncontrolling interests | $ | — | $ | — | $ | 37,715 | ||||||||||||||
Investments and loans to nonconsolidated affiliates | $ | 791 | $ | — | $ | — | ||||||||||||||
Non-cash contribution received from noncontrolling interests | $ | — | $ | (59,763) | $ | — | ||||||||||||||
Capital expenditures incurred but not yet paid | $ | 206,462 | $ | 110,428 | $ | 81,322 | ||||||||||||||
Tenant improvement paid by landlord | $ | — | $ | — | $ | 195 | ||||||||||||||
Share-based compensation capitalized in property and equipment, net | $ | 2,979 | $ | 5,467 | $ | 5,051 | ||||||||||||||
MADISON SQUARE GARDEN ENTERTAINMENT CORP. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONSOLIDATED AND COMBINED STATEMENTS OF EQUITY | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AND REDEEMABLE NONCONTROLLING INTERESTS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock Issued | MSG Sports Corp.’s Investment | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Loss | Total Madison Square Garden Entertainment Corp. Stockholders’ Equity | Nonredeemable Noncontrolling Interests | Total Equity | Redeemable Noncontrolling Interests | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2019 | $ | 128 | $ | 2,420,303 | $ | 9,916 | $ | (253,010) | $ | (45,624) | $ | 2,131,713 | $ | 13,790 | $ | 2,145,503 | $ | 67,627 | ||||||||||||||||||||||||||||||||||||||||||||
Net Income (loss) | — | (123,003) | — | 304,737 | — | 181,734 | (1,534) | 180,200 | (30,387) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (6,243) | (6,243) | — | (6,243) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | — | — | — | — | — | 175,491 | (1,534) | 173,957 | (30,387) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests, non-cash acquisition | — | 37,715 | — | — | — | 37,715 | — | 37,715 | (37,715) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | 31,665 | — | — | 31,665 | — | 31,665 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax withholding associated with shares issued for share-based compensation | — | — | (4,455) | — | — | (4,455) | — | (4,455) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable noncontrolling interest adjustment to redemption fair value | — | (16,939) | (3,647) | — | — | (20,586) | — | (20,586) | 20,586 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of class A common stock | — | — | (293,531) | — | — | (293,531) | — | (293,531) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustments related to the transfer of certain assets and liabilities as a result of the Entertainment Distribution | — | 49,615 | — | — | 1,394 | 51,009 | — | 51,009 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net increase in Madison Square Garden Sports Corp. Investment | — | 178,280 | — | — | — | 178,280 | — | 178,280 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Madison Square Garden Sports Corp. Investment | 210 | (2,545,971) | 2,545,761 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interest holders | — | — | — | — | — | — | 4,009 | 4,009 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interest holders | — | — | — | — | — | — | (4,062) | (4,062) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Accretion of put options | — | — | — | — | — | — | — | — | 489 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2020 | $ | 338 | $ | — | $ | 2,285,709 | $ | 51,727 | $ | (50,473) | $ | 2,287,301 | $ | 12,203 | $ | 2,299,504 | $ | 20,600 | ||||||||||||||||||||||||||||||||||||||||||||
See accompanying notes to the consolidated and combined financial statements. |
MADISON SQUARE GARDEN ENTERTAINMENT CORP. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONSOLIDATED AND COMBINED STATEMENTS OF EQUITY | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AND REDEEMABLE NONCONTROLLING INTERESTS (Continued) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock Issued | MSG Sports Corp.’s Investment | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Loss | Total Madison Square Garden Entertainment Corp. Stockholders’ Equity | Nonredeemable Noncontrolling Interests | Total Equity | Redeemable Noncontrolling Interests | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2020 | $ | 338 | $ | — | $ | 2,285,709 | $ | 51,727 | $ | (50,473) | $ | 2,287,301 | $ | 12,203 | $ | 2,299,504 | $ | 20,600 | ||||||||||||||||||||||||||||||||||||||||||||
Cumulative effect of adoption of ASU 2016-13, credit losses | — | — | — | (480) | — | (480) | — | (480) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | (148,151) | — | (148,151) | (2,099) | (150,250) | (16,269) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 20,201 | 20,201 | — | 20,201 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive loss | — | — | — | — | — | (127,950) | (2,099) | (130,049) | (16,269) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests, non-cash acquisition | — | — | — | — | — | — | — | — | 76,500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | 73,702 | — | — | 73,702 | — | 73,702 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax withholding associated with shares issued for share-based compensation | 2 | — | (8,210) | 563 | — | (7,645) | — | (7,645) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable noncontrolling interest adjustment to redemption fair value | — | — | (46,425) | — | — | (46,425) | — | (46,425) | 46,425 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustment of redeemable noncontrolling interest to redemption value | — | — | (8,728) | — | — | (8,728) | — | (8,728) | 8,728 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Distribution to related parties associated with the settlement of certain share-based awards granted prior to the Entertainment Distribution | — | — | (1,273) | — | — | (1,273) | — | (1,273) | (498) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Accretion of put options | — | — | — | — | — | — | — | — | 2,348 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Contribution from noncontrolling interest holders | — | — | — | — | — | — | 1,800 | 1,800 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2021 | $ | 340 | $ | — | $ | 2,294,775 | $ | (96,341) | $ | (30,272) | $ | 2,168,502 | $ | 11,904 | $ | 2,180,406 | $ | 137,834 | ||||||||||||||||||||||||||||||||||||||||||||
See accompanying notes to the consolidated and combined financial statements. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MADISON SQUARE GARDEN ENTERTAINMENT CORP. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONSOLIDATED AND COMBINED STATEMENTS OF EQUITY | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AND REDEEMABLE NONCONTROLLING INTERESTS (Continued) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock Issued | MSG Sports Corp.’s Investment | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Madison Square Garden Entertainment Corp. Stockholders’ Equity | Nonredeemable Noncontrolling Interests | Total Equity | Redeemable Noncontrolling Interests | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2021 | $ | 340 | $ | — | $ | 2,294,775 | $ | (96,341) | $ | (30,272) | $ | 2,168,502 | $ | 11,904 | $ | 2,180,406 | $ | 137,834 | ||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | (194,395) | — | (194,395) | (3,491) | (197,886) | 7,739 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (18,083) | (18,083) | — | (18,083) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | — | — | — | — | — | (212,478) | (3,491) | (215,969) | 7,739 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable noncontrolling interest adjustment to redemption fair value | — | — | (49,248) | — | — | (49,248) | — | (49,248) | 50,636 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | 77,772 | — | — | 77,772 | — | 77,772 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Accretion of put options | — | — | — | — | — | — | — | — | 2,348 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax withholding associated with shares issued for share-based compensation | 2 | — | (16,660) | — | — | (16,658) | — | (16,658) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Distribution to related parties associated with the settlement of certain share-based awards granted prior to the Entertainment Distribution | — | — | (1,496) | — | — | (1,496) | — | (1,496) | (760) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustment of redeemable noncontrolling interest for ownership changes | — | — | (3,173) | — | — | (3,173) | — | (3,173) | (8,070) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interest holders | — | — | — | — | — | — | 6,400 | 6,400 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interest holders | — | — | — | — | — | — | (2,650) | (2,650) | (4,640) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Put option payments | — | — | — | — | — | — | — | — | (895) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2022 | $ | 342 | $ | — | $ | 2,301,970 | $ | (290,736) | $ | (48,355) | $ | 1,963,221 | $ | 12,163 | $ | 1,975,384 | $ | 184,192 |
Years Ended June 30, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net loss | $ | (395,560 | ) | $ | (12,627 | ) | $ | (20,463 | ) | |||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||||||
Depreciation and amortization | 114,664 | 104,899 | 109,343 | |||||||||
Impairment of intangibles, long-lived assets and goodwill | 0 | 105,817 | 0 | |||||||||
Share-based compensation expense | 52,917 | 42,190 | 35,401 | |||||||||
Amortization of deferred financing costs | 4,656 | 310 | 1,212 | |||||||||
(Earnings) loss in equity method investments, net of income distributions | 6,858 | 4,433 | (6,312 | ) | ||||||||
Benefit from deferred income taxes | (480 | ) | (10,521 | ) | (371 | ) | ||||||
Unrealized and realized (gain) loss on equity investment with readily determinable fair value | (51,178 | ) | (37,628 | ) | 3,496 | |||||||
Provision for doubtful accounts / credit losses | 468 | 9,945 | 1,456 | |||||||||
Gain on sale of the Forum, excluding associated settlement | 0 | (100,288 | ) | 0 | ||||||||
Other non-cash adjustments | 4,888 | 3,200 | 727 | |||||||||
Change in assets and liabilities, net of acquisitions: | ||||||||||||
Accounts receivable, net | (25,032 | ) | 15,392 | (345 | ) | |||||||
Net related party receivables | 25,882 | (20,596 | ) | 4,387 | ||||||||
Prepaid expenses and other assets | (29,057 | ) | (21,816 | ) | (11,325 | ) | ||||||
Accounts payable | (5,268 | ) | (6,316 | ) | (4,311 | ) | ||||||
Accrued and other liabilities | 3,454 | 51,783 | 2,790 | |||||||||
Collections due to promoters | 12,623 | (35,333 | ) | (22,301 | ) | |||||||
Deferred revenue | 15,356 | 52 | 3,775 | |||||||||
Operating lease right-of-use | 10,219 | 5,195 | 4,240 | |||||||||
Net cash provided by (used in) operating activities | $ | (254,590 | ) | $ | 98,091 | $ | 101,399 | |||||
Cash flows from investing activities: | ||||||||||||
Capital expenditures, net of acquisitions | (452,154 | ) | (452,426 | ) | (184,002 | ) | ||||||
Capitalized interest | (34,890 | ) | (2,060 | ) | (9,675 | ) | ||||||
Purchase of short-term investments | 0 | (443,154 | ) | (112,693 | ) | |||||||
Proceeds from maturity of short-term investment | 339,110 | 208,204 | 0 | |||||||||
Proceeds from sale of Forum, excluding associated settlement | 0 | 210,521 | 0 | |||||||||
Proceeds from sale of equity securities | 22,079 | 7,659 | 0 | |||||||||
Investments in nonconsolidated affiliates | 0 | (1,050 | ) | (52,707 | ) | |||||||
Proceeds from sales of nonconsolidated affiliates | 0 | 18,000 | 125,750 | |||||||||
Loan repayment received from subordinated debt | 0 | 58,735 | 4,765 | |||||||||
Cash received (paid) for notes receivable | 6,328 | 3,378 | (9,176 | ) | ||||||||
Other investing activities | 197 | 476 | 0 | |||||||||
Net cash used in investing activities | $ | (119,330 | ) | $ | (391,717 | ) | $ | (237,738 | ) | |||
Years Ended June 30, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from issuance of term loan, net of issuance discount | $ | 630,500 | $ | 0 | $ | 40,000 | ||||||
Proceeds from revolving credit facility | 15,000 | 0 | 15,000 | |||||||||
Taxes paid in lieu of shares issued for equity-based compensation | (6,060 | ) | 0 | 0 | ||||||||
Noncontrolling interest holders’ capital contributions | 18,537 | 4,300 | 6,310 | |||||||||
Distributions to noncontrolling interest holders | 0 | (4,062 | ) | (2,186 | ) | |||||||
Loans from noncontrolling interest holders | 0 | 0 | 606 | |||||||||
Distribution to related parties associated with the settlement of certain share-based awards granted prior to the Entertainment Distribution | (1,771 | ) | 0 | 0 | ||||||||
Repayment of revolving credit facility | 0 | (15,000 | ) | 0 | ||||||||
Repayment on long-term debt | (8,250 | ) | (6,250 | ) | (109,312 | ) | ||||||
Payments for extinguishment of debt | 0 | 0 | (1,151 | ) | ||||||||
Payments for financing costs | (14,623 | ) | 0 | (1,488 | ) | |||||||
Net transfers from Madison Square Garden Sports Corp. and its subsidiaries | 0 | 143,950 | 43,600 | |||||||||
Net cash provided by (used in) financing activities | $ | 633,333 | $ | 122,938 | $ | (8,621 | ) | |||||
Effect of exchange rates on cash, cash equivalents and restricted cash | 8,027 | 2,927 | 4,669 | |||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 267,440 | (167,761 | ) | (140,291 | ) | |||||||
Cash, cash equivalents and restricted cash at beginning of period | 924,304 | 1,092,065 | 1,232,356 | |||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 1,191,744 | $ | 924,304 | $ | 1,092,065 | ||||||
Non-cash investing and financing activities: | ||||||||||||
Non-cash redemption of redeemable noncontrolling interests | $ | 0 | $ | 37,715 | $ | 0 | ||||||
Non-cash (contribution) received from noncontrolling interests | (59,763 | ) | 0 | 0 | ||||||||
Capital expenditures incurred but not yet paid | 106,574 | 78,508 | 31,938 | |||||||||
Tenant improvement paid by landlord | 0 | 195 | 14,528 | |||||||||
Share-based compensation capitalized in property and equipment | 5,467 | 5,051 | 3,946 |
Common Stock Issued | MSG Sports Corp.’s Investment | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Loss | Total Madison Square Garden Entertainment Corp. Stockholders’ Equity | Nonredeemable Noncontrolling Interests | Total Equity | Redeemable Noncontrolling Interests | ||||||||||||||||||||||||||||
Balance as of June 30, 2018 | $ | 0 | $ | 2,527,634 | $ | 0 | $ | 0 | $ | (46,918 | ) | $ | 2,480,716 | $ | 11,505 | $ | 2,492,221 | $ | 76,684 | |||||||||||||||||
Adoption of ASU No. 2016-01 | — | (5,570 | ) | — | — | 5,570 | — | — | — | — | ||||||||||||||||||||||||||
Adoption of ASC 606 | — | 33,669 | — | — | — | 33,669 | — | 33,669 | — | |||||||||||||||||||||||||||
Net loss | — | (8,219 | ) | — | — | — | (8,219 | ) | (4,945 | ) | (13,164 | ) | (7,299 | ) | ||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (5,575 | ) | (5,575 | ) | — | (5,575 | ) | — | ||||||||||||||||||||||||
Comprehensive loss | — | — | — | — | — | (13,794 | ) | (4,945 | ) | (18,739 | ) | (7,299 | ) | |||||||||||||||||||||||
Net increase in Madison Square Garden Sports Corp. Investment | — | 82,947 | — | — | — | 82,947 | — | 82,947 | — | |||||||||||||||||||||||||||
Contributions from noncontrolling interest holders | — | — | — | — | — | — | 8,446 | 8,446 | — | |||||||||||||||||||||||||||
Distributions to noncontrolling interest holders | — | — | — | — | — | — | (428 | ) | (428 | ) | (1,758 | ) | ||||||||||||||||||||||||
Adjustments to noncontrolling interests | — | 788 | — | — | — | 788 | (788 | ) | — | — | ||||||||||||||||||||||||||
Balance as of June 30, 2019 | $ | 0 | $ | 2,631,249 | $ | 0 | $ | 0 | $ | (46,923 | ) | $ | 2,584,326 | $ | 13,790 | $ | 2,598,116 | $ | 67,627 | |||||||||||||||||
Common Stock Issued | MSG Sports Corp.’s Investment | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Madison Square Garden Entertainment Corp. Stockholders’ Equity | Nonredeemable Noncontrolling Interests | Total Equity | Redeemable Noncontrolling Interests | ||||||||||||||||||||||||||||
Balance as of June 30, 2019 | $ | 0 | $ | 2,631,249 | $ | 0 | $ | 0 | $ | (46,923 | ) | $ | 2,584,326 | $ | 13,790 | $ | 2,598,116 | $ | 67,627 | |||||||||||||||||
Net loss | — | (123,003 | ) | — | 142,297 | — | 19,294 | (1,534 | ) | 17,760 | (30,387 | ) | ||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (6,328 | ) | (6,328 | ) | — | (6,328 | ) | — | ||||||||||||||||||||||||
Comprehensive income (loss) | — | — | — | — | — | 12,966 | (1,534 | ) | 11,432 | (30,387 | ) | |||||||||||||||||||||||||
Share-based compensation | — | — | 12,430 | — | — | 12,430 | — | 12,430 | — | |||||||||||||||||||||||||||
Accretion of put options | — | — | — | — | — | — | — | — | 489 | |||||||||||||||||||||||||||
Tax withholding associated with shares issued for equity-based compensation | — | — | (165 | ) | — | — | (165 | ) | — | (165 | ) | — | ||||||||||||||||||||||||
Net increase in Madison Square Garden Sports Corp. Investment | — | 178,280 | — | — | — | 178,280 | — | 178,280 | — | |||||||||||||||||||||||||||
Redeemable noncontrolling interest adjustment to redemption fair value | — | (16,939 | ) | (3,647 | ) | — | — | (20,586 | ) | — | (20,586 | ) | 20,586 | |||||||||||||||||||||||
Adjustments related to the transfer of certain assets and liabilities as a result of the Entertainment Distribution | — | 49,615 | — | — | 1,394 | 51,009 | — | 51,009 | — | |||||||||||||||||||||||||||
Conversion of Madison Square Garden Sports Corp. Investment | 240 | (2,756,917 | ) | 2,756,677 | — | — | — | — | — | — | ||||||||||||||||||||||||||
Distributions to noncontrolling interest holders | — | — | — | — | — | — | (4,062 | ) | (4,062 | ) | — | |||||||||||||||||||||||||
Noncontrolling interests from acquisition | — | 37,715 | — | — | — | 37,715 | — | 37,715 | (37,715 | ) | ||||||||||||||||||||||||||
Contribution from noncontrolling interest holders | — | — | — | — | — | — | 4,009 | 4,009 | — | |||||||||||||||||||||||||||
Balance as of June 30, 2020 | $ | 240 | $ | 0 | $ | 2,765,295 | $ | 142,297 | $ | (51,857 | ) | $ | 2,855,975 | $ | 12,203 | $ | 2,868,178 | $ | 20,600 | |||||||||||||||||
Common Stock Issued | MSG Sports Corp.’s Investment | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Loss | Total Madison Square Garden Entertainment Corp. Stockholders’ Equity | Nonredeemable Noncontrolling Interests | Total Equity | Redeemable Noncontrolling Interests | ||||||||||||||||||||||||||||
Balance as of June 30, 2020 | $ | 240 | $ | — | $ | 2,765,295 | $ | 142,297 | $ | (51,857 | ) | $ | 2,855,975 | $ | 12,203 | $ | 2,868,178 | $ | 20,600 | |||||||||||||||||
Net loss | — | — | — | (377,192 | ) | — | (377,192 | ) | (2,099 | ) | (379,291 | ) | (16,269 | ) | ||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 24,737 | 24,737 | — | 24,737 | — | |||||||||||||||||||||||||||
Comprehensive loss | — | — | — | — | — | (352,455 | ) | (2,099 | ) | (354,554 | ) | (16,269 | ) | |||||||||||||||||||||||
Redeemable noncontrolling interests, non-cash acquisition | — | — | — | — | — | — | — | — | 76,500 | |||||||||||||||||||||||||||
Redeemable noncontrolling interest adjustment to redemption fair value | — | — | (46,425 | ) | — | — | (46,425 | ) | — | (46,425 | ) | 46,425 | ||||||||||||||||||||||||
Share-based compensation | — | — | 56,035 | — | — | 56,035 | — | 56,035 | — | |||||||||||||||||||||||||||
Accretion of put options | — | — | — | — | — | — | — | — | 2,348 | |||||||||||||||||||||||||||
Tax withholding associated with shares issued for equity-based compensation | 1 | — | (6,061 | ) | — | — | (6,060 | ) | — | (6,060 | ) | — | ||||||||||||||||||||||||
Distribution to related parties associated with the settlement of certain share-based awards granted prior to the Entertainment Distribution | — | — | (1,273 | ) | — | — | (1,273 | ) | — | (1,273 | ) | (498 | ) | |||||||||||||||||||||||
Adjustment of redeemable noncontrolling interest to redemption value | — | — | (8,728 | ) | — | — | (8,728 | ) | — | (8,728 | ) | 8,728 | ||||||||||||||||||||||||
Contributions from noncontrolling interest holders | — | — | — | — | — | — | 1,800 | 1,800 | — | |||||||||||||||||||||||||||
Balance as of June 30, 2021 | $ | 241 | $ | — | $ | 2,758,843 | $ | (234,895 | ) | $ | (27,120 | ) | $ | 2,497,069 | $ | 11,904 | $ | 2,508,973 | $ | 137,834 | ||||||||||||||||
Estimated Useful Lives | ||||||||||||||||||||
Buildings | Up to 40 years | |||||||||||||||||||
Equipment | 1 year to 30 years | |||||||||||||||||||
Aircraft | 20 years | |||||||||||||||||||
Furniture and fixtures | 1 year to 10 years | |||||||||||||||||||
Leasehold improvements | Shorter of term of lease or useful life of improvement |
Estimated Useful Lives | ||||||||||||||
Trade names | 2 years to 25 years | |||||||||||||
Venue management contracts | 5.67 years to 20 years | |||||||||||||
Affiliate relationships | 24 years | |||||||||||||
Non-compete agreements | 5.75 years | |||||||||||||
Festival rights | 7 years | |||||||||||||
Other intangibles | 15 years |
Fair Value (a) | ||||
Cash and cash equivalents | $ | 16,737 | ||
Property and equipment, net | 33,393 | |||
Right-of-use | 44,818 | |||
Amortizable intangible assets, net | 47,170 | |||
Other assets | 12,641 | |||
Accrued expenses and other current liabilities | (15,957 | ) | ||
Operating lease liabilities | (52,025 | ) | ||
Other liabilities | (13,655 | ) | ||
Total identifiable net assets acquired | 73,122 | |||
Goodwill (a) | 3,378 | |||
Redeemable noncontrolling interests (b) | $ | (76,500 | ) |
Estimated Useful Lives | ||||||||||||||||||||
Buildings | Up to 40 years | |||||||||||||||||||
Equipment | 1 year to 30 years | |||||||||||||||||||
Aircraft | 20 years | |||||||||||||||||||
Furniture and fixtures | 1 year to 10 years | |||||||||||||||||||
Leasehold improvements | Shorter of term of lease or useful life of improvement |
Estimated Useful Lives | ||||||||||||||
Trade names | 2 years to 25 years | |||||||||||||
Venue management contracts | 5.67 years to 20 years | |||||||||||||
Affiliate relationships | 24 years | |||||||||||||
Non-compete agreements | 5.75 years | |||||||||||||
Festival rights | 7 years | |||||||||||||
Other intangibles | 15 years |
Estimated Useful Lives | ||||||||||||||||||||
Buildings | Up to 40 years | |||||||||||||||||||
Equipment | 1 year to 30 years | |||||||||||||||||||
Aircraft | 20 years | |||||||||||||||||||
Furniture and fixtures | 1 year to 10 years | |||||||||||||||||||
Leasehold improvements | Shorter of term of lease or useful life of improvement |
Estimated Useful Lives | ||||||||||||||
Trade names | 2 years to 25 years | |||||||||||||
Venue management contracts | 5.67 years to 20 years | |||||||||||||
Affiliate relationships | 24 years | |||||||||||||
Non-compete agreements | 5.75 years | |||||||||||||
Festival rights | 7 years | |||||||||||||
Other intangibles | 15 years |
Fair Value Recognized as of Acquisition Date | Measurement Period Adjustment (a) | Fair Value Recognized as adjusted | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 16,737 | $ | — | $ | 16,737 | ||||||||||||||||||||
Property and equipment, net | 33,393 | — | 33,393 | |||||||||||||||||||||||
Right-of-use lease assets | 44,818 | — | 44,818 | |||||||||||||||||||||||
Amortizable intangible assets, net | 47,170 | (7,020) | 40,150 | |||||||||||||||||||||||
Other assets | 12,641 | — | 12,641 | |||||||||||||||||||||||
Accrued expenses and other current liabilities | (15,957) | 1,534 | (14,423) | |||||||||||||||||||||||
Operating lease liabilities | (52,025) | — | (52,025) | |||||||||||||||||||||||
Other liabilities | (13,655) | — | (13,655) | |||||||||||||||||||||||
Total identifiable net assets acquired | 73,122 | (5,486) | 67,636 | |||||||||||||||||||||||
Goodwill | 3,378 | (2,014) | 1,364 | |||||||||||||||||||||||
Redeemable noncontrolling interests | $ | (76,500) | $ | 7,500 | $ | (69,000) |
Year ended June 30, 2021 | ||||||||||||||||
Entertainment | Tao Group Hospitality | Eliminations | Total | |||||||||||||
Event-related and entertainment dining and nightlife offerings (a) | $ | 14,062 | $ | 84,325 | $ | (1,522 | ) | $ | 96,865 | |||||||
Sponsorship, signage and suite licenses (b) | 16,308 | 4,736 | (207 | ) | 20,837 | |||||||||||
Other (c) | 27,586 | 11,105 | (317 | ) | 38,374 | |||||||||||
Total revenues from contracts with customers | $ | 57,956 | $ | 100,166 | $ | (2,046 | ) | $ | 156,076 | |||||||
Year Ended June 30, 2022 | ||||||||||||||||||||||||||||||||
Entertainment | MSG Networks | Tao Group Hospitality | Eliminations | Total | ||||||||||||||||||||||||||||
Event-related and entertainment dining and nightlife offerings (a) | $ | 386,309 | $ | — | $ | 438,608 | $ | (880) | $ | 824,037 | ||||||||||||||||||||||
Sponsorship, signage and suite licenses (b) | 156,387 | 6,470 | 4,521 | (1,438) | 165,940 | |||||||||||||||||||||||||||
Media related, primarily from affiliation agreements (b) | — | 596,693 | — | — | 596,693 | |||||||||||||||||||||||||||
Other (c) | 39,417 | 4,992 | 41,818 | (21,558) | 64,669 | |||||||||||||||||||||||||||
Total revenues from contracts with customers | $ | 582,113 | $ | 608,155 | $ | 484,947 | $ | (23,876) | $ | 1,651,339 |
Year Ended June 30, 2021 | ||||||||||||||||||||||||||||||||
Entertainment | MSG Networks | Tao Group Hospitality | Eliminations | Total | ||||||||||||||||||||||||||||
Event-related and entertainment dining and nightlife offerings (a) | $ | 14,062 | $ | — | $ | 84,325 | $ | (1,522) | $ | 96,865 | ||||||||||||||||||||||
Sponsorship, signage and suite licenses (b) | 16,308 | 4,022 | 4,736 | (207) | 24,859 | |||||||||||||||||||||||||||
Media related, primarily from affiliation agreements (b) | — | 639,470 | — | — | 639,470 | |||||||||||||||||||||||||||
Other (c) | 27,586 | 4,018 | 11,105 | (14,015) | 28,694 | |||||||||||||||||||||||||||
Total revenues from contracts with customers | $ | 57,956 | $ | 647,510 | $ | 100,166 | $ | (15,744) | $ | 789,888 |
Year Ended June 30, 2020 | ||||||||||||||||||||||||||||||||
Entertainment | MSG Networks | Tao Group Hospitality | Eliminations | Total | ||||||||||||||||||||||||||||
Event-related and entertainment dining and nightlife offerings (a) | $ | 390,691 | $ | — | $ | 161,663 | $ | (507) | $ | 551,847 | ||||||||||||||||||||||
Sponsorship, signage and suite licenses (b) | 176,798 | 5,196 | 1,640 | (1,091) | 182,543 | |||||||||||||||||||||||||||
Media related, primarily from affiliation agreements (b) | — | 677,297 | — | — | 677,297 | |||||||||||||||||||||||||||
Other (c) | 17,719 | 3,304 | 16,898 | (13,590) | 24,331 | |||||||||||||||||||||||||||
Total revenues from contracts with customers | $ | 585,208 | $ | 685,797 | $ | 180,201 | $ | (15,188) | $ | 1,436,018 |
Year ended June 30, 2020 | ||||||||||||||||
Entertainment | Tao Group Hospitality | Eliminations | Total | |||||||||||||
Event-related and entertainment dining and nightlife offerings (a) | $ | 390,691 | $ | 161,663 | $ | (507 | ) | $ | 551,847 | |||||||
Sponsorship, signage and suite licenses (b) | 176,798 | 1,640 | (1,091 | ) | 177,347 | |||||||||||
Other (c) | 17,719 | 16,898 | (875 | ) | 33,742 | |||||||||||
Total revenues from contracts with customers | $ | 585,208 | $ | 180,201 | $ | (2,473 | ) | $ | 762,936 | |||||||
Year ended June 30, 2019 | ||||||||||||||||
Entertainment | Tao Group Hospitality | Eliminations | Total | |||||||||||||
Event-related and entertainment dining and nightlife offerings (a) | $ | 529,737 | $ | 234,205 | $ | (852 | ) | $ | 763,090 | |||||||
Sponsorship, signage and suite licenses (b) | 243,843 | 1,788 | (873 | ) | 244,758 | |||||||||||
Other (c) | 23,478 | 17,658 | (75 | ) | 41,061 | |||||||||||
Total revenues from contracts with customers | $ | 797,058 | $ | 253,651 | $ | (1,800 | ) | $ | 1,048,909 | |||||||
(c)Primarily consists |
Year ended June 30, 2021 | Year Ended June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Entertainment (d) | Tao Group Hospitality | Eliminations | Total (d) | Entertainment | MSG Networks | Tao Group Hospitality | Eliminations | Total (d) | ||||||||||||||||||||||||||||||||||||||||
Ticketing and venue license fee revenues (a) | $ | 8,311 | $ | 0 | $ | 0 | $ | 8,311 | Ticketing and venue license fee revenues (a) | $ | 250,092 | $ | — | $ | — | $ | — | $ | 250,092 | |||||||||||||||||||||||||||||
Sponsorship and signage, suite, and advertising commission revenues (b) | 43,723 | 0 | (207 | ) | 43,516 | Sponsorship and signage, suite, and advertising commission revenues (b) | 219,113 | — | — | (22,315) | 196,798 | |||||||||||||||||||||||||||||||||||||
Revenues from entertainment dining and nightlife offerings (c) | 0 | 100,166 | (1,839 | ) | 98,327 | Revenues from entertainment dining and nightlife offerings (c) | — | — | 484,947 | (1,561) | 483,386 | |||||||||||||||||||||||||||||||||||||
Food, beverage and merchandise revenues | 3,078 | 0 | 0 | 3,078 | Food, beverage and merchandise revenues | 109,915 | — | — | — | 109,915 | ||||||||||||||||||||||||||||||||||||||
Media networks revenues (d) | Media networks revenues (d) | — | 608,155 | — | — | 608,155 | ||||||||||||||||||||||||||||||||||||||||||
Other | 2,844 | 0 | 0 | 2,844 | Other | 2,993 | — | — | — | 2,993 | ||||||||||||||||||||||||||||||||||||||
Total revenues from contracts with customers | $ | 57,956 | $ | 100,166 | $ | (2,046 | ) | $ | 156,076 | Total revenues from contracts with customers | $ | 582,113 | $ | 608,155 | $ | 484,947 | $ | (23,876) | $ | 1,651,339 | ||||||||||||||||||||||||||||
Year ended June 30, 2020 | ||||||||||||||||
Entertainment | Tao Group Hospitality | Eliminations | Total | |||||||||||||
Ticketing and venue license fee revenues (a) | $ | 310,971 | $ | 0 | $ | 0 | $ | 310,971 | ||||||||
Sponsorship and signage, suite, and advertising commission revenues (b) | 200,092 | 0 | (1,091 | ) | 199,001 | |||||||||||
Revenues from entertainment dining and nightlife offerings (c) | 0 | 180,201 | (1,382 | ) | 178,819 | |||||||||||
Food, beverage and merchandise revenues | 62,341 | 0 | 0 | 62,341 | ||||||||||||
Other | 11,804 | 0 | 0 | 11,804 | ||||||||||||
Total revenues from contracts with customers | $ | 585,208 | $ | 180,201 | $ | (2,473 | ) | $ | 762,936 | |||||||
Year Ended June 30, 2021 | ||||||||||||||||||||||||||||||||
Entertainment | MSG Networks | Tao Group Hospitality | Eliminations | Total | ||||||||||||||||||||||||||||
Ticketing and venue license fee revenues (a) | $ | 8,311 | $ | — | $ | — | $ | — | $ | 8,311 | ||||||||||||||||||||||
Sponsorship and signage, suite, and advertising commission revenues (b) | 43,723 | — | — | (13,905) | 29,818 | |||||||||||||||||||||||||||
Revenues from entertainment dining and nightlife offerings (c) | — | — | 100,166 | (1,839) | 98,327 | |||||||||||||||||||||||||||
Food, beverage and merchandise revenues | 3,078 | — | — | — | 3,078 | |||||||||||||||||||||||||||
Media networks revenues (d) | — | 647,510 | — | — | 647,510 | |||||||||||||||||||||||||||
Other | 2,844 | — | — | — | 2,844 | |||||||||||||||||||||||||||
Total revenues from contracts with customers | $ | 57,956 | $ | 647,510 | $ | 100,166 | $ | (15,744) | $ | 789,888 |
Year ended June 30, 2019 | ||||||||||||||||
Entertainment | Tao Group Hospitality | Eliminations | Total | |||||||||||||
Ticketing and venue license fee revenues (a) | $ | 420,285 | $ | 0 | $ | 0 | $ | 420,285 | ||||||||
Sponsorship and signage, suite, and advertising commission revenues (b) | 266,204 | 0 | (873 | ) | 265,331 | |||||||||||
Revenues from entertainment dining and nightlife offerings (c) | 0 | 253,651 | (927 | ) | 252,724 | |||||||||||
Food, beverage and merchandise revenues | 83,307 | 0 | 0 | 83,307 | ||||||||||||
Other | 27,262 | 0 | 0 | 27,262 | ||||||||||||
Total revenues from contracts with customers | $ | 797,058 | $ | 253,651 | $ | (1,800 | ) | $ | 1,048,909 | |||||||
Year Ended June 30, 2020 | ||||||||||||||||||||||||||||||||
Entertainment | MSG Networks | Tao Group Hospitality | Eliminations | Total | ||||||||||||||||||||||||||||
Ticketing and venue license fee revenues (a) | $ | 310,971 | $ | — | $ | — | $ | — | $ | 310,971 | ||||||||||||||||||||||
Sponsorship and signage, suite, and advertising commission revenues (b) | 200,092 | — | — | (13,806) | 186,286 | |||||||||||||||||||||||||||
Revenues from entertainment dining and nightlife offerings (c) | — | — | 180,201 | (1,382) | 178,819 | |||||||||||||||||||||||||||
Food, beverage and merchandise revenues | 62,341 | — | — | — | 62,341 | |||||||||||||||||||||||||||
Media networks revenues (d) | — | 685,797 | — | — | 685,797 | |||||||||||||||||||||||||||
Other | 11,804 | — | — | — | 11,804 | |||||||||||||||||||||||||||
Total revenues from contracts with customers | $ | 585,208 | $ | 685,797 | $ | 180,201 | $ | (15,188) | $ | 1,436,018 |
(d)Primarily consists of affiliation fees from Distributors and, to a lesser extent, advertising revenues through the sale of commercial time and other advertising inventory during MSG Networks programming. |
June 30, | ||||||||||||||||||||
2022 | 2021 | 2020 | ||||||||||||||||||
Receivables from contracts with customers, net (a) | $ | 215,261 | $ | 185,112 | $ | 165,377 | ||||||||||||||
Contract assets, current (b) | 5,503 | 7,052 | 3,850 | |||||||||||||||||
Contract assets, non-current (b) | 756 | 87 | 37 | |||||||||||||||||
Deferred revenue, including non-current portion (c) | 228,703 | 210,187 | 195,865 |
June 30, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Receivables from contracts with customers, net (a) | $ | 86,454 | $ | 59,828 | $ | 81,170 | ||||||
Contract assets, current (b) | 7,052 | 3,850 | 6,873 | |||||||||
Deferred revenue, including non-current portion(c) | 210,037 | 193,112 | 197,047 |
Fiscal year ending June 30, 2023 | $ | 189,499 | ||||||
Fiscal year ending June 30, 2024 | 156,589 | |||||||
Fiscal year ending June 30, 2025 | 117,658 | |||||||
Fiscal year ending June 30, 2026 | 81,560 | |||||||
Fiscal year ending June 30, 2027 | 43,707 | |||||||
Thereafter | 48,947 | |||||||
$ | 637,960 |
Fiscal year ending June 30, 2022 | $ | 101,393 | ||
Fiscal year ending June 30, 2023 | 96,749 | |||
Fiscal year ending June 30, 2024 | 77,948 | |||
Fiscal year ending June 30, 2025 | 55,945 | |||
Fiscal year ending June 30, 2026 | 43,180 | |||
Thereafter | 57,245 | |||
$ | 432,460 | |||
June 30, 2020 | $ | 0 | ||
Restructuring charges | 21,299 | |||
Payments | (21,118 | ) | ||
June 30, 2021 | $ | 181 | ||
Years Ended June 30, | ||||||||||||||||||||
2022 | 2021 | 2020 | ||||||||||||||||||
Net income (loss) available to Madison Square Garden Entertainment Corp.’s stockholders (numerator): | ||||||||||||||||||||
Net income (loss) attributable to Madison Square Garden Entertainment Corp.’s stockholders per statement of operations | $ | (194,395) | $ | (148,151) | $ | 181,734 | ||||||||||||||
Adjustment of redeemable noncontrolling interest to redemption value | (3,173) | (8,728) | — | |||||||||||||||||
Net income (loss) attributable to Madison Square Garden Entertainment Corp.’s stockholders for EPS: | $ | (197,568) | $ | (156,879) | $ | 181,734 | ||||||||||||||
Weighted-average shares (denominator): | ||||||||||||||||||||
Weighted-average shares for basic EPS | 34,255 | 34,077 | 34,864 | |||||||||||||||||
Dilutive effect of shares issuable under share-based compensation plans (a) | — | — | 78 | |||||||||||||||||
Weighted-average shares for diluted EPS | 34,255 | 34,077 | 34,942 | |||||||||||||||||
Weighted-average anti-dilutive shares (a) | — | — | 1,002 | |||||||||||||||||
EPS: | ||||||||||||||||||||
Basic earnings (loss) per common share attributable to Madison Square Garden Entertainment Corp.’s stockholders | $ | (5.77) | $ | (4.60) | $ | 5.21 | ||||||||||||||
Diluted earnings (loss) per common share attributable to Madison Square Garden Entertainment Corp.’s stockholders | $ | (5.77) | $ | (4.60) | $ | 5.20 |
Years Ended June 30, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Net income (loss) available to Madison Square Garden Entertainment Corp.’s stockholders (numerator): | ||||||||||||
Net income (loss) attributable to Madison Square Garden Entertainment Corp.’s stockholders per statement of operations | $ | (377,192 | ) | $ | 19,294 | $ | (8,219 | ) | ||||
Adjustment of redeemable noncontrolling interest to redemption value | (8,728 | ) | 0 | 0 | ||||||||
Net income (loss) attributable to Madison Square Garden Entertainment Corp.’s stockholders for EPS: | $ | (385,920 | ) | $ | 19,294 | $ | (8,219 | ) | ||||
Weighted-average shares (denominator): | ||||||||||||
Weighted-average shares for basic EPS (a) | 24,205 | 23,998 | 23,992 | |||||||||
Dilutive effect of shares issuable under share-based compensation plans (a) | 0 | 19 | 0 | |||||||||
Weighted-average shares for diluted EPS (a) | 24,205 | 24,017 | 23,992 | |||||||||
Weighted-average anti-dilutive shares (b) | 0 | 522 | 0 | |||||||||
EPS: | ||||||||||||
Basic earnings (loss) per common share attributable to Madison Square Garden Entertainment Corp.’s stockholders | $ | (15.95 | ) | $ | 0.81 | $ | (0.35 | ) | ||||
Diluted earnings (loss) per common share attributable to Madison Square Garden Entertainment Corp.’s stockholders | $ | (15.95 | ) | $ | 0.81 | $ | (0.35 | ) | ||||
As of | ||||||||||||||||||||||||||
June 30, 2022 | June 30, 2021 | |||||||||||||||||||||||||
Captions on the consolidated balance sheets: | ||||||||||||||||||||||||||
Cash and cash equivalents | $ | 828,540 | $ | 1,516,992 | ||||||||||||||||||||||
Restricted cash | 17,470 | 22,984 | ||||||||||||||||||||||||
Cash and cash equivalents, and restricted cash on the consolidated and combined statements of cash flows | $ | 846,010 | $ | 1,539,976 |
As of | ||||||||||||||||
June 30, 2021 | June 30, 2020 | June 30, 2019 | June 30, 2018 | |||||||||||||
Captions on the consolidated and combined balance sheets: | ||||||||||||||||
Cash and cash equivalents | $ | 1,168,760 | $ | 906,555 | $ | 1,082,055 | $ | 1,225,645 | ||||||||
Restricted cash | 22,984 | 17,749 | 10,010 | 6,711 | ||||||||||||
Cash, cash equivalents and restricted cash on the consolidated and combined statements of cash flows | $ | 1,191,744 | $ | 924,304 | $ | 1,092,065 | $ | 1,232,356 | ||||||||
As of | |||||||||||||||||||||||
June 30, 2022 | June 30, 2021 | ||||||||||||||||||||||
Prepaid insurance | $ | 10,492 | $ | 9,175 | |||||||||||||||||||
Prepaid revenue sharing expense | 43,291 | 32,661 | |||||||||||||||||||||
Other prepaid expenses | 32,239 | 28,422 | |||||||||||||||||||||
Deferred production costs — Christmas Spectacular and other productions | 7,397 | 4,541 | |||||||||||||||||||||
Inventory (a) | 13,511 | 9,521 | |||||||||||||||||||||
Contract assets (b) | 5,574 | 7,126 | |||||||||||||||||||||
Other | 10,949 | 24,785 | |||||||||||||||||||||
Total prepaid expenses and other current assets | $ | 123,453 | $ | 116,231 |
Ownership Percentage | Investment | Ownership Percentage | Investment | ||||||||||||||||||||||||||||||||||
June 30, 2021 | |||||||||||||||||||||||||||||||||||||
June 30, 2022 | June 30, 2022 | ||||||||||||||||||||||||||||||||||||
Equity method investments: | Equity method investments: | ||||||||||||||||||||||||||||||||||||
SACO Technologies Inc. (“SACO”) | 30 | % | $ | 36,265 | SACO Technologies Inc. (“SACO”) | 30% | $ | 31,448 | |||||||||||||||||||||||||||||
Others | 6,204 | Others | 5,248 | ||||||||||||||||||||||||||||||||||
Equity investments without readily determinable fair values (a) | 3,500 | Equity investments without readily determinable fair values (a) | 7,108 | ||||||||||||||||||||||||||||||||||
Total investments in nonconsolidated affiliates | $ | 45,969 | Total investments in nonconsolidated affiliates | $ | 43,804 | ||||||||||||||||||||||||||||||||
June 30, 2020 | |||||||||||||||||||||||||||||||||||||
June 30, 2021 | June 30, 2021 | ||||||||||||||||||||||||||||||||||||
Equity method investments: | Equity method investments: | ||||||||||||||||||||||||||||||||||||
SACO | 30 | % | $ | 40,461 | SACO | 30% | $ | 36,265 | |||||||||||||||||||||||||||||
Others | 8,661 | Others | 6,204 | ||||||||||||||||||||||||||||||||||
Equity investments without readily determinable fair values (a) (b) (c) | 3,500 | ||||||||||||||||||||||||||||||||||||
Equity investments without readily determinable fair values (a) | Equity investments without readily determinable fair values (a) | 6,752 | |||||||||||||||||||||||||||||||||||
Total investments in nonconsolidated affiliates | $ | 52,622 | Total investments in nonconsolidated affiliates | $ | 49,221 | ||||||||||||||||||||||||||||||||
June 30, | ||||||||
2021 | 2020 | |||||||
Balance, beginning of period | $ | 3,500 | $ | 13,867 | ||||
Transfer out of Level III to Level I for investment in DraftKings | 0 | (9,834 | ) | |||||
Impairment charge | 0 | (533 | ) | |||||
Balance, end of period | $ | 3,500 | $ | 3,500 | ||||
Balance as of June 30, 2022 | ||||||||||||||||||||
Equity Investment with Readily Determinable Fair Values | Shares Held | Cost Basis | Carrying Value / Fair Value | |||||||||||||||||
Townsquare Class A common stock | 583 | $ | 4,221 | $ | 4,776 | |||||||||||||||
Townsquare Class C common stock | 2,625 | 19,001 | 21,499 | |||||||||||||||||
DraftKings Class A common stock | 869 | 6,036 | 10,146 | |||||||||||||||||
Total | $ | 29,258 | $ | 36,421 |
Balance as of June 30, 2021 | ||||||||||||
Equity Investment with Readily Determinable Fair Values | Units / Shares Held | Cost Basis | Carrying value / Fair value | |||||||||
Townsquare Class A common stock | 583 | $ | 4,221 | $ | 7,435 | |||||||
Townsquare Class C common stock | 2,625 | 19,001 | 33,469 | |||||||||
DraftKings, common stock | 869 | 6,036 | 45,360 | |||||||||
Total | $ | 29,258 | $ | 86,264 | ||||||||
Balance as of June 30, 2020 | Balance as of June 30, 2021 | |||||||||||||||||||||||||||||||
Equity Investment with Readily Determinable Fair Value | Units / Shares Held | Cost Basis | Carrying value / fair value | Equity Investment with Readily Determinable Fair Value | Shares Held | Cost Basis | Carrying Value / Fair Value | |||||||||||||||||||||||||
Townsquare Class A common stock | 3,208 | $ | 23,222 | $ | 14,340 | Townsquare Class A common stock | 583 | $ | 4,221 | $ | 7,435 | |||||||||||||||||||||
DraftKings, common stock | 1,280 | 8,798 | 42,589 | |||||||||||||||||||||||||||||
DraftKings, warrant | 9 | 22 | 132 | |||||||||||||||||||||||||||||
Townsquare Class C common stock | Townsquare Class C common stock | 2,625 | 19,001 | 33,469 | ||||||||||||||||||||||||||||
DraftKings Class A common stock | DraftKings Class A common stock | 869 | 6,036 | 45,360 | ||||||||||||||||||||||||||||
Total | $ | 32,042 | $ | 57,061 | Total | $ | 29,258 | $ | 86,264 | |||||||||||||||||||||||
June 30, | ||||||||||||||||||||
2022 | 2021 | 2020 | ||||||||||||||||||
Unrealized gain (loss) — Townsquare | $ | (14,629) | $ | 26,563 | $ | (2,920) | ||||||||||||||
Unrealized gain (loss)— DraftKings | (35,213) | 26,942 | 34,197 | |||||||||||||||||
Realized gain (loss) — DraftKings | — | (2,327) | 6,351 | |||||||||||||||||
$ | (49,842) | $ | 51,178 | $ | 37,628 | |||||||||||||||
Supplemental information on realized gain (loss): | ||||||||||||||||||||
Shares of common stock sold — DraftKings | — | 420 | 197 | |||||||||||||||||
Cash proceeds from common stock sold — DraftKings | $ | — | $ | 22,079 | $ | 7,659 |
June 30, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Unrealized gain (loss) — Townsquare | $ | 26,563 | $ | (2,920 | ) | $ | (3,497 | ) | ||||
Unrealized gain — DraftKings | 26,942 | 34,197 | 0 | |||||||||
Realized gain (loss) — DraftKings | (2,327 | ) | 6,351 | 0 | ||||||||
$ | 51,178 | $ | 37,628 | $ | (3,497 | ) | ||||||
Supplemental information on realized gain (loss): | ||||||||||||
Shares of common stock sold — DraftKings | 420 | 197 | 0 | |||||||||
Cash proceeds from common stock sold — DraftKings | $ | 22,079 | $ | 7,659 | $ | 0 |
June 30, | |||||||||||||||||
2022 | 2021 | ||||||||||||||||
Land | $ | 140,239 | $ | 150,750 | |||||||||||||
Buildings | 997,345 | 996,295 | |||||||||||||||
Equipment | 437,177 | 405,835 | |||||||||||||||
Aircraft | 38,090 | 38,090 | |||||||||||||||
Furniture and fixtures | 39,863 | 40,660 | |||||||||||||||
Leasehold improvements | 232,819 | 214,678 | |||||||||||||||
Construction in progress (a) | 2,031,972 | 1,194,525 | |||||||||||||||
3,917,505 | 3,040,833 | ||||||||||||||||
Less accumulated depreciation and amortization | (978,453) | (884,541) | |||||||||||||||
$ | 2,939,052 | $ | 2,156,292 |
June 30, | ||||||||||
2021 | 2020 | Estimated Useful Lives | ||||||||
Land | $ | 150,750 | $ | 141,638 | ||||||
Buildings | 996,295 | 993,206 | Up to 40 years | |||||||
Equipment | 378,086 | 345,314 | 1 year to 20 years | |||||||
Aircraft | 38,090 | 38,090 | 20 years | |||||||
Furniture and fixtures | 38,896 | 42,389 | 1 year to 7 years | |||||||
Leasehold improvements | 196,273 | 170,585 | Shorter of term of lease or useful life of improvement | |||||||
Construction in progress (a) | 1,194,110 | 699,720 | ||||||||
2,992,500 | 2,430,942 | |||||||||
Less accumulated depreciation and amortization | (843,925 | ) | (770,489 | ) | ||||||
$ | 2,148,575 | $ | 1,660,453 | |||||||
Line Item in the Company’s Consolidated Balance Sheets | June 30, 2022 | June 30, 2021 | ||||||||||||||||||||||||
Right-of-use assets: | ||||||||||||||||||||||||||
Operating leases | Right-of-use lease assets | $ | 446,499 | $ | 280,579 | |||||||||||||||||||||
Lease liabilities: | ||||||||||||||||||||||||||
Operating leases, current | Operating lease liabilities, current | 65,310 | 73,423 | |||||||||||||||||||||||
Operating leases, noncurrent | Operating lease liabilities, non-current | 427,971 | 233,556 | |||||||||||||||||||||||
Total lease liabilities | $ | 493,281 | $ | 306,979 |
Line Item in the Company’s Consolidated and Combined Statements of Operations | Years Ended June 30, | |||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | ||||||||||||||||||||||||||||||
Operating lease cost | Direct operating expenses | $ | 43,023 | $ | 31,074 | $ | 32,348 | |||||||||||||||||||||||||
Operating lease cost | Selling, general and administrative expenses | 30,053 | 26,438 | 25,081 | ||||||||||||||||||||||||||||
Short-term lease cost | Direct operating expenses | — | — | 348 | ||||||||||||||||||||||||||||
Variable lease cost | Direct operating expenses | 7,567 | 2,930 | 5,339 | ||||||||||||||||||||||||||||
Variable lease cost | Selling, general and administrative expenses | 61 | 57 | 61 | ||||||||||||||||||||||||||||
Total lease cost | $ | 80,704 | $ | 60,499 | $ | 63,177 |
Fiscal Year 2022 | $ | — | ||||||
Fiscal Year 2023 | — | |||||||
Fiscal Year 2024 | — | |||||||
Fiscal Year 2025 | 10,121 | |||||||
Fiscal Year 2026 | 16,276 | |||||||
Thereafter (Fiscal Year 2027 to Fiscal Year 2046) | 877,996 | |||||||
Total lease payments | $ | 904,393 |
Years Ended June 30, | ||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | ||||||||||||||||||||||||||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 71,660 | $ | 55,271 | $ | 60,920 | ||||||||||||||||||||||||||
Lease assets obtained in exchange for new lease obligations | $ | 341,934 | 47,790 | 16,765 |
Fiscal year ending June 30, 2023 | $ | 69,070 | ||||||
Fiscal year ending June 30, 2024 | 78,175 | |||||||
Fiscal year ending June 30, 2025 | 56,577 | |||||||
Fiscal year ending June 30, 2026 | 33,704 | |||||||
Fiscal year ending June 30, 2027 | 42,932 | |||||||
Thereafter | 456,503 | |||||||
Total lease payments | 736,961 | |||||||
Less imputed interest | 243,680 | |||||||
Total lease liabilities | $ | 493,281 |
June 30, | ||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||
Weighted average remaining lease term (in years) | 12.7 | 7.09 | ||||||||||||||||||||||||
Weighted average discount rate | 6.47 | % | 7.85 | % |
Line Item in the Company’s Consolidated Balance Sheet | June 30, 2021 | June 30, 2020 | ||||||||
Right-of-use | ||||||||||
Operating leases | Right-of-use | $ | 268,568 | $ | 220,328 | |||||
Lease liabilities: | ||||||||||
Operating leases, current | Operating lease liabilities, current | $ | 68,544 | $ | 53,388 | |||||
Operating leases, noncurrent | Operating lease liabilities, noncurrent | 224,729 | 174,219 | |||||||
Total lease liabilities | $ | 293,273 | $ | 227,607 | ||||||
Line Item in the Company’s Consolidated and Combined Statement of Operations | Years Ended June 30, | |||||||||
2021 | 2020 | |||||||||
Operating lease cost | Direct operating expenses | $ | 31,074 | $ | 32,348 | |||||
Operating lease cost | Selling, general and administrative expenses | 20,898 | 19,525 | |||||||
Short-term lease cost | Direct operating expenses | 0 | 348 | |||||||
Variable lease cost | Direct operating expenses | 1,810 | 4,008 | |||||||
Variable lease cost | Selling, general and administrative expenses | 57 | 61 | |||||||
Total lease cost | $ | 53,839 | $ | 56,290 | ||||||
Fiscal year ending June 30, 2022 | $ | 71,346 | ||
Fiscal year ending June 30, 2023 | 72,248 | |||
Fiscal year ending June 30, 2024 | 52,311 | |||
Fiscal year ending June 30, 2025 | 33,751 | |||
Fiscal year ending June 30, 2026 | 30,248 | |||
Thereafter | 150,473 | |||
Total lease payments | 410,377 | |||
Less imputed interest | 117,104 | |||
Total lease liabilities (a) | $ | 293,273 | ||
Entertainment | MSG Networks | Tao Group Hospitality | Total | |||||||||||||||||||||||||||||||||||
Balance as of June 30, 2020 | $ | 74,309 | $ | 424,508 | $ | — | $ | 498,817 | ||||||||||||||||||||||||||||||
Acquisition of Hakkasan | — | — | 3,378 | 3,378 | ||||||||||||||||||||||||||||||||||
Balance as of June 30, 2021 | $ | 74,309 | $ | 424,508 | $ | 3,378 | $ | 502,195 | ||||||||||||||||||||||||||||||
Measurement period adjustment for Hakkasan | — | — | (2,014) | (2,014) | ||||||||||||||||||||||||||||||||||
Balance as of June 30, 2022 | $ | 74,309 | $ | 424,508 | $ | 1,364 | $ | 500,181 |
Entertainment | Tao Group Hospitality | Total | ||||||||||
Balance as of June 30, 2019 | $ | 76,975 | $ | 88,583 | $ | 165,558 | ||||||
Allocation to the assets held for sale, subsequently sold (a) | (2,666 | ) | 0 | (2,666 | ) | |||||||
Goodwill impairment (b) | 0 | (88,583 | ) | (88,583 | ) | |||||||
Balance as of June 30, 2020 | $ | 74,309 | $ | 0 | $ | 74,309 | ||||||
Acquisition of Hakkasan (c) | 0 | 3,378 | 3,378 | |||||||||
Balance as of June 30, 2021 | $ | 74,309 | $ | 3,378 | $ | 77,687 | ||||||
As of | ||||||||||||||
June 30, 2022 | June 30, 2021 | |||||||||||||
Trademarks | 61,881 | $ | 61,881 | |||||||||||
Photographic related rights | 1,920 | 1,920 | ||||||||||||
Total | $ | 63,801 | $ | 63,801 |
June 30, 2021 | June 30, 2020 | |||||||
Trademarks | 61,881 | 61,881 | ||||||
Photographic related rights | 1,920 | 1,920 | ||||||
$ | 63,801 | $ | 63,801 | |||||
June 30, 2021 | Estimated Useful Lives | Gross | Accumulated Amortization | Net | ||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2022 | June 30, 2022 | Gross | Accumulated Amortization | Net | ||||||||||||||||||||||||||||||||||||||||||||||||
Trade names | 2 years to 25 years | $ | 121,000 | $ | (25,605 | ) | $ | 95,395 | $ | 112,094 | $ | (32,143) | $ | 79,951 | ||||||||||||||||||||||||||||||||||||||
Venue management contracts | 5.67 years to 20 years | 85,700 | (17,518 | ) | 68,182 | Venue management contracts | 84,855 | (23,546) | 61,309 | |||||||||||||||||||||||||||||||||||||||||||
Affiliate relationships | Affiliate relationships | 83,044 | (62,019) | 21,025 | ||||||||||||||||||||||||||||||||||||||||||||||||
Non-compete agreements | 5.75 years | 9,000 | (6,913 | ) | 2,087 | Non-compete agreements | 9,000 | (8,478) | 522 | |||||||||||||||||||||||||||||||||||||||||||
Festival rights | 15 years | 8,080 | (2,696 | ) | 5,384 | Festival rights | 8,080 | (6,926) | 1,154 | |||||||||||||||||||||||||||||||||||||||||||
Other intangibles (c) | 15 years | 4,217 | (3,814 | ) | 403 | |||||||||||||||||||||||||||||||||||||||||||||||
Other intangibles | Other intangibles | 4,217 | (4,094) | 123 | ||||||||||||||||||||||||||||||||||||||||||||||||
$ | 301,290 | $ | (137,206) | $ | 164,084 | |||||||||||||||||||||||||||||||||||||||||||||||
$ | 227,997 | $ | (56,546 | ) | $ | 171,451 | ||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2020 | Gross | Accumulated Amortization | Net | |||||||||
Trade names (a) | $ | 97,530 | $ | (20,774 | ) | $ | 76,756 | |||||
Venue management contracts (b) | 79,000 | (15,590 | ) | 63,410 | ||||||||
Non-compete agreements | 9,000 | (5,348 | ) | 3,652 | ||||||||
Festival rights | 8,080 | (2,156 | ) | 5,924 | ||||||||
Other intangibles (c) | 4,217 | (3,533 | ) | 684 | ||||||||
$ | 197,827 | $ | (47,401 | ) | $ | 150,426 | ||||||
June 30, 2021 | Gross | Accumulated Amortization | Net | |||||||||||||||||||||||
Trade names | $ | 121,000 | $ | (25,605) | $ | 95,395 | ||||||||||||||||||||
Venue management contracts | 85,700 | (17,518) | 68,182 | |||||||||||||||||||||||
Affiliate relationships | 83,044 | (56,221) | 26,823 | |||||||||||||||||||||||
Non-compete agreements | 9,000 | (6,913) | 2,087 | |||||||||||||||||||||||
Festival rights | 8,080 | (2,696) | 5,384 | |||||||||||||||||||||||
Other intangibles | 4,217 | (3,814) | 403 | |||||||||||||||||||||||
$ | 311,041 | $ | (112,767) | $ | 198,274 |
Fiscal year ending June 30, 2023 | $ | 16,622 | |||
Fiscal year ending June 30, 2024 | 14,451 | ||||
Fiscal year ending June 30, 2025 | 14,451 | ||||
Fiscal year ending June 30, 2026 | 14,435 | ||||
Fiscal year ending June 30, 2027 | 14,011 | ||||
Thereafter | 90,114 | ||||
$ | 164,084 |
Fiscal year ending June 30, 2022 | $ | 14,558 | ||
Fiscal year ending June 30, 2023 | 13,350 | |||
Fiscal year ending June 30, 2024 | 12,676 | |||
Fiscal year ending June 30, 2025 | 12,676 | |||
Fiscal year ending June 30, 2026 | 12,668 |
As of | |||||||||||||||||||||||
June 30, 2022 | June 30, 2021 | ||||||||||||||||||||||
Accrued payroll and employee related liabilities | $ | 154,134 | $ | 107,258 | |||||||||||||||||||
Cash due to promoters | 78,428 | 37,877 | |||||||||||||||||||||
Capital expenditure accruals | 206,462 | 110,428 | |||||||||||||||||||||
Accrued expenses | 79,666 | 87,443 | |||||||||||||||||||||
Total accrued and other current liabilities | $ | 518,690 | $ | 343,006 |
Commitments | ||||||||||||||||||||||||||
MSG Networks(a) | Entertainment(b) | Tao Group Hospitality(c) | Total | |||||||||||||||||||||||
Fiscal year ending June 30, 2023 | $ | 279,604 | $ | 429,346 | $ | 2,650 | $ | 711,600 | ||||||||||||||||||
Fiscal year ending June 30, 2024 | 258,551 | 72,920 | 892 | 332,363 | ||||||||||||||||||||||
Fiscal year ending June 30, 2025 | 250,551 | 4,272 | 931 | 255,754 | ||||||||||||||||||||||
Fiscal year ending June 30, 2026 | 251,329 | — | 143 | 251,472 | ||||||||||||||||||||||
Fiscal year ending June 30, 2027 | 258,633 | — | — | 258,633 | ||||||||||||||||||||||
Thereafter | 2,088,459 | — | — | 2,088,459 | ||||||||||||||||||||||
$ | 3,387,127 | $ | 506,538 | $ | 4,616 | $ | 3,898,281 |
Commitments (a) (b) | ||||||||||||
Debt Repayments (c) | Other (d) | Total (e) | ||||||||||
Fiscal year ending June 30, 2022 | $ | 12,750 | $ | 120,132 | $ | 132,882 | ||||||
Fiscal year ending June 30, 2023 | 17,137 | 118 | 17,255 | |||||||||
Fiscal year ending June 30, 2024 | 34,000 | 118 | 34,118 | |||||||||
Fiscal year ending June 30, 2025 | 6,500 | 57 | 6,557 | |||||||||
Fiscal year ending June 30, 2026 | 620,750 | 0 | 620,750 | |||||||||
Thereafter | 0 | 0 | 0 | |||||||||
$ | 691,137 | $ | 120,425 | $ | 811,562 | |||||||
See Note 15, Credit Facilities for more information regarding the principal repayments required under the National Properties Facilities and the Tao Credit Facilities. |
June 30, 2022 | June 30, 2021 | |||||||||||||||||||||||||||||||||||||
Principal | Unamortized Deferred Financing Costs | Net | Principal | Unamortized Deferred Financing Costs | Net | |||||||||||||||||||||||||||||||||
Current Portion | ||||||||||||||||||||||||||||||||||||||
MSG Networks Senior Secured Credit Facilities | $ | 66,000 | $ | (1,231) | $ | 64,769 | $ | 49,500 | $ | (1,255) | $ | 48,245 | ||||||||||||||||||||||||||
National Properties Term Loan Facility | 8,125 | (3,213) | 4,912 | 6,500 | (6,783) | (283) | ||||||||||||||||||||||||||||||||
Tao Term Loan Facility | 3,750 | (225) | 3,525 | 6,250 | (239) | 6,011 | ||||||||||||||||||||||||||||||||
Other debt | 637 | — | 637 | — | — | — | ||||||||||||||||||||||||||||||||
Current portion of long-term debt, net of deferred financing costs | $ | 78,512 | $ | (4,669) | $ | 73,843 | $ | 62,250 | $ | (8,277) | $ | 53,973 |
June 30, 2022 | June 30, 2021 | |||||||||||||||||||||||||||||||||||||
Principal | Unamortized Deferred Financing Costs | Net | Principal | Unamortized Deferred Financing Costs | Net | |||||||||||||||||||||||||||||||||
Noncurrent Portion | ||||||||||||||||||||||||||||||||||||||
MSG Networks Senior Secured Credit Facilities | $ | 932,250 | $ | (1,484) | $ | 930,766 | $ | 998,250 | $ | (2,715) | $ | 995,535 | ||||||||||||||||||||||||||
National Properties Term Loan Facility | 641,875 | (12,851) | 629,024 | 640,250 | (22,819) | 617,431 | ||||||||||||||||||||||||||||||||
National Properties Revolving Credit Facility | 29,100 | — | 29,100 | — | — | — | ||||||||||||||||||||||||||||||||
Tao Term Loan Facility | 71,250 | (895) | 70,355 | 22,500 | (475) | 22,025 | ||||||||||||||||||||||||||||||||
Tao Revolving Credit Facility | 10,000 | — | 10,000 | 15,000 | — | 15,000 | ||||||||||||||||||||||||||||||||
Other debt | — | — | — | 637 | — | 637 | ||||||||||||||||||||||||||||||||
Long-term debt, net of deferred financing costs | $ | 1,684,475 | $ | (15,230) | $ | 1,669,245 | $ | 1,676,637 | $ | (26,009) | $ | 1,650,628 |
Line Item on Consolidated Balance Sheet | June 30, | |||||||||
2021 | 2020 | |||||||||
Assets: | ||||||||||
Money market accounts (a) | Cash and cash equivalents | $ | 362,237 | $ | 0 | |||||
Time deposits (a) | Cash and cash equivalents | 691,521 | 777 | |||||||
U.S. treasury bills (a) | Cash and cash equivalents | 0 | 699,945 | |||||||
Term deposits (b) | Short-term investments | 0 | 37,250 | |||||||
U.S. treasury bills (b) | Short-term investments | 0 | 299,942 | |||||||
Notes receivable (b) | Other current assets | 0 | 6,328 | |||||||
Equity investments with readily determinable fair value (c) | Other assets | 86,264 | 57,061 | |||||||
Total assets measured at fair value | $ | 1,140,022 | $ | 1,101,303 | ||||||
June 30, 2021 | June 30, 2020 | |||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
Liabilities | ||||||||||||||||
Current and non-current portion of long-term debt under National Properties Term Loan Facility(a) | $ | 646,750 | $ | 669,386 | $ | 0 | $ | 0 | ||||||||
Current and non-current portion of long-term debt under Tao Credit Facilities(a) | 43,750 | 43,851 | 33,750 | 32,367 |
Tao Term Loan Facility | National Properties Term Loan Facility | Total | ||||||||||
Fiscal year ending June 30, 2022 | $ | 6,250 | $ | 6,500 | $ | 12,750 | ||||||
Fiscal year ending June 30, 2023 | 10,000 | 6,500 | 16,500 | |||||||||
Fiscal year ending June 30, 2024 (a) | 27,500 | 6,500 | 34,000 | |||||||||
Fiscal year ending June 30, 2025 | 0 | 6,500 | 6,500 | |||||||||
Fiscal year ending June 30, 2026 | 0 | 620,750 | 620,750 | |||||||||
Thereafter | 0 | 0 | 0 | |||||||||
$43,750 | $646,750 | $690,500 | ||||||||||
MSG Networks Senior Secured Credit Facilities | National Properties Facilities | Tao Senior Secured Credit Facilities | Other debt | Total | ||||||||||||||||||||||||||||
Fiscal year ending June 30, 2023 | $ | 66,000 | $ | 8,125 | $ | 3,750 | $ | 637 | $ | 78,512 | ||||||||||||||||||||||
Fiscal year ending June 30, 2024 | 82,500 | 16,250 | 3,750 | — | 102,500 | |||||||||||||||||||||||||||
Fiscal year ending June 30, 2025 | 849,750 | 16,250 | 5,625 | — | 871,625 | |||||||||||||||||||||||||||
Fiscal year ending June 30, 2026 | — | 32,500 | 7,500 | — | 40,000 | |||||||||||||||||||||||||||
Fiscal year ending June 30, 2027 | — | 605,975 | 64,375 | — | 670,350 | |||||||||||||||||||||||||||
Thereafter | — | — | — | — | — | |||||||||||||||||||||||||||
$ | 998,250 | $ | 679,100 | $ | 85,000 | $ | 637 | $ | 1,762,987 |
June 30, 2021 | June 30, 2020 | |||||||||||||||||||||||
Principal | Unamortized Deferred Financing Costs | Net (a) | Principal | Unamortized Deferred Financing Costs | Net (a) | |||||||||||||||||||
Current portion | ||||||||||||||||||||||||
National Properties Term Loan Facility | $ | 6,500 | $ | (6,783 | ) | $ | (283 | ) | $ | 0 | $ | 0 | $ | 0 | ||||||||||
Tao Term Loan Facility | 6,250 | (239 | ) | 6,011 | 5,000 | (208 | ) | 4,792 | ||||||||||||||||
Current portion of long-term debt, net of deferred financing costs (a) | $ | 12,750 | $ | (7,022 | ) | $ | 5,728 | $ | 5,000 | $ | (208 | ) | $ | 4,792 | ||||||||||
June 30, 2021 | June 30, 2020 | |||||||||||||||||||||||
Principal | Unamortized Deferred Financing Costs | Net (a) | Principal | Unamortized Deferred Financing Costs | Net (a) | |||||||||||||||||||
Noncurrent portion | ||||||||||||||||||||||||
National Properties Term Loan Facility (a) | $ | 640,250 | $ | (22,819 | ) | $ | 617,431 | $ | 0 | $ | 0 | $ | 0 | |||||||||||
Tao Term Loan Facility | 22,500 | (475 | ) | 22,025 | 28,750 | (624 | ) | 28,126 | ||||||||||||||||
Tao Revolving Credit Facility (b) | 15,000 | 0 | 15,000 | 0 | 0 | 0 | ||||||||||||||||||
Long-term debt, net of deferred financing costs (a) | $ | 677,750 | $ | (23,294 | ) | $ | 654,456 | $ | 28,750 | $ | (624 | ) | $ | 28,126 | ||||||||||
June 30, 2021 | June 30, 2020 | |||||||
Other current assets | $ | 108 | $ | 85 | ||||
Other assets | 207 | 248 |
Interest Payments | Loan Principal Repayments | |||||||||||||||||||||||||||||||||||||
Years Ended June 30, | Years Ended June 30, | |||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2022 | 2021 | 2020 | |||||||||||||||||||||||||||||||||
MSG Networks Senior Secured Credit Facilities | $ | 19,173 | $ | 18,559 | $ | 34,537 | $ | 49,500 | $ | 38,500 | $ | 35,000 | ||||||||||||||||||||||||||
National Properties Term Loan Facility | 52,163 | 22,879 | — | 646,750 | 3,250 | — | ||||||||||||||||||||||||||||||||
Tao Senior Credit Agreement | 743 | 1,128 | 1,817 | 43,750 | 5,000 | 21,250 | ||||||||||||||||||||||||||||||||
$ | 72,079 | $ | 42,566 | $ | 36,354 | $ | 740,000 | $ | 46,750 | $ | 56,250 |
June 30, 2022 | June 30, 2021 | |||||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||
MSG Networks Senior Secured Credit Facilities | $ | 998,250 | $ | 958,320 | $ | 1,047,750 | $ | 1,042,510 | ||||||||||||||||||
National Properties Facilities | $ | 679,100 | $ | 679,100 | $ | 646,750 | $ | 669,386 | ||||||||||||||||||
Tao Senior Secured Credit Facilities | $ | 85,000 | $ | 82,569 | $ | 43,750 | $ | 43,851 | ||||||||||||||||||
Interest Payments | Loan Principal Repayments | |||||||||||||||||||||||
Years Ended June 30, | Years Ended June 30, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 | 2020 | 2019 | |||||||||||||||||||
National Properties Term Loan Facility | $ | 22,879 | $ | 0 | $ | 0 | $ | 3,250 | $ | 0 | $ | 0 | ||||||||||||
Tao Senior Credit Agreement | 1,128 | 1,817 | 13,084 | 5,000 | 21,250 | 109,312 | ||||||||||||||||||
$ | 24,007 | $ | 1,817 | $ | 13,084 | $ | 8,250 | $ | 21,250 | $ | 109,312 | |||||||||||||
�� |
Pension Plans | Postretirement Plan | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Change in benefit obligation: | ||||||||||||||||
Benefit obligation at beginning of period | $ | 174,892 | $ | 173,569 | $ | 3,658 | $ | 4,307 | ||||||||
Service cost | 96 | 95 | 47 | 56 | ||||||||||||
Interest cost | 3,385 | 5,261 | 45 | 108 | ||||||||||||
Actuarial loss (gain) | 1,981 | 12,670 | (76 | ) | 277 | |||||||||||
Benefits paid | (4,410 | ) | (6,698 | ) | (390 | ) | (1,090 | ) | ||||||||
Curtailments | (91 | ) | 0 | 0 | 0 | |||||||||||
Plan settlements paid | (3,777 | ) | (551 | ) | 0 | 0 | ||||||||||
Other | (177 | ) | (74 | ) | (66 | ) | 0 | |||||||||
Transfer of liabilities (a) | 0 | (9,380 | ) | 0 | 0 | |||||||||||
Benefit obligation at end of period | 171,899 | 174,892 | 3,218 | 3,658 | ||||||||||||
Change in plan assets: | ||||||||||||||||
Fair value of plan assets at beginning of period | 151,756 | 132,965 | 0 | 0 | ||||||||||||
Actual return on plan assets | 1,969 | 18,221 | 0 | 0 | ||||||||||||
Employer contributions | 60 | 7,260 | 0 | 0 | ||||||||||||
Benefits paid | (4,409 | ) | (6,690 | ) | 0 | 0 | ||||||||||
Plan settlements paid | (3,724 | ) | 0 | 0 | 0 | |||||||||||
Fair value of plan assets at end of period | 145,652 | 151,756 | 0 | 0 | ||||||||||||
Funded status at end of period | $ | (26,247 | ) | $ | (23,136 | ) | $ | (3,218 | ) | $ | (3,658 | ) | ||||
Pension Plans | Postretirement Plans | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Change in benefit obligation: | |||||||||||||||||||||||
Benefit obligation at beginning of period | $ | 221,007 | $ | 224,633 | $ | 5,013 | $ | 5,700 | |||||||||||||||
Service cost | 491 | 500 | 59 | 81 | |||||||||||||||||||
Interest cost | 4,756 | 4,412 | 73 | 78 | |||||||||||||||||||
Actuarial loss (gain) (a) | (42,115) | 1,793 | (745) | (381) | |||||||||||||||||||
Benefits paid | (8,540) | (6,286) | (339) | (399) | |||||||||||||||||||
Curtailments | — | (91) | — | — | |||||||||||||||||||
Plan settlements paid | — | (3,777) | — | — | |||||||||||||||||||
Other | — | (177) | — | (66) | |||||||||||||||||||
Benefit obligation at end of period | 175,599 | 221,007 | 4,061 | 5,013 | |||||||||||||||||||
Change in plan assets: | |||||||||||||||||||||||
Fair value of plan assets at beginning of period | 169,882 | 176,364 | — | — | |||||||||||||||||||
Actual return on plan assets | (35,259) | 1,824 | — | — | |||||||||||||||||||
Employer contributions | 400 | 1,703 | — | — | |||||||||||||||||||
Benefits paid | (7,289) | (6,285) | — | — | |||||||||||||||||||
Plan settlements paid | — | (3,724) | — | — | |||||||||||||||||||
Fair value of plan assets at end of period | 127,734 | 169,882 | — | — | |||||||||||||||||||
Funded status at end of period | $ | (47,865) | $ | (51,125) | $ | (4,061) | $ | (5,013) |
Pension Plans | Postretirement Plans | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Current liabilities (included in accrued employee related costs) | $ | (1,534) | $ | (1,502) | $ | (497) | $ | (468) | |||||||||||||||
Non-current liabilities (included in defined benefit and other postretirement obligations) | (46,331) | (49,623) | (3,564) | (4,545) | |||||||||||||||||||
$ | (47,865) | $ | (51,125) | $ | (4,061) | $ | (5,013) |
Pension Plans | Postretirement Plan | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Current liabilities (included in accrued employee related costs) | $ | (260 | ) | $ | (331 | ) | $ | (369 | ) | $ | (331 | ) | ||||
Non-current liabilities (included in defined benefit and other postretirement obligations) | (25,987 | ) | (22,805 | ) | (2,849 | ) | (3,327 | ) | ||||||||
$ | (26,247 | ) | $ | (23,136 | ) | $ | (3,218 | ) | $ | (3,658 | ) | |||||
Pension Plans | Postretirement Plans | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Actuarial gain (loss) | $ | (49,793) | $ | (51,747) | $ | 312 | $ | (439) | |||||||||||||||
Pension Plans | Postretirement Plan | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Actuarial loss | $ | (39,957 | ) | $ | (36,704 | ) | $ | (786 | ) | $ | (1,025 | ) |
Pension Plans | Postretirement Plans | |||||||||||||||||||||||||||||||||||||
Years Ended June 30, | Years Ended June 30, | |||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2022 | 2021 | 2020 | |||||||||||||||||||||||||||||||||
Service cost | $ | 491 | $ | 500 | $ | 579 | $ | 59 | $ | 81 | $ | 96 | ||||||||||||||||||||||||||
Interest cost | 4,756 | 4,412 | 6,674 | 73 | 78 | 168 | ||||||||||||||||||||||||||||||||
Expected return on plan assets | (6,874) | (5,972) | (6,295) | — | — | — | ||||||||||||||||||||||||||||||||
Recognized actuarial loss | 1,971 | 1,599 | 1,872 | 7 | 98 | 6 | ||||||||||||||||||||||||||||||||
Amortization of unrecognized prior service cost (credit) | — | — | — | — | — | (3) | ||||||||||||||||||||||||||||||||
Settlement loss recognized (a) | — | 870 | 67 | — | — | — | ||||||||||||||||||||||||||||||||
Net periodic benefit cost | $ | 344 | $ | 1,409 | $ | 2,897 | $ | 139 | $ | 257 | $ | 267 | ||||||||||||||||||||||||||
Contributory charge to Madison Square Garden Sports Corp. for participation in the Shared Plans and all allocation of costs related to the corporate employees | — | — | (173) | — | — | (26) | ||||||||||||||||||||||||||||||||
Net periodic benefit cost reported in the consolidated and combined statements of operations | $ | 344 | $ | 1,409 | $ | 2,724 | $ | 139 | $ | 257 | $ | 241 |
Pension Plans | Postretirement Plan | |||||||||||||||||||||||
Years Ended June 30, | Years Ended June 30, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 | 2020 | 2019 | |||||||||||||||||||
Service cost | $ | 96 | $ | 95 | $ | 91 | $ | 47 | $ | 56 | $ | 57 | ||||||||||||
Interest cost | 3,385 | 5,261 | 5,895 | 45 | 108 | 150 | ||||||||||||||||||
Expected return on plan assets | (5,232 | ) | (5,319 | ) | (3,133 | ) | 0 | 0 | 0 | |||||||||||||||
Recognized actuarial loss | 1,093 | 1,336 | 1,281 | 98 | 6 | 5 | ||||||||||||||||||
Amortization of unrecognized prior service cost (credit) | 0 | 0 | 0 | 0 | 0 | (7 | ) | |||||||||||||||||
Settlement loss recognized (a) | 870 | 67 | 52 | 0 | 0 | 0 | ||||||||||||||||||
Other | 0 | 0 | 0 | 0 | 0 | (1,513 | ) | |||||||||||||||||
Net periodic benefit cost | $ | 212 | $ | 1,440 | $ | 4,186 | $ | 190 | $ | 170 | $ | (1,308 | ) | |||||||||||
Contributory charge to Madison Square Garden Sports Corp. for participation in the Shared Plans and all allocation of costs related to the corporate employees | 0 | (173 | ) | (692 | ) | 0 | (26 | ) | 231 | |||||||||||||||
Net periodic benefit cost reported in the consolidated and combined statements of operations | $ | 212 | $ | 1,267 | $ | 3,494 | $ | 190 | $ | 144 | $ | (1,077 | ) | |||||||||||
Pension Plans | Postretirement Plans | ||||||||||||||||||||||||||||||||||
Years Ended June 30, | Years Ended June 30, | ||||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2022 | 2021 | 2020 | ||||||||||||||||||||||||||||||
Actuarial gain (loss), net | $ | 12 | $ | (5,953) | $ | (1,712) | $ | 744 | $ | 381 | $ | 123 | |||||||||||||||||||||||
Recognized actuarial loss | 1,971 | 1,599 | 1,872 | 7 | 98 | 6 | |||||||||||||||||||||||||||||
Recognized prior service credit | — | — | — | — | — | (3) | |||||||||||||||||||||||||||||
Curtailments | — | 91 | — | — | 65 | — | |||||||||||||||||||||||||||||
Settlement loss recognized | — | 870 | 67 | — | — | — | |||||||||||||||||||||||||||||
Total recognized in other comprehensive income (loss) | $ | 1,983 | $ | (3,393) | $ | 227 | $ | 751 | $ | 544 | $ | 126 |
Pension Plans | Postretirement Plan | |||||||||||||||||||||||
Years Ended June 30, | Years Ended June 30, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 | 2020 | 2019 | |||||||||||||||||||
Actuarial gain (loss), net | $ | (5,244 | ) | $ | 232 | $ | (3,137 | ) | $ | 76 | $ | (277 | ) | $ | 572 | |||||||||
Recognized actuarial loss | 1,093 | 1,336 | 1,281 | 98 | 6 | 5 | ||||||||||||||||||
Recognized prior service credit | 0 | 0 | 0 | 0 | 0 | (7 | ) | |||||||||||||||||
Curtailments | 91 | 0 | 0 | 65 | 0 | 0 | ||||||||||||||||||
Settlement loss recognized | 870 | 67 | 52 | 0 | 0 | 0 | ||||||||||||||||||
Total recognized in other comprehensive income (loss) | $ | (3,190 | ) | $ | 1,635 | $ | (1,804 | ) | $ | 239 | $ | (271 | ) | $ | 570 | |||||||||
Pension Plans | Postretirement Plans | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Discount rate | 4.85 | % | 2.84 | % | 4.64 | % | 2.21 | % | |||||||||||||||
Rate of compensation increase | 3.00 | % | 3.00 | % | n/a | n/a | |||||||||||||||||
Interest crediting rate | 2.76 | % | 2.32 | % | n/a | n/a | |||||||||||||||||
Healthcare cost trend rate assumed for next year | n/a | n/a | 6.00 | % | 6.25 | % | |||||||||||||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | n/a | n/a | 5.00 | % | 5.00 | % | |||||||||||||||||
Year that the rate reaches the ultimate trend rate | n/a | n/a | 2027 | 2027 |
Pension Plans | Postretirement Plan | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Discount rate | 2.87 | % | 3.21 | % | 2.17 | % | 2.09 | % | ||||||||
Interest crediting rate | 2.32 | % | 1.37 | % | n/a | n/a | ||||||||||
Healthcare cost trend rate assumed for next year | n/a | n/a | 6.25 | % | 6.50 | % | ||||||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | n/a | n/a | 5.00 | % | 5.00 | % | ||||||||||
Year that the rate reaches the ultimate trend rate | n/a | n/a | 2027 | 2027 |
Pension Plans | Postretirement Plan | |||||||||||||||||||||||
Years Ended June 30, | Years Ended June 30, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 | 2020 | 2019 | |||||||||||||||||||
Discount rate—projected benefit obligation | 2.84 | % | 3.58 | % | 4.19 | % | 2.09 | % | 3.18 | % | 4.06 | % | ||||||||||||
Discount rate—service cost | 3.20 | % | 3.78 | % | 4.25 | % | 2.15 | % | 3.45 | % | 4.25 | % | ||||||||||||
Discount rate—interest cost | 1.92 | % | 3.21 | % | 3.90 | % | 1.23 | % | 2.84 | % | 3.67 | % | ||||||||||||
Expected long-term return on plan assets | 4.02 | % | 5.28 | % | 3.72 | % | n/a | n/a | n/a | |||||||||||||||
Interest crediting rate | 1.37 | % | 3.28 | % | 2.82 | % | n/a | n/a | n/a | |||||||||||||||
Healthcare cost trend rate assumed for next year | n/a | n/a | n/a | 6.50 | % | 6.75 | % | 7.00 | % | |||||||||||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | n/a | n/a | n/a | 5.00 | % | 5.00 | % | 5.00 | % | |||||||||||||||
Year that the rate reaches the ultimate trend rate | n/a | n/a | n/a | 2027 | 2027 | 2027 |
Pension Plans | Postretirement Plans | ||||||||||||||||||||||||||||||||||
Years Ended June 30, | Years Ended June 30, | ||||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2022 | 2021 | 2020 | ||||||||||||||||||||||||||||||
Discount rate - projected benefit obligation | 2.60 | % | 2.80 | % | 3.57 | % | 2.20 | % | 2.12 | % | 3.20 | % | |||||||||||||||||||||||
Discount rate - service cost | 3.13 | % | 3.08 | % | 3.70 | % | 2.64 | % | 2.48 | % | 3.44 | % | |||||||||||||||||||||||
Discount rate - interest cost | 1.98 | % | 2.16 | % | 3.20 | % | 1.61 | % | 1.63 | % | 2.88 | % | |||||||||||||||||||||||
Expected long-term return on plan assets | 4.79 | % | 4.03 | % | 5.38 | % | n/a | n/a | n/a | ||||||||||||||||||||||||||
Rate of compensation increase | 3.00 | % | 3.00 | % | 2.00 | % | n/a | n/a | n/a | ||||||||||||||||||||||||||
Interest crediting rate | 2.32 | % | 1.37 | % | 3.28 | % | n/a | n/a | n/a | ||||||||||||||||||||||||||
Healthcare cost trend rate assumed for next year | n/a | n/a | n/a | 6.25 | % | 6.50 | % | 6.75 | % | ||||||||||||||||||||||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | n/a | n/a | n/a | 5.00 | % | 5.00 | % | 5.00 | % | ||||||||||||||||||||||||||
Year that the rate reaches the ultimate trend rate | n/a | n/a | n/a | 2027 | 2027 | 2027 |
June 30, | |||||||||||
Asset Classes (a): | 2022 | 2021 | |||||||||
Fixed income securities | 81 | % | 98 | % | |||||||
Equity securities | 12 | % | — | % | |||||||
Cash equivalents | 7 | % | 2 | % | |||||||
100 | % | 100 | % |
June 30, | ||||||||
Asset Classes (a) : | 2021 | 2020 | ||||||
Fixed income securities | 98 | % | 99 | % | ||||
Cash equivalents | 2 | % | 1 | % | ||||
100% | 100% | |||||||
Fair Value Hierarchy | June 30, | |||||||||||||||||||
2022 | 2021 | |||||||||||||||||||
Fixed income securities: | ||||||||||||||||||||
U.S. Treasury securities (a) | I | $ | 672 | $ | — | |||||||||||||||
Money market fund (a) | I | 8,529 | 2,948 | |||||||||||||||||
U.S. corporate bonds (b) | II | — | 100,230 | |||||||||||||||||
Foreign issues (c) | II | — | 20,119 | |||||||||||||||||
Municipal bonds (c) | II | — | 3,880 | |||||||||||||||||
Mutual fund - equity (d) | II | 15,661 | — | |||||||||||||||||
Common collective trust (d) | II | 102,872 | 42,705 | |||||||||||||||||
Total investments measured at fair value | $ | 127,734 | $ | 169,882 |
Fair Value Hierarchy | June 30, | |||||||||||
2021 | 2020 | |||||||||||
Fixed income securities: | ||||||||||||
U.S. Treasury securities (a) | I | $ | 0 | $ | 3,825 | |||||||
U.S. corporate bonds (b) | II | 100,229 | 110,542 | |||||||||
Foreign issues (c) | II | 20,119 | 13,764 | |||||||||
Municipal bonds (d) | II | 3,880 | 4,146 | |||||||||
Money market accounts (e) | I | 2,753 | 1,329 | |||||||||
Common collective trust (f) | II | 18,669 | 18,150 | |||||||||
Total investments measured at fair value | $ | 145,650 | $ | 151,756 | ||||||||
Pension Plans | Postretirement Plans | ||||||||||
Fiscal year ending June 30, 2023 | $ | 13,760 | $ | 504 | |||||||
Fiscal year ending June 30, 2024 | $ | 10,916 | $ | 471 | |||||||
Fiscal year ending June 30, 2025 | $ | 10,742 | $ | 474 | |||||||
Fiscal year ending June 30, 2026 | $ | 11,525 | $ | 433 | |||||||
Fiscal year ending June 30, 2027 | $ | 11,764 | $ | 399 | |||||||
Fiscal years ending June 30, 2028 – 2032 | $ | 59,027 | $ | 1,763 |
Pension Plans | Postretirement Plan | |||||||
Fiscal year ending June 30, 2022 | $ | 11,927 | $ | 369 | ||||
Fiscal year ending June 30, 2023 | 8,305 | 349 | ||||||
Fiscal year ending June 30, 2024 | 7,904 | 319 | ||||||
Fiscal year ending June 30, 2025 | 7,977 | 332 | ||||||
Fiscal year ending June 30, 2026 | 8,540 | 322 | ||||||
Fiscal years ending June 30, 2027 – 2031 | 43,320 | 1,054 |
PPA Zone Status | FIP/RP Status Pending / Implemented | Company Contributions | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of June 30, | Years Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plan Name | EIN | Pension Plan Number | 2022 | 2021 | 2022 | 2021 | 2020 | Surcharge Imposed | Expiration Date of CBA | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Fund of Local No. 1 of I.A.T.S.E. | 136414973 | 001 | Green as of 2021-12-31 | Green as of 2020-12-31 | No | $ | 2,032 | $ | 194 | $ | 1,831 | No | 6/30/2021 - 5/1/2023 | ||||||||||||||||||||||||||||||||||||||||||||||
All Other Multiemployer Defined Benefit Pension Plans | 2,263 | 584 | 3,137 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 4,295 | $ | 778 | $ | 4,968 |
PPA Zone Status | Company Contributions | |||||||||||||||||||||||||||||||||||||||
As of June 30, | Years Ended June 30, | |||||||||||||||||||||||||||||||||||||||
Plan Name | EIN | Pension Plan Number | 2021 | 2020 | FIP/RP Status Pending / Implemented | 2021 | 2020 | 2019 | Surcharge Imposed | Expiration Date of CBA | ||||||||||||||||||||||||||||||
Pension Fund of Local No. 1 of I.A.T.S.E. | 136414973 | 001 | | Green as of 2020-12-31 | | | Green as of 2019-12-31 | | No | $ | 194 | $ | 1,831 | $ | 2,529 | No | 6/30/2021 - 5/1/2023 | |||||||||||||||||||||||
All Other Multiemployer Defined Benefit Pension Plans | 584 | 3,137 | 3,234 | |||||||||||||||||||||||||||||||||||||
$ | 778 | $ | 4,968 | $ | 5,763 | |||||||||||||||||||||||||||||||||||
Fund Name | Exceeded 5 | Year Contributions to Plan Exceeded 5 Percent of Total Contributions (As of Plan’s Year-End) | ||||||||
Pension Fund of Local No. 1 of I.A.T.S.E | True | December 31, 2020, 2019 | ||||||||
32BJ/Broadway League Pension Fund | True | December 31, 2020, 2019 | ||||||||
Treasurers and Ticket Sellers Local 751 Pension Fund | True | August 31, 2021, 2020 | ||||||||
Number of | Weighted-Average Fair Value Per Share At Date of Grant | ||||||||||||||||
Nonperformance Based Vesting RSUs | Performance Based Vesting RSUs | ||||||||||||||||
Unvested award balance as of June 30, 2021 | 683 | 701 | $ | 76.15 | |||||||||||||
Granted | 644 | 497 | $ | 79.34 | |||||||||||||
Performance Award Conversion | 223 | (223) | $ | 82.63 | |||||||||||||
Vested | (436) | (77) | $ | 84.87 | |||||||||||||
Forfeited | (42) | (53) | $ | 76.48 | |||||||||||||
Unvested award balance as of June 30, 2022 | 1,072 | 845 | $ | 75.70 |
Years Ended June 30, | ||||||||||||
2021 (b) | 2020 | 2019 | ||||||||||
Nonperformance and performance based RSUs | $ | 40,195 | $ | 36,811 | $ | 31,509 | ||||||
Stock options (c) | 12,722 | 5,379 | 3,892 | |||||||||
Total share-based compensation expense (a) | $ | 52,917 | $ | 42,190 | $ | 35,401 | ||||||
For the Fiscal Year Ended | |||||||||||||||||
June 30, 2022 | June 30, 2021 | June 30, 2020 | |||||||||||||||
Weighted average grant date fair value per share of awards granted (a) | $ | 79.34 | $ | 69.66 | $ | 81.88 | |||||||||||
Intrinsic value of awards vested (a) | $ | 40,701 | $ | 26,160 | $ | 10,587 |
Number of | Weighted- Average Fair Value Per Share At Date of Grant | |||||||||||
Nonperformance Based Vesting RSUs (In Thousands) | Performance Based Vesting RSUs (In Thousands) | |||||||||||
Unvested award balance as of June 30, 2020 | 277 | 328 | $ | 75.34 | ||||||||
Granted | 424 | 343 | $ | 72.81 | ||||||||
Vested | (156 | ) | (106 | ) | $ | 70.84 | ||||||
Forfeited | (48 | ) | (54 | ) | $ | 72.46 | ||||||
Cancelled | 0 | (32 | ) | $ | 88.58 | |||||||
Unvested award balance as of June 30, 2021 | 497 | 479 | $ | 74.42 | ||||||||
Number of Time Vesting Options | Number of Performance Based Vesting Options | Weighted-Average Exercise Price Per Share | Weighted-Average Remaining Contractual Term (In Years) | Aggregate Intrinsic Value | ||||||||||||||||||||||
Balance as of June 30, 2021 | 409 | 315 | $ | 103.88 | ||||||||||||||||||||||
Performance Award Conversion | 315 | (315) | $ | 109.76 | ||||||||||||||||||||||
Balance as of June 30, 2022 | 724 | — | $ | 103.88 | 3.46 | $ | — | |||||||||||||||||||
Exercisable as of June 30, 2022 | 597 | — | $ | 108.29 | 3.21 | $ | — |
Number of Time Vesting Options (In Thousands) | Weighted- Average Exercise Price Per Share | Weighted-Average Remaining Contractual Term (In Years) | Aggregate Intrinsic Value | |||||||||||||
Balance as of June 30, 2020 | 543 | $ | 99.68 | |||||||||||||
Cancelled | (449 | ) | $ | 107.07 | ||||||||||||
Balance as of June 30, 2021 | 94 | $ | 64.36 | 6.46 | $ | 1,840 | ||||||||||
Exercisable as of June 30, 2021 | 94 | $ | 64.36 | 6.46 | $ | 1,840 |
Pension Plans and Postretirement Plan | Cumulative Translation Adjustments | Accumulated Other Comprehensive Loss | |||||||||||||||
Balance as of June 30, 2021 | $ | (45,425) | $ | 15,153 | $ | (30,272) | |||||||||||
Other comprehensive income (loss): | |||||||||||||||||
Other comprehensive loss before reclassifications | — | (25,034) | (25,034) | ||||||||||||||
Amounts reclassified from accumulated other comprehensive loss (a) | 2,734 | — | 2,734 | ||||||||||||||
Income tax benefit (expense) | 2,404 | 1,813 | 4,217 | ||||||||||||||
Other comprehensive income (loss), total | 5,138 | (23,221) | (18,083) | ||||||||||||||
Balance as of June 30, 2022 | $ | (40,287) | $ | (8,068) | $ | (48,355) |
Pension Plans and Postretirement Plan | Cumulative Translation Adjustments | Accumulated Other Comprehensive Loss | Pension Plans and Postretirement Plan | Cumulative Translation Adjustments | Accumulated Other Comprehensive Loss | ||||||||||||||||||||||||||||||
Balance as of June 30, 2020 | $ | (39,322 | ) | $ | (12,535 | ) | $ | (51,857 | ) | Balance as of June 30, 2020 | $ | (40,248) | $ | (10,225) | $ | (50,473) | |||||||||||||||||||
Other comprehensive income (loss): | Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||||
Other comprehensive loss before reclassifications | 0 | 27,688 | 27,688 | ||||||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | Other comprehensive income (loss) before reclassifications | (404) | 27,688 | 27,284 | |||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss (a) | (2,951 | ) | 0 | (2,951 | ) | Amounts reclassified from accumulated other comprehensive loss (a) | (2,445) | — | (2,445) | ||||||||||||||||||||||||||
Income tax expenses | Income tax expenses | (2,328) | (2,310) | (4,638) | |||||||||||||||||||||||||||||||
Other comprehensive income (loss), total | (2,951 | ) | 27,688 | 24,737 | Other comprehensive income (loss), total | (5,177) | 25,378 | 20,201 | |||||||||||||||||||||||||||
Balance as of June 30, 2021 | $ | (42,273 | ) | $ | 15,153 | $ | (27,120 | ) | Balance as of June 30, 2021 | $ | (45,425) | $ | 15,153 | $ | (30,272) | ||||||||||||||||||||
Pension Plans and Postretirement Plan | Cumulative Translation Adjustments | Accumulated Other Comprehensive Loss | Pension Plans and Postretirement Plan | Cumulative Translation Adjustments | Accumulated Other Comprehensive Loss | ||||||||||||||||||||||||||||||
Balance as of June 30, 2019 | $ | (42,080 | ) | $ | (4,843 | ) | $ | (46,923 | ) | Balance as of June 30, 2019 | $ | (41,673) | $ | (3,951) | $ | (45,624) | |||||||||||||||||||
Other comprehensive income (loss): | Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||||
Other comprehensive loss before reclassifications | (45 | ) | (7,692 | ) | (7,737 | ) | Other comprehensive loss before reclassifications | (1,589) | (7,692) | (9,281) | |||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss (a) | 1,409 | 0 | 1,409 | Amounts reclassified from accumulated other comprehensive loss (a) | 1,942 | — | 1,942 | ||||||||||||||||||||||||||||
Income tax benefits (expenses) | Income tax benefits (expenses) | (322) | 1,418 | 1,096 | |||||||||||||||||||||||||||||||
Other comprehensive income (loss), total | 1,364 | (7,692 | ) | (6,328 | ) | Other comprehensive income (loss), total | 31 | (6,274) | (6,243) | ||||||||||||||||||||||||||
Adjustment related to the transfer of Pension Plans and Postretirement Plan liabilities as a result of the Entertainment Distribution | 1,394 | 0 | 1,394 | Adjustment related to the transfer of Pension Plans and Postretirement Plan liabilities as a result of the Entertainment Distribution | 1,394 | — | 1,394 | ||||||||||||||||||||||||||||
Balance as of June 30, 2020 | $ | (39,322 | ) | $ | (12,535 | ) | $ | (51,857 | ) | Balance as of June 30, 2020 | $ | (40,248) | $ | (10,225) | $ | (50,473) | |||||||||||||||||||
Pension Plans and Postretirement Plan | Cumulative Translation Adjustments | Unrealized Gain (Loss) on Available-for-sale Securities (b) | Accumulated Other Comprehensive Loss | |||||||||||||
Balance as of June 30, 2018 | $ | (40,846 | ) | $ | (502 | ) | $ | (5,570 | ) | $ | (46,918 | ) | ||||
Reclassification of unrealized loss on available-for sale securities | 0 | 0 | 5,570 | 5,570 | ||||||||||||
Other comprehensive loss: | ||||||||||||||||
Other comprehensive loss before reclassifications | (2,565 | ) | (4,341 | ) | 0 | (6,906 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive loss (a) | | 1,331 | | 0 | 0 | 1,331 | ||||||||||
Other comprehensive loss, total | (1,234 | ) | (4,341 | ) | 0 | (5,575 | ) | |||||||||
Balance as of June 30, 2019 | $ | (42,080 | ) | $ | (4,843 | ) | $ | 0 | $ | (46,923 | ) | |||||
Years Ended June 30, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Current expense (benefit): | ||||||||||||
Federal | $ | (6,400 | ) | $ | 8,558 | $ | 0 | |||||
State and other | (2,491 | ) | 7,009 | 814 | ||||||||
(8,891) | 15,567 | 814 | ||||||||||
Deferred expense (benefit): | ||||||||||||
Federal | (627 | ) | (6,083 | ) | (350 | ) | ||||||
State and other | 147 | (4,438 | ) | (21 | ) | |||||||
(480) | (10,521) | (371) | ||||||||||
Income tax expense (benefit) | $ | (9,371 | ) | $ | 5,046 | $ | 443 | |||||
Years Ended June 30, | ||||||||||||||||||||
2022 | 2021 | 2020 | ||||||||||||||||||
Current expense (benefit): | ||||||||||||||||||||
Federal | $ | (620) | $ | 45,354 | $ | 58,530 | ||||||||||||||
State and other | 6,105 | 31,728 | 34,460 | |||||||||||||||||
5,485 | 77,082 | 92,990 | ||||||||||||||||||
Deferred expense (benefit): | ||||||||||||||||||||
Federal | (27,904) | (47,149) | 7,080 | |||||||||||||||||
State and other | (3,366) | (24,208) | 1,620 | |||||||||||||||||
(31,270) | (71,357) | 8,700 | ||||||||||||||||||
Income tax expense (benefit) | $ | (25,785) | $ | 5,725 | $ | 101,690 |
Years Ended June 30, | Years Ended June 30, | |||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2022 | 2021 | 2020 | |||||||||||||||||||||||||||
Federal tax expense (benefit) at statutory federal rate | $ | (85,036 | ) | $ | (1,592 | ) | $ | (4,204 | ) | Federal tax expense (benefit) at statutory federal rate | $ | (45,346) | $ | (33,767) | $ | 52,816 | ||||||||||||||||
State income taxes, net of federal benefit | (40,546 | ) | 4,259 | 1,996 | State income taxes, net of federal benefit | (10,003) | (4,705) | 31,111 | ||||||||||||||||||||||||
Change in the estimated applicable tax rate used to determine deferred taxes | (3,368 | ) | 1,237 | (454 | ) | Change in the estimated applicable tax rate used to determine deferred taxes | (4,199) | 3,117 | (662) | |||||||||||||||||||||||
Nondeductible transaction costs | 0 | 6,961 | 0 | Nondeductible transaction costs | 10,723 | 87 | 6,961 | |||||||||||||||||||||||||
Federal tax credits | 0 | (1,480 | ) | (1,900 | ) | Federal tax credits | (2,150) | — | (1,480) | |||||||||||||||||||||||
GAAP income of consolidated partnership attributable to non-controlling interest | 3,857 | 6,701 | 2,571 | GAAP income of consolidated partnership attributable to non-controlling interest | (892) | 3,857 | 6,703 | |||||||||||||||||||||||||
Tax effect of indefinite intangible amortization | 1,072 | 993 | 449 | Tax effect of indefinite intangible amortization | — | 1,072 | 993 | |||||||||||||||||||||||||
Change in valuation allowance | 109,588 | (14,895 | ) | (3,148 | ) | Change in valuation allowance | 11,402 | 25,704 | 1,605 | |||||||||||||||||||||||
Nondeductible officers’ compensation (a) | 5,311 | 4,407 | 7,655 | |||||||||||||||||||||||||||||
Nondeductible officers’ compensation | Nondeductible officers’ compensation | 12,759 | 9,646 | 6,454 | ||||||||||||||||||||||||||||
Nondeductible expenses | 409 | 690 | 809 | Nondeductible expenses | 975 | 379 | 728 | |||||||||||||||||||||||||
Excess tax benefit related to shared based-payments awards | (1,066 | ) | (2,276 | ) | (3,376 | ) | ||||||||||||||||||||||||||
Excess tax benefit related to share-based payment awards | Excess tax benefit related to share-based payment awards | (87) | (105) | (3,852) | ||||||||||||||||||||||||||||
Other | 408 | 41 | 45 | Other | 1,033 | 440 | 313 | |||||||||||||||||||||||||
Income tax expense (benefit) | $ | (9,371 | ) | $ | 5,046 | $ | 443 | Income tax expense (benefit) | $ | (25,785) | $ | 5,725 | $ | 101,690 | ||||||||||||||||||
June 30, | |||||||||||
2022 | 2021 | ||||||||||
Deferred tax asset: | |||||||||||
Net operating loss (“NOL”) carryforwards | $ | 182,629 | $ | 172,432 | |||||||
Tax credit carryforwards | 2,682 | 532 | |||||||||
Accrued employee benefits | 44,487 | 38,756 | |||||||||
Restricted stock units and stock options | 18,992 | 18,189 | |||||||||
Deferred revenue | — | 29,540 | |||||||||
Right-of-use lease assets and lease liabilities, net | 14,531 | 7,864 | |||||||||
Investments | 74,027 | 40,237 | |||||||||
Other | — | 6,912 | |||||||||
Total deferred tax assets | $ | 337,348 | $ | 314,462 | |||||||
Less valuation allowance | (80,835) | (69,900) | |||||||||
Net deferred tax assets | $ | 256,513 | $ | 244,562 | |||||||
Deferred tax liabilities: | |||||||||||
Intangible and other assets | $ | (307,964) | $ | (313,122) | |||||||
Property and equipment | (89,750) | (120,981) | |||||||||
Prepaid expenses | (5,472) | (4,620) | |||||||||
Deferred interest | (3,282) | (6,164) | |||||||||
Deferred revenue | (9,332) | — | |||||||||
Other | (4,154) | — | |||||||||
Total deferred tax liabilities | $ | (419,954) | $ | (444,887) | |||||||
Net deferred tax liability | $ | (163,441) | $ | (200,325) |
June 30, | ||||||||
2021 | 2020 | |||||||
Deferred tax asset: | ||||||||
Net operating loss (“NOL”) carryforwards | $ | 166,420 | $ | 1,575 | ||||
Tax credit carryforwards | 532 | 532 | ||||||
Accrued employee benefits | 24,825 | 26,538 | ||||||
Restricted stock units and stock options | 12,527 | 14,267 | ||||||
Deferred revenue | 42,616 | 45,050 | ||||||
Right-of-use | 8,234 | 0 | ||||||
Investments | 63,639 | 39,737 | ||||||
Other | 0 | 1,062 | ||||||
Total deferred tax assets | $ | 318,793 | $ | 128,761 | ||||
Less valuation allowance | (145,178 | ) | (29,952 | ) | ||||
Net deferred tax assets | $ | 173,615 | $ | 98,809 | ||||
Deferred tax liabilities: | ||||||||
Intangible and other assets | $ | (38,578 | ) | $ | (39,893 | ) | ||
Property and equipment | (124,864 | ) | (59,077 | ) | ||||
Prepaid expenses | (4,355 | ) | (7,595 | ) | ||||
Capitalized interest related to MSG Sphere | (16,408 | ) | (4,694 | ) | ||||
Other | (1,382 | ) | 0 | |||||
Total deferred tax liabilities | $ | (185,587 | ) | $ | (111,259 | ) | ||
Net deferred tax liability | $ | (11,972 | ) | $ | (12,450 | ) | ||
Years Ended June 30, | ||||||||||||||||||||
2022 | 2021 | 2020 | ||||||||||||||||||
Revenues | $ | 94,662 | $ | 37,914 | $ | 5,817 | ||||||||||||||
Operating expenses (credits): | ||||||||||||||||||||
Media rights fees | $ | 163,131 | $ | 143,464 | $ | 140,058 | ||||||||||||||
Revenue sharing expenses | 17,279 | 558 | 110,002 | |||||||||||||||||
Allocation of charges for venue usage to MSG Sports | — | — | (46,072) | |||||||||||||||||
Reimbursement under Arena License Arrangements | (25,827) | (9,717) | — | |||||||||||||||||
General and administrative with MSG Sports — net of TSA credits | (38,254) | (36,502) | (116,946) | |||||||||||||||||
Origination, master control and technical services | 4,880 | 4,784 | 4,690 | |||||||||||||||||
Other operating expenses, net | 4,013 | 4,594 | 11,836 | |||||||||||||||||
Total operating expenses, net (a) | $ | 125,222 | $ | 107,181 | $ | 103,568 |
Years Ended June 30, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Revenues | $ | 49,969 | $ | 18,408 | $ | 18,259 | ||||||
Operating expenses (credits): | ||||||||||||
Revenue sharing expenses | $ | 1,025 | $ | 110,002 | $ | 145,723 | ||||||
Allocation of charges for venue usage to MSG Sports | 0 | (46,072 | ) | (47,093 | ) | |||||||
Reimbursement under Arena License Arrangement | (8,776 | ) | 0 | 0 | ||||||||
Corporate general and administrative — credits with MSG Sports | (36,502 | ) | (116,946 | ) | (116,551 | ) | ||||||
Corporate general and administrative — credits with MSG Networks | (9,616 | ) | (9,772 | ) | (10,362 | ) | ||||||
Consulting fees | 77 | 214 | 1,792 | |||||||||
Advertising expenses | 0 | 506 | 1,037 | |||||||||
Other operating expenses (credits), net | 1,991 | 420 | (198 | ) |
Year ended June 30, 2021 | ||||||||||||||||||||||||
Entertainment | Tao Group Hospitality | Purchase accounting adjustments | Inter- segment eliminations | Total | ||||||||||||||||||||
Revenues | $ | 82,281 | $ | 100,166 | $ | 0 | $ | (2,046 | ) | $ | 180,401 | |||||||||||||
Direct operating expenses | 103,089 | 66,591 | 3,334 | (1,090 | ) | 171,924 | ||||||||||||||||||
Selling, general and administrative expenses | 268,705 | 54,034 | 0 | (25 | ) | 322,714 | ||||||||||||||||||
Depreciation and amortization | 80,142 | 8,955 | 25,567 | 0 | 114,664 | |||||||||||||||||||
Restructuring charges | 21,299 | 0 | 0 | 0 | 21,299 | |||||||||||||||||||
Operating loss | (390,954 | ) | (29,414 | ) | (28,901 | ) | (931 | ) | (450,200 | ) | ||||||||||||||
Loss in equity method investments | (6,858 | ) | ||||||||||||||||||||||
Interest income | 1,273 | |||||||||||||||||||||||
Interest expense | (208 | ) | ||||||||||||||||||||||
Miscellaneous income, net | (a) | 51,062 | ||||||||||||||||||||||
Loss from operations before income taxes | $ | (404,931 | ) | |||||||||||||||||||||
Reconciliation of operating loss to adjusted operating loss: | ||||||||||||||||||||||||
Operating loss | $ | (390,954 | ) | $ | (29,414 | ) | $ | (28,901 | ) | $ | (931 | ) | $ | (450,200 | ) | |||||||||
Add back: | ||||||||||||||||||||||||
Non-cash portion of arena license fees from MSG Sports | (13,026 | ) | 0 | 0 | 0 | (13,026 | ) | |||||||||||||||||
Share-based compensation expense | 47,633 | 5,284 | 0 | 0 | 52,917 | |||||||||||||||||||
Depreciation and amortization | 80,142 | 8,955 | 25,567 | 0 | 114,664 | |||||||||||||||||||
Restructuring charges | 21,299 | 0 | 0 | 0 | 21,299 | |||||||||||||||||||
Other purchase accounting adjustments | 0 | 0 | 3,334 | 0 | 3,334 | |||||||||||||||||||
Adjusted operating loss | $ | (254,906 | ) | $ | (15,175 | ) | $ | 0 | $ | (931 | ) | $ | (271,012 | ) | ||||||||||
Other information: | ||||||||||||||||||||||||
Capital expenditures | (b) | $ | 448,962 | $ | 3,192 | $ | 0 | $ | 0 | $ | 452,154 |
Year Ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||
Entertainment | MSG Networks | Tao Group Hospitality | Purchase accounting adjustments | Inter-segment eliminations | Total | |||||||||||||||||||||||||||||||||
Revenues | $ | 655,392 | $ | 608,155 | $ | 484,947 | $ | — | $ | (23,876) | $ | 1,724,618 | ||||||||||||||||||||||||||
Direct operating expenses | 420,305 | 320,278 | 264,641 | 6,099 | (2,078) | 1,009,245 | ||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 394,551 | 147,007 | 160,991 | — | (20,753) | 681,796 | ||||||||||||||||||||||||||||||||
Depreciation and amortization | 77,177 | 9,394 | 26,021 | 12,037 | — | 124,629 | ||||||||||||||||||||||||||||||||
Impairment and other (gains) losses, net | (245) | — | (3,969) | 1,169 | — | (3,045) | ||||||||||||||||||||||||||||||||
Restructuring charges | 14,238 | 452 | — | — | — | 14,690 | ||||||||||||||||||||||||||||||||
Operating income (loss) | (250,634) | 131,024 | 37,263 | (19,305) | (1,045) | (102,697) | ||||||||||||||||||||||||||||||||
Loss in equity method investments | (5,027) | |||||||||||||||||||||||||||||||||||||
Interest income | 4,210 | |||||||||||||||||||||||||||||||||||||
Interest expense | (27,155) | |||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | (35,815) | |||||||||||||||||||||||||||||||||||||
Other expense, net (a) | (49,448) | |||||||||||||||||||||||||||||||||||||
Loss from operations before income taxes | $ | (215,932) | ||||||||||||||||||||||||||||||||||||
Reconciliation of operating loss to adjusted operating loss: | ||||||||||||||||||||||||||||||||||||||
Operating income (loss) | $ | (250,634) | $ | 131,024 | $ | 37,263 | $ | (19,305) | $ | (1,045) | $ | (102,697) | ||||||||||||||||||||||||||
Add back: | ||||||||||||||||||||||||||||||||||||||
Non-cash portion of arena license fees from MSG Sports | (27,754) | — | — | — | — | (27,754) | ||||||||||||||||||||||||||||||||
Share-based compensation expense | 47,813 | 17,092 | 7,647 | — | — | 72,552 | ||||||||||||||||||||||||||||||||
Depreciation and amortization | 77,177 | 9,394 | 26,021 | 12,037 | — | 124,629 | ||||||||||||||||||||||||||||||||
Restructuring charges | 14,238 | 452 | — | — | — | 14,690 | ||||||||||||||||||||||||||||||||
Impairment and other (gains) losses, net | (245) | — | (3,969) | 1,169 | — | (3,045) | ||||||||||||||||||||||||||||||||
Merger and acquisition related costs | 20,834 | 27,683 | 247 | — | — | 48,764 | ||||||||||||||||||||||||||||||||
Amortization for capitalized cloud computing costs | 95 | 176 | — | — | — | 271 | ||||||||||||||||||||||||||||||||
Other purchase accounting adjustments | — | — | — | 6,099 | — | 6,099 | ||||||||||||||||||||||||||||||||
Remeasurement of deferred compensation plan liabilities | 46 | — | — | — | — | 46 | ||||||||||||||||||||||||||||||||
Adjusted operating income (loss) | $ | (118,430) | $ | 185,821 | $ | 67,209 | $ | — | $ | (1,045) | $ | 133,555 | ||||||||||||||||||||||||||
Other information: | ||||||||||||||||||||||||||||||||||||||
Capital expenditures | $ | 732,891 | $ | 3,673 | $ | 23,309 | $ | — | $ | — | $ | 759,873 |
Year ended June 30, 2020 | ||||||||||||||||||||||||
Entertainment | Tao Group Hospitality | Purchase accounting adjustments | Inter- segment eliminations | Total | ||||||||||||||||||||
Revenues | $ | 585,208 | $ | 180,201 | $ | 0 | $ | (2,473 | ) | $ | 762,936 | |||||||||||||
Direct operating expenses | 388,643 | 116,638 | 4,361 | (1,520 | ) | 508,122 | ||||||||||||||||||
Selling, general and administrative expenses | 282,043 | 63,049 | 6 | (461 | ) | 344,637 | ||||||||||||||||||
Depreciation and amortization | 84,289 | 8,156 | 12,454 | 0 | 104,899 | |||||||||||||||||||
Impairment for intangibles, long-lived assets, and goodwill | 0 | 94,946 | 10,871 | 0 | 105,817 | |||||||||||||||||||
Gain on disposal of assets held for sale | (240,783 | ) | 0 | 0 | 0 | (240,783 | ) | |||||||||||||||||
Operating income (loss) | 71,016 | (102,588 | ) | (27,692 | ) | (492 | ) | (59,756 | ) | |||||||||||||||
Loss in equity method investments | (4,433 | ) | ||||||||||||||||||||||
Interest income | 17,993 | |||||||||||||||||||||||
Interest expense | (240 | ) | ||||||||||||||||||||||
Miscellaneous income, net | (a) | 38,855 | ||||||||||||||||||||||
Loss from operations before income taxes | $ | (7,581 | ) | |||||||||||||||||||||
Reconciliation of operating income (loss) to adjusted operating income (loss): | ||||||||||||||||||||||||
Operating income (loss) | $ | 71,016 | $ | (102,588 | ) | $ | (27,692 | ) | $ | (492 | ) | $ | (59,756 | ) | ||||||||||
Add back: | ||||||||||||||||||||||||
Share-based compensation expense | 41,227 | 963 | 0 | 0 | 42,190 | |||||||||||||||||||
Depreciation and amortization | 84,289 | 8,156 | 12,454 | 0 | 104,899 | |||||||||||||||||||
Impairment for intangibles, long-lived assets, and goodwill | 0 | 94,946 | 10,871 | 0 | 105,817 | |||||||||||||||||||
Gain on disposal of assets held for sale | (240,783 | ) | 0 | 0 | 0 | (240,783 | ) | |||||||||||||||||
Other purchase accounting adjustments | 0 | 0 | 4,367 | 0 | 4,367 | |||||||||||||||||||
Adjusted operating income (loss) | $ | (44,251 | ) | $ | 1,477 | $ | 0 | $ | (492 | ) | $ | (43,266 | ) | |||||||||||
Other information: | ||||||||||||||||||||||||
Capital expenditures | (b) | $ | 448,944 | $ | 3,482 | $ | 0 | $ | 0 | $ | 452,426 |
Year Ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||
Entertainment | MSG Networks | Tao Group Hospitality | Purchase accounting adjustments | Inter-segment eliminations | Total | |||||||||||||||||||||||||||||||||
Revenues | $ | 82,281 | $ | 647,510 | $ | 100,166 | $ | — | $ | (15,744) | $ | 814,213 | ||||||||||||||||||||||||||
Direct operating expenses | 103,089 | 262,859 | 66,591 | 3,334 | (1,090) | 434,783 | ||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 268,705 | 115,339 | 54,034 | — | (13,723) | 424,355 | ||||||||||||||||||||||||||||||||
Depreciation and amortization | 80,142 | 7,335 | 8,955 | 25,567 | — | 121,999 | ||||||||||||||||||||||||||||||||
Restructuring charges | 21,299 | — | — | — | — | 21,299 | ||||||||||||||||||||||||||||||||
Operating income (loss) | (390,954) | 261,977 | (29,414) | (28,901) | (931) | (188,223) | ||||||||||||||||||||||||||||||||
Loss in equity method investments | (6,858) | |||||||||||||||||||||||||||||||||||||
Interest income | 3,222 | |||||||||||||||||||||||||||||||||||||
Interest expense | (20,423) | |||||||||||||||||||||||||||||||||||||
Other income, net (a) | 51,488 | |||||||||||||||||||||||||||||||||||||
Loss from operations before income taxes | $ | (160,794) | ||||||||||||||||||||||||||||||||||||
Reconciliation of operating income (loss) to adjusted operating income (loss): | ||||||||||||||||||||||||||||||||||||||
Operating income (loss) | $ | (390,954) | $ | 261,977 | $ | (29,414) | $ | (28,901) | $ | (931) | $ | (188,223) | ||||||||||||||||||||||||||
Add back: | ||||||||||||||||||||||||||||||||||||||
Non-cash portion of arena license fees from MSG Sports | (13,026) | — | — | — | — | (13,026) | ||||||||||||||||||||||||||||||||
Share-based compensation expense | 47,633 | 17,667 | 5,284 | — | — | 70,584 | ||||||||||||||||||||||||||||||||
Depreciation and amortization | 80,142 | 7,335 | 8,955 | 25,567 | — | 121,999 | ||||||||||||||||||||||||||||||||
Restructuring charges | 21,299 | — | — | — | — | 21,299 | ||||||||||||||||||||||||||||||||
Merger and acquisition related costs | 16,080 | 4,502 | 3,638 | — | — | 24,220 | ||||||||||||||||||||||||||||||||
Other purchase accounting adjustments | — | — | — | 3,334 | — | 3,334 | ||||||||||||||||||||||||||||||||
Adjusted operating income (loss) | $ | (238,826) | $ | 291,481 | $ | (11,537) | $ | — | $ | (931) | $ | 40,187 | ||||||||||||||||||||||||||
Other information: | ||||||||||||||||||||||||||||||||||||||
Capital expenditures | $ | 448,962 | $ | 3,853 | $ | 3,192 | $ | — | $ | — | $ | 456,007 | ||||||||||||||||||||||||||
Year ended June 30, 2019 | ||||||||||||||||||||||||
Entertainment | Tao Group Hospitality | Purchase accounting adjustments | Inter- segment eliminations | Total | ||||||||||||||||||||
Revenues | $ | 797,058 | $ | 253,651 | $ | 0 | $ | (1,800 | ) | $ | 1,048,909 | |||||||||||||
Direct operating expenses | 513,305 | 153,969 | 4,240 | (873 | ) | 670,641 | ||||||||||||||||||
Selling, general and administrative expenses | 239,321 | 75,529 | 524 | (852 | ) | 314,522 | ||||||||||||||||||
Depreciation and amortization | 87,005 | 6,437 | 15,901 | 0 | 109,343 | |||||||||||||||||||
Operating income (loss) | (42,573 | ) | 17,716 | (20,665 | ) | (75 | ) | (45,597 | ) | |||||||||||||||
Equity in earnings of equity method investments | 7,062 | |||||||||||||||||||||||
Interest income | 30,163 | |||||||||||||||||||||||
Interest expense | (5,587 | ) | ||||||||||||||||||||||
Miscellaneous expense, net | (a) | (6,061 | ) | |||||||||||||||||||||
Loss from operations before income taxes | $ | (20,020 | ) | |||||||||||||||||||||
Reconciliation of operating income (loss) to adjusted operating income (loss): | ||||||||||||||||||||||||
Operating income (loss) | $ | (42,573 | ) | $ | 17,716 | $ | (20,665 | ) | $ | (75 | ) | $ | (45,597 | ) | ||||||||||
Add back: | ||||||||||||||||||||||||
Share-based compensation expense | 35,264 | 137 | 0 | 0 | 35,401 | |||||||||||||||||||
Depreciation and amortization | 87,005 | 6,437 | 15,901 | 0 | 109,343 | |||||||||||||||||||
Other purchase accounting adjustments | 0 | 0 | 4,764 | 0 | 4,764 | |||||||||||||||||||
Adjusted operating income (loss) | $ | 79,696 | $ | 24,290 | $ | 0 | $ | (75 | ) | $ | 103,911 | |||||||||||||
Other information: | ||||||||||||||||||||||||
Capital expenditures | (b) | $ | 168,981 | $ | 15,021 | $ | 0 | $ | 0 | $ | 184,002 |
Year Ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||||
Entertainment | MSG Networks | Tao Group Hospitality | Purchase accounting adjustments | Inter-segment eliminations | Total | |||||||||||||||||||||||||||||||||
Revenues | $ | 585,208 | $ | 685,797 | $ | 180,201 | $ | — | $ | (15,188) | $ | 1,436,018 | ||||||||||||||||||||||||||
Direct operating expenses | 388,643 | 282,837 | 116,638 | 4,361 | (1,980) | $ | 790,499 | |||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 282,043 | 100,829 | 63,049 | 6 | (12,716) | $ | 433,211 | |||||||||||||||||||||||||||||||
Depreciation and amortization | 84,289 | 7,163 | 8,156 | 12,454 | — | $ | 112,062 | |||||||||||||||||||||||||||||||
Impairment for intangibles, long-lived assets, and goodwill | — | — | 94,946 | 10,871 | — | $ | 105,817 | |||||||||||||||||||||||||||||||
Gain on disposal of assets held for sale | (240,783) | — | — | — | — | $ | (240,783) | |||||||||||||||||||||||||||||||
Operating income (loss) | 71,016 | 294,968 | (102,588) | (27,692) | (492) | 235,212 | ||||||||||||||||||||||||||||||||
Loss in equity method investments | (4,433) | |||||||||||||||||||||||||||||||||||||
Interest income | 22,227 | |||||||||||||||||||||||||||||||||||||
Interest expense | (36,564) | |||||||||||||||||||||||||||||||||||||
Other income, net (a) | 35,061 | |||||||||||||||||||||||||||||||||||||
Income from operations before income taxes | $ | 251,503 | ||||||||||||||||||||||||||||||||||||
Reconciliation of operating income (loss) to adjusted operating income (loss): | ||||||||||||||||||||||||||||||||||||||
Operating income (loss) | $ | 71,016 | $ | 294,968 | $ | (102,588) | $ | (27,692) | $ | (492) | $ | 235,212 | ||||||||||||||||||||||||||
Add back: | ||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | 41,227 | 19,235 | 963 | — | — | 61,425 | ||||||||||||||||||||||||||||||||
Depreciation and amortization | 84,289 | 7,163 | 8,156 | 12,454 | — | 112,062 | ||||||||||||||||||||||||||||||||
Impairment for intangibles, long-lived assets, and goodwill | — | — | 94,946 | 10,871 | — | 105,817 | ||||||||||||||||||||||||||||||||
Gain on disposal of assets held for sale | (240,783) | — | — | — | — | (240,783) | ||||||||||||||||||||||||||||||||
Other purchase accounting adjustments | — | — | — | 4,367 | — | 4,367 | ||||||||||||||||||||||||||||||||
Adjusted operating income (loss) | $ | (44,251) | $ | 321,366 | $ | 1,477 | $ | — | $ | (492) | $ | 278,100 | ||||||||||||||||||||||||||
Other information: | ||||||||||||||||||||||||||||||||||||||
Capital expenditures | $ | 448,944 | $ | 2,814 | $ | 3,482 | $ | — | $ | — | $ | 455,240 |
Years Ended June 30, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Realized and unrealized gain (loss) on equity investments with readily determinable fair value, see Note 8 for further detail. | $ | 51,178 | $ | 37,628 | $ | (3,497 | ) | |||||
Non-service cost components of net periodic pension and postretirement benefit costs | (264 | ) | (1,239 | ) | (2,276 | ) | ||||||
Dividend income from equity investments | 0 | 722 | 1,202 | |||||||||
Loss on extinguishment of debt associated with Tao Group Hospitality | 0 | 0 | (3,977 | ) | ||||||||
Measurement alternative adjustments for equity investments without readily determinable fair value | 0 | (532 | ) | 3,340 | ||||||||
Others, net, primarily reflects the impact of Tao Group Hospitality three-month lag elimination in Fiscal Year 2020. | 148 | 2,276 | (853 | ) | ||||||||
$ | 51,062 | $ | 38,855 | $ | (6,061 | ) | ||||||
Years Ended June 30, | ||||||||||||||||||||
2022 | 2021 | 2020 | ||||||||||||||||||
Realized and unrealized gain (loss) on equity investments with readily determinable fair value, see Note 9 for further detail | $ | (49,842) | $ | 51,178 | $ | 37,628 | ||||||||||||||
Non-service cost components of net periodic pension and postretirement benefit costs, see Note 16 for further detail | 3 | (1,090) | (2,269) | |||||||||||||||||
Dividend income from equity investments | — | — | 722 | |||||||||||||||||
Debt financing costs | — | — | (2,764) | |||||||||||||||||
Measurement alternative adjustments for equity investments without readily determinable fair value | — | — | (532) | |||||||||||||||||
Others, net, primarily reflects the impact of Tao Group Hospitality three-month lag elimination in Fiscal Year 2020 | 391 | 1,400 | 2,276 | |||||||||||||||||
$ | (49,448) | $ | 51,488 | $ | 35,061 |
June 30, 2022 | June 30, 2021 | |||||||||||||
Customer A | 14 | % | 16 | % | ||||||||||
Customer B | 12 | % | 15 | % | ||||||||||
Customer C | 10 | % | 17 | % | ||||||||||
Years Ended June 30, | ||||||||||||||||||||
2022 | 2021 | 2020 | ||||||||||||||||||
Customer 1 | 10 | % | 21 | % | 12 | % | ||||||||||||||
Customer 2 | 9 | % | 20 | % | 12 | % | ||||||||||||||
As of June 30, 2021 | As of June 30, 2020 | |||||||||||||||||||||||
As Previously Issued | Adjustment | As Revised | As Previously Issued | Adjustment | As Revised | |||||||||||||||||||
Property and equipment, net | $ | 2,099,347 | $ | 49,228 | $ | 2,148,575 | $ | 1,646,115 | $ | 14,338 | $ | 1,660,453 | ||||||||||||
Total assets | 4,267,341 | 49,228 | 4,316,569 | 3,719,206 | 14,338 | 3,733,544 | ||||||||||||||||||
Additional paid-in capital | 2,744,866 | 13,977 | 2,758,843 | 2,751,318 | 13,977 | 2,765,295 | ||||||||||||||||||
Retained earnings (accumulated deficit) | (270,146 | ) | 35,251 | (234,895 | ) | 141,936 | 361 | 142,297 | ||||||||||||||||
Total Madison Square Garden Entertainment Corp. stockholders’ equity | 2,447,841 | 49,228 | 2,497,069 | 2,841,637 | 14,338 | 2,855,975 | ||||||||||||||||||
Total equity | 2,459,745 | 49,228 | 2,508,973 | 2,853,840 | 14,338 | 2,868,178 | ||||||||||||||||||
Total liabilities, redeemable noncontrollinginterests and equity | 4,267,341 | 49,228 | 4,316,569 | 3,719,206 | 14,338 | 3,733,544 |
Year ended June 30, 2021 | Year ended June 30, 2020 | Year ended June 30, 2019 | ||||||||||||||||||||||||||||||||||
As Previously Issued | Adjustment | As Revised | As Previously Issued | Adjustment | As Revised | As Previously Issued | Adjustment | As Revised | ||||||||||||||||||||||||||||
Interest expense | $ | (35,098 | ) | $ | 34,890 | $ | (208 | ) | $ | (2,300 | ) | $ | 2,060 | $ | (240 | ) | $ | (15,262 | ) | $ | 9,675 | $ | (5,587 | ) | ||||||||||||
Loss from operations before income taxes | (439,821 | ) | 34,890 | (404,931 | ) | (9,641 | ) | 2,060 | (7,581 | ) | (29,695 | ) | 9,675 | (20,020 | ) | |||||||||||||||||||||
Net loss | (430,450 | ) | 34,890 | (395,560 | ) | (14,687 | ) | 2,060 | (12,627 | ) | (30,138 | ) | 9,675 | (20,463 | ) | |||||||||||||||||||||
Net income (loss) attributable to Madison Square Garden Entertainment Corp.’s stockholders | (412,082 | ) | 34,890 | (377,192 | ) | 17,234 | 2,060 | 19,294 | (17,894 | ) | 9,675 | (8,219 | ) | |||||||||||||||||||||||
Basic earnings (loss) per common share attributable to Madison Square Garden Entertainment Corp.’s stockholders | (17.39 | ) | 1.44 | (15.95 | ) | 0.72 | 0.09 | 0.81 | (0.75 | ) | 0.40 | (0.35 | ) | |||||||||||||||||||||||
Diluted earnings (loss) per common share attributable to Madison Square Garden Entertainment Corp.’s stockholders | (17.39 | ) | 1.44 | (15.95 | ) | 0.72 | 0.09 | 0.81 | (0.75 | ) | 0.40 | (0.35 | ) |
Year ended June 30, 2021 | Year ended June 30, 2020 | Year ended June 30, 2019 | ||||||||||||||||||||||||||||||||||
As Previously Issued | Adjustment | As Revised | As Previously Issued | Adjustment | As Revised | As Previously Issued | Adjustment | As Revised | ||||||||||||||||||||||||||||
Net loss | $ | (430,450 | ) | $ | 34,890 | $ | (395,560 | ) | $ | (14,687 | ) | $ | 2,060 | $ | (12,627 | ) | $ | (30,138 | ) | $ | 9,675 | $ | (20,463 | ) | ||||||||||||
Comprehensive loss | (405,713 | ) | 34,890 | (370,823 | ) | (21,015 | ) | 2,060 | (18,955 | ) | (35,713 | ) | 9,675 | (26,038 | ) | |||||||||||||||||||||
Comprehensive income (loss) attributable to Madison Square Garden Entertainment Corp.’s stockholders | (387,345 | ) | 34,890 | (352,455 | ) | 10,906 | 2,060 | 12,966 | (23,469 | ) | 9,675 | (13,794 | ) |
Year ended June 30, 2021 | Year e nded June 30, 2020 | Year e nded June 30, 2019 | ||||||||||||||||||||||||||||||||||
As Previously Issued | Adjustment | As Revised | As Previously Issued | Adjustment | As Revised | As Previously Issued | Adjustment | As Revised | ||||||||||||||||||||||||||||
Net loss | $ | (430,450 | ) | $ | 34,890 | $ | (395,560 | ) | $ | (14,687 | ) | $ | 2,060 | $ | (12,627 | ) | $ | (30,138 | ) | $ | 9,675 | $ | (20,463 | ) | ||||||||||||
Net cash provided by (used in) operating activities | (289,480 | ) | 34,890 | (254,590 | ) | 96,031 | 2,060 | 98,091 | 91,724 | 9,675 | 101,399 | |||||||||||||||||||||||||
Capitalized interest | 0 | (34,890 | ) | (34,890 | ) | 0 | (2,060 | ) | (2,060 | ) | 0 | (9,675 | ) | (9,675 | ) | |||||||||||||||||||||
Net cash used in in v esting activities | (84,440 | ) | (34,890 | ) | (119,330 | ) | (389,657 | ) | (2,060 | ) | (391,717 | ) | (228,063 | ) | (9,675 | ) | (237,738 | ) |
Three Months Ended | Year Ended June 30, 2022 | ||||||||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | ||||||||||||||||||||||||||
2021 | 2021 | 2022 | 2022 | ||||||||||||||||||||||||||
Revenues | $ | 294,510 | $ | 516,439 | $ | 460,127 | $ | 453,542 | $ | 1,724,618 | |||||||||||||||||||
Operating expenses | 377,848 | 481,089 | 458,084 | 510,294 | 1,827,315 | ||||||||||||||||||||||||
Operating income (loss) | $ | (83,338) | $ | 35,350 | $ | 2,043 | $ | (56,752) | $ | (102,697) | |||||||||||||||||||
Net income (loss) | $ | (76,655) | $ | 5,019 | $ | (19,306) | $ | (99,205) | $ | (190,147) | |||||||||||||||||||
Net income (loss) attributable to Madison Square Garden Entertainment Corp.’s stockholders | $ | (79,232) | $ | 2,271 | $ | (17,491) | $ | (99,943) | $ | (194,395) | |||||||||||||||||||
Basic earnings (loss) per common share attributable to Madison Square Garden Entertainment Corp.’s stockholders | $ | (2.32) | $ | 0.07 | $ | (0.51) | $ | (3.00) | $ | (5.77) | |||||||||||||||||||
Diluted earnings (loss) per common share attributable to Madison Square Garden Entertainment Corp.’s stockholders | $ | (2.32) | $ | 0.07 | $ | (0.51) | $ | (3.00) | $ | (5.77) |
Three Months Ended | Year Ended June 30, 2021 | ||||||||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | ||||||||||||||||||||||||||
2020 | 2020 | 2021 | 2021 | ||||||||||||||||||||||||||
Revenues | $ | 170,546 | $ | 168,752 | $ | 214,318 | $ | 260,597 | $ | 814,213 | |||||||||||||||||||
Operating expenses | 229,225 | 215,564 | 253,058 | 304,589 | 1,002,436 | ||||||||||||||||||||||||
Operating loss | $ | (58,679) | $ | (46,812) | $ | (38,740) | $ | (43,992) | $ | (188,223) | |||||||||||||||||||
Net loss | $ | (40,316) | $ | (60,075) | $ | (25,838) | $ | (40,290) | $ | (166,519) | |||||||||||||||||||
Net loss attributable to Madison Square Garden Entertainment Corp.’s stockholders | $ | (35,797) | $ | (55,831) | $ | (18,260) | $ | (38,263) | $ | (148,151) | |||||||||||||||||||
Basic loss per common share attributable to Madison Square Garden Entertainment Corp.’s stockholders | $ | (1.05) | $ | (1.64) | $ | (0.79) | $ | (1.12) | $ | (4.60) | |||||||||||||||||||
Diluted loss per common share attributable to Madison Square Garden Entertainment Corp.’s stockholders | $ | (1.05) | $ | (1.64) | $ | (0.79) | $ | (1.12) | $ | (4.60) |