Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2017 | Jul. 31, 2017 | Dec. 30, 2016 | |
Entity Registrant Name | Madison Square Garden Co | ||
Trading Symbol | MSG | ||
Entity Central Index Key | 1,636,519 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 3,230,334,595 | ||
Class A Common Stock [Member] | |||
Entity Common Stock, Shares Outstanding | 19,014,264 | ||
Class B Common Stock [Member] | |||
Entity Common Stock, Shares Outstanding | 4,529,517 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 | |
Current Assets: | |||
Cash and cash equivalents | $ 1,238,114 | $ 1,444,317 | |
Restricted cash | 34,000 | 27,091 | |
Accounts receivable, net | 102,085 | 75,998 | |
Net related party receivables, current | 2,714 | 4,079 | |
Prepaid expenses | 23,358 | 27,031 | |
Other current assets | 49,458 | 25,337 | |
Total current assets | 1,449,729 | 1,603,853 | |
Net related party receivables, noncurrent | 0 | 1,710 | |
Investments and loans to nonconsolidated affiliates | 242,287 | 263,546 | |
Property and equipment, net | 1,159,271 | 1,160,609 | |
Amortizable intangible assets, net | 256,975 | 15,729 | |
Indefinite-lived intangible assets | 166,850 | 166,850 | |
Goodwill | [1] | 380,087 | 277,166 |
Other assets | 57,554 | 54,487 | |
Total assets | 3,712,753 | 3,543,950 | |
Current Liabilities: | |||
Accounts payable | 24,084 | 13,935 | |
Net related party payables | 17,576 | 15,275 | |
Accrued liabilities: | |||
Employee related costs | 138,858 | 119,357 | |
Other accrued liabilities | 191,344 | 133,832 | |
Deferred revenue | 390,180 | 332,416 | |
Total current liabilities | 762,042 | 614,815 | |
Long-term debt, net of deferred financing costs | 105,433 | ||
Defined benefit and other postretirement obligations | 52,997 | 66,035 | |
Other employee related costs | 29,399 | 32,921 | |
Deferred tax liabilities, net | 196,436 | 194,583 | |
Other liabilities | 65,955 | 49,175 | |
Total liabilities | 1,212,262 | 957,529 | |
Commitments and contingencies (see Note 8) | |||
Redeemable noncontrolling interests | 80,630 | ||
The Madison Square Garden Company Stockholders’ Equity: | |||
Preferred Stock, Value, Outstanding | 0 | 0 | |
Additional paid-in capital | 2,832,516 | 2,806,352 | |
Treasury stock, at cost, 1,433 and 671 shares as of June 30, 2017 and 2016, respectively | (242,077) | (101,882) | |
Accumulated deficit | (148,410) | (75,687) | |
Accumulated other comprehensive loss | (34,115) | (42,611) | |
Total The Madison Square Garden Company stockholders’ equity | 2,408,163 | 2,586,421 | |
Nonredeemable noncontrolling interests | 11,698 | ||
Total equity | 2,419,861 | 2,586,421 | |
Total liabilities, redeemable noncontrolling interests and equity | 3,712,753 | 3,543,950 | |
Class A Common Stock [Member] | |||
The Madison Square Garden Company Stockholders’ Equity: | |||
Common stock, value issued | 204 | 204 | |
Class B Common Stock [Member] | |||
The Madison Square Garden Company Stockholders’ Equity: | |||
Common stock, value issued | $ 45 | $ 45 | |
[1] | The increase in the carrying amount of goodwill, as compared to June 30, 2016, in the MSG Entertainment segment was due to the purchase price allocation for the BCE and TAO Group acquisitions during the first and third quarters of fiscal year 2017, respectively. The goodwill that arose from these acquisitions was valued using unobservable inputs within Level III of the fair value hierarchy, primarily from utilizing the discounted cash flow model, which is an income-based approach that allocates to goodwill any purchase price not specifically assigned to intangibles, fixed assets, working capital or noncontrolling interests. Goodwill recognized in these acquisitions is expected to be deductible for tax purposes. See Note 3 for more information on the allocation of the purchase price and goodwill recognized in connection with these acquisitions. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2017 | Jun. 30, 2016 |
Preferred stock, par value (dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 15,000,000 | 15,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Treasury Stock, Shares | 1,433,000 | 671,000 |
Class A Common Stock [Member] | ||
Common stock, par value (dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 120,000,000 | 120,000,000 |
Common stock, shares outstanding | 19,014,000 | 19,777,000 |
Class B Common Stock [Member] | ||
Common stock, par value (dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares outstanding | 4,530,000 | 4,530,000 |
Consolidated and Combined State
Consolidated and Combined Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | ||||
Revenues (a) | [1] | $ 1,318,452 | $ 1,115,311 | $ 1,071,551 | ||
Operating expenses: | ||||||
Direct operating expenses (b) | [2] | 861,381 | 737,857 | 724,881 | ||
Selling, general and administrative expenses (c) | [3] | 410,039 | 333,603 | 238,318 | ||
Depreciation and amortization | 107,388 | 102,482 | 108,758 | |||
Operating loss | (60,356) | (58,631) | (406) | |||
Other income (expense): | ||||||
Loss in equity method investments | (29,976) | (19,099) | (40,590) | |||
Interest income (d) | [4] | 11,836 | 6,782 | 3,056 | ||
Interest expense | (4,189) | (2,028) | (2,498) | |||
Miscellaneous income (expense) | 1,492 | [5] | (4,017) | [5] | 190 | |
Nonoperating income (expense) | (20,837) | (18,362) | (39,842) | |||
Loss from operations before income taxes | (81,193) | (76,993) | (40,248) | |||
Income tax benefit (expense) | 4,404 | (297) | (436) | |||
Net loss | (76,789) | (77,290) | (40,684) | |||
Less: Net income attributable to nonredeemable noncontrolling interests | 304 | |||||
Less: Net loss attributable to redeemable noncontrolling interests | (4,370) | |||||
Net loss attributable to The Madison Square Garden Company’s stockholders | $ (72,723) | $ (77,290) | $ (40,684) | |||
Basic loss per common share attributable to The Madison Square Garden Company’s stockholders | $ (3.05) | $ (3.12) | $ (1.63) | |||
Diluted loss per common share attributable to The Madison Square Garden Company’s stockholders | $ (3.05) | $ (3.12) | $ (1.63) | |||
Weighted-average number of common shares outstanding: | ||||||
Basic | 23,853 | 24,754 | 24,928 | |||
Diluted | 23,853 | 24,754 | 24,928 | |||
[1] | Include revenues from related parties of $150,534, $153,538 and $88,051 for the years ended June 30, 2017, 2016 and 2015, respectively. | |||||
[2] | Include net charges from related parties of $1,284, $1,133 and $1,670 for the years ended June 30, 2017, 2016 and 2015, respectively. | |||||
[3] | Include net charges to related parties of $(5,852), $(28,536) and $(49,374) for the years ended June 30, 2017, 2016 and 2015, respectively. | |||||
[4] | Interest income includes interest income from nonconsolidated affiliates of $4,157, $2,930 and $1,886 for the years ended June 30, 2017, 2016 and 2015, respectively. In addition, interest income includes interest income from MSG Networks of $307 and $1,153 for the years ended June 30, 2016 and 2015, respectively. | |||||
[5] | Miscellaneous income for the year ended June 30, 2017 consists principally of the recovery of certain claims in connection with a third-party bankruptcy proceeding. Miscellaneous expenses for the year ended June 30, 2016 primarily include partial write-down of one of the Company’s cost method investments (see Note 5) |
Consolidated and Combined Stat5
Consolidated and Combined Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Related Party Transaction [Line Items] | |||
Revenues from related party | $ 150,534 | $ 153,538 | $ 88,051 |
Direct operating expenses from related party | 1,284 | 1,133 | 1,670 |
Selling, General and Administrative Expenses to related party | (5,852) | (28,536) | (49,374) |
MSG Networks [Member] | |||
Related Party Transaction [Line Items] | |||
Revenues from related party | 149,197 | 144,947 | 80,999 |
Interest income, related party | 307 | 1,153 | |
Other nonconsolidated affiliate [Member] | |||
Related Party Transaction [Line Items] | |||
Interest income, related party | $ 4,157 | $ 2,930 | $ 1,886 |
Consolidated and Combined Stat6
Consolidated and Combined Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (76,789) | $ (77,290) | $ (40,684) |
Pension plans and postretirement plan: | |||
Net unamortized gains (losses) arising during the period | 4,027 | (9,239) | (6,138) |
Amounts reclassified from accumulated other comprehensive loss to direct operating expenses and selling, general and administrative expenses: | |||
Amortization of net actuarial loss included in net periodic benefit cost | 1,365 | 1,039 | 2,050 |
Amortization of net prior service credit included in net periodic benefit cost | (48) | (92) | (112) |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax | (5,344) | 8,292 | 4,200 |
Net changes related to available-for-sale securities | 9,629 | ||
Other comprehensive income (loss), before income taxes | 14,973 | (8,292) | (4,200) |
Income tax expense related to items of other comprehensive income | (6,477) | 0 | 0 |
Other comprehensive income (loss), net of income taxes | 8,496 | (8,292) | (4,200) |
Comprehensive loss | (68,293) | (85,582) | (44,884) |
Less: Comprehensive income attributable to nonredeemable noncontrolling interests | 304 | ||
Less: Comprehensive loss attributable to redeemable noncontrolling interests | (4,370) | ||
Comprehensive loss attributable to The Madison Square Garden Company’s stockholders | $ (64,227) | $ (85,582) | $ (44,884) |
Consolidated and Combined Stat7
Consolidated and Combined Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | |||
Net loss | $ (76,789) | $ (77,290) | $ (40,684) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 107,388 | 102,482 | 108,758 |
Share-based compensation expense | 41,129 | 24,476 | 10,306 |
Loss in equity method investments, net of income distributions | 30,831 | 19,099 | 40,590 |
Provision for (benefit from) deferred income taxes | (4,404) | 297 | 436 |
Write-off of deferred production costs | 33,629 | 41,816 | 0 |
Impairment of cost method investment | 0 | 4,080 | 0 |
Amortization of inventory step-up | 8,705 | ||
Other non-cash expense | 1,411 | 31 | 58 |
Change in assets and liabilities, net of acquisitions: | |||
Accounts receivable, net | (20,363) | (25,053) | 18 |
Net related party receivables | 2,826 | (5,096) | 240 |
Prepaid expenses and other assets | 1,840 | (34,354) | (31,602) |
Accounts payable | 2,047 | 9,096 | (4,341) |
Net related party payables | 2,301 | 13,687 | (385) |
Accrued and other liabilities | 32,716 | 42,077 | (33,494) |
Deferred revenue | 53,356 | 10,437 | 19,452 |
Net cash provided by operating activities | 216,623 | 125,785 | 69,352 |
Cash flows from investing activities: | |||
Capital expenditures, net of acquisitions | (44,224) | (71,716) | (64,083) |
Payments to acquire available-for-sale securities | (23,222) | ||
Payments for acquisition of businesses, net of cash acquired | (192,095) | ||
Proceeds from sale of property and equipment | 0 | 0 | 4,321 |
Payments for acquisition of assets | (1,000) | (2,000) | (3,000) |
Investments and loans to nonconsolidated affiliates | (8,235) | (36,417) | (40,219) |
Cash received / (paid) for notes receivable | 4,475 | (7,085) | 0 |
Capital distribution from equity method investments | 0 | 1,528 | 325 |
Net cash used in investing activities | (264,301) | (115,690) | (102,656) |
Cash flows from financing activities: | |||
Net transfers from MSG Networks and MSG Networks’ subsidiaries | 0 | 1,525,241 | 41,372 |
Repurchases of common stock | (147,967) | (105,736) | |
Proceeds from stock option exercises | 7 | 787 | |
Taxes paid in lieu of shares issued for equity-based compensation | (7,335) | (281) | |
Payments for financing costs | (3,230) | ||
Net cash provided by (used in) financing activities | (158,525) | 1,420,011 | 41,372 |
Net increase (decrease) in cash and cash equivalents | (206,203) | 1,430,106 | 8,068 |
Cash and cash equivalents at beginning of period | 1,444,317 | 14,211 | 6,143 |
Cash and cash equivalents at end of period | 1,238,114 | 1,444,317 | 14,211 |
Non-cash investing and financing activities: | |||
Investments and loans to nonconsolidated affiliates | 368 | 2,237 | 24,000 |
Capital expenditures incurred but not yet paid | 8,834 | 5,793 | $ 7,528 |
Accrued earn-out liability | $ 7,900 | ||
Non-cash transfers resulting from the Distribution, net | $ (1,934) |
Consolidated and Combined Stat8
Consolidated and Combined Statements of Stockholders' Equity and Redeemable Noncontrolling Interests - USD ($) $ in Thousands | Total | Common Stock [Member] | MSG Networks Investment [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member] | Retained Earnings (Accumulated Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Parent [Member] | Noncontrolling Interest [Member] |
Total equity balance at Jun. 30, 2014 | $ 1,191,203 | $ 1,227,218 | $ (36,015) | $ 1,191,203 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net loss attributable to the parent | (40,684) | (40,684) | (40,684) | ||||||
Net Loss including portion attributable to nonredeemable noncontrolling interest | (40,684) | ||||||||
Other comprehensive income (loss) | (4,200) | (4,200) | (4,200) | ||||||
Comprehensive loss attributable to the parent | (44,884) | (44,884) | |||||||
Comprehensive loss including portion attributable to nonredeemable controlling interest | (44,884) | ||||||||
Net increase in MSG Networks’ Investment | 76,956 | 76,956 | 76,956 | ||||||
Total equity balance at Jun. 30, 2015 | 1,223,275 | 1,263,490 | (40,215) | 1,223,275 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net loss attributable to the parent | (77,290) | (1,603) | $ (75,687) | (77,290) | |||||
Net Loss including portion attributable to nonredeemable noncontrolling interest | (77,290) | ||||||||
Other comprehensive income (loss) | (8,292) | (8,292) | (8,292) | ||||||
Comprehensive loss attributable to the parent | (85,582) | (85,582) | |||||||
Comprehensive loss including portion attributable to nonredeemable controlling interest | (85,582) | ||||||||
Exercise of stock options | 787 | $ (2,682) | $ 3,469 | 787 | |||||
Share-based compensation | 21,514 | 21,514 | 21,514 | ||||||
Tax withholding associated with shares issued for equity-based compensation | (281) | (281) | (281) | ||||||
Common stock issued under stock incentive plans | 0 | (385) | 385 | 0 | |||||
Repurchases of common stock | (105,736) | (105,736) | (105,736) | ||||||
Net increase in MSG Networks’ Investment | 1,525,982 | 1,525,982 | 1,525,982 | ||||||
Conversion of MSG Networks’ Investment | 0 | $ 249 | (2,787,869) | 2,787,620 | 0 | ||||
Adjustments related to the transfer of certain assets and liabilities as a result of the Distribution | 566 | 566 | 566 | ||||||
Adjustment related to the transfer of Pension Plans and Postretirement Plan liabilities as a result of the Distribution | 5,896 | 5,896 | 5,896 | ||||||
Total equity balance at Jun. 30, 2016 | 2,586,421 | 249 | 0 | 2,806,352 | (101,882) | (75,687) | (42,611) | 2,586,421 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net loss attributable to the parent | (72,723) | (72,723) | (72,723) | ||||||
Net income attributable to nonredeemable noncontrolling interests | 304 | $ 304 | |||||||
Net Loss including portion attributable to nonredeemable noncontrolling interest | (72,419) | ||||||||
Other comprehensive income (loss) | 8,496 | 8,496 | 8,496 | ||||||
Comprehensive loss attributable to the parent | (64,227) | (64,227) | |||||||
Comprehensive income attributable to nonredeemable noncontrolling interest | 304 | ||||||||
Comprehensive loss including portion attributable to nonredeemable controlling interest | (63,923) | ||||||||
Exercise of stock options | 7 | (39) | 46 | 7 | |||||
Share-based compensation | 41,264 | 41,264 | 41,264 | ||||||
Tax withholding associated with shares issued for equity-based compensation | (7,335) | (6,003) | (1,332) | (7,335) | |||||
Common stock issued under stock incentive plans | 0 | (9,058) | 9,058 | 0 | |||||
Repurchases of common stock | (147,967) | (147,967) | (147,967) | ||||||
Noncontrolling interest, increase from business combination | 11,394 | 11,394 | |||||||
Total equity balance at Jun. 30, 2017 | 2,419,861 | $ 249 | $ 0 | $ 2,832,516 | $ (242,077) | $ (148,410) | $ (34,115) | $ 2,408,163 | $ 11,698 |
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||
Net loss attributable to redeemable noncontrolling interest | (4,370) | ||||||||
Comprehensive loss attributable to redeemable noncontrolling interests | (4,370) | ||||||||
Redeemable noncontrolling interests, increase from business combination | 85,000 | ||||||||
Redeemable Noncontrolling Interest Balance at Jun. 30, 2017 | $ 80,630 |
Description of Business and Bas
Description of Business and Basis of Presentation | 12 Months Ended |
Jun. 30, 2017 | |
Description of Business And Basis of Presentation [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation The Distribution The Madison Square Garden Company (together with its subsidiaries, the “Company” or “Madison Square Garden”), formerly named MSG Spinco, Inc., was incorporated on March 4, 2015 as an indirect, wholly-owned subsidiary of MSG Networks Inc. (“MSG Networks” or “Former Parent”), formerly known as The Madison Square Garden Company. On September 11, 2015, MSG Networks’ board of directors approved the distribution of all the outstanding common stock of Madison Square Garden to MSG Networks’ stockholders (the “ Distribution ”), which occurred on September 30, 2015. Each holder of record of MSG Networks Class A common stock as of close of business on September 21, 2015 (the “Record Date”) received one share of Madison Square Garden Class A common stock, par value $0.01 per share (“Class A Common Stock”), for every three shares of MSG Networks Class A common stock held. Each holder of record of MSG Networks Class B common stock as of the Record Date received one share of Madison Square Garden Class B common stock, par value $0.01 per share (“Class B Common Stock”), for every three shares of MSG Networks Class B common stock held. Description of Business Madison Square Garden is a live sports and entertainment business. The Company classifies its business interests into two reportable segments: MSG Entertainment and MSG Sports. MSG Entertainment includes live entertainment events such as concerts, family shows, performing arts and special events, which are presented or hosted in the Company’s diverse collection of venues along with live offerings through TAO Group Holdings LLC (“ TAO Group ”) and Boston Calling Events LLC (“ BCE ”). TAO Group is a hospitality group with globally-recognized entertainment dining and nightlife brands: TAO, Marquee, Lavo, Avenue, The Stanton Social, Beauty & Essex and Vandal. BCE produces outdoor music festivals, including New England’s premier Boston Calling Music Festival. MSG Entertainment also includes the Company’s original productions — the Christmas Spectacular Starring the Radio City Rockettes (the “ Christmas Spectacular ”) and the New York Spectacular Starring the Radio City Rockettes (the “ New York Spectacular ”). MSG Sports includes the Company’s professional sports franchises: the New York Knicks (the “Knicks”) of the National Basketball Association (the “NBA”), the New York Rangers (the “Rangers”) of the National Hockey League (the “NHL”), the New York Liberty (the “Liberty”) of the Women’s National Basketball Association (the “WNBA”), the Hartford Wolf Pack of the American Hockey League (the “AHL”) and the Westchester Knicks of the NBA Gatorade League (the “ NBAGL ”). The MSG Sports segment also includes other live sporting events, including professional boxing, college basketball, professional bull riding, mixed martial arts, esports, tennis and college wrestling, all of which the Company promotes, produces and/or presents. In July 2017, the Company acquired a controlling interest in Counter Logic Gaming, a premier North American esports organization, which is now part of the MSG Sports segment. The Company conducts a significant portion of its operations at venues that it either owns or operates under long-term leases. The Company owns the Madison Square Garden Arena (“The Garden”) and The Theater at Madison Square Garden in New York City, the Forum in Inglewood, CA and The Chicago Theatre in Chicago. In addition, the Company leases Radio City Music Hall and the Beacon Theatre in New York City, and has a booking agreement with respect to the Wang Theatre in Boston. Additionally, TAO Group operates various restaurants, nightlife and hospitality venues under long-term leases and management contracts in New York, Las Vegas, Los Angeles and Australia. Basis of Presentation For the periods after the Distribution , the financial information disclosed is presented on a consolidated basis, as the Company became a standalone public company on September 30, 2015. For the periods prior to the Distribution, the financial information was prepared on a standalone basis derived from the consolidated financial statements and accounting records of Former Parent and are presented as carve-out financial statements as the Company was not a standalone public company prior to the Distribution. As a result, the Company’s financial statements as of and for the fiscal years ended June 30, 2017 and 2016 are presented on a consolidated basis, except the financial information for the three months ended September 30, 2015 that is included in the results of operations for the year ended June 30, 2016. The Company’s combined statements of operations for the year ended June 30, 2015, as well as the financial information for the three months ended September 30, 2015 that is included in the results of operations for the year ended June 30, 2016, were prepared on a standalone basis derived from the consolidated financial statements and accounting records of Former Parent and are presented as carve-out financial statements as the Company was not a standalone public company prior to the Distribution. These combined financial statements reflect the combined historical results of operations, financial position and cash flows of Former Parent’s sports and entertainment businesses, as well as its venues and joint ventures (“combined financial statements”), in accordance with generally accepted accounting principles (“GAAP”) and Securities and Exchange Commission (“SEC”) Staff Accounting Bulletin Topic 1-B, Allocation of Expenses and Related Disclosure in Financial Statements of Subsidiaries, Divisions or Lesser Business Components of Another Entity . References to GAAP issued by the Financial Accounting Standards Board (“FASB”) in these footnotes are to the FASB Accounting Standards Codification, also referred to as “ASC.” Historically, separate financial statements were not prepared for the Company as it had not operated as a separate, standalone business from MSG Networks. The combined financial statements include certain assets and liabilities that were historically held by MSG Networks or by other MSG Networks’ subsidiaries but were specifically identifiable or otherwise attributable to the Company. All significant intercompany transactions between MSG Networks and the Company have been included as components of MSG Networks’ investment in the combined financial statements as they were considered effectively settled on the Distribution date. The assets and liabilities in the combined financial statements have been reflected on a historical cost basis, as immediately prior to the Distribution all of the assets and liabilities presented were wholly-owned by MSG Networks and were transferred to the Company at carry-over basis. The financial information for the three months ended September 30, 2015 that is included in the results of operations for the year ended June 30, 2016 and the combined statements of operations for the year ended June 30, 2015 include allocations for certain support functions that were provided on a centralized basis by MSG Networks and not historically recorded at the business unit level, such as expenses related to finance, human resources, information technology, and facilities, among others. These expenses were allocated on the basis of direct usage when identifiable, with the remainder allocated on a pro-rata basis of combined revenues, headcount or other measures. Management believes the assumptions underlying the combined financial statements, including the assumptions regarding allocating general corporate expenses, are reasonable. Nevertheless, the combined financial statements do not include all of the actual expenses that would have been incurred by the Company and do not reflect its combined results of operations, financial position and cash flows had it been a separate, standalone public company during the periods presented on a combined basis. Actual costs that would have been incurred if the Company had been a separate, standalone public company would depend on multiple factors, including organizational structure and strategic decisions made in various areas, including information technology and infrastructure. The results of operations for the periods presented are not necessarily indicative of the results that might be expected for future periods. After the Distribution, the Company has been providing certain of these services to MSG Networks through a transition services agreement (“ TSA ”). As part of the Distribution, certain employees providing support functions were transferred to the Company. MSG Networks historically used a centralized approach to cash management and financing of operations, with net earnings reinvested and working capital requirements met from existing liquid funds. The Company’s cash was available for use and was regularly “swept” by MSG Networks at its discretion. Accordingly, the cash and cash equivalents held by MSG Networks at the corporate level were not attributed to the Company in the combined statement of cash flows as of June 30, 2015. Additionally, cash held in accounts legally owned by the Company was attributed to the combined statement of cash flows as of June 30, 2015. Transfers of cash both to and from MSG Networks are included as components of MSG Networks’ investment on the consolidated and combined statements of equity and redeemable noncontrolling interests. In connection with the Distribution, the Company received $1,467,093 of cash from MSG Networks. MSG Networks’ net investment in the Company has been presented as a component of the Company’s equity in the financial statements. Distributions made by MSG Networks to the Company or to MSG Networks from the Company are recorded as transfers to and from MSG Networks and the net amount is presented on the consolidated and combined statements of cash flows as “Net transfers from MSG Networks and MSG Networks’ subsidiaries.” As of the Distribution date, MSG Networks’ net investment in the Company was contributed to Former Parent’s stockholders through the distribution of all the common stock of the Company. The par value of the Company’s stock was recorded as a component of common stock, with the remaining balance recorded as additional paid-in capital in the consolidated balance sheet on the Distribution date. For purposes of the combined financial statements, income tax expense has been recorded as if the Company filed tax returns on a standalone basis separate from Former Parent. This separate return methodology applies to accounting guidance for income taxes in the combined financial statements as if the Company was a standalone public company for the periods prior to the Distribution. Therefore, cash tax payments and items of current and deferred taxes may not be reflective of the Company’s actual tax balances prior to or subsequent to the Distribution. Prior to the Distribution, the Company’s operating results were included in Former Parent’s consolidated U.S. federal and state income tax returns. Pursuant to rules promulgated by the Internal Revenue Service and various state taxing authorities, the Company filed its initial U.S. income tax return for the period from October 1, 2015 through June 30, 2016 in March 2017. The calculation of the Company’s income taxes involves considerable judgment and use of both estimates and allocations. |
Accounting Policies
Accounting Policies | 12 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation and Combination For the periods prior to the Distribution, the financial statements include certain assets and liabilities that were historically held at Former Parent’s corporate level but were specifically identifiable or otherwise attributable to the Company. All intercompany transactions between the Company and Former Parent have been included in the combined financial statements as components of MSG Networks’ investment. All significant intracompany transactions and accounts within the Company’s consolidated and combined financial statements have been eliminated. Expenses related to corporate allocations prior to the Distribution were considered to be effectively settled in the combined financial statements at the time the transaction was recorded, with the offset recorded against MSG Networks’ investment. Business Combinations and Noncontrolling Interests The acquisition method of accounting for business combinations requires management to use significant estimates and assumptions, including fair value estimates, as of the business combination date and to refine those estimates as necessary during the measurement period (defined as the period, not to exceed one year, in which the Company is allowed to adjust the provisional amounts recognized for a business combination). Under the acquisition method of accounting, the Company recognizes separately from goodwill the identifiable assets acquired, the liabilities assumed, and any noncontrolling interests in an acquiree, generally at the acquisition date fair value. The Company measures goodwill as of the acquisition date as the excess of consideration transferred, which is also measured at fair value if the consideration is non-cash, over the net of the acquisition date amounts of the identifiable assets acquired and liabilities assumed. Costs that the Company incurs to complete a business combination such as investment banking, legal and other professional fees are not considered part of consideration and the Company charges these costs to selling, general and administrative expense as they are incurred. In addition, the Company recognizes measurement-period adjustments in the period in which the amount is determined, including the effect on earnings of any amounts the Company would have recorded in previous periods if the accounting had been completed at the acquisition date. Interests held by third parties in consolidated majority-owned subsidiaries are presented as noncontrolling interests, which represents the noncontrolling stockholders’ interests in the underlying net assets of the Company’s consolidated majority-owned subsidiaries. Noncontrolling interests that are not redeemable are reported in the equity section of the consolidated balance sheets. Noncontrolling interests, where the Company may be required to repurchase under put options or other contractual redemption requirements that are not solely within the Company’s control, are reported in the consolidated balance sheets between liabilities and equity, as redeemable noncontrolling interests. On July 1, 2016, the Company acquired a controlling interest in BCE . In accordance with ASC Topic 805, Business Combinations , and ASC Topic 810, Consolidation , the financial position of BCE has been consolidated with the Company’s consolidated balance sheet as of June 30, 2017 . The results of operations for BCE have been included in the Company’s consolidated results of operations from the date of acquisition in the MSG Entertainment segment. The relevant amounts attributable to investors other than the Company are reflected under “Nonredeemable noncontrolling interests,” “Net income (loss) attributable to nonredeemable noncontrolling interests” and “Comprehensive income (loss) attributable to nonredeemable noncontrolling interests” on the accompanying consolidated balance sheet, consolidated statement of operations and consolidated statement of comprehensive income, respectively. See Note 3 for more information regarding the Company’s acquisition of BCE . On January 31, 2017, the Company acquired a controlling interest in TAO Group . In accordance with ASC Topic 805, Business Combinations , and ASC Topic 810, Consolidation , the financial position of TAO Group has been consolidated with the Company’s consolidated balance sheet as of June 30, 2017 . TAO Group financial statements are not available within the time constraints the Company requires to ensure the financial accuracy of the operating results. Therefore, the Company records TAO Group ’s operating results in its consolidated statements of operations on a three-month lag basis. Any specific events having significant financial impact that occur during the lag period are included in the Company’s current period results. TAO Group reports on a fiscal year reflecting the retail-based calendar (containing 4-4-5 week calendar quarters) and its fiscal year periodically results in a 53-week year instead of a normal 52-week year. Accordingly, the Company’s results of operations for the year ended June 30, 2017 include TAO Group ’s operating results from February 1, 2017 to March 26, 2017 as part of the MSG Entertainment segment and the Company’s consolidated balance sheet as of June 30, 2017 reflects the financial position of TAO Group as of March 26, 2017 . All disclosures related to TAO Group are therefore also reported as of March 26, 2017. The TAO Group purchase agreement contains a put option to require the Company to purchase the other owners’ equity interests under certain circumstances. The noncontrolling interest combined with the put option is classified as redeemable noncontrolling interest in the consolidated balance sheet, separate from equity. The relevant amounts attributable to investors other than the Company are reflected under “Redeemable noncontrolling interests,” “Net income (loss) attributable to redeemable noncontrolling interests” and “Comprehensive income (loss) attributable to redeemable noncontrolling interests” on the accompanying consolidated balance sheet, consolidated statement of operations and consolidated statement of comprehensive income, respectively. See Note 3 for more information regarding the Company’s acquisition of TAO Group . The put option can be settled, at the Company’s option, in cash, debt or shares of the Company’s Class A Common Stock. The ultimate amount paid upon the exercise of the put option will likely be different from the estimated fair value, given the calculation required pursuant to the TAO Group operating agreement. Use of Estimates The preparation of the accompanying financial statements in conformity with GAAP requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Such estimates include the valuation of accounts receivable, investments, goodwill, intangible assets, other long-lived assets, tax accruals and other liabilities. In addition, estimates are used in revenue recognition, revenue sharing expense (net of escrow), luxury tax expense, income tax expense, performance and share-based compensation, depreciation and amortization, litigation matters and other matters, as well as in the valuation of contingent consideration and noncontrolling interests resulting from business combination transactions. Management believes its use of estimates in the financial statements to be reasonable. Management evaluates its estimates on an ongoing basis using historical experience and other factors, including the general economic environment and actions it may take in the future. The Company adjusts such estimates when facts and circumstances dictate. However, these estimates may involve significant uncertainties and judgments and cannot be determined with precision. In addition, these estimates are based on management’s best judgment at a point in time and as such these estimates may ultimately differ from actual results. Changes in estimates resulting from weakness in the economic environment or other factors beyond the Company’s control could be material and would be reflected in the Company’s financial statements in future periods. Revenue Recognition The Company recognizes revenue when the following conditions are satisfied: (a) persuasive evidence of a sales arrangement exists, (b) delivery occurs or services are rendered, (c) the sales price is fixed or determinable and (d) collectability is reasonably assured. Revenue recognition from the Company’s various revenue sources is discussed further in each respective segment’s revenue recognition policies below. MSG Entertainment The Company’s MSG Entertainment segment earns revenues from the sale of tickets for events that the Company produces or promotes/co-promotes. In addition, for entertainment events held at the Company’s venues that MSG Entertainment does not produce or promote/co-promote, revenues are earned from venue license fees charged to the third-party promoters of the event. Event-related revenues from the sale of tickets, venue license fees from third-party promoters, sponsorships, concessions and merchandise are recognized when the event occurs. Amounts collected in advance of an event are recorded as deferred revenue and are recognized as revenues when earned. Deferred revenue reported in the accompanying consolidated balance sheets as of June 30, 2017 and 2016 includes amounts due to the third-party promoters of $72,400 and $45,877 , respectively. Revenues from the sale of advertising in the form of venue signage and sponsorships, which are not related to any specific event, are recorded and recognized ratably over the period of benefit of the respective agreements. Revenues from the rental of The Garden’s suites are recognized ratably over the period of benefit of the respective agreements for the benefit of both of the Company’s segments. Revenues from dining, nightlife and hospitality offerings through TAO Group are recognized at the point food, beverages and/or services are provided to the customer. In addition, management fee revenues which are derived by the performance of the underlying venues as defined within the specific venue management agreements are recorded as earned. MSG Sports The Knicks, Rangers and Liberty derive revenues principally from ticket sales and distributions of league-wide national and international television contracts and other league-wide revenue sources, which are recognized over the respective team’s season. Event-related revenues from other live sporting events, including the sale of tickets, venue license fees earned in connection with other live sporting events that the Company does not produce or promote, sponsorships, concessions and merchandise are recognized when the event occurs. Amounts collected in advance of an event are recorded as deferred revenue and are recognized as revenues when earned. Local media rights revenue recognized by MSG Sports for the licensing of team-related programming to MSG Networks is generally recognized on a straight-line basis over the fiscal year. Revenues from the sale of advertising in the form of venue signage and sponsorships, which are not related to any specific event, are recognized ratably over the period of benefit of the respective agreements. Revenues from the rental of The Garden’s suites are recognized ratably over the period of benefit of the respective agreements for the benefit of both of the Company’s segments. Multiple-Deliverable Transactions The Company enters into multiple-deliverable arrangements, primarily multi-year sponsorship agreements. The deliverables included in each sponsorship agreement vary and may include suite licenses, event tickets and various advertising benefits, which include items such as, but not limited to, signage at The Garden and the Company’s other venues. The timing of revenue recognition for each deliverable is dependent upon meeting the revenue recognition criteria for the respective deliverable. The Company allocates revenue to each deliverable within the arrangement based on its relative selling price. For many deliverables in an arrangement, such as event tickets and certain advertising benefits, the Company has vendor specific objective evidence (“VSOE”) of selling price as it typically sells the same or similar deliverables regularly on a stand-alone basis. Absent VSOE, the Company considers whether third party evidence (“TPE”) is available; however, in most instances TPE is not available. The Company’s process for determining its estimated selling prices for deliverables without VSOE or TPE involves management’s judgment and considers multiple factors including company specific and market specific factors that may vary depending upon the unique facts and circumstances related to each deliverable. Key factors considered by the Company in developing a best estimate of selling price for deliverables include, but are not limited to, prices charged for similar deliverables, the Company’s ongoing pricing strategy and policies, and consideration of pricing of similar deliverables sold in other multiple-deliverable agreements. Gross versus Net Revenue Recognition The Company reports revenue on a gross or net basis based on management’s assessment of whether the Company acts as a principal or agent in the transaction. To the extent the Company acts as the principal, revenue is reported on a gross basis. The determination of whether the Company acts as a principal or an agent in a transaction is based on an evaluation of several qualitative factors, including for co-promotions where the Company has a 50% or lower economic interest. Generally, when the Company is the promoter or co-promoter of an event the Company reports revenue on a gross basis. When the Company acts as an agent, revenue is reported on a net basis. The Company accounts for taxes collected from customers and remitted to governmental authorities on a net basis and excludes these amounts from revenues. In connection with the Distribution, the Company entered into an advertising sales representation agreement with MSG Networks. Pursuant to the agreement, the Company has the exclusive right and obligation to sell advertising availabilities of MSG Networks . The Company is entitled to and earns commission revenue as MSG Networks records advertising revenue, which is typically recognized when the advertisements are aired. The Company recognizes the advertising commission revenue on a net basis in accordance with ASC 605-45. Nonmonetary Transactions The Company enters into nonmonetary transactions that involve the exchange of goods or services, such as advertising and promotional benefits as well as tickets, for other goods or services. Such transactions are measured and recorded at the fair value of the goods or services surrendered unless the goods or services received have a more readily determinable fair value. In addition, the Company enters into other monetary transactions in which nonmonetary consideration is also included and the entire transaction is recorded at fair value. If the fair values cannot be determined for either the asset(s) surrendered or received within reasonable limits, then the nonmonetary transaction is measured and recorded at the book value of the item(s) surrendered, which typically is zero. Direct Operating Expenses Direct operating expenses include, but are not limited to, compensation expense for the Company’s professional sports teams’ players and certain other team personnel, as well as NBA luxury tax, NBA and NHL revenue sharing and league assessments for the MSG Sports segment; event costs related to the presentation and production of the Company’s live entertainment and sporting events; and venue lease, maintenance and other operating expenses. Player Costs and Other Team Personnel Transactions, NBA Luxury Tax, Escrow System/Revenue Sharing and League Assessments for the MSG Sports Segment Player Costs and Other Team Personnel Transactions Costs incurred to acquire player contracts, including signing bonuses, are deferred and amortized over the applicable NBA or NHL regular season on a straight-line basis over the fixed contract period of the respective player. The NBA and NHL seasons are typically from November through April and October through April, respectively. Player salaries are also expensed over the applicable NBA, NHL or WNBA regular season typically on a straight-line basis. In certain player contracts the annual contractual salary amounts (including any applicable signing bonuses) may fluctuate such that expensing the salary for the entire contract on a straight-line basis over each regular season more appropriately reflects the economic benefit of the services provided. In instances where a player sustains what is deemed to be a season-ending or career-ending injury, a provision is recorded, when that determination can be reasonably made, for the remainder of the player’s seasonal or contractual salary and related costs, together with any associated NBA luxury tax, net of any anticipated insurance recoveries. When players are traded, waived or contracts are terminated, any remaining unamortized signing bonuses and prepaid salaries are expensed to current operations. Amounts due to these individuals are generally paid over their remaining contract terms. Team personnel contract termination costs are recognized in the period in which those events occur. See Note 4 for further discussion of significant team personnel transactions. The NBA and NHL each have collective bargaining agreements (each a “CBA”) with the respective league’s players association, to which the Company is subject. The NBA CBA expires after the 2023-24 season (although the NBA and the National Basketball Players Association (“NBPA”) each have the right to terminate the CBA following the 2022-23 season). The NHL CBA expires on September 15, 2022 (although the NHL and National Hockey League Players’ Association each have the right to terminate the CBA following the 2019-20 season). The NBA CBA contains a “soft” salary cap (i.e., a cap on each team’s aggregate player salaries but with certain exceptions that enable teams to pay more, sometimes substantially more, than the cap). The NHL CBA provides for a “hard” salary cap (i.e., teams may not exceed a stated maximum that has been negotiated for the 2013-14 season and is adjusted each season thereafter based upon league-wide revenues). NBA Luxury Tax Amounts in this paragraph are in thousands, except for luxury tax rates. The NBA CBA provides for a luxury tax that is applicable to all teams with aggregate player salaries exceeding a threshold that is set prior to each season based upon projected league-wide revenues (as defined under the CBA). The luxury tax rates for teams with aggregate player salaries above such threshold start at $1.50 for each $1.00 of team salary above the threshold up to $5,000 and scale up to $3.25 for each $1.00 of team salary that is from $15,000 to $20,000 over the threshold, and an additional tax rate increment of $0.50 applies for each additional $5,000 (or part thereof) of team salary in excess of $20,000 over the threshold. In addition, for teams that are taxpayers in at least three of four previous seasons, the above tax rates are increased by $1.00 for each increment. Fifty percent of the aggregate luxury tax payments is a funding source for the revenue sharing plan and the remaining 50% of such payments is distributed in equal shares to non-taxpaying teams. The Company recognizes the estimated amount associated with luxury tax expense or the amount it expects to receive as a non-tax paying team, if applicable, on a straight-line basis over the NBA regular season as a component of direct operating expenses. NBA and NHL Escrow System/Revenue Sharing The NBA CBA also provides that players collectively receive a designated percentage of league-wide revenues (net of certain direct expenses) as compensation (approximately 51%), and the teams retain the remainder. The percentage of league-wide revenues paid as compensation and retained by the teams does not apply evenly across all teams and accordingly the Company may pay its players a higher or lower percentage of the Knicks’ revenues than other NBA teams. Throughout each season, NBA teams withhold 10% of each player’s salary and contribute the withheld amounts to an escrow account. If the league’s aggregate player compensation exceeds the designated percentage of league-wide revenues, some or all of such escrowed amounts are distributed equally to all NBA teams. In the event that the league’s aggregate player compensation is below the designated percentage of league-wide revenues, the teams will remit the shortfall to the NBPA for distribution to the players. The NBA also has a revenue sharing plan that generally requires the distribution of a pool of funds to teams with below-average net revenues (as defined in the plan), subject to reduction or elimination based on individual team market size and profitability. The plan is funded by a combination of disproportionate contributions from teams with above-average net revenues, subject to certain profit-based limits (each as defined in the plan); 50% of aggregate league-wide luxury tax proceeds; and collective league sources, if necessary. Additional amounts may also be distributed on a discretionary basis, funded by assessments on playoff ticket revenues and through collective league sources. The NHL CBA provides that each season the players receive as player compensation 50% of that season’s league-wide revenues, excluding the impact of agreed-upon aggregate transition payments of $300,000 paid on a deferred basis over three years beginning in 2014. Because the aggregate amount to be paid to the players is based upon league-wide revenues and not on a team-by-team basis, the Company may pay its players a higher or lower percentage of the Rangers’ revenues than other NHL teams pay of their own revenues. In order to implement the salary cap system, NHL teams withhold a portion of each player’s salary and contribute the withheld amounts to an escrow account. If the league’s aggregate player compensation for a season exceeds the designated percentage (50%) of that season’s league-wide revenues, the excess is retained by the league. Any excess funds will be distributed by the NHL to all teams in equal shares. The NHL CBA provides for a revenue sharing plan which generally requires the distribution of a pool of funds approximating 6.055% of league-wide revenues to certain qualifying lower-revenue teams. Under the NHL CBA, the pool is funded as follows: (a) 50% from contributions by the top ten revenue earning teams (based on pre-season and regular season revenues) in accordance with a formula; (b) then from payments by teams participating in the playoffs, with each team contributing 35% of its gate receipts for each home playoff game; and (c) the remainder from centrally-generated NHL sources. The Rangers are consistently among the top ten revenue teams and, accordingly, have consistently contributed to the top ten revenue teams component of the plan. The Company recognizes the amount of its estimated revenue sharing expense associated with the pre-season and regular season, net of the amount the Company expects to receive from the escrow, on a straight-line basis over the applicable NBA and NHL seasons as a component of direct operating expenses. In years when the Knicks or Rangers participate in the playoffs, the Company recognizes its estimate of the playoff revenue sharing contribution in the periods when the playoffs occur. League Assessments As members of the NBA and NHL, the Knicks and Rangers, respectively, are also subject to annual league assessments. The governing bodies of each league determine the amount of each season’s league assessments that are required from each member team. The Company recognizes its teams’ estimated league assessments on a straight-line basis over the applicable NBA or NHL season. Production Costs for the MSG Entertainment Segment The Company defers certain costs of productions such as creative design, scenery, wardrobes, rehearsal and other related costs for the Company’s proprietary shows. Deferred production costs are amortized on a straight-line basis over the course of a production’s performance period using the expected life of a show’s assets, which generally ranges from 5 to 10 years. Deferred production costs are subject to recoverability assessments whenever there is an indication of potential impairment. During the third quarter of fiscal year 2016, the Company recorded a $41,816 write-off of deferred production costs associated with the New York Spectacular due to the creative decision to not include, in the summer of 2016 performances, certain scenes from the previous show . Due to recent assessments of the show’s creative direction, timing and scale, the Company wrote off the remaining balance of deferred production costs associated with this production in the amount of $33,629 during the fourth quarter of fiscal year 2017. The Company has $6,702 and $43,083 of net deferred production costs recorded within other current assets and other assets in the accompanying consolidated balance sheets as of June 30, 2017 and 2016 , respectively. Advertising Expenses Advertising costs are typically charged to expense when incurred, however, advertising for productions and other live entertainment events are generally deferred within interim periods and expensed over the run of the show, but by no later than the end of the fiscal year. Total advertising costs classified in direct operating and selling, general and administrative expenses were $18,963 , $20,834 and $27,220 for the years ended June 30, 2017 , 2016 and 2015 , respectively. Income Taxes The Company accounts for income taxes in accordance with ASC 740, Income Taxes (“ASC 740”). For the periods before the Distribution, income taxes as presented herein attribute current and deferred income taxes of MSG Networks to the Company’s stand-alone financial statements in a manner that is systematic, rational, and consistent with the asset and liability method prescribed by ASC 740. Accordingly, the Company’s income tax provision was prepared following the separate return method. The separate return method applies ASC 740 to the stand-alone financial statements of each member of the combined group as if the group member were a separate taxpayer and the benefits of a consolidated return have been reflected where such returns have or could be filed based on the entities’ jurisdictions included in the combined financial statements. As a result, actual tax transactions included in the consolidated financial statements of MSG Networks may not be included in the combined financial statements. Similarly, the tax treatment of certain items reflected in the combined financial statements may not be reflected in the consolidated financial statements and tax returns of MSG Networks. Therefore, portions of items such as net operating losses, credit carryforwards, other deferred taxes, uncertain tax positions and valuation allowances may exist in the combined financial statements that may or may not exist in MSG Networks’ consolidated financial statements. Because the Company’s operations prior to the Distribution were included in MSG Networks’ tax returns, payments to certain tax authorities were made by MSG Networks, and not by the Company. The Company only maintains taxes payable to/from the taxing authorities for legal entities that are fully-dedicated to the Company’s business. The Company did not maintain taxes payable to/from MSG Networks and the payments were deemed to settle the annual current tax payable balances immediately with the legal entities paying the tax in the respective jurisdictions through changes in MSG Networks’ investment. For the periods after the Distribution, the Company’s provision for income taxes is based on current period income, changes in deferred tax assets and liabilities and changes in estimates with regard to uncertain tax positions. Deferred tax assets are subject to an ongoing assessment of realizability. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax asset will not be realized. The Company’s ability to realize its deferred tax assets depends upon the generation of sufficient future taxable income to allow for the realization of its deductible temporary differences. If such estimates and related assumptions change in the future, the Company may be required to record valuation allowances against its deferred tax assets, resulting in additional income tax expense in the Company’s consolidated statements of operations. Interest and penalties, if any, associated with uncertain tax positions are included in income tax expense. The Company accounts for investment tax credits using the “flow-through” method, under which the tax benefit generated from an investment tax credit is recorded in the period the credit is generated. Share-based Compensation Prior to Distribution, the Company’s employees participated in MSG Networks’ share-based compensation plans. Share-based compensation expense has been attributed to the Company based on the awards and terms previously granted to MSG Networks’ employees. For purposes of the combined financial statements, an allocation of share-based compensation expense related to corporate employees was recorded in addition to the expense attributed to the Company’s direct employees. The allocated expense includes both directors and corporate executives of MSG Networks, allocated using a proportional allocation method which management has deemed to be reasonable. Following the Distribution, the Company measures the cost of employee services received in exchange for an award of equity-based instruments based on the grant date fair value of the award. Share-based compensation cost is recognized in earnings (net of estimated forfeitures) over the period during which an employee is required to provide service in exchange for the award, except for restricted stock units granted to non-employee directors which, unless otherwise provided under the applicable award agreement, are fully vested, and are expensed at the grant date. The Company estimates forfeitures based upon historical experience and its expectations regarding future vesting of awards. To the extent actual forfeitures are different from the Company’s estimates, share-based compensation is adjusted accordingly. Earnings (Loss) Per Common Share Basic earnings (loss) per common share (“ EPS ”) attributable to the Company’s common stockholders is based upon net income (loss) attributable to the Company’s common stockholders divided by the weighted-average number of common shares outstanding during the period. Following the Distribution, the Company had 24,928 common shares outstanding on September 30, 2015. This amount has been utilized to calculate EPS for the periods prior to the Distribution as no Madison Square Garden common stock or equity-based awards were outstanding prior to September 30, 2015. The dilutive effect of the Company’s share-based compensation awards issued in connection with the Distribution is included in the computation of diluted EPS in the periods subsequent to the Distribution, when applicable. Diluted EPS reflects the effect of the assumed vesting of restricted stock units and exercise of stock options (see Note 12 ) only in the periods in which such effect would have been dilutive. For the periods when a net loss is reported, the computation of diluted EPS equals the basic EPS calculation since common stock equivalents were antidilutive due to losses from continuing operations. Cash and Cash Equivalents The Company considers the balance of its investment in funds that substantially hold highly liquid securities that mature within three months or less from the date the fund purchases these securities to be cash equivalents. The carrying amount of cash and cash equivalents either approximates fair value due to the short-term maturity of these instruments or is at fair value. Checks outstanding in excess of related book balances are included in accounts payable in the accompanying consolidated balance sheets. The Company presents the change in these book cash overdrafts as cash flows |
Acquisitions
Acquisitions | 12 Months Ended |
Jun. 30, 2017 | |
Acquisitions [Abstract] | |
Business Combination Disclosure [Text Block] | Acquisitions BCE Acquisition On July 1, 2016, in connection with the Company’s strategy to broaden its live experience offerings, the Company acquired a controlling interest in BCE , the live events production company that owns and operates the Boston Calling Music Festival. The Company acquired net tangible assets of $2,221 . In addition, based on the purchase price allocation, the Company recognized $11,610 of amortizable intangible assets and $12,728 of goodwill. See Note 6 for more information regarding the intangible assets and goodwill recognized in this acquisition. The estimated fair value of the nonredeemable noncontrolling interest of $11,394 was based on the present value of future cash flows, adjusted for the lack of control and lack of marketability associated with the nonredeemable noncontrolling interests and was classified within Level III of the fair value hierarchy as they were valued using unobservable inputs. An additional escrow payment in the amount of $1,750 was made for potential earn-out. The amounts of revenue and net income (excluding the impact of purchase price accounting adjustments of $905 ) of BCE since the acquisition date included in the Company’s consolidated statements of operations for the reporting period were approximately $16,000 and $1,500 , respectively. Pro forma information is not provided since the acquisition was not material when compared with the Company’s consolidated financial statements. Investment in Townsquare Media, Inc. On August 16, 2016, the Company acquired 3,208 shares, or approximately 12% , of the common stock of Townsquare Media, Inc. (“ Townsquare ”) for approximately $23,000 in cash. Townsquare is a leading media, entertainment and digital marking solutions company that is listed on the New York Stock Exchange (“NYSE”) under the symbol “TSQ.” This investment is reported in the accompanying consolidated balance sheet as of June 30, 2017 in other assets, and is classified as available-for-sale securities in accordance with ASC Topic 320, Investments — Debt and Equity Securities . Investments in available-for-sale securities are carried at fair market value with the unrealized gains and losses, net of tax, included in the determination of comprehensive income (loss) and reported in the Company’s equity. See Note 9 for more information on the fair value of the investment in Townsquare . TAO Group Acquisition In connection with the Company’s strategy to broaden its portfolio of live offerings, on January 31, 2017 the Company entered into a transaction agreement pursuant to which it acquired a 62.5% common equity interest and a preferred equity interest in TAO Group , which indirectly owns all of the equity of TAO Group Operating LLC (“ TAOG ”). TAO Group is engaged in the management and operation of restaurants, nightlife and hospitality venues in Las Vegas, New York City, Los Angeles and Australia (with additional venues under contract which are expected to open in New York City, Chicago and Singapore in the coming years). The initial purchase price of $178,627 , including $8,746 to acquire preferred equity in TAO Group , is net of cash acquired of $11,344 and subject to customary working capital adjustments. In addition, the Company will be responsible to pay an earn-out of up to approximately $25,500 , if certain performance conditions based upon earnings growth are met during the first five years following the transaction. The Company’s purchase price allocation for the TAO Group acquisition is preliminary and subject to revision as additional information related to the fair value of the identifiable net assets and redeemable noncontrolling interests becomes available. The preliminary allocation of the purchase price to the assets acquired, liabilities assumed and allocation to intangible assets is presented below: (as initially reported) January 31, 2017 Measurement Period Adjustments (as adjusted) January 31, 2017 Cash and cash equivalents $ 11,344 $ — $ 11,344 Accounts receivable 5,804 — 5,804 Prepaid expenses 1,167 — 1,167 Other current assets 41,009 — 41,009 Property and equipment 53,411 — 53,411 Amortizable intangible assets 239,640 (1,387 ) 238,253 Other assets 1,472 — 1,472 Accounts payable (7,046 ) — (7,046 ) Accrued expenses and other current liabilities (39,814 ) 495 (39,319 ) Long-term loan payable, net of deferred financing costs (105,292 ) — (105,292 ) Other long-term liabilities (16,244 ) 8,119 (8,125 ) Total identifiable net assets acquired 185,451 7,227 192,678 Goodwill (a) 97,420 (7,227 ) 90,193 Redeemable noncontrolling interests (b) (85,000 ) — (85,000 ) Total estimated consideration, including potential future contingent consideration $ 197,871 $ — $ 197,871 _______________________ (a) Goodwill recognized in this acquisition is expected to be deductible for tax purposes. (b) The minority shareholders holding the remaining 37.5% of TAO Group have various forms of put options that may be exercised upon the occurrence of certain conditions. If such an option is exercised prior to January 31, 2022, it would require the Company to purchase the equity of TAO Group at fair market value (subject, in certain cases, to mandatory discounts) as determined by the parties or by a third party appraisal pursuant to the terms of the TAO Group operating agreement. If such an option is exercised after January 31, 2022, it would require TAO Group to purchase the equity at fair market value as determined by the parties or by a third party appraisal pursuant to the terms of the TAO Group operating agreement. The Company may elect to satisfy this TAO Group obligation through a sale of TAO Group . In addition, the Company has a call option to purchase the remaining 37.5% equity of TAO Group at fair market value after the fifth anniversary of the acquisition date, or earlier if certain conditions are met. Both put and call options can be settled at the Company’s discretion in cash, debt or shares of the Company’s Class A Common Stock. The ultimate amount paid upon the exercise of a put or call option will likely be different from the estimated fair value, given the calculations required pursuant to the TAO Group operating agreement. Amortizable intangible assets, goodwill, inventory, property and equipment, redeemable noncontrolling interests and the fair value of contingent consideration that arose from this acquisition were classified within Level III of the fair value hierarchy as they were valued using unobservable inputs, reflecting the Company’s best estimate of what hypothetical market participants would use to determine the value of acquired assets at the reporting date based on the best information available in the circumstances. When a determination is made to classify items within Level III of the fair value hierarchy, the evaluation is based upon the significance of the unobservable inputs to the overall fair value measurement. See Note 6 for more information regarding the intangible assets and goodwill recognized in this acquisition. See Note 9 for more information regarding the fair value of the Company’s contingent consideration liabilities arisen from this acquisition. The initial estimated fair value of the redeemable noncontrolling interests at the time of acquisition was based on the option pricing method, adjusted for lack of marketability associated with the redeemable noncontrolling interests and was classified within Level III of the fair value hierarchy as they were valued using unobservable inputs. This methodology differs in important respects from, and is likely to generate a different result than, the calculations required pursuant to the TAO Group operating agreement to determine the price paid upon a put or call of TAO Group interests. Roof Deck Entertainment LLC (“ Roof Deck ”), an indirect majority owned subsidiary of the Company, and Nevada Property 1, LLC, the owner of the property where the Marquee Las Vegas venue is located, were defendants in a lawsuit arising out of an incident at the Marquee Las Vegas venue that took place on April 7, 2012. The matter was settled on April 28, 2017 pursuant to which payments to the plaintiff will be made by insurance companies. The settlement related liability and a corresponding receivable in the same amount reflecting expected insurance recoveries are reported in other accrued liabilities and other current assets, respectively, in the accompanying consolidated balance sheet as of June 30, 2017 and reflected in the TAO Group purchase price allocation disclosed above. The co-defendant’s insurance carrier has filed suit against TAO Group ’s insurance carrier and Roof Deck for payments made by the co-defendant’s insurance carrier in connection with the settlement of the matter. TAO Group ’s insurance carrier has agreed to indemnify Roof Deck in connection with the lawsuit. In addition to various other lawsuits, Roof Deck is also a defendant in another personal injury action for which there may not be sufficient insurance. Unaudited Pro Forma Disclosure TAO Group financial statements are not available within the time constraints the Company requires to ensure the financial accuracy of the operating results. Therefore, the Company records TAO Group ’s operating results in its consolidated statements of operations on a three-month lag basis. As such, the operating results of TAO Group for the period from February 1, 2017 to March 26, 2017 are reflected in the Company’s consolidated financial statements. The amounts of revenues and net income (excluding the impact of purchase price accounting adjustments of $11,713 ) attributable to TAO Group since the acquisition date included in the Company’s consolidated statements of operations for the year ended June 30, 2017 were $34,332 and $58 , respectively. Net income includes recurring management fees of $833 due to the Company, which is eliminated in the Company’s consolidated financial statements, as well as interest expense of $1,702 associated with the TAO Group senior secured term loan facility and depreciation and amortization expense of $1,064 . See Note 10 for more information. The unaudited pro forma information presented below illustrates the estimated impact of the TAO Group acquisition on the Company’s revenue and net income (loss) as if the acquisition, as described above, occurred on July 1, 2015. The information presented below is based on a preliminary estimate of the purchase price allocation to the assets and liabilities acquired. The unaudited pro forma information below includes the historical statements of operations of TAO Group for the years ended March 31, 2017 and 2016, respectively, combined with the Company’s consolidated statements of operations for the years ended June 30, 2017 and 2016, respectively. Due to the nature of various pro forma adjustments, as discussed below, the pro forma results attributable to TAO Group do not equal to what TAO Group ’s results would have been had TAO Group reported on a stand-alone basis. Furthermore, the unaudited pro forma financial information presented below does not reflect any impact that may be achieved by the combined business, such as expected savings from the restructured management compensation at TAO Group , and is presented for comparative purposes only. It is not necessarily indicative of the results of operations that actually would have been achieved had the acquisition been consummated on July 1, 2015 or that may result in the future. Years Ended June 30, 2017 2016 Revenues $ 1,519,725 $ 1,333,765 Net loss attributable to The Madison Square Garden Company’s stockholders (64,443 ) (98,934 ) The historical financial information has been adjusted to reflect various purchase accounting adjustments, such as depreciation and amortization expenses associated with property and equipment and intangible assets, as well as pro forma interest expense adjustments to reflect the Company’s new capital structure related to the senior secured term loan facility and income taxes. In addition, the pro forma information for the year ended June 30, 2017 excludes the impact of the Company’s and TAO Group ’s acquisition-related expenses as these items are reflected in the year ended June 30, 2016 as if the acquisition had been completed on July 1, 2015. The pro forma results for the year ended June 30, 2016 also include the expense impact from the step-up of inventory as this item is assumed to have occurred during the quarter ended September 30, 2015 as if the acquisition had been completed on July 1, 2015. Other Acquisition Related Activities For the years ended June 30, 2017 and 2016, the Company recognized $7,153 and $2,457 , respectively, of acquisition-related expenses in connection with the TAO Group acquisition within selling, general and administrative expenses in the accompanying consolidated statements of operations. In addition, in connection with this transaction, TAO Group Intermediate Holdings LLC (“ TAOIH ”), a subsidiary of TAO Group , TAOG and certain of its subsidiaries obtained a five -year term senior secured term loan facility of $110,000 from a third party group of lenders to fund the acquisition of TAO Group and a senior secured revolving credit facility of up to $12,000 with a term of five years for working capital and general corporate purposes of TAOG . These credit facilities are provided without recourse to the Company or any of its affiliates (other than TAOIH and its subsidiaries). See Note 10 for more information regarding these credit facilities. |
Team Personnel Transactions
Team Personnel Transactions | 12 Months Ended |
Jun. 30, 2017 | |
Team Personnel Transactions [Abstract] | |
Team Personnel Transactions | Team Personnel Transactions Direct operating and selling, general and administrative expenses in the accompanying consolidated and combined statements of operations include net provisions for transactions relating to players and certain other team personnel on the Company’s sports teams for (i) waivers/contract termination costs, (ii) trades and (iii) season-ending injuries (“Team Personnel Transactions”). Team Personnel Transactions amounted to $42,337 , $7,484 and $25,317 for the years ended June 30, 2017 , 2016 and 2015 , respectively. |
Investments and Loans to Noncon
Investments and Loans to Nonconsolidated Affiliates | 12 Months Ended |
Jun. 30, 2017 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | |
Cost and Equity Method Investments Disclosure [Text Block] | Investments and Loans to Nonconsolidated Affiliates The Company’s investments and loans to nonconsolidated affiliates which are accounted for under the equity method and cost method of accounting in accordance with ASC Topic 323, Investments - Equity Method and Joint Ventures , and ASC Topic 325, Investments - Other , respectively, consisted of the following: Ownership Percentage Investment Loan Total June 30, 2017 Equity method investments: Azoff MSG Entertainment LLC (“AMSGE”) 50 % $ 104,024 $ 97,592 (b) $ 201,616 Brooklyn Bowl Las Vegas, LLC (“BBLV”) (a) — 2,662 (b) 2,662 Tribeca Enterprises LLC (“Tribeca Enterprises”) 50 % 12,864 14,370 (c) 27,234 Fuse Media LLC (“Fuse Media”) 15 % — — — Cost method investments 10,775 — (d) 10,775 Total investments and loans to nonconsolidated affiliates $ 127,663 $ 114,624 $ 242,287 June 30, 2016 Equity method investments: AMSGE 50 % $ 112,147 $ 97,500 $ 209,647 BBLV (a) — 2,662 (b) 2,662 Tribeca Enterprises 50 % 13,736 10,395 (c) 24,131 Fuse Media 15 % 21,634 — 21,634 Cost method investments 3,794 1,678 5,472 Total investments and loans to nonconsolidated affiliates $ 151,311 $ 112,235 $ 263,546 _________________ (a) The Company is entitled to receive back its capital, which was 74% of BBLV’s total capital as of June 30, 2017 and 2016 , plus a preferred return, after which the Company would own a 20% interest in BBLV. (b) Represents outstanding loan balances, inclusive of amounts due to the Company for interest of $154 and $62 as of June 30, 2017 and 2016 , respectively. (c) Includes outstanding payments-in-kind (“PIK”) interest of $870 and $95 as of June 30, 2017 and 2016 , respectively. PIK interest owed does not reduce availability under the revolving credit facility. (d) During the quarter ended March 31, 2017, one of the Company’s cost method investees converted $1,774 of outstanding principal amount of its convertible promissory note and unpaid accrued interest into preferred shares. The Company determined that these investments are not VIEs and therefore each was analyzed under the voting model. The Company determined that due to a lack of a voting majority and consistent with the accounting for partnership (or similar entities) interests, it does not control these entities. Accordingly, the Company accounts for these investments under the equity method of accounting or cost method of accounting in accordance with ASC 323 and ASC 325, respectively. In addition, for an investment in a limited liability company in which the Company has an ownership interest that exceeds 3-5%, the Company also accounts for such investment under the equity method of accounting. In September 2013, the Company acquired a 50% interest in AMSGE for $125,000 . The AMSGE entity owns and operates businesses in the entertainment industry and is currently focused on music management, performance rights, comedy and productions, and strategic marketing. As of the acquisition date the carrying amount of the investment was greater than the Company’s equity in the underlying assets of AMSGE. As such, the Company allocated the difference to goodwill and amortizable intangible assets of $108,220 and $17,350 , respectively. The difference attributable to amortizable intangible assets is being amortized straight-line over the expected useful lives of the intangible assets, which range from 5 to 7 years. In connection with the Company’s investment in AMSGE, the Company provides a $100,000 unsecured revolving credit facility to the entity. In August 2013, the Company acquired an interest in BBLV. In March 2014, BBLV opened a new venue in Las Vegas which brings together live music, bowling and a restaurant. The Company does not manage or otherwise control BBLV but has approval rights over certain decisions. Additionally, the Company agreed to loan up to $2,600 to BBLV. During the second quarter of fiscal year 2015, as a result of BBLV’s liquidity position, the Company evaluated whether or not an impairment of its investment had occurred. This evaluation resulted in the Company recording a pre-tax non-cash impairment charge of $23,600 to write-off the carrying value of its equity investment in BBLV, which is reflected in equity in loss of nonconsolidated affiliates in the accompanying consolidated statement of operations for the year ended June 30, 2015. The impairment charge was based on a comparison of the fair value of the investment, which was determined using a discounted cash flow analysis, to its carrying value. In March 2014, the Company acquired a 50% interest in Tribeca Enterprises for $22,500 . Tribeca Enterprises owns and operates the Tribeca Film Festival and certain other businesses. As of the acquisition date the carrying amount of the investment was greater than the Company’s equity in the underlying assets of Tribeca Enterprises. As such, the Company allocated the difference to indefinite-lived and amortizable intangible assets of $5,750 and $5,350 , respectively. The difference attributable to amortizable intangible assets is being amortized straight-line over 10 years, the expected useful life of the intangible asset. In connection with the Company’s investment in Tribeca Enterprises, the Company provided a $14,000 revolving credit facility as of June 30, 2017. In August 2017, the revolving credit facility was amended to increase the borrowing capacity to $17,500 . The Company and Tribeca Enterprises have a services agreement pursuant to which the Company provides marketing inventory and consulting services to Tribeca Enterprises for a fee. In July 2014, MSG Networks sold Fuse to Fuse Media, Inc., and as part of the transaction MSG Networks received a 15% equity interest in Fuse Media which was transferred to the Company in connection with the Distribution. In the third quarter of fiscal year 2017, certain Fuse Media warrant holders notified Fuse Media of their intent to exercise certain put options (which Fuse Media disputed). The purported exercise of the put options triggered an assessment of Fuse Media’s fair value. This assessment, which was performed during the third quarter of fiscal 2017, resulted in unfavorable fair value measurements of Fuse Media. As a result, the Company evaluated whether or not an other-than-temporary impairment of its investment had occurred as of the third quarter of fiscal 2017. This evaluation resulted in the Company recording a pre-tax non-cash impairment charge of $20,613 to write off the carrying value of its equity investment in Fuse Media, which is reflected in loss in equity method investments in the accompanying consolidated statements of operations for the year ended June 30, 2017 . The impairment charge was based on a comparison of the fair value of the investment to its carrying value, which was determined using a discounted cash flow analysis. In addition to the investments discussed above, the Company also has other investments in various sports and entertainment companies and related technologies, primarily accounted for under the cost method of accounting. As a result of certain legal and regulatory actions against one of the Company’s cost method investments, the Company evaluated whether or not an other-than-temporary impairment of this cost method investment had occurred during the second quarter of fiscal year 2016. This evaluation resulted in the Company recording a pre-tax non-cash impairment charge of $4,080 to partially write down the carrying value of its cost method investment, which is reflected in miscellaneous income (expense) in the accompanying consolidated statement of operations for the year ended June 30, 2016. On May 5, 2016, one of the Company’s equity method nonconsolidated affiliates announced that it would close its Broadway production of Finding Neverland on August 21, 2016. As a result, the Company recorded a non-cash impairment charge of $7,270 to write off the carrying value of the Company’s investment in the show during the fourth quarter of fiscal year 2016, which is reflected in loss in equity method investments in the accompanying consolidated statement of operations for the year ended June 30, 2016. The following is summarized financial information for all of the Company’s equity method investments as required by the guidance in SEC Regulation S-X Rule 4-08(g). The amounts shown below represent 100% of these equity method investments’ financial position and results of operations. Balance Sheet June 30, 2017 June 30, 2016 Current assets $ 103,319 $ 76,111 Noncurrent assets 399,485 429,996 $ 502,804 $ 506,107 Current liabilities $ 116,454 $ 89,415 Noncurrent liabilities 399,165 394,923 Noncontrolling interests 59,205 60,832 Shareholders’ equity (72,020 ) (39,063 ) $ 502,804 $ 506,107 Years Ended June 30, Results of Operations 2017 2016 2015 Revenues $ 328,533 $ 280,924 $ 152,580 Loss from continuing operations (16,923 ) (31,206 ) (28,845 ) Net loss (16,923 ) (31,206 ) (28,845 ) Net loss attributable to controlling interest (17,399 ) (32,006 ) (28,742 ) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Intangible Assets | Goodwill and Intangible Assets The carrying amounts of goodwill, by reportable segment, as of June 30, 2017 and 2016 are as follows: June 30, June 30, MSG Entertainment (a) $ 161,900 $ 58,979 MSG Sports 218,187 218,187 $ 380,087 $ 277,166 ___________________ (a) The increase in the carrying amount of goodwill, as compared to June 30, 2016 , in the MSG Entertainment segment was due to the purchase price allocation for the BCE and TAO Group acquisitions during the first and third quarters of fiscal year 2017, respectively. The goodwill that arose from these acquisitions was valued using unobservable inputs within Level III of the fair value hierarchy, primarily from utilizing the discounted cash flow model, which is an income-based approach that allocates to goodwill any purchase price not specifically assigned to intangibles, fixed assets, working capital or noncontrolling interests. Goodwill recognized in these acquisitions is expected to be deductible for tax purposes. See Note 3 for more information on the allocation of the purchase price and goodwill recognized in connection with these acquisitions. During the first quarter of fiscal year 2017 , the Company performed its annual impairment test of goodwill and determined that there were no impairments of goodwill identified for any of its reportable segments. The Company’s indefinite-lived intangible assets as of June 30, 2017 and 2016 are as follows: Sports franchises (MSG Sports segment) $ 101,429 Trademarks (MSG Entertainment segment) 62,421 Photographic related rights (MSG Sports segment) 3,000 $ 166,850 During the first quarter of fiscal year 2017 , the Company performed its annual impairment test of identifiable indefinite-lived intangible assets and determined that there were no impairments identified. The Company’s intangible assets subject to amortization are as follows: June 30, 2017 Estimated Useful Lives Gross Accumulated Amortization Net Trade names (a) 10 to 25 years $ 98,530 $ (1,003 ) $ 97,527 Venue management contracts (b) 12 to 25 years 79,000 (761 ) 78,239 Favorable lease assets (c) 1.5 to 16 years 54,253 (812 ) 53,441 Season ticket holder relationships (d) 15 years 50,032 (40,871 ) 9,161 Festival rights 5 to 15 years 9,080 (739 ) 8,341 Other intangibles 5.75 to 15 years 13,217 (2,951 ) 10,266 $ 304,112 $ (47,137 ) $ 256,975 June 30, 2016 Gross Accumulated Amortization Net Season ticket holder relationships $ 73,124 $ (59,178 ) $ 13,946 Other intangibles 4,217 (2,434 ) 1,783 $ 77,341 $ (61,612 ) $ 15,729 ___________________ (a) The trade names, which are primarily attributable to the TAO Group acquisition, were valued using unobservable inputs within Level III of the fair value hierarchy, utilizing the discounted cash flow models and relief-from-royalty approach with a weighted-average amortization period of approximately 21 years. (b) The venue management contracts, which are attributable to the TAO Group acquisition, were valued using unobservable inputs within Level III of the fair value hierarchy, utilizing the discounted cash flow models with a weighted-average amortization period of approximately 18 years. (c) The favorable lease assets, which are attributable to the TAO Group acquisition, were valued using unobservable inputs within Level III of the fair value hierarchy, based on the difference between the actual lease rates and the current market rent for similar properties in those locations, discounted back to present value at a market rate for applicable leases with a weighted-average amortization period of approximately 13 years. (d) The recorded amount for the gross carrying value of season ticket holder relationships, and the related accumulated amortization, decreased during the year ended June 30, 2017 as certain relationships became fully amortized. Amortization expense for intangible assets, excluding the amortization of favorable lease assets of $812 which is reported in rent expense, was $7,805 , $6,595 , and $6,939 for the years ended June 30, 2017 , 2016 and 2015 , respectively. The Company expects its aggregate annual amortization expense for existing intangible assets subject to amortization for each fiscal year from 2018 through 2022 to be as follows: Fiscal year ending June 30, 2018 $ 20,530 Fiscal year ending June 30, 2019 20,350 Fiscal year ending June 30, 2020 19,319 Fiscal year ending June 30, 2021 16,798 Fiscal year ending June 30, 2022 16,598 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment As of June 30, 2017 and 2016 , property and equipment consisted of the following assets: June 30, June 30, Estimated Useful Lives Land $ 91,678 $ 91,678 Buildings 1,110,366 1,107,027 Up to 45 years Equipment 292,935 272,276 1 to 20 years Aircraft 38,090 38,090 20 years Furniture and fixtures 49,622 50,034 1 to 10 years Leasehold improvements 176,786 131,769 Shorter of term of lease or life of improvement Construction in progress 22,880 10,536 1,782,357 1,701,410 Less accumulated depreciation and amortization (623,086 ) (540,801 ) $ 1,159,271 $ 1,160,609 Depreciation and amortization expense on property and equipment was $99,583 , $95,887 and $101,819 for the years ended June 30, 2017 , 2016 and 2015 , respectively. The increase in gross property and equipment during the year ended June 30, 2017 was primarily due to the TAO Group acquisition. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies Contractual Obligations and Off Balance Sheet Arrangements The Company has various long-term noncancelable operating lease agreements, primarily for entertainment venues and office space expiring at various dates through 2033 . Certain leases include renewal provisions at the Company’s option and provide for additional rent based on sales. The rent expense associated with such operating leases is recognized on a straight-line basis over the initial lease term. The difference between rent expense and rent paid is recorded as deferred rent. Rent expense including amortization of favorable lease assets and an unfavorable lease liability under these lease agreements totaled $39,044 , $35,617 and $34,239 for the years ended June 30, 2017 , 2016 and 2015 , respectively. In addition, the Company has certain future cash payments required under contracts entered into by the Company in the normal course of business and outstanding letters of credit. As of June 30, 2017 , future minimum rental payments under leases having noncancelable initial lease terms, other cash payments required under contracts entered into by the Company in the normal course of business in excess of one year and outstanding letters of credit are as follows: Off-Balance Sheet Commitments Contractual Obligations reflected on the Balance Sheet (d) Operating Leases (a) Contractual Obligations (b) Letters of Credits (c) Total Total (e) Fiscal year ending June 30, 2018 $ 47,545 $ 153,860 $ 3,360 $ 204,765 $ 65,558 $ 270,323 Fiscal year ending June 30, 2019 45,911 138,610 — 184,521 4,007 188,528 Fiscal year ending June 30, 2020 44,035 69,696 — 113,731 4,006 117,737 Fiscal year ending June 30, 2021 42,239 22,013 — 64,252 4,480 68,732 Fiscal year ending June 30, 2022 42,769 679 — 43,448 3,475 46,923 Thereafter 134,496 6,934 — 141,430 12,977 154,407 $ 356,995 $ 391,792 $ 3,360 $ 752,147 $ 94,503 $ 846,650 _________________ (a) Include contractually obligated minimum lease payments for operating leases having an initial noncancelable term in excess of one year for the Company’s venues, including the newly acquired TAO Group venues, and corporate offices. (b) Consist principally of the MSG Sports segment’s obligations under employment agreements that the Company has with its professional sports teams’ personnel that are generally guaranteed regardless of employee injury or termination. (c) Consist of letters of credit obtained by the Company as collateral, primarily for lease agreements. (d) Consist primarily of amounts earned under employment agreements that the Company has with certain of its professional sports teams’ personnel in the MSG Sports segment. (e) Pension obligations have been excluded from the table above as the timing of the future cash payments is uncertain. See Note 11 for information on the future funding requirements under our pension obligations. In addition, see Note 5 for information on the revolving credit facilities provided by the Company to AMSGE and Tribeca Enterprises. In connection with the TAO Group acquisition, the Company has accrued contingent consideration as part of the purchase price. See Note 9 for further details of the amount recorded in the accompanying consolidated balance sheet as of June 30, 2017. In addition, see Note 10 for the principal repayments required under the senior secured term loan facility . Under the terms of lease agreements and related guaranties, subsidiaries of the Company have certain operating requirements, with one of these subsidiaries being also required to meet a certain net worth obligation. In the event that these subsidiaries were to fail to meet the required obligations and were unable to avail themselves of the cure options, the landlord could terminate the lease. Legal Matters The Company owns 50% of Azoff MSG Entertainment LLC, which in turn owns a majority interest in Global Music Rights, LLC (“GMR”). GMR is primarily a performance rights organization, whose business includes obtaining the right to license the public performance rights of songs composed by leading songwriters. GMR engaged in negotiations with the Radio Music Licensing Committee (“RMLC”), which represents over 10,000 commercial radio stations. On November 18, 2016, RMLC filed a complaint against GMR in the United States District Court for the Eastern District of Pennsylvania alleging that GMR is violating Section 2 of the Sherman Antitrust Act and seeking an injunction, requiring, among other things, that GMR issue radio stations licenses for GMR’s repertory, upon request, at a rate set through a judicial rate-making procedure, that GMR offer “economically viable alternatives to blanket licenses,” and that GMR offer only licenses for songs which are fully controlled by GMR. GMR and RLMC agreed to an interim license arrangement through September 30, 2017. GMR has advised the Company that it believes that the RMLC Complaint is without merit and is vigorously defending itself. On January 20, 2017, GMR filed a motion to dismiss or to transfer venue, asserting that the Eastern District of Pennsylvania is not a proper venue for the matter, lacks personal jurisdiction of GMR and that in any event the complaint fails to state a claim. On December 6, 2016, GMR filed a complaint against RMLC in the United States District Court for the Central District of California, alleging that RMLC operates as an illegal cartel that unreasonably restrains trade in violation of Section 1 of the Sherman Antitrust Act and California state law, and seeking an injunction restraining RMLC and its co-conspirators from enforcing or establishing agreements that unreasonably restrict competition for copyright licenses. The judge in the Central District of California recently denied RMLC’s motion to dismiss GMR’s claim for lack of ripeness and, on the basis that the two cases involve similar facts, stayed the California action in order to assess the status of the Pennsylvania case. On July 21, 2017, RMLC filed a preliminary injunction motion in the United States District Court for the Eastern District of Pennsylvania to extend the duration of the interim licenses which GMR had granted to certain radio stations. The district court determined that the jurisdictional matter should be decided prior to addressing the motion for preliminary injunction. The Company is a defendant in various other lawsuits. Although the outcome of these other lawsuits cannot be predicted with certainty, management does not believe that resolution of these other lawsuits will have a material adverse effect on the Company. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table presents the Company’s assets that are measured at fair value on a recurring basis, which include cash equivalents, marketable securities and available-for-sale securities: Fair Value Hierarchy June 30, 2017 2016 Assets: Commercial paper I $ 105,476 $ 79,968 Money market accounts I 102,884 159,881 Time deposits I 1,007,302 1,202,681 Marketable securities I — 787 Available-for-sale securities I 32,851 — Total assets measured at fair value $ 1,248,513 $ 1,443,317 All assets listed above are classified within Level I of the fair value hierarchy as they are valued using observable inputs that reflect quoted prices for identical assets in active markets. The carrying amount of the Company’s commercial paper , money market accounts and time deposits approximates fair value due to their short-term maturities. The carrying value and fair value of the Company’s financial instruments reported in the accompanying consolidated balance sheets are as follows: June 30, 2017 June 30, 2016 Carrying Value Fair Value Carrying Fair Assets Notes receivable, including interest accruals $ 2,610 $ 2,610 $ 7,090 $ 7,090 Marketable securities — — 787 787 Available-for-sale securities (a) 32,851 32,851 — — Liabilities Long-term debt, including current portion (b) 110,000 110,091 — — _________________ (a) Aggregate cost basis for available-for-sale securities , including transaction costs, was $23,222 as of June 30, 2017 . The unrealized gain recorded in accumulated other comprehensive income was $9,629 as of June 30, 2017 . The income tax expense, included in the accumulated other comprehensive loss, related to unrealized gains from available-for-sale securities , was $4,336 for the year ended June 30, 2017 . The fair value of the available-for-sale securities is determined based on quoted market prices in active market at NYSE, which is classified as a Level I input within the fair value hierarchy. (b) On January 31, 2017, TAOIH, TAOG and certain of its subsidiaries entered into a $110,000 senior secured five-year term loan facility. The Company’s long-term debt is classified within Level II of the fair value hierarchy as it is valued using quoted indices of similar securities for which the inputs are readily observable. In connection with the TAO Group acquisition (see Note 3 for further details), the Company recorded $7,900 as the initial fair value of contingent consideration liabilities as a part of purchase price. The fair value was estimated using a Monte-Carlo simulation model which included significant unobservable Level III inputs such as projected financial performance over the earn-out period ( five years) along with estimates for market volatility and the discount rate applicable to potential cash payouts. |
Credit Facilities (Notes)
Credit Facilities (Notes) | 12 Months Ended |
Jun. 30, 2017 | |
Credit Facilities [Abstract] | |
Debt Disclosure [Text Block] | Credit Facilities Knicks Revolving Credit Facility On September 30, 2016, New York Knicks, LLC (“ Knicks LLC ”), a wholly owned subsidiary of the Company, entered into a credit agreement (the “ Knicks Credit Agreement ”) with a syndicate of lenders providing for a senior secured revolving credit facility of up to $200,000 with a term of five years (the “ Knicks Revolving Credit Facility ”) to fund working capital needs and for general corporate purposes. The Knicks Revolving Credit Facility requires Knicks LLC to comply with a debt service ratio of 1.5:1.0 over a trailing four quarter period . As of June 30, 2017 , Knicks LLC was in compliance with this financial covenant . All borrowings under the Knicks Revolving Credit Facility are subject to the satisfaction of certain customary conditions. Borrowings bear interest at a floating rate, which at the option of Knicks LLC may be either (i) a base rate plus a margin ranging from 0.00% to 0.125% per annum or (ii) LIBOR plus a margin ranging from 1.00% to 1.125% per annum. Knicks LLC is required to pay a commitment fee ranging from 0.20% to 0.25% per annum in respect of the average daily unused commitments under the Knicks Revolving Credit Facility . The Knicks Revolving Credit Facility was undrawn as of June 30, 2017 . All obligations under the Knicks Revolving Credit Facility are secured by a first lien security interest in certain of Knicks LLC’s assets, including, but not limited to, (i) the Knicks LLC’s membership rights in the NBA and (ii) revenues to be paid to the Knicks LLC by the NBA pursuant to certain U.S. national broadcast agreements. Subject to customary notice and minimum amount conditions, Knicks LLC may voluntarily prepay outstanding loans under the Knicks Revolving Credit Facility at any time, in whole or in part, without premium or penalty (except for customary breakage costs with respect to Eurocurrency loans). Knicks LLC is required to make mandatory prepayments in certain circumstances, including without limitation if the maximum available amount under the Knicks Revolving Credit Facility is greater than 350% of qualified revenues. In addition to the financial covenant described above, the Knicks Revolving Credit Facility contains certain customary representations and warranties, affirmative covenants and events of default. The Knicks Revolving Credit Facility contains certain restrictions on the ability of Knicks LLC to take certain actions as provided in (and subject to various exceptions and baskets set forth in) the Knicks Revolving Credit Facility, including the following: (i) incurring additional indebtedness and contingent liabilities; (ii) creating liens on certain assets; (iii) making restricted payments during the continuance of an event of default under the Knicks Revolving Credit Facility; (iv) engaging in sale and leaseback transactions; (v) merging or consolidating; and (vi) taking certain actions that would invalidate the secured lenders’ liens on any Knicks LLC’s collateral. Knicks Unsecured Credit Facility On September 30, 2016, Knicks LLC entered into an unsecured revolving credit facility with a lender for an initial maximum credit amount of $15,000 and a one -year term (the “Knicks Unsecured Credit Facility”). This facility was undrawn as of June 30, 2017 and is expected to be renewed prior to expiration . Rangers Revolving Credit Facility On January 25, 2017, New York Rangers, LLC (“ Rangers LLC ”), a wholly owned subsidiary of the Company, entered into a credit agreement (the “ Rangers Credit Agreement ”) with a syndicate of lenders providing for a senior secured revolving credit facility of up to $150,000 with a term of five years (the “ Rangers Revolving Credit Facility ”) to fund working capital needs and for general corporate purposes. The Rangers Revolving Credit Facility requires Rangers LLC to comply with a debt service ratio of 1.5:1.0 over a trailing four quarter period . As of June 30, 2017 , Rangers LLC was in compliance with this financial covenant. All borrowings under the Rangers Revolving Credit Facility are subject to the satisfaction of certain customary conditions. Borrowings bear interest at a floating rate, which at the option of Rangers LLC may be either (i) a base rate plus a margin ranging from 0.125% to 0.50% per annum or (ii) LIBOR plus a margin ranging from 1.125% to 1.50% per annum. Rangers LLC is required to pay a commitment fee ranging from 0.375% to 0.625% per annum in respect of the average daily unused commitments under the Rangers Revolving Credit Facility . The Rangers Revolving Credit Facility was undrawn as of June 30, 2017 . All obligations under the Rangers Revolving Credit Facility are secured by a first lien security interest in certain of Rangers LLC’s assets, including, but not limited to, (i) Rangers LLC’s membership rights in the NHL, (ii) revenues to be paid to Rangers LLC by the NHL pursuant to certain U.S. and Canadian national broadcast agreements, and (iii) revenues to be paid to Rangers LLC pursuant to local media contracts. Subject to customary notice and minimum amount conditions, Rangers LLC may voluntarily prepay outstanding loans under the Rangers Revolving Credit Facility at any time, in whole or in part, without premium or penalty (except for customary breakage costs with respect to Eurocurrency loans). Rangers LLC is required to make mandatory prepayments in certain circumstances, including without limitation if the maximum available amount under the Rangers Revolving Credit Facility is less than 17% of qualified revenues. In addition to the financial covenant described above, the Rangers Revolving Credit Facility contains certain customary representations and warranties, affirmative covenants and events of default. The Rangers Revolving Credit Facility contains certain restrictions on the ability of Rangers LLC to take certain actions as provided in (and subject to various exceptions and baskets set forth in) the Rangers Revolving Credit Facility, including the following: (i) incurring additional indebtedness and contingent liabilities; (ii) creating liens on certain assets; (iii) making restricted payments during the continuance of an event of default under the Rangers Revolving Credit Facility; (iv) engaging in sale and leaseback transactions; (v) merging or consolidating; and (vi) taking certain actions that would invalidate the secured lenders’ liens on any of Rangers LLC’s assets securing the obligations under the Rangers Revolving Credit Facility. TAO Credit Facilities On January 31, 2017, TAOIH , TAOG , and certain of its subsidiaries entered into a credit and guaranty agreement with a syndicate of lenders providing for a senior secured term loan facility of $110,000 with a term of five years (the “ TAO Term Loan Facility ”) to fund, in part, the acquisition of TAO Group and a senior secured revolving credit facility of up to $12,000 with a term of five years (the “ TAO Revolving Credit Facility ,” and together with the TAO Term Loan Facility, the “ TAO Credit Facilities ”) for working capital and general corporate purposes of TAOG . The TAO Credit Facilities were obtained without recourse to MSG or any of its affiliates (other than TAOIH and its subsidiaries). The TAO Credit Facilities require TAOIH (i) to maintain, for the relevant TAO entities, a minimum consolidated liquidity of $5,000 at all times, (ii) to comply with a maximum total net leverage ratio of 4.00:1.00 initially and stepping down over time to 2.50:1.00 by the first quarter of calendar year 2021 and through the remainder of the term of the TAO Credit Facilities, and (iii) to comply with a minimum fixed charge coverage ratio of 1.50:1.00 initially and stepping down over time to 1.15:1.00 by the second quarter of calendar year 2021 and through the remainder of the term of the TAO Credit Facilities. As of March 26, 2017 , the most recent date for which compliance certificates were required to be delivered, TAOIH was in compliance with the financial covenants of the TAO Credit Facilities and the TAO Revolving Credit Facility was undrawn. The TAO entities under the TAO Credit Facilities are also subject to certain limitations with respect to making capital expenditures based upon the total net leverage ratio and other factors. The restrictions on capital expenditures are subject to certain “carry-forward” provisions and other customary carve-outs. All borrowings under the TAO Credit Facilities are subject to the satisfaction of certain customary conditions, including compliance with a maximum leverage multiple, accuracy of representations and warranties and absence of a default or event of default. Borrowings bear interest at a floating rate, which at the option of TAOG may be either (i) a base rate plus a margin ranging from 6.50% to 7.00% per annum or (ii) LIBOR plus a margin ranging from 7.50% to 8.00% per annum. TAOG is required to pay a commitment fee of 0.50% per annum in respect of the average daily unused commitments under the TAO Revolving Credit Facility . During the year ended June 30, 2017 , the Company made interest payments under the TAO Term Loan Facility of $770 . All obligations under the TAO Credit Facilities are secured by a first lien security interest in substantially all of the applicable TAO entities’ assets, including, but not limited to, a pledge of all of the capital stock of substantially all of TAOIH’s wholly-owned domestic subsidiaries and 65% of the voting capital stock, and 100% of the non-voting capital stock, of each of its first-tier foreign subsidiaries. Subject to customary notice and minimum amount conditions, TAOG may voluntarily prepay outstanding loans under the TAO Credit Facilities at any time, in whole or in part (subject to customary breakage costs with respect to LIBOR loans) with premiums due in respect of prepayments of the TAO Term Loan Facility or permanent reduction under the TAO Revolving Credit Facility, in each case, starting at 5.0% initially and stepping down to 0% after three years. Beginning March 31, 2018, TAOG is required to make scheduled amortization payments under the TAO Term Loan Facility in consecutive quarterly installments equal to $687.5 per quarter initially, stepping up over time to $4,125 per quarter by March 31, 2021 and through the final maturity date of the TAO Term Loan Facility with the final balance payable on such maturity date. TAOG is also required to make mandatory prepayments under the TAO Credit Facilities in certain circumstances, including, without limitation, 75% of excess cash flow, with a step-down to 50% when the total net leverage ratio is less than 2.00:1.00. The TAO Credit Facilities contain certain restrictions on the ability of TAOG to take certain actions as provided in (and subject to various exceptions and baskets set forth in) the TAO Credit Facilities, including, without limitation, the following: (i) incurring additional indebtedness; (ii) creating liens on assets; (iii) making distributions, dividends and other restricted payments; (iv) engaging in sale and leaseback transactions; (v) merging or consolidating; (vi) making investments; and (vii) prepaying certain indebtedness. Long-term debt maturities over the next five years for the TAO Term Loan Facility are as follows: Fiscal year ending June 30, 2018 $ — Fiscal year ending June 30, 2019 2,750 Fiscal year ending June 30, 2020 2,750 Fiscal year ending June 30, 2021 11,000 Fiscal year ending June 30, 2022 93,500 Thereafter — Deferred Financing Costs In connection with the various credit facilities as discussed above, $8,739 of deferred financing costs were incurred, which are being amortized to interest expense over the life of these credit facilities, ranging from one to five years. With respect to the TAO Term Loan Facility, the deferred financing costs are amortized on a straight-line basis over the five-year term of the facility, which approximates the effective interest method. The following table summarizes the presentation of the TAO Term Loan Facility and the related deferred financing costs in the accompanying consolidated balance sheet as of June 30, 2017 . TAO Term Loan Facility Deferred Financing Costs Total Long-term debt, net of deferred financing costs $ 110,000 $ (4,567 ) $ 105,433 The following table summarizes deferred financing costs, net of amortization, related to the Knicks Revolving Credit Facility, Knicks Unsecured Credit Facility, Rangers Revolving Credit Facility, and TAO Revolving Credit Facility as reported on the accompanying consolidated balance sheet: June 30, Other current assets $ 806 Other assets 2,784 |
Pension Plans and Other Postret
Pension Plans and Other Postretirement Benefit Plan | 12 Months Ended |
Jun. 30, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension Plans And Other Postretirement Benefit Plan | Pension Plans and Other Postretirement Benefit Plan Defined Benefit Pension Plans and Postretirement Benefit Plans Pre-Distribution Prior to the Distribution, MSG Networks sponsored a non-contributory, qualified cash balance retirement plan covering its non-union employees (the “Cash Balance Pension Plan”) and an unfunded non-contributory, non-qualified excess cash balance plan covering certain employees who participate in the underlying qualified plan (collectively, the “Cash Balance Plans”). Since March 1, 2011, the Cash Balance Pension Plan has also included the assets and liabilities of a frozen (as of December 31, 2007) non-contributory qualified defined benefit pension plan covering non-union employees hired prior to January 1, 2001. These plans had participants from each of MSG Networks’ historical businesses (Media, Sports and Entertainment) as well as corporate employees. Also, MSG Networks historically sponsored an unfunded non-contributory, non-qualified defined benefit pension plan for the benefit of certain employees who participate in an underlying qualified plan which was merged into the Cash Balance Pension Plan on March 1, 2011 (the “Excess Plan”). As of December 31, 2007, the Excess Plan was amended to freeze all benefits earned through December 31, 2007 and to eliminate the ability of participants to earn benefits for future service under these plans. The Cash Balance Plans have been amended to freeze participation and future benefit accruals effective December 31, 2015 for all employees. Therefore, after December 31, 2015, no employee of the Company who was not already a participant may become a participant in the plans and no further annual pay credits will be made for any future year. Existing account balances under the plans will continue to be credited with monthly interest in accordance with the terms of the plans. In addition, MSG Networks sponsored a non-contributory, qualified defined benefit pension plan covering certain of its union employees (the “Union Plan”). Benefits payable to retirees under the Union Plan are based upon years of service and this plan is specific to employees of the businesses constituting Madison Square Garden. The Cash Balance Plans, Union Plan, and Excess Plan are collectively referred to as the “Pension Plans.” MSG Networks also sponsored a contributory welfare plan which provides certain postretirement healthcare benefits to certain employees hired prior to January 1, 2001 who are eligible to commence receipt of early or normal benefits under the Cash Balance Pension Plan and their dependents, as well as certain union employees (“Postretirement Plan”). For purposes of the combined financial statements issued prior to the Distribution, it was determined that the Company was to be treated as the obligor for the Pension Plans’ and Postretirement Plan’s liabilities. Therefore, the combined financial statements reflect the full impact of such plans on both the financial information for the three months ended September 30, 2015 that is included in the results of operations for the year ended June 30, 2016 and the financial information for the year ended June 30, 2015. The pension expense related to employees of MSG Networks participating in any of these plans during these periods was reflected as a contributory charge from the Company to MSG Networks, resulting in a decrease to the expense recognized in the combined statements of operations. Post-Distribution As of the Distribution date, the Company and MSG Networks entered into an employee matters agreement (the “Employee Matters Agreement”) which determined each company’s obligations after the Distribution with regard to liabilities historically under the former MSG Networks’ Pension Plans and Postretirement Plan. Under the Employee Matters Agreement, the Company assumed or retained certain of the Pension Plans and the Postretirement Plan previously sponsored by MSG Networks, as discussed in further detail in “Certain Relationships and Related Party Transactions — Relationship Between MSG and Us After the Distribution — Employee Matters Agreement” in the Company’s Information Statement filed as Exhibit 99.1 to Amendment No. 6 to the registration statement on Form 10 filed with the SEC on September 11, 2015. The following table summarizes the projected benefit obligations, assets, funded status and the amounts recorded on the Company’s consolidated balance sheets as of June 30, 2017 and 2016 , associated with the Pension Plans and Postretirement Plan based upon actuarial valuations as of those measurement dates. Pension Plans Postretirement Plan June 30, June 30, 2017 2016 2017 2016 Change in benefit obligation: Benefit obligation at beginning of period $ 173,585 $ 174,131 $ 6,224 $ 8,704 Service cost 85 3,054 122 137 Interest cost 4,956 6,986 156 253 Actuarial loss (gain) (6,820 ) 17,115 (589 ) 708 Benefits paid (5,803 ) (4,849 ) (179 ) (417 ) Transfer of liabilities (a) — (22,852 ) — (3,161 ) Benefit obligation at end of period 166,003 173,585 5,734 6,224 Change in plan assets: Fair value of plan assets at beginning of period 110,261 99,596 — — Actual return on plan assets (999 ) 11,484 — — Employer contributions 11,263 4,030 — — Benefits paid (5,803 ) (4,849 ) — — Fair value of plan assets at end of period 114,722 110,261 — — Funded status at end of period $ (51,281 ) $ (63,324 ) $ (5,734 ) $ (6,224 ) _________________ (a) Represents the benefit obligation related to the MSG Networks Plans as of September 30, 2015, the date of the Distribution, net of pre-Distribution benefit payments of $142 for MSG Networks employees. Amounts recognized in the consolidated balance sheets as of June 30, 2017 and 2016 consist of: Pension Plans Postretirement Plan June 30, June 30, 2017 2016 2017 2016 Current liabilities (included in accrued employee related costs) $ (3,818 ) $ (3,286 ) $ (200 ) $ (227 ) Non-current liabilities (included in defined benefit and other postretirement obligations) (47,463 ) (60,038 ) (5,534 ) (5,997 ) $ (51,281 ) $ (63,324 ) $ (5,734 ) $ (6,224 ) Accumulated other comprehensive income (loss), before income tax, as of June 30, 2017 and 2016 consists of the following amounts that have not yet been recognized in net periodic benefit cost: Pension Plans Postretirement Plan June 30, June 30, 2017 2016 2017 2016 Actuarial gain (loss) $ (37,317 ) $ (42,120 ) $ 6 $ (583 ) Prior service credit — — 44 92 $ (37,317 ) $ (42,120 ) $ 50 $ (491 ) For the years ended June 30, 2017 , income tax expense, included in the net accumulated other comprehensive loss, related to the Pension Plans and Postretirement Plan was $2,141 . There were no income tax expenses related to the Pension Plans and Postretirement Plan that was included in the net accumulated other comprehensive loss for either of the years ended June 30, 2016 and 2015 . Components of net periodic benefit cost for the Pension Plans and Postretirement Plan recognized in direct operating and selling, general and administrative expenses in the accompanying consolidated and combined statements of operations for the years ended June 30, 2017 , 2016 and 2015 are as follows: Pension Plans Postretirement Plan Years Ended June 30, Years Ended June 30, 2017 2016 2015 2017 2016 2015 Service cost $ 85 $ 3,054 $ 6,495 $ 122 $ 137 $ 198 Interest cost 4,956 6,986 7,226 156 253 331 Expected return on plan assets (2,383 ) (2,960 ) (3,228 ) — — — Recognized actuarial loss 1,365 1,039 2,050 — — — Amortization of unrecognized prior service cost (credit) — 14 26 (48 ) (106 ) (138 ) Net periodic benefit cost $ 4,023 $ 8,133 $ 12,569 $ 230 $ 284 $ 391 The net periodic benefit cost for the Pension Plans reported in the table above includes $520 and $2,080 of expenses related to MSG Networks employees, representing the contributory charge from the Company to MSG Networks for participation in the Pension Plans during the years ended June 30, 2016 and 2015 , respectively. In addition, during the years ended June 30, 2016 and 2015 the Company allocated to MSG Networks $229 and $848 , respectively, of net periodic benefit cost for the Pension Plans related to corporate employees not specifically identified to either the Company or MSG Networks. The net periodic benefit cost for the Postretirement Plan reported in the table above includes $18 and $104 of expenses related to MSG Networks employees, representing the contributory charge from the Company to MSG Networks for participation in the Postretirement Plan during the years ended June 30, 2016 and 2015 , respectively. In addition, during the years ended June 30, 2016 and 2015 the Company allocated to MSG Networks $11 and $19 , respectively, of net periodic benefit cost for the Postretirement Plan related to corporate employees not specifically identified to either the Company or MSG Networks. Other pre-tax changes in plan assets and benefit obligations recognized in other comprehensive income (loss) for the years ended June 30, 2017 , 2016 and 2015 are as follows: Pension Plans Postretirement Plan Years Ended June 30, Years Ended June 30, 2017 2016 2015 2017 2016 2015 Actuarial gain (loss) $ 3,438 $ (8,532 ) $ (6,993 ) $ 589 $ (707 ) $ 855 Recognized actuarial loss 1,365 1,039 2,050 — — — Recognized prior service (credit) cost — 14 26 (48 ) (106 ) (138 ) Total recognized in other comprehensive income (loss) $ 4,803 $ (7,479 ) $ (4,917 ) $ 541 $ (813 ) $ 717 The estimated net loss for the Pension Plans expected to be amortized from accumulated other comprehensive income (loss) and recognized as a component of net periodic benefit cost over the next fiscal year is $1,239 . The estimated prior service credit for the Postretirement Plan expected to be amortized from accumulated other comprehensive income (loss) into net periodic benefit credit over the next fiscal year is $37 . Funded Status The accumulated benefit obligation for the Pension Plans aggregated to $166,003 and $173,585 at June 30, 2017 and 2016 , respectively. As of June 30, 2017 and 2016 each of the Pension Plans had accumulated benefit obligations and projected benefit obligations in excess of plan assets. Pension Plans and Postretirement Plan Assumptions Weighted-average assumptions used to determine benefit obligations (made at the end of the period) as of June 30, 2017 and 2016 are as follows: Pension Plans Postretirement Plan June 30, June 30, 2017 2016 2017 2016 Discount rate 3.81 % 3.61 % 3.54 % 3.27 % Rate of compensation increase n/a n/a n/a n/a Healthcare cost trend rate assumed for next year n/a n/a 7.25 % 7.25 % 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 2026 Weighted-average assumptions used to determine net periodic benefit cost (made at the beginning of the period) for the years ended June 30, 2017 , 2016 and 2015 are as follows: Pension Plans Postretirement Plan Years Ended June 30, Years Ended June 30, 2017 2016 2015 2017 2016 2015 Discount rate n/a 4.46 % 4.32 % n/a 4.05 % 4.00 % Discount rate - projected benefit obligation (a) 3.61 % n/a n/a 3.27 % n/a n/a Discount rate - service cost (a) 3.74 % n/a n/a 3.53 % n/a n/a Discount rate - interest cost (a) 2.99 % n/a n/a 2.72 % n/a n/a Expected long-term return on plan assets 3.38 % 4.06 % 4.24 % n/a n/a n/a Rate of compensation increase n/a n/a 3.00 % n/a n/a n/a Healthcare cost trend rate assumed for next year n/a n/a n/a 7.25 % 7.25 % 7.25 % 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 2026 2021 2020 _________________ (a) Effective July 1, 2016, the Company changed the approach used to measure service and interest cost components of net periodic benefit costs for Pension Plans and Postretirement Plan. Previously, the Company measured service and interest costs utilizing a single weighted-average discount rate derived from the yield curve used to measure the plans’ obligations. Beginning fiscal year 2017, the Company elected to measure service and interest costs by applying the specific spot rates along that yield curve to the plans’ liability cash flows (“Spot Rate Approach”). The Company believes the Spot Rate Approach provides a more accurate measurement of service and interest costs by improving the correlation between projected benefit cash flows and their corresponding spot rates on the yield curve. This change does not affect the measurement of the plans’ obligations and it is accounted for as a change in accounting estimate, which is applied prospectively. The discount rates were determined (based on the expected duration of the benefit payments for the plans) from the Willis Towers Watson U.S. Rate Link: 40-90 Discount Rate Model as of June 30, 2017 and 2016 to select a rate at which the Company believed the plans’ benefits could be effectively settled. This model was developed by examining the yields on selected highly rated corporate bonds. The expected long-term return on plan assets is based on a periodic review and modeling of the plans’ asset allocation structures over a long-term horizon. Expectations of returns for each asset class are the most important of the assumptions used in the review and modeling and are based on comprehensive reviews of historical data, forward-looking economic outlook, and economic/financial market theory. The expected long-term rate of return was selected from within the reasonable range of rates determined by (a) historical real returns, net of inflation, for the asset classes covered by the investment policy and (b) projections of inflation over the long-term period during which benefits are payable to plan participants. Assumed healthcare cost trend rates are a key assumption used for the amounts reported for the Postretirement Plan. A one percentage point change in assumed healthcare cost trend rates would have the following effects: Increase (Decrease) in Total of Service and Interest Cost Components for the Increase (Decrease) in Benefit Obligation at Years Ended June 30, June 30, 2017 2016 2015 2017 2016 One percentage point increase $ 34 $ 29 $ 67 $ 578 $ 723 One percentage point decrease (30 ) (27 ) (58 ) (155 ) (624 ) Plan Assets and Investment Policy The weighted-average asset allocation of the Pension Plans’ assets at June 30, 2017 and 2016 was as follows: June 30, Asset Classes (a) : 2017 2016 Fixed income securities 83 % 85 % Cash equivalents 17 % 15 % 100 % 100 % _____________________ (a) The Company’s target allocation for pension plan assets is 80% fixed income securities and 20% cash equivalents as of June 30, 2017 . Prior to the Distribution, investment allocation decisions were made by MSG Networks’ Investment and Benefits Committee. After the Distribution, investment allocation decisions have been made by the Company’s Investment and Benefits Committee, which takes into account investment advice provided by the Company’s external investment consultant. The investment consultant takes into account expected long-term risk, return, correlation, and other prudent investment assumptions when recommending asset classes and investment managers to the Company’s Investment and Benefits Committee. The investment consultant also takes into account the plans’ liabilities when making investment allocation recommendations. Those decisions are driven by asset/liability studies conducted by the external investment consultant who combines actuarial considerations and strategic investment advice. The major categories of the pension plan assets are cash equivalents and long duration bonds which are marked-to-market on a daily basis. Due to the fact that the pension plan assets are significantly made up of long duration bonds, the pension plan assets are subjected to interest-rate risk; specifically, a rising interest rate environment. However, these assets are structured in an asset/liability framework. Consequently, an increase in interest rates would cause a corresponding decrease to the overall liability of the plans, thus creating a hedge against rising interest rates. Additional risks involving the asset/liability framework include earning insufficient returns to cover future liabilities and imperfect hedging of the liability. In addition, a portion of the long duration bond portfolio is invested in non-government securities which are subject to credit risk of the bond issuer defaulting on interest and/or principal payments. Investments at Estimated Fair Value The cumulative fair values of the individual plan assets at June 30, 2017 and 2016 by asset class are as follows: Fair Value Hierarchy June 30, 2017 2016 Fixed income securities: U.S. Treasury Securities I $ 21,852 $ 26,102 U.S. corporate bonds II 62,295 54,945 Foreign issued corporate bonds II 10,979 12,161 Municipal bonds II 217 236 Money market accounts I 19,379 16,817 Total investments measured at fair value $ 114,722 $ 110,261 Contributions for Qualified Defined Benefit Pension Plans During the year ended June 30, 2017 , the Company contributed $11,000 to the Cash Balance Pension Plan and $240 to the Union Plan. The Company expects to contribute $9,000 and $250 to the Cash Balance Pension Plan and Union Plan, respectively, in fiscal year 2018 . Estimated Future Benefit Payments The following table presents estimated future fiscal year benefit payments for the Pension Plans and Postretirement Plan: Pension Plans Postretirement Plan Fiscal year ending June 30, 2018 $ 13,060 $ 203 Fiscal year ending June 30, 2019 8,960 249 Fiscal year ending June 30, 2020 7,800 296 Fiscal year ending June 30, 2021 7,280 359 Fiscal year ending June 30, 2022 7,460 404 Fiscal years ending June 30, 2023 – 2027 40,870 2,613 Defined Contribution Pension Plans Prior to the Distribution, MSG Networks sponsored the MSG Holdings, L.P. 401(k) Savings Plan (renamed The Madison Square Garden 401(k) Savings Plan) and the MSG Holdings, L.P. Excess Savings Plan. In connection with the Distribution, The Madison Square Garden 401(k) Savings Plan was converted into a multiple employer plan and, pursuant to the Employee Matters Agreement, the Company became the sponsor and a contributing employer to this plan. Additionally, the Company established the MSG S&E, LLC Excess Savings Plan (collectively with the MSG 401(k) Savings Plan, the “Savings Plans”), assuming the liabilities from the MSG Holdings, L.P. Excess Savings Plan relating to the Company’s employees. For the years ended June 30, 2017 , 2016 and 2015 , expenses related to the Savings Plans, excluding expenses related to MSG Networks’ employees, included in the accompanying consolidated and combined statements of operations were $8,374 , $4,191 and $3,080 , respectively. These amounts include $89 and $317 of expenses related to the Company’s corporate employees which were allocated to MSG Networks for the years ended June 30, 2016 and 2015 , respectively. In addition, prior to the Distribution, MSG Networks sponsored the MSG Holdings, L.P. 401(k) Union Plan (renamed The Madison Square Garden 401(k) Union Plan, the “Union Savings Plan”). In connection with the Distribution, the Union Savings Plan was converted into a multiple employer plan and, pursuant to the Employee Matters Agreement, the Company became the sponsor and a contributing employer to this plan. For the years ended June 30, 2017 , 2016 and 2015 , expenses related to the Union Savings Plan included in the accompanying consolidated and combined statements of operations were $646 , $676 and $724 , respectively. Multiemployer Plans The Company contributes to a number of multiemployer defined benefit pension plans, multiemployer defined contribution pension plans, and multiemployer health and welfare plans that provide benefits to retired union-represented employees under the terms of CBAs. Multiemployer Defined Benefit Pension Plans The multiemployer defined benefit pension plans to which the Company contributes generally provide for retirement and death benefits for eligible union-represented employees based on specific eligibility/participant requirements, vesting periods and benefit formulas. The risks to the Company of participating in these multiemployer defined benefit pension plans are different from single-employer defined benefit pension plans in the following aspects: • Assets contributed to a multiemployer defined benefit pension plan by one employer may be used to provide benefits to employees of other participating employers. • If a participating employer stops contributing to a multiemployer defined benefit pension plan, the unfunded obligations of the plan may be borne by the remaining participating employers. • If the Company chooses to stop participating in some of these multiemployer defined benefit pension plans, the Company may be required to pay those plans an amount based on the Company’s proportion of the underfunded status of the plan, referred to as a withdrawal liability. However, cessation of participation in a multiemployer defined benefit pension plan and subsequent payment of any withdrawal liability is subject to the collective bargaining process. The following table outlines the Company’s participation in multiemployer defined benefit pension plans for the years ended June 30, 2017 , 2016 and 2015 , and summarizes the contributions that the Company has made during each period. The “EIN” and “Pension Plan Number” columns provide the Employer Identification Number and the three-digit plan number for each applicable plan. The most recent Pension Protection Act zone status available as of June 30, 2017 and 2016 relates to the plan’s two most recent years ended which are indicated. Among other factors, plans in the red zone are generally less than 65% funded, plans in the orange zone are both less than 80% funded and have an accumulated funding deficiency or are expected to have a deficiency in any of the next six plan years, plans in the yellow zone are less than 80% funded, and plans in the green zone are at least 80% funded. The “FIP/RP Status Pending/Implemented” column indicates whether a funding improvement plan (“FIP”) for yellow/orange zone plans or a rehabilitation plan (“RP”) for red zone plans is either pending or has been implemented by the trustees of such plan. The zone status and any FIP or RP information is based on information that the Company received from the plan, and the zone status is as certified by the plan’s actuary. The last column lists the expiration date(s) or a range of expiration dates of the CBA to which the plans are subject. There are no other significant changes that affect such comparability. PPA Zone Status FIP/RP Status Pending / Implemented Madison Square Garden Contributions As of June 30, Years Ended June 30, Plan Name EIN Pension Plan Number 2017 2016 2017 2016 2015 Surcharge Imposed Expiration Date of CBA National Basketball Association Players’ Pension Plan 13-5582586 003 Yellow as of 2/1/2016 Yellow as of 2/1/2015 Implemented $ 1,830 $ 1,814 $ 1,853 No 6/2024 (with certain termination rights becoming effective 6/2023) Pension Fund of Local No. 1 of I.A.T.S.E. 13-6414973 001 Green as of 12/31/2015 Green as of 12/31/2014 No 2,325 2,236 2,380 No 9/30/2017 - 5/1/2018 National Hockey League Players’ Retirement Benefit Plan 46-2555356 001 Green as of 4/30/2016 Green as of 4/30/2015 No 1,364 1,311 1,359 No 9/2022 (with certain termination rights becoming effective 6/2020) All Other Multiemployer Defined Benefit Pension Plans 3,397 3,026 1,607 $ 8,916 $ 8,387 $ 7,199 The Company was listed in the following plans’ Form 5500’s as providing more than 5 percent of the total contributions for the following plans and plan years: Fund Name 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 December 31, 2015, 2014 and 2013 Pension Fund of Wardrobe Attendants Union Local 764 December 31, 2015, 2014 and 2013 32BJ/Broadway League Pension Fund December 31, 2015, 2014 and 2013 Pension Fund of Moving Picture Machine Operators Union of Greater New York, Local 306 December 31, 2013 Treasurers and Ticket Sellers Local 751 Pension Fund August 31, 2016 and 2015 Multiemployer Defined Contribution Pension Plans and Multiemployer Plans That Provide Health and Welfare Benefits The Company contributed $7,409 , $6,786 and $6,986 for the years ended June 30, 2017 , 2016 and 2015 , respectively, to multiemployer defined contribution pension plans. In addition, the Company contributed $1,763 , $1,613 and $1,507 for the years ended June 30, 2017 , 2016 and 2015 , respectively, to multiemployer plans that provide health and welfare benefits to retired employees. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation | Share-based Compensation In connection with the Distribution, the Company adopted its 2015 Employee Stock Plan (the “Employee Stock Plan”) and its 2015 Stock Plan for Non-Employee Directors (the “Non-Employee Director Plan”). Under the Employee Stock Plan, the Company is authorized to grant incentive stock options, non-qualified stock options, restricted shares, restricted stock units (“RSUs”), stock appreciation rights and other equity-based awards. The Company may grant awards for up to 2,650 shares of Madison Square Garden Class A Common Stock (subject to certain adjustments). Options and stock appreciation rights under the Employee Stock Plan must be granted with an exercise price of not less than the fair market value of a share of Madison Square Garden Class A Common Stock on the date of grant and must expire no later than 10 years from the date of grant (or up to one additional year in the case of the death of a holder). The terms and conditions of awards granted under the Employee Stock Plan, including vesting and exercisability, are determined by the Compensation Committee of the Board of Directors (“Compensation Committee”) and may include terms or conditions based upon performance criteria. RSUs that were awarded under the Employee Stock Plan are generally subject to three-year cliff vesting, or vest ratably over three years, with some RSUs being subject to certain performance conditions. RSUs that were awarded by the Company to its employees will settle in shares of the Company’s Class A Common Stock (either from treasury or with newly issued shares), or, at the option of the Compensation Committee, in cash. Under the Non-Employee Director Plan, the Company is authorized to grant non-qualified stock options, restricted stock units, restricted shares, stock appreciation rights and other equity-based awards. The Company may grant awards for up to 160 shares of Madison Square Garden Class A Common Stock (subject to certain adjustments). Options under the Non-Employee Director Plan must be granted with an exercise price of not less than the fair market value of a share of the Company’s Class A Common Stock on the date of grant and must expire no later than 10 years from the date of grant (or up to one additional year in the case of the death of a holder). The terms and conditions of awards granted under the Non-Employee Director Plan, including vesting and exercisability, are determined by the Compensation Committee. Unless otherwise provided in an applicable award agreement, options granted under this plan will be fully vested and exercisable, and restricted stock units granted under this plan will be fully vested, upon the date of grant and will settle in shares of the Company’s Class A Common Stock (either from treasury or with newly issued shares), or, at the option of the Compensation Committee, in cash, on the first business day after ninety days from the date the director’s service on the Board of Directors ceases or, if earlier, upon the director’s death. Treatment After the Distribution of Share-based Payment Awards Initially Granted Under MSG Networks Equity Award Programs Prior to the Distribution, certain Company employees and non-employee directors, as well as employees and non-employee directors of MSG Networks (some of whom are employees or directors of the Company) participated in MSG Networks’ equity award programs (“MSG Networks Stock Plans”). In connection with the Distribution, each holder of MSG Networks stock options at the Distribution date received Company stock options based on the one for three distribution ratio (i.e., one share of the Company’s Class A Common Stock for every three shares of MSG Networks Class A Common Stock). The existing exercise price was allocated between the existing MSG Networks options and the Company’s new options based upon the ten -day volume-weighted average prices of the MSG Networks Class A Common Stock and the Company’s Class A Common Stock, taking into account the one for three distribution ratio. As a result of this adjustment, 25.64% of the pre-Distribution exercise price of options was allocated to the MSG Networks options and 74.36% was allocated to the new Company options. The options with respect to the Company’s Class A Common Stock were issued under the Employee Stock Plan or the Non-Employee Director Plan, as applicable. In connection with the Distribution, one restricted stock unit of the Company (“MSG RSUs”) was issued in respect of every three MSG Networks’ restricted stock units (“Networks RSUs”) that were granted to employees prior to July 1, 2015 and were outstanding as of the Distribution date. In addition, all Networks RSUs and MSG Networks performance restricted stock units (“Networks PSUs”) granted to the Company’s employees during the three months ended September 30, 2015 and outstanding as of the Distribution date were converted into MSG RSUs and Company performance restricted stock units (“MSG PSUs”), respectively. Further, all Networks RSUs and Networks PSUs granted during the three months ended September 30, 2015 to employees that were employed by both MSG Networks and the Company following the Distribution were converted such that 70% of the value of such grants became MSG RSUs and MSG PSUs, respectively. All conversions described in this paragraph were calculated based upon the ten -day volume-weighted average price of the Company’s Class A Common Stock through October 14, 2015. The MSG RSUs and MSG PSUs with respect to the Company’s Class A Common Stock were issued under the Employee Stock Plan. Further, in connection with the Distribution, one share of the Company’s Class A Common Stock was issued in respect of every three Networks RSUs outstanding under MSG Networks’ 2010 Non-Employee Director Plan. These shares were issued under the Non-Employee Director Plan. As a result of the Distribution, 26 , 432 and 95 of the Company’s stock options, RSUs and PSUs, respectively, were issued to holders of MSG Networks equity awards. Share-based Compensation Expense Share-based compensation expense is generally recognized straight-line over the vesting term of the award, which typically provides for three -year cliff or graded vesting subject to continued employment. For awards that are graded vesting and subject to performance conditions to satisfy tax deductibility for executive officers, in addition to continued employment, the Company uses the graded-vesting method to recognize share-based compensation expense. For MSG PSUs granted during fiscal year 2016, the Company did not recognize share-based compensation expense during the first quarter of fiscal year 2016 as the performance conditions were not yet determined and therefore there was not a grant date for accounting purposes. On December 18, 2015, the Company’s Compensation Committee approved the conversion of the awards to three -year, time-vested awards. Such awards will cliff-vest on the third anniversary of the original grant date without a performance condition (other than conditions to satisfy tax deductibility for executive officers). As such, the Company began recognizing share-based compensation expense during the second quarter of fiscal year 2016. Share-based compensation expense, reduced for estimated forfeiture, was recognized in the consolidated and combined statements of operations as a component of direct operating expenses or selling, general and administrative expenses. The following table presents the share-based compensation, reduced for estimated forfeiture, recorded during the years ended June 30, 2017 , 2016 and 2015 . Years Ended June 30, 2017 2016 2015 Company RSUs and PSUs $ 39,960 $ 18,404 $ — MSG Networks RSUs 1,169 6,072 10,306 Total share-based compensation expense $ 41,129 $ 24,476 $ 10,306 As of June 30, 2017 , there was $54,476 of unrecognized compensation cost related to unvested RSUs and PSUs held by the Company’s employees. The cost is expected to be recognized over a weighted-average period of 2.0 years for unvested RSUs and PSUs. There were no costs related to share-based compensation that were capitalized. Share Units Award Activity The following table summarizes activity relating to the Company’s RSUs and PSUs for the year ended June 30, 2017 : Number of Weighted-Average Fair Value Per Share At Date of Grant Nonperformance Based Vesting RSUs PSUs and Performance Based Vesting Unvested award balance as of June 30, 2016 172 313 $ 167.51 Granted 124 181 $ 172.10 Vested (70 ) (24 ) $ 145.61 Forfeited (18 ) (6 ) $ 163.80 Unvested award balance as of June 30, 2017 208 464 $ 172.78 The fair value of RSUs and PSUs that vested during the year ended June 30, 2017 was $16,315 . RSUs granted under the MSG Employee Stock Plan were net share-settled to cover the required statutory tax withholding obligations. To fulfill the employees’ statutory minimum tax withholding obligations for the applicable income and other employment taxes, 34 of these RSUs, with an aggregate value of $6,003 were retained by the Company and reflected as financing activity in the accompanying consolidated statement of cash flows for the year ended June 30, 2017 . The fair value of RSUs that vested during the year ended June 30, 2016 was $2,164 . The weighted-average fair value per share at grant date of RSUs granted during the year ended June 30, 2016 was $176.04 . |
Stock Repurchase Program
Stock Repurchase Program | 12 Months Ended |
Jun. 30, 2017 | |
Stock Repurchase Program [Abstract] | |
Treasury Stock [Text Block] | Stock Repurchase Program On September 11, 2015, the Company’s board of directors authorized the repurchase of up to $525,000 of the Company’s Class A Common Stock once the shares of the Company’s Class A Common Stock began “regular way” trading on October 1, 2015. Under the authorization, shares of Class A Common Stock may be purchased from time to time in accordance with applicable insider trading and other securities laws and regulations. The timing and amount of purchases will depend on market conditions and other factors. During the year ended June 30, 2017 , the Company repurchased 827 shares of Class A Common Stock (based on the settlement date of such trades) for a total cost of $147,967 , including commissions and fees. These acquired shares have been classified as treasury stock in the accompanying consolidated balance sheet as of June 30, 2017 . As of June 30, 2017 , the Company had $271,322 of availability remaining under its stock repurchase authorization. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions As of June 30, 2017 , members of the Dolan family including trusts for members of the Dolan family (collectively, the “ Dolan Family Group ”), for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, collectively beneficially own all of the Company’s outstanding Class B Common Stock and own approximately 2.8% of the Company’s outstanding Class A Common Stock. Such shares of the Company’s Class A Common Stock and Class B Common Stock, collectively, represent approximately 71.3% of the aggregate voting power of the Company’s outstanding common stock. Members of the Dolan family are also the controlling stockholders of MSG Networks and AMC Networks Inc. (“AMC Networks”). Prior to June 21, 2016, members of the Dolan Family Group were also the controlling stockholders of Cablevision Systems Corporation (“Cablevision”). In connection with the Distribution, the Company has entered into various agreements with MSG Networks, including media rights agreements covering the Knicks and the Rangers games, an advertising sales representation agreement , and the TSA . Additionally, the Company has various agreements with Altice USA (formerly Cablevision). These agreements include arrangements with respect to a number of ongoing commercial relationships. On June 21, 2016, Cablevision was acquired by a subsidiary of Altice N.V. and a change in control occurred, which resulted in members of the Dolan Family no longer being controlling stockholders of the surviving company, Altice USA. Accordingly, Altice USA is not a related party of the Company, and thus the related party transactions disclosed herein that relate to Cablevision were recognized prior to June 21, 2016. On June 16, 2016, the Company entered into an arrangement with the Dolan Family Office, LLC (“DFO”), AMC Networks and MSG Networks providing for the sharing of certain expenses associated with executive office space which will be available to James L. Dolan (the Executive Chairman and a director of the Company and MSG Networks and a director of AMC Networks), Charles F. Dolan (the Executive Chairman and a director of AMC Networks and a director of the Company and MSG Networks), and the DFO which is controlled by Charles F. Dolan. Beginning in June 2016, the Company agreed to share certain executive support costs, including office space, executive assistants, security and transportation costs, for (i) the Company’s Executive Chairman with MSG Networks and (ii) the Company’s Vice Chairman with MSG Networks and AMC Networks. On January 11, 2017, the Company, through a wholly-owned subsidiary, and Quart 2C, LLC (“Q2C”), a company controlled by James L. Dolan, the Company’s Executive Chairman and director, and Kristin A. Dolan, his wife and director, entered into reciprocal aircraft lease agreements pursuant to which the Company and Q2C have agreed from time to time to make available for lease each party’s aircraft to the other party on a non-exclusive basis for rent at an hourly rate and specified expenses of each flight. On February 8, 2017, the Company, through a wholly-owned subsidiary, and AMC Networks entered into aircraft time sharing agreements, pursuant to which the Company has agreed from time to time to make the aircraft owned or leased by it available to AMC Networks for lease on a “time sharing” basis. On May 22, 2017, the Company, through a wholly-owned subsidiary, and Charles F. Dolan, a director of the Company, entered into an aircraft dry lease agreement pursuant to which the Company has agreed to make available for lease its G550 aircraft on a non-exclusive basis for rent at an hourly rate and specified expenses of each flight. Additionally, on May 22, 2017, the Company, through a wholly-owned subsidiary, and Sterling Aviation, LLC, a company controlled by Charles F. Dolan, also entered into a reciprocal aircraft dry lease agreement pursuant to which Sterling Aviation, LLC has agreed to make available for lease its GV aircraft on a non-exclusive basis for rent at an hourly rate and specified expenses of each flight. The Company, through a wholly-owned subsidiary, and MSG Networks are party to an aircraft time sharing agreement, pursuant to which the Company has agreed from time to time to make its aircraft available to MSG Networks for lease on a “time sharing” basis. Additionally, the Company and MSG Networks have agreed on an allocation of the costs of certain helicopter use by its shared executives. The Company also has certain arrangements with its nonconsolidated affiliates. Revenues and Operating Expenses The following table summarizes the composition and amounts of the transactions with the Company’s affiliates, primarily with MSG Networks and Cablevision (until its sale to Altice N.V. on June 21, 2016). These amounts are reflected in revenues and operating expenses in the accompanying consolidated and combined statements of operations for the years ended June 30, 2017 , 2016 and 2015 : Years Ended June 30, 2017 2016 2015 Revenues $ 150,534 $ 153,538 $ 88,051 Operating expenses (credits): Corporate general and administrative, net — MSG Networks $ (9,832 ) $ (38,122 ) $ (56,999 ) Consulting fees 3,943 3,444 — Advertising expenses 1,249 1,609 4,821 Transactions with Cablevision — 5,651 3,205 Other, net 72 15 1,269 Revenues In connection with the Distribution, the Company entered into new media rights agreements with MSG Networks covering the Knicks and Rangers, which provide MSG Networks with exclusive media rights to team games in their local markets and a new advertising sales representation agreement pursuant to which the Company has the exclusive right and obligation, for a commission, to sell MSG Networks’ advertising availabilities. Revenues from related parties primarily consist of local media rights recognized by the Company’s Sports segment from the licensing of team-related programming to MSG Networks under these new media rights agreements. Local media rights are generally recognized on a straight-line basis over the fiscal year. In addition, the Company and Tribeca Enterprises have a service agreement pursuant to which the Company provides marketing inventory and consulting services to Tribeca Enterprises for a fee. Corporate General and Administrative Expense, net - MSG Networks The Company’s corporate overhead expenses are primarily related to centralized functions, including executive compensation, finance, treasury, tax, internal audit, legal, information technology, human resources and risk management functions. Prior to the Distribution, allocations of corporate overhead and shared services expense were based on direct usage or the relative proportion of revenue or headcount. In addition, the Company’s Sports and Entertainment segments charged MSG Networks for various services performed on behalf of Former Parent. The amount for the year ended June 30, 2015 are presented net of charges of $2,935 received from MSG Networks for services rendered to the Company’s Sports and Entertainment segments. Furthermore, for the years ended June 30, 2017 and 2016 , Corporate general and administrative expense, net - MSG Networks reflects charges from the Company to MSG Networks under the TSA of $8,507 and $6,595 , respectively, net of general and administrative costs charged to the Company by MSG Networks. Consulting Fees The Company pays AMSGE and its nonconsolidated affiliates for advisory and consulting services that AMSGE and its nonconsolidated affiliates provide to the Company, and for the reimbursement of certain expenses in connection with such services. The amounts disclosed above exclude $5,000 paid to AMSGE for work performed towards securing the right to lease property to be developed in Las Vegas for the year ended June 30, 2016. That amount is included in other assets in the accompanying consolidated balance sheet as of June 30, 2017 and 2016 and will be amortized over the term of the lease. Advertising Expenses The Company incurs advertising expenses for services rendered by its related parties, primarily MSG Networks and Cablevision (until its sale to Altice N.V. on June 21, 2016), most of which are related to the utilization of advertising and promotional benefits by the Company. Transactions with Cablevision Amounts represent charges to the Company by Cablevision (until its sale to Altice N.V. on June 21, 2016) for corporate general and administrative expenses and telephone and other fiber optic transmission services. In addition, transactions with Cablevision included net charges related to a reciprocal aircraft arrangement between the Company and Cablevision (until its sale to Altice N.V. on June 21, 2016). Other Operating Expenses, net The Company and its related parties enter into transactions with each other in the ordinary course of business. Amounts charged to the Company for other transactions with its related parties are net of amounts charged by the Company to the Knickerbocker Group, LLC, an entity owned by James L. Dolan, the Executive Chairman and a director of the Company, for office space equal to the allocated cost of such space and the cost of certain technology services. In addition, other operating expenses include net charges relating to (i) reciprocal aircraft arrangements between the Company and each of Q2C and DFO/Sterling Aviation, LLC and (ii) time sharing agreements with MSG Networks and AMC Networks. Other See Note 5 for information on outstanding loans provided by the Company to its nonconsolidated affiliates. Cash Management Historically, MSG Networks used a centralized approach to cash management and financing of operations. The Company’s cash was available for use and was regularly “swept” by MSG Networks at its discretion. Transfers of cash both to and from MSG Networks are included as components of MSG Networks’ investment on the consolidated and combined statements of equity and redeemable noncontrolling interests. The primary components of the net transfers to/from MSG Networks are cash pooling/general financing activities, various expense allocations to/from MSG Networks, and receivables/payables from/to MSG Networks deemed to be effectively net settled at the Distribution date. MSG Networks’ Investment All balances and transactions among the Company and MSG Networks and its subsidiaries, which, prior to the Distribution, include intercompany activities, are shown as components of the Company’s equity. As the books and records of the Company were not kept on a separate basis from MSG Networks prior to the Distribution, the determination of the average net balance due to or from MSG Networks was not practicable for the periods prior to the Distribution. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure | Income Taxes For the periods prior to the Distribution, the Company did not file separate tax returns as the Company was included in the tax grouping of other MSG Networks entities within the respective entity’s tax jurisdiction. The income tax provision included in these periods has been calculated using the separate return basis, as if the Company filed a separate tax return. Income tax expense (benefit) is comprised of the following components: Years Ended June 30, 2017 2016 2015 Current expense: Federal $ — $ — $ — State and other — — — — — — Deferred expense (benefit): Federal (3,382 ) 325 288 State and other (1,022 ) (28 ) 148 (4,404 ) 297 436 Income tax expense (benefit) $ (4,404 ) $ 297 $ 436 The income tax expense differs from the amount derived by applying the statutory federal rate to pre-tax income principally due to the effect of the following items: Years Ended June 30, 2017 2016 2015 Federal tax benefit at statutory federal rate $ (28,418 ) $ (26,948 ) $ (14,087 ) State income taxes, net of federal benefit (6,716 ) (6,843 ) (3,334 ) Change in the estimated applicable corporate tax rate used to determine deferred taxes 672 (192 ) 699 Nondeductible disability insurance premiums expense 1,983 1,806 1,349 Tax effect of pre-distribution earnings — 519 — Federal tax credits (354 ) (426 ) (1,426 ) Gains in other comprehensive income (6,477 ) — — Book income of consolidated partnership attributable to non-controlling interest 1,414 — — Tax effect of indefinite intangible amortization 1,329 — — Change in valuation allowance (a) 30,697 31,301 16,260 Nondeductible expenses and other 1,466 1,080 975 Income tax expense (benefit) $ (4,404 ) $ 297 $ 436 _________________ (a) For the year ended June 30, 2016, the valuation allowance reflects an increase on the Company’s net deferred tax asset related to fiscal year 2016 activity from the time of the Distribution. As part of the Distribution, MSG Networks is responsible for paying taxes on approximately $348,000 of deferred revenue from ticket sales, sponsorship and suite rentals collected in advance related to the Company’s business. This initially created a deferred tax asset on which the Company recorded a full valuation allowance at the time of the Distribution as it was more likely than not that the deferred tax asset would not be realized. The tax effects of temporary differences which give rise to significant portions of the deferred tax assets and liabilities at June 30, 2017 and 2016 are as follows: June 30, 2017 2016 Deferred tax asset: Net operating loss carryforwards $ 104,648 $ 109,074 Tax credit carryforwards 706 426 Accrued employee benefits 84,809 92,799 Accrued expenses 25,672 32,605 Restricted stock and stock options 28,937 15,556 Deferred production costs 2,843 — Other 8,774 9,263 Total deferred tax assets $ 256,389 $ 259,723 Less valuation allowance (218,639 ) (190,602 ) Net deferred tax assets $ 37,750 $ 69,121 Deferred tax liabilities: Intangible and other assets $ (198,786 ) $ (199,308 ) Property and equipment (17,162 ) (25,364 ) Deferred production costs — (4,898 ) Prepaid expenses (7,782 ) (9,248 ) Investments (10,456 ) (24,886 ) Total deferred tax liabilities $ (234,186 ) $ (263,704 ) Net deferred tax liability $ (196,436 ) $ (194,583 ) In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax asset will not be realized. The Company’s ability to realize its deferred tax assets depends upon the generation of sufficient future taxable income to allow for the utilization of its deductible temporary differences carryforwards. At this time, based on current facts and circumstances, management believes that it is not more likely than not that the Company will realize the benefit for its net deferred tax asset excluding the deferred tax liability on indefinite lived intangibles, and a valuation allowance has been recorded on the same. Presenting the income tax expense and deferred taxes on a separate return basis results in the creation of net operating loss carryforwards reflected in the net deferred tax liability for the period beginning June 30, 2012 and ended June 30, 2015. For periods subsequent to the Distribution date, these net operating loss and tax credit carryforwards reflect amounts generated by the stand-alone Company beginning with the Distribution date. The federal and state income tax net operating loss carryforwards of $222,205 and $267,859 , respectively will primarily expire in 2036 . The expected benefit from these net operating loss carryforwards is recorded as a deferred tax asset of $104,648 . At this time, based on current facts and circumstances, management believes that it is not more likely than not that the Company will realize the benefit for its federal and state net operating loss deferred tax asset, therefore a full valuation allowance has been recorded. The operations of the Company were included in the consolidated federal income tax returns of MSG Networks for all periods prior to the Distribution date. Such inclusion results in utilization of losses each year to offset the taxable income of other members in MSG Networks’ federal consolidated group that are not included in these financial statements. Subsequent to the Distribution, any net operating losses generated by the Company are included as a deferred tax asset. The Company does not have any recorded unrecognized tax benefit for uncertain tax positions as of June 30, 2017 and 2016 . |
Segment Information
Segment Information | 12 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | The Company is comprised of two reportable segments: MSG Entertainment and MSG Sports. In determining its reportable segments, the Company assessed the guidance of FASB ASC 280-10-50-1, which provides the definition of a reportable segment. In accordance with the FASB guidance, the Company takes into account whether two or more operating segments can be aggregated together as one reportable segment as well as the type of discrete financial information that is available and regularly reviewed by its chief operating decision maker. The Company has evaluated this guidance and determined that there are two reportable segments. The Company allocates certain corporate costs and its performance venues operating expenses to each of its reportable segments. Allocated venue operating expenses include the non-event related costs of operating the Company’s venues, and include such costs as rent for the Company’s leased venues, real estate taxes, insurance, utilities, repairs and maintenance, and labor related to the overall management of the venues. Depreciation and amortization expense related to The Garden, The Theater at Madison Square Garden, the Forum, and certain corporate property, equipment and leasehold improvements not allocated to the reportable segments is reported in “ Corporate and Other .” Additionally, the Company does not allocate any purchase accounting adjustments to the reporting segments. During the first quarter of fiscal year 2017, the Company refined its approach to allocating corporate, performance venues operating and other shared expenses. Management analyzed the specific support provided by individual corporate and venue personnel, in part using a detailed efforts-based analysis. The Company considered the new approach to better define segment profitability for users of the financial information and, therefore, made this change in the first quarter of fiscal year 2017. Prior periods results are reflected as originally reported and have not been restated. Had the revised approach been used in fiscal year 2016, operating income reported in MSG Sports would have increased and operating loss reported in MSG Entertainment would have improved by $6,045 and $337 , respectively. These changes in the MSG Sports and MSG Entertainment segments operating income (loss) would have been offset by an increase of $6,382 in the operating loss of “Corporate and Other” for the year ended June 30, 2016. The adjusted operating income, as defined below, reported in MSG Sports would have increased and adjusted operating loss reported in MSG Entertainment would have improved during the year ended June 30, 2016 by $5,908 and $2,680 , respectively. These improvements would have been offset by an increase of $8,588 in the adjusted operating loss of “Corporate and Other” for the year ended June 30, 2016. The combined statements of operations for the year ended June 30, 2015 include allocations for certain support functions that were provided on a centralized basis by Former Parent and not historically recorded at the business unit level. As a result, it is not practicable to determine the impact the revised approach to allocating corporate, performance venues operating and other shared expenses would have on the Company reporting segments operating results for fiscal year 2015. The Company evaluates segment performance based on several factors, of which the key financial measure is their operating income (loss) before (i) depreciation, amortization and impairments of property and equipment and intangible assets, (ii) share-based compensation expense or benefit, (iii) restructuring charges or credits, and (iv) gains or losses on sales or dispositions of businesses, which is referred to as adjusted operating income (loss) , a non-GAAP measure. In addition to excluding the impact of the items discussed above, the impact of purchase accounting adjustments related to business acquisitions is also excluded in evaluating the Company’s consolidated adjusted operating income (loss) . The Company believes adjusted operating income (loss) is an appropriate measure for evaluating the operating performance of its business segments and the Company on a consolidated basis. Adjusted operating income (loss) and similar measures with similar titles are common performance measures used by investors and analysts to analyze the Company’s performance. The Company uses revenues and adjusted operating income (loss) measures as the most important indicators of its business performance, and evaluates management’s effectiveness with specific reference to these indicators. In the first quarter of fiscal 2017, the Company renamed its non-GAAP performance measure to adjusted operating income (loss) - formerly known as adjusted operating cash flow. There has been no change to the definition aside from the exclusion of the impact of purchase accounting adjustments related to acquisitions as a result of the Company’s purchase of a controlling interest in BCE and TAO Group, which occurred in the first and third quarter, respectively, in fiscal year 2017 . Adjusted operating income (loss) should be viewed as a supplement to and not a substitute for operating income (loss), net income (loss), cash flows from operating activities, and other measures of performance and/or liquidity presented in accordance with GAAP. The Company has presented the components that reconcile operating income (loss), the most directly comparable GAAP financial measure to adjusted operating income (loss) . Information as to the operations of the Company’s reportable segments is set forth below. Year ended June 30, 2017 MSG Entertainment MSG Sports Corporate and Purchase accounting adjustments Total Revenues $ 506,468 $ 811,984 $ — $ — $ 1,318,452 Direct operating expenses 378,325 473,590 — 9,466 (a) 861,381 Selling, general and administrative expenses 120,496 209,941 79,602 — (b) 410,039 Depreciation and amortization 11,339 9,319 83,578 3,152 (c) 107,388 Operating income (loss) (3,692 ) 119,134 (163,180 ) (12,618 ) (60,356 ) Loss in equity method investments (29,976 ) Interest income 11,836 Interest expense (4,189 ) Miscellaneous income (d) 1,492 Loss from operations before income taxes $ (81,193 ) Reconciliation of operating income (loss) to adjusted operating income (loss): Operating income (loss) (3,692 ) 119,134 (163,180 ) (12,618 ) (60,356 ) Add back: Share-based compensation expense 14,323 14,548 12,258 — 41,129 Depreciation and amortization 11,339 9,319 83,578 3,152 (c) 107,388 Other purchase accounting adjustments — — — 9,466 9,466 Adjusted operating income (loss) $ 21,970 $ 143,001 $ (67,344 ) $ — $ 97,627 Other information: Capital expenditures $ 11,460 $ 2,393 $ 30,371 $ — $ 44,224 Year ended June 30, 2016 MSG Entertainment MSG Sports Corporate and Total Revenues $ 415,390 $ 699,062 $ 859 $ 1,115,311 Direct operating expenses 341,637 396,220 — (a) 737,857 Selling, general and administrative expenses 96,204 182,131 55,268 (b) 333,603 Depreciation and amortization 9,884 10,957 81,641 (c) 102,482 Operating income (loss) (32,335 ) 109,754 (136,050 ) (58,631 ) Loss in equity method investments (19,099 ) Interest income 6,782 Interest expense (2,028 ) Miscellaneous expense (d) (4,017 ) Loss from operations before income taxes $ (76,993 ) Reconciliation of operating income (loss) to adjusted operating income (loss): Operating income (loss) (32,335 ) 109,754 (136,050 ) (58,631 ) Add back: Share-based compensation expense 7,870 10,316 6,290 24,476 Depreciation and amortization 9,884 10,957 81,641 (c) 102,482 Adjusted operating income (loss) $ (14,581 ) $ 131,027 $ (48,119 ) $ 68,327 Other information: Capital expenditures $ 4,974 $ 4,578 $ 62,164 (e) $ 71,716 Year ended June 30, 2015 MSG Entertainment MSG Sports Corporate and Total Revenues $ 414,161 $ 656,683 $ 707 $ 1,071,551 Direct operating expenses 307,373 417,508 — 724,881 Selling, general and administrative expenses 69,215 144,770 24,333 (b) 238,318 Depreciation and amortization 10,321 19,089 79,348 (c) 108,758 Operating income (loss) 27,252 75,316 (102,974 ) (406 ) Loss in equity method investments (40,590 ) Interest income 3,056 Interest expense (2,498 ) Miscellaneous income 190 Loss from operations before income taxes $ (40,248 ) Reconciliation of operating income (loss) to adjusted operating income (loss): Operating income (loss) 27,252 75,316 (102,974 ) (406 ) Add back: Share-based compensation expense 3,616 3,601 3,089 (f) 10,306 Depreciation and amortization 10,321 19,089 79,348 (c) 108,758 Adjusted operating income (loss) $ 41,189 $ 98,006 $ (20,537 ) $ 118,658 Other information: Capital expenditures $ 5,665 $ 4,513 $ 53,905 (e) $ 64,083 _________________ (a) MSG Entertainment’s direct operating expenses for the years ended June 30, 2017 and 2016 include $33,629 and $41,816 , respectively, of write-offs of deferred production costs associated with the New York Spectacular production (see Note 2). (b) Corporate and Other consists of unallocated corporate general and administrative costs. The amount for the year ended June 30, 2016 include approximately $6,900 of reorganization costs which primarily consists of severance and related benefits. Such costs were paid during fiscal year 2017. (c) Corporate and Other principally includes depreciation and amortization expense on The Garden, The Theater at Madison Square Garden, the Forum, and certain corporate property, equipment and leasehold improvement assets not allocated to the Company’s reportable segments. (d) Miscellaneous income for the year ended June 30, 2017 consists principally of the recovery of certain claims in connection with a third-party bankruptcy proceeding. Miscellaneous expenses for the year ended June 30, 2016 primarily include partial write-down of one of the Company’s cost method investments (see Note 5 ). (e) Corporate and Other ’ s capital expenditures for the year ended June 30, 2016 are primarily associated with the purchase of a new aircraft, as well as certain investments with respect to The Garden. Corporate and Other’s capital expenditures for the year ended June 30, 2015 is primarily associated with certain investments with respect to The Garden and the Forum. (f) The amount for the year ended June 30, 2015 include executive management transition costs. The table below sets forth, for the periods presented, the Company’s consolidated revenues for the years ended June 30, 2017 and 2016 and combined revenues for the year ended June 30, 2015 by component. Years Ended June 30, 2017 2016 2015 Revenues Event-related revenues (a) $ 908,941 $ 834,213 $ 816,300 Media rights revenues (b) 220,021 179,816 129,081 Advertising sales commission, sponsorship and signage revenues (c) 74,685 68,661 50,451 All other revenues (d) 114,805 32,621 75,719 $ 1,318,452 $ 1,115,311 $ 1,071,551 _________________ (a) Primarily consists of professional sports teams’, entertainment and other live sporting events revenues. These amounts include (i) ticket sales, (ii) other ticket-related revenue, (iii) food, beverage and merchandise sales, (iv) venue license fees, and (v) event-related sponsorship and signage revenues. (b) Primarily consists of telecast rights fees from MSG Networks and the Company’s share of league distributions. (c) Amounts exclude event-related sponsorship and signage revenues. (d) Primarily consists of (i) playoff revenue, which includes ticket sales, food, beverage and merchandise sales, and suite rental fees, (ii) nonevent-related food and beverage revenues and (iii) other non-media rights related league distributions. Substantially all revenues and assets of the Company’s reportable segments are attributed to or located in the United States and are primarily concentrated in the New York metropolitan area. |
Concentration of Risk (Notes)
Concentration of Risk (Notes) | 12 Months Ended |
Jun. 30, 2017 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | Concentrations of Risk Financial instruments that may potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents and accounts receivable. Cash and cash equivalents are invested in commercial paper , money market accounts and time deposits . The Company monitors the financial institutions and money market funds where it invests its cash and cash equivalents with diversification among counterparties to mitigate exposure to any single financial institution. The Company’s emphasis is primarily on safety of principal and liquidity and secondarily on maximizing the yield on its investments. The following individual non-affiliated customers accounted for the following percentages of the Company’s consolidated accounts receivable balances: June 30, 2017 2016 Customer A (a) 11 % 1 % Customer B 10 % 14 % ____________ (a) A receivable from Customer A as of June 30, 2017 is primarily associated with a nonrecurring transaction. The Company did not have a single non-affiliated customer that represented 10% or more of its consolidated revenues for the years ended June 30, 2017 , 2016 and 2015 . Revenues from MSG Networks amounted to $149,197 , $144,947 and $80,999 for the years ended June 30, 2017 , 2016 and 2015 , which represent 11% , 13% and 8% , respectively, of the Company’s consolidated revenues (see Note 14 ). As of June 30, 2017 , approximately 6,500 full-time and part-time employees, who represent approximately 50% of the Company’s workforce, are subject to CBAs. Approximately 34% are subject to CBAs that expired as of June 30, 2017 and approximately 23% are subject to CBAs that will expire by June 30, 2018 if they are not extended prior thereto. |
Interim Financial Information (
Interim Financial Information (Notes) | 12 Months Ended |
Jun. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | Interim Financial Information (Unaudited) The following is a summary of the Company’s selected quarterly financial data for the years ended June 30, 2017 and 2016 : Three Months Ended Year ended June 30, 2017 September 30, December 31, March 31, June 30, 2016 2016 2017 2017 Revenues $ 181,695 $ 445,150 $ 386,033 $ 305,574 $ 1,318,452 Operating expenses 214,538 386,899 379,327 398,044 1,378,808 Operating income (loss) $ (32,843 ) $ 58,251 $ 6,706 $ (92,470 ) $ (60,356 ) Net income (loss) $ (28,914 ) $ 57,421 $ (17,843 ) $ (87,453 ) $ (76,789 ) Net income (loss) attributable to The Madison Square Garden Company’s stockholders $ (28,626 ) $ 57,726 $ (17,545 ) $ (84,278 ) $ (72,723 ) Basic earnings (loss) per common share attributable to The Madison Square Garden Company’s stockholders $ (1.19 ) $ 2.41 $ (0.74 ) $ (3.58 ) $ (3.05 ) Diluted earnings (loss) per common share attributable to The Madison Square Garden Company’s stockholders $ (1.19 ) $ 2.39 $ (0.74 ) $ (3.58 ) $ (3.05 ) Three Months Ended Year ended June 30, 2016 September 30, December 31, March 31, June 30, 2015 2015 2016 2016 Revenues $ 150,381 $ 410,838 $ 336,328 $ 217,764 $ 1,115,311 Operating expenses 154,958 361,799 393,264 263,921 1,173,942 Operating income (loss) $ (4,577 ) $ 49,039 $ (56,936 ) $ (46,157 ) $ (58,631 ) Net income (loss) $ (1,603 ) $ 43,488 $ (60,756 ) $ (58,419 ) $ (77,290 ) Net income (loss) attributable to The Madison Square Garden Company’s stockholders $ (1,603 ) $ 43,488 $ (60,756 ) $ (58,419 ) $ (77,290 ) Basic earnings (loss) per common share attributable to The Madison Square Garden Company’s stockholders $ (0.06 ) $ 1.74 $ (2.47 ) $ (2.39 ) $ (3.12 ) Diluted earnings (loss) per common share attributable to The Madison Square Garden Company’s stockholders $ (0.06 ) $ 1.74 $ (2.47 ) $ (2.39 ) $ (3.12 ) |
Schedule of Valuation and Quali
Schedule of Valuation and Qualifying Accounts | 12 Months Ended |
Jun. 30, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (in thousands) (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, 2017 Allowance for doubtful accounts $ (1,282 ) $ (111 ) $ — $ 792 $ (601 ) Deferred tax valuation allowance (190,602 ) (30,697 ) — 2,660 (a) (218,639 ) $ (191,884 ) $ (30,808 ) $ — $ 3,452 $ (219,240 ) Year ended June 30, 2016 Allowance for doubtful accounts $ (467 ) $ (31 ) $ (914 ) (b) $ 130 $ (1,282 ) Deferred tax valuation allowance (171,336 ) (31,301 ) — 12,035 (c) (190,602 ) $ (171,803 ) $ (31,332 ) $ (914 ) $ 12,165 $ (191,884 ) Year ended June 30, 2015 Allowance for doubtful accounts $ (537 ) $ (58 ) $ — $ 128 $ (467 ) Deferred tax valuation allowance (182,378 ) (16,260 ) — 27,302 (d) (171,336 ) $ (182,915 ) $ (16,318 ) $ — $ 27,430 $ (171,803 ) _____________________________ (a) Net decrease in valuation allowance is primarily due to the effect in the accumulated other comprehensive income. (b) The increase was primarily due to a balance transfer made in connection with the Distribution. (c) Net decrease in valuation allowance represents $15,613 for pre-Distribution activity partially offset by $3,578 recorded to accumulated other comprehensive income. (d) Net decrease in valuation allowance represents $29,189 for the transfer of an equity interest in Fuse Media, LLC from MSG Networks to the Company that has a different basis for financial reporting and tax purposes, partially offset by $1,887 recorded to accumulated other comprehensive income. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Combination | Principles of Consolidation and Combination For the periods prior to the Distribution, the financial statements include certain assets and liabilities that were historically held at Former Parent’s corporate level but were specifically identifiable or otherwise attributable to the Company. All intercompany transactions between the Company and Former Parent have been included in the combined financial statements as components of MSG Networks’ investment. All significant intracompany transactions and accounts within the Company’s consolidated and combined financial statements have been eliminated. Expenses related to corporate allocations prior to the Distribution were considered to be effectively settled in the combined financial statements at the time the transaction was recorded, with the offset recorded against MSG Networks’ investment. |
Business Combinations and Noncontrolling Interests | The acquisition method of accounting for business combinations requires management to use significant estimates and assumptions, including fair value estimates, as of the business combination date and to refine those estimates as necessary during the measurement period (defined as the period, not to exceed one year, in which the Company is allowed to adjust the provisional amounts recognized for a business combination). Under the acquisition method of accounting, the Company recognizes separately from goodwill the identifiable assets acquired, the liabilities assumed, and any noncontrolling interests in an acquiree, generally at the acquisition date fair value. The Company measures goodwill as of the acquisition date as the excess of consideration transferred, which is also measured at fair value if the consideration is non-cash, over the net of the acquisition date amounts of the identifiable assets acquired and liabilities assumed. Costs that the Company incurs to complete a business combination such as investment banking, legal and other professional fees are not considered part of consideration and the Company charges these costs to selling, general and administrative expense as they are incurred. In addition, the Company recognizes measurement-period adjustments in the period in which the amount is determined, including the effect on earnings of any amounts the Company would have recorded in previous periods if the accounting had been completed at the acquisition date. Interests held by third parties in consolidated majority-owned subsidiaries are presented as noncontrolling interests, which represents the noncontrolling stockholders’ interests in the underlying net assets of the Company’s consolidated majority-owned subsidiaries. Noncontrolling interests that are not redeemable are reported in the equity section of the consolidated balance sheets. Noncontrolling interests, where the Company may be required to repurchase under put options or other contractual redemption requirements that are not solely within the Company’s control, are reported in the consolidated balance sheets between liabilities and equity, as redeemable noncontrolling interests. On July 1, 2016, the Company acquired a controlling interest in BCE . In accordance with ASC Topic 805, Business Combinations , and ASC Topic 810, Consolidation , the financial position of BCE has been consolidated with the Company’s consolidated balance sheet as of June 30, 2017 . The results of operations for BCE have been included in the Company’s consolidated results of operations from the date of acquisition in the MSG Entertainment segment. The relevant amounts attributable to investors other than the Company are reflected under “Nonredeemable noncontrolling interests,” “Net income (loss) attributable to nonredeemable noncontrolling interests” and “Comprehensive income (loss) attributable to nonredeemable noncontrolling interests” on the accompanying consolidated balance sheet, consolidated statement of operations and consolidated statement of comprehensive income, respectively. See Note 3 for more information regarding the Company’s acquisition of BCE . On January 31, 2017, the Company acquired a controlling interest in TAO Group . In accordance with ASC Topic 805, Business Combinations , and ASC Topic 810, Consolidation , the financial position of TAO Group has been consolidated with the Company’s consolidated balance sheet as of June 30, 2017 . TAO Group financial statements are not available within the time constraints the Company requires to ensure the financial accuracy of the operating results. Therefore, the Company records TAO Group ’s operating results in its consolidated statements of operations on a three-month lag basis. Any specific events having significant financial impact that occur during the lag period are included in the Company’s current period results. TAO Group reports on a fiscal year reflecting the retail-based calendar (containing 4-4-5 week calendar quarters) and its fiscal year periodically results in a 53-week year instead of a normal 52-week year. Accordingly, the Company’s results of operations for the year ended June 30, 2017 include TAO Group ’s operating results from February 1, 2017 to March 26, 2017 as part of the MSG Entertainment segment and the Company’s consolidated balance sheet as of June 30, 2017 reflects the financial position of TAO Group as of March 26, 2017 . All disclosures related to TAO Group are therefore also reported as of March 26, 2017. The TAO Group purchase agreement contains a put option to require the Company to purchase the other owners’ equity interests under certain circumstances. The noncontrolling interest combined with the put option is classified as redeemable noncontrolling interest in the consolidated balance sheet, separate from equity. The relevant amounts attributable to investors other than the Company are reflected under “Redeemable noncontrolling interests,” “Net income (loss) attributable to redeemable noncontrolling interests” and “Comprehensive income (loss) attributable to redeemable noncontrolling interests” on the accompanying consolidated balance sheet, consolidated statement of operations and consolidated statement of comprehensive income, respectively. See Note 3 for more information regarding the Company’s acquisition of TAO Group . The put option can be settled, at the Company’s option, in cash, debt or shares of the Company’s Class A Common Stock. The ultimate amount paid upon the exercise of the put option will likely be different from the estimated fair value, given the calculation required pursuant to the TAO Group operating agreement. |
Use of Estimates | Use of Estimates The preparation of the accompanying financial statements in conformity with GAAP requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Such estimates include the valuation of accounts receivable, investments, goodwill, intangible assets, other long-lived assets, tax accruals and other liabilities. In addition, estimates are used in revenue recognition, revenue sharing expense (net of escrow), luxury tax expense, income tax expense, performance and share-based compensation, depreciation and amortization, litigation matters and other matters, as well as in the valuation of contingent consideration and noncontrolling interests resulting from business combination transactions. Management believes its use of estimates in the financial statements to be reasonable. Management evaluates its estimates on an ongoing basis using historical experience and other factors, including the general economic environment and actions it may take in the future. The Company adjusts such estimates when facts and circumstances dictate. However, these estimates may involve significant uncertainties and judgments and cannot be determined with precision. In addition, these estimates are based on management’s best judgment at a point in time and as such these estimates may ultimately differ from actual results. Changes in estimates resulting from weakness in the economic environment or other factors beyond the Company’s control could be material and would be reflected in the Company’s financial statements in future periods. |
Revenue Recognition, General | Revenue Recognition The Company recognizes revenue when the following conditions are satisfied: (a) persuasive evidence of a sales arrangement exists, (b) delivery occurs or services are rendered, (c) the sales price is fixed or determinable and (d) collectability is reasonably assured. Revenue recognition from the Company’s various revenue sources is discussed further in each respective segment’s revenue recognition policies below. MSG Entertainment The Company’s MSG Entertainment segment earns revenues from the sale of tickets for events that the Company produces or promotes/co-promotes. In addition, for entertainment events held at the Company’s venues that MSG Entertainment does not produce or promote/co-promote, revenues are earned from venue license fees charged to the third-party promoters of the event. Event-related revenues from the sale of tickets, venue license fees from third-party promoters, sponsorships, concessions and merchandise are recognized when the event occurs. Amounts collected in advance of an event are recorded as deferred revenue and are recognized as revenues when earned. Deferred revenue reported in the accompanying consolidated balance sheets as of June 30, 2017 and 2016 includes amounts due to the third-party promoters of $72,400 and $45,877 , respectively. Revenues from the sale of advertising in the form of venue signage and sponsorships, which are not related to any specific event, are recorded and recognized ratably over the period of benefit of the respective agreements. Revenues from the rental of The Garden’s suites are recognized ratably over the period of benefit of the respective agreements for the benefit of both of the Company’s segments. Revenues from dining, nightlife and hospitality offerings through TAO Group are recognized at the point food, beverages and/or services are provided to the customer. In addition, management fee revenues which are derived by the performance of the underlying venues as defined within the specific venue management agreements are recorded as earned. MSG Sports The Knicks, Rangers and Liberty derive revenues principally from ticket sales and distributions of league-wide national and international television contracts and other league-wide revenue sources, which are recognized over the respective team’s season. Event-related revenues from other live sporting events, including the sale of tickets, venue license fees earned in connection with other live sporting events that the Company does not produce or promote, sponsorships, concessions and merchandise are recognized when the event occurs. Amounts collected in advance of an event are recorded as deferred revenue and are recognized as revenues when earned. Local media rights revenue recognized by MSG Sports for the licensing of team-related programming to MSG Networks is generally recognized on a straight-line basis over the fiscal year. Revenues from the sale of advertising in the form of venue signage and sponsorships, which are not related to any specific event, are recognized ratably over the period of benefit of the respective agreements. Revenues from the rental of The Garden’s suites are recognized ratably over the period of benefit of the respective agreements for the benefit of both of the Company’s segments. |
Revenue Recognition, Multiple-Deliverable Transactions | Multiple-Deliverable Transactions The Company enters into multiple-deliverable arrangements, primarily multi-year sponsorship agreements. The deliverables included in each sponsorship agreement vary and may include suite licenses, event tickets and various advertising benefits, which include items such as, but not limited to, signage at The Garden and the Company’s other venues. The timing of revenue recognition for each deliverable is dependent upon meeting the revenue recognition criteria for the respective deliverable. The Company allocates revenue to each deliverable within the arrangement based on its relative selling price. For many deliverables in an arrangement, such as event tickets and certain advertising benefits, the Company has vendor specific objective evidence (“VSOE”) of selling price as it typically sells the same or similar deliverables regularly on a stand-alone basis. Absent VSOE, the Company considers whether third party evidence (“TPE”) is available; however, in most instances TPE is not available. The Company’s process for determining its estimated selling prices for deliverables without VSOE or TPE involves management’s judgment and considers multiple factors including company specific and market specific factors that may vary depending upon the unique facts and circumstances related to each deliverable. Key factors considered by the Company in developing a best estimate of selling price for deliverables include, but are not limited to, prices charged for similar deliverables, the Company’s ongoing pricing strategy and policies, and consideration of pricing of similar deliverables sold in other multiple-deliverable agreements. |
Revenue Recognition, Gross versus Net Revenue Recognition | Gross versus Net Revenue Recognition The Company reports revenue on a gross or net basis based on management’s assessment of whether the Company acts as a principal or agent in the transaction. To the extent the Company acts as the principal, revenue is reported on a gross basis. The determination of whether the Company acts as a principal or an agent in a transaction is based on an evaluation of several qualitative factors, including for co-promotions where the Company has a 50% or lower economic interest. Generally, when the Company is the promoter or co-promoter of an event the Company reports revenue on a gross basis. When the Company acts as an agent, revenue is reported on a net basis. The Company accounts for taxes collected from customers and remitted to governmental authorities on a net basis and excludes these amounts from revenues. In connection with the Distribution, the Company entered into an advertising sales representation agreement with MSG Networks. Pursuant to the agreement, the Company has the exclusive right and obligation to sell advertising availabilities of MSG Networks . The Company is entitled to and earns commission revenue as MSG Networks records advertising revenue, which is typically recognized when the advertisements are aired. The Company recognizes the advertising commission revenue on a net basis in accordance with ASC 605-45. |
Nonmonetary Transactions | Nonmonetary Transactions The Company enters into nonmonetary transactions that involve the exchange of goods or services, such as advertising and promotional benefits as well as tickets, for other goods or services. Such transactions are measured and recorded at the fair value of the goods or services surrendered unless the goods or services received have a more readily determinable fair value. In addition, the Company enters into other monetary transactions in which nonmonetary consideration is also included and the entire transaction is recorded at fair value. If the fair values cannot be determined for either the asset(s) surrendered or received within reasonable limits, then the nonmonetary transaction is measured and recorded at the book value of the item(s) surrendered, which typically is zero. |
Direct Operating Expenses | Direct Operating Expenses Direct operating expenses include, but are not limited to, compensation expense for the Company’s professional sports teams’ players and certain other team personnel, as well as NBA luxury tax, NBA and NHL revenue sharing and league assessments for the MSG Sports segment; event costs related to the presentation and production of the Company’s live entertainment and sporting events; and venue lease, maintenance and other operating expenses. Player Costs and Other Team Personnel Transactions, NBA Luxury Tax, Escrow System/Revenue Sharing and League Assessments for the MSG Sports Segment Player Costs and Other Team Personnel Transactions Costs incurred to acquire player contracts, including signing bonuses, are deferred and amortized over the applicable NBA or NHL regular season on a straight-line basis over the fixed contract period of the respective player. The NBA and NHL seasons are typically from November through April and October through April, respectively. Player salaries are also expensed over the applicable NBA, NHL or WNBA regular season typically on a straight-line basis. In certain player contracts the annual contractual salary amounts (including any applicable signing bonuses) may fluctuate such that expensing the salary for the entire contract on a straight-line basis over each regular season more appropriately reflects the economic benefit of the services provided. In instances where a player sustains what is deemed to be a season-ending or career-ending injury, a provision is recorded, when that determination can be reasonably made, for the remainder of the player’s seasonal or contractual salary and related costs, together with any associated NBA luxury tax, net of any anticipated insurance recoveries. When players are traded, waived or contracts are terminated, any remaining unamortized signing bonuses and prepaid salaries are expensed to current operations. Amounts due to these individuals are generally paid over their remaining contract terms. Team personnel contract termination costs are recognized in the period in which those events occur. See Note 4 for further discussion of significant team personnel transactions. The NBA and NHL each have collective bargaining agreements (each a “CBA”) with the respective league’s players association, to which the Company is subject. The NBA CBA expires after the 2023-24 season (although the NBA and the National Basketball Players Association (“NBPA”) each have the right to terminate the CBA following the 2022-23 season). The NHL CBA expires on September 15, 2022 (although the NHL and National Hockey League Players’ Association each have the right to terminate the CBA following the 2019-20 season). The NBA CBA contains a “soft” salary cap (i.e., a cap on each team’s aggregate player salaries but with certain exceptions that enable teams to pay more, sometimes substantially more, than the cap). The NHL CBA provides for a “hard” salary cap (i.e., teams may not exceed a stated maximum that has been negotiated for the 2013-14 season and is adjusted each season thereafter based upon league-wide revenues). NBA Luxury Tax Amounts in this paragraph are in thousands, except for luxury tax rates. The NBA CBA provides for a luxury tax that is applicable to all teams with aggregate player salaries exceeding a threshold that is set prior to each season based upon projected league-wide revenues (as defined under the CBA). The luxury tax rates for teams with aggregate player salaries above such threshold start at $1.50 for each $1.00 of team salary above the threshold up to $5,000 and scale up to $3.25 for each $1.00 of team salary that is from $15,000 to $20,000 over the threshold, and an additional tax rate increment of $0.50 applies for each additional $5,000 (or part thereof) of team salary in excess of $20,000 over the threshold. In addition, for teams that are taxpayers in at least three of four previous seasons, the above tax rates are increased by $1.00 for each increment. Fifty percent of the aggregate luxury tax payments is a funding source for the revenue sharing plan and the remaining 50% of such payments is distributed in equal shares to non-taxpaying teams. The Company recognizes the estimated amount associated with luxury tax expense or the amount it expects to receive as a non-tax paying team, if applicable, on a straight-line basis over the NBA regular season as a component of direct operating expenses. NBA and NHL Escrow System/Revenue Sharing The NBA CBA also provides that players collectively receive a designated percentage of league-wide revenues (net of certain direct expenses) as compensation (approximately 51%), and the teams retain the remainder. The percentage of league-wide revenues paid as compensation and retained by the teams does not apply evenly across all teams and accordingly the Company may pay its players a higher or lower percentage of the Knicks’ revenues than other NBA teams. Throughout each season, NBA teams withhold 10% of each player’s salary and contribute the withheld amounts to an escrow account. If the league’s aggregate player compensation exceeds the designated percentage of league-wide revenues, some or all of such escrowed amounts are distributed equally to all NBA teams. In the event that the league’s aggregate player compensation is below the designated percentage of league-wide revenues, the teams will remit the shortfall to the NBPA for distribution to the players. The NBA also has a revenue sharing plan that generally requires the distribution of a pool of funds to teams with below-average net revenues (as defined in the plan), subject to reduction or elimination based on individual team market size and profitability. The plan is funded by a combination of disproportionate contributions from teams with above-average net revenues, subject to certain profit-based limits (each as defined in the plan); 50% of aggregate league-wide luxury tax proceeds; and collective league sources, if necessary. Additional amounts may also be distributed on a discretionary basis, funded by assessments on playoff ticket revenues and through collective league sources. The NHL CBA provides that each season the players receive as player compensation 50% of that season’s league-wide revenues, excluding the impact of agreed-upon aggregate transition payments of $300,000 paid on a deferred basis over three years beginning in 2014. Because the aggregate amount to be paid to the players is based upon league-wide revenues and not on a team-by-team basis, the Company may pay its players a higher or lower percentage of the Rangers’ revenues than other NHL teams pay of their own revenues. In order to implement the salary cap system, NHL teams withhold a portion of each player’s salary and contribute the withheld amounts to an escrow account. If the league’s aggregate player compensation for a season exceeds the designated percentage (50%) of that season’s league-wide revenues, the excess is retained by the league. Any excess funds will be distributed by the NHL to all teams in equal shares. The NHL CBA provides for a revenue sharing plan which generally requires the distribution of a pool of funds approximating 6.055% of league-wide revenues to certain qualifying lower-revenue teams. Under the NHL CBA, the pool is funded as follows: (a) 50% from contributions by the top ten revenue earning teams (based on pre-season and regular season revenues) in accordance with a formula; (b) then from payments by teams participating in the playoffs, with each team contributing 35% of its gate receipts for each home playoff game; and (c) the remainder from centrally-generated NHL sources. The Rangers are consistently among the top ten revenue teams and, accordingly, have consistently contributed to the top ten revenue teams component of the plan. The Company recognizes the amount of its estimated revenue sharing expense associated with the pre-season and regular season, net of the amount the Company expects to receive from the escrow, on a straight-line basis over the applicable NBA and NHL seasons as a component of direct operating expenses. In years when the Knicks or Rangers participate in the playoffs, the Company recognizes its estimate of the playoff revenue sharing contribution in the periods when the playoffs occur. League Assessments As members of the NBA and NHL, the Knicks and Rangers, respectively, are also subject to annual league assessments. The governing bodies of each league determine the amount of each season’s league assessments that are required from each member team. The Company recognizes its teams’ estimated league assessments on a straight-line basis over the applicable NBA or NHL season. Production Costs for the MSG Entertainment Segment The Company defers certain costs of productions such as creative design, scenery, wardrobes, rehearsal and other related costs for the Company’s proprietary shows. Deferred production costs are amortized on a straight-line basis over the course of a production’s performance period using the expected life of a show’s assets, which generally ranges from 5 to 10 years. Deferred production costs are subject to recoverability assessments whenever there is an indication of potential impairment. During the third quarter of fiscal year 2016, the Company recorded a $41,816 write-off of deferred production costs associated with the New York Spectacular due to the creative decision to not include, in the summer of 2016 performances, certain scenes from the previous show . Due to recent assessments of the show’s creative direction, timing and scale, the Company wrote off the remaining balance of deferred production costs associated with this production in the amount of $33,629 during the fourth quarter of fiscal year 2017. The Company has $6,702 and $43,083 of net deferred production costs recorded within other current assets and other assets in the accompanying consolidated balance sheets as of June 30, 2017 and 2016 , respectively. |
Advertising Expenses | Advertising Expenses Advertising costs are typically charged to expense when incurred, however, advertising for productions and other live entertainment events are generally deferred within interim periods and expensed over the run of the show, but by no later than the end of the fiscal year. Total advertising costs classified in direct operating and selling, general and administrative expenses were $18,963 , $20,834 and $27,220 for the years ended June 30, 2017 , 2016 and 2015 , respectively. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with ASC 740, Income Taxes (“ASC 740”). For the periods before the Distribution, income taxes as presented herein attribute current and deferred income taxes of MSG Networks to the Company’s stand-alone financial statements in a manner that is systematic, rational, and consistent with the asset and liability method prescribed by ASC 740. Accordingly, the Company’s income tax provision was prepared following the separate return method. The separate return method applies ASC 740 to the stand-alone financial statements of each member of the combined group as if the group member were a separate taxpayer and the benefits of a consolidated return have been reflected where such returns have or could be filed based on the entities’ jurisdictions included in the combined financial statements. As a result, actual tax transactions included in the consolidated financial statements of MSG Networks may not be included in the combined financial statements. Similarly, the tax treatment of certain items reflected in the combined financial statements may not be reflected in the consolidated financial statements and tax returns of MSG Networks. Therefore, portions of items such as net operating losses, credit carryforwards, other deferred taxes, uncertain tax positions and valuation allowances may exist in the combined financial statements that may or may not exist in MSG Networks’ consolidated financial statements. Because the Company’s operations prior to the Distribution were included in MSG Networks’ tax returns, payments to certain tax authorities were made by MSG Networks, and not by the Company. The Company only maintains taxes payable to/from the taxing authorities for legal entities that are fully-dedicated to the Company’s business. The Company did not maintain taxes payable to/from MSG Networks and the payments were deemed to settle the annual current tax payable balances immediately with the legal entities paying the tax in the respective jurisdictions through changes in MSG Networks’ investment. For the periods after the Distribution, the Company’s provision for income taxes is based on current period income, changes in deferred tax assets and liabilities and changes in estimates with regard to uncertain tax positions. Deferred tax assets are subject to an ongoing assessment of realizability. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax asset will not be realized. The Company’s ability to realize its deferred tax assets depends upon the generation of sufficient future taxable income to allow for the realization of its deductible temporary differences. If such estimates and related assumptions change in the future, the Company may be required to record valuation allowances against its deferred tax assets, resulting in additional income tax expense in the Company’s consolidated statements of operations. Interest and penalties, if any, associated with uncertain tax positions are included in income tax expense. The Company accounts for investment tax credits using the “flow-through” method, under which the tax benefit generated from an investment tax credit is recorded in the period the credit is generated. |
Share-based Compensation | Share-based Compensation Prior to Distribution, the Company’s employees participated in MSG Networks’ share-based compensation plans. Share-based compensation expense has been attributed to the Company based on the awards and terms previously granted to MSG Networks’ employees. For purposes of the combined financial statements, an allocation of share-based compensation expense related to corporate employees was recorded in addition to the expense attributed to the Company’s direct employees. The allocated expense includes both directors and corporate executives of MSG Networks, allocated using a proportional allocation method which management has deemed to be reasonable. Following the Distribution, the Company measures the cost of employee services received in exchange for an award of equity-based instruments based on the grant date fair value of the award. Share-based compensation cost is recognized in earnings (net of estimated forfeitures) over the period during which an employee is required to provide service in exchange for the award, except for restricted stock units granted to non-employee directors which, unless otherwise provided under the applicable award agreement, are fully vested, and are expensed at the grant date. The Company estimates forfeitures based upon historical experience and its expectations regarding future vesting of awards. To the extent actual forfeitures are different from the Company’s estimates, share-based compensation is adjusted accordingly. |
Earnings (Loss) Per Common Share | Earnings (Loss) Per Common Share Basic earnings (loss) per common share (“ EPS ”) attributable to the Company’s common stockholders is based upon net income (loss) attributable to the Company’s common stockholders divided by the weighted-average number of common shares outstanding during the period. Following the Distribution, the Company had 24,928 common shares outstanding on September 30, 2015. This amount has been utilized to calculate EPS for the periods prior to the Distribution as no Madison Square Garden common stock or equity-based awards were outstanding prior to September 30, 2015. The dilutive effect of the Company’s share-based compensation awards issued in connection with the Distribution is included in the computation of diluted EPS in the periods subsequent to the Distribution, when applicable. Diluted EPS reflects the effect of the assumed vesting of restricted stock units and exercise of stock options (see Note 12 ) only in the periods in which such effect would have been dilutive. For the periods when a net loss is reported, the computation of diluted EPS equals the basic EPS calculation since common stock equivalents were antidilutive due to losses from continuing operations. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers the balance of its investment in funds that substantially hold highly liquid securities that mature within three months or less from the date the fund purchases these securities to be cash equivalents. The carrying amount of cash and cash equivalents either approximates fair value due to the short-term maturity of these instruments or is at fair value. Checks outstanding in excess of related book balances are included in accounts payable in the accompanying consolidated balance sheets. The Company presents the change in these book cash overdrafts as cash flows from operating activities. |
Restricted Cash | Restricted Cash The Company’s restricted cash includes cash deposited in escrow accounts. For example, the Company has deposited cash in an interest-bearing escrow account as credit support and collateral to its workers compensation and general liability insurance obligations. Separately, cash is required to be withheld from player salaries and deposited in an escrow account which is in the name of the Company pursuant to the NHL CBA. That escrow account will be distributed subsequent to the end of the season to the players and NHL teams based on the provisions of the NHL CBA. The carrying amount of restricted cash approximates fair value due to the short-term maturity of these instruments. Changes in restricted cash are reflected in cash flows from either operating or investing activities, depending on the circumstances to which the changes in the underlying restricted cash relate. |
Accounts Receivable | Accounts Receivable Accounts receivable is recorded at net realizable value. The Company maintains an allowance for doubtful accounts to reserve for potentially uncollectible receivables. The allowance for doubtful accounts is estimated based on the Company’s analysis of receivables aging, specific identification of certain receivables that are at risk of not being paid, past collection experience and other factors. The Company’s allowance for doubtful accounts was $601 and $1,282 as of June 30, 2017 and 2016 , respectively. |
Investments in and Loans to Nonconsolidated Affiliates | Investments in and Loans to Nonconsolidated Affiliates The Company’s investments in nonconsolidated affiliates are primarily accounted for using the equity method of accounting and are carried at cost, plus or minus the Company’s share of net earnings or losses of the investment, subject to certain other adjustments. The cost of equity method investments includes transaction costs of the acquisition. As required by GAAP, to the extent that there is a basis difference between the cost and the underlying equity in the net assets of an equity investment, companies are required to allocate such differences between tangible and intangible assets. The Company’s share of net earnings or losses of the investment, inclusive of amortization expense for intangible assets associated with the investment, is reflected in equity in earnings (loss) of nonconsolidated affiliates on the Company’s consolidated and combined statements of operations. Dividends received from the investee reduce the carrying amount of the investment. Due to the timing of receiving financial information from its nonconsolidated affiliates, the Company records its share of net earnings or losses of such affiliates on a three-month lag basis, with the exception of the amortization expense of intangible assets which are recorded currently. In addition to the equity method investments, the Company also has other investments accounted for under the cost method of accounting. The Company also provides revolving credit facilities to certain of its nonconsolidated affiliates. The outstanding loan balances, including accrued interest, are reflected in investments in and loans to nonconsolidated affiliates in the accompanying consolidated balance sheets. Interest income on the outstanding loan balances and related facility fees are recorded currently and are reflected in interest income in the accompanying consolidated and combined statements of operations. Impairment of Investments The Company reviews its investments at least quarterly to determine whether a decline in fair value below the cost basis is other-than-temporary. The primary factors the Company considers in its determination are the length of time that the fair value of the investment is below the Company’s carrying value; future prospects of the investee; and the Company’s intent and ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. In addition, the Company considers other factors such as general market conditions, industry conditions, and analysts’ ratings. If the decline in fair value is deemed to be other-than-temporary, the cost basis of the investment is written down to fair value and the loss is realized as a component of net income. See Note 5 for further discussion of impairments of investments. |
Long Lived and Indefinite Lived Assets | Long-Lived and Indefinite-Lived Assets The Company’s long-lived and indefinite-lived assets consist of property and equipment, goodwill, indefinite-lived intangible assets and amortizable intangible assets. Property and equipment is stated at cost. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets or, with respect to leasehold improvements, amortized over the shorter of the lease term or the asset’s estimated useful life. The useful lives of the Company’s long-lived assets are based on estimates of the period over which the Company expects the assets to be of economic benefit to the Company. In estimating the useful lives the Company considers factors such as, but not limited to, risk of obsolescence, anticipated use, plans of the Company, and applicable laws and permit requirements. In July 2013, the permit for The Garden was renewed for ten years and these financial statements have been prepared assuming further renewal of that permit. Identifiable intangible assets with finite useful lives are amortized on a straight-line basis over their respective estimated useful lives. Goodwill and identifiable intangible assets that have indefinite useful lives are not amortized. Impairment of Long-Lived and Indefinite-Lived Assets In assessing the recoverability of the Company’s long-lived and indefinite-lived assets, the Company must make estimates and assumptions regarding future cash flows and other factors to determine the fair value of the respective assets. These estimates and assumptions could have a significant impact on whether an impairment charge is recognized and also the magnitude of any such charge. Fair value estimates are made at a specific point in time, based on relevant information. These estimates are subjective in nature and involve significant uncertainties and judgments and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. If these estimates or material related assumptions change in the future, the Company may be required to record impairment charges related to its long-lived and/or indefinite-lived assets. Goodwill is tested annually for impairment as of August 31 st and at any time upon the occurrence of certain events or changes in circumstances. The Company has the option to perform a qualitative assessment to determine if an impairment is more likely than not to have occurred. If the Company can support the conclusion that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company would not need to perform the two-step impairment test for that reporting unit. If the Company cannot support such a conclusion or the Company does not elect to perform the qualitative assessment then the first step of the goodwill impairment test is used to identify potential impairment by comparing the fair value of a reporting unit with its carrying amount, including goodwill. The Company generally determines the fair value of a reporting unit using an income approach, such as the discounted cash flow method, in instances when it does not perform the qualitative assessment of goodwill. If the carrying amount of a reporting unit exceeds its fair value, the second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. The second step of the goodwill impairment test compares the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill. If the carrying amount of the reporting unit’s goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. The implied fair value of goodwill is determined in the same manner as the amount of goodwill that would be recognized in a business combination. The Company performs its goodwill impairment test at the reporting unit level, which is one level below the operating segment level. The Company has two operating and reportable segments, MSG Sports and MSG Entertainment, consistent with the way management makes decisions and allocates resources to the business. At the time the annual impairment test of goodwill was performed, the Company’s two reporting units for evaluating goodwill impairment were the same as its operating and reportable segments, and no impairment was identified for either of the reporting units. As of June 30, 2017 , the Company had three reporting units across its two operating segments as a result of the TAO Group acquisition. TAO Group , which was acquired after the annual goodwill impairment test for fiscal year 2017, represents a separate reporting unit within the MSG Entertainment segment for goodwill impairment testing. The Company’s three reporting units are MSG Sports, MSG Entertainment and TAO Group. Identifiable indefinite-lived intangible assets are tested annually for impairment as of August 31 st and at any time upon the occurrence of certain events or substantive changes in circumstances. The Company has the option to perform a qualitative assessment to determine if an impairment is more likely than not to have occurred. In the qualitative assessment, the Company must evaluate the totality of qualitative factors, including any recent fair value measurements, that impact whether an indefinite-lived intangible asset other than goodwill has a carrying amount that more likely than not exceeds its fair value. The Company must proceed to conducting a quantitative analysis if the Company 1) determines that such an impairment is more likely than not to exist, or 2) foregoes the qualitative assessment entirely. Under the quantitative assessment, the impairment test for identifiable indefinite-lived intangible assets consists of a comparison of the estimated fair value of the intangible asset with its carrying value. If the carrying value of the intangible asset exceeds its fair value, then an impairment loss is recognized in an amount equal to that excess. The Company generally determines the fair value of an indefinite-lived intangible asset using an income approach, such as the relief from royalty method, in instances when it does not perform the qualitative assessment of the intangible asset. For other long-lived assets, including intangible assets that are amortized, the Company evaluates assets for recoverability when there is an indication of potential impairment. If the undiscounted cash flows from a group of assets being evaluated is less than the carrying value of that group of assets, the fair value of the asset group is determined and the carrying value of the asset group is written down to fair value. The Company generally determines the fair value of a finite-lived intangible asset using an income approach, such as the discounted cash flow method. |
Contingencies | Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. Contingent Consideration Some of the Company’s acquisition agreements include contingent earn-out arrangements, which are generally based on the achievement of future operating targets. The fair values of these earn-out arrangements are included as part of the purchase price of the acquired companies on their respective acquisition dates. For each transaction, the Company estimates the fair value of contingent earn-out payments as part of the initial purchase price and records the estimated fair value of contingent consideration that the Company expects to pay to the former owners as a liability in “Other accrued liabilities” and “Other liabilities” on the consolidated balance sheets. The Company measures its contingent earn-out liabilities at fair value on a recurring basis using significant unobservable inputs classified within Level III of the fair value hierarchy, which can result in a significantly higher or lower liability with a higher liability capped by the contractual maximum of the contingent earn-out obligation. Ultimately, the liability will be equivalent to the amount paid, and the difference between the fair value estimate and amount paid will be recorded in earnings as operating expense. See Note 9 for more information regarding the fair value of the Company’s contingent consideration liabilities related to the acquisition of TAO Group . |
Defined Benefit Pension Plans and Other Postretirement Benefit Plan | Defined Benefit Pension Plans and Other Postretirement Benefit Plan As more fully described in Note 11 , certain of our employees participated in defined benefit pension plans (“Shared Plans”) sponsored by MSG Networks prior to the Distribution, which included participants of other MSG Networks subsidiaries. The Company accounted for the Shared Plans under the guidance of ASC 715, Compensation - Retirement Benefits . Accordingly, the Company recorded an asset or liability to recognize the funded status of the Shared Plans, as well as a liability only for any required contributions to the Shared Plans that were accrued and unpaid at the balance sheet date. The related pension expenses attributed to the Company were based primarily on pensionable compensation of active participants. For the Shared Plans’ liabilities, the consolidated and combined financial statements reflect the full impact of such plans. The pension expense related to employees of other MSG Networks businesses participating in any of the Shared Plans is reflected as a contributory credit from MSG Networks to the Company, resulting in a decrease to the expense recognized in the consolidated and combined statements of operations. In addition to the Shared Plans, the Company sponsors a plan that certain of our employees participate in, accounted for as a defined benefit pension plan, both prior to and after the Distribution. Accordingly, the funded and unfunded position of the Direct Plan is recorded in the Company’s consolidated balance sheet. Actuarial gains and losses that have not yet been recognized through income are recorded in accumulated other comprehensive income, until they are amortized as a component of net periodic benefit cost. After the Distribution, the Company maintains its own, both funded and unfunded, defined benefit plans, as well as a contributory other postretirement benefit plan, covering certain full-time employees and retirees. The majority of the defined benefit pension benefits are based on formulas that reflect the employees’ years of service and compensation during their employment period and participation in the plans. The expense recognized by the Company is determined using certain assumptions, including the expected long-term rate of return, discount rate and rate of compensation increases, among others. The Company recognizes the funded status of its defined benefit pension and other postretirement plans (other than multiemployer plans) as an asset or liability in the consolidated balance sheets and recognizes changes in the funded status in the year in which the changes occur through other comprehensive income (loss). |
Fair Value Measurement | Fair Value Measurements The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity’s pricing based upon their own market assumptions. The fair value hierarchy consists of the following three levels: • Level I — Quoted prices for identical instruments in active markets. • Level II — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. • Level III — Instruments whose significant value drivers are unobservable. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2015, the FASB issued Accounting Standards Update (“ ASU ”) No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis , which changes the analysis to be performed in determining whether certain types of legal entities should be consolidated. Specifically, ASU No. 2015-02 (i) modifies the assessment of whether limited partnerships are variable interest entities (each a “VIE”) or voting interest entities, (ii) eliminates the presumption that a limited partnership should be consolidated by its general partner, (iii) removes certain conditions for the evaluation of whether a fee paid to a decision maker constitutes a variable interest, and (iv) modifies the evaluation concerning the impact of related parties in the determination of the primary beneficiary of a VIE. This standard was adopted by the Company in the first quarter of fiscal year 2017. The adoption of the standard did not have an impact on the Company’s consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-05, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement , which provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract and expense the cost as the services are received. This standard was adopted by the Company in the first quarter of fiscal year 2017 on a prospective basis for all arrangements entered into or materially modified after July 1, 2016. The adoption of the standard did not have an impact on the Company’s consolidated financial statements. |
Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Issued Accounting Pronouncements Not Yet Adopted In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , which supersedes the revenue recognition requirements in FASB ASC Topic 605, Revenue Recognition . ASC Topic 606, among other things, (i) is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange f or those goods or services, and (ii) requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In August 2015, the FASB issued ASU No. 2015-14 , Revenue from Contracts with Customers (Topic 606) : Deferral of the Effective Date , which defers the effective date of ASU No. 2014-09 for all entities by one year. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606), Principal versus Agent Considerations (Reporting Revenue versus Net) , which clarifies the implementation guidance on principal versus agent considerations in the new revenue recognition standard under ASU No. 2014-09. ASU No. 2016-08 clarifies how an entity should identify the unit of accounting (i.e. the specified good or service) for the principal versus agent evaluation and how it should apply the control principle to certain types of arrangements. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing , which clarifies the principle in ASU No 2014-09 for determining whether a good or service is separately identifiable from other promises in the contract and, therefore, should be accounted for separately. ASU No. 2016-10 also clarifies that entities are not required to identify promised goods or services that are immaterial in the context of the contract and allows entities to elect to account for shipping and handling activities as a fulfillment cost rather than as an additional promised service. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606) - Narrow-Scope Improvements and Practical Expedients , which clarifies the following aspects in ASU No. 2014-09: collectability, presentation of sales taxes and other similar taxes collected from customers, noncash considerations, contract modifications at transition, completed contracts at transition, and technical correction. In December, the FASB issued ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers , which allows entities not to make quantitative disclosures about remaining performance obligations in certain cases and requires entities that use any of the new or previously existing optional exemptions to expand their qualitative disclosures. Early adoption of ASC Topic 606 and the related updates discussed above is permitted and the Company can early adopt ASC Topic 606 and the related updates beginning in the first quarter of fiscal year 2018. If the Company does not apply the early adoption provision, ASC Topic 606 and the related updates will be effective for the Company beginning in the first quarter of fiscal year 2019 using one of two retrospective application methods. The Company’s evaluation of the impact this standard will have on its consolidated financial statements is ongoing. Based on efforts to date, the Company believes that the adoption of the standard could impact the identification of, and allocation across, performance obligations as well as the timing of revenue recognition for certain of its revenue streams that were previously recorded on a straight-line basis over the related contractual terms. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. This standard, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income and (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. Early adoption is not permitted with the exception of certain provisions related to the presentation of other comprehensive income. This standard will be effective for the Company beginning in the first quarter of fiscal year 2019. The Company is currently evaluating the impact this standard will have on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which supersedes existing guidance on accounting for leases in FASB ASC Topic 840, Leases . ASU No. 2016-02, among other things, (i) requires lessees to account for leases as either finance leases or operating leases and generally requires all leases to be recorded on the balance sheet, including those leases classified as operating leases under previous accounting guidance, through the recognition of right-of-use assets and corresponding lease liabilities, and (ii) requires extensive qualitative and quantitative disclosures about leasing activities. The accounting applied by a lessor is largely unchanged from that applied under previous accounting guidance. This standard will be effective for the Company beginning in the first quarter of fiscal year 2020 and is required to be applied using the modified retrospective approach for all leases existing as of the effective date. Early adoption is permitted. The Company’s evaluation of the impact this standard will have on its consolidated financial statements is ongoing. Based on efforts to date, the adoption of the standard will result in the recognition of right of use assets and lease liabilities related to the Company’s operating leases. In March 2016, the FASB issued ASU No. 2016-07, Investments - Equity Method and Joint Ventures (Topic 323), Simplifying the Transition to the Equity Method of Accounting . ASU No. 2016-07 eliminates the requirement for an investor to retrospectively apply the equity method when an investment that it had accounted for by another method qualifies for use of the equity method. This standard will be effective for the Company beginning in the first quarter of fiscal year 2018 and is required to be applied prospectively. Early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-based Payment Accounting . ASU No. 2016-09, among other things, (i) requires the income tax effects of all awards to be recognized in the statement of operations when the awards vest or are settled, (ii) allows an employer to repurchase more of an employee’s shares for tax withholding purposes than currently allowable, without triggering liability accounting, and provides companies with the option to make a policy election to account for forfeitures as they occur, and (iii) requires companies to present excess tax benefits as operating activity rather than as financing activity on the statement of cash flows. This standard will be effective for the Company beginning in the first quarter of fiscal year 2018. Early adoption is permitted. The Company is currently evaluating the impact this standard will have on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments- Credit Losses . ASU 2016-13 replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that will require the reflection of expected credit losses and will also require consideration of a broader range of reasonable and supportable information to determine credit loss estimates. For most financial instruments, the standard will require the use of a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses, which will generally result in the earlier recognition of credit losses on financial instruments. This standard will be effective for the Company beginning in the first quarter of fiscal year 2021, with early adoption permitted. The Company is currently evaluating the impact this standard will have on its consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230). ASU No. 2016-15 addresses eight specific cash flow issues and is intended to reduce diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This standard will be effective for the Company beginning in the first quarter of fiscal year 2019. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory . ASU No. 2016-16 requires entities to recognize income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. This standard will be effective for the Company beginning in the first quarter of fiscal year 2019. Early adoption is permitted as of the beginning of an annual reporting period for which financial statements have not been issued or made available for issuance. The Company is currently evaluating the impact this standard will have on its consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows: Restricted Cash . The primary purpose of ASU No. 2016-18 is to reduce the diversity in practice that exists in the classification and presentation of changes in restricted cash on the statement of cash flows. This standard will require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This standard will be effective retrospectively for the Company beginning in the first quarter of fiscal year 2019, and will result in a change to the Company’s presentation of net cash provided by (used in) operating activities in the statement of cash flows for the impact of changes in restricted cash balances. Early adoption is permitted in any interim or annual period. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805) Clarifying the Definition of a Business . The primary purpose of this ASU is to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses, which will affect many areas of accounting including acquisitions, disposals, goodwill, and consolidation. This standard will be effective for the Company beginning in the first quarter of fiscal year 2019 and is required to be applied prospectively. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment. ASU No. 2017-04 removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. This standard will be effective for the Company beginning in the first quarter of fiscal year 2021 and is required to be applied prospectively. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. ASU No. 2017-07 requires employers to disaggregate the service cost component from the other components of net benefit cost and disclose by line item the amount of net benefit cost that is included in the statement of operations or capitalized in assets. The standard requires employers to report the service cost component in the same line item(s) as other compensation costs arising from services rendered by the pertinent employees during the period and to report other components of net benefit cost separately and outside the subtotal of operating income. The standard also allows only the service cost component to be eligible for capitalization. This standard will be effective for the Company beginning in the first quarter of fiscal year 2019. The guidance requires application on a retrospective basis for the presentation of the service cost component and the other components of net benefit cost in the statements of operations and on a prospective basis for the capitalization of the service cost component of net benefit cost in assets. Early adoption is permitted as of the beginning of an annual reporting period for which financial statements have not been issued or made available for issuance. The Company is currently evaluating the impact this standard will have on its consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting. ASU No. 2017-09 provides clarification on when modification accounting should be used for changes to the terms or conditions of a share-based payment award. This standard does not change the accounting for modifications but clarifies that modification accounting guidance should only be applied if there is a change to the value, vesting conditions or award classification and would not be required if the changes are considered non-substantive. This standard will be effective for the Company beginning in the first quarter of fiscal year 2019 and is required to be applied prospectively. Early adoption is permitted. The Company is currently evaluating the impact this standard will have on its consolidated financial statements. |
Investments in Limited Liabilit
Investments in Limited Liability Companies (Policies) | 12 Months Ended |
Jun. 30, 2017 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | |
Equity Method Investment Policy, Supplemental | for an investment in a limited liability company in which the Company has an ownership interest that exceeds 3-5%, the Company also accounts for such investment under the equity method of accounting. |
Operating Leases (Policies)
Operating Leases (Policies) | 12 Months Ended |
Jun. 30, 2017 | |
Operating Leases [Abstract] | |
Operating Leases | The Company has various long-term noncancelable operating lease agreements, primarily for entertainment venues and office space expiring at various dates through 2033 . Certain leases include renewal provisions at the Company’s option and provide for additional rent based on sales. The rent expense associated with such operating leases is recognized on a straight-line basis over the initial lease term. The difference between rent expense and rent paid is recorded as deferred rent. |
Credit Facilities (Deferred Fin
Credit Facilities (Deferred Financing Cost for Outstanding Loan) (Policies) | 12 Months Ended |
Jun. 30, 2017 | |
Credit Facilities [Abstract] | |
Deferred financing cost amortization | With respect to the TAO Term Loan Facility, the deferred financing costs are amortized on a straight-line basis over the five-year term of the facility, which approximates the effective interest method. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Acquisitions [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The preliminary allocation of the purchase price to the assets acquired, liabilities assumed and allocation to intangible assets is presented below: (as initially reported) January 31, 2017 Measurement Period Adjustments (as adjusted) January 31, 2017 Cash and cash equivalents $ 11,344 $ — $ 11,344 Accounts receivable 5,804 — 5,804 Prepaid expenses 1,167 — 1,167 Other current assets 41,009 — 41,009 Property and equipment 53,411 — 53,411 Amortizable intangible assets 239,640 (1,387 ) 238,253 Other assets 1,472 — 1,472 Accounts payable (7,046 ) — (7,046 ) Accrued expenses and other current liabilities (39,814 ) 495 (39,319 ) Long-term loan payable, net of deferred financing costs (105,292 ) — (105,292 ) Other long-term liabilities (16,244 ) 8,119 (8,125 ) Total identifiable net assets acquired 185,451 7,227 192,678 Goodwill (a) 97,420 (7,227 ) 90,193 Redeemable noncontrolling interests (b) (85,000 ) — (85,000 ) Total estimated consideration, including potential future contingent consideration $ 197,871 $ — $ 197,871 _______________________ (a) Goodwill recognized in this acquisition is expected to be deductible for tax purposes. (b) The minority shareholders holding the remaining 37.5% of TAO Group have various forms of put options that may be exercised upon the occurrence of certain conditions. If such an option is exercised prior to January 31, 2022, it would require the Company to purchase the equity of TAO Group at fair market value (subject, in certain cases, to mandatory discounts) as determined by the parties or by a third party appraisal pursuant to the terms of the TAO Group operating agreement. If such an option is exercised after January 31, 2022, it would require TAO Group to purchase the equity at fair market value as determined by the parties or by a third party appraisal pursuant to the terms of the TAO Group operating agreement. The Company may elect to satisfy this TAO Group obligation through a sale of TAO Group . In addition, the Company has a call option to purchase the remaining 37.5% equity of TAO Group at fair market value after the fifth anniversary of the acquisition date, or earlier if certain conditions are met. Both put and call options can be settled at the Company’s discretion in cash, debt or shares of the Company’s Class A Common Stock. The ultimate amount paid upon the exercise of a put or call option will likely be different from the estimated fair value, given the calculations required pursuant to the TAO Group operating agreement. |
Pro Forma Information | The unaudited pro forma information presented below illustrates the estimated impact of the TAO Group acquisition on the Company’s revenue and net income (loss) as if the acquisition, as described above, occurred on July 1, 2015. The information presented below is based on a preliminary estimate of the purchase price allocation to the assets and liabilities acquired. The unaudited pro forma information below includes the historical statements of operations of TAO Group for the years ended March 31, 2017 and 2016, respectively, combined with the Company’s consolidated statements of operations for the years ended June 30, 2017 and 2016, respectively. Due to the nature of various pro forma adjustments, as discussed below, the pro forma results attributable to TAO Group do not equal to what TAO Group ’s results would have been had TAO Group reported on a stand-alone basis. Furthermore, the unaudited pro forma financial information presented below does not reflect any impact that may be achieved by the combined business, such as expected savings from the restructured management compensation at TAO Group , and is presented for comparative purposes only. It is not necessarily indicative of the results of operations that actually would have been achieved had the acquisition been consummated on July 1, 2015 or that may result in the future. Years Ended June 30, 2017 2016 Revenues $ 1,519,725 $ 1,333,765 Net loss attributable to The Madison Square Garden Company’s stockholders (64,443 ) (98,934 ) |
Investments and Loans to Nonc33
Investments and Loans to Nonconsolidated Affiliates (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | |
Investments and Loans Cost and Equity Method Investees | Ownership Percentage Investment Loan Total June 30, 2017 Equity method investments: Azoff MSG Entertainment LLC (“AMSGE”) 50 % $ 104,024 $ 97,592 (b) $ 201,616 Brooklyn Bowl Las Vegas, LLC (“BBLV”) (a) — 2,662 (b) 2,662 Tribeca Enterprises LLC (“Tribeca Enterprises”) 50 % 12,864 14,370 (c) 27,234 Fuse Media LLC (“Fuse Media”) 15 % — — — Cost method investments 10,775 — (d) 10,775 Total investments and loans to nonconsolidated affiliates $ 127,663 $ 114,624 $ 242,287 June 30, 2016 Equity method investments: AMSGE 50 % $ 112,147 $ 97,500 $ 209,647 BBLV (a) — 2,662 (b) 2,662 Tribeca Enterprises 50 % 13,736 10,395 (c) 24,131 Fuse Media 15 % 21,634 — 21,634 Cost method investments 3,794 1,678 5,472 Total investments and loans to nonconsolidated affiliates $ 151,311 $ 112,235 $ 263,546 _________________ (a) The Company is entitled to receive back its capital, which was 74% of BBLV’s total capital as of June 30, 2017 and 2016 , plus a preferred return, after which the Company would own a 20% interest in BBLV. (b) Represents outstanding loan balances, inclusive of amounts due to the Company for interest of $154 and $62 as of June 30, 2017 and 2016 , respectively. (c) Includes outstanding payments-in-kind (“PIK”) interest of $870 and $95 as of June 30, 2017 and 2016 , respectively. PIK interest owed does not reduce availability under the revolving credit facility. (d) During the quarter ended March 31, 2017, one of the Company’s cost method investees converted $1,774 of outstanding principal amount of its convertible promissory note and unpaid accrued interest into preferred shares. |
Summarized Financial Information of Equity Method Investees | The following is summarized financial information for all of the Company’s equity method investments as required by the guidance in SEC Regulation S-X Rule 4-08(g). The amounts shown below represent 100% of these equity method investments’ financial position and results of operations. Balance Sheet June 30, 2017 June 30, 2016 Current assets $ 103,319 $ 76,111 Noncurrent assets 399,485 429,996 $ 502,804 $ 506,107 Current liabilities $ 116,454 $ 89,415 Noncurrent liabilities 399,165 394,923 Noncontrolling interests 59,205 60,832 Shareholders’ equity (72,020 ) (39,063 ) $ 502,804 $ 506,107 Years Ended June 30, Results of Operations 2017 2016 2015 Revenues $ 328,533 $ 280,924 $ 152,580 Loss from continuing operations (16,923 ) (31,206 ) (28,845 ) Net loss (16,923 ) (31,206 ) (28,845 ) Net loss attributable to controlling interest (17,399 ) (32,006 ) (28,742 ) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying Amount of Goodwill by Reportable Segment | The carrying amounts of goodwill, by reportable segment, as of June 30, 2017 and 2016 are as follows: June 30, June 30, MSG Entertainment (a) $ 161,900 $ 58,979 MSG Sports 218,187 218,187 $ 380,087 $ 277,166 ___________________ (a) The increase in the carrying amount of goodwill, as compared to June 30, 2016 , in the MSG Entertainment segment was due to the purchase price allocation for the BCE and TAO Group acquisitions during the first and third quarters of fiscal year 2017, respectively. The goodwill that arose from these acquisitions was valued using unobservable inputs within Level III of the fair value hierarchy, primarily from utilizing the discounted cash flow model, which is an income-based approach that allocates to goodwill any purchase price not specifically assigned to intangibles, fixed assets, working capital or noncontrolling interests. Goodwill recognized in these acquisitions is expected to be deductible for tax purposes. See Note 3 for more information on the allocation of the purchase price and goodwill recognized in connection with these acquisitions. |
Schedule of Indefinite-Lived Intangible Assets | The Company’s indefinite-lived intangible assets as of June 30, 2017 and 2016 are as follows: Sports franchises (MSG Sports segment) $ 101,429 Trademarks (MSG Entertainment segment) 62,421 Photographic related rights (MSG Sports segment) 3,000 $ 166,850 |
Schedule of Intangible Assets Subject to Amortization | The Company’s intangible assets subject to amortization are as follows: June 30, 2017 Estimated Useful Lives Gross Accumulated Amortization Net Trade names (a) 10 to 25 years $ 98,530 $ (1,003 ) $ 97,527 Venue management contracts (b) 12 to 25 years 79,000 (761 ) 78,239 Favorable lease assets (c) 1.5 to 16 years 54,253 (812 ) 53,441 Season ticket holder relationships (d) 15 years 50,032 (40,871 ) 9,161 Festival rights 5 to 15 years 9,080 (739 ) 8,341 Other intangibles 5.75 to 15 years 13,217 (2,951 ) 10,266 $ 304,112 $ (47,137 ) $ 256,975 June 30, 2016 Gross Accumulated Amortization Net Season ticket holder relationships $ 73,124 $ (59,178 ) $ 13,946 Other intangibles 4,217 (2,434 ) 1,783 $ 77,341 $ (61,612 ) $ 15,729 ___________________ (a) The trade names, which are primarily attributable to the TAO Group acquisition, were valued using unobservable inputs within Level III of the fair value hierarchy, utilizing the discounted cash flow models and relief-from-royalty approach with a weighted-average amortization period of approximately 21 years. (b) The venue management contracts, which are attributable to the TAO Group acquisition, were valued using unobservable inputs within Level III of the fair value hierarchy, utilizing the discounted cash flow models with a weighted-average amortization period of approximately 18 years. (c) The favorable lease assets, which are attributable to the TAO Group acquisition, were valued using unobservable inputs within Level III of the fair value hierarchy, based on the difference between the actual lease rates and the current market rent for similar properties in those locations, discounted back to present value at a market rate for applicable leases with a weighted-average amortization period of approximately 13 years. (d) The recorded amount for the gross carrying value of season ticket holder relationships, and the related accumulated amortization, decreased during the year ended June 30, 2017 as certain relationships became fully amortized. |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The Company expects its aggregate annual amortization expense for existing intangible assets subject to amortization for each fiscal year from 2018 through 2022 to be as follows: Fiscal year ending June 30, 2018 $ 20,530 Fiscal year ending June 30, 2019 20,350 Fiscal year ending June 30, 2020 19,319 Fiscal year ending June 30, 2021 16,798 Fiscal year ending June 30, 2022 16,598 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | As of June 30, 2017 and 2016 , property and equipment consisted of the following assets: June 30, June 30, Estimated Useful Lives Land $ 91,678 $ 91,678 Buildings 1,110,366 1,107,027 Up to 45 years Equipment 292,935 272,276 1 to 20 years Aircraft 38,090 38,090 20 years Furniture and fixtures 49,622 50,034 1 to 10 years Leasehold improvements 176,786 131,769 Shorter of term of lease or life of improvement Construction in progress 22,880 10,536 1,782,357 1,701,410 Less accumulated depreciation and amortization (623,086 ) (540,801 ) $ 1,159,271 $ 1,160,609 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitments | As of June 30, 2017 , future minimum rental payments under leases having noncancelable initial lease terms, other cash payments required under contracts entered into by the Company in the normal course of business in excess of one year and outstanding letters of credit are as follows: Off-Balance Sheet Commitments Contractual Obligations reflected on the Balance Sheet (d) Operating Leases (a) Contractual Obligations (b) Letters of Credits (c) Total Total (e) Fiscal year ending June 30, 2018 $ 47,545 $ 153,860 $ 3,360 $ 204,765 $ 65,558 $ 270,323 Fiscal year ending June 30, 2019 45,911 138,610 — 184,521 4,007 188,528 Fiscal year ending June 30, 2020 44,035 69,696 — 113,731 4,006 117,737 Fiscal year ending June 30, 2021 42,239 22,013 — 64,252 4,480 68,732 Fiscal year ending June 30, 2022 42,769 679 — 43,448 3,475 46,923 Thereafter 134,496 6,934 — 141,430 12,977 154,407 $ 356,995 $ 391,792 $ 3,360 $ 752,147 $ 94,503 $ 846,650 _________________ (a) Include contractually obligated minimum lease payments for operating leases having an initial noncancelable term in excess of one year for the Company’s venues, including the newly acquired TAO Group venues, and corporate offices. (b) Consist principally of the MSG Sports segment’s obligations under employment agreements that the Company has with its professional sports teams’ personnel that are generally guaranteed regardless of employee injury or termination. (c) Consist of letters of credit obtained by the Company as collateral, primarily for lease agreements. (d) Consist primarily of amounts earned under employment agreements that the Company has with certain of its professional sports teams’ personnel in the MSG Sports segment. (e) Pension obligations have been excluded from the table above as the timing of the future cash payments is uncertain. See Note 11 for information on the future funding requirements under our pension obligations. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets Measured on a Recurring Basis | The following table presents the Company’s assets that are measured at fair value on a recurring basis, which include cash equivalents, marketable securities and available-for-sale securities: Fair Value Hierarchy June 30, 2017 2016 Assets: Commercial paper I $ 105,476 $ 79,968 Money market accounts I 102,884 159,881 Time deposits I 1,007,302 1,202,681 Marketable securities I — 787 Available-for-sale securities I 32,851 — Total assets measured at fair value $ 1,248,513 $ 1,443,317 |
Schedule of Financial Instruments | The carrying value and fair value of the Company’s financial instruments reported in the accompanying consolidated balance sheets are as follows: June 30, 2017 June 30, 2016 Carrying Value Fair Value Carrying Fair Assets Notes receivable, including interest accruals $ 2,610 $ 2,610 $ 7,090 $ 7,090 Marketable securities — — 787 787 Available-for-sale securities (a) 32,851 32,851 — — Liabilities Long-term debt, including current portion (b) 110,000 110,091 — — _________________ (a) Aggregate cost basis for available-for-sale securities , including transaction costs, was $23,222 as of June 30, 2017 . The unrealized gain recorded in accumulated other comprehensive income was $9,629 as of June 30, 2017 . The income tax expense, included in the accumulated other comprehensive loss, related to unrealized gains from available-for-sale securities , was $4,336 for the year ended June 30, 2017 . The fair value of the available-for-sale securities is determined based on quoted market prices in active market at NYSE, which is classified as a Level I input within the fair value hierarchy. (b) On January 31, 2017, TAOIH, TAOG and certain of its subsidiaries entered into a $110,000 senior secured five-year term loan facility. The Company’s long-term debt is classified within Level II of the fair value hierarchy as it is valued using quoted indices of similar securities for which the inputs are readily observable. |
Credit Facilities (Tables)
Credit Facilities (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Credit Facilities [Abstract] | |
Schedule of Maturities of Long-term Debt | Long-term debt maturities over the next five years for the TAO Term Loan Facility are as follows: Fiscal year ending June 30, 2018 $ — Fiscal year ending June 30, 2019 2,750 Fiscal year ending June 30, 2020 2,750 Fiscal year ending June 30, 2021 11,000 Fiscal year ending June 30, 2022 93,500 Thereafter — |
Schedule of Long-term Debt Instruments | The following table summarizes the presentation of the TAO Term Loan Facility and the related deferred financing costs in the accompanying consolidated balance sheet as of June 30, 2017 . TAO Term Loan Facility Deferred Financing Costs Total Long-term debt, net of deferred financing costs $ 110,000 $ (4,567 ) $ 105,433 |
Schedule of Deferred Financing Costs | The following table summarizes deferred financing costs, net of amortization, related to the Knicks Revolving Credit Facility, Knicks Unsecured Credit Facility, Rangers Revolving Credit Facility, and TAO Revolving Credit Facility as reported on the accompanying consolidated balance sheet: June 30, Other current assets $ 806 Other assets 2,784 |
Pension Plans and Other Postr39
Pension Plans and Other Postretirement Benefit Plan (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Net Funded Status | The following table summarizes the projected benefit obligations, assets, funded status and the amounts recorded on the Company’s consolidated balance sheets as of June 30, 2017 and 2016 , associated with the Pension Plans and Postretirement Plan based upon actuarial valuations as of those measurement dates. Pension Plans Postretirement Plan June 30, June 30, 2017 2016 2017 2016 Change in benefit obligation: Benefit obligation at beginning of period $ 173,585 $ 174,131 $ 6,224 $ 8,704 Service cost 85 3,054 122 137 Interest cost 4,956 6,986 156 253 Actuarial loss (gain) (6,820 ) 17,115 (589 ) 708 Benefits paid (5,803 ) (4,849 ) (179 ) (417 ) Transfer of liabilities (a) — (22,852 ) — (3,161 ) Benefit obligation at end of period 166,003 173,585 5,734 6,224 Change in plan assets: Fair value of plan assets at beginning of period 110,261 99,596 — — Actual return on plan assets (999 ) 11,484 — — Employer contributions 11,263 4,030 — — Benefits paid (5,803 ) (4,849 ) — — Fair value of plan assets at end of period 114,722 110,261 — — Funded status at end of period $ (51,281 ) $ (63,324 ) $ (5,734 ) $ (6,224 ) _________________ (a) Represents the benefit obligation related to the MSG Networks Plans as of September 30, 2015, the date of the Distribution, net of pre-Distribution benefit payments of $142 for MSG Networks employees. |
Schedule of Amounts Recognized in Balance Sheet | Amounts recognized in the consolidated balance sheets as of June 30, 2017 and 2016 consist of: Pension Plans Postretirement Plan June 30, June 30, 2017 2016 2017 2016 Current liabilities (included in accrued employee related costs) $ (3,818 ) $ (3,286 ) $ (200 ) $ (227 ) Non-current liabilities (included in defined benefit and other postretirement obligations) (47,463 ) (60,038 ) (5,534 ) (5,997 ) $ (51,281 ) $ (63,324 ) $ (5,734 ) $ (6,224 ) |
Schedule of Net Periodic Benefit Cost Not yet Recognized | Accumulated other comprehensive income (loss), before income tax, as of June 30, 2017 and 2016 consists of the following amounts that have not yet been recognized in net periodic benefit cost: Pension Plans Postretirement Plan June 30, June 30, 2017 2016 2017 2016 Actuarial gain (loss) $ (37,317 ) $ (42,120 ) $ 6 $ (583 ) Prior service credit — — 44 92 $ (37,317 ) $ (42,120 ) $ 50 $ (491 ) |
Schedule of Net Periodic Benefit Cost | Components of net periodic benefit cost for the Pension Plans and Postretirement Plan recognized in direct operating and selling, general and administrative expenses in the accompanying consolidated and combined statements of operations for the years ended June 30, 2017 , 2016 and 2015 are as follows: Pension Plans Postretirement Plan Years Ended June 30, Years Ended June 30, 2017 2016 2015 2017 2016 2015 Service cost $ 85 $ 3,054 $ 6,495 $ 122 $ 137 $ 198 Interest cost 4,956 6,986 7,226 156 253 331 Expected return on plan assets (2,383 ) (2,960 ) (3,228 ) — — — Recognized actuarial loss 1,365 1,039 2,050 — — — Amortization of unrecognized prior service cost (credit) — 14 26 (48 ) (106 ) (138 ) Net periodic benefit cost $ 4,023 $ 8,133 $ 12,569 $ 230 $ 284 $ 391 |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Other pre-tax changes in plan assets and benefit obligations recognized in other comprehensive income (loss) for the years ended June 30, 2017 , 2016 and 2015 are as follows: Pension Plans Postretirement Plan Years Ended June 30, Years Ended June 30, 2017 2016 2015 2017 2016 2015 Actuarial gain (loss) $ 3,438 $ (8,532 ) $ (6,993 ) $ 589 $ (707 ) $ 855 Recognized actuarial loss 1,365 1,039 2,050 — — — Recognized prior service (credit) cost — 14 26 (48 ) (106 ) (138 ) Total recognized in other comprehensive income (loss) $ 4,803 $ (7,479 ) $ (4,917 ) $ 541 $ (813 ) $ 717 |
Schedule of Assumptions Used | Weighted-average assumptions used to determine benefit obligations (made at the end of the period) as of June 30, 2017 and 2016 are as follows: Pension Plans Postretirement Plan June 30, June 30, 2017 2016 2017 2016 Discount rate 3.81 % 3.61 % 3.54 % 3.27 % Rate of compensation increase n/a n/a n/a n/a Healthcare cost trend rate assumed for next year n/a n/a 7.25 % 7.25 % 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 2026 Weighted-average assumptions used to determine net periodic benefit cost (made at the beginning of the period) for the years ended June 30, 2017 , 2016 and 2015 are as follows: Pension Plans Postretirement Plan Years Ended June 30, Years Ended June 30, 2017 2016 2015 2017 2016 2015 Discount rate n/a 4.46 % 4.32 % n/a 4.05 % 4.00 % Discount rate - projected benefit obligation (a) 3.61 % n/a n/a 3.27 % n/a n/a Discount rate - service cost (a) 3.74 % n/a n/a 3.53 % n/a n/a Discount rate - interest cost (a) 2.99 % n/a n/a 2.72 % n/a n/a Expected long-term return on plan assets 3.38 % 4.06 % 4.24 % n/a n/a n/a Rate of compensation increase n/a n/a 3.00 % n/a n/a n/a Healthcare cost trend rate assumed for next year n/a n/a n/a 7.25 % 7.25 % 7.25 % 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 2026 2021 2020 _________________ (a) Effective July 1, 2016, the Company changed the approach used to measure service and interest cost components of net periodic benefit costs for Pension Plans and Postretirement Plan. Previously, the Company measured service and interest costs utilizing a single weighted-average discount rate derived from the yield curve used to measure the plans’ obligations. Beginning fiscal year 2017, the Company elected to measure service and interest costs by applying the specific spot rates along that yield curve to the plans’ liability cash flows (“Spot Rate Approach”). The Company believes the Spot Rate Approach provides a more accurate measurement of service and interest costs by improving the correlation between projected benefit cash flows and their corresponding spot rates on the yield curve. This change does not affect the measurement of the plans’ obligations and it is accounted for as a change in accounting estimate, which is applied prospectively. |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A one percentage point change in assumed healthcare cost trend rates would have the following effects: Increase (Decrease) in Total of Service and Interest Cost Components for the Increase (Decrease) in Benefit Obligation at Years Ended June 30, June 30, 2017 2016 2015 2017 2016 One percentage point increase $ 34 $ 29 $ 67 $ 578 $ 723 One percentage point decrease (30 ) (27 ) (58 ) (155 ) (624 ) |
Schedule of Allocation of Plan Assets | The weighted-average asset allocation of the Pension Plans’ assets at June 30, 2017 and 2016 was as follows: June 30, Asset Classes (a) : 2017 2016 Fixed income securities 83 % 85 % Cash equivalents 17 % 15 % 100 % 100 % _____________________ (a) The Company’s target allocation for pension plan assets is 80% fixed income securities and 20% cash equivalents as of June 30, 2017 . |
Schedule of Changes in Fair Value of Plan Assets | The cumulative fair values of the individual plan assets at June 30, 2017 and 2016 by asset class are as follows: Fair Value Hierarchy June 30, 2017 2016 Fixed income securities: U.S. Treasury Securities I $ 21,852 $ 26,102 U.S. corporate bonds II 62,295 54,945 Foreign issued corporate bonds II 10,979 12,161 Municipal bonds II 217 236 Money market accounts I 19,379 16,817 Total investments measured at fair value $ 114,722 $ 110,261 |
Schedule of Expected Benefit Payments | The following table presents estimated future fiscal year benefit payments for the Pension Plans and Postretirement Plan: Pension Plans Postretirement Plan Fiscal year ending June 30, 2018 $ 13,060 $ 203 Fiscal year ending June 30, 2019 8,960 249 Fiscal year ending June 30, 2020 7,800 296 Fiscal year ending June 30, 2021 7,280 359 Fiscal year ending June 30, 2022 7,460 404 Fiscal years ending June 30, 2023 – 2027 40,870 2,613 |
Schedule of Multiemployer Plans | The following table outlines the Company’s participation in multiemployer defined benefit pension plans for the years ended June 30, 2017 , 2016 and 2015 , and summarizes the contributions that the Company has made during each period. The “EIN” and “Pension Plan Number” columns provide the Employer Identification Number and the three-digit plan number for each applicable plan. The most recent Pension Protection Act zone status available as of June 30, 2017 and 2016 relates to the plan’s two most recent years ended which are indicated. Among other factors, plans in the red zone are generally less than 65% funded, plans in the orange zone are both less than 80% funded and have an accumulated funding deficiency or are expected to have a deficiency in any of the next six plan years, plans in the yellow zone are less than 80% funded, and plans in the green zone are at least 80% funded. The “FIP/RP Status Pending/Implemented” column indicates whether a funding improvement plan (“FIP”) for yellow/orange zone plans or a rehabilitation plan (“RP”) for red zone plans is either pending or has been implemented by the trustees of such plan. The zone status and any FIP or RP information is based on information that the Company received from the plan, and the zone status is as certified by the plan’s actuary. The last column lists the expiration date(s) or a range of expiration dates of the CBA to which the plans are subject. There are no other significant changes that affect such comparability. PPA Zone Status FIP/RP Status Pending / Implemented Madison Square Garden Contributions As of June 30, Years Ended June 30, Plan Name EIN Pension Plan Number 2017 2016 2017 2016 2015 Surcharge Imposed Expiration Date of CBA National Basketball Association Players’ Pension Plan 13-5582586 003 Yellow as of 2/1/2016 Yellow as of 2/1/2015 Implemented $ 1,830 $ 1,814 $ 1,853 No 6/2024 (with certain termination rights becoming effective 6/2023) Pension Fund of Local No. 1 of I.A.T.S.E. 13-6414973 001 Green as of 12/31/2015 Green as of 12/31/2014 No 2,325 2,236 2,380 No 9/30/2017 - 5/1/2018 National Hockey League Players’ Retirement Benefit Plan 46-2555356 001 Green as of 4/30/2016 Green as of 4/30/2015 No 1,364 1,311 1,359 No 9/2022 (with certain termination rights becoming effective 6/2020) All Other Multiemployer Defined Benefit Pension Plans 3,397 3,026 1,607 $ 8,916 $ 8,387 $ 7,199 |
Schedule Of Multiemployer Plans Year Contributions Exceeded More Than 5 Percent Of Total Contributions [Table Text Block] | The Company was listed in the following plans’ Form 5500’s as providing more than 5 percent of the total contributions for the following plans and plan years: Fund Name 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 December 31, 2015, 2014 and 2013 Pension Fund of Wardrobe Attendants Union Local 764 December 31, 2015, 2014 and 2013 32BJ/Broadway League Pension Fund December 31, 2015, 2014 and 2013 Pension Fund of Moving Picture Machine Operators Union of Greater New York, Local 306 December 31, 2013 Treasurers and Ticket Sellers Local 751 Pension Fund August 31, 2016 and 2015 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation Expense [Table Text Block] | Share-based compensation expense, reduced for estimated forfeiture, was recognized in the consolidated and combined statements of operations as a component of direct operating expenses or selling, general and administrative expenses. The following table presents the share-based compensation, reduced for estimated forfeiture, recorded during the years ended June 30, 2017 , 2016 and 2015 . Years Ended June 30, 2017 2016 2015 Company RSUs and PSUs $ 39,960 $ 18,404 $ — MSG Networks RSUs 1,169 6,072 10,306 Total share-based compensation expense $ 41,129 $ 24,476 $ 10,306 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | The following table summarizes activity relating to the Company’s RSUs and PSUs for the year ended June 30, 2017 : Number of Weighted-Average Fair Value Per Share At Date of Grant Nonperformance Based Vesting RSUs PSUs and Performance Based Vesting Unvested award balance as of June 30, 2016 172 313 $ 167.51 Granted 124 181 $ 172.10 Vested (70 ) (24 ) $ 145.61 Forfeited (18 ) (6 ) $ 163.80 Unvested award balance as of June 30, 2017 208 464 $ 172.78 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions [Table Text Block] | The following table summarizes the composition and amounts of the transactions with the Company’s affiliates, primarily with MSG Networks and Cablevision (until its sale to Altice N.V. on June 21, 2016). These amounts are reflected in revenues and operating expenses in the accompanying consolidated and combined statements of operations for the years ended June 30, 2017 , 2016 and 2015 : Years Ended June 30, 2017 2016 2015 Revenues $ 150,534 $ 153,538 $ 88,051 Operating expenses (credits): Corporate general and administrative, net — MSG Networks $ (9,832 ) $ (38,122 ) $ (56,999 ) Consulting fees 3,943 3,444 — Advertising expenses 1,249 1,609 4,821 Transactions with Cablevision — 5,651 3,205 Other, net 72 15 1,269 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense (benefit) is comprised of the following components: Years Ended June 30, 2017 2016 2015 Current expense: Federal $ — $ — $ — State and other — — — — — — Deferred expense (benefit): Federal (3,382 ) 325 288 State and other (1,022 ) (28 ) 148 (4,404 ) 297 436 Income tax expense (benefit) $ (4,404 ) $ 297 $ 436 |
Schedule of Effective Income Tax Rate Reconciliation | The income tax expense differs from the amount derived by applying the statutory federal rate to pre-tax income principally due to the effect of the following items: Years Ended June 30, 2017 2016 2015 Federal tax benefit at statutory federal rate $ (28,418 ) $ (26,948 ) $ (14,087 ) State income taxes, net of federal benefit (6,716 ) (6,843 ) (3,334 ) Change in the estimated applicable corporate tax rate used to determine deferred taxes 672 (192 ) 699 Nondeductible disability insurance premiums expense 1,983 1,806 1,349 Tax effect of pre-distribution earnings — 519 — Federal tax credits (354 ) (426 ) (1,426 ) Gains in other comprehensive income (6,477 ) — — Book income of consolidated partnership attributable to non-controlling interest 1,414 — — Tax effect of indefinite intangible amortization 1,329 — — Change in valuation allowance (a) 30,697 31,301 16,260 Nondeductible expenses and other 1,466 1,080 975 Income tax expense (benefit) $ (4,404 ) $ 297 $ 436 _________________ (a) For the year ended June 30, 2016, the valuation allowance reflects an increase on the Company’s net deferred tax asset related to fiscal year 2016 activity from the time of the Distribution. As part of the Distribution, MSG Networks is responsible for paying taxes on approximately $348,000 of deferred revenue from ticket sales, sponsorship and suite rentals collected in advance related to the Company’s business. This initially created a deferred tax asset on which the Company recorded a full valuation allowance at the time of the Distribution as it was more likely than not that the deferred tax asset would not be realized. |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences which give rise to significant portions of the deferred tax assets and liabilities at June 30, 2017 and 2016 are as follows: June 30, 2017 2016 Deferred tax asset: Net operating loss carryforwards $ 104,648 $ 109,074 Tax credit carryforwards 706 426 Accrued employee benefits 84,809 92,799 Accrued expenses 25,672 32,605 Restricted stock and stock options 28,937 15,556 Deferred production costs 2,843 — Other 8,774 9,263 Total deferred tax assets $ 256,389 $ 259,723 Less valuation allowance (218,639 ) (190,602 ) Net deferred tax assets $ 37,750 $ 69,121 Deferred tax liabilities: Intangible and other assets $ (198,786 ) $ (199,308 ) Property and equipment (17,162 ) (25,364 ) Deferred production costs — (4,898 ) Prepaid expenses (7,782 ) (9,248 ) Investments (10,456 ) (24,886 ) Total deferred tax liabilities $ (234,186 ) $ (263,704 ) Net deferred tax liability $ (196,436 ) $ (194,583 ) |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Segment | Information as to the operations of the Company’s reportable segments is set forth below. Year ended June 30, 2017 MSG Entertainment MSG Sports Corporate and Purchase accounting adjustments Total Revenues $ 506,468 $ 811,984 $ — $ — $ 1,318,452 Direct operating expenses 378,325 473,590 — 9,466 (a) 861,381 Selling, general and administrative expenses 120,496 209,941 79,602 — (b) 410,039 Depreciation and amortization 11,339 9,319 83,578 3,152 (c) 107,388 Operating income (loss) (3,692 ) 119,134 (163,180 ) (12,618 ) (60,356 ) Loss in equity method investments (29,976 ) Interest income 11,836 Interest expense (4,189 ) Miscellaneous income (d) 1,492 Loss from operations before income taxes $ (81,193 ) Reconciliation of operating income (loss) to adjusted operating income (loss): Operating income (loss) (3,692 ) 119,134 (163,180 ) (12,618 ) (60,356 ) Add back: Share-based compensation expense 14,323 14,548 12,258 — 41,129 Depreciation and amortization 11,339 9,319 83,578 3,152 (c) 107,388 Other purchase accounting adjustments — — — 9,466 9,466 Adjusted operating income (loss) $ 21,970 $ 143,001 $ (67,344 ) $ — $ 97,627 Other information: Capital expenditures $ 11,460 $ 2,393 $ 30,371 $ — $ 44,224 Year ended June 30, 2016 MSG Entertainment MSG Sports Corporate and Total Revenues $ 415,390 $ 699,062 $ 859 $ 1,115,311 Direct operating expenses 341,637 396,220 — (a) 737,857 Selling, general and administrative expenses 96,204 182,131 55,268 (b) 333,603 Depreciation and amortization 9,884 10,957 81,641 (c) 102,482 Operating income (loss) (32,335 ) 109,754 (136,050 ) (58,631 ) Loss in equity method investments (19,099 ) Interest income 6,782 Interest expense (2,028 ) Miscellaneous expense (d) (4,017 ) Loss from operations before income taxes $ (76,993 ) Reconciliation of operating income (loss) to adjusted operating income (loss): Operating income (loss) (32,335 ) 109,754 (136,050 ) (58,631 ) Add back: Share-based compensation expense 7,870 10,316 6,290 24,476 Depreciation and amortization 9,884 10,957 81,641 (c) 102,482 Adjusted operating income (loss) $ (14,581 ) $ 131,027 $ (48,119 ) $ 68,327 Other information: Capital expenditures $ 4,974 $ 4,578 $ 62,164 (e) $ 71,716 Year ended June 30, 2015 MSG Entertainment MSG Sports Corporate and Total Revenues $ 414,161 $ 656,683 $ 707 $ 1,071,551 Direct operating expenses 307,373 417,508 — 724,881 Selling, general and administrative expenses 69,215 144,770 24,333 (b) 238,318 Depreciation and amortization 10,321 19,089 79,348 (c) 108,758 Operating income (loss) 27,252 75,316 (102,974 ) (406 ) Loss in equity method investments (40,590 ) Interest income 3,056 Interest expense (2,498 ) Miscellaneous income 190 Loss from operations before income taxes $ (40,248 ) Reconciliation of operating income (loss) to adjusted operating income (loss): Operating income (loss) 27,252 75,316 (102,974 ) (406 ) Add back: Share-based compensation expense 3,616 3,601 3,089 (f) 10,306 Depreciation and amortization 10,321 19,089 79,348 (c) 108,758 Adjusted operating income (loss) $ 41,189 $ 98,006 $ (20,537 ) $ 118,658 Other information: Capital expenditures $ 5,665 $ 4,513 $ 53,905 (e) $ 64,083 _________________ (a) MSG Entertainment’s direct operating expenses for the years ended June 30, 2017 and 2016 include $33,629 and $41,816 , respectively, of write-offs of deferred production costs associated with the New York Spectacular production (see Note 2). (b) Corporate and Other consists of unallocated corporate general and administrative costs. The amount for the year ended June 30, 2016 include approximately $6,900 of reorganization costs which primarily consists of severance and related benefits. Such costs were paid during fiscal year 2017. (c) Corporate and Other principally includes depreciation and amortization expense on The Garden, The Theater at Madison Square Garden, the Forum, and certain corporate property, equipment and leasehold improvement assets not allocated to the Company’s reportable segments. (d) Miscellaneous income for the year ended June 30, 2017 consists principally of the recovery of certain claims in connection with a third-party bankruptcy proceeding. Miscellaneous expenses for the year ended June 30, 2016 primarily include partial write-down of one of the Company’s cost method investments (see Note 5 ). (e) Corporate and Other ’ s capital expenditures for the year ended June 30, 2016 are primarily associated with the purchase of a new aircraft, as well as certain investments with respect to The Garden. Corporate and Other’s capital expenditures for the year ended June 30, 2015 is primarily associated with certain investments with respect to The Garden and the Forum. (f) The amount for the year ended June 30, 2015 include executive management transition costs. |
Schedule of Revenue from External Customers by Products and Services | The table below sets forth, for the periods presented, the Company’s consolidated revenues for the years ended June 30, 2017 and 2016 and combined revenues for the year ended June 30, 2015 by component. Years Ended June 30, 2017 2016 2015 Revenues Event-related revenues (a) $ 908,941 $ 834,213 $ 816,300 Media rights revenues (b) 220,021 179,816 129,081 Advertising sales commission, sponsorship and signage revenues (c) 74,685 68,661 50,451 All other revenues (d) 114,805 32,621 75,719 $ 1,318,452 $ 1,115,311 $ 1,071,551 _________________ (a) Primarily consists of professional sports teams’, entertainment and other live sporting events revenues. These amounts include (i) ticket sales, (ii) other ticket-related revenue, (iii) food, beverage and merchandise sales, (iv) venue license fees, and (v) event-related sponsorship and signage revenues. (b) Primarily consists of telecast rights fees from MSG Networks and the Company’s share of league distributions. (c) Amounts exclude event-related sponsorship and signage revenues. (d) Primarily consists of (i) playoff revenue, which includes ticket sales, food, beverage and merchandise sales, and suite rental fees, (ii) nonevent-related food and beverage revenues and (iii) other non-media rights related league distributions. |
Concentration of Risk (Tables)
Concentration of Risk (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Risks and Uncertainties [Abstract] | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | The following individual non-affiliated customers accounted for the following percentages of the Company’s consolidated accounts receivable balances: June 30, 2017 2016 Customer A (a) 11 % 1 % Customer B 10 % 14 % ____________ (a) A receivable from Customer A as of June 30, 2017 is primarily associated with a nonrecurring transaction. |
Interim Financial Information45
Interim Financial Information (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Table Text Block] | The following is a summary of the Company’s selected quarterly financial data for the years ended June 30, 2017 and 2016 : Three Months Ended Year ended June 30, 2017 September 30, December 31, March 31, June 30, 2016 2016 2017 2017 Revenues $ 181,695 $ 445,150 $ 386,033 $ 305,574 $ 1,318,452 Operating expenses 214,538 386,899 379,327 398,044 1,378,808 Operating income (loss) $ (32,843 ) $ 58,251 $ 6,706 $ (92,470 ) $ (60,356 ) Net income (loss) $ (28,914 ) $ 57,421 $ (17,843 ) $ (87,453 ) $ (76,789 ) Net income (loss) attributable to The Madison Square Garden Company’s stockholders $ (28,626 ) $ 57,726 $ (17,545 ) $ (84,278 ) $ (72,723 ) Basic earnings (loss) per common share attributable to The Madison Square Garden Company’s stockholders $ (1.19 ) $ 2.41 $ (0.74 ) $ (3.58 ) $ (3.05 ) Diluted earnings (loss) per common share attributable to The Madison Square Garden Company’s stockholders $ (1.19 ) $ 2.39 $ (0.74 ) $ (3.58 ) $ (3.05 ) Three Months Ended Year ended June 30, 2016 September 30, December 31, March 31, June 30, 2015 2015 2016 2016 Revenues $ 150,381 $ 410,838 $ 336,328 $ 217,764 $ 1,115,311 Operating expenses 154,958 361,799 393,264 263,921 1,173,942 Operating income (loss) $ (4,577 ) $ 49,039 $ (56,936 ) $ (46,157 ) $ (58,631 ) Net income (loss) $ (1,603 ) $ 43,488 $ (60,756 ) $ (58,419 ) $ (77,290 ) Net income (loss) attributable to The Madison Square Garden Company’s stockholders $ (1,603 ) $ 43,488 $ (60,756 ) $ (58,419 ) $ (77,290 ) Basic earnings (loss) per common share attributable to The Madison Square Garden Company’s stockholders $ (0.06 ) $ 1.74 $ (2.47 ) $ (2.39 ) $ (3.12 ) Diluted earnings (loss) per common share attributable to The Madison Square Garden Company’s stockholders $ (0.06 ) $ 1.74 $ (2.47 ) $ (2.39 ) $ (3.12 ) |
Description of Business and B46
Description of Business and Basis of Presentation (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2015USD ($) | Jun. 30, 2017segments$ / shares | Jun. 30, 2016$ / shares | Sep. 21, 2015$ / shares | |
Percentage of ownership of business distributed to stockholders in Distribution | 100.00% | |||
Number of Reportable Segments | segments | 2 | |||
MSG Networks [Member] | ||||
Proceeds from Distribution | $ | $ 1,467,093 | |||
Class A Common Stock [Member] | ||||
Common stock, par value (dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |
Stock Conversion Ratio in Distribution | 0.3333 | |||
Class B Common Stock [Member] | ||||
Common stock, par value (dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |
Stock Conversion Ratio in Distribution | 0.3333 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Deferred Revenue [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Due To Third-Party Promoters | $ 72,400 | $ 45,877 |
Direct operating expenses (Narr
Direct operating expenses (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Deferred Production Costs [Line Items] | |||
Deferred Production Costs Useful Life in Years, Estimated Range, Lower Bound | 5 years | ||
Deferred Production Costs Useful Life in Years, Estimated Range, Upper Bound | 10 years | ||
Write-off of deferred production costs | $ 33,629 | $ 41,816 | $ 0 |
Deferred Production Costs, Net Current And Noncurrent | 6,702 | 43,083 | |
Madison Square Garden Entertainment [Member] | New York Spectacular [Member] | |||
Deferred Production Costs [Line Items] | |||
Write-off of deferred production costs | $ 33,629 | $ 41,816 |
Advertising Costs, Policy (Narr
Advertising Costs, Policy (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Accounting Policies [Abstract] | |||
Advertising Expense | $ 18,963 | $ 20,834 | $ 27,220 |
Earnings (Loss) Per Common Shar
Earnings (Loss) Per Common Share (Narrative) (Details) shares in Thousands | Sep. 30, 2015shares |
Accounting Policies [Abstract] | |
Common stock, shares outstanding | 24,928 |
Accounts Receivable (Narrative)
Accounts Receivable (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Accounting Policies [Abstract] | ||
Allowance for Doubtful Accounts Receivable, Current | $ 601 | $ 1,282 |
Acquisitions (BCE Acquisition)
Acquisitions (BCE Acquisition) (Details) - USD ($) $ in Thousands | Jul. 01, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Business Acquisition [Line Items] | ||||
Goodwill | [1] | $ 380,087 | $ 277,166 | |
Amortization of Purchase Price Accounting Adjustments | 9,466 | |||
BCE [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 2,221 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 11,610 | |||
Goodwill | 12,728 | |||
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value | 11,394 | |||
Acquisition Payments Deposited To Escrow Account | $ 1,750 | |||
Amortization of Purchase Price Accounting Adjustments | 905 | |||
Revenue of Acquiree since Acquisition Date, Actual | 16,000 | |||
Earnings or Loss of Acquiree since Acquisition Date, Actual | $ 1,500 | |||
[1] | The increase in the carrying amount of goodwill, as compared to June 30, 2016, in the MSG Entertainment segment was due to the purchase price allocation for the BCE and TAO Group acquisitions during the first and third quarters of fiscal year 2017, respectively. The goodwill that arose from these acquisitions was valued using unobservable inputs within Level III of the fair value hierarchy, primarily from utilizing the discounted cash flow model, which is an income-based approach that allocates to goodwill any purchase price not specifically assigned to intangibles, fixed assets, working capital or noncontrolling interests. Goodwill recognized in these acquisitions is expected to be deductible for tax purposes. See Note 3 for more information on the allocation of the purchase price and goodwill recognized in connection with these acquisitions. |
Acquisitions Acquisition (Towns
Acquisitions Acquisition (Townsquare) (Details) - Townsquare [Member] shares in Thousands, $ in Thousands | Aug. 16, 2016USD ($)shares |
Schedule of Available-for-sale Securities [Line Items] | |
Investment Owned, Balance, Shares | shares | 3,208 |
Percentage Of Ownership Acquired | 12.00% |
Initial Payment To Acquire Available For Sale Securities | $ | $ 23,000 |
Acquisitions Acquisition (TAO G
Acquisitions Acquisition (TAO Group) (Details) - USD ($) $ in Thousands | Jan. 31, 2017 | Jun. 30, 2017 |
Business Acquisition [Line Items] | ||
Payments to Acquire Businesses, Net of Cash Acquired | $ 192,095 | |
Tao [Member] | ||
Business Acquisition [Line Items] | ||
Payments to Acquire Businesses, Net of Cash Acquired | $ 178,627 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 11,344 | |
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 25,500 | |
Business Acquisition Contingent Consideration Profitability Measurements Term And Period | 5 years | |
Common Stock [Member] | Tao [Member] | ||
Business Acquisition [Line Items] | ||
Business Acquisition, Percentage of Voting Interests Acquired | 62.50% | |
Preferred Stock [Member] | Tao [Member] | ||
Business Acquisition [Line Items] | ||
Payments to Acquire Businesses, Net of Cash Acquired | $ 8,746 |
Acquisitions Acquisition (TAO55
Acquisitions Acquisition (TAO Group Purchase Price Allocation) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jan. 31, 2017 | Jun. 30, 2016 | |
Business Acquisition [Line Items] | ||||
Goodwill | [1] | $ 380,087 | $ 277,166 | |
Tao [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 11,344 | |||
As Originally Reported [Member] | Tao [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 11,344 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 5,804 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets | 1,167 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 41,009 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 53,411 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 239,640 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 1,472 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | (7,046) | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | (39,814) | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | (105,292) | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | (16,244) | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 185,451 | |||
Goodwill | [2] | 97,420 | ||
Redeemable Noncontrolling Interest, Equity, Other, Fair Value | [3] | (85,000) | ||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest | 197,871 | |||
Measurement Period Adjustments [Member] | Tao [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | (1,387) | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | 495 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | 8,119 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 7,227 | |||
Goodwill | [2] | (7,227) | ||
As Adjusted [Member] | Tao [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 11,344 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 5,804 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets | 1,167 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 41,009 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 53,411 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 238,253 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 1,472 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | (7,046) | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | (39,319) | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | (105,292) | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | (8,125) | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 192,678 | |||
Goodwill | [2] | 90,193 | ||
Redeemable Noncontrolling Interest, Equity, Other, Fair Value | [3] | (85,000) | ||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest | $ 197,871 | |||
Put Option [Member] | Tao [Member] | ||||
Business Acquisition [Line Items] | ||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 37.50% | |||
Call Option [Member] | Tao [Member] | ||||
Business Acquisition [Line Items] | ||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 37.50% | |||
[1] | The increase in the carrying amount of goodwill, as compared to June 30, 2016, in the MSG Entertainment segment was due to the purchase price allocation for the BCE and TAO Group acquisitions during the first and third quarters of fiscal year 2017, respectively. The goodwill that arose from these acquisitions was valued using unobservable inputs within Level III of the fair value hierarchy, primarily from utilizing the discounted cash flow model, which is an income-based approach that allocates to goodwill any purchase price not specifically assigned to intangibles, fixed assets, working capital or noncontrolling interests. Goodwill recognized in these acquisitions is expected to be deductible for tax purposes. See Note 3 for more information on the allocation of the purchase price and goodwill recognized in connection with these acquisitions. | |||
[2] | Goodwill recognized in this acquisition is expected to be deductible for tax purposes. | |||
[3] | The minority shareholders holding the remaining 37.5% of TAO Group have various forms of put options that may be exercised upon the occurrence of certain conditions. If such an option is exercised prior to January 31, 2022, it would require the Company to purchase the equity of TAO Group at fair market value (subject, in certain cases, to mandatory discounts) as determined by the parties or by a third party appraisal pursuant to the terms of the TAO Group operating agreement. If such an option is exercised after January 31, 2022, it would require TAO Group to purchase the equity at fair market value as determined by the parties or by a third party appraisal pursuant to the terms of the TAO Group operating agreement. The Company may elect to satisfy this TAO Group obligation through a sale of TAO Group. In addition, the Company has a call option to purchase the remaining 37.5% equity of TAO Group at fair market value after the fifth anniversary of the acquisition date, or earlier if certain conditions are met. Both put and call options can be settled at the Company’s discretion in cash, debt or shares of the Company’s Class A Common Stock. The ultimate amount paid upon the exercise of a put or call option will likely be different from the estimated fair value, given the calculations required pursuant to the TAO Group operating agreement. |
Acquisition (Pro Forma Informat
Acquisition (Pro Forma Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Business Acquisition [Line Items] | |||
Amortization of Purchase Price Accounting Adjustments | $ 9,466 | ||
Interest Expense | 4,189 | $ 2,028 | $ 2,498 |
Depreciation and amortization | 107,388 | 102,482 | $ 108,758 |
Tao [Member] | |||
Business Acquisition [Line Items] | |||
Amortization of Purchase Price Accounting Adjustments | 11,713 | ||
Revenue of Acquiree since Acquisition Date, Actual | 34,332 | ||
Earnings or Loss of Acquiree since Acquisition Date, Actual | 58 | ||
Management Fee Expense | 833 | ||
Interest Expense | 1,702 | ||
Depreciation and amortization | 1,064 | ||
Business Acquisition, Pro Forma Revenue | 1,519,725 | 1,333,765 | |
Business Acquisition, Pro Forma Net Income (Loss) | $ (64,443) | $ (98,934) |
Acquisitions Acquisitions (Othe
Acquisitions Acquisitions (Other Information) (Details) - USD ($) | Jan. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2016 |
Tao [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Acquisition Related Costs | $ 7,153,000 | $ 2,457,000 | |
Secured Debt [Member] | Tao [Member] | |||
Business Acquisition [Line Items] | |||
Debt Instrument, Term | 5 years | ||
Debt Instrument, Face Amount | $ 110,000,000 | ||
Collateral Pledged [Member] | Revolving Credit Facility [Member] | Tao [Member] | |||
Business Acquisition [Line Items] | |||
Debt Instrument, Term | 5 years | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 12,000,000 |
Team Personnel Transactions (De
Team Personnel Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Team Personnel Transactions [Abstract] | |||
Provisions for Team Personnel Transactions | $ 42,337 | $ 7,484 | $ 25,317 |
Investments and Loans to Nonc59
Investments and Loans to Nonconsolidated Affiliates (Equity and Cost Method Investments) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||||
Mar. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Mar. 31, 2014 | Sep. 30, 2013 | |||
Schedule of Investments [Line Items] | |||||||
Investments | $ 127,663 | $ 151,311 | |||||
Advances to Affiliates | 114,624 | 112,235 | |||||
Investments and loans to nonconsolidated affiliates | 242,287 | 263,546 | |||||
Advances to Affiliates, Interest Receivable | $ 154 | $ 62 | |||||
Azoff MSG Entertainment LLC [Member] | |||||||
Schedule of Investments [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 50.00% | ||||||
Brooklyn Bowl Las Vegas LLC [Member] | |||||||
Schedule of Investments [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 74.00% | 74.00% | |||||
Equity Method Investment, Ownership Percentage after Change | 20.00% | ||||||
Tribeca Enterprises, LLC [Member] | |||||||
Schedule of Investments [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 50.00% | ||||||
Payment in Kind (PIK) Note [Member] | Tribeca Enterprises, LLC [Member] | |||||||
Schedule of Investments [Line Items] | |||||||
Advances to Affiliates | $ 870 | $ 95 | |||||
Equity Method Investments [Member] | Azoff MSG Entertainment LLC [Member] | |||||||
Schedule of Investments [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | |||||
Investments | $ 104,024 | $ 112,147 | |||||
Advances to Affiliates | 97,592 | [1] | 97,500 | ||||
Investments and loans to nonconsolidated affiliates | 201,616 | 209,647 | |||||
Equity Method Investments [Member] | Brooklyn Bowl Las Vegas LLC [Member] | |||||||
Schedule of Investments [Line Items] | |||||||
Investments | [2] | 0 | 0 | ||||
Advances to Affiliates | [1] | 2,662 | 2,662 | ||||
Investments and loans to nonconsolidated affiliates | $ 2,662 | $ 2,662 | |||||
Equity Method Investments [Member] | Tribeca Enterprises, LLC [Member] | |||||||
Schedule of Investments [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | |||||
Investments | $ 12,864 | $ 13,736 | |||||
Advances to Affiliates | [3] | 14,370 | 10,395 | ||||
Investments and loans to nonconsolidated affiliates | $ 27,234 | $ 24,131 | |||||
Equity Method Investments [Member] | Fuse Media, LLC [Member] | |||||||
Schedule of Investments [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 15.00% | 15.00% | |||||
Investments | $ 0 | $ 21,634 | |||||
Investments and loans to nonconsolidated affiliates | 0 | 21,634 | |||||
Cost-method Investments [Member] | Other Cost Method Investments [Member] | |||||||
Schedule of Investments [Line Items] | |||||||
Investments | 10,775 | [4] | 3,794 | ||||
Advances to Affiliates | 0 | [4] | 1,678 | ||||
Investments and loans to nonconsolidated affiliates | $ 10,775 | $ 5,472 | |||||
Stock Issued During Period, Value, Conversion of Convertible Securities | $ 1,774 | ||||||
[1] | Represents outstanding loan balances, inclusive of amounts due to the Company for interest of $154 and $62 as of June 30, 2017 and 2016, respectively. | ||||||
[2] | The Company is entitled to receive back its capital, which was 74% of BBLV’s total capital as of June 30, 2017 and 2016, plus a preferred return, after which the Company would own a 20% interest in BBLV. | ||||||
[3] | Includes outstanding payments-in-kind (“PIK”) interest of $870 and $95 as of June 30, 2017 and 2016, respectively. PIK interest owed does not reduce availability under the revolving credit facility. | ||||||
[4] | During the quarter ended March 31, 2017, one of the Company’s cost method investees converted $1,774 of outstanding principal amount of its convertible promissory note and unpaid accrued interest into preferred shares. |
Investments and Loans to Nonc60
Investments and Loans to Nonconsolidated Affiliates Investment and Loans to Nonconsolidated Affiliates (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2014 | Mar. 31, 2017 | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | Aug. 09, 2017 | Mar. 31, 2014 | Sep. 30, 2013 | ||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Noncash or Part Noncash Acquisition, Interest Acquired | 15.00% | |||||||||||
Cost-method Investments, Other than Temporary Impairment | $ 0 | $ 4,080 | $ 0 | |||||||||
Azoff MSG Entertainment LLC [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Equity Method Investment, Ownership Percentage | 50.00% | |||||||||||
Equity Method Investment Aggregate Cost Excluding Transaction Costs | [1] | $ 125,000 | ||||||||||
Commitments To Equity Method Investments | [1] | $ 100,000 | ||||||||||
Brooklyn Bowl Las Vegas LLC [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Equity Method Investment, Ownership Percentage | 74.00% | 74.00% | 74.00% | |||||||||
Commitments To Equity Method Investments | [1] | $ 2,600 | ||||||||||
Equity Method Investment, Other than Temporary Impairment | $ 23,600 | $ 23,600 | ||||||||||
Tribeca Enterprises, LLC [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Equity Method Investment, Ownership Percentage | 50.00% | |||||||||||
Equity Method Investment Aggregate Cost Excluding Transaction Costs | [1] | $ 22,500 | ||||||||||
Commitments To Equity Method Investments | [1] | 14,000 | ||||||||||
Fuse Media, LLC [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Equity Method Investment, Other than Temporary Impairment | $ 20,613 | $ 20,613 | ||||||||||
Other Cost Method Investments [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Cost-method Investments, Other than Temporary Impairment | $ 4,080 | $ 4,080 | ||||||||||
Finding Neverland [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Equity Method Investment, Other than Temporary Impairment | $ 7,270 | $ 7,270 | ||||||||||
Goodwill Component [Member] | Azoff MSG Entertainment LLC [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Equity Method Investments Allocated Difference Between Initial Carrying Value and Underlying Equity Value | 108,220 | |||||||||||
Amortizable Intangible Assets [Member] | Azoff MSG Entertainment LLC [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Equity Method Investments Allocated Difference Between Initial Carrying Value and Underlying Equity Value | $ 17,350 | |||||||||||
Amortizable Intangible Assets [Member] | Tribeca Enterprises, LLC [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Equity Method Investments Allocated Difference Between Initial Carrying Value and Underlying Equity Value | 5,350 | |||||||||||
Amortization Period For Intangible Assets | 10 years | |||||||||||
Other Indefinite-lived Intangible Assets [Member] | Tribeca Enterprises, LLC [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Equity Method Investments Allocated Difference Between Initial Carrying Value and Underlying Equity Value | $ 5,750 | |||||||||||
Subsequent Event [Member] | Tribeca Enterprises, LLC [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Commitments To Equity Method Investments | [1] | $ 17,500 | ||||||||||
Minimum [Member] | Amortizable Intangible Assets [Member] | Azoff MSG Entertainment LLC [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Amortization Period For Intangible Assets | 5 years | |||||||||||
Maximum [Member] | Amortizable Intangible Assets [Member] | Azoff MSG Entertainment LLC [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Amortization Period For Intangible Assets | 7 years | |||||||||||
[1] | The Company is entitled to receive back its capital, which was 74% of BBLV’s total capital as of June 30, 2017 and 2016, plus a preferred return, after which the Company would own a 20% interest in BBLV. |
Investments and Loans to Nonc61
Investments and Loans to Nonconsolidated Affiliates (Summarized Financial Information of Equity Investments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |||
Current assets | $ 103,319 | $ 76,111 | |
Noncurrent assets | 399,485 | 429,996 | |
Total Assets | 502,804 | 506,107 | |
Current liabilities | 116,454 | 89,415 | |
Noncurrent liabilities | 399,165 | 394,923 | |
Noncontrolling interests | 59,205 | 60,832 | |
Shareholders’ equity | (72,020) | (39,063) | |
Total Liabilities and Equity | 502,804 | 506,107 | |
Income Statement [Abstract] | |||
Revenues | 328,533 | 280,924 | $ 152,580 |
Loss from continuing operations | (16,923) | (31,206) | (28,845) |
Net loss | (16,923) | (31,206) | (28,845) |
Net loss attributable to controlling interest | $ (17,399) | $ (32,006) | $ (28,742) |
Goodwill and Intangible Asset62
Goodwill and Intangible Assets (Carrying Amount of Goodwill By Reportable Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | ||
Goodwill [Line Items] | |||
Goodwill | [1] | $ 380,087 | $ 277,166 |
Impairment of goodwill | 0 | ||
Madison Square Garden Entertainment [Member] | |||
Goodwill [Line Items] | |||
Goodwill | [1] | 161,900 | 58,979 |
Madison Square Garden Sports [Member] | |||
Goodwill [Line Items] | |||
Goodwill | $ 218,187 | $ 218,187 | |
[1] | The increase in the carrying amount of goodwill, as compared to June 30, 2016, in the MSG Entertainment segment was due to the purchase price allocation for the BCE and TAO Group acquisitions during the first and third quarters of fiscal year 2017, respectively. The goodwill that arose from these acquisitions was valued using unobservable inputs within Level III of the fair value hierarchy, primarily from utilizing the discounted cash flow model, which is an income-based approach that allocates to goodwill any purchase price not specifically assigned to intangibles, fixed assets, working capital or noncontrolling interests. Goodwill recognized in these acquisitions is expected to be deductible for tax purposes. See Note 3 for more information on the allocation of the purchase price and goodwill recognized in connection with these acquisitions. |
Goodwill and Intangible Asset63
Goodwill and Intangible Assets (Schedule of Indefinite-Lived Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Indefinite-lived Intangible Assets by Major Class [Line Items] | ||
Indefinite-lived intangible assets | $ 166,850 | $ 166,850 |
Impairment of indefinite-lived intangible assets | 0 | |
Sports franchises [Member] | Madison Square Garden Sports [Member] | ||
Indefinite-lived Intangible Assets by Major Class [Line Items] | ||
Indefinite-lived intangible assets | 101,429 | 101,429 |
Trademarks [Member] | Madison Square Garden Entertainment [Member] | ||
Indefinite-lived Intangible Assets by Major Class [Line Items] | ||
Indefinite-lived intangible assets | 62,421 | 62,421 |
Photographic related rights [Member] | Madison Square Garden Sports [Member] | ||
Indefinite-lived Intangible Assets by Major Class [Line Items] | ||
Indefinite-lived intangible assets | $ 3,000 | $ 3,000 |
Goodwill and Intangible Asset64
Goodwill and Intangible Assets (Schedule of Intangible Assets Subject To Amortization) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross | $ 304,112 | $ 77,341 | ||
Accumulated Amortization | (47,137) | (61,612) | ||
Net | 256,975 | 15,729 | ||
Finite-Lived Intangible Assets, Amortization Expense | 7,805 | 6,595 | $ 6,939 | |
Trade Names [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross | [1] | 98,530 | ||
Accumulated Amortization | [1] | (1,003) | ||
Net | [1] | $ 97,527 | ||
Trade Names [Member] | TAO and BCE [Member] | Minimum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Estimated Useful Lives | 10 years | |||
Trade Names [Member] | TAO and BCE [Member] | Maximum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Estimated Useful Lives | 25 years | |||
Trade Names [Member] | TAO and BCE [Member] | Weighted Average [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Estimated Useful Lives | 21 years | |||
Venue Management Contracts [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross | [2] | $ 79,000 | ||
Accumulated Amortization | [2] | (761) | ||
Net | [2] | $ 78,239 | ||
Venue Management Contracts [Member] | Tao [Member] | Minimum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Estimated Useful Lives | 12 years | |||
Venue Management Contracts [Member] | Tao [Member] | Maximum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Estimated Useful Lives | 25 years | |||
Venue Management Contracts [Member] | Tao [Member] | Weighted Average [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Estimated Useful Lives | 18 years | |||
Off-Market Favorable Lease [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross | [3] | $ 54,253 | ||
Accumulated Amortization | [3] | (812) | ||
Net | [3] | 53,441 | ||
Off-Market Favorable Lease [Member] | Rent Expense [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Amortization Expense | $ 812 | |||
Off-Market Favorable Lease [Member] | Tao [Member] | Minimum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Estimated Useful Lives | 1 year 6 months | |||
Off-Market Favorable Lease [Member] | Tao [Member] | Maximum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Estimated Useful Lives | 16 years | |||
Off-Market Favorable Lease [Member] | Tao [Member] | Weighted Average [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Estimated Useful Lives | 13 years | |||
Season Ticket Holder Relationships [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Estimated Useful Lives | 15 years | |||
Gross | [4] | $ 50,032 | 73,124 | |
Accumulated Amortization | [4] | (40,871) | (59,178) | |
Net | [4] | 9,161 | 13,946 | |
Festival Rights [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross | 9,080 | |||
Accumulated Amortization | (739) | |||
Net | $ 8,341 | |||
Festival Rights [Member] | Minimum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Estimated Useful Lives | 5 years | |||
Festival Rights [Member] | Maximum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Estimated Useful Lives | 15 years | |||
Other Intangible Assets [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross | $ 13,217 | 4,217 | ||
Accumulated Amortization | (2,951) | (2,434) | ||
Net | $ 10,266 | $ 1,783 | ||
Other Intangible Assets [Member] | Minimum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Estimated Useful Lives | 5 years 9 months | |||
Other Intangible Assets [Member] | Maximum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Estimated Useful Lives | 15 years | |||
[1] | The trade names, which are primarily attributable to the TAO Group acquisition, were valued using unobservable inputs within Level III of the fair value hierarchy, utilizing the discounted cash flow models and relief-from-royalty approach with a weighted-average amortization period of approximately 21 years. | |||
[2] | The venue management contracts, which are attributable to the TAO Group acquisition, were valued using unobservable inputs within Level III of the fair value hierarchy, utilizing the discounted cash flow models with a weighted-average amortization period of approximately 18 years. | |||
[3] | The favorable lease assets, which are attributable to the TAO Group acquisition, were valued using unobservable inputs within Level III of the fair value hierarchy, based on the difference between the actual lease rates and the current market rent for similar properties in those locations, discounted back to present value at a market rate for applicable leases with a weighted-average amortization period of approximately 13 years. | |||
[4] | The recorded amount for the gross carrying value of season ticket holder relationships, and the related accumulated amortization, decreased during the year ended June 30, 2017 as certain relationships became fully amortized. |
Goodwill and Intangible Asset65
Goodwill and Intangible Assets (Schedule of Finite-Lived Intangible Assets, Future Amortization Expense) (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 20,530 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 20,350 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 19,319 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 16,798 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 16,598 |
Property and Equipment (Schedul
Property and Equipment (Schedule of Property, Plant and Equipment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,782,357 | $ 1,701,410 |
Less accumulated depreciation and amortization | (623,086) | (540,801) |
Property and equipment, net | 1,159,271 | 1,160,609 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 91,678 | 91,678 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,110,366 | 1,107,027 |
Buildings [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 45 years | |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 292,935 | 272,276 |
Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 1 year | |
Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 20 years | |
Aircraft [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 38,090 | 38,090 |
Property, Plant and Equipment, Useful Life | 20 years | |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 49,622 | 50,034 |
Furniture and Fixtures [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 1 year | |
Furniture and Fixtures [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 10 years | |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 176,786 | 131,769 |
Property Plant And Equipment Useful Life Average | Shorter of term of lease or life of improvement | |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 22,880 | $ 10,536 |
Property and Equipment (Narrati
Property and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense on property and equipment | $ 99,583 | $ 95,887 | $ 101,819 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Contractual Obligations and Off Balance Sheet Arrangements) (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Commitments and Contingencies [Abstract] | |||
Lease Expiration Date | Dec. 31, 2033 | ||
Operating Leases, Rent Expense, Net | $ 39,044 | $ 35,617 | $ 34,239 |
Commitments and Contingencies69
Commitments and Contingencies (Contractual Obligations And Off Balance Sheet Arrangements) (Details) $ in Thousands | Jun. 30, 2017USD ($) | |
Other Commitments [Line Items] | ||
Commitments, Due Next Year | $ 270,323 | [1] |
Commitments, Due in Second Year | 188,528 | [1] |
Commitments, Due in Third Year | 117,737 | [1] |
Commitments, Due in Fourth Year | 68,732 | [1] |
Commitments, Due in Fifth Year | 46,923 | [1] |
Commitments, Due after Fifth Year | 154,407 | [1] |
Total Commitments and Contractual Obligations | 846,650 | [1] |
Off-Balance Sheet Commitments [Member] | ||
Other Commitments [Line Items] | ||
Commitments, Due Next Year | 204,765 | |
Commitments, Due in Second Year | 184,521 | |
Commitments, Due in Third Year | 113,731 | |
Commitments, Due in Fourth Year | 64,252 | |
Commitments, Due in Fifth Year | 43,448 | |
Commitments, Due after Fifth Year | 141,430 | |
Total Commitments and Contractual Obligations | 752,147 | |
Off-Balance Sheet Commitments [Member] | Operating Leases [Member] | ||
Other Commitments [Line Items] | ||
Commitments, Due Next Year | 47,545 | [2] |
Commitments, Due in Second Year | 45,911 | [2] |
Commitments, Due in Third Year | 44,035 | [2] |
Commitments, Due in Fourth Year | 42,239 | [2] |
Commitments, Due in Fifth Year | 42,769 | [2] |
Commitments, Due after Fifth Year | 134,496 | [2] |
Total Commitments and Contractual Obligations | 356,995 | [2] |
Off-Balance Sheet Commitments [Member] | Other Contractual Obligations [Member] | ||
Other Commitments [Line Items] | ||
Commitments, Due Next Year | 153,860 | [3] |
Commitments, Due in Second Year | 138,610 | [3] |
Commitments, Due in Third Year | 69,696 | [3] |
Commitments, Due in Fourth Year | 22,013 | [3] |
Commitments, Due in Fifth Year | 679 | [3] |
Commitments, Due after Fifth Year | 6,934 | [3] |
Total Commitments and Contractual Obligations | 391,792 | [3] |
Off-Balance Sheet Commitments [Member] | Letter of Credit [Member] | ||
Other Commitments [Line Items] | ||
Commitments, Due Next Year | 3,360 | [4] |
Commitments, Due in Second Year | 0 | |
Commitments, Due in Third Year | 0 | |
Commitments, Due in Fourth Year | 0 | |
Commitments, Due in Fifth Year | 0 | |
Commitments, Due after Fifth Year | 0 | |
Total Commitments and Contractual Obligations | 3,360 | [4] |
Contractual Obligations Reflected On Balance Sheet [Member] | ||
Other Commitments [Line Items] | ||
Commitments, Due Next Year | 65,558 | [5] |
Commitments, Due in Second Year | 4,007 | [5] |
Commitments, Due in Third Year | 4,006 | [5] |
Commitments, Due in Fourth Year | 4,480 | [5] |
Commitments, Due in Fifth Year | 3,475 | [5] |
Commitments, Due after Fifth Year | 12,977 | [5] |
Total Commitments and Contractual Obligations | $ 94,503 | [5] |
[1] | Pension obligations have been excluded from the table above as the timing of the future cash payments is uncertain. See Note 11 for information on the future funding requirements under our pension obligations. | |
[2] | Include contractually obligated minimum lease payments for operating leases having an initial noncancelable term in excess of one year for the Company’s venues, including the newly acquired TAO Group venues, and corporate offices. | |
[3] | Consist principally of the MSG Sports segment’s obligations under employment agreements that the Company has with its professional sports teams’ personnel that are generally guaranteed regardless of employee injury or termination. | |
[4] | Consist of letters of credit obtained by the Company as collateral, primarily for lease agreements. | |
[5] | Consist primarily of amounts earned under employment agreements that the Company has with certain of its professional sports teams’ personnel in the MSG Sports segment. |
Commitments and Contingencies70
Commitments and Contingencies Commitments and Contingencies (Contingencies) (Details) - Azoff MSG Entertainment LLC [Member] | Jun. 30, 2017 | Jun. 30, 2016 | Sep. 30, 2013 |
Loss Contingencies [Line Items] | |||
Equity Method Investment, Ownership Percentage | 50.00% | ||
Equity Method Investments [Member] | |||
Loss Contingencies [Line Items] | |||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Fair Value, Assets Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | $ 1,248,513 | $ 1,443,317 |
Commercial Paper [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 105,476 | 79,968 |
Money market accounts | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 102,884 | 159,881 |
Time deposits [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 1,007,302 | 1,202,681 |
Marketable Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | $ 787 |
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | $ 32,851 |
Fair Value Measurements (Sche72
Fair Value Measurements (Schedule of Fair Value, Financial Instruments) (Details) - USD ($) | Jan. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | |
Notes Receivable [Member] | ||||
Schedule of Financial Instruments [Line Items] | ||||
Carrying Value Of Financial Instrument Assets | $ 2,610,000 | $ 7,090,000 | ||
Fair Value Of Financial Instrument Assets | 2,610,000 | 7,090,000 | ||
Marketable Securities [Member] | ||||
Schedule of Financial Instruments [Line Items] | ||||
Carrying Value Of Financial Instrument Assets | 787,000 | |||
Fair Value Of Financial Instrument Assets | $ 787,000 | |||
Available-for-sale Securities [Member] | ||||
Schedule of Financial Instruments [Line Items] | ||||
Available-for-sale Securities, Amortized Cost Basis | 23,222,000 | |||
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax | 9,629,000 | |||
Carrying Value Of Financial Instrument Assets | [1] | 32,851,000 | ||
Other Comprehensive Income (Loss), Tax | 4,336,000 | |||
Debt [Member] | ||||
Schedule of Financial Instruments [Line Items] | ||||
Carrying Value Of Financial Instrument Liabilities | [2] | 110,000,000 | ||
Secured Debt [Member] | Tao [Member] | ||||
Schedule of Financial Instruments [Line Items] | ||||
Debt Instrument, Face Amount | $ 110,000,000 | |||
Tao [Member] | ||||
Schedule of Financial Instruments [Line Items] | ||||
Business Acquisition Contingent Consideration Profitability Measurements Term And Period | 5 years | |||
Fair Value, Inputs, Level 1 [Member] | Available-for-sale Securities [Member] | ||||
Schedule of Financial Instruments [Line Items] | ||||
Fair Value Of Financial Instrument Assets | [1] | 32,851,000 | ||
Fair Value, Inputs, Level 2 [Member] | Debt [Member] | ||||
Schedule of Financial Instruments [Line Items] | ||||
Fair Value Of Financial Instrument Liabilities | [2] | 110,091,000 | ||
Fair Value, Inputs, Level 3 [Member] | Tao [Member] | ||||
Schedule of Financial Instruments [Line Items] | ||||
Business Combination, Contingent Consideration, Liability | $ 7,900,000 | $ 7,900,000 | ||
[1] | Aggregate cost basis for available-for-sale securities, including transaction costs, was $23,222 as of June 30, 2017. The unrealized gain recorded in accumulated other comprehensive income was $9,629 as of June 30, 2017. The income tax expense, included in the accumulated other comprehensive loss, related to unrealized gains from available-for-sale securities, was $4,336 for the year ended June 30, 2017. The fair value of the available-for-sale securities is determined based on quoted market prices in active market at NYSE, which is classified as a Level I input within the fair value hierarchy. | |||
[2] | On January 31, 2017, TAOIH, TAOG and certain of its subsidiaries entered into a $110,000 senior secured five-year term loan facility. The Company’s long-term debt is classified within Level II of the fair value hierarchy as it is valued using quoted indices of similar securities for which the inputs are readily observable. |
Credit Facilities (Narrative) (
Credit Facilities (Narrative) (Details) - USD ($) | Jan. 31, 2017 | Jan. 25, 2017 | Sep. 30, 2016 | Jun. 30, 2017 |
Knicks [Member] | Revolving Credit Facility [Member] | Collateral Pledged [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 200,000,000 | |||
Debt Instrument, Term | 5 years | |||
Debt Instrument, Covenant Description | a debt service ratio of 1.5:1.0 over a trailing four quarter period | |||
Debt Instrument, Covenant Compliance | Knicks LLC was in compliance with this financial covenant | |||
Debt Instrument, Interest Rate Terms | Borrowings bear interest at a floating rate, which at the option of Knicks LLC may be either (i) a base rate plus a margin ranging from 0.00% to 0.125% per annum or (ii) LIBOR plus a margin ranging from 1.00% to 1.125% per annum. | |||
Debt Instrument, Collateral | All obligations under the Knicks Revolving Credit Facility are secured by a first lien security interest in certain of Knicks LLC’s assets, including, but not limited to, (i) the Knicks LLC’s membership rights in the NBA and (ii) revenues to be paid to the Knicks LLC by the NBA pursuant to certain U.S. national broadcast agreements. | |||
Debt Instrument, Subjective Acceleration Clause | Knicks LLC is required to make mandatory prepayments in certain circumstances, including without limitation if the maximum available amount under the Knicks Revolving Credit Facility is greater than 350% of qualified revenues. | |||
Debt Instrument, Restrictive Covenants | The Knicks Revolving Credit Facility contains certain restrictions on the ability of Knicks LLC to take certain actions as provided in (and subject to various exceptions and baskets set forth in) the Knicks Revolving Credit Facility, including the following: (i) incurring additional indebtedness and contingent liabilities; (ii) creating liens on certain assets; (iii) making restricted payments during the continuance of an event of default under the Knicks Revolving Credit Facility; (iv) engaging in sale and leaseback transactions; (v) merging or consolidating; and (vi) taking certain actions that would invalidate the secured lenders’ liens on any Knicks LLC’s collateral. | |||
Knicks [Member] | Revolving Credit Facility [Member] | Uncollateralized [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 15,000,000 | |||
Debt Instrument, Term | 1 year | |||
Knicks [Member] | Revolving Credit Facility [Member] | Minimum [Member] | Collateral Pledged [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Commitment Fee Percentage | 0.20% | |||
Knicks [Member] | Revolving Credit Facility [Member] | Maximum [Member] | Collateral Pledged [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Commitment Fee Percentage | 0.25% | |||
Rangers [Member] | Revolving Credit Facility [Member] | Collateral Pledged [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 150,000,000 | |||
Debt Instrument, Term | 5 years | |||
Debt Instrument, Covenant Description | a debt service ratio of 1.5:1.0 over a trailing four quarter period | |||
Debt Instrument, Covenant Compliance | Rangers LLC was in compliance with this financial covenant. | |||
Debt Instrument, Interest Rate Terms | Borrowings bear interest at a floating rate, which at the option of Rangers LLC may be either (i) a base rate plus a margin ranging from 0.125% to 0.50% per annum or (ii) LIBOR plus a margin ranging from 1.125% to 1.50% per annum. | |||
Debt Instrument, Collateral | All obligations under the Rangers Revolving Credit Facility are secured by a first lien security interest in certain of Rangers LLC’s assets, including, but not limited to, (i) Rangers LLC’s membership rights in the NHL, (ii) revenues to be paid to Rangers LLC by the NHL pursuant to certain U.S. and Canadian national broadcast agreements, and (iii) revenues to be paid to Rangers LLC pursuant to local media contracts. | |||
Debt Instrument, Subjective Acceleration Clause | Rangers LLC is required to make mandatory prepayments in certain circumstances, including without limitation if the maximum available amount under the Rangers Revolving Credit Facility is less than 17% of qualified revenues. | |||
Debt Instrument, Restrictive Covenants | The Rangers Revolving Credit Facility contains certain restrictions on the ability of Rangers LLC to take certain actions as provided in (and subject to various exceptions and baskets set forth in) the Rangers Revolving Credit Facility, including the following: (i) incurring additional indebtedness and contingent liabilities; (ii) creating liens on certain assets; (iii) making restricted payments during the continuance of an event of default under the Rangers Revolving Credit Facility; (iv) engaging in sale and leaseback transactions; (v) merging or consolidating; and (vi) taking certain actions that would invalidate the secured lenders’ liens on any of Rangers LLC’s assets securing the obligations under the Rangers Revolving Credit Facility. | |||
Rangers [Member] | Revolving Credit Facility [Member] | Minimum [Member] | Collateral Pledged [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Commitment Fee Percentage | 0.375% | |||
Rangers [Member] | Revolving Credit Facility [Member] | Maximum [Member] | Collateral Pledged [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Commitment Fee Percentage | 0.625% | |||
Tao [Member] | Secured Debt [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Face Amount | $ 110,000,000 | |||
Debt Instrument, Term | 5 years | |||
Debt Instrument, Covenant Description | The TAO Credit Facilities require TAOIH (i) to maintain, for the relevant TAO entities, a minimum consolidated liquidity of $5,000 at all times, (ii) to comply with a maximum total net leverage ratio of 4.00:1.00 initially and stepping down over time to 2.50:1.00 by the first quarter of calendar year 2021 and through the remainder of the term of the TAO Credit Facilities, and (iii) to comply with a minimum fixed charge coverage ratio of 1.50:1.00 initially and stepping down over time to 1.15:1.00 by the second quarter of calendar year 2021 and through the remainder of the term of the TAO Credit Facilities. | |||
Debt Instrument, Covenant Compliance | TAOIH was in compliance with the financial covenants of the TAO Credit Facilities | |||
Debt Instrument, Interest Rate Terms | Borrowings bear interest at a floating rate, which at the option of TAOG may be either (i) a base rate plus a margin ranging from 6.50% to 7.00% per annum or (ii) LIBOR plus a margin ranging from 7.50% to 8.00% per annum. | |||
Interest Paid | $ 770,000 | |||
Line of Credit Facility, Commitment Fee Percentage | 0.50% | |||
Debt Instrument, Collateral | All obligations under the TAO Credit Facilities are secured by a first lien security interest in substantially all of the applicable TAO entities’ assets, including, but not limited to, a pledge of all of the capital stock of substantially all of TAOIH’s wholly-owned domestic subsidiaries and 65% of the voting capital stock, and 100% of the non-voting capital stock, of each of its first-tier foreign subsidiaries. | |||
Debt Instrument, Subjective Acceleration Clause | TAOG is also required to make mandatory prepayments under the TAO Credit Facilities in certain circumstances, including, without limitation, 75% of excess cash flow, with a step-down to 50% when the total net leverage ratio is less than 2.00:1.00. | |||
Debt Instrument, Restrictive Covenants | The TAO Credit Facilities contain certain restrictions on the ability of TAOG to take certain actions as provided in (and subject to various exceptions and baskets set forth in) the TAO Credit Facilities, including, without limitation, the following: (i) incurring additional indebtedness; (ii) creating liens on assets; (iii) making distributions, dividends and other restricted payments; (iv) engaging in sale and leaseback transactions; (v) merging or consolidating; (vi) making investments; and (vii) prepaying certain indebtedness. | |||
Debt Instrument, Payment Terms | Subject to customary notice and minimum amount conditions, TAOG may voluntarily prepay outstanding loans under the TAO Credit Facilities at any time, in whole or in part (subject to customary breakage costs with respect to LIBOR loans) with premiums due in respect of prepayments of the TAO Term Loan Facility or permanent reduction under the TAO Revolving Credit Facility, in each case, starting at 5.0% initially and stepping down to 0% after three years. Beginning March 31, 2018, TAOG is required to make scheduled amortization payments under the TAO Term Loan Facility in consecutive quarterly installments equal to $687.5 per quarter initially, stepping up over time to $4,125 per quarter by March 31, 2021 and through the final maturity date of the TAO Term Loan Facility with the final balance payable on such maturity date. | |||
Tao [Member] | Capital Expenditures [Member] | Secured Debt [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Restrictive Covenants | The TAO entities under the TAO Credit Facilities are also subject to certain limitations with respect to making capital expenditures based upon the total net leverage ratio and other factors. The restrictions on capital expenditures are subject to certain “carry-forward” provisions and other customary carve-outs. | |||
Tao [Member] | Revolving Credit Facility [Member] | Collateral Pledged [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 12,000,000 | |||
Debt Instrument, Term | 5 years |
Credit Facilities Credit Facili
Credit Facilities Credit Facilities (Schedule of Long Term Debt Maturities) (Details) - Tao [Member] | Jun. 30, 2017USD ($) |
Debt Instrument [Line Items] | |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $ 0 |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 2,750,000 |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 2,750,000 |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 11,000,000 |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 93,500,000 |
Long-term Debt, Maturities, Repayments of Principal after Year Five | $ 0 |
Credit Facilities (Debt Outstan
Credit Facilities (Debt Outstanding and Deferred Financing Costs) (Details) | 12 Months Ended |
Jun. 30, 2017USD ($) | |
Debt Instrument [Line Items] | |
Debt Issuance Costs Incurred During Noncash or Partial Noncash Transaction | $ 8,739,000 |
Minimum [Member] | |
Debt Instrument [Line Items] | |
Deferred Financing Cost Useful Life | 1 year |
Maximum [Member] | |
Debt Instrument [Line Items] | |
Deferred Financing Cost Useful Life | 5 years |
Other Noncurrent Liabilities [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt, Gross | $ 110,000,000 |
Debt Issuance Costs, Net | (4,567,000) |
Long-term Debt | $ 105,433,000 |
Credit Facilities (Deferred F76
Credit Facilities (Deferred Financing Costs For Revolving Credit Facilities) (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Other Current Assets [Member] | |
Line of Credit Facility [Line Items] | |
Debt Issuance Costs, Net | $ 806 |
Other Assets [Member] | |
Line of Credit Facility [Line Items] | |
Debt Issuance Costs, Net | $ 2,784 |
Pension Plans and Other Postr77
Pension Plans and Other Postretirement Benefit Plan Schedule of Changes in Benefit Obligation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | ||
Pension Plans [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Defined Benefit Plan, Benefit Obligation at beginning of period | $ 173,585 | $ 174,131 | |
Defined Benefit Plan, Service Cost | 85 | 3,054 | |
Defined Benefit Plan, Interest Cost | 4,956 | 6,986 | |
Defined Benefit Plan, Actuarial Loss (Gain) | (6,820) | 17,115 | |
Defined Benefit Plan, Benefits Paid | (5,803) | (4,849) | |
Defined Benefit Plan, Transfer of Liabilities | [1] | (22,852) | |
Defined Benefit Plan, Benefit Obligation at end of period | 166,003 | 173,585 | |
Other Postretirement Benefit Plan [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Defined Benefit Plan, Benefit Obligation at beginning of period | 6,224 | 8,704 | |
Defined Benefit Plan, Service Cost | 122 | 137 | |
Defined Benefit Plan, Interest Cost | 156 | 253 | |
Defined Benefit Plan, Actuarial Loss (Gain) | (589) | 708 | |
Defined Benefit Plan, Benefits Paid | (179) | (417) | |
Defined Benefit Plan, Transfer of Liabilities | [1] | (3,161) | |
Defined Benefit Plan, Benefit Obligation at end of period | $ 5,734 | 6,224 | |
MSG Networks [Member] | Employee [Member] | Pension Plans [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Defined Benefit Plan, Benefits Paid | $ (142) | ||
[1] | Represents the benefit obligation related to the MSG Networks Plans as of September 30, 2015, the date of the Distribution, net of pre-Distribution benefit payments of $142 |
Pension Plans and Other Postr78
Pension Plans and Other Postretirement Benefit Plan Schedule of Changes in Plan Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Defined Benefit Plan, Fair Value of Plan Assets at beginning of period | $ 110,261 | |
Defined Benefit Plan, Fair Value of Plan Assets at end of period | 114,722 | $ 110,261 |
Pension Plans [Member] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Defined Benefit Plan, Fair Value of Plan Assets at beginning of period | 110,261 | 99,596 |
Defined Benefit Plan, Actual Return on Plan Assets | (999) | 11,484 |
Defined Benefit Plan, Employer Contributions | 11,263 | 4,030 |
Defined Benefit Plan, Benefits Paid | (5,803) | (4,849) |
Defined Benefit Plan, Fair Value of Plan Assets at end of period | 114,722 | 110,261 |
Other Postretirement Benefit Plan [Member] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Defined Benefit Plan, Benefits Paid | $ (179) | $ (417) |
Pension Plans and Other Postr79
Pension Plans and Other Postretirement Benefit Plan Schedule of Net Funded Status (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Pension Plans [Member] | ||
Defined Benefit Plan, Funded Status of Plan [Abstract] | ||
Defined Benefit Plan, Funded Status of Plan | $ (51,281) | $ (63,324) |
Other Postretirement Benefit Plan [Member] | ||
Defined Benefit Plan, Funded Status of Plan [Abstract] | ||
Defined Benefit Plan, Funded Status of Plan | $ (5,734) | $ (6,224) |
Pension Plans and Other Postr80
Pension Plans and Other Postretirement Benefit Plan Schedule of Amounts Recognized in Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent | $ (52,997) | $ (66,035) |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension and Other Postretirement Defined Benefit Plans, Current Liabilities | (3,818) | (3,286) |
Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent | (47,463) | (60,038) |
Defined Benefit Plan, Amounts Recognized in Balance Sheet | (51,281) | (63,324) |
Other Postretirement Benefit Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension and Other Postretirement Defined Benefit Plans, Current Liabilities | (200) | (227) |
Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent | (5,534) | (5,997) |
Defined Benefit Plan, Amounts Recognized in Balance Sheet | $ (5,734) | $ (6,224) |
Pension Plans and Other Postr81
Pension Plans and Other Postretirement Benefit Plan Schedule of Net Periodic Benefit Cost Not yet Recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Tax | $ 2,141 | $ 0 | $ 0 |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Gains (Losses), before Tax | (37,317) | (42,120) | |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Prior Service Cost (Credit), before Tax | 0 | 0 | |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax | (37,317) | (42,120) | |
Other Postretirement Benefit Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Gains (Losses), before Tax | 6 | (583) | |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Prior Service Cost (Credit), before Tax | 44 | 92 | |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax | $ 50 | $ (491) |
Pension Plans and Other Postr82
Pension Plans and Other Postretirement Benefit Plan Schedule of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 85 | $ 3,054 | |
Interest cost | 4,956 | 6,986 | |
Other Postretirement Benefit Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 122 | 137 | |
Interest cost | 156 | 253 | |
Direct Operating Expenses And Selling General And Administrative Expenses [Member] | Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 85 | 3,054 | $ 6,495 |
Interest cost | 4,956 | 6,986 | 7,226 |
Expected return on plan assets | (2,383) | (2,960) | (3,228) |
Recognized actuarial loss | 1,365 | 1,039 | 2,050 |
Amortization of unrecognized prior service cost (credit) | 0 | 14 | 26 |
Net periodic benefit cost | 4,023 | 8,133 | 12,569 |
Direct Operating Expenses And Selling General And Administrative Expenses [Member] | Other Postretirement Benefit Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 122 | 137 | 198 |
Interest cost | 156 | 253 | 331 |
Expected return on plan assets | 0 | 0 | 0 |
Recognized actuarial loss | 0 | 0 | 0 |
Amortization of unrecognized prior service cost (credit) | (48) | (106) | (138) |
Net periodic benefit cost | $ 230 | $ 284 | $ 391 |
Pension Plans and Other Postr83
Pension Plans and Other Postretirement Benefit Plan Schedule of Net Periodic Benefit Cost (Narrative) (Details) - MSG Networks [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Employee [Member] | Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Net Periodic Benefit Cost | $ 520 | $ 2,080 |
Employee [Member] | Other Postretirement Benefit Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Net Periodic Benefit Cost | 18 | 104 |
Corporate Employee [Member] | Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Net Periodic Benefit Cost | 229 | 848 |
Corporate Employee [Member] | Other Postretirement Benefit Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Net Periodic Benefit Cost | $ 11 | $ 19 |
Pension Plans and Other Postr84
Pension Plans and Other Postretirement Benefit Plan Schedule of Amounts Recognized in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax | $ 5,344 | $ (8,292) | $ (4,200) |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Future Amortization of Gain (Loss) | 1,239 | ||
Other Postretirement Benefit Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Future Amortization of Gain (Loss) | 37 | ||
Other Comprehensive Income (Loss) [Member] | Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, before Tax | 3,438 | (8,532) | (6,993) |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss), Net Actuarial Gain (Loss), before Tax | 1,365 | 1,039 | 2,050 |
Other Comprehensive (Income) Loss, Amortization Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Prior Service Cost (Credit), before Tax | 0 | 14 | 26 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax | 4,803 | (7,479) | (4,917) |
Other Comprehensive Income (Loss) [Member] | Other Postretirement Benefit Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, before Tax | 589 | (707) | 855 |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss), Net Actuarial Gain (Loss), before Tax | 0 | 0 | 0 |
Other Comprehensive (Income) Loss, Amortization Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Prior Service Cost (Credit), before Tax | (48) | (106) | (138) |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax | $ 541 | $ (813) | $ 717 |
Pension Plans and Other Postr85
Pension Plans and Other Postretirement Benefit Plan Pension Plans Fund Status (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Pension Plans [Member] | ||
Schedule of Pension Plan Funded Status [Line Items] | ||
Defined Benefit Plan, Accumulated Benefit Obligation | $ 166,003 | $ 173,585 |
Pension Plans and Other Postr86
Pension Plans and Other Postretirement Benefit Plan Schedule of Assumptions Used (Details) | 12 Months Ended | ||||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | Jul. 01, 2016 | Jul. 01, 2015 | Jul. 01, 2014 | ||
Pension Plans [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.81% | 3.61% | |||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 4.46% | 4.32% | |||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 3.38% | 4.06% | 4.24% | ||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 3.00% | ||||||
Other Postretirement Benefit Plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.54% | 3.27% | |||||
Defined Benefit Plan, Health Care Cost Trend Rate Assumed for Next Fiscal Year | 7.25% | 7.25% | 7.25% | ||||
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 5.00% | 5.00% | 5.00% | ||||
Defined Benefit Plan, Year that Rate Reaches Ultimate Trend Rate | 2,027 | 2,026 | 2,026 | 2,021 | 2,020 | ||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 4.05% | 4.00% | |||||
Projected Benefit Obligations [Member] | Pension Plans [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | [1] | 3.61% | |||||
Projected Benefit Obligations [Member] | Other Postretirement Benefit Plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | [1] | 3.27% | |||||
Service Cost [Member] | Pension Plans [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | [1] | 3.74% | |||||
Service Cost [Member] | Other Postretirement Benefit Plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | [1] | 3.53% | |||||
Interest Cost [Member] | Pension Plans [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | [1] | 2.99% | |||||
Interest Cost [Member] | Other Postretirement Benefit Plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | [1] | 2.72% | |||||
[1] | Effective July 1, 2016, the Company changed the approach used to measure service and interest cost components of net periodic benefit costs for Pension Plans and Postretirement Plan. Previously, the Company measured service and interest costs utilizing a single weighted-average discount rate derived from the yield curve used to measure the plans’ obligations. Beginning fiscal year 2017, the Company elected to measure service and interest costs by applying the specific spot rates along that yield curve to the plans’ liability cash flows (“Spot Rate Approach”). The Company believes the Spot Rate Approach provides a more accurate measurement of service and interest costs by improving the correlation between projected benefit cash flows and their corresponding spot rates on the yield curve. This change does not affect the measurement of the plans’ obligations and it is accounted for as a change in accounting estimate, which is applied prospectively. |
Pension Plans and Other Postr87
Pension Plans and Other Postretirement Benefit Plan Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates (Details) - Other Postretirement Benefit Plan [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Effect of One Percentage Point Increase on Service and Interest Cost Components | $ 34 | $ 29 | $ 67 |
Defined Benefit Plan, Effect of One Percentage Point Increase on Accumulated Postretirement Benefit Obligation | 578 | 723 | |
Defined Benefit Plan, Effect of One Percentage Point Decrease on Service and Interest Cost Components | (30) | (27) | $ (58) |
Defined Benefit Plan, Effect of One Percentage Point Decrease on Accumulated Postretirement Benefit Obligation | $ (155) | $ (624) |
Pension Plans and Other Postr88
Pension Plans and Other Postretirement Benefit Plan Schedule of Allocation of Plan Assets (Details) | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | ||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Actual Plan Asset Allocations | [1] | 100.00% | 100.00% |
Fixed Income Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Actual Plan Asset Allocations | [1] | 83.00% | 85.00% |
Defined Benefit Plan, Target Plan Asset Allocations | 80.00% | ||
Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Actual Plan Asset Allocations | [1] | 17.00% | 15.00% |
Defined Benefit Plan, Target Plan Asset Allocations | 20.00% | ||
[1] | The Company’s target allocation for pension plan assets is 80% fixed income securities and 20% cash equivalents as of June 30, 2017. |
Pension Plans and Other Postr89
Pension Plans and Other Postretirement Benefit Plan Investment at Estimated Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 114,722 | $ 110,261 |
US Treasury Securities | Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 21,852 | 26,102 |
U.S. corporate bonds | Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 62,295 | 54,945 |
Foreign issued corporate bonds | Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 10,979 | 12,161 |
Municipal Bonds | Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 217 | 236 |
Money market accounts | Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 19,379 | $ 16,817 |
Pension Plans and Other Postr90
Pension Plans and Other Postretirement Benefit Plan Contributions for Qualified Defined Benefit Pension Plan (Narrative) (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2017USD ($) | |
Other Pension Plan - Cash Balance Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Employer Contributions | $ 11,000 |
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | 9,000 |
Other Pension Plan - Union Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Employer Contributions | 240 |
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $ 250 |
Pension Plans and Other Postr91
Pension Plans and Other Postretirement Benefit Plan Schedule of Expected Benefit Payments (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Pension Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months | $ 13,060 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Two | 8,960 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Three | 7,800 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Four | 7,280 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Five | 7,460 |
Defined Benefit Plan, Expected Future Benefit Payments, Five Fiscal Years Thereafter | 40,870 |
Other Postretirement Benefit Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months | 203 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Two | 249 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Three | 296 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Four | 359 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Five | 404 |
Defined Benefit Plan, Expected Future Benefit Payments, Five Fiscal Years Thereafter | $ 2,613 |
Pension Plans and Other Postr92
Pension Plans and Other Postretirement Benefit Plan Defined Contribution Plan (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Union Savings Plan [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Cost Recognized | $ 646 | $ 676 | $ 724 |
Savings Plans [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Cost Recognized | $ 8,374 | 4,191 | 3,080 |
Corporate Employee [Member] | MSG Networks [Member] | Savings Plans [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Cost Recognized | $ 89 | $ 317 |
Pension Plans and Other Postr93
Pension Plans and Other Postretirement Benefit Plan Schedule of Multiemployer Defined Benefit Pension Plans (Details) - Pension Plans [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Multiemployer Plans [Line Items] | |||
Multiemployer Plan, Period Contributions | $ 8,916 | $ 8,387 | $ 7,199 |
National Basketball Association Players' Pension Plan [Member] | |||
Multiemployer Plans [Line Items] | |||
Entity Tax Identification Number | 135,582,586 | ||
Multiemployer Plan Number | 3 | ||
Multiemployer Plans, Certified Zone Status | Yellow | Yellow | |
Multiemployer Plans, Certified Zone Status, Date | Feb. 1, 2016 | Feb. 1, 2015 | |
Multiemployer Plans, Collective-Bargaining Arrangement, Description | 6/2024 (with certain termination rights becoming effective 6/2023) | ||
Multiemployer Plans, Funding Improvement Plan and Rehabilitation Plan | Implemented | ||
Multiemployer Plan, Period Contributions | $ 1,830 | $ 1,814 | 1,853 |
Multiemployer Plans, Surcharge | No | ||
Pension Fund of Local No. 1 of I.A.T.S.E. [Member] | |||
Multiemployer Plans [Line Items] | |||
Entity Tax Identification Number | 136,414,973 | ||
Multiemployer Plan Number | 1 | ||
Multiemployer Plans, Certified Zone Status | Green | Green | |
Multiemployer Plans, Certified Zone Status, Date | Dec. 31, 2015 | Dec. 31, 2014 | |
Multiemployer Plans, Funding Improvement Plan and Rehabilitation Plan | No | ||
Multiemployer Plan, Period Contributions | $ 2,325 | $ 2,236 | 2,380 |
Multiemployer Plans, Surcharge | No | ||
Multiemployer Plans, Collective-Bargaining Arrangement, Expiration Date, First | Sep. 30, 2017 | ||
Multiemployer Plans, Collective-Bargaining Arrangement, Expiration Date, Last | May 1, 2018 | ||
National Hockey League Players' Retirement Benefit Plan [Member] | |||
Multiemployer Plans [Line Items] | |||
Entity Tax Identification Number | 462,555,356 | ||
Multiemployer Plan Number | 1 | ||
Multiemployer Plans, Certified Zone Status | Green | Green | |
Multiemployer Plans, Certified Zone Status, Date | Apr. 30, 2016 | Apr. 30, 2015 | |
Multiemployer Plans, Collective-Bargaining Arrangement, Description | 9/2022 (with certain termination rights becoming effective 6/2020) | ||
Multiemployer Plans, Funding Improvement Plan and Rehabilitation Plan | No | ||
Multiemployer Plan, Period Contributions | $ 1,364 | $ 1,311 | 1,359 |
Multiemployer Plans, Surcharge | No | ||
Multiemployer Plan, Individually Insignificant Multiemployer Plans [Member] | |||
Multiemployer Plans [Line Items] | |||
Multiemployer Plan, Period Contributions | $ 3,397 | $ 3,026 | $ 1,607 |
Pension Plans and Other Postr94
Pension Plans and Other Postretirement Benefit Plan Schedule of Plan Listed in Form 5500 providing more than 5 Percent of Total Contribution (Details) | 12 Months Ended |
Jun. 30, 2017 | |
Pension Fund of Local No. 1 of I.A.T.S.E. [Member] | |
Multiemployer Plans [Line Items] | |
Multiemployer Plans Year Contributions To Plan Exceeded More Than 5 Percent Of Total Contributions | December 31, 2015, 2014 and 2013 |
Pension Fund of Wardrobe Attendants Union Local 764 [Member] | |
Multiemployer Plans [Line Items] | |
Multiemployer Plans Year Contributions To Plan Exceeded More Than 5 Percent Of Total Contributions | December 31, 2015, 2014 and 2013 |
32BJ/Broadway League Pension Fund [Member] | |
Multiemployer Plans [Line Items] | |
Multiemployer Plans Year Contributions To Plan Exceeded More Than 5 Percent Of Total Contributions | December 31, 2015, 2014 and 2013 |
Pension Fund of Moving Picture Machine Operators Union of Greater New York, Local 306 [Member] | |
Multiemployer Plans [Line Items] | |
Multiemployer Plans Year Contributions To Plan Exceeded More Than 5 Percent Of Total Contributions | December 31, 2013 |
Treasurers and Ticket Sellers Local 751 Pension Fund [Member] | |
Multiemployer Plans [Line Items] | |
Multiemployer Plans Year Contributions To Plan Exceeded More Than 5 Percent Of Total Contributions | August 31, 2016 and 2015 |
Pension Plans and Other Postr95
Pension Plans and Other Postretirement Benefit Plan Multiemployer Defined Contribution Pension Plans and Multiemployer Plans That Provide Health and Welfare Benefits (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Postretirement Health Coverage [Member] | |||
Multiemployer Plans [Line Items] | |||
Multiemployer Plan, Period Contributions | $ 1,763 | $ 1,613 | $ 1,507 |
Pension Plans [Member] | |||
Multiemployer Plans [Line Items] | |||
Multiemployer Plan, Period Contributions | $ 7,409 | $ 6,786 | $ 6,986 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) shares in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2016shares | Sep. 30, 2015 | Jun. 30, 2017shares | Sep. 21, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
Class A Common Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Conversion Ratio in Distribution for Common Stock and Equity Awards | 0.3333 | |||
Class B Common Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Conversion Ratio in Distribution for Common Stock and Equity Awards | 0.3333 | |||
Employee Stock Option [Member] | Class A Common Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Exercise Price of Options Allocated, Percent | 74.36% | |||
Employee Stock Option [Member] | 2015 Employee Stock Plan [Member] | Class A Common Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 2,650 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||
Employee Stock Option [Member] | 2015 Stock Plan for Non-Employee Directors [Member] | Class A Common Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 160 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||
Employee Stock Option [Member] | MSG Networks [Member] | Class A Common Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Weighed Average Price Term | 10 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Exercise Price of Options Allocated, Percent | 25.64% | |||
Employee Stock Option [Member] | Expiration Triggered By The Death of the Grantee [Member] | 2015 Employee Stock Plan [Member] | Class A Common Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 1 year | |||
Employee Stock Option [Member] | Expiration Triggered By The Death of the Grantee [Member] | 2015 Stock Plan for Non-Employee Directors [Member] | Class A Common Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 1 year | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Conversion Ratio in Distribution for Common Stock and Equity Awards | 0.3333 | |||
Restricted Stock Units (RSUs) [Member] | Class A Common Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Weighed Average Price Term | 10 days | |||
Restricted Stock Units (RSUs) [Member] | 2015 Stock Plan for Non-Employee Directors [Member] | Class A Common Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Conversion Ratio in Distribution for Common Stock and Equity Awards | 0.3333 | |||
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
Performance Shares [Member] | Class A Common Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Weighed Average Price Term | 10 days | |||
In Connection with the Distribution [Member] | Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 26 | |||
In Connection with the Distribution [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity Instruments Other than Options, Grants in Period | 432 | |||
In Connection with the Distribution [Member] | Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity Instruments Other than Options, Grants in Period | 95 | |||
Shared Employees [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Percent of Value of Grants Allocated as Result of Distribution | 70.00% | |||
Shared Employees [Member] | Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Percent of Value of Grants Allocated as Result of Distribution | 70.00% |
Share-Based Compensation Schedu
Share-Based Compensation Schedule of Share-based Compensation Expense (Details) - Performance Stock Units and Restricted Stock Units [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Schedule of Share-based Compensation Expense [Line Items] | |||
Share-based Compensation Expense | $ 41,129 | $ 24,476 | $ 10,306 |
The Madison Square Garden Company [Member] | |||
Schedule of Share-based Compensation Expense [Line Items] | |||
Share-based Compensation Expense | 39,960 | 18,404 | |
MSG Networks [Member] | |||
Schedule of Share-based Compensation Expense [Line Items] | |||
Share-based Compensation Expense | 1,169 | $ 6,072 | $ 10,306 |
Employee [Member] | The Madison Square Garden Company [Member] | |||
Schedule of Share-based Compensation Expense [Line Items] | |||
Share-based Compensation, Compensation Cost Not yet Recognized | $ 54,476 | ||
Share-based Compensation, Compensation Cost Not yet Recognized, Period for Recognition | 2 years |
Schedule of Share-based Compens
Schedule of Share-based Compensation, Restricted Stock Units Award Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Unvested Share Units Awards [Roll Forward] | ||
Equity Instruments Other than Options, Vested in Period, Fair Value | $ 16,315 | $ 2,164 |
Shares Paid for Tax Withholding for Share Based Compensation | 34 | |
Payments Related to Tax Withholding for Share-based Compensation | $ 7,335 | $ 281 |
Restricted Stock Units (RSUs) [Member] | ||
Unvested Share Units Awards [Roll Forward] | ||
Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value Beginning Balance | $ 167.51 | |
Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 172.10 | $ 176.04 |
Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 145.61 | |
Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | 163.80 | |
Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value Ending Balance | $ 172.78 | $ 167.51 |
Payments Related to Tax Withholding for Share-based Compensation | $ 6,003 | |
Non-Performance Vesting [Member] | Restricted Stock Units (RSUs) [Member] | ||
Unvested Share Units Awards [Roll Forward] | ||
Equity Instruments Other than Options, Nonvested, Number, Beginning Balance | 172 | |
Equity Instruments Other than Options, Grants in Period | 124 | |
Equity Instruments Other than Options, Vested in Period | (70) | |
Equity Instruments Other than Options, Forfeited in Period | (18) | |
Equity Instruments Other than Options, Nonvested, Number, Ending Balance | 208 | 172 |
Performance Vesting [Member] | Restricted Stock Units (RSUs) [Member] | ||
Unvested Share Units Awards [Roll Forward] | ||
Equity Instruments Other than Options, Nonvested, Number, Beginning Balance | 313 | |
Equity Instruments Other than Options, Grants in Period | 181 | |
Equity Instruments Other than Options, Vested in Period | (24) | |
Equity Instruments Other than Options, Forfeited in Period | (6) | |
Equity Instruments Other than Options, Nonvested, Number, Ending Balance | 464 | 313 |
Stock Repurchase Program (Detai
Stock Repurchase Program (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Sep. 11, 2015 | |
Stock Repurchase Program [Abstract] | |||
Stock Repurchase Program, Authorized Amount | $ 525,000 | ||
Treasury Stock, Shares, Acquired | 827 | ||
Treasury Stock, Value, Acquired, Cost Method | $ 147,967 | $ 105,736 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 271,322 |
Related Party Transactions (Own
Related Party Transactions (Ownership Percentage) (Details) | Jun. 30, 2017 |
Related Party Ownership Percentage [Line Items] | |
Aggregate Voting Power Held By Related Party | 71.30% |
Class A Common Stock [Member] | |
Related Party Ownership Percentage [Line Items] | |
Percentage of Common Stock Owned by Related Party | 2.80% |
Class B Common Stock [Member] | |
Related Party Ownership Percentage [Line Items] | |
Percentage of Common Stock Owned by Related Party | 100.00% |
Related Party Transactions (Tra
Related Party Transactions (Transactions by Type) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Related Party Transaction [Line Items] | |||
Revenues | $ 150,534 | $ 153,538 | $ 88,051 |
Consulting fees | 3,943 | 3,444 | 0 |
Advertising expenses | 1,249 | 1,609 | 4,821 |
Other, net | 72 | 15 | 1,269 |
MSG Networks [Member] | |||
Related Party Transaction [Line Items] | |||
Revenues | 149,197 | 144,947 | 80,999 |
Corporate general and administrative, net | $ (9,832) | (38,122) | (56,999) |
Related Party Transaction, Expenses from Transactions with Related Party | 2,935 | ||
Affiliate, Cablevision [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Expenses from Transactions with Related Party | $ 5,651 | $ 3,205 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
MSG Networks [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Expenses from Transactions with Related Party | $ 2,935 | ||
Related party transaction, transition services agreement | $ 8,507 | $ 6,595 | |
Azoff MSG Entertainment LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Initial Direct Costs For Operating Leases | $ 5,000 |
Income Taxes Schedule of Compon
Income Taxes Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |||
Current Federal Tax Expense (Benefit) | $ 0 | $ 0 | $ 0 |
Current State and Local Tax Expense (Benefit) | 0 | 0 | 0 |
Current Income Tax Expense (Benefit) | 0 | 0 | 0 |
Deferred Federal Income Tax Expense (Benefit) | (3,382) | 325 | 288 |
Deferred State and Local Income Tax Expense (Benefit) | (1,022) | (28) | 148 |
Deferred Income Tax Expense (Benefit) | (4,404) | 297 | 436 |
Income Tax Expense (Benefit) | $ (4,404) | $ 297 | $ 436 |
Income Taxes Schedule of Effect
Income Taxes Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Income Tax Disclosure [Abstract] | ||||
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate | $ (28,418) | $ (26,948) | $ (14,087) | |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes | (6,716) | (6,843) | (3,334) | |
Effective Income Tax Rate Reconciliation, Change in Estimated Applicable Corporate Tax Rate Used to Determine Deferred Taxes | 672 | (192) | 699 | |
Effective Income Tax Rate Reconciliation, Nondeductible Disability Insurance Premiums Expense | 1,983 | 1,806 | 1,349 | |
Effective Income Tax Rate Reconciliation, Tax Effect On Earnings From Periods Prior To Spin-Off | 0 | 519 | 0 | |
Effective Income Tax Rate Reconciliation, Federal Tax Credits | (354) | (426) | (1,426) | |
Effective Income Tax Rate Reconciliation, Gains In Other Comprehensive Income | (6,477) | |||
Effective Income Tax Rate Reconciliation, Noncontrolling Interest Income (Loss) | 1,414 | |||
Effective Income Tax Rate Reconciliation, Amortization On Indefinite-lived Intangible | 1,329 | |||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance | 30,697 | 31,301 | [1] | 16,260 |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Other | 1,466 | 1,080 | 975 | |
Income Tax Expense (Benefit) | $ (4,404) | 297 | $ 436 | |
Deferred Tax Assets, Deferred Income | $ 348,000 | |||
[1] | For the year ended June 30, 2016, the valuation allowance reflects an increase on the Company’s net deferred tax asset related to fiscal year 2016 activity from the time of the Distribution. As part of the Distribution, MSG Networks is responsible for paying taxes on approximately $348,000 of deferred revenue from ticket sales, sponsorship and suite rentals collected in advance related to the Company’s business. This initially created a deferred tax asset on which the Company recorded a full valuation allowance at the time of the Distribution as it was more likely than not that the deferred tax asset would not be realized. |
Income Taxes Schedule of Deferr
Income Taxes Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Operating Loss Carryforwards [Line Items] | ||
Deferred Tax Assets, Operating Loss Carryforwards | $ 104,648 | $ 109,074 |
Deferred Tax Assets, Tax Credit Carryforwards | 706 | 426 |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Employee Benefits | 84,809 | 92,799 |
Deferred Tax Assets, Tax Deferred Expense, Other | 25,672 | 32,605 |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost | 28,937 | 15,556 |
Deferred Tax Assets Deferred Production Costs | 2,843 | |
Deferred Tax Assets, Other | 8,774 | 9,263 |
Deferred Tax Assets, Gross | 256,389 | 259,723 |
Deferred Tax Assets, Valuation Allowance | (218,639) | (190,602) |
Deferred Tax Assets, Net of Valuation Allowance | 37,750 | 69,121 |
Deferred Tax Liabilities, Goodwill and Intangible Assets | (198,786) | (199,308) |
Deferred Tax Liabilities, Property, Plant and Equipment | (17,162) | (25,364) |
Deferred Tax Liabilities, Deferred Production Costs | 0 | (4,898) |
Deferred Tax Liabilities, Prepaid Expenses | (7,782) | (9,248) |
Deferred Tax Liabilities, Investments | (10,456) | (24,886) |
Deferred Tax Liabilities, Gross | (234,186) | (263,704) |
Deferred Tax Liabilities, Net | $ (196,436) | (194,583) |
Operating Loss Carryforwards Expiration Year | 2,036 | |
Unrecognized Tax Benefits | $ 0 | $ 0 |
Federal Tax Authority [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | 222,205 | |
State and Local Jurisdiction [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | $ 267,859 |
Segment Information Segment Inf
Segment Information Segment Information (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Jun. 30, 2017segments | Jun. 30, 2016USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of Reportable Segments | segments | 2 | |
Operating Income (Loss) [Member] | Operating Segments [Member] | Madison Square Garden Sports [Member] | ||
Segment Reporting Information [Line Items] | ||
Increase (Decrease) Due To Change In Corporate Allocation To The Segments | $ 6,045 | |
Operating Income (Loss) [Member] | Operating Segments [Member] | Madison Square Garden Entertainment [Member] | ||
Segment Reporting Information [Line Items] | ||
Increase (Decrease) Due To Change In Corporate Allocation To The Segments | 337 | |
Operating Income (Loss) [Member] | Corporate, Non-Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Increase (Decrease) Due To Change In Corporate Allocation To The Segments | (6,382) | |
Adjusted Operating Income (Loss) [Member] | Operating Segments [Member] | Madison Square Garden Sports [Member] | ||
Segment Reporting Information [Line Items] | ||
Increase (Decrease) Due To Change In Corporate Allocation To The Segments | 5,908 | |
Adjusted Operating Income (Loss) [Member] | Operating Segments [Member] | Madison Square Garden Entertainment [Member] | ||
Segment Reporting Information [Line Items] | ||
Increase (Decrease) Due To Change In Corporate Allocation To The Segments | 2,680 | |
Adjusted Operating Income (Loss) [Member] | Corporate, Non-Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Increase (Decrease) Due To Change In Corporate Allocation To The Segments | $ (8,588) |
Segment Information (Schedule o
Segment Information (Schedule of Segment Reporting Information by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | $ 305,574 | $ 386,033 | $ 445,150 | $ 181,695 | $ 217,764 | $ 336,328 | $ 410,838 | $ 150,381 | $ 1,318,452 | [1] | $ 1,115,311 | [1] | $ 1,071,551 | [1] | |
Direct operating expenses (b) | [2] | 861,381 | 737,857 | 724,881 | |||||||||||
Selling, general and administrative expenses (c) | [3] | 410,039 | 333,603 | 238,318 | |||||||||||
Depreciation and amortization | 107,388 | 102,482 | 108,758 | ||||||||||||
Operating income (loss) | (92,470) | 6,706 | 58,251 | (32,843) | (46,157) | (56,936) | 49,039 | (4,577) | (60,356) | (58,631) | (406) | ||||
Loss in equity method investments | (29,976) | (19,099) | (40,590) | ||||||||||||
Interest income | [4] | 11,836 | 6,782 | 3,056 | |||||||||||
Interest expense | (4,189) | (2,028) | (2,498) | ||||||||||||
Miscellaneous income (expense) | 1,492 | [5] | (4,017) | [5] | 190 | ||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (81,193) | (76,993) | (40,248) | ||||||||||||
Reconciliation of operating income (loss) to adjusted operating income (loss): | |||||||||||||||
Operating income (loss) | $ (92,470) | $ 6,706 | $ 58,251 | $ (32,843) | $ (46,157) | $ (56,936) | $ 49,039 | $ (4,577) | (60,356) | (58,631) | (406) | ||||
Share-based compensation expense | 41,129 | 24,476 | 10,306 | ||||||||||||
Depreciation and amortization | 107,388 | 102,482 | 108,758 | ||||||||||||
Amortization of Purchase Price Accounting Adjustments | 9,466 | ||||||||||||||
Adjusted operating income (loss) | 97,627 | 68,327 | 118,658 | ||||||||||||
Other Information: | |||||||||||||||
Capital expenditures | 44,224 | 71,716 | 64,083 | ||||||||||||
Write-off of deferred production costs | 33,629 | 41,816 | 0 | ||||||||||||
Operating Segments [Member] | Madison Square Garden Entertainment [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | 506,468 | 415,390 | 414,161 | ||||||||||||
Direct operating expenses (b) | 378,325 | [6] | 341,637 | [6] | 307,373 | ||||||||||
Selling, general and administrative expenses (c) | 120,496 | 96,204 | 69,215 | ||||||||||||
Depreciation and amortization | 11,339 | 9,884 | 10,321 | ||||||||||||
Operating income (loss) | (3,692) | (32,335) | 27,252 | ||||||||||||
Reconciliation of operating income (loss) to adjusted operating income (loss): | |||||||||||||||
Operating income (loss) | (3,692) | (32,335) | 27,252 | ||||||||||||
Share-based compensation expense | 14,323 | 7,870 | 3,616 | ||||||||||||
Depreciation and amortization | 11,339 | 9,884 | 10,321 | ||||||||||||
Adjusted operating income (loss) | 21,970 | (14,581) | 41,189 | ||||||||||||
Other Information: | |||||||||||||||
Capital expenditures | 11,460 | 4,974 | 5,665 | ||||||||||||
Operating Segments [Member] | Madison Square Garden Sports [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | 811,984 | 699,062 | 656,683 | ||||||||||||
Direct operating expenses (b) | 473,590 | 396,220 | 417,508 | ||||||||||||
Selling, general and administrative expenses (c) | 209,941 | 182,131 | 144,770 | ||||||||||||
Depreciation and amortization | 9,319 | 10,957 | 19,089 | ||||||||||||
Operating income (loss) | 119,134 | 109,754 | 75,316 | ||||||||||||
Reconciliation of operating income (loss) to adjusted operating income (loss): | |||||||||||||||
Operating income (loss) | 119,134 | 109,754 | 75,316 | ||||||||||||
Share-based compensation expense | 14,548 | 10,316 | 3,601 | ||||||||||||
Depreciation and amortization | 9,319 | 10,957 | 19,089 | ||||||||||||
Adjusted operating income (loss) | 143,001 | 131,027 | 98,006 | ||||||||||||
Other Information: | |||||||||||||||
Capital expenditures | 2,393 | 4,578 | 4,513 | ||||||||||||
Corporate, Non-Segment [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | 0 | 859 | 707 | ||||||||||||
Direct operating expenses (b) | 0 | 0 | 0 | ||||||||||||
Selling, general and administrative expenses (c) | [7] | 79,602 | 55,268 | 24,333 | |||||||||||
Depreciation and amortization | [8] | 83,578 | 81,641 | 79,348 | |||||||||||
Operating income (loss) | (163,180) | (136,050) | (102,974) | ||||||||||||
Reconciliation of operating income (loss) to adjusted operating income (loss): | |||||||||||||||
Operating income (loss) | (163,180) | (136,050) | (102,974) | ||||||||||||
Share-based compensation expense | 12,258 | 6,290 | 3,089 | [9] | |||||||||||
Depreciation and amortization | [8] | 83,578 | 81,641 | 79,348 | |||||||||||
Adjusted operating income (loss) | (67,344) | (48,119) | (20,537) | ||||||||||||
Other Information: | |||||||||||||||
Capital expenditures | [10] | 30,371 | 62,164 | $ 53,905 | |||||||||||
Severance Costs | 6,900 | ||||||||||||||
Segment Reconciling Items (Purchase Accounting Adjustments) [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Direct operating expenses (b) | 9,466 | ||||||||||||||
Depreciation and amortization | 3,152 | ||||||||||||||
Operating income (loss) | (12,618) | ||||||||||||||
Reconciliation of operating income (loss) to adjusted operating income (loss): | |||||||||||||||
Operating income (loss) | (12,618) | ||||||||||||||
Share-based compensation expense | 0 | ||||||||||||||
Depreciation and amortization | 3,152 | ||||||||||||||
Amortization of Purchase Price Accounting Adjustments | 9,466 | ||||||||||||||
Adjusted operating income (loss) | 0 | ||||||||||||||
Other Information: | |||||||||||||||
Capital expenditures | 0 | ||||||||||||||
New York Spectacular [Member] | Madison Square Garden Entertainment [Member] | |||||||||||||||
Other Information: | |||||||||||||||
Write-off of deferred production costs | $ 33,629 | $ 41,816 | |||||||||||||
[1] | Include revenues from related parties of $150,534, $153,538 and $88,051 for the years ended June 30, 2017, 2016 and 2015, respectively. | ||||||||||||||
[2] | Include net charges from related parties of $1,284, $1,133 and $1,670 for the years ended June 30, 2017, 2016 and 2015, respectively. | ||||||||||||||
[3] | Include net charges to related parties of $(5,852), $(28,536) and $(49,374) for the years ended June 30, 2017, 2016 and 2015, respectively. | ||||||||||||||
[4] | Interest income includes interest income from nonconsolidated affiliates of $4,157, $2,930 and $1,886 for the years ended June 30, 2017, 2016 and 2015, respectively. In addition, interest income includes interest income from MSG Networks of $307 and $1,153 for the years ended June 30, 2016 and 2015, respectively. | ||||||||||||||
[5] | Miscellaneous income for the year ended June 30, 2017 consists principally of the recovery of certain claims in connection with a third-party bankruptcy proceeding. Miscellaneous expenses for the year ended June 30, 2016 primarily include partial write-down of one of the Company’s cost method investments (see Note 5) | ||||||||||||||
[6] | MSG Entertainment’s direct operating expenses for the years ended June 30, 2017 and 2016 include $33,629 and $41,816, respectively, of write-offs of deferred production costs associated with the New York Spectacular production (see Note 2). | ||||||||||||||
[7] | onsists of unallocated corporate general and administrative costs. The amount for the year ended June 30, 2016 include approximately $6,900 of reorganization costs which primarily consists of severance and related benefits. Such costs were paid during fiscal year 2017. | ||||||||||||||
[8] | rincipally includes depreciation and amortization expense on The Garden, The Theater at Madison Square Garden, the Forum, and certain corporate property, equipment and leasehold improvement assets not allocated to the Company’s reportable segments. | ||||||||||||||
[9] | The amount for the year ended June 30, 2015 include executive management transition costs. | ||||||||||||||
[10] | apital expenditures for the year ended June 30, 2016 are primarily associated with the purchase of a new aircraft, as well as certain investments with respect to The Garden. Corporate and Other’s capital expenditures for the year ended June 30, 2015 is primarily associated with certain investments with respect to The Garden and the Forum. |
Segment Information (Schedul108
Segment Information (Schedule of Revenue from External Customers by Products and Services) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |||||
Revenue from External Customer [Line Items] | |||||||||||||||
Revenues | $ 305,574 | $ 386,033 | $ 445,150 | $ 181,695 | $ 217,764 | $ 336,328 | $ 410,838 | $ 150,381 | $ 1,318,452 | [1] | $ 1,115,311 | [1] | $ 1,071,551 | [1] | |
Event-related Revenue [Member] | |||||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||||
Revenues | [2] | 908,941 | 834,213 | 816,300 | |||||||||||
Media Rights Revenues [Member] | |||||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||||
Revenues | [3] | 220,021 | 179,816 | 129,081 | |||||||||||
Advertising Sales Commission & Sponsorship & Signage Revenues [Member] | |||||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||||
Revenues | [4] | 74,685 | 68,661 | 50,451 | |||||||||||
All Other Revenues [Member] | |||||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||||
Revenues | [5] | $ 114,805 | $ 32,621 | $ 75,719 | |||||||||||
[1] | Include revenues from related parties of $150,534, $153,538 and $88,051 for the years ended June 30, 2017, 2016 and 2015, respectively. | ||||||||||||||
[2] | Primarily consists of professional sports teams’, entertainment and other live sporting events revenues. These amounts include (i) ticket sales, (ii) other ticket-related revenue, (iii) food, beverage and merchandise sales, (iv) venue license fees, and (v) event-related sponsorship and signage revenues. | ||||||||||||||
[3] | Primarily consists of telecast rights fees from MSG Networks and the Company’s share of league distributions. | ||||||||||||||
[4] | Amounts exclude event-related sponsorship and signage revenues. | ||||||||||||||
[5] | Primarily consists of (i) playoff revenue, which includes ticket sales, food, beverage and merchandise sales, and suite rental fees, (ii) nonevent-related food and beverage revenues and (iii) other non-media rights related league distributions. |
Schedules of Concentration of R
Schedules of Concentration of Risk, by Risk Factor (Details) - Accounts Receivable [Member] - Credit Concentration Risk [Member] | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | ||
Customer A [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 11.00% | [1] | 1.00% |
Customer B [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 10.00% | 14.00% | |
[1] | A receivable from Customer A as of June 30, 2017 is primarily associated with a nonrecurring transaction. |
Concentration of Risk (Narrativ
Concentration of Risk (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Concentration Risk [Line Items] | |||
Revenues from related party | $ 150,534 | $ 153,538 | $ 88,051 |
Concentration Risk, Labor Subject to Collective Bargaining Arrangements | 6,500 | ||
Workforce Subject to Collective Bargaining Arrangements [Member] | Unionized Employees Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 50.00% | ||
Workforce Subject to Collective Bargaining Arrangements Expiring within One Year [Member] | Unionized Employees Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 23.00% | ||
Non-affiliated customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Customer | The Company did not have a single non-affiliated customer that represented 10% or more of its consolidated revenues | ||
MSG Networks [Member] | |||
Concentration Risk [Line Items] | |||
Revenues from related party | $ 149,197 | $ 144,947 | $ 80,999 |
MSG Networks [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 11.00% | 13.00% | 8.00% |
Already Expired As of The Current Year End [Member] | Workforce Subject to Collective Bargaining Arrangements [Member] | Unionized Employees Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 34.00% |
Interim Financial Information Q
Interim Financial Information Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | ||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||
Revenues | $ 305,574 | $ 386,033 | $ 445,150 | $ 181,695 | $ 217,764 | $ 336,328 | $ 410,838 | $ 150,381 | $ 1,318,452 | [1] | $ 1,115,311 | [1] | $ 1,071,551 | [1] |
Operating expenses | 398,044 | 379,327 | 386,899 | 214,538 | 263,921 | 393,264 | 361,799 | 154,958 | 1,378,808 | 1,173,942 | ||||
Operating income (loss) | (92,470) | 6,706 | 58,251 | (32,843) | (46,157) | (56,936) | 49,039 | (4,577) | (60,356) | (58,631) | (406) | |||
Net income (loss) | (87,453) | (17,843) | 57,421 | (28,914) | (58,419) | (60,756) | 43,488 | (1,603) | (76,789) | (77,290) | (40,684) | |||
Net income (loss) attributable to The Madison Square Garden Company's stockholders | $ (84,278) | $ (17,545) | $ 57,726 | $ (28,626) | $ (58,419) | $ (60,756) | $ 43,488 | $ (1,603) | $ (72,723) | $ (77,290) | $ (40,684) | |||
Basic earnings (loss) per common share attributable to The Madison Square Garden Company's stockholders | $ (3.58) | $ (0.74) | $ 2.41 | $ (1.19) | $ (2.39) | $ (2.47) | $ 1.74 | $ (0.06) | $ (3.05) | $ (3.12) | $ (1.63) | |||
Diluted earnings (loss) per common share attributable to The Madison Square Garden Company's stockholders | $ (3.58) | $ (0.74) | $ 2.39 | $ (1.19) | $ (2.39) | $ (2.47) | $ 1.74 | $ (0.06) | $ (3.05) | $ (3.12) | $ (1.63) | |||
[1] | Include revenues from related parties of $150,534, $153,538 and $88,051 for the years ended June 30, 2017, 2016 and 2015, respectively. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |||||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||||||
Balance at Beginning of Period | $ (191,884) | $ (171,803) | $ (182,915) | ||||
(Additions) Deductions Charged to Cost and Expense | (30,808) | (31,332) | (16,318) | ||||
(Additions) Deductions Charged to Other Accounts | 0 | (914) | 0 | ||||
Deductions | 3,452 | 12,165 | 27,430 | ||||
Balance at End of Period | (219,240) | (191,884) | (171,803) | ||||
Allowance for Doubtful Accounts [Member] | |||||||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||||||
Balance at Beginning of Period | (1,282) | (467) | (537) | ||||
(Additions) Deductions Charged to Cost and Expense | (111) | (31) | (58) | ||||
(Additions) Deductions Charged to Other Accounts | 0 | (914) | [1] | 0 | |||
Deductions | 792 | 130 | 128 | ||||
Balance at End of Period | (601) | (1,282) | (467) | ||||
Valuation Allowance of Deferred Tax Assets [Member] | |||||||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||||||
Balance at Beginning of Period | (190,602) | (171,336) | (182,378) | ||||
(Additions) Deductions Charged to Cost and Expense | (30,697) | (31,301) | (16,260) | ||||
(Additions) Deductions Charged to Other Accounts | 0 | 0 | 0 | ||||
Deductions | 2,660 | [2] | 12,035 | [3] | 27,302 | [4] | |
Balance at End of Period | $ (218,639) | (190,602) | (171,336) | ||||
Fuse Media, LLC [Member] | |||||||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||||||
Decrease in valuation allowance for deferred tax asset from equity investment transfer from the parent | 29,189 | ||||||
Reclassification of Valuation Allowance for Deferred Tax Assets to Accumulated Other Comprehensive Income | $ 1,887 | ||||||
Pre Spin Off Activities [Member] | Valuation Allowance of Deferred Tax Assets [Member] | |||||||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||||||
Deductions | [3] | 15,613 | |||||
Pre Spin Off Activities [Member] | Related to Accumulated Other Comprehensive Income (Loss) [Member] | |||||||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||||||
Deductions | [3] | $ 3,578 | |||||
[1] | The increase was primarily due to a balance transfer made in connection with the Distribution. | ||||||
[2] | Net decrease in valuation allowance is primarily due to the effect in the accumulated other comprehensive income. | ||||||
[3] | Net decrease in valuation allowance represents $15,613 for pre-Distribution activity partially offset by $3,578 recorded to accumulated other comprehensive income. | ||||||
[4] | Net decrease in valuation allowance represents $29,189 for the transfer of an equity interest in Fuse Media, LLC from MSG Networks to the Company that has a different basis for financial reporting and tax purposes, partially offset by $1,887 recorded to accumulated other comprehensive income. |