Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Jun. 30, 2020 | Jul. 31, 2020 | Dec. 31, 2019 | |
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jun. 30, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 1-36900 | ||
Entity Registrant Name | MADISON SQUARE GARDEN SPORTS CORP. | ||
Entity Incorporation, State or Country Code | DE | ||
EIN | 47-3373056 | ||
Entity Address, Street Address | Two Penn Plaza | ||
Entity Address, City | New York | ||
Entity Address, State | NY | ||
Entity Address, Postal Zip Code | 10121 | ||
City Area Code | 212 | ||
Local Phone Number | 465-1111 | ||
Title of each class | Class A Common Stock | ||
Trading Symbol(s) | MSGS | ||
Name of each exchange on which registered | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 5.5 | ||
Entity Central Index Key | 0001636519 | ||
Current Fiscal Year End Date | --06-30 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Documents Incorporated by Reference | Documents incorporated by reference — Certain information required for Part III of this report is incorporated herein by reference to the proxy statement for the 2020 annual meeting of the Company’s shareholders, expected to be filed within 120 days after the close of our fiscal year. | ||
Class A Common Stock | |||
Entity Common Stock, Shares Outstanding | 19,468,921 | ||
Class B Common Stock | |||
Entity Common Stock, Shares Outstanding | 4,529,517 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Jun. 30, 2019 | |
Current Assets: | |||
Cash and cash equivalents | $ 77,852 | $ 4,317 | |
Restricted cash | [1] | 12,821 | 21,519 |
Accounts receivable, net | 7,403 | 15,542 | |
Net related party receivables | 135 | 0 | |
Prepaid expenses | 20,634 | 21,409 | |
Other current assets | 9,433 | 6,371 | |
Current assets of discontinued operations | 0 | 1,344,190 | |
Total current assets | 128,278 | 1,413,348 | |
Property and equipment, net | 39,597 | 31,270 | |
Right-of-use lease assets | 718,051 | ||
Amortizable intangible assets, net | 2,754 | 6,315 | |
Indefinite-lived intangible assets | 112,144 | 112,144 | |
Goodwill | 226,955 | 226,955 | |
Other assets | 6,019 | 5,891 | |
Non-current assets of discontinued operations | 0 | 1,967,867 | |
Total assets | 1,233,798 | 3,763,790 | |
Current Liabilities: | |||
Accounts payable | 2,301 | 1,035 | |
Net related party payables | 17,952 | 209 | |
Accrued liabilities: | |||
Employee related costs | 71,451 | 77,514 | |
Other accrued liabilities | 33,071 | 123,688 | |
Operating lease liabilities, current | 39,131 | ||
Deferred revenue | 126,348 | 110,264 | |
Current liabilities of discontinued operations | 0 | 447,313 | |
Total current liabilities | 290,254 | 760,023 | |
Related party payables, noncurrent | 0 | 172 | |
Long-term debt | 350,000 | 0 | |
Operating lease liabilities, noncurrent | 679,053 | ||
Defined benefit obligations | 7,014 | 7,049 | |
Other employee related costs | 50,027 | 48,274 | |
Deferred tax liabilities, net | 57,721 | 36,449 | |
Other liabilities | 3,164 | 6,696 | |
Non-current liabilities of discontinued operations | 0 | 198,740 | |
Total liabilities | 1,437,233 | 1,057,403 | |
Commitments and contingencies (see Note 12) | |||
Redeemable noncontrolling interests of discontinued operations | 0 | 67,627 | |
Madison Square Garden Sports Corp. Stockholders’ Equity: | |||
Preferred stock, par value $0.01, 15,000 shares authorized; none outstanding as of June 30, 2020 and 2019 | 0 | 0 | |
Additional paid-in capital | 5,940 | 2,845,961 | |
Treasury stock, at cost, 982 and 1,219 shares as of June 30, 2020 and 2019, respectively | (167,431) | (207,790) | |
Retained earnings (accumulated deficit) | (43,605) | 29,003 | |
Accumulated other comprehensive income (loss) | (2,139) | (46,923) | |
Total Madison Square Garden Sports Corp. stockholders’ equity | (206,986) | 2,620,500 | |
Nonredeemable noncontrolling interests | 3,551 | 18,260 | |
Total equity | (203,435) | 2,638,760 | |
Total liabilities, redeemable noncontrolling interests and equity | 1,233,798 | 3,763,790 | |
Class A Common Stock | |||
Madison Square Garden Sports Corp. Stockholders’ Equity: | |||
Common stock, value issued | 204 | 204 | |
Class B Common Stock | |||
Madison Square Garden Sports Corp. Stockholders’ Equity: | |||
Common stock, value issued | $ 45 | $ 45 | |
[1] | See Note 2 for more information regarding the nature of restricted cash. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2020 | Jun. 30, 2019 |
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 | 982,000 | 1,219,000 |
Class A Common Stock | ||
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 | 19,466,000 | 19,229,000 |
Class B Common Stock | ||
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 Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Income Statement [Abstract] | ||||
Revenues | [1] | $ 603,319 | $ 729,404 | $ 712,415 |
Operating expenses: | ||||
Direct operating expenses | [2] | 359,970 | 440,081 | 419,069 |
Selling, general and administrative expenses | [3] | 319,675 | 327,441 | 290,718 |
Depreciation and amortization | 17,540 | 20,077 | 20,807 | |
Operating loss | (93,866) | (58,195) | (18,179) | |
Other income (expense): | ||||
Interest income | 700 | 1,191 | 901 | |
Interest expense | (4,461) | (4,970) | (3,492) | |
Miscellaneous income (expense), net | (421) | 1,333 | (518) | |
Other income (expense) | (4,182) | (2,446) | (3,109) | |
Loss from continuing operations before income taxes | (98,048) | (60,641) | (21,288) | |
Income tax benefit (expense) | (20,593) | 12,619 | 59,392 | |
Income (loss) from continuing operations | (118,641) | (48,022) | 38,104 | |
Income (loss) from discontinued operations, net of taxes | (90,222) | 44,905 | 96,344 | |
Net income (loss) | (208,863) | (3,117) | 134,448 | |
Less: Net loss attributable to nonredeemable noncontrolling interests from continuing operations | (2,342) | (2,300) | (2,136) | |
Less: Net loss attributable to redeemable noncontrolling interests | (24,013) | (7,299) | (628) | |
Less: Net loss attributable to nonredeemable noncontrolling interests | (120) | (4,945) | (4,382) | |
Net income (loss) attributable to Madison Square Garden Sports Corp.’s stockholders | $ (182,388) | $ 11,427 | $ 141,594 | |
Basic earnings (loss) per share, continuing operations (USD per share) | $ (4.86) | $ (1.92) | $ 1.70 | |
Basic earnings (loss) per share, discontinued operations (USD per share) | (2.76) | 2.40 | 4.29 | |
Basic earnings (loss) per common share attributable to Madison Square Garden Sports Corp.’s stockholders (USD per share) | (7.62) | 0.48 | 5.99 | |
Diluted earnings (loss) per share, continuing operations (USD per share) | (4.86) | (1.91) | 1.69 | |
Diluted earnings (loss) per share, discontinued operations (USD per share) | (2.76) | 2.39 | 4.25 | |
Diluted earnings (loss) per common share attributable to Madison Square Garden Sports Corp.’s stockholders (USD per share) | $ (7.62) | $ 0.48 | $ 5.94 | |
Weighted-average number of common shares outstanding: | ||||
Basic (shares) | 23,942 | 23,767 | 23,639 | |
Diluted (shares) | 23,942 | 23,900 | 23,846 | |
[1] | Include revenues from related parties of $138,881 , $148,207 and $142,319 for the years ended June 30, 2020 , 2019 and 2018 , respectively. | |||
[2] | Include net charges to related parties of $77 , $311 and $310 for the years ended June 30, 2020 , 2019 and 2018 , respectively. | |||
[3] | Include net charges from (to) related parties of $3,380 , $(10,744) and $(9,884) for the years ended June 30, 2020 , 2019 and 2018 , respectively. |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | |||
Revenues from related party | $ 138,881 | $ 148,207 | $ 142,319 |
Direct operating net charges from related party | 77 | 311 | 310 |
Selling, general and administrative expenses (net charges) to related party | $ 3,380 | $ (10,744) | $ (9,884) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (208,863) | $ (3,117) | $ 134,448 |
Pension plans and postretirement plan: | |||
Net unamortized gains (losses) arising during the period | (321) | (2,565) | (3,415) |
Amounts reclassified from accumulated other comprehensive loss: | |||
Amortization of net actuarial loss included in net periodic benefit cost | 935 | 1,286 | 1,319 |
Amortization of net prior service credit included in net periodic benefit cost | 0 | (7) | (37) |
Settlement loss | 67 | 52 | 87 |
Total recognized in other comprehensive income (loss) | 681 | (1,234) | (2,046) |
Cumulative translation adjustments | (4,809) | (4,341) | (502) |
Net changes related to available-for-sale securities | 0 | 0 | (12,095) |
Other comprehensive loss, before income taxes | (4,128) | (5,575) | (14,643) |
Income tax benefit (expense) related to items of other comprehensive loss | 0 | 0 | 0 |
Other comprehensive loss, net of income taxes | (4,128) | (5,575) | (14,643) |
Comprehensive income (loss) | (212,991) | (8,692) | 119,805 |
Less: Comprehensive loss attributable to nonredeemable noncontrolling interests from continuing operations | (2,342) | (2,300) | (2,136) |
Less: Comprehensive loss attributable to nonredeemable noncontrolling interests from discontinued operations | (24,013) | (7,299) | (628) |
Less: Net loss attributable to redeemable noncontrolling interests | (120) | (4,945) | (4,382) |
Comprehensive income (loss) attributable to Madison Square Garden Sports Corp.’s stockholders | $ (186,516) | $ 5,852 | $ 126,951 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | |
Cash flows from operating activities: | |||
Net income (loss) | $ (208,863) | $ (3,117) | $ 134,448 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 93,362 | 119,193 | 122,486 |
Impairment of intangibles, long-lived assets, and goodwill | 102,211 | 0 | 0 |
Share-based compensation expense | 56,996 | 59,474 | 47,563 |
(Earnings) loss in equity method investments, net of income distributions | 3,901 | (6,312) | 7,770 |
Provision for (benefit from) deferred income taxes | (8,033) | 150 | (117,311) |
Purchase accounting adjustments associated with rent-related intangibles and deferred rent | 4,621 | 4,240 | 4,628 |
Unrealized loss on equity investment with readily determinable fair value | 3,562 | 3,496 | 0 |
Provision for doubtful accounts | 7,170 | 1,426 | 647 |
Loss on extinguishment of debt including deferred financing costs | 0 | 3,977 | 0 |
Other non-cash adjustments | 469 | (1,322) | (686) |
Change in assets and liabilities, net of acquisitions: | |||
Accounts receivable, net | (36,758) | 2,734 | 2,435 |
Net related party receivables | (1,611) | (916) | 2,147 |
Prepaid expenses and other assets | (60,774) | (26,080) | 16,371 |
Accounts payable | (5,656) | (3,930) | 5,067 |
Net related party payables | 22,589 | 5,545 | (3,901) |
Accrued and other liabilities | (42,974) | 23,716 | (28,424) |
Collections due to promoters | 15,924 | (22,301) | 17,113 |
Deferred revenue | 60,584 | 1,280 | 7,276 |
Operating lease right-of-use assets and lease liabilities | (3,152) | 0 | 0 |
Net cash provided by operating activities | 3,568 | 161,253 | 217,629 |
Cash flows from investing activities: | |||
Capital expenditures, net of acquisitions | (362,475) | (188,834) | (191,914) |
Proceeds from insurance recoveries | 476 | 0 | 0 |
Payments for acquisition of assets | (1,000) | 0 | 0 |
Purchase of short-term investments | (405,935) | (112,693) | 0 |
Proceeds from maturity of short-term investments | 176,661 | 0 | 0 |
Payments for acquisition of businesses, net of cash acquired | 0 | 0 | (8,288) |
Payments for acquisition of assets | 0 | 0 | (6,000) |
Investments and loans to nonconsolidated affiliates | (75) | (52,707) | (11,255) |
Proceeds from sales of nonconsolidated affiliates | 18,000 | 125,750 | 0 |
Loan repayments received from nonconsolidated affiliates | 0 | 0 | 36,600 |
Loan repayment received from subordinated debt | 58,735 | 4,765 | 0 |
Cash received / (paid) for notes receivable | 750 | (9,176) | (1,500) |
Net cash used in investing activities | (514,863) | (232,895) | (182,357) |
Cash flows from financing activities: | |||
Repurchases of common stock | 0 | 0 | (11,830) |
Cash distributed with MSG Entertainment | (827,076) | 0 | 0 |
Taxes paid in lieu of shares issued for equity-based compensation | (26,777) | (19,525) | (34,393) |
Noncontrolling interest capital contributions | 4,000 | 6,310 | 4,000 |
Distributions to noncontrolling interest holders | (535) | (2,186) | (4,124) |
Loans from noncontrolling interest holders | 0 | 606 | 0 |
Payment of contingent consideration | (200) | 0 | (4,000) |
Proceeds from loan facility | 0 | 40,000 | 0 |
Proceeds from revolving credit facility | 0 | 15,000 | 0 |
Proceeds from revolving credit facility | 350,000 | 0 | 0 |
Repayment of revolving credit facility | (15,000) | 0 | 0 |
Repayment on long-term debt | (5,000) | (109,312) | (688) |
Payments for extinguishment of debt | 0 | (1,151) | 0 |
Payments for financing costs | 0 | (1,488) | (62) |
Net cash used in financing activities | (520,588) | (71,746) | (51,097) |
Effect of exchange rates on cash, cash equivalents and restricted cash | 4,655 | 4,669 | 331 |
Net decrease in cash, cash equivalents and restricted cash | (1,027,228) | (138,719) | (15,494) |
Cash, cash equivalents and restricted cash from continuing operations, beginning of period | 25,836 | 25,366 | 30,206 |
Cash, cash equivalents and restricted cash from discontinued operations, beginning of period | 1,092,065 | 1,231,254 | 1,241,908 |
Cash, cash equivalents and restricted cash at beginning of period | 1,117,901 | 1,256,620 | 1,272,114 |
Cash, cash equivalents and restricted cash from continuing operations, end of period | 90,673 | 25,836 | 25,366 |
Cash, cash equivalents and restricted cash from discontinued operations, end of period | 0 | 1,092,065 | 1,231,254 |
Cash, cash equivalents and restricted cash at end of period | 90,673 | 1,117,901 | 1,256,620 |
Non-cash investing and financing activities: | |||
Investments and loans to nonconsolidated affiliates | 0 | 0 | 16 |
Non-cash acquisition of additional redeemable noncontrolling interests | (37,715) | ||
Capital expenditures incurred but not yet paid | 104,154 | 35,026 | 9,688 |
Tenant improvement paid by landlord | 195 | 14,528 | 0 |
Share-based compensation capitalized in property and equipment | 4,011 | 3,946 | 0 |
Accrued earn-out liability and other contingencies | 0 | 0 | 4,573 |
Acquisition of assets not yet paid | $ 0 | $ 500 | $ 3,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity and Redeemable Noncontrolling Interests - USD ($) $ in Thousands | Total | Common Stock Issued | Additional Paid-In Capital | Treasury Stock | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Loss | Total Madison Square Garden Sports Corp. Stockholders’ Equity | Nonredeemable Noncontrolling Interests | Cumulative Effect, Period Of Adoption, Adjustment | Cumulative Effect, Period Of Adoption, AdjustmentAdditional Paid-In Capital | Cumulative Effect, Period Of Adoption, AdjustmentRetained Earnings (Accumulated Deficit) | Cumulative Effect, Period Of Adoption, AdjustmentAccumulated Other Comprehensive Loss | Cumulative Effect, Period Of Adoption, AdjustmentTotal Madison Square Garden Sports Corp. Stockholders’ Equity |
Total equity balance at Jun. 30, 2017 | $ 2,419,861 | $ 249 | $ 2,832,516 | $ (242,077) | $ (148,410) | $ (34,115) | $ 2,408,163 | $ 11,698 | |||||
Total equity balance (Accounting Standards Update 2016-09) at Jun. 30, 2017 | $ 0 | $ 2,403 | $ (2,403) | ||||||||||
Total equity balance (Accounting Standards Update 2018-02) at Jun. 30, 2017 | 0 | (1,840) | $ 1,840 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income (loss) attributable to the parent | 141,594 | ||||||||||||
Net Loss including portion attributable to nonredeemable noncontrolling interest | 135,076 | 141,594 | 141,594 | (6,518) | |||||||||
Other comprehensive loss | (14,643) | (14,643) | (14,643) | ||||||||||
Comprehensive loss attributable to the parent | 126,951 | 126,951 | |||||||||||
Comprehensive income attributable to nonredeemable noncontrolling interest | (6,518) | ||||||||||||
Comprehensive loss including portion attributable to nonredeemable controlling interest | 120,433 | ||||||||||||
Share-based compensation | 47,592 | 47,592 | 47,592 | ||||||||||
Tax withholding associated with shares issued for equity-based compensation | (34,393) | (34,393) | (34,393) | ||||||||||
Common stock issued under stock incentive plans | 0 | (30,245) | 30,245 | ||||||||||
Repurchases of common stock | (11,830) | (11,830) | (11,830) | ||||||||||
Distributions to noncontrolling interest holders | (806) | (806) | |||||||||||
Noncontrolling interests from acquisition | 8,182 | 8,182 | |||||||||||
Contribution of joint venture interests | 4,996 | 4,996 | |||||||||||
Total equity balance at Jun. 30, 2018 | 2,554,035 | 249 | 2,817,873 | (223,662) | (11,059) | (46,918) | 2,536,483 | 17,552 | |||||
Total equity balance (Accounting Standards Update 2016-01) at Jun. 30, 2018 | 0 | (5,570) | $ 5,570 | ||||||||||
Total equity balance (Accounting Standards Update 2014-09 (ASC 606)) at Jun. 30, 2018 | $ 34,205 | $ 34,205 | $ 34,205 | ||||||||||
Total equity balance at Jun. 30, 2017 | 80,630 | ||||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||||
Net income (loss) | (628) | ||||||||||||
Comprehensive income (loss) | (628) | ||||||||||||
Distributions to noncontrolling interest holders | (3,318) | ||||||||||||
Total equity balance at Jun. 30, 2018 | 76,684 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income (loss) attributable to the parent | 11,427 | ||||||||||||
Net Loss including portion attributable to nonredeemable noncontrolling interest | 4,182 | 11,427 | 11,427 | (7,245) | |||||||||
Other comprehensive loss | (5,575) | (5,575) | (5,575) | ||||||||||
Comprehensive loss attributable to the parent | 5,852 | 5,852 | |||||||||||
Comprehensive income attributable to nonredeemable noncontrolling interest | (7,245) | ||||||||||||
Comprehensive loss including portion attributable to nonredeemable controlling interest | (1,393) | ||||||||||||
Share-based compensation | 63,420 | 63,420 | 63,420 | ||||||||||
Tax withholding associated with shares issued for equity-based compensation | (19,525) | (19,525) | (19,525) | ||||||||||
Common stock issued under stock incentive plans | 0 | (15,872) | 15,872 | ||||||||||
Distributions to noncontrolling interest holders | (428) | (428) | |||||||||||
Noncontrolling interests from acquisition | 8,446 | 8,446 | |||||||||||
Contribution of joint venture interests | 0 | 65 | 65 | (65) | |||||||||
Total equity balance at Jun. 30, 2019 | 2,638,760 | 249 | 2,845,961 | (207,790) | 29,003 | (46,923) | 2,620,500 | 18,260 | |||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||||
Net income (loss) | (7,299) | ||||||||||||
Comprehensive income (loss) | (7,299) | ||||||||||||
Distributions to noncontrolling interest holders | (1,758) | ||||||||||||
Total equity balance at Jun. 30, 2019 | 67,627 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income (loss) attributable to the parent | (182,388) | ||||||||||||
Net Loss including portion attributable to nonredeemable noncontrolling interest | (184,850) | (182,388) | (182,388) | (2,462) | |||||||||
Other comprehensive loss | (4,128) | (4,128) | (4,128) | ||||||||||
Comprehensive loss attributable to the parent | (186,516) | (186,516) | |||||||||||
Comprehensive income attributable to nonredeemable noncontrolling interest | (2,462) | ||||||||||||
Comprehensive loss including portion attributable to nonredeemable controlling interest | (188,978) | ||||||||||||
Share-based compensation | 61,007 | 61,007 | 61,007 | ||||||||||
Tax withholding associated with shares issued for equity-based compensation | (26,777) | (26,777) | (26,777) | ||||||||||
Common stock issued under stock incentive plans | 0 | (22,906) | 22,906 | ||||||||||
Noncontrolling interest non-cash acquisition | 37,715 | 20,262 | 17,453 | 37,715 | |||||||||
Distributions to noncontrolling interest holders | (535) | (535) | |||||||||||
Noncontrolling interests from acquisition | 0 | (1,424) | (1,424) | 1,424 | |||||||||
Contribution of joint venture interests | 3,709 | 3,709 | |||||||||||
Redeemable noncontrolling interest adjustment to redemption fair value | (16,939) | (16,939) | (16,939) | ||||||||||
Distribution of Madison Square Garden Entertainment Corp. | (2,711,397) | (2,853,244) | 109,780 | 48,912 | (2,694,552) | (16,845) | |||||||
Total equity balance at Jun. 30, 2020 | (203,435) | $ 249 | $ 5,940 | $ (167,431) | $ (43,605) | $ (2,139) | $ (206,986) | $ 3,551 | |||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||||
Net income (loss) | (24,013) | ||||||||||||
Comprehensive income (loss) | (24,013) | ||||||||||||
Noncontrolling interest non-cash acquisition | (37,715) | ||||||||||||
Redeemable noncontrolling interest adjustment to redemption fair value | 16,939 | ||||||||||||
Distribution of Madison Square Garden Entertainment Corp. | (22,838) | ||||||||||||
Total equity balance at Jun. 30, 2020 | $ 0 |
Description of Business and Bas
Description of Business and Basis of Presentation | 12 Months Ended |
Jun. 30, 2020 | |
Description of Business And Basis of Presentation [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation Description of Business Madison Square Garden Sports Corp., formerly The Madison Square Garden Company (together with its subsidiaries, the “Company” or “ MSG Sports ”) owns and operates a portfolio assets featuring some of the most recognized teams in all of sports, including the New York Knickerbockers (“Knicks”) of the National Basketball Association (“NBA”) and the New York Rangers (“Rangers”) of the National Hockey League (“NHL”). Both the Knicks and the Rangers play their home games in Madison Square Garden Arena (“The Garden”). The Company’s other professional franchises include two development league teams — the Hartford Wolf Pack of the American Hockey League (“AHL”) and the Westchester Knicks of the NBA G League (“NBAGL”). These professional sports franchises are collectively referred to herein as the “sports teams.” During the periods prior to fiscal year 2020, MSG Sports also included the New York Liberty (the “Liberty”) of the Women’s National Basketball Association (the “WNBA”), which was sold in January 2019. In addition, the Company owns Knicks Gaming, an esports franchise that competes in the NBA 2K League, as well as a controlling interest in Counter Logic Gaming (“ CLG ”), a North American esports organization. The Company also operates two professional sports team performance centers — the Madison Square Garden Training Center in Greenburgh, NY and the CLG Performance Center in Los Angeles, CA. CLG and Knicks Gaming are collectively referred to herein as the “esports teams,” and together with the sports teams, the “teams.” The Company operates and reports financial information in one segment. The Company’s decision to report in one segment is based upon its internal organizational structure; the manner in which its operations are managed; the criteria used by the Company’s Executive Chairman, its Chief Operating Decision Maker (“CODM”), to evaluate segment performance. The Company’s CODM reviews total company operating results to assess overall performance and allocate resources. The Company was incorporated on March 4, 2015 as an indirect, wholly-owned subsidiary of MSG Networks Inc. (“ MSG Networks ”). All the outstanding common stock of the Company was distributed to MSG Networks shareholders (the “ MSGS Distribution ”) on September 30, 2015 (the “ MSGS Distribution Date ”). On April 17, 2020 (the “ MSGE Distribution Date ”), the Company distributed all of the outstanding common stock of Madison Square Garden Entertainment Corp. (formerly MSG Entertainment Spinco, Inc., and referred to herein as “ MSG Entertainment ”) to its stockholders (the “ MSGE Distribution ”). MSG Entertainment owns, directly or indirectly, the entertainment business previously owned and operated by the Company through its MSG Entertainment business segment and the sports booking business previously owned and operated by the Company through its MSG Sports business segment. In the MSGE Distribution, (a) each holder of the Company’s Class A common stock received one share of MSG Entertainment Class A common stock, par value $0.01 per share, for every share of the Company’s Class A common stock held of record as of the close of business, New York City time, on April 13, 2020 (the “ Record Date ”), and (b) each holder of the Company’s Class B common stock received one share of MSG Entertainment Class B common stock, par value $0.01 per share, for every share of the Registrant’s Class B common stock held of record as of the close of business, New York City time, on the Record Date. Reclassifications Assets and liabilities related to the MSGE Distribution on the Company’s consolidated balance sheet as of June 30, 2019 have been reclassified as assets and liabilities of discontinued operations (see Note 3 ). All assets and liabilities related to discontinued operations are excluded from the footnotes unless otherwise noted. In addition, the historical results of Madison Square Garden Entertainment Corp. have been reflected in the accompanying statements of operations for the years ended June 30, 2020, 2019 and 2018 as discontinued operations. Impact of COVID-19 On March 11 and 12, 2020, the NBA and NHL, respectively, suspended their 2019-20 seasons due to COVID-19. At the time the seasons were suspended, the Knicks had 16 games remaining, including eight home games, and the Rangers had 12 games remaining, including five home games. On May 26, 2020, the NHL announced return-to-play plans for 24 teams which began August 1, 2020. The Rangers were among the teams that returned to play in a 24-team tournament. On June 4, 2020, the NBA announced plans to resume play on July 30, 2020 with 22 teams. The Knicks were not among the teams that returned to competition. These disruptions have materially impacted the Company’s revenues and the Company is recognizing materially less revenues across a number of areas. Those areas include: ticket sales; media rights fees; the Company’s share of suite licenses; sponsorships; signage and in-venue advertising at The Garden; and food, beverage and merchandise sales for home games played at The Garden. The Company will not earn certain of these revenues until the Knicks and the Rangers again play home games at The Garden with fans in attendance. In addition, as a result of government-mandated assembly limitations and closures, no events are currently permitted to be held at The Garden where the Knicks and Rangers play their home games, and some or all of these mandated restrictions may remain in effect even after the NBA and/or NHL resume their games. While the Company currently has the ability to reduce certain operating expenses as a result of the disruptions caused by COVID-19, including (i) rent payments to MSG Entertainment under the Arena License Agreements while The Garden remains closed, (ii) NBA league assessments and day-of-game expenses for the Knicks and Rangers games, (iii) reduction in headcount and a companywide hiring freeze and (iv) certain other selling, general and administrative and discretionary expenses, those expense reduction opportunities will not fully offset revenue losses. The Knicks and Rangers are not currently required to pay license fees to MSG Entertainment under the Arena License Agreements while The Garden is closed due to the government mandated suspension of events as a result of COVID-19. If The Garden reopens without capacity limitations, future monthly rent payments due under the Arena License Agreements will be payable by the Knicks and the Rangers, even if the NBA or NHL seasons do not resume simultaneously or at all. If the Knicks or Rangers play games at The Garden subject to government mandated capacity constraints due to COVID-19, the applicable rent for such periods will be reduced by up to 80% depending on the size of the capacity constraint. The Company believes, however, that it has sufficient liquidity, including approximately $78,000 in unrestricted cash and cash equivalents as of June 30, 2020, along with available borrowing capacity under existing credit facilities, to fund its operations and repay its outstanding debt that becomes due over the next 12 months. The Company expects to refinance the Knicks Revolving Credit Facility, as defined in Note 13 , (which is currently due on September 30, 2021) and the Rangers Revolving Credit Facility, as defined in Note 13 (which is currently due on January 25, 2022) prior to the maturity thereof. If we were not able to do so, $350,000 of indebtedness outstanding as of June 30, 2020 (plus any amount borrowed under the DDTL Facilities, as define in Note 13 ) will be due during fiscal year 2022. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation The Company reports on a fiscal year basis ending on June 30 th . In these consolidated financial statements, the years ended on June 30, 2020 , 2019 , and 2018 are referred to as “fiscal year 2020 ”, “fiscal year 2019 ”, and “fiscal year 2018 ”, respectively. The consolidated financial statements of the Company include the accounts of Madison Square Garden Sports Corp. and its subsidiaries. For consolidated subsidiaries where the Company’s ownership is less than 100%, 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 sheets, consolidated statements of operations and consolidated statements of comprehensive income (loss), respectively. All significant intracompany transactions and accounts within the Company’s consolidated financial statements have been eliminated. Use of Estimates The preparation of the accompanying financial statements in conformity with generally accepted accounting principles (“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, goodwill, intangible assets, other long-lived assets, deferred tax valuation allowance, 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 See Note 4 for details of accounting policies related to revenue recognition and other disclosures required under Accounting Standards Codification (“ASC”) Topic 606. The Company adopted ASC Topic 606 on July 1, 2018, using the modified retrospective method for all contracts not completed as of the date of adoption. Direct Operating Expenses After the MSGE Distribution Date , Direct operating expenses include compensation expense for the Company’s professional sports teams’ players and certain other team personnel, as well as NBA luxury tax, if applicable, NBA and NHL revenue sharing (net of escrow) and league assessments for the Company, event costs related to the presentation and production of the Company’s sporting events and other operating expenses, including expenses related to the Arena License Agreements which require the Company to pay arena license fees to MSG Entertainment in exchange for the right to use The Garden for games of the Knicks and Rangers for a 35 -year term. Player Costs and Other Team Personnel Transactions, NBA Luxury Tax, NBA and NHL Escrow System/Revenue Sharing, League Assessments, and Arena License Expenses 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 mid-October through mid-April and October through mid-April, respectively. Annual contractual player salaries are 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 fixed contract period 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 6 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). In addition, the NBA and the NBPA currently have the right to terminate the CBA through October 15, 2020 (unless extended). The current NHL CBA was set to expire on September 15, 2022, but the NHL and NHL Players’ Association (“NHLPA”) have recently agreed on terms by which the CBA will be extended through and including September 15, 2026 (with the possibility of an additional one year extension in certain circumstances). See Note 21 for summary of the principal aspects of the new NHL CBA and revenue sharing plan. The NBA CBA contains a salary floor (i.e., a floor on each team’s aggregate player salaries with a requirement that the team pay any deficiency to the players on its roster) and 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 salary floor (i.e., a floor on each team’s aggregate player salaries) and a “hard” salary cap (i.e., teams may not exceed a stated maximum, which has been 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 generally 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. 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 such excess funds are distributed to all teams in equal shares. As of July 2020, the NHL CBA limits the amount of deductions to be withheld from player salaries each year. If annual excess deductions from player salaries are insufficient to limit league-wide player salaries to 50% of that season’s league-wide revenues, any shortfall will be carried forward to future seasons and remain due from the players to the league. 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 preseason 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 preseason 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. Arena License Expenses The Knicks and the Rangers play their home games at The Garden pursuant to the Arena License Agreements with MSG Entertainment , which owns and operates The Garden. The Arena License Agreements are viewed as a continuation of an existing pre-spin relationship where the Knicks and Rangers used The Garden through an inter-company cost-sharing arrangement. Prior to the MSGE Distribution , the Company allocated certain costs to the MSG Sports business segment, and attributed direct costs (See Note 3 ). Generally, the financial statements reflect the monthly payments made for the Arena License Agreements throughout the contract year in equal installments, and straight-line rent expense recorded by each team equally over the home game days as each takes place. In the event a team were to qualify for the playoffs in a given season, a prospective adjustment may be recorded to adjust for the additional use days within that season, while the total expense for the team’s season would remain the same. However, the teams are not required to pay the license fee during the period in which The Garden is unavailable for home games due to a force majeure event, and the teams have not made any payments or incurred any arena license expense for the year ended June 30, 2020. See Note 9 for more information on the accounting for leases. Advertising Expenses Advertising costs are typically charged to expense when incurred, Total advertising costs classified in direct operating and selling, general and administrative expenses were $3,064 , $4,381 and $1,516 for the years ended June 30, 2020 , 2019 and 2018 , respectively. Income Taxes The Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes (“ASC Topic 740”). 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. Share-based Compensation 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 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 accounts for forfeitures as they occur. In addition, for the Company’s stock option awards, the Company applies the fair value recognition provisions of ASC Topic 718 “ Compensation — Stock Compensation ”. ASC Topic 718 requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The Company determines the fair value as of the grant date. For awards with graded vesting conditions, the values of the awards are determined by valuing all vesting tranches in the aggregate as one award using an average expected term. The Company determines its assumptions for option-pricing models in accordance with ASC Topic 718 and SEC Staff Accounting Bulletin (“SAB”) No. 107, “ Share-Based Payment ” based on the following: • The expected term of stock options is estimated using the simplified method. • The expected risk-free interest rate is based on the U.S. Treasury interest rate which term is consistent with the expected term of the stock options. • The expected volatility is based on the historical volatility of the Company’s stock price. In December 2007, the SEC staff issued SAB No. 110, “ Certain Assumptions Used In Valuation Methods — Expected Term ”. SAB No. 110 allows companies to continue to use the simplified method, as defined in SAB No. 107, to estimate the expected term of stock options under certain circumstances. The simplified method for estimating expected term uses the mid-point between the vesting term and the contractual term of the stock option. The Company has analyzed the circumstances in which the use of the simplified method is allowed. The Company has opted to use the simplified method for stock options the Company granted in fiscal years 2019 and 2018 because management believes that the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term. See Note 15 for more information regarding the Company’s application of the simplified method for stock options the Company granted in fiscal year 2019. 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. Diluted EPS reflects the effect of the assumed vesting of restricted stock units and exercise of stock options (see Note 15 ) 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. Holders of Class A Common Stock and Class B Common Stock are entitled to receive dividends equally on a per-share basis if and when such dividends are declared. 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 The Company’s restricted cash includes cash deposited in escrow accounts. 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 on the accompanying combined statement of cash flows in accordance with ASU No. 2016-18, Statement of Cash Flows (Topic 230), which is included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the Company’s consolidated and combined statements of cash flows. 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 $180 and $0 as of June 30, 2020 and 2019 , respectively. Long-Lived and Indefinite-Lived Assets The Company’s long-lived and indefinite-lived assets consist of property and equipment, right-of-use assets, 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. 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 as well as 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 a quantitative 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, 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. Subsequent to the adoption of ASU No. 2017-04 in the third quarter of fiscal year 2020, the amount of an impairment loss is measured as the amount by which a reporting unit’s carrying value exceeds its fair value determined in step one, not to exceed the carrying amount of goodwill. Prior to the adoption of ASU No. 2017-04, if the carrying amount of a reporting unit exceeded its fair value, the second step of the goodwill impairment test was performed to measure the amount of impairment loss, if any. The second step of the goodwill impairment test compared 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 exceeded the implied fair value of that goodwill, an impairment loss was recognized in an amount equal to that excess. The implied fair value of goodwill was 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 the same as or one level below the operating segment level. Subsequent to the MSGE Distribution Date, the Company has one operating and reportable segment and one reporting unit for goodwill impairment testing purposes. 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 (i) determines that such an impairment is more likely than not to exist, or (ii) 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 right-of-use lease assets and 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. As a result of operating disruptions due to COVID-19, the Company’s projected cash flows were directly impacted. This disruption along with the macroeconomic industry and market conditions, resulted in the evaluation of whether there was a “triggering event” as of June 30, 2020. Based on the assessment, management determined that it was not more likely than not that an impairment exists and there was no goodwill or intangible asset balance that was impaired as of June 30, 2020. However, the duration and impact of the COVID-19 pandemic may result in additional future impairment charges that management will evaluate as facts and circumstances evolve through time. 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 The Company’s acquisition agreement for CLG included a contingent earn-out arrangement, which is 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 11 for more information regarding the fair value of the Company’s contingent consideration liabilities related to the acquisitions. Defined Benefit Pension Plans and Other Postretirement Benefit Plan As more fully described in Note 14 , prior to the MSGE Distribution the Company had both funded and unfunded defined benefit plans, as well as a contributory postretirement benefit plan, covering certain full-time employees and retirees. Currently, the Company has unfunded defined benefit plans, as well as a contributory postretirement benefit plan, covering certain full-time employees and retirees. The expense recognized by the Company is determined using certain assumptions, including the expected long-term rate of return and discount rates, 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 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 In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) , which supersedes existing guidance on accounting for leases in ASC Topic 840, Leases. ASU No. 2016-02, among other things, requires (i) 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) extensive qualitative and quantitative disclosures about leasing activities. The accounting applied by a lessor is largely unchanged from that applied under previous accounting guidance. In January 2018, the FASB issued ASU No. 2018-01 |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Jun. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations In accordance with ASC 205-20, the Company analyzed the quantitative and qualitative factors relevant to the MSGE Distribution and determined that those held for sale conditions for discontinued operations presentation were met during the fourth quarter of fiscal year 2020. As a result of the MSGE Distribution , the results of the entertainment business previously owned and operated by the Company through its MSG Entertainment business segment and the sports booking business previously owned and operated by the Company through its MSG Sports business segment through the MSGE Distribution Date , as well as transaction costs related to the MSGE Distribution , have been classified in the accompanying consolidated financial statements as discontinued operations for all periods presented. No gain or loss was recognized in connection with the MSGE Distribution . After the MSGE Distribution , the Company and MSG Entertainment have continuing involvement through their common ownership and related party arrangements, including sharing of certain revenues and expenses. See Note 17 for additional information on the related party arrangements. Prior to the MSGE Distribution , the Company’s results from discontinued operations reflect a number of inter-company arrangements that dictate the allocable amounts of shared revenue and operating expenses. The Company’s continuing revenues include event related revenues for ticket sales and a portion of shared suite license fees generated in connection with the games played at The Garden. Pursuant to the Arena License Agreements, effective as of the MSGE Distribution Date , the Company’s aggregate share of the suite license fees is 67.5% . Thus, for the periods prior to the MSGE Distribution , the allocated percentage of suite license fees of 32.5% is reported within results of discontinued operations. In addition, the Company’s multi-year sponsorship agreements may include performance obligations of the Company’s continuing and discontinued operations (see Note 4 ). Sponsorship revenues reported within discontinued operations are based on the relative value of performance obligations wholly satisfied by the MSG Entertainment businesses. Sponsorship agreements also include shared performance obligations that are from indoor venue signage and other shared sponsorship performance obligations. For historically allocated shared signage and other shared sponsorship revenue, the Company calculated MSG Entertainment ’s share to be presented within discontinued operations based on a combined revenue driver. The Company’s continuing expenses include event costs related to the presentation and production of the Company’s sporting events and other operating expenses, including expenses related to the Arena License Agreements which require the Company to pay arena license fees to MSG Entertainment in exchange for the right to use The Garden for games of the Knicks and the Rangers. Expenses related to the direct operations of MSG Entertainment , such as The Garden operating expenses related to the presentation and production of events and non-event related costs of operating the venue, are included in discontinued operations on the basis of an allocation of the direct usage of The Garden by the Company’s continuing and discontinued businesses. Unallocated costs of operational support functions that were provided on a centralized basis and not historically recorded at the business unit level by the Company, are also included in discontinued operations, based on a measure of direct usage. Direct usage was determined based event specific variable expenses for MSG Entertainment events and otherwise on the basis of the proportion of combined revenues, headcount or other objective measures for expenses. Indirect corporate and administrative costs, including amounts that were historically allocated to the MSG Entertainment business segment, do not qualify for discontinued operations presentation, and these costs are included in continuing operations for the periods prior to the Distribution. Various types of indirect corporate and administrative expenses that continue after the MSGE Distribution Date and are covered under the Transitions Services Agreement, are included in continuing operations for the period after the MSGE Distribution . In addition, results from continuing operations, prior to the MSGE Distribution Date , include certain corporate overhead expenses that the Company did not incur in the period after the completion of the MSGE Distribution , and the Company does not expect to incur such expenses in future periods. Discontinued operations include all depreciation expense for MSG Entertainment ’s venues and other operating assets. Depreciation expense on certain corporate property and equipment that was transferred to MSG Entertainment in connection with the MSGE Distribution , remained in continuing operations as it did not qualify for discontinued operations reporting. The table below sets forth, for the periods presented, operating results of discontinued operations. Amounts presented below differ from historically reported results for the MSG Entertainment business segment due to reclassifications and adjustments made for purposes of discontinued operations. Years Ended June 30, 2020 2019 2018 Revenues $ 669,096 $ 903,196 $ 846,680 Direct operating expenses 408,413 557,680 525,207 Selling, general and administrative expenses 206,524 202,079 178,558 Depreciation and amortization 75,822 99,116 101,679 Impairment of intangibles, long-lived assets and goodwill 102,211 — — Operating income (loss) (123,874 ) 44,321 41,236 Other income (expense): Earnings (loss) in equity method investments (3,901 ) 7,062 (7,770 ) Interest income 16,754 29,014 20,681 Interest expense (3,570 ) (15,440 ) (11,923 ) Miscellaneous expense, net (3,863 ) (6,084 ) (3,360 ) Income (loss) from discontinued operations before income taxes (118,454 ) 58,873 38,864 Income tax benefit (expense) 28,232 (13,968 ) 57,480 Net income (loss) from discontinued operations (90,222 ) 44,905 96,344 Less: Net loss attributable to redeemable noncontrolling interests (24,013 ) (7,299 ) (628 ) Less: Net loss attributable to nonredeemable noncontrolling interests (120 ) (4,945 ) (4,382 ) Net income (loss) from discontinued operations attributable to Madison Square Garden Sports Corp.’s stockholders $ (66,089 ) $ 57,149 $ 101,354 The Company’s collections for ticket sales, sponsorships and suite rentals in advance were recorded as deferred revenue and were recognized for tax purposes upon consummation of the MSGE Distribution . See Note 18 for further information on the tax impact of accelerating deferred revenue for tax purposes. The assets and liabilities of MSG Entertainment reflect the agreements between the Company and MSG Entertainment concerning the allocation of shared revenue and expense activity prior to the MSGE Distribution . The assets and liabilities of MSG Entertainment have been classified in the consolidated balance sheet as of June 30, 2019 as assets and liabilities of discontinued operations and consist of the following, by major class: June 30, 2019 Cash and cash equivalents $ 1,082,055 Restricted cash 10,010 Short-term investments 108,416 Accounts receivable, net 81,314 Net related party receivables 1,722 Prepaid expenses 23,741 Other current assets 36,932 Total current assets of discontinued operations 1,344,190 Net related party receivables, noncurrent 84,560 Property and equipment, net 1,349,122 Amortizable intangible assets, net 214,391 Indefinite-lived intangible assets 64,341 Goodwill 165,558 Other assets 89,895 Total assets of discontinued operations $ 3,312,057 Accounts payable $ 23,974 Net related party payables, current 19,078 Current portion of long-term debt, net of deferred financing costs 6,042 Accrued liabilities: Employee related costs 60,146 Other accrued liabilities 87,714 Collections due to promoters 67,212 Deferred revenue 183,147 Total current liabilities of discontinued operations 447,313 Long-term debt, net of deferred financing costs 48,556 Defined benefit and other postretirement obligations 34,269 Other employee related costs 13,741 Deferred tax liabilities, net 42,649 Other liabilities 59,525 Total liabilities of discontinued operations 646,053 Redeemable noncontrolling interests 67,627 Net assets of discontinued operations $ 2,666,004 The amount of cash and restricted cash distributed as of the MSGE Distribution Date to MSG Entertainment is $816,896 and $10,180 , respectively. As permitted under ASU 2014-08, the Company has elected not to adjust the consolidated statements of cash flows for the years ended June 30, 2020, 2019 and 2018 to exclude cash flows attributable to discontinued operations. The table below sets forth, for the periods presented, significant selected financial information related to MSG Entertainment included in the accompanied consolidated statements of cash flows: Years Ended June 30, 2020 2019 2018 Non-cash items included in net income (loss): Depreciation and amortization $ 75,822 $ 99,116 $ 101,679 Impairment of intangibles, long-lived assets and goodwill 102,211 — — Share-based compensation expense 8,303 10,361 6,969 Cash flows from investing activities: Capital expenditures $ 346,488 $ 184,002 $ 187,362 Non-cash investing activities: Non-cash acquisition of additional redeemable noncontrolling interests $ 37,715 $ — $ — Capital expenditures incurred but not yet paid 104,137 31,928 9,376 |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Jun. 30, 2020 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Revenue Recognition Contracts with Customers All revenue recognized in the consolidated statements of operations is considered to be revenue from contracts with customers in accordance with ASC Topic 606. For the year ended June 30, 2020 , the Company did not have any impairment losses on receivables or contract assets arising from contracts with customers. The Company recognizes revenue when, or as, performance obligations under the terms of a contract are satisfied, which generally occurs when, or as, control of promised goods or services are transferred to customers. Revenue is measured as the amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services (“transaction price”). To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing the most likely amount to which the Company expects to be entitled. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Estimates of variable consideration and the determination of whether to include such estimated amounts in the transaction price are based largely on an assessment of the Company’s anticipated performance and all information that is reasonably available. The Company accounts for taxes collected from customers and remitted to governmental authorities on a net basis and excludes these amounts from revenues. In addition, the Company defers certain costs to fulfill the Company’s contracts with customers to the extent such costs relate directly to the contracts, are expected to generate resources that will be used to satisfy the Company’s performance obligations under the contracts and are expected to be recovered through revenue generated under the contracts. Contract fulfillment costs are expensed as the Company satisfies the related performance obligations. Arrangements with Multiple Performance Obligations The Company has arrangements with multiple performance obligations, such as multi-year sponsorship agreements which may derive revenues within a single arrangement. Payment terms for such arrangements can vary by contract, but payments are generally due in installments throughout the contractual term. The performance obligations included in each sponsorship agreement vary and may include various advertising benefits such as, but not limited to, signage, digital advertising, event or property specific advertising, as well as non-advertising benefits such as suite licenses and event tickets. To the extent the Company’s multi-year arrangements provide for performance obligations that are consistent over the multi-year contractual term, such performance obligations generally meet the definition of a series as provided for under the accounting guidance. If performance obligations are concluded to meet the definition of a series, the contractual fees for all years during the contract term are aggregated and the related revenue is recognized proportionately as the underlying performance obligations are satisfied. The timing of revenue recognition for each performance obligation is dependent upon the facts and circumstances surrounding the Company’s satisfaction of its respective performance obligation. The Company allocates the transaction price for such arrangements to each performance obligation within the arrangement based on the estimated relative standalone selling price of the performance obligation. The Company’s process for determining its estimated standalone selling prices 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 performance obligation. Key factors considered by the Company in developing an estimated standalone selling price for its performance obligations include, but are not limited to, prices charged for similar performance obligations, the Company’s ongoing pricing strategy and policies, and consideration of pricing of similar performance obligations sold in other arrangements with multiple performance obligations. The Company may incur costs such as commissions to obtain its multi-year sponsorship agreements. The Company assesses such costs for capitalization on a contract by contract basis. To the extent costs are capitalized, the Company estimates the useful life of the related contract asset which may be the underlying contract term or the estimated customer life depending on the facts and circumstances surrounding the contract. The contract asset is amortized over the estimated useful life. Principal versus Agent 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. The determination of whether the Company acts as a principal or an agent in a transaction is based on an evaluation of whether the Company controls the good or service before transfer to the customer. When the Company concludes that it controls the good or service before transfer to the customer, the Company is considered a principal in the transaction and records revenue on a gross basis. When the Company concludes that it does not control the good or service before transfer to the customer but arranges for another entity to provide the good or service, the Company acts as an agent and records revenue on a net basis in the amount it earns for its agency service. The Company’s revenue recognition policies that summarize the nature, amount, timing and uncertainty associated with each of the Company’s revenue sources are discussed further in discussion below. The Company’s professional sports teams derive event-related revenues principally from ticket sales which are recognized as the related games occur. The Company’s revenues also include revenue from the license of The Garden’s suites. Suite license arrangements are generally multi-year fixed fee arrangements that include annual fee increases. Payment terms for suite license arrangements can vary by contract, but payments are generally due in installments prior to each license year. The Company’s performance obligation under such arrangements is to provide the licensee with access to the suite when events occur at The Garden. Because suite and club licenses cover both the Knicks and the Rangers games and events that MSG Entertainment presents at The Garden, suite and club rental revenue is shared between us and MSG Entertainment under Arena License Agreements the Company entered into in connection with the MSGE Distribution . Pursuant to the Arena Licenses Agreements, the Knicks and the Rangers are entitled to 35% and 32.5% , respectively, of the revenues received by MSG Entertainment in connection with suite and club licenses. The Company accounts for the performance obligation under these types of arrangements as a series and, as a result, the related suite license fees for all years during the license term are aggregated and revenue is recognized proportionately over the license period as the Company satisfies the related performance obligation. Progress toward satisfaction of the Company’s suite license performance obligations is measured as access to the suite is provided to the licensee for each event throughout the contractual term of the license. Due to the NBA and NHL suspending their season on March 11, and 12, 2020, respectively, suite license holders did not have access to their suites and therefore revenue recognition ceased at this time. Event-related revenue also includes food, beverage and merchandise sales which are recognized at the point goods are provided to customers. Subsequent to the MSGE Distribution Date, pursuant to the Arena License Agreements, the Knicks and the Rangers receive 50% of net profits from the sales of food and beverages during their games at The Garden. Payment is received at the point of sale and sales tax collected from customers is excluded from revenue. In addition to event-related revenue, MSG Sports maintains local media rights arrangements which provide for the licensing of team-related programming to MSG Networks. MSG Sports, pursuant to the terms of the agreements, receives such rights fees in equal monthly installments throughout each license year. The transaction price under these arrangements is variable in nature as certain credit provisions exist to the extent that the teams’ games are unavailable for broadcast during an individual league season. The Company estimates the transaction price at the beginning of each fiscal year, which coincides with the annual contractual term. In estimating the transaction price, the Company considers the contractually agreed upon license fees as well as qualitative considerations with respect to the number of games expected to be available for broadcast by MSG Networks over the upcoming year. The resulting transaction price is allocated entirely to the rights provided for the related contract year and revenue is recognized using an output measure of progress toward satisfaction of the Company’s performance obligations within the contract year, as the underlying benefits are conveyed to the licensee. The Company’s professional sports teams also derive revenue from the distribution of league-wide national and international television contracts and other league-wide revenue sources. The transaction price for each of these revenues is based upon the expected distribution values as communicated by the applicable league. The timing of revenue recognition is dependent on the nature of the underlying performance obligation, which is generally over time. Receipt of league-wide revenues generally occurs at the time of communication or according to a specified timeline. On March 11 and 12, 2020, the NBA and NHL, respectively, suspended their 2019-20 seasons due to COVID-19. At the time the seasons were suspended, the Knicks had 16 games remaining, including eight home games, and the Rangers had 12 games remaining, including five home games. On May 26, 2020, the NHL announced return-to-play plans for 24 teams which began August 1, 2020. The Rangers were among the teams that returned to play in a 24-team tournament. On June 4, 2020, the NBA announced plans to resume play on July 30, 2020 with 22 teams. The Knicks were not among the teams that returned to competition. At this time, league-wide revenues from the 2019-2020 season have not been finalized. As a result, approximately $42,000 of national media rights fees revenues have not been recognized and are deferred revenue obligations pending the completion of the NBA and NHL seasons. MSG Sports also earns revenues from the sale of advertising in the form of venue signage and sponsorships, which are not related to any specific event. The Company’s performance obligations with respect to this advertising are satisfied as the related benefits are delivered over the term of the respective agreements. Amounts collected in advance of the Company’s satisfaction of its contractual performance obligations are recorded as a contract liability within deferred revenue and are recognized as the Company satisfies the related performance obligations. Amounts collected in advance of events for which the Company is not the promoter or co-promoter do not represent contract liabilities and are recorded as collections due to promoters on the balance sheet. The following table disaggregates the Company’s revenues by type of goods or services in accordance with the required entity-wide disclosure requirements per FASB ASC Subtopic 280-10-50-38 to 40 and the disaggregation of revenue required disclosures in accordance with ASC Subtopic 606-10-50-5 for the years ended June 30, 2020 , 2019 and 2018 : Years Ended June 30, 2020 2019 2018 Event-related (a) $ 235,605 $ 283,206 $ 290,937 Media rights (b) 190,824 239,140 229,646 Sponsorship, signage and suite licenses 139,414 174,405 170,749 League distributions and other 37,476 32,653 21,083 Total revenues from contracts with customers $ 603,319 $ 729,404 $ 712,415 _________________ (a) Consists of (i) ticket sales and other ticket-related revenues, and (ii) food, beverage and merchandise sales. (b) Consists of (i) local media rights fees from MSG Networks, (ii) revenue from the distribution through league-wide national and international television contracts, and (iii) other local radio rights fees. Contract Balances The timing of revenue recognition, billings and cash collections results in billed receivables, contract assets and contract liabilities on the consolidated balance sheet. The following table provides information about contract balances from the Company’s contracts with customers as of June 30, 2020 and 2019 . June 30, June 30, 2020 2019 Receivables from contracts with customers, net (a) $ 7,403 $ 15,550 Contract assets, current (b) 4,112 441 Deferred revenue, including non-current portion (c) 128,362 112,511 _________________ (a) Receivables from contracts with customers, which are reported in Accounts receivable, net and Net related party receivables in the Company’s consolidated balance sheets, represent the Company’s unconditional rights to consideration under its contracts with customers. As of June 30, 2020 and 2019 , the Company’s receivables from contracts with customers above included $0 and $8 , respectively, related to various related parties. See Note 17 for further details on these related party arrangements. (b) Contract assets, which are reported as Other current assets in the Company’s consolidated balance sheets, primarily relate to the Company’s rights to consideration for goods or services transferred to the customer, for which the Company does not have an unconditional right to bill as of the reporting date. Contract assets are transferred to accounts receivable once the Company’s right to consideration becomes unconditional. (c) Deferred revenue primarily relates to the Company’s receipt of consideration from a customer in advance of the Company’s transfer of goods or services to that customer. Deferred revenue is reduced and the related revenue is recognized once the underlying goods or services are transferred to the customer. Revenue recognized for the year ended June 30, 2020 relating to the deferred revenue balance as of July 1, 2019 was $101,981 . Transaction Price Allocated to the Remaining Performance Obligations The following table depicts the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of June 30, 2020 . In developing the estimated revenue, the Company applies the allowable practical expedient and does not disclose information about remaining performance obligations that have original expected durations of one year or less. Additionally, the Company has elected to exclude variable consideration from its disclosure related to the remaining performance obligations under its local media rights arrangements with MSG Networks. Fiscal year ending June 30, 2021 $ 28,803 Fiscal year ending June 30, 2022 65,637 Fiscal year ending June 30, 2023 27,044 Fiscal year ending June 30, 2024 8,051 Fiscal year ending June 30, 2025 7,025 Thereafter 17,554 $ 154,114 |
Computation of Earnings (Loss)
Computation of Earnings (Loss) per Common Share | 12 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Earnings (Loss) per Common Share | Computation of Earnings (Loss) per Common Share The following table presents a reconciliation of weighted-average shares used in the calculations of basic and diluted earnings (loss) per common share attributable to the Company’s stockholders (“EPS”). Years Ended June 30, 2020 2019 2018 Weighted-average shares (denominator): Weighted-average shares for basic EPS 23,942 23,767 23,639 Dilutive effect of shares issuable under share-based compensation plans — 133 207 Weighted-average shares for diluted EPS 23,942 23,900 23,846 Weighted-average anti-dilutive shares — 368 28 |
Team Personnel Transactions
Team Personnel Transactions | 12 Months Ended |
Jun. 30, 2020 | |
Team Personnel Transactions [Abstract] | |
Team Personnel Transactions | Team Personnel Transactions Direct operating and selling, general and administrative expenses in the accompanying consolidated statements of operations include net provisions for transactions relating to the Company’s sports teams for (i) waivers/contract termination costs, (ii) player trades and (iii) season-ending injuries (“ Team Personnel Transactions ”). Team Personnel Transactions amounted to $33,690 , $53,134 and $27,514 for the years ended June 30, 2020 , 2019 and 2018 , respectively. Team personnel transactions for the year ended June 30, 2018 are reported net of insurance recoveries of $468 . |
Cash, Cash Equivalent and Restr
Cash, Cash Equivalent and Restricted Cash | 12 Months Ended |
Jun. 30, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalent and Restricted Cash | Cash, Cash Equivalent and Restricted Cash The following table provides a summary of the amounts recorded as cash, cash equivalents and restricted cash. As of June 30, June 30, June 30, June 30, Captions on the consolidated balance sheets: Cash and cash equivalents $ 77,852 $ 4,317 $ 1,095 $ 931 Restricted cash (a) 12,821 21,519 24,271 29,275 Cash, cash equivalents and restricted cash on the consolidated statements of cash flows $ 90,673 $ 25,836 $ 25,366 $ 30,206 _________________ (a) See Note 2 for more information regarding the nature of restricted cash. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment As of June 30, 2020 and 2019 , property and equipment consisted of the following assets: June 30, June 30, Estimated Useful Lives Land $ 5,153 $ 5,153 Buildings 53,623 34,770 Up to 45 years Equipment 18,086 17,631 1 year to 20 years Furniture and fixtures 377 329 4 years to 10 years Leasehold improvements 653 646 Shorter of term of lease or life of improvement Construction in progress 66 6,538 77,958 65,067 Less accumulated depreciation and amortization (38,361 ) (33,797 ) $ 39,597 $ 31,270 Depreciation and amortization expense on property and equipment for continuing operations was $13,979 , $ 15,112 and $ 14,526 for the years ended June 30, 2020 , 2019 and 2018 , respectively, which includes depreciation expense on certain corporate property and equipment that was transferred to MSG Entertainment in connection with the MSGE Distribution , but which did not qualify for discontinued operations reporting. |
Leases
Leases | 12 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company’s leases primarily consist of the lease of the Company’s corporate offices under the Sublease Agreement with MSG Entertainment (the “Sublease Agreement”) for the Company’s principal executive offices at Two Pennsylvania Plaza in New York and the lease of CLG Performance Center. In, addition, the Company accounts for the rights of use of The Garden pursuant to the Arena License Agreements as leases under the Accounting Standards Codification Topic 842, Leases. The Company determines whether an arrangement contains a lease at the inception of the arrangement. If a lease is determined to exist, the lease term is assessed based on the date when the underlying asset is made available for the Company’s use by the lessor. The Company’s assessment of the lease term reflects the non-cancelable term of the lease, inclusive of any rent-free periods and/or periods covered by early-termination options which the Company is reasonably certain not to exercise, as well as periods covered by renewal options which the Company is reasonably certain of exercising. The Company also determines lease classification as either operating or finance at lease commencement, which governs the pattern of expense recognition and the presentation reflected in the consolidated statements of operations over the lease term. For leases with a term exceeding 12 months, a lease liability is recorded on the Company’s consolidated balance sheet at lease commencement reflecting the present value of the fixed minimum payment obligations over the lease term. A corresponding ROU asset equal to the initial lease liability is also recorded, adjusted for any prepaid rent and/or initial direct costs incurred in connection with execution of the lease and reduced by any lease incentives received. The Company includes fixed payment obligations related to non-lease components in the measurement of ROU assets and lease liabilities, as the Company has elected to account for lease and non-lease components together as a single lease component. ROU assets associated with finance leases are presented separate from operating leases ROU assets and are included within Property and equipment, net on the Company’s consolidated balance sheet. For purposes of measuring the present value of the Company’s fixed payment obligations for a given lease, the Company uses its incremental borrowing rate, determined based on information available at lease commencement, as rates implicit in the underlying leasing arrangements are typically not readily determinable. The Company’s incremental borrowing rate reflects the rate it would pay to borrow on a secured basis and incorporates the term and economic environment surrounding the associated lease. For operating leases, fixed lease payments are recognized as lease expense on a straight-line basis over the lease term. For finance leases, the initial ROU asset is depreciated on a straight-line basis over the lease term, along with recognition of interest expense associated with accretion of the lease liability, which is ultimately reduced by the related fixed payments. For leases with a term of 12 months or less (“short-term leases”), any fixed lease payments are recognized on a straight-line basis over the lease term and are not recognized on the consolidated balance sheet. Variable lease costs for both operating and finance leases, if any, are recognized as incurred and such costs are excluded from lease balances recorded on the consolidated balance sheet. On April 17, 2020, in connection with the MSGE Distribution , the Company entered into a sublease agreement with MSG Entertainment for the Company’s principal executive offices at Two Pennsylvania Plaza in New York. The sublease right of use assets and liabilities are recorded on the balance sheet at lease commencement based on the present value of minimum base rent and other fixed payments over the reasonably certain lease term, which ends April 30, 2024. In addition, in connection with the MSGE Distribution the Company entered into the Arena License Agreements with MSG Entertainment that end on June 30, 2055 and will allow the Knicks and the Rangers to continue to play their home games at The Garden. The Arena License Agreements provide for fixed payments to be made from inception through June 30, 2055 in 12 equal installments during each year of the contractual term. The Garden was not available for use on April 17, 2020 due to the COVID-19 pandemic and local government restrictions on gatherings; however, the licenses were viewed as a continuation of an existing pre-spin relationship where the Knicks and Rangers used The Garden through an inter-company cost-sharing arrangement and therefore the licenses were viewed to have commenced on April 17, 2020. However, due to the force majeure clause, the Company is not required to make payments until The Garden is available for use, and on June 30, 2020 the assets and liabilities were remeasured utilizing the same discount rate as of April 17, 2020, taking into account the unpaid monthly installments during the lease period as a resolution of a lease contingency. The Knicks and the Rangers are entitled to use The Garden on home game days, which are usually nonconsecutive, for a pre-defined period of time from before and after the game. In evaluating the Company’s lease cost, the Company considered the timing of payments throughout the lease terms and the nonconsecutive periods of use, provided for within each license. While payments are made throughout the contract year in twelve equal installments under each arrangement, the periods of use only span each of the individual team event days. As such, the Company concluded that the related straight-line rent expense should be recorded by each team equally over the home game days as each takes place. In the event a team were to qualify for the playoffs in a given season, a prospective adjustment may be recorded to adjust for the additional use days within that season, while the total expense for the team’s season would remain the same. There were no events and thus no rent expense was recorded during the period from lease inception as of April 17, 2020 to June 30, 2020. As of June 30, 2020 , the Company’s existing operating leases, which are recorded on the accompanying financial statements, have remaining lease terms ranging from 3 months to 35 years . In certain instances, leases include options to renew, with varying option terms. The exercise of lease renewal, if available under the lease options, is generally at the Company’s discretion and is considered in the Company’s assessment of the respective lease term. The Company’s lease agreements do not contain material residual value guarantees or material restrictive covenants. The following table summarizes the ROU assets and lease liabilities recorded on the Company’s consolidated balance sheet as of June 30, 2020 : Line Item in the Company’s Consolidated Balance Sheet Right-of-use assets: Operating leases Right-of-use lease assets $ 718,051 Lease liabilities: Operating leases, current Operating lease liabilities, current 39,131 Operating leases, noncurrent Operating lease liabilities, noncurrent 679,053 Total lease liabilities $ 718,184 The following table summarizes the activity recorded within the Company’s consolidated statement of operations for the year ended June 30, 2020 : Line Item in the Company’s Consolidated Statement of Operations Year Ended June 30, 2020 Operating lease cost Direct operating expenses $ 341 Operating lease cost Selling, general and administrative expenses 593 Short-term lease cost Direct operating expenses 138 Total lease cost $ 1,072 Supplemental Information For the year ended June 30, 2020 , cash paid for amounts included in the measurement of lease liabilities was $877 . For the year ended June 30, 2020 , the Company had three ROU assets of $717,115 obtained in exchange for new operating lease liabilities. The weighted average remaining lease term for operating leases recorded on the accompanying consolidated balance sheet as of June 30, 2020 was 34.5 years . The weighted average discount rate was 7.13% as of June 30, 2020 and represented the Company’s estimated incremental borrowing rate, assuming a secured borrowing, based on the remaining lease term at the time of either (i) adoption of the standard or (ii) the period in which the lease term expectation commenced or was modified . Maturities of operating lease liabilities as of June 30, 2020 are as follows: Fiscal year ending June 30, 2021 $ 41,865 Fiscal year ending June 30, 2022 43,077 Fiscal year ending June 30, 2023 44,426 Fiscal year ending June 30, 2024 44,888 Fiscal year ending June 30, 2025 44,052 Thereafter 2,158,686 Total lease payments 2,376,994 Less imputed interest (1,658,810 ) Total lease liabilities $ 718,184 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Intangible Assets | Goodwill and Intangible Assets During the first quarter of fiscal year 2020 , the Company performed its annual impairment test of goodwill and determined that there were no impairments of goodwill identified for any of its reporting units as of the impairment test date, including the goodwill of the MSG Entertainment and TAO Group reporting units that were transferred to MSG Entertainment as part of the MSGE Distribution . The Company’s goodwill is $226,955 and $226,955 as of June 30, 2020 and 2019 , respectively. The Company’s indefinite-lived intangible assets as of June 30, 2020 and 2019 are as follows: June 30, June 30, Sports franchises $ 111,064 $ 111,064 Photographic related rights 1,080 1,080 $ 112,144 $ 112,144 During the first quarter of fiscal year 2020 , the Company performed its annual impairment test of identifiable indefinite-lived intangible assets and determined that there were no impairments identified, including Trademarks and a portion of Photographic related rights that were transferred to MSG Entertainment as part of the MSGE Distribution . As a result of operating disruptions due to COVID-19, the Company’s projected cash flows were directly impacted. This disruption along with the macroeconomic industry and market conditions, resulted in the evaluation of whether there was a “triggering event”. Based on the assessment, management determined that it was not more likely than not that an impairment exists and there was no goodwill or intangible asset balance that was impaired as of June 30, 2020. The Company’s intangible assets subject to amortization are as follows: June 30, 2020 Estimated Useful Lives Gross Accumulated Amortization Net Trade names 5 years $ 2,300 $ (1,342 ) $ 958 Non-compete agreements 5 years 2,400 (1,400 ) 1,000 Other intangibles 3 years to 9.75 years 1,200 (404 ) 796 $ 5,900 $ (3,146 ) $ 2,754 June 30, 2019 Gross Accumulated Amortization Net Trade names $ 2,300 $ (882 ) $ 1,418 Season ticket holder relationships 50,032 (47,541 ) 2,491 Non-compete agreements 2,400 (920 ) 1,480 Other intangibles 3,347 (2,421 ) 926 $ 58,079 $ (51,764 ) $ 6,315 Season ticket holder relationship and other intangibles were fully amortized as of June 30, 2020 , and the gross carrying amount and accumulated amortization were written off. Amortization expense for intangible assets was $3,561 , $4,965 , and $6,281 for the years ended June 30, 2020 , 2019 and 2018 , respectively. The Company expects its aggregate annual amortization expense for existing intangible assets subject to amortization for each fiscal year from 2021 through 2025 to be as follows: Fiscal year ending June 30, 2021 $ 1,059 Fiscal year ending June 30, 2022 1,059 Fiscal year ending June 30, 2023 195 Fiscal year ending June 30, 2024 115 Fiscal year ending June 30, 2025 115 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The carrying value and fair value of the Company’s financial instruments reported in the accompanying consolidated balance sheets are as follows: June 30, 2020 June 30, 2019 Carrying Value Fair Value Carrying Fair Liabilities Long-term debt (a) $ 350,000 $ 350,000 $ — $ — _________________ (a) On March 12, 2020, the Company borrowed $200,000 under the New York Knicks, LLC and $150,000 on the New York Rangers, LLC 5 -year revolving credit facilities. 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. See Note 13 for more information. Contingent Consideration Liabilities In connection with the CLG acquisition on July 28, 2017, the Company may be required to make future payments for deferred and contingent consideration up to a total of $9,150 based upon the achievement of certain specified objectives during the three years following the transaction as defined under the membership interest purchase agreement. The Company recorded $6,586 as the initial fair value of deferred and contingent consideration liabilities as part of the preliminary purchase price allocation. The fair values of these deferred and contingent consideration liabilities were estimated using weighted probabilities of achievement for the possible objective and earn-out events and adjusted for a discount rate applicable to the deferred and potential cash payouts. The following table provides a reconciliation of the deferred and contingent consideration liabilities in connection with the acquisition discussed above: Balance as of June 30, 2019 $ 2,139 Contingent consideration payment (200 ) Change in fair value of contingent consideration (a) (1,603 ) Balance as of June 30, 2020 $ 336 _________________ (a) The change in fair value of contingent consideration was recorded within Selling, general and administrative expenses in the accompanying consolidated statement of operations for the year ended June 30, 2020 . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Contractual Obligations and Off Balance Sheet Arrangements 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, 2020 , future cash payments required under contracts entered into by the Company in the normal course of business in excess of one year are as follows: Off-Balance Sheet Commitments (a) Contractual (b) Total (c) Fiscal year ending June 30, 2021 $ 150,672 $ 53,139 $ 203,811 Fiscal year ending June 30, 2022 90,257 15,505 105,762 Fiscal year ending June 30, 2023 52,407 5,034 57,441 Fiscal year ending June 30, 2024 41,557 3,234 44,791 Fiscal year ending June 30, 2025 33,516 3,116 36,632 Thereafter 27,191 11,712 38,903 $ 395,600 $ 91,740 $ 487,340 _________________ (a) Consist principally of the Company’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. (b) Consist primarily of amounts earned under employment agreements that the Company has with certain of its professional sports teams’ personnel. (c) Pension obligations have been excluded from the table above as the timing of the future cash payments is uncertain. See Note 14 for information on the future funding requirements under our pension obligations. In addition, see Note 9 for information on the contractual obligations related to future lease payments, which are reflected on the consolidated balance sheet as lease liabilities as of June 30, 2020. In connection with the CLG acquisition, the Company has accrued contingent consideration as part of the purchase price. See Note 11 for further details of the amount recorded in the accompanying consolidated balance sheet as of June 30, 2020 . In addition, see Note 13 for further details of the outstanding balances under the Knicks Revolving Credit Facility (as defined below) and Rangers Revolving Credit Facility (as defined below). Legal Matters The Company is a defendant in various lawsuits. Although the outcome of these lawsuits cannot be predicted with certainty (including the extent of available insurance, if any), management does not believe that resolution of these lawsuits will have a material adverse effect on the Company. |
Credit Facilities
Credit Facilities | 12 Months Ended |
Jun. 30, 2020 | |
Credit Facilities [Abstract] | |
Credit Facilities | 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. Amounts borrowed may be distributed to the Company except during an event of default. 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, 2020 , Knicks LLC was in compliance with this financial covenant . The Knicks Revolving Credit Facility will mature and any unused commitments thereunder will expire on September 30, 2021. 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) the London Inter-Bank Offered Rate (“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 outstanding balance under the Knicks Revolving Credit Facility was $200,000 as of June 30, 2020 and was recorded as Long-term debt in the accompanying consolidated balance sheet. The interest rate on the Knicks Revolving Credit Facility as of June 30, 2020 was 1.20% . During the year ended June 30, 2020 the Company made interest payments of $819 . 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 Credit Agreement and related security agreements contain 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 364 -day term (the “ Knicks Unsecured Credit Facility ”). Knicks LLC renewed this facility with the lender on the same terms in successive years and the facility has been renewed for a new term effective as of September 25, 2020. There was no borrowing under the Knicks Unsecured Credit Facility as of June 30, 2020 . This facility does not have financial covenants. 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. Amounts borrowed may be distributed to the Company except during an event of default. 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, 2020 , Rangers LLC was in compliance with this financial covenant. The Rangers Revolving Credit Facility will mature and any unused commitments thereunder will expire on January 25, 2022. 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 outstanding balance under the Rangers Revolving Credit Facility was $150,000 as of June 30, 2020 and was recorded as Long-term debt in the accompanying consolidated balance sheet. The interest rate on the Rangers Revolving Credit Facility as of June 30, 2020 was 1.580% . During the year ended June 30, 2020 the Company made interest payments of $760 . 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 qualified revenues are less than 17% of the maximum available amount under the Rangers Revolving Credit Facility. In addition to the financial covenant described above, the Rangers Credit Agreement and related security agreements contain 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. Delayed Draw Term Loan Credit Facilities As an additional source of liquidity for the Company in response to the COVID-19 pandemic, on April 17, 2020, MSG NYR Holdings, LLC and MSG NYK Holdings, LLC, two indirect wholly-owned subsidiaries of the Company, each entered into a separate delayed draw term loan credit agreement with MSG Entertainment Group, LLC, a wholly-owned subsidiary of MSG Entertainment, as lender (the “DDTL Lender”). The credit agreement for MSG NYK Holdings, LLC (the “Knicks DDTL Facility Borrower”) provides for a $110,000 senior unsecured delayed draw term loan facility (the “Knicks DDTL Facility”) and the credit agreement for MSG NYR Holdings, LLC (the “Rangers DDTL Facility Borrower”) provides for a $90,000 senior unsecured delayed draw term loan facility (the “Rangers DDTL Facility” and, together with the Knicks DDTL Facility, the “ DDTL Facilities ”). The DDTL Facilities will mature and any unused commitments thereunder will expire on October 17, 2021 . Borrowings under the DDTL Facilities will bear interest at a variable rate equal to either, at the election of the applicable borrower, (i) LIBOR plus 2.00% per annum or (ii) a base rate plus 1.00% per annum. Subject to the borrowing conditions, each of the DDTL Facilities may be drawn in up to four separate borrowings of $10,000 or more. Proceeds of borrowings under the DDTL Facilities will be used for general corporate purposes. The availability of each of the DDTL Facilities to the respective borrowers is subject to certain conditions, including (a) the liquidity, including cash on hand and availability under revolving credit commitments, of the Company, MSG Sports, LLC, the Knicks DDTL Facility Borrower and its subsidiaries and the Rangers DDTL Facility Borrower and its subsidiaries (other than any liquidity that is restricted by law or contractual obligation from being transferred to the relevant DDTL Facility Borrower or its subsidiaries) must be (i) less than $50,000 immediately prior to giving effect to any borrowing, and (ii) less than $75,000 immediately after giving effect to any borrowing, and (b) with respect to the Knicks DDTL Facility, the Knicks DDTL Facility Borrower and its subsidiaries must have used commercially reasonable efforts to raise additional financing (“New Third-Party Debt”), including additional commitments under existing revolving facilities, prior to drawing on the Knicks DDTL Facility to the extent permitted by the debt policies of the NBA. In addition, the commitments of the DDTL Lender to make advances under the Knicks DDTL Facility will be permanently reduced and the Knicks DDTL Facility will be subject to mandatory prepayments in an amount equal to the net cash proceeds received by the Company, MSG Sports, LLC, the Knicks DDTL Facility Borrower, or the subsidiaries of the Knicks DDTL Facility Borrower from any New Third-Party Debt. Pursuant to the NBA debt policies, the NBA has consented (the “NBA Consent Letter”) to the incurrence of the indebtedness under the Knicks DDTL Facility. The NBA Consent Letter provides that the Knicks DDTL Facility Borrower and its subsidiaries (including the Knicks basketball team) will, among other matters, (i) operate the team in a first class manner, consistent with the manner in which NBA teams generally are operated, as determined by the NBA Commissioner in his sole discretion, and (ii) maintain sufficient net working capital and cash reserves to pay expenses, liabilities and obligations of the team in the ordinary course and in a timely fashion. In addition, the Knicks DDTL Facility Borrower and its subsidiaries (including the Knicks basketball team) have agreed with the NBA to not transfer certain basketball-related assets and to not make distributions to the Company without first providing the NBA with advance notice and not receiving the objection of the NBA Commissioner. There was no borrowing under the DDTL Facilities as of June 30, 2020 . Deferred Financing Costs The following table summarizes deferred financing costs, net of amortization, related to the Knicks Revolving Credit Facility, Knicks Unsecured Credit Facility, and Rangers Revolving Credit Facility as reported on the accompanying consolidated balance sheet: June 30, June 30, Other current assets $ 675 $ 675 Other assets 264 939 |
Pension Plans and Other Postret
Pension Plans and Other Postretirement Benefit Plan | 12 Months Ended |
Jun. 30, 2020 | |
Retirement Benefits [Abstract] | |
Pension Plans And Other Postretirement Benefit Plan | Pension Plans and Other Postretirement Benefit Plan Defined Benefit Pension Plans and Postretirement Benefit Plans Prior to the MSGE Distribution , the Company 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 (the “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. Also, the Company historically sponsored an unfunded non-contributory, non-qualified defined benefit pension plan for the benefit of certain employees who participate in the 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 were 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. Prior to the MSGE Distribution the Company 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 Benefit Service (as defined in the Union Plan document). The Cash Balance Plans, Union Plan, and Excess Plan are collectively referred to as the “MSGE Pension Plans.” In addition, the Company also sponsored a contributory welfare plan which provided 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”). As of the MSGE Distribution Date the Company and MSG Entertainment entered into an employee matters agreement (the “Employee Matters Agreement”) which determined each company’s obligations after the MSGE Distribution with regard to historical liabilities under the Company’s former pension and postretirement plans. Under the Employee Matters Agreement, the MSGE Pension Plans and Postretirement Plan were transferred to MSG Entertainment . However, the Company has retained liabilities from the Excess Cash Balance Plan and Excess Plan that related to its current employees, former employees (other than employees transferred to MSG Entertainment in connection with the MSGE Distribution ) and employees that are employed in a senior executive capacity by both the MSG Sports and MSG Entertainment. Such liabilities were transferred to the MSG Sports, LLC Excess Cash Balance Plan (the “MSGS Excess Cash Balance Plan”) and MSG Sports, LLC Excess Retirement Plan (the “MSGS Excess Retirement Plan”), which the Company established in connection with the MSGE Distribution and are collectively referred to the “ MSGS Pension Plans ”. 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, 2020 and 2019 , associated with the MSGE Pension Plans, MSGS Pension Plans and Postretirement Plan , based upon actuarial valuations as of those measurement dates. MSGE Pension Plans & MSGS Pension Plans Postretirement Plan June 30, June 30, 2020 2019 2020 2019 Change in benefit obligation: Benefit obligation at beginning of period $ 173,569 $ 161,236 $ 4,307 $ 6,750 Service cost 75 91 44 57 Interest cost 4,285 5,895 86 150 Actuarial loss (gain) 895 12,376 805 (572 ) Benefits paid (5,315 ) (5,686 ) (1,025 ) (565 ) Plan settlements paid (551 ) (343 ) — — Other — — — (1,513 ) Transfer due to the MSGE Distribution (162,901 ) — (4,217 ) — Benefit obligation at end of period 10,057 173,569 — 4,307 Change in plan assets: Fair value of plan assets at beginning of period 132,965 115,054 — — Actual return on plan assets 10,017 12,372 — — Employer contributions 7,811 11,568 — — Benefits paid (5,315 ) (5,686 ) — — Plan settlements paid (551 ) (343 ) — — Transfer due to the MSGE Distribution (144,927 ) — — — Fair value of plan assets at end of period — 132,965 — — Funded status at end of period $ (10,057 ) $ (40,604 ) $ — $ (4,307 ) Amounts recognized in the consolidated balance sheets as of June 30, 2020 and 2019 consist of: MSGE Pension Plans & MSGS Pension Plans Postretirement Plan June 30, June 30, 2020 2019 2020 2019 Current liabilities (included in accrued employee related costs) of continuing operations $ (3,043 ) $ (2,667 ) $ — $ — Non-current liabilities (included in defined benefit and other postretirement obligations) of continuing operations (7,014 ) (7,049 ) — — Current liabilities of discontinued operations — (581 ) — (345 ) Non-current liabilities of discontinued operations — (30,307 ) — (3,962 ) $ (10,057 ) $ (40,604 ) $ — $ (4,307 ) Accumulated other comprehensive loss, before income tax, as of June 30, 2020 and 2019 consists of the following amounts that have not yet been recognized in net periodic benefit cost: MSGE Pension Plans & MSGS Pension Plans Postretirement Plan June 30, June 30, 2020 2019 2020 2019 Actuarial loss $ (2,139 ) $ (39,793 ) $ — $ (754 ) $ (2,139 ) $ (39,793 ) $ — $ (754 ) In connection with the MSGE Distribution , the Company transferred to MSG Entertainment the accumulated other comprehensive income (loss) related to the MSGE Pension Plans and Postretirement Plan. The following table presents components of net periodic benefit cost for the MSGE Pension Plans, MSGS Pension Plans and Postretirement Plan included in the accompanying consolidated statements of operations for the years ended June 30, 2020 , 2019 and 2018 . Service cost is recognized in direct operating expenses and selling, general and administrative expenses. All other components of net periodic benefit cost are reported in Miscellaneous income (expense), net . MSGE Pension Plans & MSGS Pension Plans Postretirement Plan Years Ended June 30, Years Ended June 30, 2020 2019 2018 2020 2019 2018 Service cost $ 75 $ 91 $ 85 $ 44 $ 57 $ 120 Interest cost 4,285 5,895 5,231 86 150 215 Expected return on plan assets (4,240 ) (3,133 ) (2,634 ) — — — Recognized actuarial loss 930 1,281 1,219 5 5 100 Amortization of unrecognized prior service cost (credit) — — — — (7 ) (37 ) Settlement loss recognized (a) 67 52 87 — — — Other — — — — (1,513 ) — Net periodic benefit cost $ 1,117 $ 4,186 $ 3,988 $ 135 $ (1,308 ) $ 398 _________________ (a) For the years ended June 30, 2020 , 2019 and 2018, lump-sum payments totaling $551 , $343 and $506 , respectively, were distributed to vested participants of the non-qualified excess cash balance plan , triggering the recognition of settlement losses in accordance with ASC Topic 715. Due to these pension settlements, the Company was required to remeasure its pension plan liability as of March 31, 2020, June 30, 2019 and March 31, 2018 for the years ended June 30, 2020 , 2019 and 2018, respectively. Discount rates used for the projected benefit obligation and interest cost were 3.21% and 2.55% as of June 30, 2020 , respectively, 3.75% and 3.18% as of June 30, 2019, respectively, and 3.53% and 2.16% as of March 31, 2018, respectively. Additionally, settlement charges of $67 , $52 and $87 were recognized in Miscellaneous income (expense), net for the years ended June 30, 2020 , 2019 and 2018, respectively. Amounts presented in the table above include net periodic benefit cost related to continuing operations and discontinued operations as noted in the following table: MSGE Pension Plans & MSGS Pension Plans Postretirement Plan Years Ended June 30, Years Ended June 30, 2020 2019 2018 2020 2019 2018 Continuing Operations $ 395 $ 434 $ 504 $ — $ — $ — Discontinued Operations 722 3,752 3,484 135 (1,308 ) 398 Total net periodic benefit cost $ 1,117 $ 4,186 $ 3,988 $ 135 $ (1,308 ) $ 398 Other pre-tax changes in plan assets and benefit obligations recognized in other comprehensive income (loss) for the years ended June 30, 2020 , 2019 and 2018 are as follows: MSGE Pension Plans & MSGS Pension Plans Postretirement Plan Years Ended June 30, Years Ended June 30, 2020 2019 2018 2020 2019 2018 Actuarial gain (loss), net $ (321 ) $ (3,137 ) $ (1,978 ) $ — $ 572 $ (1,437 ) Recognized actuarial loss 930 1,281 1,219 5 5 100 Recognized prior service credit — — — — (7 ) (37 ) Settlement loss recognized 67 52 87 — — — Transfer due to the MSGE Distribution 37,049 — — 749 — — Total recognized in other comprehensive income (loss) $ 37,725 $ (1,804 ) $ (672 ) $ 754 $ 570 $ (1,374 ) The estimated net loss for the MSGS 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 $103 . Funded Status The accumulated benefit obligation for the MSGE Pension Plans aggregated to $173,569 at June 30, 2019 . As of June 30, 2019 , each of the Pension Plans had accumulated benefit obligations and projected benefit obligations in excess of plan assets. As a result of the MSGE Distribution , effective the MSGE Distribution Date , the Company sponsors only unfunded non-contributory pension plans. Assumptions Weighted-average assumptions used to determine benefit obligations (made at the end of the period) as of June 30, 2020 and 2019 are as follows: MSGE Pension Plans & MSGS Pension Plans Postretirement Plan June 30, June 30, 2020 2019 2020 2019 Discount rate 2.29 % 3.58 % n/a 3.18 % Healthcare cost trend rate assumed for next year n/a n/a n/a 6.75 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) n/a n/a n/a 5.00 % Year that the rate reaches the ultimate trend rate n/a n/a n/a 2027 Weighted-average assumptions used to determine net periodic benefit cost (made at the beginning of the period) for the years ended June 30, 2020 , 2019 and 2018 are as follows: MSGE Pension Plans & MSGS Pension Plans Postretirement Plan Years Ended June 30, Years Ended June 30, 2020 2019 2018 2020 2019 2018 Discount rate - projected benefit obligation 3.58 % 4.19 % 3.81 % 3.18 % 4.06 % 3.54 % Discount rate - service cost 3.78 % 4.25 % 3.93 % 3.45 % 4.25 % 3.83 % Discount rate - interest cost 3.10 % 3.90 % 3.32 % 2.84 % 3.67 % 3.05 % Expected long-term return on plan assets 5.52 % 3.72 % 3.46 % n/a n/a n/a Healthcare cost trend rate assumed for next year n/a n/a n/a 6.75 % 7.00 % 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 2027 2027 2027 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, 2020 and 2019 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, 2020 2019 2018 2020 2019 One percentage point increase $ 12 $ 19 $ 37 n/a $ 335 One percentage point decrease (11 ) (17 ) (33 ) n/a (303 ) Plan Assets and Investment Policy The weighted-average asset allocation of the Pension Plans’ assets at June 30, 2019 was as 81% fixed income securities and 19% cash equivalents. As discussed above, in connection with the MSGE Distribution, the Company only retained liabilities associated with unfunded and unqualified pension plans. Thus, the MSGS Pension Plans did not carry any investments as of June 30, 2020 . Prior to the MSGE Distribution , investment allocation decisions had been made by the Company’s Investment and Benefits Committee, which considered investment advice provided by the Company’s external investment consultant. The investment consultant took into account expected long-term risks, returns, 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 considered the pension plans’ liabilities when making investment allocation recommendations. The Company’s Investment and Benefits Committee’s decisions were influenced by asset/liability studies conducted by the external investment consultant who combined actuarial considerations and strategic investment advice. The major investment categories of the pension plan assets are in cash equivalents and long duration fixed income securities that are marked-to-market on a daily basis. As a result, the pension plan assets are subjected to interest-rate risk, specifically to a rising interest rate environment, as the majority of the pension plan assets are invested in long duration fixed income securities. However, the pension plan assets are structured in an asset/liability framework, and consequently, an increase in interest rates would cause a corresponding decrease to the overall liability of the pension plans, thus creating a hedge against rising interest rates. Additional risks involving the asset/liability framework include earning insufficient investment returns to cover future pension plan liabilities and imperfect hedging of such liabilities. In addition, a portion of the long duration fixed income securities portfolio is invested in non-government securities that are subject to credit risk of the issuers who might default on interest and/or principal payments. Investments at Estimated Fair Value The cumulative fair values of the individual plan assets at June 30, 2019 by asset class are as follows: Fair Value Hierarchy June 30, 2019 Fixed income securities: U.S. Treasury Securities I $ 26,238 U.S. corporate bonds II 68,968 Foreign issued corporate bonds II 11,436 Municipal bonds II 396 Money market accounts I 25,927 Total investments measured at fair value $ 132,965 Contributions for Qualified Defined Benefit Pension Plans During the year ended June 30, 2020 , the Company contributed $7,000 to the Cash Balance Pension Plan and $260 to the Union Plan. As a result of the MSGE Distribution , the Company no longer sponsors funded qualified pension plans. Estimated Future Benefit Payments The following table presents estimated future fiscal year benefit payments for the MSGS Pension Plans: Fiscal year ending June 30, 2021 $ 3,050 Fiscal year ending June 30, 2022 320 Fiscal year ending June 30, 2023 300 Fiscal year ending June 30, 2024 350 Fiscal year ending June 30, 2025 520 Fiscal years ending June 30, 2025 – 2029 2,520 Defined Contribution Pension Plans Prior to the MSGE Distribution , the Company sponsored The Madison Square Garden 401(k) Savings Plan (the “401(k) Plan”), which is a multiple employer plan and the MSG S&E, LLC Excess Savings Plan (collectively referred to as the “Savings Plans”) and The Madison Square Garden 401(k) Union Plan (the “Union Savings Plan”), which is also a multiple employer plan. As a result of the MSGE Distribution , the Savings Plans and Union Savings Plan were transferred to MSG Entertainment . However, MSG Sports employees continue to participate in the 401(k) Plan. In addition, pursuant to the Employee Matters Agreement the Company established MSG Sports LLC Excess Savings Plan to provide non-qualified retirement benefits to eligible MSG Sports employees and assumed the liabilities associated with MSG Sports employees as of the MSGE Distribution Date of the MSG S&E, LLC Excess Savings Plan. Expenses related to the Savings Plans that are included in the accompanying consolidated statements of operations for the years ended June 30, 2020 , 2019 and 2018 are as follows: Years Ended June 30, 2020 2019 2018 Continuing Operations $ 4,674 $ 7,925 $ 6,248 Discontinued Operations 1,411 2,712 2,323 Total Savings Plan Expenses $ 6,085 $ 10,637 $ 8,571 For the years ended June 30, 2020 , 2019 and 2018 , expenses related to the Union Savings Plan included in the accompanying consolidated statements of operations were $526 , $521 and $533 , respectively. These amounts have been classified in the consolidated statements of operations as discontinued operations for all periods presented. 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, 2020 , 2019 and 2018 , 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, 2020 and 2019 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 2020 2019 2020 2019 2018 Surcharge Imposed Expiration Date of CBA National Basketball Association Players’ Pension Plan 83-2172122 001 Yellow Yellow Implemented $ 3,780 $ 3,217 $ 1,932 No 6/2024 (with certain termination rights becoming effective 6/2023) as of as of 2/1/2019 2/1/2018 National Hockey League Players’ Retirement Benefit Plan 46-2555356 001 Green Green No 1,150 1,197 1,200 No 9/2026 as of as of 4/30/2019 4/30/2018 All Other Multiemployer Defined Benefit Pension Plans 398 381 402 $ 5,328 $ 4,795 $ 3,534 The Company was not listed as providing more than 5 percent of the total contributions in any Form 5500 for the years ended June 30, 2020, 2019 and 2018. Multiemployer Defined Contribution Pension Plans and Multiemployer Plans That Provide Health and Welfare Benefits The Company contributed $1,200 , $1,066 and $973 for the years ended June 30, 2020 , 2019 and 2018 , respectively, to multiemployer defined contribution pension plans. In addition, the Company contributed $2,559 , $2,466 and $2,198 for the years ended June 30, 2020 , 2019 and 2018 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation | Share-based Compensation The Company has two share-based compensation plans: the 2015 Employee Stock Plan (the “Employee Stock Plan”) and the 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 the Company’s 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 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 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 shares, restricted stock units, stock appreciation rights and other equity-based awards. The Company may grant awards for up to 160 shares of the Company’s 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 upon the date of grant. Unless otherwise provided in an applicable award agreement, 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. In connection with the MSGE Distribution , pursuant to the terms of the incentive plans and award agreements, (i) each holder of an RSU and performance RSU (“PSU”) granted under the Employee Stock Plan received one MSG Entertainment RSU or PSU in respect of every one Company RSU or PSU owned on the Record Date and continues to be entitled to a share of the Company’s Class A Common Stock (or cash or other property) for each Company RSU or PSU in accordance with the existing award agreement, (ii) one share of MSG Entertainment Class A Common Stock was issued under the MSG Entertainment Non-Employee Director Plan in respect of every one RSU outstanding under the Company’s Non-Employee Director Plan, which remain outstanding and continue to be entitled to a share of the Company’s Class A Common Stock (or cash or other property) in accordance with the existing award agreement, and (iii) each option to purchase the Company’s Class A Common Stock became two options: one option to acquire MSG Entertainment Class A Common Stock and one option to acquire the Company’s Class A Common Stock. The existing exercise price was allocated between the Company’s options and the new MSG Entertainment options based upon the volume-weighted average prices of the MSG Entertainment Class A Common Stock and the Company’s Class A Common Stock using the 10 -day volume weighted average trading price immediately following the MSGE Distribution , and the underlying share amount was consistent with the one -to- one distribution ratio in the MSGE Distribution. Other than the split of the options and the allocation of the existing exercise price, there were no additional adjustments to the existing options in connection with the MSGE Distribution . The Company’s RSUs/PSUs and/or stock options held by individuals who are solely MSG Entertainment employees will not be expensed by the Company; however, such RSUs/PSUs and/or stock options do have a dilutive effect on earnings (loss) per share available to the Company’s common stockholders. 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, in addition to continued employment, the Company uses the graded-vesting method to recognize share-based compensation expense. Share-based compensation expense was recognized in the consolidated statements of operations as a component of direct operating expenses or selling, general and administrative expenses. Share-based compensation expense recorded during the years ended June 30, 2020 , 2019 and 2018 was $48,693 , $49,113 and $40,594 , respectively. There were no costs related to share-based compensation in continuing operations that were capitalized for the years ended June 30, 2020 , 2019 and 2018 . As of June 30, 2020 , there was $18,851 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 approximately 1.9 years for unvested RSUs and PSUs. In addition, the Company had $7,171 of unrecognized compensation cost related to unvested stock options held by the Company’s employees, which is expected to be recognized over a weighted-average period of approximately 2.1 years as of June 30, 2020 . Share-based compensation expense for discontinued operations during the years ended June 30, 2020 , 2019 and 2018 was $8,303 , $10,361 and $6,969 , respectively. Restricted Stock Units Award Activity The following table summarizes activity related to the Company’s RSUs and PSUs, held by the Company and MSG Entertainment employees, for the year ended June 30, 2020 : Number of Weighted-Average Fair Value Per Share At Date of Grant (a) Nonperformance Based Vesting RSUs PSUs and Performance Based Vesting Unvested award balance as of June 30, 2019 229 359 $ 252.02 Granted 171 116 $ 243.55 Vested (111 ) (125 ) $ 214.86 Forfeited (14 ) (23 ) $ 258.32 Unvested award balance as of June 30, 2020 275 327 $ 262.13 _________________ (a) Weighted-average fair value per share at date of grant as of June 30, 2019 and for activity prior to the MSGE Distribution Date does not reflect any adjustment associated with the MSGE Distribution . See above for a discussion of the treatment of RSUs and PSUs in connection with the MSGE Distribution . The fair value of RSUs and PSUs that vested during the year ended June 30, 2020 was $60,282 . Upon delivery, RSUs and PSUs granted under the 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, 104 of these RSUs and PSUs, with an aggregate value of $26,777 were retained by the Company and the taxes paid are reflected as financing activity in the accompanying consolidated statement of cash flows for the year ended June 30, 2020 . The fair value of RSUs and PSUs that vested during the years ended June 30, 2019 and 2018 was $51,350 and $76,226 , respectively. The weighted-average fair value per share at grant date of RSUs and PSUs granted during the years ended June 30, 2019 and 2018 was $304.53 and $214.08 , respectively. Stock Options Award Activity The following table summarizes activity related to the Company’s stock options for the year ended June 30, 2020 : Number of Weighted-Average Exercise Price Per Share (a) Weighted-Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value Time Vesting Options Balance as of June 30, 2019 543 $ 325.47 Granted — $ — Balance as of June 30, 2020 543 $ 225.79 6.06 $ 104 Exercisable as of June 30, 2020 175 $ 207.90 6.37 $ 69 _________________ (a) Weighted-average exercise price per share as of June 30, 2019 and for activity prior to the MSGE Distribution Date does not reflect any adjustment associated with the MSGE Distribution . See above for a discussion of the treatment of options in connection with the MSGE Distribution . During the year ended June 30, 2019, the Company granted 449 stock options that consisted of market priced stock options and premium priced stock options. The exercise prices of the premium priced stock options were set at a 10% and a 25% premium to the closing stock price at the date of grant. These stock options vest ratably over four years and are being expensed on a straight-line basis over the vesting period. The maximum contractual term is 7.5 years . The Company calculated the fair value of the market priced options on the date of grant using the Black-Scholes option pricing model and the premium priced options using the Monte Carlo Simulation. The following are key assumptions used to calculate the weighted-average grant date fair value of the stock options: Market Price 10% Premium 25% Premium Weighted-average grant date fair value $ 79.99 $ 69.33 $ 55.64 Expected term 4.98 years 5.10 years 5.29 years Expected volatility 22.11 % 22.11 % 22.11 % Risk-free interest rate 3.02 % 3.11 % 3.11 % The expected terms of the premium priced options were estimated using the simplified method but takes into account that the options are out-of-the-money at grant date and therefore likely to be exercised later. The risk-free interest rate for the premium priced options was determined using a 7.50 year rate, different from the 4.98 year rate used to determine the market priced stock options. |
Stock Repurchase Program
Stock Repurchase Program | 12 Months Ended |
Jun. 30, 2020 | |
Stock Repurchase Program [Abstract] | |
Stock Repurchase Program | 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, 2020 , the Company did not engage in any share repurchase activities under its share repurchase program . As of June 30, 2020 , the Company had $259,639 of availability remaining under its stock repurchase authorization. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions As of June 30, 2020 , 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 3.5% of the Company’s outstanding Class A Common Stock (inclusive of options exercisable within 60 days of the date hereof). Such shares of the Company’s Class A Common Stock and Class B Common Stock, collectively, represent approximately 70.9% of the aggregate voting power of the Company’s outstanding common stock. Members of the Dolan family are also the controlling stockholders of MSG Entertainment , MSG Networks and AMC Networks Inc. (“ AMC Networks ”). Current Related Party Arrangements The Company is party to the following agreements and/or arrangements with MSG Entertainment and MSG Networks , as applicable: • Sponsorship sales and service representation agreements pursuant to which MSG Entertainment has the exclusive right and obligation to sell the Company’s sponsorships for an initial stated term of 10 years for a commission; • Team sponsorship allocation agreement with MSG Entertainment , pursuant to which teams continue receiving an allocation of sponsorship and signage revenues associated with the sponsorship agreements that existed at the MSGE Distribution Date ; • Arena License Agreements pursuant to which MSG Entertainment (i) provides the right to use The Garden for games of the Knicks and Rangers for a 35 -year term in exchange for arena license fees, (ii) shares revenues collected for suite licenses, (iii) operates and manages the sale of the sports teams merchandise at The Garden for a commission, (iv) operates and manages the sale of food and beverage concessions and catering services during the Knicks and Rangers home games, (v) provides day of game services that were historically provided prior to the MSGE Distribution , and (vi) provides other general services within The Garden; • Media rights agreements, that the Company and MSG Networks entered into in connection with the MSGS Distribution , providing MSG Networks with local telecast rights for the Knicks and Rangers Knicks for a 20 -year term in exchange for media rights fees; • Transition Services Agreement (the “ TSA ”) pursuant to which the Company receives certain services from MSG Entertainment , such as information technology, accounts payable and payroll, human resources, and other corporate functions, as well as the executive support services, in exchange for service fees; • A services agreement with MSG Networks , pursuant to which the Company provides certain legal services to MSG Networks (the “ Current MSGN Services Agreement ”); • Sublease agreement, pursuant to which the Company leases an office space from MSG Entertainment ; • Group ticket sales representation agreement, pursuant to which MSG Entertainment appointed the Company as its sales and service representative to sell group ticket packages related to MSG Entertainment events in exchange for a commission; • Single night rental commission agreement, pursuant to which the Company may, from time to time, sell (or make referrals for sales of) licenses for the use of suites at The Garden for individual MSG Entertainment events in exchange for a commission; • The DDTL Facilities with MSG Entertainment that provide for a $110,000 and $90,000 senior unsecured delayed draw term loan facilities, for the Knicks and Rangers, respectively. See Note 13 for more information; • Aircraft sharing agreements pursuant to which MSG Entertainment has agreed from time to time to make its aircraft and an aircraft it leases from another related party available to the Company for lease on a “time sharing” basis; • Other agreements with MSG Entertainment entered into in connection with the MSGE Distribution , including a distribution agreement, a tax disaffiliation agreement, an employee matters agreement, a trademark license agreement and certain other arrangements; and • Other agreements with MSG Networks entered into in connection with the MSGE Distribution , including a tax disaffiliation agreement, an employee matters agreement and certain other arrangements. In addition, the Company shares certain executive support costs, including office space, executive assistants, security and transportation costs for: (i) the Company’s Executive Chairman with MSG Entertainment and MSG Networks and (ii) the Company’s Vice Chairman with AMC Networks , MSG Entertainment and MSG Networks . Additionally, the Company, MSG Entertainment , MSG Networks and AMC Networks agreed on an allocation of the costs of certain personal aircraft and helicopter use by their shared executives. From time to time the Company has entered into, and is expected to continue to enter into, arrangements with 605, LLC. Kristin A. Dolan, a director of the Company and spouse of James L. Dolan, is the founder and Chief Executive Officer of 605, LLC. James L. Dolan, the Company’s Executive Chairman and a director, and Kristin A. Dolan own 50% of 605, LLC. 605, LLC provides audience measurement and data analytics services to the Company and its subsidiaries in the ordinary course of business. Related Party Arrangements Prior to the MSGE Distribution Following the MSGE Distribution , except as otherwise noted, the Company is no longer party to the arrangements described below. However, the amounts associated with such arrangements are reflected in the Company’s results of operations for the periods prior to the MSGE Distribution . The Company had various agreements with MSG Networks , including an advertising sales representation agreement and a services agreement (the “ Prior MSGN Services Agreement ”). Pursuant to the Prior MSGN Services Agreement , which was effective July 1, 2019, the Company provided certain services to MSG Networks , such as information technology, accounts payable and payroll, human resources, and other corporate functions, as well as the executive support services described below, in exchange for service fees. MSG Networks also provided certain services to the Company, in exchange for service fees. Effective as of the MSGE Distribution , this agreement is now between MSG Entertainment and MSG Networks . The Company separately entered into the Current MSGN Services Agreement . See “— Current Related Party Arrangements .” The Company shared 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 . Additionally, the Company, MSG Networks and AMC Networks agreed on an allocation of the costs of certain personal aircraft and helicopter use by their shared executives. Following the MSGE Distribution , the Company also shares these expenses with MSG Entertainment . See “— Current Related Party Arrangements .” Prior to September 2018, the Company had an arrangement with the Dolan Family Office, LLC (“ DFO ”), an entity owned and controlled by Charles F. Dolan, AMC Networks and MSG Networks providing for the sharing of certain expenses associated with executive office space which was available to James L. Dolan (the Executive Chairman and a director of the Company, the Executive Chairman, Chief Executive Officer and a director of MSG Entertainment , the Executive Chairman and a director of MSG Networks , and a director of AMC Networks), Charles F. Dolan (the father of James L. Dolan and the Executive Chairman and a director of AMC Networks and a director of the Company, MSG Entertainment and MSG Networks ), and the DFO . The Company was a party to various Aircraft Support Services Agreements (the “Support Agreements”), pursuant to which the Company provided certain aircraft support services to entities controlled by (i) James L. Dolan, (ii) Charles F. Dolan, and (iii) Patrick F. Dolan, the son of Charles F. Dolan and brother of James L. Dolan. On December 17, 2018, the Company terminated the agreement providing services to the entity controlled by Charles F. Dolan, and entered into a new agreement with Charles F. Dolan and certain of his children, who are siblings of James L. Dolan, specifically: Thomas C. Dolan (a director of the Company), Deborah Dolan-Sweeney, Patrick F. Dolan, Marianne Dolan Weber (a director of the Company), and Kathleen M. Dolan, which provided substantially the same services as the prior agreement for a new aircraft. In addition, the Company was party to reciprocal time sharing/dry lease agreements with each of (i) Quart 2C, LLC (“ Q2C ”), a company controlled by James L. Dolan and Kristin A. Dolan, his spouse and a director of the Company, and (ii) Charles F. Dolan and Sterling Aviation, LLC, a company controlled by Charles F. Dolan (collectively, “ CFD ”), pursuant to which the Company has agreed from time to time to make its aircraft available to each of Q2C and CFD , and Q2C and CFD have agreed from time to time to make their aircraft available to the Company. Pursuant to the terms of the agreements, Q2C and/or CFD may lease on a non-exclusive, “time sharing” basis, the Company’s Gulfstream Aerospace G550 aircraft (the “G550 Aircraft”). On December 17, 2018, in connection with the purchase of a new aircraft (as noted above), the Company replaced the dry lease agreement with CFD with a new dry lease agreement with Sterling2k LLC, an entity owned and controlled by Deborah Dolan-Sweeney, the daughter of CFD and the sister of James L. Dolan, which provides for the Company’s usage of the new aircraft on the same terms as the prior agreement. On May 6, 2019, the Company entered into a dry lease agreement with Brighid Air, LLC (“Brighid Air”), a company owned and controlled by Patrick F. Dolan, pursuant to which the Company was permitted to lease on a non-exclusive basis Brighid Air’s Bombardier BD100-1A10 Challenger 350 aircraft (the “Challenger”). In connection with the dry lease agreement, on May 6, 2019, the Company also entered into a Flight Crew Services Agreement (the “Flight Crew Agreement”) with DFO , an entity owned and controlled by Charles F. Dolan, pursuant to which the Company was permitted to utilize pilots employed by DFO for purposes of flying the Challenger when the Company was leasing that aircraft under the Company’s dry lease agreement with Brighid Air. The Company and each of MSG Networks and AMC Networks were party to certain aircraft time sharing agreements, pursuant to which the Company agreed from time to time to make its aircraft available to MSG Networks and/or AMC Networks for lease on a “time sharing” basis. In addition to the aircraft arrangements described above, certain executives of the Company were party to aircraft time sharing agreements, pursuant to which the Company agreed from time to time to make certain aircraft available for lease on a “time sharing” basis for personal use in exchange for payment of actual expenses of the flight (as listed in the agreement). Revenues and Operating Expenses (Credits) The following table summarizes the composition and amounts of the transactions with the Company’s affiliates, primarily with MSG Networks. These amounts are reflected in revenues and operating expenses in the accompanying consolidated statements of operations for the years ended June 30, 2020 , 2019 and 2018 : Years Ended June 30, 2020 2019 2018 Revenues $ 138,881 $ 148,207 $ 142,319 Operating expenses (credits): Corporate general and administrative expenses, net — MSG Networks $ (8,376 ) $ (10,362 ) $ (9,961 ) Corporate general and administrative expenses, net — MSG Entertainment 9,530 — — Costs associated with the Sponsorship sales and service representation agreements 2,486 — — Other operating expenses (credits), net (337 ) (693 ) (233 ) Revenues Revenues from related parties primarily consist of local media rights recognized from the licensing of team-related programming to MSG Networks under the media rights agreements covering the Knicks and Rangers, which provide MSG Networks with exclusive media rights to team games in their local markets. In addition, pursuant to the group ticket sales representation agreement, the Company charges MSG Entertainment a share of the cost of the Company’s sales and service staff and related overhead, which are included in the revenues from related parties in the fiscal year 2020. Additionally, pursuant to this agreement, the Company earns commission on group ticket packages sales related to MSG Entertainment events. The Company has not earned such commission during the fiscal year 2020. Corporate General and Administrative Expenses, net — MSG Networks The Company’s corporate overhead expenses that were charged to MSG Networks prior to MSGE Distribution are primarily related to centralized functions, including executive compensation, finance, treasury, tax, internal audit, legal, information technology, human resources and risk management functions. These charges are reflected in the Company’s results of operations for the periods prior to the MSGE Distribution as they do not meet the criteria for inclusion in discontinued operations. Except for certain legal services, following the MSGE Distribution , the Company no longer provides these services to MSG Networks. Corporate general and administrative expense, net — MSG Networks reflects charges from the Company to MSG Networks under the Current MSGN Services Agreement and Prior MSGN Services Agreement of $8,474 , $10,467 , and $9,474 , net of general and administrative costs charged to the Company by MSG Networks, for the years ended June 30, 2020, 2019 and 2018, respectively. Corporate general and administrative expenses, net — MSG Entertainment Corporate general and administrative expense, net — MSG Entertainment reflects charges of $8,916 from MSG Entertainment pursuant to the TSA for certain business functions that were previously performed by internal resources. These services include information technology, accounting, accounts payable, payroll, tax, legal, human resources, insurance and risk management, investor relations, corporate communications, benefit plan administration and reporting, and internal audit. Costs associated with the Sponsorship sales and service representation agreements Pursuant to the Sponsorship sales and service representation agreements, MSG Entertainment charges the Company sales commission fees and sponsorship fulfillment costs, as well as costs of MSG Entertainment sales and service staff and overhead associated with the sales of sponsorship assets. Other Operating Expenses, net The Company and its related parties enter into transactions with each other in the ordinary course of business. Other operating expenses, net include net charges relating to (i) reciprocal aircraft arrangements between the Company and each of Q2C and CFD and (ii) time sharing agreements with MSG Networks and AMC Networks . Following the MSGE Distribution , the Company no longer provides these services to MSG Networks. However, these charges are reflected in the Company’s results of operations for the periods prior to the MSGE Distribution as they but which do not meet the criteria for inclusion in discontinued operations. Discontinued operations Related party transactions included in income (loss) from discontinued operations in the accompanying consolidated statements of operations include the following (i) revenues from related parties of $13,106 , $16,199 , and $14,052 for the years ended June 30, 2020, 2019 and 2018, respectively, (ii) operating expenses charged by related parties of $897 , $3,542 , and $6,088 for the years ended June 30, 2020, 2019 and 2018, respectively, (iii) interest income from nonconsolidated affiliates of $3,105 and $5,696 , for the years ended June 30, 2019 and 2018, respectively, and (iv) equity in earnings (loss) of equity-method investments of $(3,739) , $7,062 , and $(7,770) for the years ended June 30, 2020, 2019 and 2018, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 22, 2017, new tax legislation, commonly referred to as the Tax Cuts and Jobs Act (“ TCJA ”), was enacted, which significantly changed the existing U.S. tax laws, including a reduction in the corporate federal income tax rate from 35% to 21% effective January 1, 2018. During the second quarter of fiscal year 2018, the Company was required to recognize the effect of tax law changes in the period of enactment even though certain key aspects of the new law became effective January 1, 2018. For the fiscal year ended June 30, 2018, the Company used a blended statutory federal income tax rate of 28% based upon the number of days that it was taxed at the former rate of 35% and the number of days taxed at the new rate of 21% . Income tax expense (benefit) attributable to continuing operations is comprised of the following components: Years Ended June 30, 2020 2019 2018 Current expense: Federal $ (676 ) $ — $ — State and other — 357 — (676 ) 357 — Deferred expense (benefit): Federal 13,871 (7,320 ) (55,321 ) State and other 7,398 (5,656 ) (4,071 ) 21,269 (12,976 ) (59,392 ) Income tax expense (benefit) $ 20,593 $ (12,619 ) $ (59,392 ) The income tax expense (benefit) attributable to continuing operations 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, 2020 2019 2018 Federal tax benefit at statutory federal rate $ (20,590 ) $ (12,734 ) $ (5,973 ) State income taxes, net of federal benefit (7,332 ) (2,873 ) (1,909 ) Change in the estimated applicable tax rate used to determine deferred taxes 391 (1,055 ) (50,169 ) Nondeductible disability insurance premiums expense 1,027 482 1,436 Federal tax credits (1,480 ) (1,900 ) — GAAP income of consolidated partnership attributable to non-controlling interests 492 483 599 Tax effect of indefinite-lived intangible amortization 204 204 159 Change in valuation allowance 46,310 — — Nondeductible officers’ compensation (a) 4,287 8,521 — Nondeductible expenses 762 596 377 Excess tax benefit related to shared based-payments awards (3,478 ) (4,555 ) (1,671 ) Other — 212 (2,241 ) Income tax expense (benefit) $ 20,593 $ (12,619 ) $ (59,392 ) _________________ (a) The TCJA included changes to Internal Revenue Code Section 162(m), including elimination of the exception for qualified performance-based compensation over the $1,000 annual limit. Accordingly, effective January 1, 2018, all compensation for certain officers in excess of $1,000 is nondeductible. The tax effects of temporary differences which give rise to significant portions of the deferred tax assets and liabilities at June 30, 2020 and 2019 are as follows: June 30, 2020 2019 Deferred tax asset: Net operating loss carryforwards $ 44,935 $ 57,970 Tax credit carryforwards 6,795 5,673 Accrued employee benefits 38,736 36,895 Accrued expenses 4,226 24,643 Restricted stock units and stock options 6,186 7,440 Other 2,837 4,849 Total deferred tax assets $ 103,715 $ 137,470 Less valuation allowance (48,133 ) (66,297 ) Net deferred tax assets $ 55,582 $ 71,173 Deferred tax liabilities: Intangible and other assets $ (101,202 ) $ (100,378 ) Prepaid expenses (7,164 ) (6,279 ) Investments (4,937 ) (965 ) Total deferred tax liabilities $ (113,303 ) $ (107,622 ) Net deferred tax liability $ (57,721 ) $ (36,449 ) 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 federal net operating loss carryforward (“ NOL ”) and its future deductible temporary differences. Due primarily to the uncertainty related to operating disruptions due to COVID-19, in the fourth quarter of the fiscal year ended June 30, 2020, management concluded that is more likely than not that the Company will not realize the benefit for a portion of its deferred tax assets. The Company will continue to assess the realizability of its deferred tax assets on a quarterly basis. The NOL as of June 30, 2020 is approximately $122,000 , including $46,000 , that will expire in 2036 . The Company does not have any recorded unrecognized tax benefit for uncertain tax positions as of June 30, 2020 and 2019 . Prior to the MSGE Distribution , MSG Entertainment's collection for ticket sales, sponsorships and suite rentals in advance were recorded as deferred revenue and were recognized as revenues when earned for both accounting and tax purposes. The tax recognition on most of these deferred revenues was accelerated to the MSGE Distribution Date . The estimated amount of tax on the acceleration of such deferred revenue is approximately $56,000 and will be the responsibility of the Company. MSG Entertainment will not reimburse the Company for such taxes. However, the Company completely offset the taxable income of discontinued operations, including taxable income resulting from the tax acceleration of deferred revenue with NOLs. The deferred tax assets for such NOLs had a full valuation allowance. Therefore, both the deferred tax asset and valuation allowance were reduced by $68,000 with no residual tax expense. In addition, during the quarter ended June 30, 2020 the Company recorded a valuation allowance increase of $46,310 that is included in tax expense attributable to continuing operations, which partially offsets the decrease recorded in discontinued operations. As of June 30, 2019, the valuation allowance attributable to continuing operations equals the amount of historical valuation allowance in excess of the amount required for discontinued operations. Prior to the MSGE Distribution , the Company and MSG Entertainment entered into a Tax Disaffiliation Agreement (“ TDA ”) that governs the parties’ respective rights, responsibilities and obligations with respect to taxes and tax benefits. Under the TDA , the Company will generally be responsible for all U.S. federal, state, local and other applicable income taxes of MSG Entertainment for any taxable period or portion of such period ending on or before the MSGE Distribution Date . The Company was notified during the third quarter of fiscal year 2018 that the Internal Revenue Service (“IRS”) was commencing an audit of the federal income tax return for the year ended June 30, 2016. In October 2019, the Company was informed by the IRS that the audit resulted in no changes. The Company was notified in April 2020 that the City of New York was commencing an audit of the state income tax returns for the fiscal years ended June 30, 2016 and 2017. The Company does not expect the examination, when finalized, to result in material changes. The federal and state statute of limitations are currently open on the Company’s tax returns for 2017 and 2016, respectively, and forward. |
Concentrations of Risk
Concentrations of Risk | 12 Months Ended |
Jun. 30, 2020 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Risk | 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. 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, 2020 2019 Customer A 55 % 78 % Customer B 11 % 2 % The Company had non-affiliated revenues from a customer that represented 13% , 13% and 12% of consolidated revenues for the years ended June 30, 2020 , 2019 and 2018 . Revenues from MSG Networks amounted to $138,173 , $148,178 and $142,281 for the years ended June 30, 2020 , 2019 and 2018 , which represent 23% , 20% and 20% , respectively, of the Company’s consolidated revenues (see Note 17 ). As of June 30, 2020 , approximately 94 full-time and part-time employees, who represent approximately 11% of the Company’s workforce, are subject to CBAs. The current NHL CBA expires on September 15, 2022, but the NHL and NHLPA have recently agreed on terms by which the CBA will be extended through and including September 15, 2026 (with the possibility of an additional one year extension in certain circumstances). See Note 21 for summary of the principal aspects of the new NHL CBA and revenue sharing plan. The current NBA CBA expires after the 2023-24 season (although the NBA and NBPA each has the right to terminate the CBA effective following the 2022-23 season). In addition, the NBA and the NBPA currently have the right to terminate the CBA through October 15, 2020 (unless extended). There are no union employees subject to CBAs that expired as of June 30, 2020 and no union employees subject to CBAs that will expire by June 30, 2021 if they are not extended prior thereto. |
Interim Financial Information (
Interim Financial Information (Unaudited) | 12 Months Ended |
Jun. 30, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Interim Financial Information (Unaudited) | Interim Financial Information (Unaudited) The following is a summary of the Company’s selected quarterly financial data for the years ended June 30, 2020 and 2019 : Three Months Ended Year ended June 30, 2020 September 30, December 31, March 31, June 30, 2019 2019 2020 2020 Revenues $ 49,850 $ 292,798 $ 267,631 $ (6,960 ) $ 603,319 Operating expenses 109,174 293,031 257,006 37,974 697,185 Operating income (loss) $ (59,324 ) $ (233 ) $ 10,625 $ (44,934 ) $ (93,866 ) Income (loss) from continuing operations $ (40,191 ) $ (3,657 ) $ 4,183 $ (78,976 ) $ (118,641 ) Income (loss) from discontinued operations, net of taxes (40,475 ) 96,006 (145,249 ) (504 ) (90,222 ) Net income (loss) $ (80,666 ) $ 92,349 $ (141,066 ) $ (79,480 ) $ (208,863 ) Net income (loss) attributable to Madison Square Garden Sports Corp.’s stockholders $ (79,981 ) $ 94,141 $ (118,029 ) $ (78,519 ) $ (182,388 ) Earnings (loss) per share: Basic Continuing operations $ (1.67 ) $ (0.13 ) $ 0.20 $ (3.26 ) $ (4.86 ) Discontinued operations $ (1.69 ) $ 4.07 $ (5.12 ) $ (0.01 ) $ (2.76 ) Basic earnings (loss) per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ (3.36 ) $ 3.94 $ (4.92 ) $ (3.27 ) $ (7.62 ) Diluted Continuing operations $ (1.67 ) $ (0.13 ) $ 0.20 $ (3.26 ) $ (4.86 ) Discontinued operations $ (1.69 ) $ 4.06 $ (5.12 ) $ (0.01 ) $ (2.76 ) Diluted earnings (loss) per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ (3.36 ) $ 3.93 $ (4.92 ) $ (3.27 ) $ (7.62 ) Three Months Ended Year ended June 30, 2019 September 30, December 31, March 31, June 30, 2018 2018 2019 2019 Revenues $ 50,828 $ 286,931 $ 323,495 $ 68,150 $ 729,404 Operating expenses 84,034 298,828 280,608 124,129 787,599 Operating income (loss) $ (33,206 ) $ (11,897 ) $ 42,887 $ (55,979 ) $ (58,195 ) Income (loss) from continuing operations $ (24,085 ) $ (12,714 ) $ 26,260 $ (37,483 ) $ (48,022 ) Income (loss) from discontinued operations, net of taxes (9,963 ) 88,682 7,903 (41,717 ) 44,905 Net income (loss) $ (34,048 ) $ 75,968 $ 34,163 $ (79,200 ) $ (3,117 ) Net income (loss) attributable to Madison Square Garden Sports Corp.’s stockholders $ (32,212 ) $ 81,599 $ 35,271 $ (73,231 ) $ 11,427 Earnings (loss) per share: Basic Continuing operations $ (0.99 ) $ (0.50 ) $ 1.12 $ (1.56 ) $ (1.92 ) Discontinued operations $ (0.37 ) $ 3.93 $ 0.36 $ (1.52 ) $ 2.40 Basic earnings (loss) per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ (1.36 ) $ 3.43 $ 1.48 $ (3.08 ) $ 0.48 Diluted Continuing operations $ (0.99 ) $ (0.50 ) $ 1.12 $ (1.56 ) $ (1.91 ) Discontinued operations $ (0.37 ) $ 3.92 $ 0.36 $ (1.52 ) $ 2.39 Diluted earnings (loss) per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ (1.36 ) $ 3.42 $ 1.48 $ (3.08 ) $ 0.48 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events NHL CBA In July 2020, the NHL and NHLPA agreed to extend the NHL CBA through and including September 15, 2026 (with the possibility of an additional one-year extension in certain circumstances) with certain modifications. The principal aspects of the NHL CBA and revenue sharing plan are expected to remain unchanged except that the new NHL CBA limits the amount of deductions to be withheld from player salaries each year; if annual excess deductions from player salaries are insufficient to limit league-wide player salaries to 50% of that season’s league-wide revenues, any shortfall will be carried forward to future seasons and remain due from the players to the league. Knicks Unsecured Credit Facility On August 11, 2020, the Company renewed Knicks Unsecured Credit Facility, which matures on September 24, 2021. See Note 13 for more information. |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Jun. 30, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II Valuation and Qualifying Accounts | 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, 2020 Allowance for doubtful accounts (a) $ (1,814 ) $ (7,170 ) $ — $ 8,804 (b) $ (180 ) Deferred tax valuation allowance (a) (75,701 ) (46,514 ) — 74,082 (c) (48,133 ) $ (77,515 ) $ (53,684 ) $ — $ 82,886 $ (48,313 ) Year ended June 30, 2019 Allowance for doubtful accounts $ (777 ) $ (1,426 ) $ — $ 389 $ (1,814 ) Deferred tax valuation allowance (88,246 ) 8,708 3,837 — (75,701 ) $ (89,023 ) $ 7,282 $ 3,837 $ 389 $ (77,515 ) Year ended June 30, 2018 Allowance for doubtful accounts $ (601 ) $ (647 ) $ — $ 471 $ (777 ) Deferred tax valuation allowance (218,639 ) 130,393 (d) — — (88,246 ) $ (219,240 ) $ 129,746 $ — $ 471 $ (89,023 ) _________________ (a) Includes amounts classified as discontinued operations on the consolidated balance sheet. (b) Includes amounts reflected in discontinued operations of $8,769 . (c) The Company completely offset the taxable income of discontinued operations, including taxable income resulting from the acceleration of deferred revenue with NOLs. The deferred tax assets for such NOLs had a full valuation allowance. Therefore, both the deferred tax asset and valuation allowance were reduced with no residual tax expense. The valuation allowance reduction relating to the NOL utilization was $68,000 . (d) Net decrease in valuation allowance reflects $51,015 of reduction to net deferred tax liabilities in connection with the lower federal income tax rate of 21% and other of $2,453 . |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Reclassifications | Reclassifications Assets and liabilities related to the MSGE Distribution on the Company’s consolidated balance sheet as of June 30, 2019 have been reclassified as assets and liabilities of discontinued operations (see Note 3 ). All assets and liabilities related to discontinued operations are excluded from the footnotes unless otherwise noted. In addition, the historical results of Madison Square Garden Entertainment Corp. have been reflected in the accompanying statements of operations for the years ended June 30, 2020, 2019 and 2018 as discontinued operations. |
Principles of Consolidation | Principles of Consolidation The Company reports on a fiscal year basis ending on June 30 th . In these consolidated financial statements, the years ended on June 30, 2020 , 2019 , and 2018 are referred to as “fiscal year 2020 ”, “fiscal year 2019 ”, and “fiscal year 2018 ”, respectively. The consolidated financial statements of the Company include the accounts of Madison Square Garden Sports Corp. and its subsidiaries. For consolidated subsidiaries where the Company’s ownership is less than 100%, 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 sheets, consolidated statements of operations and consolidated statements of comprehensive income (loss), respectively. All significant intracompany transactions and accounts within the Company’s consolidated financial statements have been eliminated. |
Use of Estimates | Use of Estimates The preparation of the accompanying financial statements in conformity with generally accepted accounting principles (“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, goodwill, intangible assets, other long-lived assets, deferred tax valuation allowance, 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 | Revenue Recognition See Note 4 for details of accounting policies related to revenue recognition and other disclosures required under Accounting Standards Codification (“ASC”) Topic 606. The Company adopted ASC Topic 606 on July 1, 2018, using the modified retrospective method for all contracts not completed as of the date of adoption. Contracts with Customers All revenue recognized in the consolidated statements of operations is considered to be revenue from contracts with customers in accordance with ASC Topic 606. For the year ended June 30, 2020 , the Company did not have any impairment losses on receivables or contract assets arising from contracts with customers. The Company recognizes revenue when, or as, performance obligations under the terms of a contract are satisfied, which generally occurs when, or as, control of promised goods or services are transferred to customers. Revenue is measured as the amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services (“transaction price”). To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing the most likely amount to which the Company expects to be entitled. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Estimates of variable consideration and the determination of whether to include such estimated amounts in the transaction price are based largely on an assessment of the Company’s anticipated performance and all information that is reasonably available. The Company accounts for taxes collected from customers and remitted to governmental authorities on a net basis and excludes these amounts from revenues. In addition, the Company defers certain costs to fulfill the Company’s contracts with customers to the extent such costs relate directly to the contracts, are expected to generate resources that will be used to satisfy the Company’s performance obligations under the contracts and are expected to be recovered through revenue generated under the contracts. Contract fulfillment costs are expensed as the Company satisfies the related performance obligations. Arrangements with Multiple Performance Obligations The Company has arrangements with multiple performance obligations, such as multi-year sponsorship agreements which may derive revenues within a single arrangement. Payment terms for such arrangements can vary by contract, but payments are generally due in installments throughout the contractual term. The performance obligations included in each sponsorship agreement vary and may include various advertising benefits such as, but not limited to, signage, digital advertising, event or property specific advertising, as well as non-advertising benefits such as suite licenses and event tickets. To the extent the Company’s multi-year arrangements provide for performance obligations that are consistent over the multi-year contractual term, such performance obligations generally meet the definition of a series as provided for under the accounting guidance. If performance obligations are concluded to meet the definition of a series, the contractual fees for all years during the contract term are aggregated and the related revenue is recognized proportionately as the underlying performance obligations are satisfied. The timing of revenue recognition for each performance obligation is dependent upon the facts and circumstances surrounding the Company’s satisfaction of its respective performance obligation. The Company allocates the transaction price for such arrangements to each performance obligation within the arrangement based on the estimated relative standalone selling price of the performance obligation. The Company’s process for determining its estimated standalone selling prices 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 performance obligation. Key factors considered by the Company in developing an estimated standalone selling price for its performance obligations include, but are not limited to, prices charged for similar performance obligations, the Company’s ongoing pricing strategy and policies, and consideration of pricing of similar performance obligations sold in other arrangements with multiple performance obligations. The Company may incur costs such as commissions to obtain its multi-year sponsorship agreements. The Company assesses such costs for capitalization on a contract by contract basis. To the extent costs are capitalized, the Company estimates the useful life of the related contract asset which may be the underlying contract term or the estimated customer life depending on the facts and circumstances surrounding the contract. The contract asset is amortized over the estimated useful life. Principal versus Agent 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. The determination of whether the Company acts as a principal or an agent in a transaction is based on an evaluation of whether the Company controls the good or service before transfer to the customer. When the Company concludes that it controls the good or service before transfer to the customer, the Company is considered a principal in the transaction and records revenue on a gross basis. When the Company concludes that it does not control the good or service before transfer to the customer but arranges for another entity to provide the good or service, the Company acts as an agent and records revenue on a net basis in the amount it earns for its agency service. The Company’s revenue recognition policies that summarize the nature, amount, timing and uncertainty associated with each of the Company’s revenue sources are discussed further in discussion below. The Company’s professional sports teams derive event-related revenues principally from ticket sales which are recognized as the related games occur. The Company’s revenues also include revenue from the license of The Garden’s suites. Suite license arrangements are generally multi-year fixed fee arrangements that include annual fee increases. Payment terms for suite license arrangements can vary by contract, but payments are generally due in installments prior to each license year. The Company’s performance obligation under such arrangements is to provide the licensee with access to the suite when events occur at The Garden. Because suite and club licenses cover both the Knicks and the Rangers games and events that MSG Entertainment presents at The Garden, suite and club rental revenue is shared between us and MSG Entertainment under Arena License Agreements the Company entered into in connection with the MSGE Distribution . Pursuant to the Arena Licenses Agreements, the Knicks and the Rangers are entitled to 35% and 32.5% , respectively, of the revenues received by MSG Entertainment in connection with suite and club licenses. The Company accounts for the performance obligation under these types of arrangements as a series and, as a result, the related suite license fees for all years during the license term are aggregated and revenue is recognized proportionately over the license period as the Company satisfies the related performance obligation. Progress toward satisfaction of the Company’s suite license performance obligations is measured as access to the suite is provided to the licensee for each event throughout the contractual term of the license. Due to the NBA and NHL suspending their season on March 11, and 12, 2020, respectively, suite license holders did not have access to their suites and therefore revenue recognition ceased at this time. Event-related revenue also includes food, beverage and merchandise sales which are recognized at the point goods are provided to customers. Subsequent to the MSGE Distribution Date, pursuant to the Arena License Agreements, the Knicks and the Rangers receive 50% of net profits from the sales of food and beverages during their games at The Garden. Payment is received at the point of sale and sales tax collected from customers is excluded from revenue. In addition to event-related revenue, MSG Sports maintains local media rights arrangements which provide for the licensing of team-related programming to MSG Networks. MSG Sports, pursuant to the terms of the agreements, receives such rights fees in equal monthly installments throughout each license year. The transaction price under these arrangements is variable in nature as certain credit provisions exist to the extent that the teams’ games are unavailable for broadcast during an individual league season. The Company estimates the transaction price at the beginning of each fiscal year, which coincides with the annual contractual term. In estimating the transaction price, the Company considers the contractually agreed upon license fees as well as qualitative considerations with respect to the number of games expected to be available for broadcast by MSG Networks over the upcoming year. The resulting transaction price is allocated entirely to the rights provided for the related contract year and revenue is recognized using an output measure of progress toward satisfaction of the Company’s performance obligations within the contract year, as the underlying benefits are conveyed to the licensee. The Company’s professional sports teams also derive revenue from the distribution of league-wide national and international television contracts and other league-wide revenue sources. The transaction price for each of these revenues is based upon the expected distribution values as communicated by the applicable league. The timing of revenue recognition is dependent on the nature of the underlying performance obligation, which is generally over time. Receipt of league-wide revenues generally occurs at the time of communication or according to a specified timeline. On March 11 and 12, 2020, the NBA and NHL, respectively, suspended their 2019-20 seasons due to COVID-19. At the time the seasons were suspended, the Knicks had 16 games remaining, including eight home games, and the Rangers had 12 games remaining, including five home games. On May 26, 2020, the NHL announced return-to-play plans for 24 teams which began August 1, 2020. The Rangers were among the teams that returned to play in a 24-team tournament. On June 4, 2020, the NBA announced plans to resume play on July 30, 2020 with 22 teams. The Knicks were not among the teams that returned to competition. At this time, league-wide revenues from the 2019-2020 season have not been finalized. As a result, approximately $42,000 of national media rights fees revenues have not been recognized and are deferred revenue obligations pending the completion of the NBA and NHL seasons. MSG Sports also earns revenues from the sale of advertising in the form of venue signage and sponsorships, which are not related to any specific event. The Company’s performance obligations with respect to this advertising are satisfied as the related benefits are delivered over the term of the respective agreements. |
Player Costs and Other Team Personnel Transactions | 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 mid-October through mid-April and October through mid-April, respectively. Annual contractual player salaries are 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 fixed contract period 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 6 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). In addition, the NBA and the NBPA currently have the right to terminate the CBA through October 15, 2020 (unless extended). The current NHL CBA was set to expire on September 15, 2022, but the NHL and NHL Players’ Association (“NHLPA”) have recently agreed on terms by which the CBA will be extended through and including September 15, 2026 (with the possibility of an additional one year extension in certain circumstances). See Note 21 for summary of the principal aspects of the new NHL CBA and revenue sharing plan. The NBA CBA contains a salary floor (i.e., a floor on each team’s aggregate player salaries with a requirement that the team pay any deficiency to the players on its roster) and 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 salary floor (i.e., a floor on each team’s aggregate player salaries) and a “hard” salary cap (i.e., teams may not exceed a stated maximum, which has been adjusted each season thereafter based upon league-wide revenues). |
Advertising Expenses | Advertising Expenses |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes (“ASC Topic 740”). 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. |
Share-based Compensation | Share-based Compensation 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 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 accounts for forfeitures as they occur. In addition, for the Company’s stock option awards, the Company applies the fair value recognition provisions of ASC Topic 718 “ Compensation — Stock Compensation ”. ASC Topic 718 requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The Company determines the fair value as of the grant date. For awards with graded vesting conditions, the values of the awards are determined by valuing all vesting tranches in the aggregate as one award using an average expected term. The Company determines its assumptions for option-pricing models in accordance with ASC Topic 718 and SEC Staff Accounting Bulletin (“SAB”) No. 107, “ Share-Based Payment ” based on the following: • The expected term of stock options is estimated using the simplified method. • The expected risk-free interest rate is based on the U.S. Treasury interest rate which term is consistent with the expected term of the stock options. • The expected volatility is based on the historical volatility of the Company’s stock price. In December 2007, the SEC staff issued SAB No. 110, “ Certain Assumptions Used In Valuation Methods — Expected Term ”. SAB No. 110 allows companies to continue to use the simplified method, as defined in SAB No. 107, to estimate the expected term of stock options under certain circumstances. The simplified method for estimating expected term uses the mid-point between the vesting term and the contractual term of the stock option. The Company has analyzed the circumstances in which the use of the simplified method is allowed. The Company has opted to use the simplified method for stock options the Company granted in fiscal years 2019 and 2018 because management believes that the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term. See Note 15 for more information regarding the Company’s application of the simplified method for stock options the Company granted in fiscal year 2019. |
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. Diluted EPS reflects the effect of the assumed vesting of restricted stock units and exercise of stock options (see Note 15 ) 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. Holders of Class A Common Stock and Class B Common Stock are entitled to receive dividends equally on a per-share basis if and when such dividends are declared. |
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 |
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 $180 and $0 as of June 30, 2020 and 2019 , respectively. |
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, right-of-use assets, 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. 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 as well as 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 a quantitative 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, 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. Subsequent to the adoption of ASU No. 2017-04 in the third quarter of fiscal year 2020, the amount of an impairment loss is measured as the amount by which a reporting unit’s carrying value exceeds its fair value determined in step one, not to exceed the carrying amount of goodwill. Prior to the adoption of ASU No. 2017-04, if the carrying amount of a reporting unit exceeded its fair value, the second step of the goodwill impairment test was performed to measure the amount of impairment loss, if any. The second step of the goodwill impairment test compared 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 exceeded the implied fair value of that goodwill, an impairment loss was recognized in an amount equal to that excess. The implied fair value of goodwill was 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 the same as or one level below the operating segment level. Subsequent to the MSGE Distribution Date, the Company has one operating and reportable segment and one reporting unit for goodwill impairment testing purposes. 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 (i) determines that such an impairment is more likely than not to exist, or (ii) 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 right-of-use lease assets and 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. As a result of operating disruptions due to COVID-19, the Company’s projected cash flows were directly impacted. This disruption along with the macroeconomic industry and market conditions, resulted in the evaluation of whether there was a “triggering event” as of June 30, 2020. Based on the assessment, management determined that it was not more likely than not that an impairment exists and there was no goodwill or intangible asset balance that was impaired as of June 30, 2020. However, the duration and impact of the COVID-19 pandemic may result in additional future impairment charges that management will evaluate as facts and circumstances evolve through time. |
Contingencies and Contingent Consideration | 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 The Company’s acquisition agreement for CLG included a contingent earn-out arrangement, which is 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. |
Defined Benefit Pension Plans and Other Postretirement Benefit Plan | Defined Benefit Pension Plans and Other Postretirement Benefit Plan As more fully described in Note 14 , prior to the MSGE Distribution the Company had both funded and unfunded defined benefit plans, as well as a contributory postretirement benefit plan, covering certain full-time employees and retirees. Currently, the Company has unfunded defined benefit plans, as well as a contributory postretirement benefit plan, covering certain full-time employees and retirees. The expense recognized by the Company is determined using certain assumptions, including the expected long-term rate of return and discount rates, 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 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) , which supersedes existing guidance on accounting for leases in ASC Topic 840, Leases. ASU No. 2016-02, among other things, requires (i) 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) extensive qualitative and quantitative disclosures about leasing activities. The accounting applied by a lessor is largely unchanged from that applied under previous accounting guidance. In January 2018, the FASB issued ASU No. 2018-01, Leases (Topic 842) - Land Easement Practical Expedient for Transition to Topic 842 , which provides a lessee or lessor the option to not assess at transition whether existing land easements, not currently accounted for as leases under the current lease guidance, should be treated as leases under the new standard. In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases and ASU No. 2018-11, Leases (Topic 842) Targeted improvements , which provides an additional (and optional) transition method whereby the new lease standard is applied at the adoption date and recognized as an adjustment to retained earnings. In December 2018, the FASB issued ASU No. 2018-20, Leases (Topic 842) (“ASU 2018-20”), Narrow-Scope Improvements for Lessors , which provided clarification for lessors on how to apply the new leases standard when accounting for sales taxes, certain lessor costs, and certain requirements related to variable payments in contracts. In March 2019, the FASB issued ASU No. 2019-01, Leases (Topic 842) (“ASU 2019-01”), Codification Improvements , which aligned the new leases guidance with existing guidance for fair value of the underlying asset by lessors that are not manufacturers or dealers. It also clarified an exemption for lessors and lessees from a certain interim disclosure requirement associated with adopting the board’s new lease accounting standard. The Company adopted ASU No. 2016-02 on July 1, 2019 and elected to apply the standard as of the beginning of the first quarter of fiscal year 2020 under the modified-retrospective transition approach. In connection with the adoption of this standard, the Company applied the package of practical expedients intended to ease transition for existing leases by not requiring the Company to reassess (i) its initial lease classification conclusions for existing or expired leases, (ii) whether an existing or expired contract is a lease or contains an embedded lease, and (iii) the capitalization of initial direct costs for existing or expired leases. In addition, the Company elected not to use “hindsight” in accordance with ASC Subtopic 842-10-65-1 (g) in assessing lease terms and impairment of right-of-use (“ROU”) assets for existing or expired leases under the new standard. Upon adoption of this standard, the Company recorded initial (i) operating lease ROU assets of $1,270 (ii) current operating lease liabilities of $393 , and (iii) long-term operating lease liabilities of $1,007 . The Company did not record any adjustment to retained earnings. As of July 1, 2019, there were no material finance leases for which the Company was a lessee. See Note 9 for further details on disclosure required under ASC Topic 842. 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. The Company adopted this standard in the third quarter of fiscal year 2020 and applied it prospectively, beginning with the interim goodwill impairment test performed during the quarter ended March 31, 2020. See Note 10 for further details. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses . ASU No. 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. In May 2019, the FASB issued ASU No. 2019-05, Targeted Transition Relief , which amends ASC Topic 326 to provide an option to irrevocably elect to measure certain individual financial assets at fair value instead of amortized cost. In November 2019, FASB issued ASU No. 2019-11 to provide clarification guidance in a number of areas, including: (i) expected recoveries for purchased financial assets with credit deterioration, (ii) transition relief for troubled debt restructuring, (iii) disclosures related to accrued interest receivables, and (iv) financial assets secured by collateral maintenance provisions. 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. In February 2020, the FASB issued ASU No. 2020-02, Financial Instruments - Credit Losses and Leases , which includes amendments pursuant to SEC Staff Accounting Bulletin No. 119. This standard will be effective for the Company beginning in the first quarter of fiscal year 2021. The Company is currently evaluating the impact this standard will have on its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement as part of the FASB’s broader disclosure framework project. ASU No. 2018-13 removes, modifies and adds certain disclosures providing greater focus on requirements that clearly communicate the most important information to the users of the financial statements with respect to fair value measurements. The standard is effective for the Company beginning in the first quarter of fiscal year 2021, with early adoption permitted. Most of the disclosure requirements in ASU No. 2018-13 would need to be applied on a retrospective basis except for the guidance related to (i) unrealized gains and loss included in other comprehensive income, (ii) disclosure related to range and weighted average Level 3 unobservable inputs, and (iii) narrative disclosure requirements on measurement uncertainty, which are required to be applied on a prospective basis. The adoption of this standard, which relates to disclosure, is not expected to have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans. ASU No. 2018-14 removes certain disclosures that are not considered cost beneficial, clarifies certain required disclosures and adds additional disclosures. The standard will be effective for the Company in the fourth quarter of fiscal year 2021, with early adoption permitted. The amendments in ASU No. 2018-14 are required to be applied retrospectively. The adoption of this standard, which relates to disclosure, is not expected to have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. ASU No. 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance also specifies that the balance sheet, income statement, and statement of cash flows presentation of capitalized implementation costs and the related amortization should align with the presentation of the hosting (service) element of the arrangement. The standard is effective for the Company in the first quarter of fiscal year 2021. Entities have the option to apply the guidance prospectively to all implementation costs incurred after the date of adoption or retrospectively. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. However, to the extent future costs incurred in a cloud computing arrangement are capitalizable, the corresponding amortization will be included in “Direct Operating expenses” or “Selling, General and administrative expenses” in the consolidated statements of operations, rather than “Depreciation and amortization.” In November 2018, the FASB issued ASU No. 2018-17, Targeted Improvements to Related Party Guidance for Variable Interest Entities. ASU No. 2018-17 amends the variable interest entities (“VIE”) guidance to align the evaluation of a decision maker’s or service provider’s fee in assessing a variable interest with the guidance in the primary beneficiary test. Specifically, indirect interests held by a related party that is under common control will now be considered on a proportionate basis, rather than in their entirety, when assessing whether the fee qualifies as a variable interest. The proportionate basis approach is consistent with the treatment of indirect interests held by a related party under common control when evaluating the primary beneficiary of a VIE. This effectively means that when a decision maker or service provider has an interest in a related party, regardless of whether they are under common control, it will consider that related party’s interest in a VIE on a proportionate basis throughout the VIE model for both the assessment of a variable interest and the determination of a primary beneficiary. The standard will be effective for the Company in the first quarter of fiscal year 2021. The amendments in ASU No. 2018-17 are required to be applied retrospectively. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825 - Financial Instruments. This ASU provides narrow-scope amendments to help apply these recent standards. The transition requirements and effective date of this ASU will be effective for the Company in the first quarter of fiscal year 2021. The Company is currently evaluating the impact this standard will have on its consolidated financial statements. In November 2019, the FASB issued ASU No. 2019-08, Compensation - Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Codification Improvements - Share-Based Consideration Payable to a Customer. This ASU requires that share-based payment awards issued to a customer in connection with a revenue arrangement be recorded as a reduction of the transaction price in revenue. The amount recorded as a reduction of the transaction price is measured using the grant-date fair value of the award and is classified in accordance with ASC Topic 718. Changes in the measurement of the share-based payments after the grant date that are due to the form of the consideration are not included in the transaction price and are recorded elsewhere in the statement of operations. The award is measured and classified under ASC Topic 718 for its entire life, unless the award is modified after it vests and the grantee is no longer a customer. The new guidance is effective for the Company in the first quarter of fiscal year 2021. The adoption of this standard is not expected to have an impact on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU eliminates certain exceptions to the general approach in ASC Topic 740 and includes methods of simplification to the existing guidance. The new guidance is effective for the Company in the first quarter of fiscal year 2022, with early adoption permitted. The Company is currently evaluating the impact this standard will have on its consolidated financial statements. In January 2020, the FASB issued ASU No. 2020-01, Investments-Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. The amendments in this ASU clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying the measurement alternative in accordance with Topic 321 immediately before applying or upon discontinuing the equity method. In addition, the amendments clarify the accounting for certain forward contracts and purchased options accounted for under Topic 815. The new guidance is effective for the Company in the first quarter of fiscal year 2021. The adoption of this standard is not expected to have an impact on the Company’s consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides temporary optional expedients and exceptions to the guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from the London Interbank Offered Rate and other interbank offered rates to alternative reference rates. The new guidance was effective upon issuance, and the Company may elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the impact this standard will have on its consolidated financial statements. |
Operating Leases | The Company’s leases primarily consist of the lease of the Company’s corporate offices under the Sublease Agreement with MSG Entertainment (the “Sublease Agreement”) for the Company’s principal executive offices at Two Pennsylvania Plaza in New York and the lease of CLG Performance Center. In, addition, the Company accounts for the rights of use of The Garden pursuant to the Arena License Agreements as leases under the Accounting Standards Codification Topic 842, Leases. The Company determines whether an arrangement contains a lease at the inception of the arrangement. If a lease is determined to exist, the lease term is assessed based on the date when the underlying asset is made available for the Company’s use by the lessor. The Company’s assessment of the lease term reflects the non-cancelable term of the lease, inclusive of any rent-free periods and/or periods covered by early-termination options which the Company is reasonably certain not to exercise, as well as periods covered by renewal options which the Company is reasonably certain of exercising. The Company also determines lease classification as either operating or finance at lease commencement, which governs the pattern of expense recognition and the presentation reflected in the consolidated statements of operations over the lease term. For leases with a term exceeding 12 months, a lease liability is recorded on the Company’s consolidated balance sheet at lease commencement reflecting the present value of the fixed minimum payment obligations over the lease term. A corresponding ROU asset equal to the initial lease liability is also recorded, adjusted for any prepaid rent and/or initial direct costs incurred in connection with execution of the lease and reduced by any lease incentives received. The Company includes fixed payment obligations related to non-lease components in the measurement of ROU assets and lease liabilities, as the Company has elected to account for lease and non-lease components together as a single lease component. ROU assets associated with finance leases are presented separate from operating leases ROU assets and are included within Property and equipment, net on the Company’s consolidated balance sheet. For purposes of measuring the present value of the Company’s fixed payment obligations for a given lease, the Company uses its incremental borrowing rate, determined based on information available at lease commencement, as rates implicit in the underlying leasing arrangements are typically not readily determinable. The Company’s incremental borrowing rate reflects the rate it would pay to borrow on a secured basis and incorporates the term and economic environment surrounding the associated lease. For operating leases, fixed lease payments are recognized as lease expense on a straight-line basis over the lease term. For finance leases, the initial ROU asset is depreciated on a straight-line basis over the lease term, along with recognition of interest expense associated with accretion of the lease liability, which is ultimately reduced by the related fixed payments. For leases with a term of 12 months or less (“short-term leases”), any fixed lease payments are recognized on a straight-line basis over the lease term and are not recognized on the consolidated balance sheet. Variable lease costs for both operating and finance leases, if any, are recognized as incurred and such costs are excluded from lease balances recorded on the consolidated balance sheet. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations Information | The assets and liabilities of MSG Entertainment have been classified in the consolidated balance sheet as of June 30, 2019 as assets and liabilities of discontinued operations and consist of the following, by major class: June 30, 2019 Cash and cash equivalents $ 1,082,055 Restricted cash 10,010 Short-term investments 108,416 Accounts receivable, net 81,314 Net related party receivables 1,722 Prepaid expenses 23,741 Other current assets 36,932 Total current assets of discontinued operations 1,344,190 Net related party receivables, noncurrent 84,560 Property and equipment, net 1,349,122 Amortizable intangible assets, net 214,391 Indefinite-lived intangible assets 64,341 Goodwill 165,558 Other assets 89,895 Total assets of discontinued operations $ 3,312,057 Accounts payable $ 23,974 Net related party payables, current 19,078 Current portion of long-term debt, net of deferred financing costs 6,042 Accrued liabilities: Employee related costs 60,146 Other accrued liabilities 87,714 Collections due to promoters 67,212 Deferred revenue 183,147 Total current liabilities of discontinued operations 447,313 Long-term debt, net of deferred financing costs 48,556 Defined benefit and other postretirement obligations 34,269 Other employee related costs 13,741 Deferred tax liabilities, net 42,649 Other liabilities 59,525 Total liabilities of discontinued operations 646,053 Redeemable noncontrolling interests 67,627 Net assets of discontinued operations $ 2,666,004 The table below sets forth, for the periods presented, operating results of discontinued operations. Amounts presented below differ from historically reported results for the MSG Entertainment business segment due to reclassifications and adjustments made for purposes of discontinued operations. Years Ended June 30, 2020 2019 2018 Revenues $ 669,096 $ 903,196 $ 846,680 Direct operating expenses 408,413 557,680 525,207 Selling, general and administrative expenses 206,524 202,079 178,558 Depreciation and amortization 75,822 99,116 101,679 Impairment of intangibles, long-lived assets and goodwill 102,211 — — Operating income (loss) (123,874 ) 44,321 41,236 Other income (expense): Earnings (loss) in equity method investments (3,901 ) 7,062 (7,770 ) Interest income 16,754 29,014 20,681 Interest expense (3,570 ) (15,440 ) (11,923 ) Miscellaneous expense, net (3,863 ) (6,084 ) (3,360 ) Income (loss) from discontinued operations before income taxes (118,454 ) 58,873 38,864 Income tax benefit (expense) 28,232 (13,968 ) 57,480 Net income (loss) from discontinued operations (90,222 ) 44,905 96,344 Less: Net loss attributable to redeemable noncontrolling interests (24,013 ) (7,299 ) (628 ) Less: Net loss attributable to nonredeemable noncontrolling interests (120 ) (4,945 ) (4,382 ) Net income (loss) from discontinued operations attributable to Madison Square Garden Sports Corp.’s stockholders $ (66,089 ) $ 57,149 $ 101,354 Years Ended June 30, 2020 2019 2018 Non-cash items included in net income (loss): Depreciation and amortization $ 75,822 $ 99,116 $ 101,679 Impairment of intangibles, long-lived assets and goodwill 102,211 — — Share-based compensation expense 8,303 10,361 6,969 Cash flows from investing activities: Capital expenditures $ 346,488 $ 184,002 $ 187,362 Non-cash investing activities: Non-cash acquisition of additional redeemable noncontrolling interests $ 37,715 $ — $ — Capital expenditures incurred but not yet paid 104,137 31,928 9,376 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue | The following table disaggregates the Company’s revenues by type of goods or services in accordance with the required entity-wide disclosure requirements per FASB ASC Subtopic 280-10-50-38 to 40 and the disaggregation of revenue required disclosures in accordance with ASC Subtopic 606-10-50-5 for the years ended June 30, 2020 , 2019 and 2018 : Years Ended June 30, 2020 2019 2018 Event-related (a) $ 235,605 $ 283,206 $ 290,937 Media rights (b) 190,824 239,140 229,646 Sponsorship, signage and suite licenses 139,414 174,405 170,749 League distributions and other 37,476 32,653 21,083 Total revenues from contracts with customers $ 603,319 $ 729,404 $ 712,415 _________________ (a) Consists of (i) ticket sales and other ticket-related revenues, and (ii) food, beverage and merchandise sales. (b) Consists of (i) local media rights fees from MSG Networks, (ii) revenue from the distribution through league-wide national and international television contracts, and (iii) other local radio rights fees. |
Contract with Customer | The following table provides information about contract balances from the Company’s contracts with customers as of June 30, 2020 and 2019 . June 30, June 30, 2020 2019 Receivables from contracts with customers, net (a) $ 7,403 $ 15,550 Contract assets, current (b) 4,112 441 Deferred revenue, including non-current portion (c) 128,362 112,511 _________________ (a) Receivables from contracts with customers, which are reported in Accounts receivable, net and Net related party receivables in the Company’s consolidated balance sheets, represent the Company’s unconditional rights to consideration under its contracts with customers. As of June 30, 2020 and 2019 , the Company’s receivables from contracts with customers above included $0 and $8 , respectively, related to various related parties. See Note 17 for further details on these related party arrangements. (b) Contract assets, which are reported as Other current assets in the Company’s consolidated balance sheets, primarily relate to the Company’s rights to consideration for goods or services transferred to the customer, for which the Company does not have an unconditional right to bill as of the reporting date. Contract assets are transferred to accounts receivable once the Company’s right to consideration becomes unconditional. (c) Deferred revenue primarily relates to the Company’s receipt of consideration from a customer in advance of the Company’s transfer of goods or services to that customer. Deferred revenue is reduced and the related revenue is recognized once the underlying goods or services are transferred to the customer. Revenue recognized for the year ended June 30, 2020 relating to the deferred revenue balance as of July 1, 2019 was $101,981 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | The following table depicts the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of June 30, 2020 . In developing the estimated revenue, the Company applies the allowable practical expedient and does not disclose information about remaining performance obligations that have original expected durations of one year or less. Additionally, the Company has elected to exclude variable consideration from its disclosure related to the remaining performance obligations under its local media rights arrangements with MSG Networks. Fiscal year ending June 30, 2021 $ 28,803 Fiscal year ending June 30, 2022 65,637 Fiscal year ending June 30, 2023 27,044 Fiscal year ending June 30, 2024 8,051 Fiscal year ending June 30, 2025 7,025 Thereafter 17,554 $ 154,114 |
Computation of Earnings (Loss_2
Computation of Earnings (Loss) per Common Share (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings (Loss) per Share | The following table presents a reconciliation of weighted-average shares used in the calculations of basic and diluted earnings (loss) per common share attributable to the Company’s stockholders (“EPS”). Years Ended June 30, 2020 2019 2018 Weighted-average shares (denominator): Weighted-average shares for basic EPS 23,942 23,767 23,639 Dilutive effect of shares issuable under share-based compensation plans — 133 207 Weighted-average shares for diluted EPS 23,942 23,900 23,846 Weighted-average anti-dilutive shares — 368 28 |
Cash, Cash Equivalent and Res_2
Cash, Cash Equivalent and Restricted Cash (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Amounts Recorded as Cash, Cash Equivalents and Restricted Cash | The following table provides a summary of the amounts recorded as cash, cash equivalents and restricted cash. As of June 30, June 30, June 30, June 30, Captions on the consolidated balance sheets: Cash and cash equivalents $ 77,852 $ 4,317 $ 1,095 $ 931 Restricted cash (a) 12,821 21,519 24,271 29,275 Cash, cash equivalents and restricted cash on the consolidated statements of cash flows $ 90,673 $ 25,836 $ 25,366 $ 30,206 _________________ (a) See Note 2 for more information regarding the nature of restricted cash. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | As of June 30, 2020 and 2019 , property and equipment consisted of the following assets: June 30, June 30, Estimated Useful Lives Land $ 5,153 $ 5,153 Buildings 53,623 34,770 Up to 45 years Equipment 18,086 17,631 1 year to 20 years Furniture and fixtures 377 329 4 years to 10 years Leasehold improvements 653 646 Shorter of term of lease or life of improvement Construction in progress 66 6,538 77,958 65,067 Less accumulated depreciation and amortization (38,361 ) (33,797 ) $ 39,597 $ 31,270 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information | The following table summarizes the ROU assets and lease liabilities recorded on the Company’s consolidated balance sheet as of June 30, 2020 : Line Item in the Company’s Consolidated Balance Sheet Right-of-use assets: Operating leases Right-of-use lease assets $ 718,051 Lease liabilities: Operating leases, current Operating lease liabilities, current 39,131 Operating leases, noncurrent Operating lease liabilities, noncurrent 679,053 Total lease liabilities $ 718,184 |
Supplemental Income Statement Information | The following table summarizes the activity recorded within the Company’s consolidated statement of operations for the year ended June 30, 2020 : Line Item in the Company’s Consolidated Statement of Operations Year Ended June 30, 2020 Operating lease cost Direct operating expenses $ 341 Operating lease cost Selling, general and administrative expenses 593 Short-term lease cost Direct operating expenses 138 Total lease cost $ 1,072 |
Lease Maturity | Maturities of operating lease liabilities as of June 30, 2020 are as follows: Fiscal year ending June 30, 2021 $ 41,865 Fiscal year ending June 30, 2022 43,077 Fiscal year ending June 30, 2023 44,426 Fiscal year ending June 30, 2024 44,888 Fiscal year ending June 30, 2025 44,052 Thereafter 2,158,686 Total lease payments 2,376,994 Less imputed interest (1,658,810 ) Total lease liabilities $ 718,184 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Indefinite-Lived Intangible Assets | The Company’s indefinite-lived intangible assets as of June 30, 2020 and 2019 are as follows: June 30, June 30, Sports franchises $ 111,064 $ 111,064 Photographic related rights 1,080 1,080 $ 112,144 $ 112,144 |
Schedule of Intangible Assets Subject to Amortization | The Company’s intangible assets subject to amortization are as follows: June 30, 2020 Estimated Useful Lives Gross Accumulated Amortization Net Trade names 5 years $ 2,300 $ (1,342 ) $ 958 Non-compete agreements 5 years 2,400 (1,400 ) 1,000 Other intangibles 3 years to 9.75 years 1,200 (404 ) 796 $ 5,900 $ (3,146 ) $ 2,754 June 30, 2019 Gross Accumulated Amortization Net Trade names $ 2,300 $ (882 ) $ 1,418 Season ticket holder relationships 50,032 (47,541 ) 2,491 Non-compete agreements 2,400 (920 ) 1,480 Other intangibles 3,347 (2,421 ) 926 $ 58,079 $ (51,764 ) $ 6,315 |
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 2021 through 2025 to be as follows: Fiscal year ending June 30, 2021 $ 1,059 Fiscal year ending June 30, 2022 1,059 Fiscal year ending June 30, 2023 195 Fiscal year ending June 30, 2024 115 Fiscal year ending June 30, 2025 115 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
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, 2020 June 30, 2019 Carrying Value Fair Value Carrying Fair Liabilities Long-term debt (a) $ 350,000 $ 350,000 $ — $ — _________________ (a) On March 12, 2020, the Company borrowed $200,000 under the New York Knicks, LLC and $150,000 on the New York Rangers, LLC 5 -year revolving credit facilities. 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. See Note 13 for more information. |
Schedule of Contingent Consideration | The following table provides a reconciliation of the deferred and contingent consideration liabilities in connection with the acquisition discussed above: Balance as of June 30, 2019 $ 2,139 Contingent consideration payment (200 ) Change in fair value of contingent consideration (a) (1,603 ) Balance as of June 30, 2020 $ 336 _________________ (a) The change in fair value of contingent consideration was recorded within Selling, general and administrative expenses in the accompanying consolidated statement of operations for the year ended June 30, 2020 . |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitments | As of June 30, 2020 , future cash payments required under contracts entered into by the Company in the normal course of business in excess of one year are as follows: Off-Balance Sheet Commitments (a) Contractual (b) Total (c) Fiscal year ending June 30, 2021 $ 150,672 $ 53,139 $ 203,811 Fiscal year ending June 30, 2022 90,257 15,505 105,762 Fiscal year ending June 30, 2023 52,407 5,034 57,441 Fiscal year ending June 30, 2024 41,557 3,234 44,791 Fiscal year ending June 30, 2025 33,516 3,116 36,632 Thereafter 27,191 11,712 38,903 $ 395,600 $ 91,740 $ 487,340 _________________ (a) Consist principally of the Company’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. (b) Consist primarily of amounts earned under employment agreements that the Company has with certain of its professional sports teams’ personnel. (c) Pension obligations have been excluded from the table above as the timing of the future cash payments is uncertain. See Note 14 for information on the future funding requirements under our pension obligations. In addition, see Note 9 for information on the contractual obligations related to future lease payments, which are reflected on the consolidated balance sheet as lease liabilities as of June 30, 2020. |
Credit Facilities (Tables)
Credit Facilities (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Credit Facilities [Abstract] | |
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, and Rangers Revolving Credit Facility as reported on the accompanying consolidated balance sheet: June 30, June 30, Other current assets $ 675 $ 675 Other assets 264 939 |
Pension Plans and Other Postr_2
Pension Plans and Other Postretirement Benefit Plan (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Retirement Benefits [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, 2020 and 2019 , associated with the MSGE Pension Plans, MSGS Pension Plans and Postretirement Plan , based upon actuarial valuations as of those measurement dates. MSGE Pension Plans & MSGS Pension Plans Postretirement Plan June 30, June 30, 2020 2019 2020 2019 Change in benefit obligation: Benefit obligation at beginning of period $ 173,569 $ 161,236 $ 4,307 $ 6,750 Service cost 75 91 44 57 Interest cost 4,285 5,895 86 150 Actuarial loss (gain) 895 12,376 805 (572 ) Benefits paid (5,315 ) (5,686 ) (1,025 ) (565 ) Plan settlements paid (551 ) (343 ) — — Other — — — (1,513 ) Transfer due to the MSGE Distribution (162,901 ) — (4,217 ) — Benefit obligation at end of period 10,057 173,569 — 4,307 Change in plan assets: Fair value of plan assets at beginning of period 132,965 115,054 — — Actual return on plan assets 10,017 12,372 — — Employer contributions 7,811 11,568 — — Benefits paid (5,315 ) (5,686 ) — — Plan settlements paid (551 ) (343 ) — — Transfer due to the MSGE Distribution (144,927 ) — — — Fair value of plan assets at end of period — 132,965 — — Funded status at end of period $ (10,057 ) $ (40,604 ) $ — $ (4,307 ) |
Schedule of Amounts Recognized in Balance Sheet | Amounts recognized in the consolidated balance sheets as of June 30, 2020 and 2019 consist of: MSGE Pension Plans & MSGS Pension Plans Postretirement Plan June 30, June 30, 2020 2019 2020 2019 Current liabilities (included in accrued employee related costs) of continuing operations $ (3,043 ) $ (2,667 ) $ — $ — Non-current liabilities (included in defined benefit and other postretirement obligations) of continuing operations (7,014 ) (7,049 ) — — Current liabilities of discontinued operations — (581 ) — (345 ) Non-current liabilities of discontinued operations — (30,307 ) — (3,962 ) $ (10,057 ) $ (40,604 ) $ — $ (4,307 ) |
Schedule of Net Periodic Benefit Cost Not yet Recognized | Accumulated other comprehensive loss, before income tax, as of June 30, 2020 and 2019 consists of the following amounts that have not yet been recognized in net periodic benefit cost: MSGE Pension Plans & MSGS Pension Plans Postretirement Plan June 30, June 30, 2020 2019 2020 2019 Actuarial loss $ (2,139 ) $ (39,793 ) $ — $ (754 ) $ (2,139 ) $ (39,793 ) $ — $ (754 ) |
Schedule of Net Periodic Benefit Cost | The following table presents components of net periodic benefit cost for the MSGE Pension Plans, MSGS Pension Plans and Postretirement Plan included in the accompanying consolidated statements of operations for the years ended June 30, 2020 , 2019 and 2018 . Service cost is recognized in direct operating expenses and selling, general and administrative expenses. All other components of net periodic benefit cost are reported in Miscellaneous income (expense), net . MSGE Pension Plans & MSGS Pension Plans Postretirement Plan Years Ended June 30, Years Ended June 30, 2020 2019 2018 2020 2019 2018 Service cost $ 75 $ 91 $ 85 $ 44 $ 57 $ 120 Interest cost 4,285 5,895 5,231 86 150 215 Expected return on plan assets (4,240 ) (3,133 ) (2,634 ) — — — Recognized actuarial loss 930 1,281 1,219 5 5 100 Amortization of unrecognized prior service cost (credit) — — — — (7 ) (37 ) Settlement loss recognized (a) 67 52 87 — — — Other — — — — (1,513 ) — Net periodic benefit cost $ 1,117 $ 4,186 $ 3,988 $ 135 $ (1,308 ) $ 398 _________________ (a) For the years ended June 30, 2020 , 2019 and 2018, lump-sum payments totaling $551 , $343 and $506 , respectively, were distributed to vested participants of the non-qualified excess cash balance plan , triggering the recognition of settlement losses in accordance with ASC Topic 715. Due to these pension settlements, the Company was required to remeasure its pension plan liability as of March 31, 2020, June 30, 2019 and March 31, 2018 for the years ended June 30, 2020 , 2019 and 2018, respectively. Discount rates used for the projected benefit obligation and interest cost were 3.21% and 2.55% as of June 30, 2020 , respectively, 3.75% and 3.18% as of June 30, 2019, respectively, and 3.53% and 2.16% as of March 31, 2018, respectively. Additionally, settlement charges of $67 , $52 and $87 were recognized in Miscellaneous income (expense), net for the years ended June 30, 2020 , 2019 and 2018, respectively. Amounts presented in the table above include net periodic benefit cost related to continuing operations and discontinued operations as noted in the following table: MSGE Pension Plans & MSGS Pension Plans Postretirement Plan Years Ended June 30, Years Ended June 30, 2020 2019 2018 2020 2019 2018 Continuing Operations $ 395 $ 434 $ 504 $ — $ — $ — Discontinued Operations 722 3,752 3,484 135 (1,308 ) 398 Total net periodic benefit cost $ 1,117 $ 4,186 $ 3,988 $ 135 $ (1,308 ) $ 398 |
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, 2020 , 2019 and 2018 are as follows: MSGE Pension Plans & MSGS Pension Plans Postretirement Plan Years Ended June 30, Years Ended June 30, 2020 2019 2018 2020 2019 2018 Actuarial gain (loss), net $ (321 ) $ (3,137 ) $ (1,978 ) $ — $ 572 $ (1,437 ) Recognized actuarial loss 930 1,281 1,219 5 5 100 Recognized prior service credit — — — — (7 ) (37 ) Settlement loss recognized 67 52 87 — — — Transfer due to the MSGE Distribution 37,049 — — 749 — — Total recognized in other comprehensive income (loss) $ 37,725 $ (1,804 ) $ (672 ) $ 754 $ 570 $ (1,374 ) |
Schedule of Assumptions Used | Weighted-average assumptions used to determine benefit obligations (made at the end of the period) as of June 30, 2020 and 2019 are as follows: MSGE Pension Plans & MSGS Pension Plans Postretirement Plan June 30, June 30, 2020 2019 2020 2019 Discount rate 2.29 % 3.58 % n/a 3.18 % Healthcare cost trend rate assumed for next year n/a n/a n/a 6.75 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) n/a n/a n/a 5.00 % Year that the rate reaches the ultimate trend rate n/a n/a n/a 2027 Weighted-average assumptions used to determine net periodic benefit cost (made at the beginning of the period) for the years ended June 30, 2020 , 2019 and 2018 are as follows: MSGE Pension Plans & MSGS Pension Plans Postretirement Plan Years Ended June 30, Years Ended June 30, 2020 2019 2018 2020 2019 2018 Discount rate - projected benefit obligation 3.58 % 4.19 % 3.81 % 3.18 % 4.06 % 3.54 % Discount rate - service cost 3.78 % 4.25 % 3.93 % 3.45 % 4.25 % 3.83 % Discount rate - interest cost 3.10 % 3.90 % 3.32 % 2.84 % 3.67 % 3.05 % Expected long-term return on plan assets 5.52 % 3.72 % 3.46 % n/a n/a n/a Healthcare cost trend rate assumed for next year n/a n/a n/a 6.75 % 7.00 % 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 2027 2027 2027 |
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, 2020 2019 2018 2020 2019 One percentage point increase $ 12 $ 19 $ 37 n/a $ 335 One percentage point decrease (11 ) (17 ) (33 ) n/a (303 ) |
Schedule of Changes in Fair Value of Plan Assets | The cumulative fair values of the individual plan assets at June 30, 2019 by asset class are as follows: Fair Value Hierarchy June 30, 2019 Fixed income securities: U.S. Treasury Securities I $ 26,238 U.S. corporate bonds II 68,968 Foreign issued corporate bonds II 11,436 Municipal bonds II 396 Money market accounts I 25,927 Total investments measured at fair value $ 132,965 |
Schedule of Expected Benefit Payments | The following table presents estimated future fiscal year benefit payments for the MSGS Pension Plans: Fiscal year ending June 30, 2021 $ 3,050 Fiscal year ending June 30, 2022 320 Fiscal year ending June 30, 2023 300 Fiscal year ending June 30, 2024 350 Fiscal year ending June 30, 2025 520 Fiscal years ending June 30, 2025 – 2029 2,520 |
Expenses Related to Savings Plans | Expenses related to the Savings Plans that are included in the accompanying consolidated statements of operations for the years ended June 30, 2020 , 2019 and 2018 are as follows: Years Ended June 30, 2020 2019 2018 Continuing Operations $ 4,674 $ 7,925 $ 6,248 Discontinued Operations 1,411 2,712 2,323 Total Savings Plan Expenses $ 6,085 $ 10,637 $ 8,571 |
Schedule of Multiemployer Plans | The following table outlines the Company’s participation in multiemployer defined benefit pension plans for the years ended June 30, 2020 , 2019 and 2018 , 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, 2020 and 2019 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 2020 2019 2020 2019 2018 Surcharge Imposed Expiration Date of CBA National Basketball Association Players’ Pension Plan 83-2172122 001 Yellow Yellow Implemented $ 3,780 $ 3,217 $ 1,932 No 6/2024 (with certain termination rights becoming effective 6/2023) as of as of 2/1/2019 2/1/2018 National Hockey League Players’ Retirement Benefit Plan 46-2555356 001 Green Green No 1,150 1,197 1,200 No 9/2026 as of as of 4/30/2019 4/30/2018 All Other Multiemployer Defined Benefit Pension Plans 398 381 402 $ 5,328 $ 4,795 $ 3,534 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
RSU and PSU Activity | The following table summarizes activity related to the Company’s RSUs and PSUs, held by the Company and MSG Entertainment employees, for the year ended June 30, 2020 : Number of Weighted-Average Fair Value Per Share At Date of Grant (a) Nonperformance Based Vesting RSUs PSUs and Performance Based Vesting Unvested award balance as of June 30, 2019 229 359 $ 252.02 Granted 171 116 $ 243.55 Vested (111 ) (125 ) $ 214.86 Forfeited (14 ) (23 ) $ 258.32 Unvested award balance as of June 30, 2020 275 327 $ 262.13 _________________ (a) Weighted-average fair value per share at date of grant as of June 30, 2019 and for activity prior to the MSGE Distribution Date does not reflect any adjustment associated with the MSGE Distribution . See above for a discussion of the treatment of RSUs and PSUs in connection with the MSGE Distribution . |
Stock Option Activity | The following table summarizes activity related to the Company’s stock options for the year ended June 30, 2020 : Number of Weighted-Average Exercise Price Per Share (a) Weighted-Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value Time Vesting Options Balance as of June 30, 2019 543 $ 325.47 Granted — $ — Balance as of June 30, 2020 543 $ 225.79 6.06 $ 104 Exercisable as of June 30, 2020 175 $ 207.90 6.37 $ 69 _________________ (a) Weighted-average exercise price per share as of June 30, 2019 and for activity prior to the MSGE Distribution Date does not reflect any adjustment associated with the MSGE Distribution . See above for a discussion of the treatment of options in connection with the MSGE Distribution . |
Key Assumptions | The following are key assumptions used to calculate the weighted-average grant date fair value of the stock options: Market Price 10% Premium 25% Premium Weighted-average grant date fair value $ 79.99 $ 69.33 $ 55.64 Expected term 4.98 years 5.10 years 5.29 years Expected volatility 22.11 % 22.11 % 22.11 % Risk-free interest rate 3.02 % 3.11 % 3.11 % The expected terms of the premium priced options were estimated using the simplified method but takes into account that the options are out-of-the-money at grant date and therefore likely to be exercised later. The risk-free interest rate for the premium priced options was determined using a 7.50 year rate, different from the 4.98 year rate used to determine the market priced stock options. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following table summarizes the composition and amounts of the transactions with the Company’s affiliates, primarily with MSG Networks. These amounts are reflected in revenues and operating expenses in the accompanying consolidated statements of operations for the years ended June 30, 2020 , 2019 and 2018 : Years Ended June 30, 2020 2019 2018 Revenues $ 138,881 $ 148,207 $ 142,319 Operating expenses (credits): Corporate general and administrative expenses, net — MSG Networks $ (8,376 ) $ (10,362 ) $ (9,961 ) Corporate general and administrative expenses, net — MSG Entertainment 9,530 — — Costs associated with the Sponsorship sales and service representation agreements 2,486 — — Other operating expenses (credits), net (337 ) (693 ) (233 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense (benefit) attributable to continuing operations is comprised of the following components: Years Ended June 30, 2020 2019 2018 Current expense: Federal $ (676 ) $ — $ — State and other — 357 — (676 ) 357 — Deferred expense (benefit): Federal 13,871 (7,320 ) (55,321 ) State and other 7,398 (5,656 ) (4,071 ) 21,269 (12,976 ) (59,392 ) Income tax expense (benefit) $ 20,593 $ (12,619 ) $ (59,392 ) |
Schedule of Effective Income Tax Rate Reconciliation | The income tax expense (benefit) attributable to continuing operations 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, 2020 2019 2018 Federal tax benefit at statutory federal rate $ (20,590 ) $ (12,734 ) $ (5,973 ) State income taxes, net of federal benefit (7,332 ) (2,873 ) (1,909 ) Change in the estimated applicable tax rate used to determine deferred taxes 391 (1,055 ) (50,169 ) Nondeductible disability insurance premiums expense 1,027 482 1,436 Federal tax credits (1,480 ) (1,900 ) — GAAP income of consolidated partnership attributable to non-controlling interests 492 483 599 Tax effect of indefinite-lived intangible amortization 204 204 159 Change in valuation allowance 46,310 — — Nondeductible officers’ compensation (a) 4,287 8,521 — Nondeductible expenses 762 596 377 Excess tax benefit related to shared based-payments awards (3,478 ) (4,555 ) (1,671 ) Other — 212 (2,241 ) Income tax expense (benefit) $ 20,593 $ (12,619 ) $ (59,392 ) _________________ (a) The TCJA included changes to Internal Revenue Code Section 162(m), including elimination of the exception for qualified performance-based compensation over the $1,000 annual limit. Accordingly, effective January 1, 2018, all compensation for certain officers in excess of $1,000 is nondeductible. |
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, 2020 and 2019 are as follows: June 30, 2020 2019 Deferred tax asset: Net operating loss carryforwards $ 44,935 $ 57,970 Tax credit carryforwards 6,795 5,673 Accrued employee benefits 38,736 36,895 Accrued expenses 4,226 24,643 Restricted stock units and stock options 6,186 7,440 Other 2,837 4,849 Total deferred tax assets $ 103,715 $ 137,470 Less valuation allowance (48,133 ) (66,297 ) Net deferred tax assets $ 55,582 $ 71,173 Deferred tax liabilities: Intangible and other assets $ (101,202 ) $ (100,378 ) Prepaid expenses (7,164 ) (6,279 ) Investments (4,937 ) (965 ) Total deferred tax liabilities $ (113,303 ) $ (107,622 ) Net deferred tax liability $ (57,721 ) $ (36,449 ) |
Concentrations of Risk (Tables)
Concentrations of Risk (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Risks and Uncertainties [Abstract] | |
Schedule of Concentration Risk | The following individual non-affiliated customers accounted for the following percentages of the Company’s consolidated accounts receivable balances: June 30, 2020 2019 Customer A 55 % 78 % Customer B 11 % 2 % |
Interim Financial Information_2
Interim Financial Information (Unaudited) (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Interim Financial Information | The following is a summary of the Company’s selected quarterly financial data for the years ended June 30, 2020 and 2019 : Three Months Ended Year ended June 30, 2020 September 30, December 31, March 31, June 30, 2019 2019 2020 2020 Revenues $ 49,850 $ 292,798 $ 267,631 $ (6,960 ) $ 603,319 Operating expenses 109,174 293,031 257,006 37,974 697,185 Operating income (loss) $ (59,324 ) $ (233 ) $ 10,625 $ (44,934 ) $ (93,866 ) Income (loss) from continuing operations $ (40,191 ) $ (3,657 ) $ 4,183 $ (78,976 ) $ (118,641 ) Income (loss) from discontinued operations, net of taxes (40,475 ) 96,006 (145,249 ) (504 ) (90,222 ) Net income (loss) $ (80,666 ) $ 92,349 $ (141,066 ) $ (79,480 ) $ (208,863 ) Net income (loss) attributable to Madison Square Garden Sports Corp.’s stockholders $ (79,981 ) $ 94,141 $ (118,029 ) $ (78,519 ) $ (182,388 ) Earnings (loss) per share: Basic Continuing operations $ (1.67 ) $ (0.13 ) $ 0.20 $ (3.26 ) $ (4.86 ) Discontinued operations $ (1.69 ) $ 4.07 $ (5.12 ) $ (0.01 ) $ (2.76 ) Basic earnings (loss) per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ (3.36 ) $ 3.94 $ (4.92 ) $ (3.27 ) $ (7.62 ) Diluted Continuing operations $ (1.67 ) $ (0.13 ) $ 0.20 $ (3.26 ) $ (4.86 ) Discontinued operations $ (1.69 ) $ 4.06 $ (5.12 ) $ (0.01 ) $ (2.76 ) Diluted earnings (loss) per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ (3.36 ) $ 3.93 $ (4.92 ) $ (3.27 ) $ (7.62 ) Three Months Ended Year ended June 30, 2019 September 30, December 31, March 31, June 30, 2018 2018 2019 2019 Revenues $ 50,828 $ 286,931 $ 323,495 $ 68,150 $ 729,404 Operating expenses 84,034 298,828 280,608 124,129 787,599 Operating income (loss) $ (33,206 ) $ (11,897 ) $ 42,887 $ (55,979 ) $ (58,195 ) Income (loss) from continuing operations $ (24,085 ) $ (12,714 ) $ 26,260 $ (37,483 ) $ (48,022 ) Income (loss) from discontinued operations, net of taxes (9,963 ) 88,682 7,903 (41,717 ) 44,905 Net income (loss) $ (34,048 ) $ 75,968 $ 34,163 $ (79,200 ) $ (3,117 ) Net income (loss) attributable to Madison Square Garden Sports Corp.’s stockholders $ (32,212 ) $ 81,599 $ 35,271 $ (73,231 ) $ 11,427 Earnings (loss) per share: Basic Continuing operations $ (0.99 ) $ (0.50 ) $ 1.12 $ (1.56 ) $ (1.92 ) Discontinued operations $ (0.37 ) $ 3.93 $ 0.36 $ (1.52 ) $ 2.40 Basic earnings (loss) per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ (1.36 ) $ 3.43 $ 1.48 $ (3.08 ) $ 0.48 Diluted Continuing operations $ (0.99 ) $ (0.50 ) $ 1.12 $ (1.56 ) $ (1.91 ) Discontinued operations $ (0.37 ) $ 3.92 $ 0.36 $ (1.52 ) $ 2.39 Diluted earnings (loss) per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ (1.36 ) $ 3.42 $ 1.48 $ (3.08 ) $ 0.48 |
Description of Business and B_2
Description of Business and Basis of Presentation (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Jun. 30, 2020USD ($)segments$ / shares | Apr. 17, 2020$ / shares | Apr. 13, 2020$ / shares | Jun. 30, 2019USD ($)$ / shares | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | |
Number of reportable segments | segments | 1 | |||||
Potential rent reduction due to COVID-19 (percent) | 80.00% | |||||
Cash and cash equivalents | $ | $ 77,852 | $ 4,317 | $ 1,095 | $ 931 | ||
Long-term debt | $ | $ 350,000 | 0 | ||||
MSG Entertainment | ||||||
Cash and cash equivalents | $ | $ 816,896 | |||||
Class A Common Stock | ||||||
Common stock, par value (dollars per share) | $ 0.01 | $ 0.01 | ||||
Class A Common Stock | MSG Entertainment | ||||||
Distribution ratio | 1 | 1 | ||||
Common stock, par value (dollars per share) | $ 0.01 | |||||
Class B Common Stock | ||||||
Common stock, par value (dollars per share) | $ 0.01 | $ 0.01 | ||||
Class B Common Stock | MSG Entertainment | ||||||
Distribution ratio | 1 | |||||
Common stock, par value (dollars per share) | $ 0.01 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Direct Operating Expenses) (Narrative) (Details) | 12 Months Ended |
Jun. 30, 2020 | |
Arena License Agreements | MSG Entertainment | |
Property, Plant and Equipment [Line Items] | |
License agreement term | 35 years |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Advertising Costs, Policy) (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Accounting Policies [Abstract] | |||
Advertising expense | $ 3,064 | $ 4,381 | $ 1,516 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Accounts Receivable) (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Jun. 30, 2019 |
Accounting Policies [Abstract] | ||
Allowance for doubtful accounts | $ 180 | $ 0 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Long-Lived and Indefinite-Lived Assets) (Narrative) (Details) | 12 Months Ended |
Jun. 30, 2020USD ($)segmentsreporting_unitoperating_segment | |
Accounting Policies [Abstract] | |
Number of operating segments | operating_segment | 1 |
Number of reportable segments | segments | 1 |
Number of reporting units | reporting_unit | 1 |
Goodwill and intangible assets with impairment | $ | $ 0 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Adoption of other Accounting Pronouncements) (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Jul. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Right-of-use lease assets | $ 718,051 | |
Operating lease liabilities, current | 39,131 | |
Operating lease liabilities, noncurrent | $ 679,053 | |
Cumulative Effect, Period Of Adoption, Adjustment | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Right-of-use lease assets | $ 1,270 | |
Operating lease liabilities, current | 393 | |
Operating lease liabilities, noncurrent | $ 1,007 |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) | Apr. 17, 2020 | Apr. 16, 2020 |
Discontinued Operations and Disposal Groups [Abstract] | ||
Share of suite license fees (percent) | 67.50% | 32.50% |
Discontinued Operations (Operat
Discontinued Operations (Operating Results of Discontinued Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Earnings (loss) in equity method investments | $ (3,739) | $ 7,062 | $ (7,770) | ||||||||
Net income (loss) from discontinued operations | $ (504) | $ (145,249) | $ 96,006 | $ (40,475) | $ (41,717) | $ 7,903 | $ 88,682 | $ (9,963) | (90,222) | 44,905 | 96,344 |
Less: Net loss attributable to redeemable noncontrolling interests | (24,013) | (7,299) | (628) | ||||||||
Less: Net loss attributable to nonredeemable noncontrolling interests | (120) | (4,945) | (4,382) | ||||||||
MSG Entertainment | Discontinued Operations, Disposed of by Means Other than Sale | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Revenues | 669,096 | 903,196 | 846,680 | ||||||||
Direct operating expenses | 408,413 | 557,680 | 525,207 | ||||||||
Selling, general and administrative expenses | 206,524 | 202,079 | 178,558 | ||||||||
Depreciation and amortization | 75,822 | 99,116 | 101,679 | ||||||||
Impairment of intangibles, long-lived assets and goodwill | 102,211 | 0 | 0 | ||||||||
Operating income (loss) | (123,874) | 44,321 | 41,236 | ||||||||
Earnings (loss) in equity method investments | (3,901) | 7,062 | (7,770) | ||||||||
Interest income | 16,754 | 29,014 | 20,681 | ||||||||
Interest expense | (3,570) | (15,440) | (11,923) | ||||||||
Miscellaneous expense, net | (3,863) | (6,084) | (3,360) | ||||||||
Income (loss) from discontinued operations before income taxes | (118,454) | 58,873 | 38,864 | ||||||||
Income tax benefit (expense) | 28,232 | (13,968) | 57,480 | ||||||||
Net income (loss) from discontinued operations | (90,222) | 44,905 | 96,344 | ||||||||
Less: Net loss attributable to redeemable noncontrolling interests | (24,013) | (7,299) | (628) | ||||||||
Less: Net loss attributable to nonredeemable noncontrolling interests | (120) | (4,945) | (4,382) | ||||||||
Net income (loss) from discontinued operations attributable to Madison Square Garden Sports Corp.’s stockholders | $ (66,089) | $ 57,149 | $ 101,354 |
Discontinued Operations (Balanc
Discontinued Operations (Balance Sheet) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Total current assets of discontinued operations | $ 0 | $ 1,344,190 | ||
Total current liabilities of discontinued operations | 0 | 447,313 | ||
Cash and cash equivalents | $ 77,852 | 4,317 | $ 1,095 | $ 931 |
MSG Entertainment | Discontinued Operations, Disposed of by Means Other than Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash and cash equivalents | 1,082,055 | |||
Restricted cash | 10,010 | |||
Short-term investments | 108,416 | |||
Accounts receivable, net | 81,314 | |||
Net related party receivables | 1,722 | |||
Prepaid expenses | 23,741 | |||
Other current assets | 36,932 | |||
Total current assets of discontinued operations | 1,344,190 | |||
Net related party receivables, noncurrent | 84,560 | |||
Property and equipment, net | 1,349,122 | |||
Amortizable intangible assets, net | 214,391 | |||
Indefinite-lived intangible assets | 64,341 | |||
Goodwill | 165,558 | |||
Other assets | 89,895 | |||
Total assets of discontinued operations | 3,312,057 | |||
Accounts payable | 23,974 | |||
Net related party payables, current | 19,078 | |||
Current portion of long-term debt, net of deferred financing costs | 6,042 | |||
Total current liabilities of discontinued operations | 447,313 | |||
Long-term debt, net of deferred financing costs | 48,556 | |||
Defined benefit and other postretirement obligations | 34,269 | |||
Other employee related costs | 13,741 | |||
Deferred tax liabilities, net | 42,649 | |||
Other liabilities | 59,525 | |||
Total liabilities of discontinued operations | 646,053 | |||
Redeemable noncontrolling interests | 67,627 | |||
Net assets of discontinued operations | 2,666,004 | |||
Employee related costs | MSG Entertainment | Discontinued Operations, Disposed of by Means Other than Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Accrued liabilities: | 60,146 | |||
Other accrued liabilities | MSG Entertainment | Discontinued Operations, Disposed of by Means Other than Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Accrued liabilities: | 87,714 | |||
Collections due to promoters | MSG Entertainment | Discontinued Operations, Disposed of by Means Other than Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Accrued liabilities: | 67,212 | |||
Deferred revenue | MSG Entertainment | Discontinued Operations, Disposed of by Means Other than Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Accrued liabilities: | 183,147 | |||
MSG Entertainment | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash and cash equivalents | 816,896 | |||
Restricted cash | $ 10,180 |
Discontinued Operations (Cash F
Discontinued Operations (Cash Flow Statement) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Non-cash items included in net income (loss): | |||
Share-based compensation expense | $ 8,303 | $ 10,361 | $ 6,969 |
Non-cash investing activities: | |||
Non-cash acquisition of additional redeemable noncontrolling interests | (37,715) | ||
Capital expenditures incurred but not yet paid | 104,154 | 35,026 | 9,688 |
MSG Entertainment | Discontinued Operations, Disposed of by Means Other than Sale | |||
Non-cash items included in net income (loss): | |||
Depreciation and amortization | 75,822 | 99,116 | 101,679 |
Impairment of intangibles, long-lived assets and goodwill | 102,211 | 0 | 0 |
Share-based compensation expense | 8,303 | 10,361 | 6,969 |
Cash flows from investing activities: | |||
Capital expenditures | 346,488 | 184,002 | 187,362 |
Non-cash investing activities: | |||
Non-cash acquisition of additional redeemable noncontrolling interests | 37,715 | 0 | 0 |
Capital expenditures incurred but not yet paid | $ 104,137 | $ 31,928 | $ 9,376 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) $ in Thousands | Jun. 30, 2020USD ($) |
National Media Rights Fees Revenues | |
Disaggregation of Revenue [Line Items] | |
Contract with customer, liability | $ 42,000 |
Knicks and Rangers | Event-Related, Food And Beverage | |
Disaggregation of Revenue [Line Items] | |
Percentage of net profits receivable | 50.00% |
MSG Entertainment | Knicks | Event-Related, Suite And Club Rental Revenue | |
Disaggregation of Revenue [Line Items] | |
Percentage of revenues receivable | 35.00% |
MSG Entertainment | Rangers | Event-Related, Suite And Club Rental Revenue | |
Disaggregation of Revenue [Line Items] | |
Percentage of revenues receivable | 32.50% |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Revenues | $ (6,960) | $ 267,631 | $ 292,798 | $ 49,850 | $ 68,150 | $ 323,495 | $ 286,931 | $ 50,828 | $ 603,319 | [1] | $ 729,404 | [1] | $ 712,415 | [1] | |
Event-related | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Revenues | [2] | 235,605 | 283,206 | 290,937 | |||||||||||
Media rights | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Revenues | [3] | 190,824 | 239,140 | 229,646 | |||||||||||
Sponsorship, signage and suite licenses | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Revenues | 139,414 | 174,405 | 170,749 | ||||||||||||
League distributions and other | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Revenues | $ 37,476 | $ 32,653 | $ 21,083 | ||||||||||||
[1] | Include revenues from related parties of $138,881 , $148,207 and $142,319 for the years ended June 30, 2020 , 2019 and 2018 , respectively. | ||||||||||||||
[2] | Consists of (i) ticket sales and other ticket-related revenues, and (ii) food, beverage and merchandise sales. | ||||||||||||||
[3] | Consists of (i) local media rights fees from MSG Networks, (ii) revenue from the distribution through league-wide national and international television contracts, and (iii) other local radio rights fees. |
Revenue Recognition (Contract B
Revenue Recognition (Contract Balances) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jul. 01, 2018 | ||
Contract Balances [Line Items] | ||||
Contract with customer, liability, revenue recognized | $ 101,981 | |||
Receivables from contracts with customer, net | ||||
Contract Balances [Line Items] | ||||
Contract with customer, asset | [1] | 7,403 | $ 15,550 | |
Other current assets | ||||
Contract Balances [Line Items] | ||||
Contract with customer, asset | [2] | 4,112 | 441 | |
Deferred revenue, including non-current portion | ||||
Contract Balances [Line Items] | ||||
Contract with customer, liability | [3] | 128,362 | $ 112,511 | |
Net related party receivables | ||||
Contract Balances [Line Items] | ||||
Contract with customer, asset | $ 0 | $ 8 | ||
[1] | Receivables from contracts with customers, which are reported in Accounts receivable, net and Net related party receivables in the Company’s consolidated balance sheets, represent the Company’s unconditional rights to consideration under its contracts with customers. As of June 30, 2020 and 2019 , the Company’s receivables from contracts with customers above included $0 and $8 , respectively, related to various related parties. See Note 17 | |||
[2] | Contract assets, which are reported as Other current assets in the Company’s consolidated balance sheets, primarily relate to the Company’s rights to consideration for goods or services transferred to the customer, for which the Company does not have an unconditional right to bill as of the reporting date. Contract assets are transferred to accounts receivable once the Company’s right to consideration becomes unconditional. | |||
[3] | Deferred revenue primarily relates to the Company’s receipt of consideration from a customer in advance of the Company’s transfer of goods or services to that customer. Deferred revenue is reduced and the related revenue is recognized once the underlying goods or services are transferred to the customer. Revenue recognized for the year ended June 30, 2020 relating to the deferred revenue balance as of July 1, 2019 was $101,981 |
Revenue Recognition (Remaining
Revenue Recognition (Remaining Performance Obligation) (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Revenue Recognition [Abstract] | |
Remaining performance obligation | $ 154,114 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | |
Revenue Recognition [Abstract] | |
Remaining performance obligation | $ 28,803 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation period (years) | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | |
Revenue Recognition [Abstract] | |
Remaining performance obligation | $ 65,637 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation period (years) | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Revenue Recognition [Abstract] | |
Remaining performance obligation | $ 27,044 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation period (years) | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | |
Revenue Recognition [Abstract] | |
Remaining performance obligation | $ 8,051 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation period (years) | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | |
Revenue Recognition [Abstract] | |
Remaining performance obligation | $ 7,025 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation period (years) | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-07-01 | |
Revenue Recognition [Abstract] | |
Remaining performance obligation | $ 17,554 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation period (years) | 5 years |
Computation of Earnings (Loss_3
Computation of Earnings (Loss) per Common Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |||
Weighted-average shares for basic EPS | 23,942 | 23,767 | 23,639 |
Dilutive effect of shares issuable under share-based compensation plans | 0 | 133 | 207 |
Weighted-average shares for diluted EPS | 23,942 | 23,900 | 23,846 |
Weighted-average anti-dilutive shares | 0 | 368 | 28 |
Team Personnel Transactions (De
Team Personnel Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Team Personnel Transactions [Abstract] | |||
Provisions for team personnel transactions | $ 33,690 | $ 53,134 | $ 27,514 |
Insurance recoveries | $ 468 |
Cash, Cash Equivalent and Res_3
Cash, Cash Equivalent and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Cash and Cash Equivalents [Abstract] | |||||
Cash and cash equivalents | $ 77,852 | $ 4,317 | $ 1,095 | $ 931 | |
Restricted cash | [1] | 12,821 | 21,519 | 24,271 | 29,275 |
Cash, cash equivalents and restricted cash on the consolidated statements of cash flows | $ 90,673 | $ 25,836 | $ 25,366 | $ 30,206 | |
[1] | See Note 2 for more information regarding the nature of restricted cash. |
Property and Equipment (Schedul
Property and Equipment (Schedule of Property, Plant and Equipment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 77,958 | $ 65,067 |
Less accumulated depreciation and amortization | (38,361) | (33,797) |
Property and equipment, net | 39,597 | 31,270 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 5,153 | 5,153 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 53,623 | 34,770 |
Buildings | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives (years) | 45 years | |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 18,086 | 17,631 |
Equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives (years) | 1 year | |
Equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives (years) | 20 years | |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 377 | 329 |
Furniture and fixtures | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives (years) | 4 years | |
Furniture and fixtures | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives (years) | 10 years | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 653 | 646 |
Estimated useful life | Shorter of term of lease or life of improvement | |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 66 | $ 6,538 |
Property and Equipment (Narrati
Property and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense | $ 13,979 | $ 15,112 | $ 14,526 |
Leases (Details)
Leases (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2020USD ($)asset | |
Lessee, Lease, Description [Line Items] | |
Description of option to extend | In certain instances, leases include options to renew, with varying option terms. The exercise of lease renewal, if available under the lease options, is generally at the Company’s discretion and is considered in the Company’s assessment of the respective lease term. |
Description of guarantees or covenants | The Company’s lease agreements do not contain material residual value guarantees or material restrictive covenants. |
Operating lease payments | $ 877 |
Number of ROU assets | asset | 3 |
Impairment of long-lived assets | $ 717,115 |
Weighted average discount rate (percent) | 7.13% |
Weighted average remaining lease term (years) | 34 years 6 months |
Assumption and judgments, discount rate, description | the Company’s estimated incremental borrowing rate, assuming a secured borrowing, based on the remaining lease term at the time of either (i) adoption of the standard or (ii) the period in which the lease term expectation commenced or was modified |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term (months or years) | 3 months |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term (months or years) | 35 years |
Leases (Balance Sheet Informati
Leases (Balance Sheet Information) (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Lessee, Lease, Description [Line Items] | |
Right-of-use lease assets | $ 718,051 |
Operating lease liabilities, current | 39,131 |
Operating lease liabilities, noncurrent | 679,053 |
Total lease liabilities | 718,184 |
Right-of-use lease assets | |
Lessee, Lease, Description [Line Items] | |
Right-of-use lease assets | 718,051 |
Operating lease liabilities, current | |
Lessee, Lease, Description [Line Items] | |
Operating lease liabilities, current | 39,131 |
Operating lease liabilities, noncurrent | |
Lessee, Lease, Description [Line Items] | |
Operating lease liabilities, noncurrent | $ 679,053 |
Leases (Income Statement Inform
Leases (Income Statement Information) (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2020USD ($) | |
Lessee, Lease, Description [Line Items] | |
Lease, Cost | $ 1,072 |
Direct operating expenses | |
Lessee, Lease, Description [Line Items] | |
Operating lease cost | 341 |
Short-term lease cost | 138 |
Selling, general and administrative expenses | |
Lessee, Lease, Description [Line Items] | |
Operating lease cost | $ 593 |
Leases (Lease Maturities) (Deta
Leases (Lease Maturities) (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Leases [Abstract] | |
Fiscal year ending June 30, 2021 | $ 41,865 |
Fiscal year ending June 30, 2022 | 43,077 |
Fiscal year ending June 30, 2023 | 44,426 |
Fiscal year ending June 30, 2024 | 44,888 |
Fiscal year ending June 30, 2025 | 44,052 |
Thereafter | 2,158,686 |
Total lease payments | 2,376,994 |
Less imputed interest | (1,658,810) |
Total lease liabilities | $ 718,184 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Impairment of goodwill | $ 0 | ||||
Goodwill | $ 226,955,000 | $ 226,955,000 | |||
Impairment of indefinite-lived intangible assets | $ 0 | ||||
Amortization of finite-lived intangible assets | $ 3,561,000 | $ 4,965,000 | $ 6,281,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Schedule of Indefinite-Lived Intangible Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Jun. 30, 2019 |
Indefinite-lived Intangible Assets by Major Class [Line Items] | ||
Indefinite-lived intangible assets | $ 112,144 | $ 112,144 |
Sports franchises | ||
Indefinite-lived Intangible Assets by Major Class [Line Items] | ||
Indefinite-lived intangible assets | 111,064 | 111,064 |
Photographic related rights | ||
Indefinite-lived Intangible Assets by Major Class [Line Items] | ||
Indefinite-lived intangible assets | $ 1,080 | $ 1,080 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Schedule of Intangible Assets Subject To Amortization) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 5,900 | $ 58,079 |
Accumulated Amortization | (3,146) | (51,764) |
Net | $ 2,754 | 6,315 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (months or years) | 5 years | |
Gross | $ 2,300 | 2,300 |
Accumulated Amortization | (1,342) | (882) |
Net | $ 958 | 1,418 |
Season ticket holder relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 50,032 | |
Accumulated Amortization | (47,541) | |
Net | 2,491 | |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (months or years) | 5 years | |
Gross | $ 2,400 | 2,400 |
Accumulated Amortization | (1,400) | (920) |
Net | 1,000 | 1,480 |
Other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 1,200 | 3,347 |
Accumulated Amortization | (404) | (2,421) |
Net | $ 796 | $ 926 |
Other intangibles | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (months or years) | 3 years | |
Other intangibles | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (months or years) | 9 years 9 months |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Schedule of Finite-Lived Intangible Assets, Future Amortization Expense) (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Fiscal year ending June 30, 2021 | $ 1,059 |
Fiscal year ending June 30, 2022 | 1,059 |
Fiscal year ending June 30, 2023 | 195 |
Fiscal year ending June 30, 2024 | 115 |
Fiscal year ending June 30, 2025 | $ 115 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Fair Value, Financial Instruments) (Details) - USD ($) $ in Thousands | Mar. 12, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Schedule of Financial Instruments [Line Items] | |||||
Proceeds from revolving credit facility | $ 350,000 | $ 0 | $ 0 | ||
Long-term debt | |||||
Schedule of Financial Instruments [Line Items] | |||||
Carrying Value | $ 350,000 | [1] | 0 | ||
Secured Debt | |||||
Schedule of Financial Instruments [Line Items] | |||||
Debt instrument term | 5 years | ||||
Secured Debt | Knicks | |||||
Schedule of Financial Instruments [Line Items] | |||||
Proceeds from revolving credit facility | $ 200,000 | ||||
Secured Debt | Rangers | |||||
Schedule of Financial Instruments [Line Items] | |||||
Proceeds from revolving credit facility | $ 150,000 | ||||
Fair Value, Inputs, Level 2 | Long-term debt | |||||
Schedule of Financial Instruments [Line Items] | |||||
Fair Value | $ 350,000 | [1] | $ 0 | ||
[1] | On March 12, 2020, the Company borrowed $200,000 under the New York Knicks, LLC and $150,000 on the New York Rangers, LLC 5 -year revolving credit facilities. The Company’s long-term debt is classified within Level II of the fair value hierarchy as it is valued using quoted indices of similar securities for which the inputs are readily observable. See Note 13 |
Fair Value Measurements (Contin
Fair Value Measurements (Contingent Consideration Liabilities) (Details) - USD ($) $ in Thousands | Jul. 28, 2017 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | Jul. 28, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Contingent consideration liability | $ 336 | $ 2,139 | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance as of June 30, 2019 | 2,139 | |||||
Contingent consideration payment | (200) | 0 | $ (4,000) | |||
Change in fair value of contingent consideration | [1] | 1,603 | ||||
Balance as of June 30, 2020 | $ 336 | $ 2,139 | ||||
CLG | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Contingent consideration term and period (years) | 3 years | |||||
Contingent consideration liability | $ 6,586 | $ 6,586 | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance as of June 30, 2020 | $ 6,586 | |||||
CLG | Fair Value, Inputs, Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Contingent consideration arrangement, range of outcomes, value, high | $ 9,150 | |||||
[1] | The change in fair value of contingent consideration was recorded within Selling, general and administrative expenses in the accompanying consolidated statement of operations for the year ended June 30, 2020 . |
Commitments and Contingencies_2
Commitments and Contingencies (Contractual Obligations And Off Balance Sheet Arrangements) (Details) $ in Thousands | Jun. 30, 2020USD ($) | |
Other Commitments [Line Items] | ||
Fiscal year ending June 30, 2021 | $ 203,811 | [1] |
Fiscal year ending June 30, 2022 | 105,762 | [1] |
Fiscal year ending June 30, 2023 | 57,441 | [1] |
Fiscal year ending June 30, 2024 | 44,791 | [1] |
Fiscal year ending June 30, 2025 | 36,632 | [1] |
Thereafter | 38,903 | [1] |
Total other commitments | 487,340 | [1] |
Off-Balance Sheet Commitments | ||
Other Commitments [Line Items] | ||
Fiscal year ending June 30, 2021 | 150,672 | [2] |
Fiscal year ending June 30, 2022 | 90,257 | [2] |
Fiscal year ending June 30, 2023 | 52,407 | [2] |
Fiscal year ending June 30, 2024 | 41,557 | [2] |
Fiscal year ending June 30, 2025 | 33,516 | [2] |
Thereafter | 27,191 | [2] |
Total other commitments | 395,600 | [2] |
Contractual Obligations reflected on the Balance Sheet | ||
Other Commitments [Line Items] | ||
Fiscal year ending June 30, 2021 | 53,139 | [3] |
Fiscal year ending June 30, 2022 | 15,505 | [3] |
Fiscal year ending June 30, 2023 | 5,034 | [3] |
Fiscal year ending June 30, 2024 | 3,234 | [3] |
Fiscal year ending June 30, 2025 | 3,116 | [3] |
Thereafter | 11,712 | [3] |
Total other commitments | $ 91,740 | [3] |
[1] | Pension obligations have been excluded from the table above as the timing of the future cash payments is uncertain. See Note 14 for information on the future funding requirements under our pension obligations. In addition, see Note 9 for information on the contractual obligations related to future lease payments, which are reflected on the consolidated balance sheet as lease liabilities as of June 30, 2020. | |
[2] | Consist principally of the Company’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. | |
[3] | Consist primarily of amounts earned under employment agreements that the Company has with certain of its professional sports teams’ personnel. |
Credit Facilities (Narrative) (
Credit Facilities (Narrative) (Details) | Apr. 17, 2020USD ($)borrowing | Jan. 25, 2017USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2020USD ($)fiscal_quarter |
Knicks | Revolving Credit Facility | Collateral Pledged | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 200,000,000 | |||
Debt instrument term | 5 years | |||
Covenant description | a debt service ratio of 1.5:1.0 over a trailing four quarter period | |||
Debt service ratio | 1.5 | |||
Number of trailing quarters used to judge debt service ratio | fiscal_quarter | 4 | |||
Covenant compliance | Knicks LLC was in compliance with this financial covenant | |||
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) the London Inter-Bank Offered Rate (“LIBOR”) plus a margin ranging from 1.00% to 1.125% per annum. | |||
Short-term debt | $ 200,000,000 | |||
Long-term debt, percentage bearing variable interest, percentage rate | 1.20% | |||
Interest paid | $ 819,000 | |||
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. | |||
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. | |||
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 | Revolving Credit Facility | Uncollateralized | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 15,000,000 | |||
Debt instrument term | 364 days | |||
Short-term debt | $ 0 | |||
Short-term debt description | Knicks LLC renewed this facility with the lender on the same terms in successive years and the facility has been renewed for a new term effective as of September 25, 2020. | |||
Knicks | Revolving Credit Facility | Minimum | Collateral Pledged | ||||
Line of Credit Facility [Line Items] | ||||
Percentage of available credit facility requiring qualified revenues | 350.00% | |||
Commitment fee percentage | 0.20% | |||
Knicks | Revolving Credit Facility | Maximum | Collateral Pledged | ||||
Line of Credit Facility [Line Items] | ||||
Commitment fee percentage | 0.25% | |||
Rangers | Revolving Credit Facility | Collateral Pledged | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 150,000,000 | |||
Debt instrument term | 5 years | |||
Covenant description | a debt service ratio of 1.5:1.0 over a trailing four quarter period | |||
Debt service ratio | 1,500 | |||
Number of trailing quarters used to judge debt service ratio | fiscal_quarter | 4 | |||
Covenant compliance | Rangers LLC was in compliance with this financial covenant. | |||
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. | |||
Short-term debt | $ 150,000,000 | |||
Long-term debt, percentage bearing variable interest, percentage rate | 1.58% | |||
Interest paid | $ 760,000 | |||
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. | |||
Subjective acceleration clause | Rangers LLC is required to make mandatory prepayments in certain circumstances, including without limitation if qualified revenues are less than 17% of the maximum available amount under the Rangers Revolving Credit Facility. | |||
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 | Revolving Credit Facility | Minimum | Collateral Pledged | ||||
Line of Credit Facility [Line Items] | ||||
Commitment fee percentage | 0.375% | |||
Rangers | Revolving Credit Facility | Maximum | Collateral Pledged | ||||
Line of Credit Facility [Line Items] | ||||
Percentage of available credit facility requiring qualified revenues | 17.00% | |||
Commitment fee percentage | 0.625% | |||
Madison Square Garden Entertainment Corp | Delayed Draw Facilities | ||||
Line of Credit Facility [Line Items] | ||||
Maximum liquidity prior to borrowing | $ 50,000,000 | |||
Maximum liquidity after borrowing | 75,000,000 | |||
Outstanding borrowings | $ 0 | |||
Knicks | Madison Square Garden Entertainment Corp | Delayed Draw Facilities | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 110,000,000 | |||
Rangers | Madison Square Garden Entertainment Corp | Delayed Draw Facilities | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 90,000,000 | |||
Knicks and Rangers | Madison Square Garden Entertainment Corp | Delayed Draw Facilities | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility expiration date | Oct. 17, 2021 | |||
Number of borrowings | borrowing | 4 | |||
Minimum proceeds per borrowing | $ 10,000,000 | |||
Base Rate | Knicks | Revolving Credit Facility | Minimum | Collateral Pledged | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate (percent) | 0.00% | |||
Base Rate | Knicks | Revolving Credit Facility | Maximum | Collateral Pledged | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate (percent) | 0.125% | |||
Base Rate | Rangers | Revolving Credit Facility | Minimum | Collateral Pledged | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate (percent) | 0.125% | |||
Base Rate | Rangers | Revolving Credit Facility | Maximum | Collateral Pledged | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate (percent) | 0.50% | |||
Base Rate | Knicks and Rangers | Madison Square Garden Entertainment Corp | Delayed Draw Facilities | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate (percent) | 1.00% | |||
LIBOR | Knicks | Revolving Credit Facility | Minimum | Collateral Pledged | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate (percent) | 1.00% | |||
LIBOR | Knicks | Revolving Credit Facility | Maximum | Collateral Pledged | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate (percent) | 1.125% | |||
LIBOR | Rangers | Revolving Credit Facility | Minimum | Collateral Pledged | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate (percent) | 1.125% | |||
LIBOR | Rangers | Revolving Credit Facility | Maximum | Collateral Pledged | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate (percent) | 1.50% | |||
LIBOR | Knicks and Rangers | Madison Square Garden Entertainment Corp | Delayed Draw Facilities | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate (percent) | 2.00% |
Credit Facilities (Deferred Fin
Credit Facilities (Deferred Financing Costs For Revolving Credit Facilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Jun. 30, 2019 |
Other current assets | ||
Line of Credit Facility [Line Items] | ||
Debt issuance costs, net | $ 675 | $ 675 |
Other assets | ||
Line of Credit Facility [Line Items] | ||
Debt issuance costs, net | $ 264 | $ 939 |
Pension Plans and Other Postr_3
Pension Plans and Other Postretirement Benefit Plan (Schedule of Changes in Benefit Obligation and Plan Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of period | $ 132,965 | |
Fair value of plan assets at end of period | $ 132,965 | |
MSGE Pension Plans & MSGS Pension Plans | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||
Benefit obligation at beginning of period | 173,569 | 161,236 |
Service cost | 75 | 91 |
Interest cost | 4,285 | 5,895 |
Actuarial loss (gain) | 895 | 12,376 |
Benefits paid | (5,315) | (5,686) |
Plan settlements paid | (551) | (343) |
Other | 0 | 0 |
Transfer due to the MSGE Distribution | 162,901 | 0 |
Benefit obligation at end of period | 10,057 | 173,569 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of period | 132,965 | 115,054 |
Actual return on plan assets | 10,017 | 12,372 |
Employer contributions | 7,811 | 11,568 |
Benefits paid | (5,315) | (5,686) |
Plan settlements paid | (551) | (343) |
Transfer due to the MSGE Distribution | (144,927) | 0 |
Fair value of plan assets at end of period | 0 | 132,965 |
Funded status at end of period | (10,057) | (40,604) |
Postretirement Plan | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||
Benefit obligation at beginning of period | 4,307 | 6,750 |
Service cost | 44 | 57 |
Interest cost | 86 | 150 |
Actuarial loss (gain) | 805 | (572) |
Benefits paid | (1,025) | (565) |
Plan settlements paid | 0 | 0 |
Other | 0 | (1,513) |
Transfer due to the MSGE Distribution | 4,217 | 0 |
Benefit obligation at end of period | 0 | 4,307 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of period | 0 | |
Actual return on plan assets | 0 | 0 |
Employer contributions | 0 | 0 |
Benefits paid | 0 | 0 |
Plan settlements paid | 0 | 0 |
Transfer due to the MSGE Distribution | 0 | 0 |
Fair value of plan assets at end of period | 0 | 0 |
Funded status at end of period | $ 0 | $ (4,307) |
Pension Plans and Other Postr_4
Pension Plans and Other Postretirement Benefit Plan (Schedule of Amounts Recognized in Balance Sheet) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Jun. 30, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current liabilities (included in defined benefit and other postretirement obligations) of continuing operations | $ (7,014) | $ (7,049) |
Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current liabilities (included in accrued employee related costs) of continuing operations | (3,043) | (2,667) |
Non-current liabilities (included in defined benefit and other postretirement obligations) of continuing operations | (7,014) | (7,049) |
Current liabilities of discontinued operations | 0 | (581) |
Non-current liabilities of discontinued operations | 0 | (30,307) |
Total liabilities related to defined benefit plan | (10,057) | (40,604) |
Other Postretirement Benefits Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current liabilities (included in accrued employee related costs) of continuing operations | 0 | 0 |
Non-current liabilities (included in defined benefit and other postretirement obligations) of continuing operations | 0 | 0 |
Current liabilities of discontinued operations | 0 | (345) |
Non-current liabilities of discontinued operations | 0 | (3,962) |
Total liabilities related to defined benefit plan | $ 0 | $ (4,307) |
Pension Plans and Other Postr_5
Pension Plans and Other Postretirement Benefit Plan (Schedule of Net Periodic Benefit Cost Not yet Recognized) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Jun. 30, 2019 |
Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actuarial loss | $ (2,139) | $ (39,793) |
Accumulated other comprehensive loss, before income tax | (2,139) | (39,793) |
Other Postretirement Benefits Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actuarial loss | 0 | (754) |
Accumulated other comprehensive loss, before income tax | $ 0 | $ (754) |
Pension Plans and Other Postr_6
Pension Plans and Other Postretirement Benefit Plan (Schedule of Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Pension Plans | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Service cost | $ 75 | $ 91 | |||||
Interest cost | 4,285 | 5,895 | |||||
Other Postretirement Benefits Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Service cost | 44 | 57 | |||||
Interest cost | 86 | 150 | |||||
Direct Operating Expenses And Selling General And Administrative Expenses | Pension Plans | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Service cost | 75 | 91 | $ 85 | ||||
Interest cost | 4,285 | 5,895 | 5,231 | ||||
Expected return on plan assets | (4,240) | (3,133) | (2,634) | ||||
Recognized actuarial loss | 930 | 1,281 | 1,219 | ||||
Amortization of unrecognized prior service cost (credit) | 0 | 0 | 0 | ||||
Settlement loss recognized | [1] | 67 | 52 | 87 | |||
Other | 0 | 0 | 0 | ||||
Net periodic benefit cost | 1,117 | 4,186 | 3,988 | ||||
Payment for pension benefits | 551 | 343 | 506 | ||||
Continuing Operations | 395 | 434 | 504 | ||||
Discontinued Operations | 722 | 3,752 | 3,484 | ||||
Direct Operating Expenses And Selling General And Administrative Expenses | Other Postretirement Benefits Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Service cost | 44 | 57 | 120 | ||||
Interest cost | 86 | 150 | 215 | ||||
Expected return on plan assets | 0 | 0 | 0 | ||||
Recognized actuarial loss | 5 | 5 | 100 | ||||
Amortization of unrecognized prior service cost (credit) | 0 | (7) | (37) | ||||
Settlement loss recognized | [1] | 0 | 0 | 0 | |||
Other | 0 | (1,513) | 0 | ||||
Net periodic benefit cost | 135 | (1,308) | 398 | ||||
Continuing Operations | 0 | 0 | 0 | ||||
Discontinued Operations | $ 135 | $ (1,308) | $ 398 | ||||
Discount rate - projected benefit obligation | Pension Plans | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined benefit plan discount rate (percent) | 3.21% | 3.75% | 3.53% | 3.58% | 4.19% | 3.81% | |
Discount rate - projected benefit obligation | Other Postretirement Benefits Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined benefit plan discount rate (percent) | 3.18% | 4.06% | 3.54% | ||||
Discount rate - interest cost | Pension Plans | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined benefit plan discount rate (percent) | 2.55% | 3.18% | 2.16% | 3.10% | 3.90% | 3.32% | |
Discount rate - interest cost | Other Postretirement Benefits Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined benefit plan discount rate (percent) | 2.84% | 3.67% | 3.05% | ||||
Other Nonoperating Income (Expense) | Pension Plans | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Settlement loss recognized | $ 67 | $ 52 | $ 87 | ||||
[1] | For the years ended June 30, 2020 , 2019 and 2018, lump-sum payments totaling $551 , $343 and $506 , respectively, were distributed to vested participants of the non-qualified excess cash balance plan , triggering the recognition of settlement losses in accordance with ASC Topic 715. Due to these pension settlements, the Company was required to remeasure its pension plan liability as of March 31, 2020, June 30, 2019 and March 31, 2018 for the years ended June 30, 2020 , 2019 and 2018, respectively. Discount rates used for the projected benefit obligation and interest cost were 3.21% and 2.55% as of June 30, 2020 , respectively, 3.75% and 3.18% as of June 30, 2019, respectively, and 3.53% and 2.16% as of March 31, 2018, respectively. Additionally, settlement charges of $67 , $52 and $87 were recognized in Miscellaneous income (expense), net for the years ended June 30, 2020 , 2019 and 2018, respectively. |
Pension Plans and Other Postr_7
Pension Plans and Other Postretirement Benefit Plan (Schedule of Amounts Recognized in Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Actuarial gain (loss), net | $ (321) | $ (2,565) | $ (3,415) |
Settlement loss recognized | 67 | 52 | 87 |
Total recognized in other comprehensive income (loss) | 681 | (1,234) | (2,046) |
Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected amortization of net loss over the next fiscal year | 103 | ||
Accumulated benefit obligation | 173,569 | ||
Other Comprehensive Income (Loss) | Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actuarial gain (loss), net | (321) | (3,137) | (1,978) |
Recognized actuarial loss | 930 | 1,281 | 1,219 |
Recognized prior service credit | 0 | 0 | 0 |
Settlement loss recognized | 67 | 52 | 87 |
Transfer due to the MSGE Distribution | 37,049 | 0 | 0 |
Total recognized in other comprehensive income (loss) | 37,725 | (1,804) | (672) |
Other Comprehensive Income (Loss) | Other Postretirement Benefits Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actuarial gain (loss), net | 0 | 572 | (1,437) |
Recognized actuarial loss | 5 | 5 | 100 |
Recognized prior service credit | 0 | (7) | (37) |
Settlement loss recognized | 0 | 0 | 0 |
Transfer due to the MSGE Distribution | 749 | 0 | 0 |
Total recognized in other comprehensive income (loss) | $ 754 | $ 570 | $ (1,374) |
Pension Plans and Other Postr_8
Pension Plans and Other Postretirement Benefit Plan (Schedule of Assumptions Used) (Details) | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | Jul. 01, 2020 | Jul. 01, 2019 | Jul. 01, 2018 |
Pension Plans | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Discount rate (percent) | 2.29% | 3.58% | 2.29% | 3.58% | ||||||
Expected long-term return on plan assets (percent) | 5.52% | 3.72% | 3.46% | |||||||
Other Postretirement Benefits Plan | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Discount rate (percent) | 3.18% | 3.18% | ||||||||
Healthcare cost trend rate assumed for next year (percent) | 6.75% | 6.75% | 7.00% | 7.25% | ||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) (percent) | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | ||||
Year that the rate reaches the ultimate trend rate | 2027 | 2027 | 2027 | 2027 | ||||||
Discount rate - projected benefit obligation | Pension Plans | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Defined benefit plan discount rate (percent) | 3.21% | 3.75% | 3.53% | 3.58% | 4.19% | 3.81% | ||||
Discount rate - projected benefit obligation | Other Postretirement Benefits Plan | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Defined benefit plan discount rate (percent) | 3.18% | 4.06% | 3.54% | |||||||
Discount rate - service cost | Pension Plans | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Defined benefit plan discount rate (percent) | 3.78% | 4.25% | 3.93% | |||||||
Discount rate - service cost | Other Postretirement Benefits Plan | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Defined benefit plan discount rate (percent) | 3.45% | 4.25% | 3.83% | |||||||
Discount rate - interest cost | Pension Plans | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Defined benefit plan discount rate (percent) | 2.55% | 3.18% | 2.16% | 3.10% | 3.90% | 3.32% | ||||
Discount rate - interest cost | Other Postretirement Benefits Plan | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Defined benefit plan discount rate (percent) | 2.84% | 3.67% | 3.05% | |||||||
Subsequent Event | Other Postretirement Benefits Plan | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Healthcare cost trend rate assumed for next year (percent) | 6.75% |
Pension Plans and Other Postr_9
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 Benefits Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Effect of one percentage point increase on service and interest cost components | $ 12 | $ 19 | $ 37 |
Effect of one percentage point increase on accumulated postretirement benefit obligation | 335 | ||
Effect of one percentage point decrease on service and interest cost components | $ (11) | (17) | $ (33) |
Effect of one percentage point decrease on accumulated postretirement benefit obligation | $ (303) |
Pension Plans and Other Post_10
Pension Plans and Other Postretirement Benefit Plan (Schedule of Allocation of Plan Assets) (Details) | Jun. 30, 2019 |
Fixed Income Securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Allocation of plan assets (percent) | 81.00% |
Cash Equivalents | |
Defined Benefit Plan Disclosure [Line Items] | |
Allocation of plan assets (percent) | 19.00% |
Pension Plans and Other Post_11
Pension Plans and Other Postretirement Benefit Plan (Investment at Estimated Fair Value) (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Fair value of plan assets | $ 132,965 |
U.S. Treasury Securities | Fair Value, Inputs, Level 1 | |
Defined Benefit Plan Disclosure [Line Items] | |
Fair value of plan assets | 26,238 |
U.S. corporate bonds | Fair Value, Inputs, Level 2 | |
Defined Benefit Plan Disclosure [Line Items] | |
Fair value of plan assets | 68,968 |
Foreign issued corporate bonds | Fair Value, Inputs, Level 2 | |
Defined Benefit Plan Disclosure [Line Items] | |
Fair value of plan assets | 11,436 |
Municipal bonds | Fair Value, Inputs, Level 2 | |
Defined Benefit Plan Disclosure [Line Items] | |
Fair value of plan assets | 396 |
Money market accounts | Fair Value, Inputs, Level 1 | |
Defined Benefit Plan Disclosure [Line Items] | |
Fair value of plan assets | $ 25,927 |
Pension Plans and Other Post_12
Pension Plans and Other Postretirement Benefit Plan (Contributions for Qualified Defined Benefit Pension Plan) (Narrative) (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2020USD ($) | |
Cash Balance Pension Plan | Other Pension Plan - Cash Balance Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Employer contributions | $ 7,000 |
Union Plan | Other Pension Plan - Union Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Employer contributions | $ 260 |
Pension Plans and Other Post_13
Pension Plans and Other Postretirement Benefit Plan (Schedule of Expected Benefit Payments) (Details) - Pension Plans $ in Thousands | Jun. 30, 2020USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Fiscal year ending June 30, 2021 | $ 3,050 |
Fiscal year ending June 30, 2022 | 320 |
Fiscal year ending June 30, 2023 | 300 |
Fiscal year ending June 30, 2024 | 350 |
Fiscal year ending June 30, 2025 | 520 |
Fiscal years ending June 30, 2025 – 2029 | $ 2,520 |
Pension Plans and Other Post_14
Pension Plans and Other Postretirement Benefit Plan (Defined Contribution Plan) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Savings Plans | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Continuing Operations | $ 4,674 | $ 7,925 | $ 6,248 |
Discontinued Operations | 1,411 | 2,712 | 2,323 |
Plan expense | 6,085 | 10,637 | 8,571 |
Union Savings Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Plan expense | $ 526 | $ 521 | $ 533 |
Pension Plans and Other Post_15
Pension Plans and Other Postretirement Benefit Plan (Schedule of Multiemployer Defined Benefit Pension Plans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Multiemployer Plans [Line Items] | |||
EIN | 47-3373056 | ||
Pension Plans | |||
Multiemployer Plans [Line Items] | |||
Madison Square Garden Contributions | $ 5,328 | $ 4,795 | $ 3,534 |
Pension Plans | National Basketball Association Players’ Pension Plan | |||
Multiemployer Plans [Line Items] | |||
EIN | 83-2172122 | ||
Pension Plan Number | 001 | ||
PPA Zone Status | Yellow | Yellow | |
PPA Zone Status | Feb. 1, 2019 | Feb. 1, 2018 | |
FIP/RP Status Pending / Implemented | Implemented | ||
Madison Square Garden Contributions | $ 3,780 | $ 3,217 | 1,932 |
Surcharge Imposed | No | ||
Collective-bargaining arrangement, description | 6/2024 (with certain termination rights becoming effective 6/2023) | ||
Pension Plans | National Hockey League Players’ Retirement Benefit Plan | |||
Multiemployer Plans [Line Items] | |||
EIN | 46-2555356 | ||
Pension Plan Number | 001 | ||
PPA Zone Status | Green | Green | |
PPA Zone Status | Apr. 30, 2019 | Apr. 30, 2018 | |
FIP/RP Status Pending / Implemented | No | ||
Madison Square Garden Contributions | $ 1,150 | $ 1,197 | 1,200 |
Surcharge Imposed | No | ||
Collective-bargaining arrangement, description | 9/2022 (with certain termination rights becoming effective 9/2020) | ||
Pension Plans | All Other Multiemployer Defined Benefit Pension Plans | |||
Multiemployer Plans [Line Items] | |||
Madison Square Garden Contributions | $ 398 | 381 | 402 |
Multiemployer Defined Contribution Pension Plans | |||
Multiemployer Plans [Line Items] | |||
Madison Square Garden Contributions | 1,200 | 1,066 | 973 |
Postretirement Health Coverage | |||
Multiemployer Plans [Line Items] | |||
Madison Square Garden Contributions | $ 2,559 | $ 2,466 | $ 2,198 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) | 12 Months Ended | |||||
Jun. 30, 2020USD ($)plan$ / sharesshares | Jun. 30, 2019USD ($)$ / sharesshares | Jun. 30, 2018USD ($)$ / shares | Apr. 17, 2020 | Apr. 13, 2020 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of plans | plan | 2 | |||||
Period used to determine weighted-average trading price (days) | 10 days | |||||
Vesting period (years) | 3 years | |||||
Share-based compensation capitalized | $ 4,011,000 | $ 3,946,000 | $ 0 | |||
Share-based compensation expense | 8,303,000 | 10,361,000 | 6,969,000 | |||
Instruments vested in period | 60,282,000 | 51,350,000 | 76,226,000 | |||
Payment for tax withholding | $ 26,777,000 | $ 19,525,000 | $ 34,393,000 | |||
Granted (USD per share) | $ / shares | [1] | $ 243.55 | ||||
Fair value assumptions, method used | The risk-free interest rate for the premium priced options was determined using a 7.50 year rate, different from the 4.98 year rate used to determine the market priced stock options. | |||||
Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares distributed per share | 2 | |||||
Vesting period (years) | 4 years | |||||
Options, other increases (decreases) in period, description | the Company granted 449 stock options that consisted of market priced stock options and premium priced stock options. The exercise prices of the premium priced stock options were set at a 10% and a 25% premium to the closing stock price at the date of grant. | |||||
Granted (shares) | shares | 449,000 | |||||
Options | Class A Common Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares distributed per share | 1 | |||||
Options | 2015 Employee Stock Plan | Class A Common Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares authorized | shares | 2,650,000 | |||||
Expiration period (years) | 10 years | |||||
Options | 2015 Stock Plan for Non-Employee Directors | Class A Common Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares authorized | shares | 160,000 | |||||
Expiration period (years) | 10 years | |||||
Options | Expiration Triggered By The Death of the Grantee | 2015 Employee Stock Plan | Class A Common Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expiration period (years) | 1 year | |||||
Options | Expiration Triggered By The Death of the Grantee | 2015 Stock Plan for Non-Employee Directors | Class A Common Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expiration period (years) | 1 year | |||||
Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period (years) | 3 years | |||||
Shares withheld for tax withholding obligation, value | shares | 104,000 | |||||
Payment for tax withholding | $ 26,777,000 | |||||
Granted (USD per share) | $ / shares | $ 304.53 | $ 214.08 | ||||
Employee | Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Cost not yet recognized | $ 7,171,000 | |||||
Period of cost recognition (years) | 2 years 1 month 6 days | |||||
Employee | Performance Stock Units and Performance Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Cost not yet recognized | $ 18,851,000 | |||||
Period of cost recognition (years) | 1 year 10 months 24 days | |||||
Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Premium on options (percentage) | 10.00% | |||||
Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Premium on options (percentage) | 25.00% | |||||
Maximum | Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average remaining contractual term (years) | 7 years 6 months | |||||
MSG Entertainment | Class A Common Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares distributed per share | 1 | |||||
Distribution ratio | 1 | 1 | ||||
MSG Entertainment | Class B Common Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Distribution ratio | 1 | |||||
MSG Entertainment | Options | Class A Common Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares distributed per share | 1 | |||||
MSG Entertainment | Performance Stock Units and Performance Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares distributed per share | 1 | |||||
Market Price | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expected term (years) | 4 years 11 months 23 days | |||||
Continuing Operations | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ 48,693,000 | $ 49,113,000 | $ 40,594,000 | |||
Share-based compensation capitalized | $ 0 | $ 0 | $ 0 | |||
[1] | Weighted-average fair value per share at date of grant as of June 30, 2019 and for activity prior to the MSGE Distribution Date does not reflect any adjustment associated with the MSGE Distribution . See above for a discussion of the treatment of RSUs and PSUs in connection with the MSGE Distribution . |
Share-Based Compensation (Sched
Share-Based Compensation (Schedule of Share-based Compensation, Restricted Stock Units Award Activities) (Details) - $ / shares shares in Thousands | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Unvested Share Units Awards [Roll Forward] | ||||
Unvested award balance as of June 30, 2019 (USD per share) | [1] | $ 252.02 | ||
Granted (USD per share) | [1] | 243.55 | ||
Vested (USD per share) | [1] | 214.86 | ||
Forfeited (USD per share) | [1] | 258.32 | ||
Unvested award balance as of June 30, 2020 (USD per share) | [1] | $ 262.13 | $ 252.02 | |
Restricted Stock Units (RSUs) | ||||
Unvested Share Units Awards [Roll Forward] | ||||
Granted (USD per share) | $ 304.53 | $ 214.08 | ||
Nonperformance Based Vesting RSUs | Restricted Stock Units (RSUs) | ||||
Unvested Share Units Awards [Roll Forward] | ||||
Unvested award balance as of June 30, 2019 (shares) | 229 | |||
Granted (shares) | 171 | |||
Vested (shares) | (111) | |||
Forfeited (shares) | (14) | |||
Unvested award balance as of June 30, 2020 (shares) | 275 | 229 | ||
PSUs and Performance Based Vesting RSUs | Performance Stock Units and Performance Restricted Stock Units | ||||
Unvested Share Units Awards [Roll Forward] | ||||
Unvested award balance as of June 30, 2019 (shares) | 359 | |||
Granted (shares) | 116 | |||
Vested (shares) | (125) | |||
Forfeited (shares) | (23) | |||
Unvested award balance as of June 30, 2020 (shares) | 327 | 359 | ||
[1] | Weighted-average fair value per share at date of grant as of June 30, 2019 and for activity prior to the MSGE Distribution Date does not reflect any adjustment associated with the MSGE Distribution . See above for a discussion of the treatment of RSUs and PSUs in connection with the MSGE Distribution . |
Share-Based Compensation (Sch_2
Share-Based Compensation (Schedule of Share-based Compensation Activities, Stock Option) (Details) - Time Vesting Options $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Jun. 30, 2020USD ($)$ / sharesshares | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Beginning balance (shares) | shares | 543 | |
Granted (shares) | shares | 0 | |
Ending balance (shares) | shares | 543 | |
Beginning balance (USD per share) | $ / shares | $ 325.47 | [1] |
Granted (USD per share) | $ / shares | 0 | [1] |
Ending balance (USD per share) | $ / shares | $ 225.79 | [1] |
Weighted average remaining contractual term (years) | 6 years 21 days | |
Aggregate intrinsic value | $ | $ 104 | |
Exercisable (shares) | shares | 175 | |
Exercisable (USD per share) | $ / shares | $ 207.90 | [1] |
Exercisable, weighted-average remaining contractual term (years) | 6 years 4 months 13 days | |
Exercisable, aggregate intrinsic value | $ | $ 69 | |
[1] | Weighted-average exercise price per share as of June 30, 2019 and for activity prior to the MSGE Distribution Date does not reflect any adjustment associated with the MSGE Distribution . See above for a discussion of the treatment of options in connection with the MSGE Distribution . |
Share-Based Compensation (Sch_3
Share-Based Compensation (Schedule of Stock Option Assumption) (Details) | 12 Months Ended |
Jun. 30, 2020$ / shares | |
Market Price | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted-average grant date fair value (USD per share) | $ 79.99 |
Expected term (years) | 4 years 11 months 23 days |
Expected volatility (percent) | 22.11% |
Risk-free interest rate (percent) | 3.02% |
10% Premium | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted-average grant date fair value (USD per share) | $ 69.33 |
Expected term (years) | 5 years 1 month 6 days |
Expected volatility (percent) | 22.11% |
Risk-free interest rate (percent) | 3.11% |
25% Premium | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted-average grant date fair value (USD per share) | $ 55.64 |
Expected term (years) | 5 years 3 months 14 days |
Expected volatility (percent) | 22.11% |
Risk-free interest rate (percent) | 3.11% |
Stock Repurchase Program (Detai
Stock Repurchase Program (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Sep. 11, 2015 | |
Equity, Class of Treasury Stock [Line Items] | ||
Stock repurchased (shares) | 0 | |
Class A Common Stock | 2015 share repurchase program | ||
Equity, Class of Treasury Stock [Line Items] | ||
Stock repurchase program, authorized amount | $ 525,000,000 | |
Stock repurchase program, remaining authorized amount | $ 259,639,000 |
Related Party Transactions (Own
Related Party Transactions (Ownership Percentage) (Details) | 12 Months Ended |
Jun. 30, 2020 | |
Related Party Ownership Percentage [Line Items] | |
Aggregate voting power held by related party (percent) | 70.90% |
Class A Common Stock | |
Related Party Ownership Percentage [Line Items] | |
Percentage of common stock owned by related party | 3.50% |
Threshold of exercisable date from current date | 60 days |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Related Party Transaction [Line Items] | |||
Discontinued operations, related party revenue | $ 13,106,000 | $ 16,199,000 | $ 14,052,000 |
Discontinued operations, related party operating expense | 897,000 | 3,542,000 | 6,088,000 |
Discontinued operations, interest income from nonconsolidated affiliates | 3,105,000 | 5,696,000 | |
Discontinued operations, equity in earnings (loss) of equity-method investments | (3,739,000) | 7,062,000 | (7,770,000) |
MSG Networks | |||
Related Party Transaction [Line Items] | |||
Related party transaction, services agreement | 8,474,000 | $ 10,467,000 | $ 9,474,000 |
MSG Entertainment | |||
Related Party Transaction [Line Items] | |||
Related party transaction, services agreement | $ 8,916,000 | ||
Sponsorship Sales And Service Representation Agreements | MSG Entertainment | |||
Related Party Transaction [Line Items] | |||
License agreement term | 10 years | ||
Arena License Agreements | MSG Entertainment | |||
Related Party Transaction [Line Items] | |||
License agreement term | 35 years | ||
Media Rights Agreements | MSG Entertainment | |||
Related Party Transaction [Line Items] | |||
License agreement term | 20 years | ||
605, LLC | Kristin A. Dolan | |||
Related Party Transaction [Line Items] | |||
Ownership percentage | 50.00% | ||
Knicks | Delayed Draw Facilities | MSG Entertainment | |||
Related Party Transaction [Line Items] | |||
Maximum borrowing capacity | $ 110,000 | ||
Rangers | Delayed Draw Facilities | MSG Entertainment | |||
Related Party Transaction [Line Items] | |||
Maximum borrowing capacity | $ 90,000 |
Related Party Transactions (Tra
Related Party Transactions (Transactions by Type) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Related Party Transaction [Line Items] | |||
Revenues | $ 138,881 | $ 148,207 | $ 142,319 |
Other operating expenses (credits), net | (337) | (693) | (233) |
MSG Networks | |||
Related Party Transaction [Line Items] | |||
Revenues | 138,173 | 148,178 | 142,281 |
Corporate general and administrative expenses, net | (8,376) | (10,362) | (9,961) |
MSG Entertainment | |||
Related Party Transaction [Line Items] | |||
Corporate general and administrative expenses, net | 9,530 | 0 | 0 |
Costs associated with the Sponsorship sales and service representation agreements | $ 2,486 | $ 0 | $ 0 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2019 | |
Income Taxes [Abstract] | |||
Statutory tax rate (percent) | 21.00% | 35.00% | 28.00% |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||
Current federal tax expense (benefit) | $ (676) | $ 0 | $ 0 |
Current state and local tax expense (benefit) | 0 | 357 | 0 |
Current income tax expense (benefit) | (676) | 357 | 0 |
Deferred federal income tax expense (benefit) | 13,871 | (7,320) | (55,321) |
Deferred state and local income tax expense (benefit) | 7,398 | (5,656) | (4,071) |
Deferred income tax expense (benefit) | 21,269 | (12,976) | (59,392) |
Income tax expense (benefit) | $ 20,593 | $ (12,619) | $ (59,392) |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Income Tax Disclosure [Abstract] | ||||
Federal tax benefit at statutory federal rate | $ (20,590) | $ (12,734) | $ (5,973) | |
State income taxes, net of federal benefit | (7,332) | (2,873) | (1,909) | |
Change in the estimated applicable tax rate used to determine deferred taxes | 391 | (1,055) | (50,169) | |
Nondeductible disability insurance premiums expense | 1,027 | 482 | 1,436 | |
Federal tax credits | (1,480) | (1,900) | 0 | |
GAAP income of consolidated partnership attributable to non-controlling interests | 492 | 483 | 599 | |
Tax effect of indefinite-lived intangible amortization | 204 | 204 | 159 | |
Change in valuation allowance | 46,310 | 0 | 0 | |
Nondeductible officers' compensation | [1] | 4,287 | 8,521 | 0 |
Nondeductible expenses | 762 | 596 | 377 | |
Excess tax benefit related to shared based-payments awards | (3,478) | (4,555) | (1,671) | |
Other | 0 | 212 | (2,241) | |
Income tax expense (benefit) | $ 20,593 | $ (12,619) | $ (59,392) | |
Other income tax information | The TCJA included changes to Internal Revenue Code Section 162(m), including elimination of the exception for qualified performance-based compensation over the $1,000 annual limit. Accordingly, effective January 1, 2018, all compensation for certain officers in excess of $1,000 is nondeductible. | |||
[1] | The TCJA included changes to Internal Revenue Code Section 162(m), including elimination of the exception for qualified performance-based compensation over the $1,000 annual limit. Accordingly, effective January 1, 2018, all compensation for certain officers in excess of $1,000 is nondeductible. |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2018 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Net operating loss carryforwards | $ 44,935 | $ 44,935 | $ 57,970 | |
Tax credit carryforwards | 6,795 | 6,795 | 5,673 | |
Accrued employee benefits | 38,736 | 38,736 | 36,895 | |
Accrued expenses | 4,226 | 4,226 | 24,643 | |
Restricted stock units and stock options | 6,186 | 6,186 | 7,440 | |
Other | 2,837 | 2,837 | 4,849 | |
Total deferred tax assets | 103,715 | 103,715 | 137,470 | |
Less valuation allowance | (48,133) | (48,133) | (66,297) | |
Net deferred tax assets | 55,582 | 55,582 | 71,173 | |
Intangible and other assets | (101,202) | (101,202) | (100,378) | |
Prepaid expenses | (7,164) | (7,164) | (6,279) | |
Investments | (4,937) | (4,937) | (965) | |
Total deferred tax liabilities | (113,303) | (113,303) | (107,622) | |
Net deferred tax liability | (57,721) | (57,721) | (36,449) | |
Operating loss carryforwards | 122,000 | 122,000 | ||
Operating loss carryforwards, subject to expiration | 46,000 | $ 46,000 | ||
Operating loss carryforward expiration date | 2036 | |||
Unrecognized tax benefits | 0 | $ 0 | $ 0 | |
Estimated effect of accelerated deferred revenue | 56,000 | |||
Increase (decrease) in deferred tax asset valuation allowance | $ 46,310 | $ (68,000) | $ (51,015) |
Concentrations of Risk (Schedul
Concentrations of Risk (Schedules of Concentration of Risk, by Risk Factor) (Details) - Accounts Receivable - Credit Concentration Risk | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Customer A | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 55.00% | 78.00% |
Customer B | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 11.00% | 2.00% |
Concentrations of Risk (Narrati
Concentrations of Risk (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020USD ($)employee | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | |
Concentration Risk [Line Items] | |||
Revenues from related party | $ 138,881 | $ 148,207 | $ 142,319 |
Labor subject to collective bargaining arrangements | approximately 94 full-time and part-time employees, who represent approximately 11% of the Company’s workforce, are subject to CBAs. | ||
Number of full and part-time employees subject to CBA | employee | 94 | ||
Percentage of employees subject to CBA | 11.00% | ||
Non-affiliated customers | Revenue Benchmark | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 13.00% | 13.00% | 12.00% |
MSG Networks | |||
Concentration Risk [Line Items] | |||
Revenues from related party | $ 138,173 | $ 148,178 | $ 142,281 |
MSG Networks | Revenue Benchmark | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 23.00% | 20.00% | 20.00% |
Interim Financial Information_3
Interim Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | ||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||
Revenues | $ (6,960) | $ 267,631 | $ 292,798 | $ 49,850 | $ 68,150 | $ 323,495 | $ 286,931 | $ 50,828 | $ 603,319 | [1] | $ 729,404 | [1] | $ 712,415 | [1] |
Operating expenses | 37,974 | 257,006 | 293,031 | 109,174 | 124,129 | 280,608 | 298,828 | 84,034 | 697,185 | 787,599 | ||||
Operating loss | (44,934) | 10,625 | (233) | (59,324) | (55,979) | 42,887 | (11,897) | (33,206) | (93,866) | (58,195) | (18,179) | |||
Income (loss) from continuing operations | (78,976) | 4,183 | (3,657) | (40,191) | (37,483) | 26,260 | (12,714) | (24,085) | (118,641) | (48,022) | 38,104 | |||
Income (loss) from discontinued operations, net of taxes | (504) | (145,249) | 96,006 | (40,475) | (41,717) | 7,903 | 88,682 | (9,963) | (90,222) | 44,905 | 96,344 | |||
Net income (loss) | (79,480) | (141,066) | 92,349 | (80,666) | (79,200) | 34,163 | 75,968 | (34,048) | (208,863) | (3,117) | 134,448 | |||
Net income (loss) attributable to Madison Square Garden Sports Corp.’s stockholders | $ (78,519) | $ (118,029) | $ 94,141 | $ (79,981) | $ (73,231) | $ 35,271 | $ 81,599 | $ (32,212) | $ (182,388) | $ 11,427 | $ 141,594 | |||
Basic earnings (loss) per share, continuing operations (USD per share) | $ (3.26) | $ 0.20 | $ (0.13) | $ (1.67) | $ (1.56) | $ 1.12 | $ (0.50) | $ (0.99) | $ (4.86) | $ (1.92) | $ 1.70 | |||
Basic earnings (loss) per share, discontinued operations (USD per share) | (0.01) | (5.12) | 4.07 | (1.69) | (1.52) | 0.36 | 3.93 | (0.37) | (2.76) | 2.40 | 4.29 | |||
Basic earnings (loss) per common share attributable to Madison Square Garden Sports Corp.’s stockholders (USD per share) | (3.27) | (4.92) | 3.94 | (3.36) | (3.08) | 1.48 | 3.43 | (1.36) | (7.62) | 0.48 | 5.99 | |||
Diluted earnings (loss) per share, continuing operations (USD per share) | (3.26) | 0.20 | (0.13) | (1.67) | (1.56) | 1.12 | (0.50) | (0.99) | (4.86) | (1.91) | 1.69 | |||
Diluted earnings (loss) per share, discontinued operations (USD per share) | (0.01) | (5.12) | 4.06 | (1.69) | (1.52) | 0.36 | 3.92 | (0.37) | (2.76) | 2.39 | 4.25 | |||
Diluted earnings (loss) per common share attributable to Madison Square Garden Sports Corp.’s stockholders (USD per share) | $ (3.27) | $ (4.92) | $ 3.93 | $ (3.36) | $ (3.08) | $ 1.48 | $ 3.42 | $ (1.36) | $ (7.62) | $ 0.48 | $ 5.94 | |||
[1] | Include revenues from related parties of $138,881 , $148,207 and $142,319 for the years ended June 30, 2020 , 2019 and 2018 , respectively. |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2020 | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||||||
Balance at Beginning of Period | $ (219,240) | $ (77,515) | $ (89,023) | $ (219,240) | ||||||
Charged to Costs and Expenses | (53,684) | 7,282 | 129,746 | |||||||
Charged to Other Accounts | 0 | 3,837 | 0 | |||||||
Deductions | 82,886 | 389 | 471 | |||||||
Balance at End of Period | $ (48,313) | $ (89,023) | (48,313) | $ (77,515) | (89,023) | |||||
Decrease in deferred tax asset valuation allowance | (46,310) | 68,000 | 51,015 | |||||||
Statutory tax rate (percent) | 21.00% | 35.00% | 28.00% | |||||||
Other tax expense (benefit) | 2,453 | |||||||||
Allowance for doubtful accounts | ||||||||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||||||
Balance at Beginning of Period | $ (601) | (1,814) | [1] | $ (777) | (601) | |||||
Charged to Costs and Expenses | (7,170) | [1] | (1,426) | (647) | ||||||
Charged to Other Accounts | 0 | [1] | 0 | 0 | ||||||
Deductions | 8,804 | [1],[2] | 389 | 471 | ||||||
Balance at End of Period | (180) | [1] | $ (777) | (180) | [1] | (1,814) | [1] | (777) | ||
Deductions, discontinued operation | 8,769 | |||||||||
Deferred tax valuation allowance | ||||||||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||||||
Balance at Beginning of Period | $ (218,639) | (75,701) | [1] | (88,246) | (218,639) | |||||
Charged to Costs and Expenses | (46,514) | [1] | 8,708 | 130,393 | [3] | |||||
Charged to Other Accounts | 0 | [1] | 3,837 | 0 | ||||||
Deductions | 74,082 | [1],[4] | 0 | 0 | ||||||
Balance at End of Period | $ (48,133) | [1] | $ (88,246) | $ (48,133) | [1] | $ (75,701) | [1] | $ (88,246) | ||
[1] | Includes amounts classified as discontinued operations on the consolidated balance sheet. | |||||||||
[2] | Includes amounts reflected in discontinued operations of $8,769 . | |||||||||
[3] | Net decrease in valuation allowance reflects $51,015 of reduction to net deferred tax liabilities in connection with the lower federal income tax rate of 21% and other of $2,453 . | |||||||||
[4] | The Company completely offset the taxable income of discontinued operations, including taxable income resulting from the acceleration of deferred revenue with NOLs. The deferred tax assets for such NOLs had a full valuation allowance. Therefore, both the deferred tax asset and valuation allowance were reduced with no residual tax expense. The valuation allowance reduction relating to the NOL utilization was $68,000 . |