Cover
Cover - shares | 3 Months Ended | |
Sep. 30, 2021 | Oct. 29, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-36900 | |
Entity Registrant Name | MADISON SQUARE GARDEN SPORTS CORP. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-3373056 | |
Entity Address, Address Line One | Two Penn Plaza | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10121 | |
City Area Code | 212 | |
Local Phone Number | 465-1111 | |
Title of 12(b) Security | Class A Common Stock | |
Trading Symbol | MSGS | |
Security Exchange Name | NYSE | |
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 | |
Entity Shell Company | false | |
Entity Central Index Key | 0001636519 | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 19,688,624 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 4,529,517 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | |
Current Assets: | |||
Cash and cash equivalents | $ 33,610 | $ 64,902 | |
Restricted cash | [1] | 6,668 | 7,134 |
Accounts receivable, net of allowance for doubtful accounts of $0 and $0 as of September 30, 2021 and June 30, 2021, respectively | 54,872 | 74,197 | |
Net related party receivables | 9,545 | 6,420 | |
Prepaid expenses | 48,528 | 16,724 | |
Other current assets | 12,728 | 15,869 | |
Total current assets | 165,951 | 185,246 | |
Property and equipment, net of accumulated depreciation and amortization of $43,834 and $42,673 as of September 30, 2021 and June 30, 2021, respectively | 34,734 | 35,716 | |
Right-of-use lease assets | 702,605 | 703,521 | |
Amortizable intangible assets, net | 1,430 | 1,695 | |
Indefinite-lived intangible assets | 112,144 | 112,144 | |
Goodwill | 226,955 | 226,955 | |
Deferred income tax assets, net | 37,101 | 15,943 | |
Other assets | 47,016 | 28,719 | |
Total assets | 1,327,936 | 1,309,939 | |
Current Liabilities: | |||
Accounts payable | 1,692 | 2,226 | |
Net related party payables | 32,876 | 17,089 | |
Debt | 30,000 | 30,000 | |
Accrued liabilities: | |||
Employee related costs | 55,033 | 90,269 | |
Other accrued liabilities | 48,022 | 55,718 | |
Operating lease liabilities, current | [2] | 42,425 | 41,951 |
Deferred revenue | 219,725 | 131,025 | |
Total current liabilities | 429,773 | 368,278 | |
Long-term debt | 355,000 | 355,000 | |
Operating lease liabilities, noncurrent | [2] | 681,007 | 691,152 |
Defined benefit obligations | 6,251 | 6,283 | |
Other employee related costs | 54,842 | 57,740 | |
Deferred revenue, noncurrent | 31,497 | 31,603 | |
Other liabilities | 1,750 | 1,749 | |
Total liabilities | 1,560,120 | 1,511,805 | |
Commitments and contingencies (see Note 10) | |||
Madison Square Garden Sports Corp. Stockholders’ Equity: | |||
Preferred stock, par value $0.01, 15,000 shares authorized; none outstanding as of September 30, 2021 and June 30, 2021 | 0 | 0 | |
Additional paid-in capital | 0 | 23,102 | |
Treasury stock, at cost, 759 and 861 shares as of September 30, 2021 and June 30, 2021, respectively | (129,426) | (146,734) | |
Accumulated deficit | (103,235) | (78,898) | |
Accumulated other comprehensive loss | (2,005) | (2,027) | |
Total Madison Square Garden Sports Corp. stockholders’ equity | (234,417) | (204,308) | |
Nonredeemable noncontrolling interests | 2,233 | 2,442 | |
Total equity | (232,184) | (201,866) | |
Total liabilities and equity | 1,327,936 | 1,309,939 | |
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] | Restricted cash as of June 30, 2020 primarily included cash deposited in an escrow account (see Note 2 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2021 for more information). For all other periods, restricted cash relates to the Company’s revolving credit facilities (see Note 11 for more information). | ||
[2] | As of September 30, 2021, Operating lease liabilities, current and Operating lease liabilities, noncurrent included balances of $42,017 and $680,745, respectively, that are payable to MSG Entertainment. As of June 30, 2021, Operating lease liabilities, current and Operating lease liabilities, noncurrent included balances of $41,541 and $690,792, respectively, that are payable to MSG Entertainment. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 |
Accounts Receivable, Allowance for Credit Loss, Current | $ 0 | $ 0 |
Accumulated depreciation and amortization | $ 43,834 | $ 42,673 |
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 | 759,000 | 861,000 |
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 | 19,689,000 | 19,587,000 |
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 | 3 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | ||
Income Statement [Abstract] | |||
Revenues | [1] | $ 18,794 | $ 57,038 |
Operating expenses: | |||
Direct operating expenses | [2] | 8,578 | 39,786 |
Selling, general and administrative expenses | [3] | 43,728 | 42,996 |
Depreciation and amortization | 1,426 | 1,660 | |
Operating loss | (34,938) | (27,404) | |
Other income (expense): | |||
Interest income | 50 | 0 | |
Interest expense | (3,103) | (1,989) | |
Miscellaneous expense, net | (63) | (120) | |
Nonoperating income (loss) | (3,116) | (2,109) | |
Loss from operations before income taxes | (38,054) | (29,513) | |
Income tax benefit | 21,169 | 498 | |
Net loss | (16,885) | (29,015) | |
Less: Net loss attributable to nonredeemable noncontrolling interests | (480) | (598) | |
Net loss attributable to Madison Square Garden Sports Corp.’s stockholders | $ (16,405) | $ (28,417) | |
Earnings Per Share, Basic [Abstract] | |||
Basic earnings (loss) per common share, attributable to Madison Square Garden Sports Corp.'s stockholders (USD per share) | $ (0.68) | $ (1.18) | |
Earnings Per Share, Diluted [Abstract] | |||
Diluted earnings (loss) per common share attributable to Madison Square Garden Sports Corp.'s stockholders (USD per share) | $ (0.68) | $ (1.18) | |
Weighted-average number of common shares outstanding: | |||
Weighted-average shares for basic EPS | 24,172 | 24,062 | |
Diluted (in shares) | 24,172 | 24,062 | |
[1] | Includes revenues from related parties of $7,247 and $9,061 for the three months ended September 30, 2021 and 2020, respectively. | ||
[2] | Includes net charges from related parties of $2,158 and $614 for the three months ended September 30, 2021 and 2020, respectively. | ||
[3] | Includes net charges from related parties of $12,247 and $13,747 for the three months ended September 30, 2021 and 2020, respectively. |
Consolidated Statements Of Op_2
Consolidated Statements Of Operations (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||
Revenues from related parties | $ 7,247 | $ 9,061 |
Direct operating expenses from related parties | 2,158 | 614 |
Selling, general and administrative expenses from related parties | $ 12,247 | $ 13,747 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (16,885) | $ (29,015) |
Amounts reclassified from accumulated other comprehensive loss: | ||
Amortization of actuarial loss included in net periodic benefit cost | 33 | 10 |
Other comprehensive income, before income taxes | 33 | 10 |
Income tax expense related to items of other comprehensive income | (11) | 0 |
Other comprehensive income, net of income taxes | 22 | 10 |
Comprehensive loss | (16,863) | (29,005) |
Less: Comprehensive loss attributable to nonredeemable noncontrolling interests | (480) | (598) |
Comprehensive loss attributable to Madison Square Garden Sports Corp.’s stockholders | $ (16,383) | $ (28,407) |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (16,885) | $ (29,015) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 1,426 | 1,660 |
Benefits from deferred income taxes | (21,169) | (498) |
Share-based compensation expense | 4,851 | 6,345 |
Recovery of doubtful accounts | 0 | (175) |
Other non-cash adjustments | 437 | 127 |
Change in assets and liabilities: | ||
Accounts receivable, net | 19,325 | (7,887) |
Net related party receivables | (3,125) | (8,769) |
Prepaid expenses and other assets | (47,275) | (32,679) |
Accounts payable | (534) | (998) |
Net related party payables | 9,623 | 14,000 |
Accrued and other liabilities | (45,826) | (11,668) |
Deferred revenue | 88,597 | 11,663 |
Operating lease right-of-use assets and lease liabilities | (8,755) | 409 |
Net cash used in operating activities | (19,310) | (57,485) |
Cash flows from investing activities: | ||
Capital expenditures | (181) | (80) |
Other investing activities | (125) | 0 |
Net cash used in investing activities | (306) | (80) |
Cash flows from financing activities: | ||
Taxes paid in lieu of shares issued for equity-based compensation | (12,142) | (6,702) |
Payment of contingent consideration | 0 | (200) |
Net cash used in financing activities | (12,142) | (6,902) |
Net decrease in cash, cash equivalents and restricted cash | (31,758) | (64,467) |
Cash, cash equivalents and restricted cash at beginning of period | 72,036 | 90,673 |
Cash, cash equivalents and restricted cash at end of period | 40,278 | 26,206 |
Non-cash investing and financing activities: | ||
Capital expenditures incurred but not yet paid | $ 41 | $ 0 |
Consolidated Statements Of Equi
Consolidated Statements Of Equity And Redeemable Noncontrolling Interests - USD ($) $ in Thousands | Total | Common Stock Issued | Additional Paid-In Capital | Treasury Stock | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Madison Square Garden Sports Corp. Stockholders’ Equity | Non - redeemable Noncontrolling Interests |
Beginning balance at Jun. 30, 2020 | $ (203,435) | $ 249 | $ 5,940 | $ (167,431) | $ (43,605) | $ (2,139) | $ (206,986) | $ 3,551 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | (29,015) | (28,417) | (28,417) | (598) | ||||
Other comprehensive income (loss) | 10 | 10 | 10 | |||||
Comprehensive loss | (29,005) | (28,407) | (598) | |||||
Share-based compensation | 6,345 | 6,345 | 6,345 | |||||
Tax withholding associated with shares issued for equity-based compensation | (13,798) | (10,930) | (2,868) | (13,798) | ||||
Common stock issued under stock incentive plans | 0 | (1,355) | 19,826 | (18,471) | 0 | |||
Ending balance at Sep. 30, 2020 | (239,893) | 249 | 0 | (147,605) | (93,361) | (2,129) | (242,846) | 2,953 |
Beginning balance at Jun. 30, 2021 | (201,866) | 249 | 23,102 | (146,734) | (78,898) | (2,027) | (204,308) | 2,442 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | (16,885) | (16,405) | (16,405) | (480) | ||||
Other comprehensive income (loss) | 22 | 22 | 22 | |||||
Comprehensive loss | (16,863) | (16,383) | (480) | |||||
Share-based compensation | 4,851 | 4,851 | 4,851 | |||||
Tax withholding associated with shares issued for equity-based compensation | (18,306) | (18,306) | (18,306) | |||||
Common stock issued under stock incentive plans | 0 | (9,376) | 17,308 | (7,932) | 0 | |||
Noncontrolling Interest, Period Increase (Decrease) | 0 | (271) | (271) | 271 | ||||
Ending balance at Sep. 30, 2021 | $ (232,184) | $ 249 | $ 0 | $ (129,426) | $ (103,235) | $ (2,005) | $ (234,417) | $ 2,233 |
Description of Business and Bas
Description of Business and Basis of Presentation | 3 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation Description of Business Madison Square Garden Sports Corp. (together with its subsidiaries (collectively, “we,” “us,” “our,” “MSG Sports,” or the “Company”) owns and operates a portfolio of 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 sports 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.” 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 organize as one operating segment and 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. 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. Basis of Presentation The accompanying unaudited consolidated interim financial statements (referred to as the “Financial Statements” herein) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP“) and Article 10 of Regulation S-X of the SEC for interim financial information, and should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended June 30, 2021 (“fiscal year 2021”). The Financial Statements presented in this Quarterly Report on Form 10-Q are unaudited; however, in the opinion of management, the Financial Statements reflect all adjustments, consisting solely of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods presented. The results of operations for the periods presented are not necessarily indicative of the results that might be expected for future interim periods or for the full year. The dependence of MSG Sports on revenues from its NBA and NHL sports teams generally means it earns a disproportionate share of its revenues in the second and third quarters of the Company’s fiscal year. However, on March 11 and 12, 2020, the NBA and NHL, respectively, suspended their 2019-20 seasons due to COVID-19. In July and August 2020, the NBA and NHL, respectively, resumed their seasons. As a result, the Company recognized certain revenues that otherwise would have been recognized during the third and fourth quarter of fiscal year 2020 during the first quarter of fiscal year 2021. Impact of COVID-19 COVID-19 disruptions have materially impacted the Company’s revenues and the Company recognized materially less revenues, or in some cases no revenues, across a number of areas during the fiscal year ended June 30, 2021. In March 2020, the NBA and NHL suspended their 2019-20 seasons due to COVID-19. As a result of the suspension of the 2019-20 NBA and NHL seasons and subsequent resumption of play in July and August 2020, respectively, during the first quarter of fiscal year 2021, the Company recognized certain revenues that otherwise would have been recognized during the third and fourth quarters of fiscal year 2020. In addition, the start of the 2020-21 NBA and NHL regular seasons were delayed and the Knicks and the Rangers played fewer games, with the NBA playing a 72-game regular season schedule and the NHL playing a 56-game regular season schedule. These compare to traditional 82-game regular season schedules for both the NBA and NHL. In connection with the MSGE Distribution, we entered into the Arena License Agreements with MSG Entertainment. The Garden was not available for use between April 17, 2020 (the date of the MSGE Distribution) and the start of the NBA and NHL 2020-21 seasons in December 2020 and January 2021, respectively, due to the government-mandated suspension of events in response to COVID-19, and was available at reduced capacity through May 2021. As a result, the Company was not required to pay license fees to MSG Entertainment under the Arena License Agreements until games resumed at The Garden, and the Company continued to pay substantially reduced fees while attendance was limited. Effective July 1, 2021, the Company began paying license fees to MSG Entertainment under the Arena License Agreements in their full contractual amounts. These disruptions materially impacted the Company’s revenues across a number of areas, including, ticket sales; the Company’s share of suite licenses; sponsorships; signage and in-venue advertising at The Garden; and food, beverage and merchandise sales. During the fiscal year 2021, as a result of COVID-19, the Company implemented cost-reduction measures that included workforce reductions and limits on discretionary spending. In addition, as a result of the disruptions caused by COVID-19, certain operating expenses were reduced, including, in addition to the reduced payments to MSG Entertainment under the Arena License Agreements described above, (i) NBA league assessments and day-of-game expenses for Knicks and Rangers games, and (ii) league revenue sharing, net of escrow and team personnel expense. These expense reductions did not fully offset revenue losses. As a result of New York City regulations effective August 17, 2021, indoor entertainment venues such as The Garden are now permitted to host guests at full capacity, subject to certain restrictions, including that, all guests 12 years of age and older and employees (other than players who are not residents of New York City and who do not play for a New York City-based team) must show proof that they have received at least one dose of a COVID-19 vaccine. Guests are also required to wear masks unless they show proof of full COVID-19 vaccination (i.e., at least 14 days have passed after their final vaccine dose). Children under age 12 can attend events with a vaccinated adult, but ages 2 to 11 need to wear a mask while inside our venues. At this time, the Company’s management is unable to predict if there will be any longer-term effects due to these COVID-19 related disruptions. Fan attendance for the 2021-22 NBA and NHL seasons could be impacted by a resurgence in the COVID-19 pandemic such as the Delta variant, governmental and league restrictions on attendance of games at The Garden, reduced tourism, as well as general hesitancy among the public to return to pre-COVID-19 activity levels. The Company’s business is also particularly sensitive to discretionary business and consumer spending. COVID-19 could impede economic activity in impacted regions or globally over the long-term, causing a global recession and leading to a further decline in discretionary spending on sporting events and other leisure activities, including declines in domestic and international tourism, which could result in long-term effects on the Company’s business. |
Accounting Policies
Accounting Policies | 3 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies Principles of Consolidation The consolidated financial statements of the Company include the accounts of Madison Square Garden Sports Corp. and its subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. In addition, the consolidated financial statements of the Company include the accounts from CLG, in which the Company has a controlling voting interest. The Company’s consolidation criteria are based on authoritative accounting guidance for voting interest, controlling interest or variable interest entities. CLG is consolidated with the equity owned by other shareholders shown as nonredeemable noncontrolling interests in the accompanying consolidated balance sheets, and the other shareholders’ portion of net earnings (loss) and other comprehensive income (loss) shown as net income (loss) or comprehensive income (loss) attributable to nonredeemable noncontrolling interests in the accompanying consolidated statements of operations and consolidated statements of comprehensive income (loss), respectively. Use of Estimates The preparation of the accompanying Financial Statements in conformity with GAAP requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Such estimates include the valuation of accounts receivable, goodwill, intangible assets, other long-lived assets, deferred tax valuation allowance, 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. Recently Issued Accounting Pronouncements Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU eliminates certain exceptions to the general approach in Accounting Standards Codification (“ASC”) Topic 740 and includes methods of simplification to the existing guidance. The Company adopted this standard as of the beginning of fiscal year 2022, and the adoption did not have a material impact on its consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Sep. 30, 2021 | |
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. For the three months ended September 30, 2021 and 2020, the Company did not have any material impairment losses on receivables or contract assets arising from contracts with customers. 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 set forth in 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 three months ended September 30, 2021 and 2020: Three Months Ended September 30, 2021 2020 Event-related (a) $ 3,870 $ — Media rights (b) 6,586 50,189 Sponsorship, signage and suite licenses 3,170 2,950 League distributions and other 5,168 3,899 Total revenues from contracts with customers $ 18,794 $ 57,038 _________________ (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, (ii) revenue from the distribution through league-wide national and international television contracts, and (iii) other local radio rights fees. 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 September 30, 2021 and June 30, 2021. September 30, June 30, 2021 2021 Receivables from contracts with customers, net (a) $ 19,673 $ 30,834 Contract assets, current (b) 5,825 9,604 Deferred revenue, including non-current portion (c), (d) 251,222 162,628 _________________ (a) Receivables from contracts with customers, net, which are reported in Accounts receivable, net and Net related party receivables in the Company’s accompanying consolidated balance sheets, represent the Company’s unconditional rights to consideration under its contracts with customers. As of September 30, 2021 and June 30, 2021, the Company’s receivables reported above included $97 and $213, respectively, related to various related parties associated with contracts with customers. See Note 15 for further details on related party arrangements. Receivables from contracts with customers, net, excludes amounts recorded in Accounts receivable, net, associated with amounts due from the NBA and NHL related to escrow and player compensation recoveries and luxury tax payments. As of September 30, 2021, the Company had receivable balances related to escrow and player compensation recoveries of $32,013 and $10,700, recorded in Accounts receivable, net and Other assets, respectively. As of June 30, 2021, the Company had receivable balances related to escrow and player compensation recoveries of $36,525 and $10,700, recorded in Accounts receivable, net and Other assets, respectively. (b) Contract assets, current, which are reported as Other current assets in the Company’s accompanying 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, including non-current portion primarily relates to the Company’s receipt of consideration from customers or billing customers in advance of the Company’s transfer of goods or services to those customers. Deferred revenue is reduced and the related revenue is recognized once the underlying goods or services are transferred to a customer. The non-current portion of deferred revenue primarily consists of a $30,000 receipt from the NBA in December 2020 of league distributions in advance of the Company’s recognition. The Company’s deferred revenue related to local media rights was $32,458 and $260 as of September 30, 2021 and June 30, 2021, respectively. See Note 15 for further details on these related party arrangements. (d) Revenue recognized for the three months ended September 30, 2021 relating to the deferred revenue balance as of June 30, 2021 was $3,097. 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 September 30, 2021 and is based on current projections. 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, league-wide national and international television contracts, and certain other arrangements with variable consideration. Fiscal Year 2022 (remainder) $ 101,504 Fiscal Year 2023 75,984 Fiscal Year 2024 64,385 Fiscal Year 2025 40,505 Fiscal Year 2026 32,886 Thereafter 38,456 $ 353,720 |
Computation of Earnings (Loss)
Computation of Earnings (Loss) per Common Share | 3 Months Ended |
Sep. 30, 2021 | |
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”) and the number of shares excluded from diluted earnings (loss) per common share, as they were anti-dilutive. Three Months Ended September 30, 2021 2020 Weighted-average shares (denominator): Weighted-average shares for basic EPS 24,172 24,062 Dilutive effect of shares issuable under share-based compensation plans — — Weighted-average shares for diluted EPS 24,172 24,062 Weighted-average shares excluded from diluted earnings (loss) per share 196 654 |
Team Personnel Transactions
Team Personnel Transactions | 3 Months Ended |
Sep. 30, 2021 | |
Team Personnel Transactions [Abstract] | |
Team Personnel Transactions | Team Personnel TransactionsDirect operating expenses in the accompanying consolidated statements of operations include a net expense for transactions relating to the Company’s teams for waiver/contract termination costs and player trades (“Team personnel transactions”). Team personnel transactions expense was $727 and $10,873 for the three months ended September 30, 2021 and 2020, respectively. |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 3 Months Ended |
Sep. 30, 2021 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | 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 September 30, June 30, September 30, June 30, Captions on the consolidated balance sheets: Cash and cash equivalents $ 33,610 $ 64,902 $ 23,527 $ 77,852 Restricted cash (a) 6,668 7,134 2,679 12,821 Cash, cash equivalents and restricted cash on the consolidated statements of cash flows $ 40,278 $ 72,036 $ 26,206 $ 90,673 _________________ (a) Restricted cash as of June 30, 2020 primarily included cash deposited in an escrow account (see Note 2 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2021 for more information). For all other periods, restricted cash relates to the Company’s revolving credit facilities (see Note 11 for more information). |
Leases
Leases | 3 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | Leases The Company’s leases primarily consist of the lease of the Company’s principal executive offices under the Sublease Agreement with MSG Entertainment (the “Sublease Agreement”) 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 ASC Topic 842, Leases. See Note 8 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2021 for more information regarding the Company’s accounting policies associated with its leases. In connection with the MSGE Distribution, the Company entered into the Arena License Agreements with MSG Entertainment that end on June 30, 2055 and 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. Absent the reduced payments due to the government-mandated suspension of events at The Garden in response to COVID-19 described below, the stated license fee for the first full contract year ended June 30, 2021 would have been approximately $22,500 for the Knicks and approximately $16,700 for the Rangers, and then for each subsequent year, the license fees are 103% of the license fees for the immediately preceding contract year. The Garden was not available for use between April 17, 2020 and the start of the NBA and NHL 2020-21 seasons in December 2020 and January 2021, respectively, due to the government-mandated suspension of events in response to COVID-19, and as a result the Company was not required to pay license fees to MSG Entertainment under the Arena License Agreements. During the three months ended September 30, 2021, the Company recognized operating lease costs associated with the Rangers Arena License Agreement with respect to games played at The Garden in September 2021. During the three months ended September 30, 2020, there were no events and thus no operating lease costs were recorded. As of September 30, 2021, the Company’s existing operating leases, which are recorded in the accompanying financial statements, have remaining lease terms ranging from 11 months to 34 years. In certain instances, leases include options to renew, with varying option terms. The exercise of lease renewals, 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 accompanying consolidated balance sheets as of September 30, 2021 and June 30, 2021: Line Item in the Company’s Consolidated Balance Sheet September 30, June 30, Right-of-use assets: Operating leases Right-of-use lease assets $ 702,605 $ 703,521 Lease liabilities: Operating leases, current (a) Operating lease liabilities, current $ 42,425 $ 41,951 Operating leases, noncurrent (a) Operating lease liabilities, noncurrent 681,007 691,152 Total lease liabilities $ 723,432 $ 733,103 _________________ (a) As of September 30, 2021, Operating lease liabilities, current and Operating lease liabilities, noncurrent included balances of $42,017 and $680,745, respectively, that are payable to MSG Entertainment. As of June 30, 2021, Operating lease liabilities, current and Operating lease liabilities, noncurrent included balances of $41,541 and $690,792, respectively, that are payable to MSG Entertainment. The following table summarizes the activity recorded within the Company’s accompanying consolidated statements of operations for the three months ended September 30, 2021 and 2020: Line Item in the Company’s Consolidated Statement of Operations Three Months Ended September 30, 2021 2020 Operating lease cost Direct operating expenses $ 1,407 $ 90 Operating lease cost Selling, general and administrative expenses 611 611 Short-term lease cost Direct operating expenses 36 24 Total lease cost $ 2,054 $ 725 Supplemental Information For the three months ended September 30, 2021 and 2020, cash paid for amounts included in the measurement of lease liabilities was $10,768 and $295, respectively. The weighted average remaining lease term for operating leases recorded on the accompanying consolidated balance sheet as of September 30, 2021 was 33.4 years. The weighted average discount rate was 7.13% as of September 30, 2021 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 September 30, 2021 are as follows: Fiscal Year 2022 (remainder) $ 32,790 Fiscal Year 2023 45,029 Fiscal Year 2024 44,937 Fiscal Year 2025 44,052 Fiscal Year 2026 45,374 Thereafter 2,113,312 Total lease payments 2,325,494 Less imputed interest (1,602,062) Total lease liabilities $ 723,432 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets During the first quarter of fiscal year 2022, the Company performed its annual impairment test of goodwill and determined that there were no impairments identified as of the impairment test date. The carrying amount of goodwill as of September 30, 2021 and June 30, 2021 is $226,955. The Company’s indefinite-lived intangible assets as of September 30, 2021 and June 30, 2021 are as follows: Sports franchises $ 111,064 Photographic related rights 1,080 $ 112,144 During the first quarter of fiscal year 2022, the Company performed its annual impairment test of identifiable indefinite-lived intangible assets and determined that there were no impairments identified as of the impairment test date. The Company’s intangible assets subject to amortization are as follows: September 30, 2021 Gross Accumulated Net Trade names $ 2,300 $ (1,917) $ 383 Non-compete agreements 2,400 (2,000) 400 Other intangibles 1,200 (553) 647 $ 5,900 $ (4,470) $ 1,430 June 30, 2021 Gross Accumulated Net Trade names $ 2,300 $ (1,802) $ 498 Non-compete agreements 2,400 (1,880) 520 Other intangibles 1,200 (523) 677 $ 5,900 $ (4,205) $ 1,695 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table presents the Company’s assets that are measured at fair value on a recurring basis, which include cash equivalents: Fair Value Hierarchy September 30, June 30, Assets: Money market account I $ 11,916 $ 33,820 Time deposit I 1 5,000 Total assets measured at fair value $ 11,917 $ 38,820 Assets listed above are classified within Level I of the fair value hierarchy as they are valued using observable inputs that reflect quoted prices for identical assets in active markets. The carrying amount of the Company’s money market account and time deposit approximates fair value due to their short-term maturities. The carrying value and fair value of the Company’s financial instruments reported in the accompanying consolidated balance sheets are as follows: September 30, 2021 June 30, 2021 Carrying Fair Carrying Fair Liabilities Debt, current (a) $ 30,000 $ 30,000 $ 30,000 $ 30,000 Long-term debt (b) $ 355,000 $ 355,000 $ 355,000 $ 355,000 _________________ (a) The Company’s debt, current 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. The fair value of the Company’s debt, current is the same as its carrying amount as the debt bears interest at current market conditions. See Note 11 for further details. (b) 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. The fair value of the Company’s long-term debt is the same as its carrying amount as the debt bears interest at a variable rate indexed to current market conditions. See Note 11 for further details. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments As more fully described in Note 12 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2021, the Company’s commitments consist primarily 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. In addition, see Note 7 for more information on the contractual obligations related to future lease payments. The Company did not have any material changes in its contractual obligations, including off-balance sheet commitments, since the end of fiscal year 2021 other than activities in the ordinary course of business. 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), management does not believe that resolution of these lawsuits will have a material adverse effect on the Company. |
Debt
Debt | 3 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt 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 “2016 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 “2016 Knicks Revolving Credit Facility”) to fund working capital needs and for general corporate purposes. The 2016 Knicks Revolving Credit Facility would have matured and any unused commitments thereunder would have expired on September 30, 2021. On November 6, 2020, the Company amended and restated the 2016 Knicks Credit Agreement in its entirety (the “2020 Knicks Credit Agreement”). The 2020 Knicks Credit Agreement provides for a senior secured revolving credit facility of up to $275,000 (the “2020 Knicks Revolving Credit Facility”) to fund working capital needs and for general corporate purposes. The maturity date of the 2020 Knicks Credit Agreement is November 6, 2023. Amounts borrowed may be distributed to the Company except during an event of default. All borrowings under the 2020 Knicks Revolving Credit Facility are subject to the satisfaction of certain customary conditions. Borrowings under the 2020 Knicks Credit Agreement 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 0.500% to 0.750% per annum or (ii) the London Inter-Bank Offered Rate (“LIBOR”) plus a margin ranging from 1.500% to 1.750% per annum. Knicks LLC is required to pay a commitment fee ranging from 0.250% to 0.300% per annum in respect of the average daily unused commitments under the 2020 Knicks Revolving Credit Facility. The outstanding balance under the 2020 Knicks Revolving Credit Facility was $220,000 as of September 30, 2021 and was recorded as Long-term debt in the accompanying consolidated balance sheet. The interest rate on the 2020 Knicks Revolving Credit Facility as of September 30, 2021 was 1.59%. During the three months ended September 30, 2021 the Company made interest payments of $915. All obligations under the 2020 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, (ii) revenues to be paid to the Knicks LLC by the NBA pursuant to certain U.S. national broadcast agreements, and (iii) revenues to be paid to Knicks LLC pursuant to local media contracts. Subject to customary notice and minimum amount conditions, Knicks LLC may voluntarily prepay outstanding loans under the 2020 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 2020 Knicks Revolving Credit Facility is greater than 350% of qualified revenues. In addition to the financial covenant described above, the 2020 Knicks Credit Agreement and related security agreements contain certain customary representations and warranties, affirmative covenants and events of default. The 2020 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 2020 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 2020 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. The 2020 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 September 30, 2021, Knicks LLC was in compliance with this financial covenant. 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 was renewed for a new term effective as of September 25, 2020. On November 6, 2020, the Company terminated the Knicks Unsecured Credit Facility in its entirety. Knicks Holdings Credit Facility On November 6, 2020, Knicks Holdings, LLC, an indirect, wholly-owned subsidiary of the Company and the direct parent of Knicks LLC (“Knicks Holdings”), entered into a new credit agreement with a syndicate of lenders (the “2020 Knicks Holdings Credit Agreement”). The 2020 Knicks Holdings Credit Agreement provides for a revolving credit facility of up to $75,000 (the “2020 Knicks Holdings Revolving Credit Facility”) to fund working capital needs and for general corporate purposes. The 2020 Knicks Holdings Revolving Credit Facility requires Knicks Holdings to comply with a debt service ratio of 1.1:1.0 over a trailing four quarter period. As of September 30, 2021, Knicks Holdings was in compliance with this financial covenant. The 2020 Knicks Holdings Revolving Credit Facility will mature and any unused commitments thereunder will expire on November 6, 2023. All borrowings under the 2020 Knicks Holdings Revolving Credit Facility are subject to the satisfaction of certain customary conditions. Borrowings under the 2020 Knicks Holdings Revolving Credit Facility bear interest at a floating rate, which at the option of Knicks Holdings may be either (i) a base rate plus a margin ranging from 1.000% to 1.250% per annum or (ii) LIBOR plus a margin ranging from 2.000% to 2.250% per annum. Knicks Holdings is required to pay a commitment fee ranging from 0.375% to 0.500% per annum in respect of the average daily unused commitments under the 2020 Knicks Holdings Revolving Credit Facility . There was no borrowing under the 2020 Knicks Holdings Revolving Credit Facility as of September 30, 2021. All obligations under the 2020 Knicks Holdings Revolving Credit Facility are secured by debt service and distribution accounts maintained by Knicks Holdings, and includes a guarantee from MSG NYK Holdings, LLC, an indirect wholly-owned subsidiary of the Company and the direct parent of Knicks Holdings. Subject to customary notice and minimum amount conditions, Knicks Holdings may voluntarily prepay outstanding loans under the 2020 Knicks Holdings 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 Holdings is required to make mandatory prepayments in certain circumstances, including if the amount of commitments under the 2020 Knicks Holdings Revolving Credit Facility increase above $350,000. In addition to the financial covenant described above, the 2020 Knicks Holdings Revolving Credit Facility and related security agreements contain certain customary representations and warranties, affirmative covenants and events of default. The 2020 Knicks Holdings Revolving Credit Facility contains certain restrictions on the ability of Knicks Holdings to take certain actions as provided in (and subject to various exceptions and baskets set forth in) the 2020 Knicks Holdings 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 2020 Knicks Holdings 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 Holdings’ collateral. 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 “2017 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 “2017 Rangers Revolving Credit Facility”) to fund working capital needs and for general corporate purposes. The 2017 Rangers Revolving Credit Facility would have matured and any unused commitments thereunder would have expired on January 25, 2022. On November 6, 2020, the Company amended and restated the 2017 Rangers Credit Agreement in its entirety (the “2020 Rangers Credit Agreement”). The 2020 Rangers Credit Agreement provides for a senior secured revolving credit facility of up to $250,000 (the “2020 Rangers Revolving Credit Facility”) to fund working capital needs and for general corporate purposes. The maturity date of the 2020 Rangers Credit Agreement is November 6, 2023. Amounts borrowed may have been distributed to the Company except during an event of default. All borrowings under the 2020 Rangers Revolving Credit Facility were subject to the satisfaction of certain customary conditions. Borrowings under the 2020 Rangers Credit Agreement 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 0.750% to 1.250% per annum or (ii) LIBOR plus a margin ranging from 1.750% to 2.250% 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 2020 Rangers Revolving Credit Facility. The outstanding balance under the 2020 Rangers Revolving Credit Facility was $135,000 as of September 30, 2021 and was recorded as Long-term debt in the accompanying consolidated balance sheet. The interest rate on the 2020 Rangers Revolving Credit Facility as of September 30, 2021 was 2.09%. During the three months ended September 30, 2021 the Company made interest payments of $738. All obligations under the 2020 Rangers Revolving Credit Facility are, subject to the 2021 Rangers NHL Advance Agreement (as defined below), 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 2020 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 2020 Rangers Revolving Credit Facility. In addition to the financial covenant described above, the 2020 Rangers Credit Agreement and related security agreements contain certain customary representations and warranties, affirmative covenants and events of default. The 2020 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 2020 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 2020 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 2020 Rangers Revolving Credit Facility. The 2020 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 September 30, 2021, Rangers LLC was in compliance with this financial covenant. 2021 Rangers NHL Advance Agreement On March 19, 2021, Rangers LLC, Rangers Holdings, LLC and MSG NYR Holdings LLC entered into an advance agreement with the NHL (the “2021 Rangers NHL Advance Agreement”) pursuant to which the NHL advanced $30,000 to Rangers LLC. The advance is to be utilized solely and exclusively to pay for Rangers LLC operating expenses. All obligations under the 2021 Rangers NHL Advance Agreement are senior to and shall have priority over all secured and other indebtedness of Rangers LLC, Rangers Holdings, LLC and MSG NYR Holdings LLC. All borrowings under the 2021 Rangers NHL Advance Agreement were made on a non-revolving basis and bear interest at 3.00% per annum, ending on the date any such advances are fully repaid. Advances received under the 2021 Rangers NHL Advance Agreement are payable upon demand by the NHL. It is expected that the advanced amount will be set off against funds that would otherwise be paid, distributed or transferred by the NHL to Rangers LLC. The outstanding balance under the 2021 Rangers NHL Advance Agreement was $30,000 as of September 30, 2021 and was recorded as Debt in the accompanying consolidated balance sheet. During the three months ended September 30, 2021 the Company made interest payments of $225. Deferred Financing Costs The following table summarizes deferred financing costs, net of amortization, related to the Company’s credit facilities as reported on the accompanying consolidated balance sheet: September 30, June 30, Other current assets $ 1,759 $ 1,759 Other assets 1,905 2,345 |
Pension Plans and Other Postret
Pension Plans and Other Postretirement Benefit Plan | 3 Months Ended |
Sep. 30, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Benefit Plans | Benefit Plans Defined Benefit Pension Plans Prior to the MSGE Distribution, the Company sponsored various defined benefit pension plans and a contributory welfare 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. See Note 14 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2021 for more information with regard to the liabilities retained by the Company from certain plans, which were transferred to the MSG Sports, LLC Excess Cash Balance Plan and MSG Sports, LLC 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 presents components of net periodic benefit cost for the MSGS Pension Plans included in the accompanying consolidated statements of operations for the three months ended September 30, 2021 and 2020. Net periodic benefit cost is reported in Miscellaneous expense, net. Three Months Ended September 30, 2021 2020 Interest cost $ 31 $ 60 Recognized actuarial loss 33 10 Net periodic benefit cost $ 64 $ 70 Defined Contribution 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”). As a result of the MSGE Distribution, the Savings Plans 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 the MSG Sports LLC Excess Savings Plan to provide non-qualified retirement benefits to eligible MSG Sports employees. See Note 14 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2021 for more information with regard to the liabilities retained by the Company. Expenses related to the Savings Plans that are included in the accompanying consolidated statements of operations for the three months ended September 30, 2021 and 2020 were $939 and $598, respectively. |
Share-based Compensation
Share-based Compensation | 3 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation | Share-based Compensation See Note 15 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2021 for more information regarding the Company’s 2015 Employee Stock Plan (the “Employee Stock Plan”) and its 2015 Stock Plan for Non-Employee Directors. Share-based compensation expense was recognized in the consolidated statements of operations as a component of selling, general and administrative expenses. Share-based compensation expense was $4,851 and $6,345 for the three months ended September 30, 2021 and 2020, respectively. There were no costs related to share-based compensation that were capitalized for the three months ended September 30, 2021 and 2020, respectively. Restricted Stock Units Award Activity The following table summarizes activity related to the Company’s restricted stock units and performance restricted stock units, collectively referred to as “RSUs,” held by the Company and MSG Entertainment employees, for the three months ended September 30, 2021: Number of Weighted-Average Fair Value Per Share at Date of Grant (a) Nonperformance Performance Unvested award balance, June 30, 2021 264 220 $ 234.39 Granted 48 44 $ 158.01 Vested (116) (85) $ 262.08 Unvested award balance, September 30, 2021 196 179 $ 201.10 _____________________ (a) Weighted-average fair value per share at date of grant does not reflect any adjustments to awards granted prior to the MSGE Distribution. The fair value of RSUs that vested during the three months ended September 30, 2021 was $36,380. Upon delivery, RSUs granted under the Employee Stock Plan were net share-settled to cover the required statutory tax withholding obligations. To fulfill the Company’s and MSG Entertainment’s employees’ required statutory tax withholding obligations for the applicable income and other employment taxes, 101 of these RSUs, with an aggregate value of $18,306, inclusive of $6,164 related to MSG Entertainment employees (who vested in the Company’s RSUs), were retained by the Company and the taxes paid are reflected as a financing activity in the accompanying consolidated statement of cash flows for the three months ended September 30, 2021. The fair value of RSUs that vested during the three months ended September 30, 2020 was $32,779. The weighted-average fair value per share at grant date of RSUs granted during the three months ended September 30, 2020 was $242.62. Stock Options Award Activity The following table summarizes activity related to the Company’s stock options for the three months ended September 30, 2021: Number of Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value Balance as of June 30, 2021 94 $ 145.78 Granted — $ — Cancelled — $ — Balance as of September 30, 2021 94 $ 145.78 6.21 $ 3,769 Exercisable as of September 30, 2021 94 $ 145.78 6.21 $ 3,769 |
Stock Repurchase Program
Stock Repurchase Program | 3 Months Ended |
Sep. 30, 2021 | |
Equity [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 three months ended September 30, 2021 and 2020, the Company did not engage in any share repurchase activities under its share repurchase program. As of September 30, 2021, the Company had $259,639 of availability remaining under its stock repurchase authorization. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions On July 9, 2021, MSG Networks merged with a subsidiary of MSG Entertainment and became a wholly-owned subsidiary of MSG Entertainment (the “MSGE-MSGN Merger”). Accordingly, agreements between the Company and MSG Networks are now effectively agreements with MSG Entertainment on a consolidated basis. As of September 30, 2021, 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 100% of the Company’s outstanding Class B Common Stock and own approximately 3.1% of the Company’s outstanding Class A Common Stock. Such shares of the Company’s Class A Common Stock and Class B Common Stock, collectively, represent approximately 70.6% 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 and AMC Networks Inc. (“AMC Networks”). Members of the Dolan family were the direct controlling stockholders of MSG Networks prior to the MSGE-MSGN Merger and indirectly control MSG Networks through MSG Entertainment’s ownership of MSG Networks. The Company is party to the following agreements and/or arrangements with MSG Entertainment and MSG Networks, as applicable: • Arena License Agreements pursuant to which MSG Entertainment (i) provides the right to use The Garden for games of the Knicks and the 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 sales of food and beverage concessions in exchange for 50% of net profits from the sales and catering services during 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 July 2015 with stated terms of 20 years, providing MSG Networks with local telecast rights for Knicks and Rangers games in exchange for media rights fees; • 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. In addition, under this agreement, the Company is charged by MSG Entertainment for sales and service staff and overhead associated with the sales of sponsorship assets; • 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; • Transition Services Agreement (the “TSA”) pursuant to which the Company receives certain services from MSG Entertainment, such as information technology, accounts payable, payroll, human resources, and other corporate functions, as well as the executive support services, in exchange for service fees. As a result of the MSGE-MSGN Merger, the TSA is expected to be amended to provide for the provision of certain legal services by the Company to MSG Entertainment, including its wholly-owned subsidiary, MSG Networks; • A services agreement with MSG Networks, pursuant to which the Company provides certain legal services to MSG Networks (the “MSGN Services Agreement”). As a result of the MSGE-MSGN Merger, the MSGN Services Agreement is expected to be terminated, and any services provided to MSG Networks are expected to be provided pursuant to the TSA; • Sublease agreement, pursuant to which the Company leases 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 and reimbursement for sales and service staff and overhead associated with the ticket sales on behalf of MSG Entertainment; • Aircraft sharing agreements pursuant to which MSG Entertainment has agreed from time to time to make its aircraft and aircraft it leases from other related parties 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 MSGS Distribution, including a distribution agreement, 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; (ii) the Company’s Vice Chairman with AMC Networks and MSG Entertainment; and (iii) the Company’s President and Chief Executive Officer with MSG Entertainment. Additionally, the Company, MSG Entertainment, and AMC Networks allocate 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, the Company’s Executive Chairman and a director, is the founder and Chief Executive Officer of 605, LLC. James L. Dolan 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. Revenues and Operating Expenses The following table summarizes the composition and amounts of the transactions with the Company’s affiliates. These amounts are reflected in revenues and operating expenses in the accompanying consolidated statements of operations for the three months ended September 30, 2021 and 2020: Three Months Ended September 30, 2021 2020 Revenues $ 7,247 $ 9,061 Operating expenses: Corporate general and administrative expenses, net $ 9,599 $ 11,643 Costs associated with the Sponsorship sales and service representation agreements 2,733 2,358 Costs associated with the Arena License Agreements 1,960 — Other operating expenses, net 113 360 Revenues Revenues from related parties primarily consist of local media rights recognized from the licensing of team-related programming under the media rights agreements covering the Knicks and the Rangers, which provide MSG Networks with exclusive media rights to team games in their local markets. Corporate general and administrative expenses, net Corporate general and administrative expenses, net reflects net charges of $8,884 and $11,036 from MSG Entertainment pursuant to the TSA for certain business functions that were previously performed by internal resources for the three months ended September 30, 2021 and 2020, respectively. 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. In addition, Corporate general and administrative expenses, net reflects rent expense of $715 and $695 associated with the lease of office space from MSG Entertainment for the three months ended September 30, 2021 and 2020, respectively. See Note 7 for more information regarding the lease of office space from MSG Entertainment. Corporate general and administrative expenses, net for the three months ended September 30, 2020 also reflects charges from the Company to MSG Networks for the period prior to the MSGE-MSGN Merger under the MSGN Services Agreement. 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. Costs associated with the Arena License Agreements For the three months ended September 30, 2021, costs associated with the Arena License Agreements include $1,311 recorded as operating lease cost. See Note 7 for more information regarding Arena License Agreements. Other operating expenses, net |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax benefit for the three months ended September 30, 2021 of $21,169 reflects an effective tax rate of 56%. In general, the Company is required to use an estimated annual effective tax rate to measure the tax benefit or tax expense recognized in an interim period. The estimated annual effective tax rate exceeds the statutory federal tax rate of 21% primarily due to state taxes and nondeductible officers’ compensation and disability insurance premiums expense. The estimated annual effective tax rate is revised on a quarterly basis. Income tax benefit for the three months ended September 30, 2020 of $498 differs from income tax benefit derived from applying the statutory federal rate of 21% to the pretax loss primarily due to tax expense of $7,621 related to an increase in the valuation allowance and tax expense of $861 from nondeductible officers’ compensation, partially offset by state income tax benefit of $2,834 . 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. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of PresentationThe accompanying unaudited consolidated interim financial statements (referred to as the “Financial Statements” herein) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP“) and Article 10 of Regulation S-X of the SEC for interim financial information, and should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended June 30, 2021 (“fiscal year 2021”). The Financial Statements presented in this Quarterly Report on Form 10-Q are unaudited; however, in the opinion of management, the Financial Statements reflect all adjustments, consisting solely of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods presented. The results of operations for the periods presented are not necessarily indicative of the results that might be expected for future interim periods or for the full year. The dependence of MSG Sports on revenues from its NBA and NHL sports teams generally means it earns a disproportionate share of its revenues in the second and third quarters of the Company’s fiscal year. However, on March 11 and 12, 2020, the NBA and NHL, respectively, suspended their 2019-20 seasons due to COVID-19. In July and August 2020, the NBA and NHL, respectively, resumed their seasons. As a result, the Company recognized certain revenues that otherwise would have been recognized during the third and fourth quarter of fiscal year 2020 during the first quarter of fiscal year 2021. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements of the Company include the accounts of Madison Square Garden Sports Corp. and its subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. In addition, the consolidated financial statements of the Company include the accounts from CLG, in which the Company has a controlling voting interest. The Company’s consolidation criteria are based on authoritative accounting guidance for voting interest, controlling interest or variable interest entities. CLG is consolidated with the equity owned by other shareholders shown as nonredeemable noncontrolling interests in the accompanying consolidated balance sheets, and the other shareholders’ portion of net earnings (loss) and other comprehensive income (loss) shown as net income (loss) or comprehensive income (loss) attributable to nonredeemable noncontrolling interests in the accompanying consolidated statements of operations and consolidated statements of comprehensive income (loss), respectively. |
Use of Estimates | Use of Estimates The preparation of the accompanying Financial Statements in conformity with GAAP requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Such estimates include the valuation of accounts receivable, goodwill, intangible assets, other long-lived assets, deferred tax valuation allowance, 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. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU eliminates certain exceptions to the general approach in Accounting Standards Codification (“ASC”) Topic 740 and includes methods of simplification to the existing guidance. The Company adopted this standard as of the beginning of fiscal year 2022, and the adoption did not have a material impact on its consolidated financial statements. |
Revenue, Remaining Performance Obligation | 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, league-wide national and international television contracts, and certain other arrangements with variable consideration. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
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 set forth in 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 three months ended September 30, 2021 and 2020: Three Months Ended September 30, 2021 2020 Event-related (a) $ 3,870 $ — Media rights (b) 6,586 50,189 Sponsorship, signage and suite licenses 3,170 2,950 League distributions and other 5,168 3,899 Total revenues from contracts with customers $ 18,794 $ 57,038 _________________ (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, (ii) revenue from the distribution through league-wide national and international television contracts, and (iii) other local radio rights fees. |
Contract with Customer, Contract Assets and Liabilities | The following table provides information about contract balances from the Company’s contracts with customers as of September 30, 2021 and June 30, 2021. September 30, June 30, 2021 2021 Receivables from contracts with customers, net (a) $ 19,673 $ 30,834 Contract assets, current (b) 5,825 9,604 Deferred revenue, including non-current portion (c), (d) 251,222 162,628 _________________ (a) Receivables from contracts with customers, net, which are reported in Accounts receivable, net and Net related party receivables in the Company’s accompanying consolidated balance sheets, represent the Company’s unconditional rights to consideration under its contracts with customers. As of September 30, 2021 and June 30, 2021, the Company’s receivables reported above included $97 and $213, respectively, related to various related parties associated with contracts with customers. See Note 15 for further details on related party arrangements. Receivables from contracts with customers, net, excludes amounts recorded in Accounts receivable, net, associated with amounts due from the NBA and NHL related to escrow and player compensation recoveries and luxury tax payments. As of September 30, 2021, the Company had receivable balances related to escrow and player compensation recoveries of $32,013 and $10,700, recorded in Accounts receivable, net and Other assets, respectively. As of June 30, 2021, the Company had receivable balances related to escrow and player compensation recoveries of $36,525 and $10,700, recorded in Accounts receivable, net and Other assets, respectively. (b) Contract assets, current, which are reported as Other current assets in the Company’s accompanying 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, including non-current portion primarily relates to the Company’s receipt of consideration from customers or billing customers in advance of the Company’s transfer of goods or services to those customers. Deferred revenue is reduced and the related revenue is recognized once the underlying goods or services are transferred to a customer. The non-current portion of deferred revenue primarily consists of a $30,000 receipt from the NBA in December 2020 of league distributions in advance of the Company’s recognition. The Company’s deferred revenue related to local media rights was $32,458 and $260 as of September 30, 2021 and June 30, 2021, respectively. See Note 15 for further details on these related party arrangements. |
Revenue, Remaining Performance Obligation | 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 September 30, 2021 and is based on current projections. 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, league-wide national and international television contracts, and certain other arrangements with variable consideration. Fiscal Year 2022 (remainder) $ 101,504 Fiscal Year 2023 75,984 Fiscal Year 2024 64,385 Fiscal Year 2025 40,505 Fiscal Year 2026 32,886 Thereafter 38,456 $ 353,720 |
Computation of Earnings (Loss_2
Computation of Earnings (Loss) per Common Share (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | 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”) and the number of shares excluded from diluted earnings (loss) per common share, as they were anti-dilutive. Three Months Ended September 30, 2021 2020 Weighted-average shares (denominator): Weighted-average shares for basic EPS 24,172 24,062 Dilutive effect of shares issuable under share-based compensation plans — — Weighted-average shares for diluted EPS 24,172 24,062 Weighted-average shares excluded from diluted earnings (loss) per share 196 654 |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |
Schedule Of Cash, Cash Equivalents, Restricted Cash And Restricted Cash Equivalents | The following table provides a summary of the amounts recorded as cash, cash equivalents and restricted cash. As of September 30, June 30, September 30, June 30, Captions on the consolidated balance sheets: Cash and cash equivalents $ 33,610 $ 64,902 $ 23,527 $ 77,852 Restricted cash (a) 6,668 7,134 2,679 12,821 Cash, cash equivalents and restricted cash on the consolidated statements of cash flows $ 40,278 $ 72,036 $ 26,206 $ 90,673 _________________ (a) Restricted cash as of June 30, 2020 primarily included cash deposited in an escrow account (see Note 2 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2021 for more information). For all other periods, restricted cash relates to the Company’s revolving credit facilities (see Note 11 for more information). |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Lease, Lessee, Supplemental Information | The following table summarizes the ROU assets and lease liabilities recorded on the Company’s accompanying consolidated balance sheets as of September 30, 2021 and June 30, 2021: Line Item in the Company’s Consolidated Balance Sheet September 30, June 30, Right-of-use assets: Operating leases Right-of-use lease assets $ 702,605 $ 703,521 Lease liabilities: Operating leases, current (a) Operating lease liabilities, current $ 42,425 $ 41,951 Operating leases, noncurrent (a) Operating lease liabilities, noncurrent 681,007 691,152 Total lease liabilities $ 723,432 $ 733,103 _________________ (a) As of September 30, 2021, Operating lease liabilities, current and Operating lease liabilities, noncurrent included balances of $42,017 and $680,745, respectively, that are payable to MSG Entertainment. As of June 30, 2021, Operating lease liabilities, current and Operating lease liabilities, noncurrent included balances of $41,541 and $690,792, respectively, that are payable to MSG Entertainment. |
Lease, Cost | The following table summarizes the activity recorded within the Company’s accompanying consolidated statements of operations for the three months ended September 30, 2021 and 2020: Line Item in the Company’s Consolidated Statement of Operations Three Months Ended September 30, 2021 2020 Operating lease cost Direct operating expenses $ 1,407 $ 90 Operating lease cost Selling, general and administrative expenses 611 611 Short-term lease cost Direct operating expenses 36 24 Total lease cost $ 2,054 $ 725 |
Lessee, Operating Lease, Liability, Maturity | Maturities of operating lease liabilities as of September 30, 2021 are as follows: Fiscal Year 2022 (remainder) $ 32,790 Fiscal Year 2023 45,029 Fiscal Year 2024 44,937 Fiscal Year 2025 44,052 Fiscal Year 2026 45,374 Thereafter 2,113,312 Total lease payments 2,325,494 Less imputed interest (1,602,062) Total lease liabilities $ 723,432 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Indefinite-Lived Intangible Assets | The Company’s indefinite-lived intangible assets as of September 30, 2021 and June 30, 2021 are as follows: Sports franchises $ 111,064 Photographic related rights 1,080 $ 112,144 |
Schedule of Intangible Assets Subject to Amortization | The Company’s intangible assets subject to amortization are as follows: September 30, 2021 Gross Accumulated Net Trade names $ 2,300 $ (1,917) $ 383 Non-compete agreements 2,400 (2,000) 400 Other intangibles 1,200 (553) 647 $ 5,900 $ (4,470) $ 1,430 June 30, 2021 Gross Accumulated Net Trade names $ 2,300 $ (1,802) $ 498 Non-compete agreements 2,400 (1,880) 520 Other intangibles 1,200 (523) 677 $ 5,900 $ (4,205) $ 1,695 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets Measured on a Recurring Basis [Table Text Block] | The following table presents the Company’s assets that are measured at fair value on a recurring basis, which include cash equivalents: Fair Value Hierarchy September 30, June 30, Assets: Money market account I $ 11,916 $ 33,820 Time deposit I 1 5,000 Total assets measured at fair value $ 11,917 $ 38,820 Assets listed above are classified within Level I of the fair value hierarchy as they are valued using observable inputs that reflect quoted prices for identical assets in active markets. The carrying amount of the Company’s money market account and time deposit approximates fair value due to their short-term maturities. |
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: September 30, 2021 June 30, 2021 Carrying Fair Carrying Fair Liabilities Debt, current (a) $ 30,000 $ 30,000 $ 30,000 $ 30,000 Long-term debt (b) $ 355,000 $ 355,000 $ 355,000 $ 355,000 _________________ (a) The Company’s debt, current 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. The fair value of the Company’s debt, current is the same as its carrying amount as the debt bears interest at current market conditions. See Note 11 for further details. (b) 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. The fair value of the Company’s long-term debt is the same as its carrying amount as the debt bears interest at a variable rate indexed to current market conditions. See Note 11 for further details. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Deferred Financing Costs | The following table summarizes deferred financing costs, net of amortization, related to the Company’s credit facilities as reported on the accompanying consolidated balance sheet: September 30, June 30, Other current assets $ 1,759 $ 1,759 Other assets 1,905 2,345 |
Pension Plans and Other Postr_2
Pension Plans and Other Postretirement Benefit Plan (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Schedule of Net Periodic Benefit Cost | The following table presents components of net periodic benefit cost for the MSGS Pension Plans included in the accompanying consolidated statements of operations for the three months ended September 30, 2021 and 2020. Net periodic benefit cost is reported in Miscellaneous expense, net. Three Months Ended September 30, 2021 2020 Interest cost $ 31 $ 60 Recognized actuarial loss 33 10 Net periodic benefit cost $ 64 $ 70 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement, Restricted Stock Unit, Activity | The following table summarizes activity related to the Company’s restricted stock units and performance restricted stock units, collectively referred to as “RSUs,” held by the Company and MSG Entertainment employees, for the three months ended September 30, 2021: Number of Weighted-Average Fair Value Per Share at Date of Grant (a) Nonperformance Performance Unvested award balance, June 30, 2021 264 220 $ 234.39 Granted 48 44 $ 158.01 Vested (116) (85) $ 262.08 Unvested award balance, September 30, 2021 196 179 $ 201.10 _____________________ (a) Weighted-average fair value per share at date of grant does not reflect any adjustments to awards granted prior to the MSGE Distribution. |
Share-based Payment Arrangement, Option, Activity | The following table summarizes activity related to the Company’s stock options for the three months ended September 30, 2021: Number of Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value Balance as of June 30, 2021 94 $ 145.78 Granted — $ — Cancelled — $ — Balance as of September 30, 2021 94 $ 145.78 6.21 $ 3,769 Exercisable as of September 30, 2021 94 $ 145.78 6.21 $ 3,769 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
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. These amounts are reflected in revenues and operating expenses in the accompanying consolidated statements of operations for the three months ended September 30, 2021 and 2020: Three Months Ended September 30, 2021 2020 Revenues $ 7,247 $ 9,061 Operating expenses: Corporate general and administrative expenses, net $ 9,599 $ 11,643 Costs associated with the Sponsorship sales and service representation agreements 2,733 2,358 Costs associated with the Arena License Agreements 1,960 — Other operating expenses, net 113 360 |
Description of Business and B_2
Description of Business and Basis of Presentation - Narrative (Details) | 3 Months Ended | ||
Sep. 30, 2021numberOfOperatingSegmentssegments$ / shares | Jun. 30, 2021$ / shares | Apr. 17, 2020$ / shares | |
Spin [Line Items] | |||
Number of operating segments | numberOfOperatingSegments | 1 | ||
Number of reportable segments | segments | 1 | ||
Class A Common Stock | |||
Spin [Line Items] | |||
Common stock, par value (dollars per share) | $ 0.01 | $ 0.01 | |
Class A Common Stock | MSG Entertainment | |||
Spin [Line Items] | |||
Share conversion ratio | 1 | ||
Common stock, par value (dollars per share) | $ 0.01 | ||
Common Class B | |||
Spin [Line Items] | |||
Common stock, par value (dollars per share) | $ 0.01 | $ 0.01 | |
Common Class B | MSG Entertainment | |||
Spin [Line Items] | |||
Share conversion ratio | 1 | ||
Common stock, par value (dollars per share) | $ 0.01 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | ||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 18,794 | $ 57,038 | |
Event-related | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | [1] | 3,870 | 0 |
Media rights | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | [2] | 6,586 | 50,189 |
Sponsorship, signage and suite licenses | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 3,170 | 2,950 | |
League distributions and other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 5,168 | $ 3,899 | |
[1] | Consists of (i) ticket sales and other ticket-related revenues, and (ii) food, beverage and merchandise sales. | ||
[2] | Consists of (i) local media rights fees, (ii) revenue from the distribution through league-wide national and international television contracts, and (iii) other local radio rights fees. |
Revenue Recognition - Contract
Revenue Recognition - Contract Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2021 | Jun. 30, 2021 | ||
Contract Assets and Liabilities [Line Items] | |||
Contract with customer, deferred revenue, revenue recognized | $ 3,097 | ||
Receivables from contracts with customers, net | |||
Contract Assets and Liabilities [Line Items] | |||
Contracts with customers, assets, net | [1] | 19,673 | $ 30,834 |
Other current assets | |||
Contract Assets and Liabilities [Line Items] | |||
Contracts with customers, assets, net | [2] | 5,825 | 9,604 |
Deferred Revenue | |||
Contract Assets and Liabilities [Line Items] | |||
Deferred revenue, including non-current portion | [3],[4] | 251,222 | 162,628 |
Deferred Revenue | NBA [Member] | |||
Contract Assets and Liabilities [Line Items] | |||
Deferred revenue, including non-current portion | 30,000 | ||
Accounts receivable, net | |||
Contract Assets and Liabilities [Line Items] | |||
Escrow and Player Compensation Recoveries Receivables | 32,013 | 36,525 | |
Other Assets | |||
Contract Assets and Liabilities [Line Items] | |||
Escrow and Player Compensation Recoveries Receivables | 10,700 | 10,700 | |
Affiliated Entities | Net related party receivables | |||
Contract Assets and Liabilities [Line Items] | |||
Contracts with customers, assets, net | 97 | 213 | |
Local media rights | Deferred Revenue | |||
Contract Assets and Liabilities [Line Items] | |||
Deferred revenue, including non-current portion | $ 32,458 | $ 260 | |
[1] | Receivables from contracts with customers, net, which are reported in Accounts receivable, net and Net related party receivables in the Company’s accompanying consolidated balance sheets, represent the Company’s unconditional rights to consideration under its contracts with customers. As of September 30, 2021 and June 30, 2021, the Company’s receivables reported above included $97 and $213, respectively, related to various related parties associated with contracts with customers. See Note 15 for further details on related party arrangements. Receivables from contracts with customers, net, excludes amounts recorded in Accounts receivable, net, associated with amounts due from the NBA and NHL related to escrow and player compensation recoveries and luxury tax payments. As of September 30, 2021, the Company had receivable balances related to escrow and player compensation recoveries of $32,013 and $10,700, recorded in Accounts receivable, net and Other assets, respectively. As of June 30, 2021, the Company had receivable balances related to escrow and player compensation recoveries of $36,525 and $10,700, recorded in Accounts receivable, net and Other assets, respectively. | ||
[2] | Contract assets, current, which are reported as Other current assets in the Company’s accompanying 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, including non-current portion primarily relates to the Company’s receipt of consideration from customers or billing customers in advance of the Company’s transfer of goods or services to those customers. Deferred revenue is reduced and the related revenue is recognized once the underlying goods or services are transferred to a customer. The non-current portion of deferred revenue primarily consists of a $30,000 receipt from the NBA in December 2020 of league distributions in advance of the Company’s recognition. The Company’s deferred revenue related to local media rights was $32,458 and $260 as of September 30, 2021 and June 30, 2021, respectively. See Note 15 for further details on these related party arrangements. | ||
[4] | Revenue recognized for the three months ended September 30, 2021 relating to the deferred revenue balance as of June 30, 2021 was $3,097. |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligation (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 353,720 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 101,504 |
Remaining performance obligation period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 75,984 |
Remaining performance obligation period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 64,385 |
Remaining performance obligation period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 40,505 |
Remaining performance obligation period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 32,886 |
Remaining performance obligation period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 38,456 |
Remaining performance obligation period |
Computation of Earnings (Loss_3
Computation of Earnings (Loss) per Common Share (Details) - shares shares in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||
Weighted-average shares for basic EPS | 24,172 | 24,062 |
Dilutive effect of shares issuable under share-based compensation plans | 0 | 0 |
Weighted-average shares for diluted EPS | 24,172 | 24,062 |
Weighted-average shares excluded from diluted earnings (loss) per share | 196 | 654 |
Team Personnel Transactions (De
Team Personnel Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Team Personnel Transactions Narrative [Line Items] | ||
Team personnel transaction expense | $ 727 | $ 10,873 |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |||||
Cash and cash equivalents | $ 33,610 | $ 64,902 | $ 23,527 | $ 77,852 | |
Restricted cash | [1] | 6,668 | 7,134 | 2,679 | 12,821 |
Cash, cash equivalents and restricted cash on the consolidated statements of cash flows | $ 40,278 | $ 72,036 | $ 26,206 | $ 90,673 | |
[1] | Restricted cash as of June 30, 2020 primarily included cash deposited in an escrow account (see Note 2 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2021 for more information). For all other periods, restricted cash relates to the Company’s revolving credit facilities (see Note 11 for more information). |
Leases - Lease Term (Details)
Leases - Lease Term (Details) | 3 Months Ended |
Sep. 30, 2021 | |
MSG Entertainment | Arena Lease [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Description | In connection with the MSGE Distribution, the Company entered into the Arena License Agreements with MSG Entertainment that end on June 30, 2055 and 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. Absent the reduced payments due to the government-mandated suspension of events at The Garden in response to COVID-19 described below, the stated license fee for the first full contract year ended June 30, 2021 would have been approximately $22,500 for the Knicks and approximately $16,700 for the Rangers, and then for each subsequent year, the license fees are 103% of the license fees for the immediately preceding contract year. |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 11 months |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 34 years |
Leases - Assets and Liabilities
Leases - Assets and Liabilities Recognized (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | |
Lessee, Lease, Description [Line Items] | |||
Right-of-use lease assets | $ 702,605 | $ 703,521 | |
Operating lease liabilities, current | [1] | 42,425 | 41,951 |
Operating lease liabilities, noncurrent | [1] | 681,007 | 691,152 |
Total lease liabilities | 723,432 | 733,103 | |
MSG Entertainment | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease liabilities, current | 42,017 | 41,541 | |
Operating lease liabilities, noncurrent | $ 680,745 | $ 690,792 | |
[1] | As of September 30, 2021, Operating lease liabilities, current and Operating lease liabilities, noncurrent included balances of $42,017 and $680,745, respectively, that are payable to MSG Entertainment. As of June 30, 2021, Operating lease liabilities, current and Operating lease liabilities, noncurrent included balances of $41,541 and $690,792, respectively, that are payable to MSG Entertainment. |
Leases - Costs Incurred in the
Leases - Costs Incurred in the Period (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Lessee, Lease, Description [Line Items] | ||
Total lease cost | $ 2,054 | $ 725 |
Direct operating expenses | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | 1,407 | 90 |
Short-term lease cost | 36 | 24 |
Selling, general and administrative expenses | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | $ 611 | $ 611 |
Leases - Supplemental Informati
Leases - Supplemental Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Leases [Abstract] | ||
Operating lease payments | $ 10,768 | $ 295 |
Operating lease, weighted average remaining term | 33 years 4 months 24 days | |
Operating lease, weighted average discount rate | 7.13% |
Leases - Remaining Liabilities
Leases - Remaining Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 |
Leases [Abstract] | ||
Fiscal Year 2022 (remainder) | $ 32,790 | |
Fiscal Year 2023 | 45,029 | |
Fiscal Year 2024 | 44,937 | |
Fiscal Year 2025 | 44,052 | |
Fiscal Year 2026 | 45,374 | |
Thereafter | 2,113,312 | |
Total lease payments | 2,325,494 | |
Less imputed interest | (1,602,062) | |
Total lease liabilities | $ 723,432 | $ 733,103 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill impairment | $ 0 | ||
Goodwill | 226,955 | $ 226,955 | |
Impairment of indefinite-lived intangible assets | 0 | ||
Amortization of intangible assets | $ 265 | $ 265 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 |
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 | Sep. 30, 2021 | Jun. 30, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 5,900 | $ 5,900 |
Accumulated Amortization | (4,470) | (4,205) |
Net | 1,430 | 1,695 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 2,300 | 2,300 |
Accumulated Amortization | (1,917) | (1,802) |
Net | 383 | 498 |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 2,400 | 2,400 |
Accumulated Amortization | (2,000) | (1,880) |
Net | 400 | 520 |
Other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 1,200 | 1,200 |
Accumulated Amortization | (553) | (523) |
Net | $ 647 | $ 677 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 |
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | $ 11,917 | $ 38,820 |
Level I [Member] | Money market accounts [Member] | ||
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 11,916 | 33,820 |
Level I [Member] | Time deposits [Member] | ||
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | $ 1 | $ 5,000 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | |
Carrying Value | |||
Schedule Of Financial Instruments [Line Items] | |||
Long-term debt | [1] | $ 355,000 | $ 355,000 |
Short-term Debt, Fair Value | [2] | 30,000 | 30,000 |
Fair Value | |||
Schedule Of Financial Instruments [Line Items] | |||
Long-term debt | [1] | 355,000 | 355,000 |
Short-term Debt, Fair Value | [2] | $ 30,000 | $ 30,000 |
[1] | 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. The fair value of the Company’s long-term debt is the same as its carrying amount as the debt bears interest at a variable rate indexed to current market conditions. See Note 11 for further details | ||
[2] | The Company’s debt, current 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. The fair value of the Company’s debt, current is the same as its carrying amount as the debt bears interest at current market conditions. See Note 11 for further details. |
Debt - Knicks and Rangers Credi
Debt - Knicks and Rangers Credit Facilities Narrative (Details) | Nov. 06, 2020USD ($) | Jan. 25, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2021USD ($)fiscal_quarter |
Line of Credit Facility [Line Items] | ||||
Interest payment | $ 225,000 | |||
Knicks | Collateral Pledged | 2020 Knicks Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 275,000,000 | |||
Debt service ratio | 1.5 | |||
Debt service ratio, terms, number of trailing quarters | fiscal_quarter | 4 | |||
Line of credit facility amount outstanding | $ 220,000,000 | |||
Effective interest rate | 1.59% | |||
Interest payment | $ 915,000 | |||
Line of Credit Facility, Expiration Date | Nov. 6, 2023 | |||
Knicks | Collateral Pledged | 2016 Knicks Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 200,000,000 | |||
Debt instrument, term | 5 years | |||
Knicks | Collateral Pledged | Minimum | 2020 Knicks Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Commitment fee percentage | 0.25% | |||
Qualified revenues threshold, percentage of available credit facility | 350.00% | |||
Knicks | Collateral Pledged | Minimum | 2020 Knicks Revolving Credit Facility | Base Rate | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 0.50% | |||
Knicks | Collateral Pledged | Minimum | 2020 Knicks Revolving Credit Facility | LIBOR | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.50% | |||
Knicks | Collateral Pledged | Maximum | 2020 Knicks Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Commitment fee percentage | 0.30% | |||
Knicks | Collateral Pledged | Maximum | 2020 Knicks Revolving Credit Facility | Base Rate | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 0.75% | |||
Knicks | Collateral Pledged | Maximum | 2020 Knicks Revolving Credit Facility | LIBOR | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.75% | |||
Knicks | Uncollateralized | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 15,000,000 | |||
Debt instrument, term | 364 days | |||
Knicks | Uncollateralized | 2020 Knicks Holdings Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 75,000,000 | |||
Debt service ratio | 1.1 | |||
Debt service ratio, terms, number of trailing quarters | fiscal_quarter | 4 | |||
Line of credit facility amount outstanding | $ 0 | |||
Line of Credit Facility, Expiration Date | Nov. 6, 2023 | |||
Knicks | Uncollateralized | Minimum | 2020 Knicks Holdings Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Commitment fee percentage | 0.375% | |||
Long-term Debt, Contingent Payment of Principal or Interest | Subject to customary notice and minimum amount conditions, Knicks Holdings may voluntarily prepay outstanding loans under the 2020 Knicks Holdings 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 Holdings is required to make mandatory prepayments in certain circumstances, including if the amount of commitments under the 2020 Knicks Holdings Revolving Credit Facility increase above $350,000. | |||
Knicks | Uncollateralized | Minimum | 2020 Knicks Holdings Revolving Credit Facility | Base Rate | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.00% | |||
Knicks | Uncollateralized | Minimum | 2020 Knicks Holdings Revolving Credit Facility | LIBOR | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 2.00% | |||
Knicks | Uncollateralized | Maximum | 2020 Knicks Holdings Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Commitment fee percentage | 0.50% | |||
Knicks | Uncollateralized | Maximum | 2020 Knicks Holdings Revolving Credit Facility | Base Rate | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.25% | |||
Knicks | Uncollateralized | Maximum | 2020 Knicks Holdings Revolving Credit Facility | LIBOR | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 2.25% | |||
Rangers | Collateral Pledged | 2017 Rangers Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 150,000,000 | |||
Debt instrument, term | 5 years | |||
Rangers | Collateral Pledged | 2020 Rangers Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 250,000,000 | |||
Debt service ratio | 1.5 | |||
Debt service ratio, terms, number of trailing quarters | fiscal_quarter | 4 | |||
Line of credit facility amount outstanding | $ 135,000,000 | |||
Effective interest rate | 2.09% | |||
Interest payment | $ 738,000 | |||
Line of Credit Facility, Expiration Date | Nov. 6, 2023 | |||
Rangers | Collateral Pledged | Minimum | 2020 Rangers Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Commitment fee percentage | 0.375% | |||
Rangers | Collateral Pledged | Minimum | 2020 Rangers Revolving Credit Facility | Base Rate | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 0.75% | |||
Rangers | Collateral Pledged | Minimum | 2020 Rangers Revolving Credit Facility | LIBOR | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.75% | |||
Rangers | Collateral Pledged | Maximum | 2020 Rangers Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Commitment fee percentage | 0.625% | |||
Qualified revenues threshold, percentage of available credit facility | 17.00% | |||
Rangers | Collateral Pledged | Maximum | 2020 Rangers Revolving Credit Facility | Base Rate | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.25% | |||
Rangers | Collateral Pledged | Maximum | 2020 Rangers Revolving Credit Facility | LIBOR | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 2.25% |
Debt - Rangers Advance Narrativ
Debt - Rangers Advance Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 19, 2021 | |
Debt [Line Items] | |||
Debt | $ 30,000 | $ 30,000 | |
Interest payment | 225 | ||
Collateral Pledged | 2021 Rangers NHL Advance | Rangers | |||
Debt [Line Items] | |||
Debt, Maximum Capacity | $ 30,000 | ||
Debt | $ 30,000 | ||
Debt, Percentage Bearing Fixed Interest Rate | 3.00% |
Debt - Other Deferred Financing
Debt - Other Deferred Financing Costs (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 |
Other current assets | ||
Debt Instrument [Line Items] | ||
Debt issuance costs, net | $ 1,759 | $ 1,759 |
Other assets | ||
Debt Instrument [Line Items] | ||
Debt issuance costs, net | $ 1,905 | $ 2,345 |
Benefit Plans - Schedule of Net
Benefit Plans - Schedule of Net Periodic Benefit Cost (Details) - Pension Plan [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Interest cost | $ 31 | $ 60 |
Recognized actuarial loss | 33 | 10 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Total | $ 64 | $ 70 |
Benefit Plans - Defined Contrib
Benefit Plans - Defined Contribution Plan Schedule of Defined Contribution Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Savings Plans | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined Contribution Plan, Cost | $ 939 | $ 598 |
Share-based Compensation - Narr
Share-based Compensation - Narrative (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Share-based compensation expense | $ 4,851,000 | $ 6,345,000 |
Share-based compensation capitalized in property and equipment | $ 0 | $ 0 |
Share-based Compensation - Rest
Share-based Compensation - Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs) - $ / shares shares in Thousands | 3 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Beginning balance (USD per share) | [1] | $ 234.39 | ||
Granted (USD per share) | 158.01 | [1] | $ 242.62 | |
Vested (USD per share) | [1] | 262.08 | ||
Ending balance (USD per share) | [1] | $ 201.10 | ||
Nonperformance Based Vesting RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Beginning balance (shares) | 264 | |||
Granted (shares) | 48 | |||
Vested (shares) | (116) | |||
Ending balance (shares) | 196 | |||
Performance Based Vesting RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Beginning balance (shares) | 220 | |||
Granted (shares) | 44 | |||
Vested (shares) | (85) | |||
Ending balance (shares) | 179 | |||
[1] | Weighted-average fair value per share at date of grant does not reflect any adjustments to awards granted prior to the MSGE Distribution. |
Share-based Compensation - Re_2
Share-based Compensation - Restricted Stock Units Activity Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Payment for tax witholding | $ 12,142 | $ 6,702 | |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Instruments vested in period | $ 36,380 | $ 32,779 | |
Shares withheld for tax withholding obligation, value (shares) | 101 | ||
Payment for tax witholding | $ 18,306 | ||
Granted (USD per share) | $ 158.01 | [1] | $ 242.62 |
Restricted Stock Units (RSUs) | MSG Entertainment | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Payment for tax witholding | $ 6,164 | ||
[1] | Weighted-average fair value per share at date of grant does not reflect any adjustments to awards granted prior to the MSGE Distribution. |
Share-based Compensation - Stoc
Share-based Compensation - Stock Options Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Sep. 30, 2021USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Weighted average remaining contractual term | 6 years 2 months 15 days |
Aggregate intrinsic value | $ | $ 3,769 |
Exercisable, weighted-average remaining contractual term | 6 years 2 months 15 days |
Exercisable, aggregate intrinsic value | $ | $ 3,769 |
Nonperformance Based Vesting RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Beginning balance (shares) | shares | 94 |
Granted (shares) | shares | 0 |
Canceled (shares) | shares | 0 |
Ending balance (shares) | shares | 94 |
Beginning balance (USD per share) | $ / shares | $ 145.78 |
Granted (USD per share) | $ / shares | 0 |
Canceled (USD per share) | $ / shares | 0 |
Ending balance (USD per share) | $ / shares | $ 145.78 |
Exercisable (shares) | shares | 94 |
Exercisable (USD per share) | $ / shares | $ 145.78 |
Stock Repurchase Program (Detai
Stock Repurchase Program (Details) - USD ($) | 3 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 11, 2015 | |
Equity [Abstract] | |||
Stock repurchase program, authorized amount | $ 525,000,000 | ||
Repurchases of common stock, shares | 0 | 0 | |
Stock repurchase program, remaining authorized amount | $ 259,639,000 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) | 3 Months Ended |
Sep. 30, 2021 | |
Related Party Transaction [Line Items] | |
Aggregate voting power held by related party | 70.60% |
Common Class A | |
Related Party Transaction [Line Items] | |
Percentage of common stock owned by related party | 3.10% |
Common Class B | |
Related Party Transaction [Line Items] | |
Percentage of common stock owned by related party | 100.00% |
MSG Entertainment | Arena License Agreements | |
Related Party Transaction [Line Items] | |
License agreement term | 35 years |
MSG Entertainment | Sponsorship Sales And Service Representation Agreements | |
Related Party Transaction [Line Items] | |
License agreement term | 10 years |
Director | A605 L L C | |
Related Party Transaction [Line Items] | |
Ownership percentage | 50.00% |
MSG Networks | Media Rights Agreements | |
Related Party Transaction [Line Items] | |
License agreement term | 20 years |
Related Party Transactions - Tr
Related Party Transactions - Transactions by Type Table (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Related Party Transaction [Line Items] | ||
Revenues | $ 7,247 | $ 9,061 |
Corporate general and administrative expenses, net | 9,599 | 11,643 |
Costs associated with the Sponsorship sales and service representation agreements | 2,733 | 2,358 |
Costs associated with the Arena License Agreements | 1,960 | 0 |
Other operating expenses, net | $ 113 | $ 360 |
Related Party Transactions - _2
Related Party Transactions - Transactions by Type - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Related Party Transaction [Line Items] | ||
Costs associated with the Arena License Agreements | $ 1,960 | $ 0 |
MSG Entertainment | Office Lease | ||
Related Party Transaction [Line Items] | ||
Related party transaction, services agreement | 715 | 695 |
MSG Entertainment | Arena Lease [Member] | ||
Related Party Transaction [Line Items] | ||
Costs associated with the Arena License Agreements | 1,311 | |
MSG Entertainment | Transition Service Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
Related party transaction, services agreement | $ 8,884 | $ 11,036 |
Income Taxes - Rate Reconciliat
Income Taxes - Rate Reconciliation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense (benefit) | $ (21,169) | $ (498) |
Effective Income Tax Rate Reconciliation, Percent | 56.00% | |
Federal statutory income tax rate, percent | 21.00% | 21.00% |
Tax expense, increase (decrease) in valuation allowance | $ 7,621 | |
Tax expense, nondeductible officers' compensation | 861 | |
State income tax expense (benefit) | $ (2,834) |