Cover
Cover - shares | 3 Months Ended | |
Sep. 30, 2022 | Oct. 21, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
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 | 465-4111 | |
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 | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 19,802,683 | |
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, 2022 | Jun. 30, 2022 | |
Current Assets: | |||
Cash and cash equivalents | $ 81,036 | $ 91,018 | |
Restricted cash | [1] | 0 | 0 |
Accounts receivable, net of allowance for doubtful accounts of $0 and $0 as of September 30, 2022 and June 30, 2022, respectively | 37,267 | 47,240 | |
Net related party receivables | 21,107 | 28,333 | |
Prepaid expenses | 64,822 | 18,810 | |
Other current assets | 15,770 | 19,868 | |
Total current assets | 220,002 | 205,269 | |
Property and equipment, net of accumulated depreciation and amortization of $47,710 and $46,794 as of September 30, 2022 and June 30, 2022, respectively | 32,165 | 32,892 | |
Right-of-use lease assets | 685,844 | 686,782 | |
Amortizable intangible assets, net | 528 | 636 | |
Indefinite-lived intangible assets | 112,144 | 112,144 | |
Goodwill | 226,955 | 226,955 | |
Deferred income tax assets, net | 11,607 | 0 | |
Other assets | 56,611 | 37,288 | |
Total assets | 1,345,856 | 1,301,966 | |
Current Liabilities: | |||
Accounts payable | 6,378 | 11,263 | |
Net related party payables | 28,235 | 19,624 | |
Debt | 30,000 | 30,000 | |
Accrued liabilities: | |||
Employee related costs | 69,593 | 119,279 | |
Accrued League-Related Charges, Current | 71,868 | 75,269 | |
Other accrued liabilities | 5,191 | 6,796 | |
Operating lease liabilities, current | [2] | 43,796 | 43,699 |
Deferred revenue | 267,087 | 132,369 | |
Total current liabilities | 522,148 | 438,299 | |
Long-term debt | 220,000 | 220,000 | |
Operating lease liabilities, noncurrent | [2] | 689,302 | 699,587 |
Defined benefit obligations | 5,003 | 5,005 | |
Other employee related costs | 49,190 | 43,411 | |
Deferred tax liabilities, net | 0 | 8,917 | |
Deferred revenue, noncurrent | 31,122 | 31,122 | |
Other liabilities | 1,001 | 1,002 | |
Total liabilities | 1,517,766 | 1,447,343 | |
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, 2022 and June 30, 2022 | 0 | 0 | |
Additional paid-in capital | 0 | 17,573 | |
Treasury stock, at cost, 645 and 751 shares as of September 30, 2022 and June 30, 2022, respectively | (109,981) | (128,026) | |
Accumulated deficit | (62,447) | (35,699) | |
Accumulated other comprehensive loss | (1,183) | (1,186) | |
Total Madison Square Garden Sports Corp. stockholders’ equity | (173,362) | (147,089) | |
Nonredeemable noncontrolling interests | 1,452 | 1,712 | |
Total equity | (171,910) | (145,377) | |
Total liabilities and equity | 1,345,856 | 1,301,966 | |
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 September 30, 2021 and June 30, 2021 relates to the Company’s revolving credit facilities (see Note 11 for more information).[2]As of September 30, 2022, Operating lease liabilities, current and Operating lease liabilities, noncurrent included balances of $43,225 and $689,302, respectively, that are payable to MSG Entertainment. As of June 30, 2022, Operating lease liabilities, current and Operating lease liabilities, noncurrent included balances of $43,028 and $699,587, respectively, that are payable to MSG Entertainment. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 |
Accounts Receivable, Allowance for Credit Loss, Current | $ 0 | $ 0 |
Accumulated depreciation and amortization | $ 47,710 | $ 46,794 |
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 | 645,000 | 751,000 |
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 | 19,803,000 | 19,697,000 |
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, 2022 | Sep. 30, 2021 | ||
Income Statement [Abstract] | |||
Revenues | [1] | $ 24,089 | $ 18,794 |
Operating expenses: | |||
Direct operating expenses | [2] | 3,681 | 8,578 |
Selling, general and administrative expenses | [3] | 55,281 | 43,728 |
Depreciation and amortization | 1,025 | 1,426 | |
Operating loss | (35,898) | (34,938) | |
Other income (expense): | |||
Interest income | 356 | 50 | |
Interest expense | (3,312) | (3,103) | |
Miscellaneous expense, net | (166) | (63) | |
Nonoperating income (loss) | (3,122) | (3,116) | |
Loss from operations before income taxes | (39,020) | (38,054) | |
Income tax benefit | 20,493 | 21,169 | |
Net loss | (18,527) | (16,885) | |
Less: Net loss attributable to nonredeemable noncontrolling interests | (707) | (480) | |
Net loss attributable to Madison Square Garden Sports Corp.’s stockholders | $ (17,820) | $ (16,405) | |
Earnings Per Share, Basic [Abstract] | |||
Basic earnings (loss) per common share, attributable to Madison Square Garden Sports Corp.'s stockholders (USD per share) | $ (0.73) | $ (0.68) | |
Earnings Per Share, Diluted [Abstract] | |||
Diluted earnings (loss) per common share attributable to Madison Square Garden Sports Corp.'s stockholders (USD per share) | $ (0.73) | $ (0.68) | |
Weighted-average number of common shares outstanding: | |||
Weighted-average shares for basic EPS | 24,295 | 24,172 | |
Diluted (in shares) | 24,295 | 24,172 | |
[1]Includes revenues from related parties of $8,174 and $7,247 for the three months ended September 30, 2022 and 2021, respectively.[2]Includes net charges from related parties of $2,184 and $2,158 for the three months ended September 30, 2022 and 2021, respectively.[3]Includes net charges from related parties of $13,308 and $12,247 for the three months ended September 30, 2022 and 2021, respectively. |
Consolidated Statements Of Op_2
Consolidated Statements Of Operations (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | ||
Income Statement [Abstract] | |||
Revenues from related parties | [1] | $ 8,174 | $ 7,247 |
Direct operating expenses from related parties | 2,184 | 2,158 | |
Selling, general and administrative expenses from related parties | $ 13,308 | $ 12,247 | |
[1](a) 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. |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (18,527) | $ (16,885) |
Amounts reclassified from accumulated other comprehensive loss: | ||
Amortization of actuarial loss included in net periodic benefit cost | 4 | 33 |
Other comprehensive income, before income taxes | 4 | 33 |
Income tax expense related to items of other comprehensive income | (1) | (11) |
Other comprehensive income, net of income taxes | 3 | 22 |
Comprehensive loss | (18,524) | (16,863) |
Less: Comprehensive loss attributable to nonredeemable noncontrolling interests | (707) | (480) |
Comprehensive loss attributable to Madison Square Garden Sports Corp.’s stockholders | $ (17,817) | $ (16,383) |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (18,527) | $ (16,885) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 1,025 | 1,426 |
Benefits from deferred income taxes | (20,525) | (21,169) |
Share-based compensation expense | 7,220 | 4,851 |
Other non-cash adjustments | 286 | 437 |
Change in assets and liabilities: | ||
Accounts receivable, net | 9,973 | 19,325 |
Net related party receivables | 2,993 | (3,125) |
Prepaid expenses and other assets | (61,521) | (47,275) |
Accounts payable | (4,797) | (534) |
Net related party payables | 8,614 | 9,623 |
Accrued and other liabilities | (48,915) | (45,826) |
Deferred revenue | 134,709 | 88,597 |
Operating lease right-of-use assets and lease liabilities | (9,250) | (8,755) |
Net cash provided by (used in) operating activities | 1,285 | (19,310) |
Cash flows from investing activities: | ||
Capital expenditures | (271) | (181) |
Other investing activities | 0 | (125) |
Net cash used in investing activities | (271) | (306) |
Cash flows from financing activities: | ||
Taxes paid in lieu of shares issued for equity-based compensation | (10,996) | (12,142) |
Net cash used in financing activities | (10,996) | (12,142) |
Net decrease in cash, cash equivalents and restricted cash | (9,982) | (31,758) |
Cash, cash equivalents and restricted cash at beginning of period | 91,018 | 72,036 |
Cash, cash equivalents and restricted cash at end of period | 81,036 | 40,278 |
Non-cash investing and financing activities: | ||
Capital expenditures incurred but not yet paid | $ 39 | $ 41 |
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, 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) | 0 | (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 |
Beginning balance at Jun. 30, 2022 | (145,377) | 249 | 17,573 | (128,026) | (35,699) | (1,186) | (147,089) | 1,712 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | (18,527) | (17,820) | (17,820) | (707) | ||||
Other comprehensive income (loss) | 3 | 3 | 3 | |||||
Comprehensive loss | (18,524) | (17,817) | (707) | |||||
Share-based compensation | 7,220 | 7,220 | 7,220 | |||||
Tax withholding associated with shares issued for equity-based compensation | (15,229) | (15,229) | (15,229) | |||||
Common stock issued under stock incentive plans | 0 | 9,117 | 18,045 | 8,928 | 0 | |||
Noncontrolling Interest, Period Increase (Decrease) | 0 | (447) | (447) | 447 | ||||
Ending balance at Sep. 30, 2022 | $ (171,910) | $ 249 | $ 0 | $ (109,981) | $ (62,447) | $ (1,183) | $ (173,362) | $ 1,452 |
Description of Business and Bas
Description of Business and Basis of Presentation | 3 Months Ended |
Sep. 30, 2022 | |
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 and the Westchester Knicks of the NBA G League. 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”). 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, 2022 (“fiscal year 2022”). 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. Impact of COVID-19 on our Business During fiscal years 2020 and 2021, COVID-19 disruptions and actions taken in response by governmental authorities and the leagues materially impacted the Company’s revenues and the Company recognized materially less revenues, or in some cases, no revenues, across a number of areas. In fiscal year 2022, the Company’s operations and operating results were also impacted by temporary declines in attendance due to ongoing reduced tourism levels as well as an increase in COVID-19 cases during certain months of the fiscal year. See Note 1, Description of Business and Basis of Presentation, to the Company’s audited consolidated financial statements and notes thereto for the year ended June 30, 2022 included in the Company’s Annual Report on Form 10-K for more information regarding the impact of the COVID-19 pandemic on our business during fiscal years 2020, 2021 and 2022. It is unclear to what extent COVID-19, including new variants, could result in renewed governmental and league restrictions on attendance or otherwise impact the Company’s operations and operating results. |
Accounting Policies
Accounting Policies | 3 Months Ended |
Sep. 30, 2022 | |
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. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Sep. 30, 2022 | |
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, 2022 and 2021, 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, 2022 and 2021: Three Months Ended September 30, 2022 2021 Event-related (a) $ 5,346 $ 3,870 Media rights (b) 6,986 6,586 Sponsorship, signage and suite licenses 4,814 3,170 League distributions and other 6,943 5,168 Total revenues from contracts with customers $ 24,089 $ 18,794 _________________ (a) Consists of (i) ticket sales and other ticket-related revenues, and (ii) food, beverage and merchandise sales at The Garden. (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, 2022 and June 30, 2022. September 30, June 30, 2022 2022 Receivables from contracts with customers, net (a) $ 26,362 $ 24,729 Contract assets, current (b) 8,554 13,839 Deferred revenue, including non-current portion (c), (d) 298,209 163,491 _________________ (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, 2022 and June 30, 2022, the Company’s receivables reported above incl uded $922 and $1,258, 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, 2022, the Company had receivable balances related to escrow and player compensation recoveries of $11,694 and $6,782, recorded in Account s receivable, net and Other assets, respectively. As of June 30, 2022, the Company had receivable balances related to escrow and player compensation recover ies of $12,464 and $6,782, reco rded 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 $36,169 and $0 as of September 30, 2022 and June 30, 2022, respectively. See Note 15 for further details on these related party arrangements. (d) Revenue recognized for the three months ended September 30, 2022 relating to the deferred revenue balance as of June 30, 2022 was $5,356. 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, 2022 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 2023 (remainder) $ 147,175 Fiscal Year 2024 116,909 Fiscal Year 2025 78,739 Fiscal Year 2026 51,866 Fiscal Year 2027 28,354 Thereafter 24,672 $ 447,715 |
Computation of Earnings (Loss)
Computation of Earnings (Loss) per Common Share | 3 Months Ended |
Sep. 30, 2022 | |
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, 2022 2021 Weighted-average shares (denominator): Weighted-average shares for basic EPS 24,295 24,172 Dilutive effect of shares issuable under share-based compensation plans — — Weighted-average shares for diluted EPS 24,295 24,172 Weighted-average shares excluded from diluted earnings (loss) per share 128 196 |
Team Personnel Transactions
Team Personnel Transactions | 3 Months Ended |
Sep. 30, 2022 | |
Team Personnel Transactions [Abstract] | |
Team Personnel Transactions | Team Personnel Transactions Direct 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 were a net credit of $329 and a net provision of $727 for the three months ended September 30, 2022 and 2021, respectively. |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 3 Months Ended |
Sep. 30, 2022 | |
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 $ 81,036 $ 91,018 $ 33,610 $ 64,902 Restricted cash (a) — — 6,668 7,134 Cash, cash equivalents and restricted cash on the consolidated statements of cash flows $ 81,036 $ 91,018 $ 40,278 $ 72,036 _________________ (a) Restricted cash as of September 30, 2021 and June 30, 2021 relates to the Company’s revolving credit facilities (see Note 11 for more information). |
Leases
Leases | 3 Months Ended |
Sep. 30, 2022 | |
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, 2022 for more information regarding the Company’s accounting policies associated with its leases. As of September 30, 2022, the Company’s existing operating leases, which are recorded in the accompanying financial statements, have remaining lease terms ranging from 8 months to 33 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, 2022 and June 30, 2022: Line Item in the Company’s Consolidated Balance Sheet September 30, June 30, Right-of-use assets: Operating leases Right-of-use lease assets $ 685,844 $ 686,782 Lease liabilities: Operating leases, current (a) Operating lease liabilities, current $ 43,796 $ 43,699 Operating leases, noncurrent (a) Operating lease liabilities, noncurrent 689,302 699,587 Total lease liabilities $ 733,098 $ 743,286 _________________ (a) As of September 30, 2022, Operating lease liabilities, current and Operating lease liabilities, noncurrent included balances of $43,225 and $689,302, respectively, that are payable to MSG Entertainment. As of June 30, 2022, Operating lease liabilities, current and Operating lease liabilities, noncurrent included balances of $43,028 and $699,587, 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, 2022 and 2021: Line Item in the Company’s Consolidated Statement of Operations Three Months Ended September 30, 2022 2021 Operating lease cost Direct operating expenses $ 1,403 $ 1,407 Operating lease cost Selling, general and administrative expenses 613 611 Short-term lease cost Direct operating expenses 45 36 Total lease cost $ 2,061 $ 2,054 Supplemental Information For the three months ended September 30, 2022 and 2021, cash paid for amounts included in the measurement of lease liabilities was $11,263 and $10,768, respectively. The weighted average remaining lease term for operating leases recorded on the accompanying consolidated balance sheet as of September 30, 2022 was 32.5 years. The weighted average discount rate was 7.13% as of September 30, 2022 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, 2022 are as follows: Fiscal Year 2023 (remainder) $ 34,072 Fiscal Year 2024 45,361 Fiscal Year 2025 44,900 Fiscal Year 2026 45,374 Fiscal Year 2027 46,735 Thereafter 2,066,577 Total lease payments 2,283,019 Less imputed interest (1,549,921) Total lease liabilities $ 733,098 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets During the first quarter of fiscal year 2023, 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, 2022 and June 30, 2022 is $226,955. The Company’s indefinite-lived intangible assets as of September 30, 2022 and June 30, 2022 are as follows: Sports franchises $ 111,064 Photographic related rights 1,080 $ 112,144 During the first quarter of fiscal year 2023, 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, 2022 Gross Accumulated Net Trade names $ 2,300 $ (2,300) $ — Non-compete agreements 2,400 (2,400) — Other intangibles 1,200 (672) 528 $ 5,900 $ (5,372) $ 528 June 30, 2022 Gross Accumulated Net Trade names $ 2,300 $ (2,262) $ 38 Non-compete agreements 2,400 (2,360) 40 Other intangibles 1,200 (642) 558 $ 5,900 $ (5,264) $ 636 For the three months ended September 30, 2022 and 2021, amortization expense o f intangible assets was $108 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Sep. 30, 2022 | |
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 accounts I $ 23,022 $ 26,018 Time deposit I 54,316 56,082 Equity investments I 10,269 2,736 Total assets measured at fair value $ 87,607 $ 84,836 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 accounts 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, 2022 June 30, 2022 Carrying Fair Carrying Fair Liabilities Debt, current (a) $ 30,000 $ 30,000 $ 30,000 $ 30,000 Long-term debt (b) $ 220,000 $ 220,000 $ 220,000 $ 220,000 _________________ (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, 2022 | |
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, 2022, 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 2022 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, 2022 | |
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”). On December 14, 2021, Knicks LLC entered into Amendment No. 2 to the 2020 Knicks Credit Agreement, which amended and restated the 2020 Knicks Credit Agreement (the “2021 Knicks Credit Agreement”). The 2021 Knicks Credit Agreement provides for a senior secured revolving credit facility of up to $275,000 (the “2021 Knicks Revolving Credit Facility”) to fund working capital needs and for general corporate purposes. The maturity date of the 2021 Knicks Credit Agreement is December 14, 2026. Amounts borrowed may be distributed to the Company except during an event of default. All borrowings under the 2021 Knicks Revolving Credit Facility are subject to the satisfaction of certain customary conditions. Borrowings under the 2021 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 0.250% to 0.500% per annum or (ii) term Secured Overnight Financing Rate (“SOFR”) plus a credit spread adjustment of 0.100% per annum plus a margin ranging from 1.250% to 1.500% per annum depending on the credit rating applicable to the NBA’s league-wide credit facility. 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 2021 Knicks Revolving Credit Facility. The outstanding balance under the 2021 Knicks Revolving Credit Facility was $220,000 as of September 30, 2022, which was recorded as Long-term debt in the accompanying consolidated balance sheet. The interest rate on the 2021 Knicks Revolving Credit Facility as of September 30, 2022 was 4.37%. During the three months ended September 30, 2022 t he Company made interest payments of $1,892 in respect of the 2021 Knicks Revolving Credit Facility. All obligations under the 2021 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 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 2021 Knicks Revolving Credit Facility at any time, in whole or in part, without premium or penalty (except for customary breakage costs with respect to SOFR-based loans). Knicks LLC is required to make mandatory prepayments in certain circumstances, including without limitation if the maximum available amount under the 2021 Knicks Revolving Credit Facility is greater than 350% of qualified revenues. In addition to the financial covenant described above, the 2021 Knicks Credit Agreement and related security agreements contain certain customary representations and warranties, affirmative covenants and events of default. The 2021 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 2021 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 2021 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 2021 Knicks Revolving Credit Facility requires Knicks LLC to comply with a debt service ratio of at least 1.5:1.0 over a trailing four quarter period. As of September 30, 2022, Knicks LLC was in compliance with this financial covenant. 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 credit agreement with a syndicate of lenders (the “2020 Knicks Holdings Credit Agreement”). The 2020 Knicks Holdings Credit Agreement provided 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. On December 14, 2021, the Company terminated the 2020 Knicks Holdings Revolving Credit Facility in its entirety. 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”). On December 14, 2021, Rangers LLC entered into Amendment No. 3 to the 2020 Rangers Credit Agreement, which amended and restated the 2020 Rangers Credit Agreement (the “2021 Rangers Credit Agreement”). The 2021 Rangers Credit Agreement provides for a senior secured revolving credit facility of up to $250,000 (the “2021 Rangers Revolving Credit Facility”) to fund working capital needs and for general corporate purposes. The maturity date of the 2021 Rangers Credit Agreement is December 14, 2026. Amounts borrowed may be distributed to the Company except during an event of default. All borrowings under the 2021 Rangers Revolving Credit Facility are subject to the satisfaction of certain customary conditions. Borrowings under the 2021 Rangers Revolving Credit Facility 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 0.500% to 1.000% per annum or (ii) term SOFR plus a credit spread adjustment of 0.100% per annum plus a margin ranging from 1.500% to 2.000% per annum depending on the credit rating applicable to the NHL’s league-wide credit facility. 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 2021 Rangers Revolving Credit Facility. There was no borrowing under the 2021 Rangers Revolving Credit Facility as of September 30, 2022 and accordingly the Company did not make any interest payments during the three months ended September 30, 2022 in respect of the 2021 Rangers Revolving Credit Facility. All obligations under the 2021 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 2021 Rangers Revolving Credit Facility at any time, in whole or in part, without premium or penalty (except for customary breakage costs with respect to SOFR-based 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 2021 Rangers Revolving Credit Facility. In addition to the financial covenant described above, the 2021 Rangers Credit Agreement and related security agreements contain certain customary representations and warranties, affirmative covenants and events of default. The 2021 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 2021 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 2021 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 2021 Rangers Revolving Credit Facility. The 2021 Rangers Revolving Credit Facility requires Rangers LLC to comply with a debt service ratio of at least 1.5:1.0 over a trailing four quarter period. As of September 30, 2022, 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, 2022 and was recorded as Debt in the accompanying consolidated balance sheet. During the three months ended September 30, 2022 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 sheets: September 30, June 30, Other current assets $ 1,145 $ 1,145 Other assets 3,668 3,954 |
Pension Plans and Other Postret
Pension Plans and Other Postretirement Benefit Plan | 3 Months Ended |
Sep. 30, 2022 | |
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, 2022 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, 2022 and 2021. Net periodic benefit cost is reported in Miscellaneous expense, net. Three Months Ended September 30, 2022 2021 Interest cost $ 60 $ 31 Recognized actuarial loss 4 33 Net periodic benefit cost $ 64 $ 64 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, 2022 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, 2022 and 2021 were $1,065 and $939, respectively. Executive Deferred Compensation Plan 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, 2022 for more information regarding the Company’s Executive Deferred Compensation Plan (the “Deferred Compensation Plan”). For the three months ended September 30, 2022, the Company recorded compensation cost credits of $103 within Selling, general and administrative expenses to reflect the remeasurement of the Deferred Compensation Plan liability. In addition, for the three months ended September 30, 2022, the Company recorded losses of $103 within Miscellaneous income (expense), net to reflect the remeasurement of the fair value of assets under the Deferred Compensation Plan. The following table summarizes amounts recognized related to the Deferred Compensation Plan in the consolidated balance sheets: September 30, June 30, Non-current assets (included in other assets) $ 10,269 $ 2,736 Current liabilities (included in accrued employee related costs) (982) (123) Non-current liabilities (included in other employee related costs) (9,287) (2,613) |
Share-based Compensation
Share-based Compensation | 3 Months Ended |
Sep. 30, 2022 | |
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, 2022 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 $7,220 and $4,851 for the three months ended September 30, 2022 and 2021, respectively. There were no costs related to share-based compensation that were capitalized for the three months ended September 30, 2022 and 2021, 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, 2022: Number of Weighted-Average Fair Value Per Share at Date of Grant (a) Nonperformance Performance Unvested award balance, June 30, 2022 199 189 $ 198.21 Granted 57 57 $ 161.58 Vested (119) (87) $ 222.48 Forfeited / Cancelled (1) (1) $ 158.01 Unvested award balance, September 30, 2022 136 158 $ 167.12 _____________________ (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, 2022 was $31,766. 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, 99 of these RSUs, with an aggregate value of $15,229, inclusive of $4,233 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, 2022. The fair value of RSUs that vested during the three months ended September 30, 2021 was $36,380. The weighted-average fair value per share at grant date of RSUs granted during the three months ended September 30, 2021 w as $262.08. Stock Options Award Activity The following table summarizes activity related to the Company’s stock options for the three months ended September 30, 2022: Number of Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value Balance as of June 30, 2022 94 $ 145.78 Granted — $ — Cancelled — $ — Balance as of September 30, 2022 94 $ 145.78 5.21 $ — Exercisable as of September 30, 2022 94 $ 145.78 5.21 $ — |
Stock Repurchase Program
Stock Repurchase Program | 3 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Stock Repurchase Program | Stock Repurchase Program Effective as of October 1, 2015, the Company’s board of directors authorized the repurchase of up to $525,000 of the Company’s Class A Common Stock. Under the authorization, shares of Class A Common Stock may be purchased from time to time in open market or private transactions, block trades or such other manner as the Company may determine, 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, 2022 and 2021, the Company did not engage in any share repurchase activities under its share repurchase program. As of September 30, 2022, the Company had $259,639 of availability remaining under its stock repurchase authorization . |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Sep. 30, 2022 | |
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, 2022, 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 70.5% 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 (including its subsidiary 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 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; • Services Agreement (the “Services Agreement”) pursuant to which the Company (i) 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 and (ii) provides certain services to MSG Entertainment, such as certain communications, legal (including certain services the Company provided to MSG Networks prior to the MSGE-MSGN Merger) and ticketing services, in exchange for service fees; • 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; and (ii) the Company’s Vice Chairman with AMC Networks and MSG Entertainment. The Company also previously shared costs for the Company’s Chief Executive Officer with MSG Entertainment through March 31, 2022. 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 former 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, 2022 and 2021: Three Months Ended September 30, 2022 2021 Revenues (a) $ 8,174 $ 7,247 Operating expenses: Corporate expenses pursuant to Services Agreement with MSG Entertainment $ 9,513 $ 8,884 Rent expense (sublease) due to MSG Entertainment 698 715 Costs associated with the Sponsorship sales and service representation agreements 2,933 2,733 Operating lease expense associated with the Arena License Agreements 1,311 1,311 Other costs associated with the Arena License Agreements 970 649 Other operating expenses, net 67 113 ____________________ (a) 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. |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax benefit for the three months ended September 30, 2022 of $20,493 reflects an effective tax rate of 52.5% and income tax benefit for the three months ended September 30, 2021 of $21,169 reflects an effective tax rate of 55.6% . 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% in the current and prior year period 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. The Company was notified in April 2020 and in February 2022 that the City of New York was commencing an audit of the local income tax returns for the fiscal years ended June 30, 2016 and 2017 and for fiscal years ended June 30, 2018 and 2019, respectively. The Company does not expect the examinations, when finalized, to result in material changes. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Special Dividend and Accelerated Share Repurchase On October 6, 2022, the Company announced that its Board of Directors has declared a special, one-time cash dividend of $7.00 per share (expected to be approximately $172,749). The special dividend is payable on October 31, 2022 to shareholders of record on October 17, 2022. In addition, the Company’s Board of Directors has authorized a $75,000 accelerated share repurchase (“ASR”) program, under the Company’s existing share repurchase authorization. As discussed in Note 14, the Company had $259,639 of availability remaining under its stock repurchase authorization as of September 30, 2022 and prior to the execution of the ASR program. Borrowings under Revolving Credit Facilities In connection with the special dividend and ASR, on October 27, 2022, the Company borrowed an additional $55,000 under the 2021 Knicks Revolving Credit Facility and $160,000 under the 2021 Rangers Revolving Credit Facility. See Note 11 for more information with regards to these revolving credit facilities. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2022 | |
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, 2022 (“fiscal year 2022”). 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. |
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. |
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, 2022 | |
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, 2022 and 2021: Three Months Ended September 30, 2022 2021 Event-related (a) $ 5,346 $ 3,870 Media rights (b) 6,986 6,586 Sponsorship, signage and suite licenses 4,814 3,170 League distributions and other 6,943 5,168 Total revenues from contracts with customers $ 24,089 $ 18,794 _________________ (a) Consists of (i) ticket sales and other ticket-related revenues, and (ii) food, beverage and merchandise sales at The Garden. (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, 2022 and June 30, 2022. September 30, June 30, 2022 2022 Receivables from contracts with customers, net (a) $ 26,362 $ 24,729 Contract assets, current (b) 8,554 13,839 Deferred revenue, including non-current portion (c), (d) 298,209 163,491 _________________ (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, 2022 and June 30, 2022, the Company’s receivables reported above incl uded $922 and $1,258, 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, 2022, the Company had receivable balances related to escrow and player compensation recoveries of $11,694 and $6,782, recorded in Account s receivable, net and Other assets, respectively. As of June 30, 2022, the Company had receivable balances related to escrow and player compensation recover ies of $12,464 and $6,782, reco rded 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 $36,169 and $0 as of September 30, 2022 and June 30, 2022, 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, 2022 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 2023 (remainder) $ 147,175 Fiscal Year 2024 116,909 Fiscal Year 2025 78,739 Fiscal Year 2026 51,866 Fiscal Year 2027 28,354 Thereafter 24,672 $ 447,715 |
Computation of Earnings (Loss_2
Computation of Earnings (Loss) per Common Share (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
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, 2022 2021 Weighted-average shares (denominator): Weighted-average shares for basic EPS 24,295 24,172 Dilutive effect of shares issuable under share-based compensation plans — — Weighted-average shares for diluted EPS 24,295 24,172 Weighted-average shares excluded from diluted earnings (loss) per share 128 196 |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
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 $ 81,036 $ 91,018 $ 33,610 $ 64,902 Restricted cash (a) — — 6,668 7,134 Cash, cash equivalents and restricted cash on the consolidated statements of cash flows $ 81,036 $ 91,018 $ 40,278 $ 72,036 _________________ (a) Restricted cash as of September 30, 2021 and June 30, 2021 relates to the Company’s revolving credit facilities (see Note 11 for more information). |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
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, 2022 and June 30, 2022: Line Item in the Company’s Consolidated Balance Sheet September 30, June 30, Right-of-use assets: Operating leases Right-of-use lease assets $ 685,844 $ 686,782 Lease liabilities: Operating leases, current (a) Operating lease liabilities, current $ 43,796 $ 43,699 Operating leases, noncurrent (a) Operating lease liabilities, noncurrent 689,302 699,587 Total lease liabilities $ 733,098 $ 743,286 _________________ (a) As of September 30, 2022, Operating lease liabilities, current and Operating lease liabilities, noncurrent included balances of $43,225 and $689,302, respectively, that are payable to MSG Entertainment. As of June 30, 2022, Operating lease liabilities, current and Operating lease liabilities, noncurrent included balances of $43,028 and $699,587, 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, 2022 and 2021: Line Item in the Company’s Consolidated Statement of Operations Three Months Ended September 30, 2022 2021 Operating lease cost Direct operating expenses $ 1,403 $ 1,407 Operating lease cost Selling, general and administrative expenses 613 611 Short-term lease cost Direct operating expenses 45 36 Total lease cost $ 2,061 $ 2,054 |
Lessee, Operating Lease, Liability, Maturity | Maturities of operating lease liabilities as of September 30, 2022 are as follows: Fiscal Year 2023 (remainder) $ 34,072 Fiscal Year 2024 45,361 Fiscal Year 2025 44,900 Fiscal Year 2026 45,374 Fiscal Year 2027 46,735 Thereafter 2,066,577 Total lease payments 2,283,019 Less imputed interest (1,549,921) Total lease liabilities $ 733,098 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Indefinite-Lived Intangible Assets | The Company’s indefinite-lived intangible assets as of September 30, 2022 and June 30, 2022 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, 2022 Gross Accumulated Net Trade names $ 2,300 $ (2,300) $ — Non-compete agreements 2,400 (2,400) — Other intangibles 1,200 (672) 528 $ 5,900 $ (5,372) $ 528 June 30, 2022 Gross Accumulated Net Trade names $ 2,300 $ (2,262) $ 38 Non-compete agreements 2,400 (2,360) 40 Other intangibles 1,200 (642) 558 $ 5,900 $ (5,264) $ 636 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
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 accounts I $ 23,022 $ 26,018 Time deposit I 54,316 56,082 Equity investments I 10,269 2,736 Total assets measured at fair value $ 87,607 $ 84,836 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 accounts 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, 2022 June 30, 2022 Carrying Fair Carrying Fair Liabilities Debt, current (a) $ 30,000 $ 30,000 $ 30,000 $ 30,000 Long-term debt (b) $ 220,000 $ 220,000 $ 220,000 $ 220,000 _________________ (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, 2022 | |
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 sheets: September 30, June 30, Other current assets $ 1,145 $ 1,145 Other assets 3,668 3,954 |
Pension Plans and Other Postr_2
Pension Plans and Other Postretirement Benefit Plan (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
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, 2022 and 2021. Net periodic benefit cost is reported in Miscellaneous expense, net. Three Months Ended September 30, 2022 2021 Interest cost $ 60 $ 31 Recognized actuarial loss 4 33 Net periodic benefit cost $ 64 $ 64 |
Deferred Compensation Plan | The following table summarizes amounts recognized related to the Deferred Compensation Plan in the consolidated balance sheets: September 30, June 30, Non-current assets (included in other assets) $ 10,269 $ 2,736 Current liabilities (included in accrued employee related costs) (982) (123) Non-current liabilities (included in other employee related costs) (9,287) (2,613) |
Share-based Compensation (Table
Share-based Compensation (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
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, 2022: Number of Weighted-Average Fair Value Per Share at Date of Grant (a) Nonperformance Performance Unvested award balance, June 30, 2022 199 189 $ 198.21 Granted 57 57 $ 161.58 Vested (119) (87) $ 222.48 Forfeited / Cancelled (1) (1) $ 158.01 Unvested award balance, September 30, 2022 136 158 $ 167.12 _____________________ (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, 2022: Number of Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value Balance as of June 30, 2022 94 $ 145.78 Granted — $ — Cancelled — $ — Balance as of September 30, 2022 94 $ 145.78 5.21 $ — Exercisable as of September 30, 2022 94 $ 145.78 5.21 $ — |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
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, 2022 and 2021: Three Months Ended September 30, 2022 2021 Revenues (a) $ 8,174 $ 7,247 Operating expenses: Corporate expenses pursuant to Services Agreement with MSG Entertainment $ 9,513 $ 8,884 Rent expense (sublease) due to MSG Entertainment 698 715 Costs associated with the Sponsorship sales and service representation agreements 2,933 2,733 Operating lease expense associated with the Arena License Agreements 1,311 1,311 Other costs associated with the Arena License Agreements 970 649 Other operating expenses, net 67 113 ____________________ (a) 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. |
Description of Business and B_2
Description of Business and Basis of Presentation - Narrative (Details) | 3 Months Ended |
Sep. 30, 2022 segments numberOfOperatingSegments | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | numberOfOperatingSegments | 1 |
Number of reportable segments | segments | 1 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | ||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 24,089 | $ 18,794 | |
Event-related | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | [1] | 5,346 | 3,870 |
Media rights | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | [2] | 6,986 | 6,586 |
Sponsorship, signage and suite licenses | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 4,814 | 3,170 | |
League distributions and other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 6,943 | $ 5,168 | |
[1]Consists of (i) ticket sales and other ticket-related revenues, and (ii) food, beverage and merchandise sales at The Garden.[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, 2022 | Jun. 30, 2022 | ||
Contract Assets and Liabilities [Line Items] | |||
Contract with customer, deferred revenue, revenue recognized | $ 5,356 | ||
Receivables from contracts with customers, net | |||
Contract Assets and Liabilities [Line Items] | |||
Contracts with customers, assets, net | [1] | 26,362 | $ 24,729 |
Escrow Recoveries | 11,694 | 12,464 | |
Other current assets | |||
Contract Assets and Liabilities [Line Items] | |||
Contracts with customers, assets, net | [2] | 8,554 | 13,839 |
Deferred Revenue | |||
Contract Assets and Liabilities [Line Items] | |||
Deferred revenue, including non-current portion | [3],[4] | 298,209 | 163,491 |
Deferred Revenue | NBA [Member] | |||
Contract Assets and Liabilities [Line Items] | |||
Deferred revenue, including non-current portion | 30,000 | ||
Other Assets | |||
Contract Assets and Liabilities [Line Items] | |||
Player Compensation Recoveries | 6,782 | 6,782 | |
Affiliated Entities | Net related party receivables | |||
Contract Assets and Liabilities [Line Items] | |||
Contracts with customers, assets, net | 922 | 1,258 | |
Local media rights | Deferred Revenue | |||
Contract Assets and Liabilities [Line Items] | |||
Deferred revenue, including non-current portion | $ 36,169 | $ 0 | |
[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, 2022 and June 30, 2022, the Company’s receivables reported above incl uded $922 and $1,258, 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, 2022, the Company had receivable balances related to escrow and player compensation recoveries of $11,694 and $6,782, recorded in Account s receivable, net and Other assets, respectively. As of June 30, 2022, the Company had receivable balances related to escrow and player compensation recover ies of $12,464 and $6,782, reco rded in Accounts receivable, net and Other assets, respectively. |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligation (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 447,715 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 147,175 |
Remaining performance obligation period | 9 months |
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 | $ 116,909 |
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 | $ 78,739 |
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 | $ 51,866 |
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 | $ 28,354 |
Remaining performance obligation period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 24,672 |
Remaining performance obligation period | 1 year |
Computation of Earnings (Loss_3
Computation of Earnings (Loss) per Common Share (Details) - shares shares in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||
Weighted-average shares for basic EPS | 24,295 | 24,172 |
Dilutive effect of shares issuable under share-based compensation plans | 0 | 0 |
Weighted-average shares for diluted EPS | 24,295 | 24,172 |
Weighted-average shares excluded from diluted earnings (loss) per share | 128 | 196 |
Team Personnel Transactions (De
Team Personnel Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Team Personnel Transactions Narrative [Line Items] | ||
Team personnel transaction expense | $ (329) | $ 727 |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract] | |||||
Cash and cash equivalents | $ 81,036 | $ 91,018 | $ 33,610 | $ 64,902 | |
Restricted cash | [1] | 0 | 0 | 6,668 | 7,134 |
Cash, cash equivalents and restricted cash on the consolidated statements of cash flows | $ 81,036 | $ 91,018 | $ 40,278 | $ 72,036 | |
[1]Restricted cash as of September 30, 2021 and June 30, 2021 relates to the Company’s revolving credit facilities (see Note 11 for more information). |
Leases - Lease Term (Details)
Leases - Lease Term (Details) | Sep. 30, 2022 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 8 months |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 33 years |
Leases - Assets and Liabilities
Leases - Assets and Liabilities Recognized (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 | |
Lessee, Lease, Description [Line Items] | |||
Right-of-use lease assets | $ 685,844 | $ 686,782 | |
Operating lease liabilities, current | [1] | 43,796 | 43,699 |
Operating lease liabilities, noncurrent | [1] | 689,302 | 699,587 |
Total lease liabilities | 733,098 | 743,286 | |
MSG Entertainment | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease liabilities, current | 43,225 | 43,028 | |
Operating lease liabilities, noncurrent | $ 689,302 | $ 699,587 | |
[1]As of September 30, 2022, Operating lease liabilities, current and Operating lease liabilities, noncurrent included balances of $43,225 and $689,302, respectively, that are payable to MSG Entertainment. As of June 30, 2022, Operating lease liabilities, current and Operating lease liabilities, noncurrent included balances of $43,028 and $699,587, respectively, that are payable to MSG Entertainment. |
Leases - Costs Incurred in the
Leases - Costs Incurred in the Period (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Lessee, Lease, Description [Line Items] | ||
Total lease cost | $ 2,061 | $ 2,054 |
Direct operating expenses | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | 1,403 | 1,407 |
Short-term lease cost | 45 | 36 |
Selling, general and administrative expenses | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | $ 613 | $ 611 |
Leases - Supplemental Informati
Leases - Supplemental Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Leases [Abstract] | ||
Operating lease payments | $ 11,263 | $ 10,768 |
Operating lease, weighted average remaining term | 32 years 6 months | |
Operating lease, weighted average discount rate | 7.13% |
Leases - Remaining Liabilities
Leases - Remaining Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 |
Leases [Abstract] | ||
Fiscal Year 2023 (remainder) | $ 34,072 | |
Fiscal Year 2024 | 45,361 | |
Fiscal Year 2025 | 44,900 | |
Fiscal Year 2026 | 45,374 | |
Fiscal Year 2027 | 46,735 | |
Thereafter | 2,066,577 | |
Total lease payments | 2,283,019 | |
Less imputed interest | (1,549,921) | |
Total lease liabilities | $ 733,098 | $ 743,286 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | |
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 | $ 108 | $ 265 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 |
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, 2022 | Jun. 30, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 5,900 | $ 5,900 |
Accumulated Amortization | (5,372) | (5,264) |
Net | 528 | 636 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 2,300 | 2,300 |
Accumulated Amortization | (2,300) | (2,262) |
Net | 0 | 38 |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 2,400 | 2,400 |
Accumulated Amortization | (2,400) | (2,360) |
Net | 0 | 40 |
Other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 1,200 | 1,200 |
Accumulated Amortization | (672) | (642) |
Net | $ 528 | $ 558 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 |
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | $ 87,607 | $ 84,836 |
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 | 23,022 | 26,018 |
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 | 54,316 | 56,082 |
Level I [Member] | Equity Securities | ||
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | $ 10,269 | $ 2,736 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 | |
Carrying Value | |||
Schedule Of Financial Instruments [Line Items] | |||
Long-term debt | [1] | $ 220,000 | $ 220,000 |
Short-term Debt, Fair Value | [2] | 30,000 | 30,000 |
Fair Value | |||
Schedule Of Financial Instruments [Line Items] | |||
Long-term debt | [1] | 220,000 | 220,000 |
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) | 3 Months Ended | ||||
Dec. 14, 2021 USD ($) | Jan. 25, 2017 USD ($) | Sep. 30, 2016 USD ($) | Sep. 30, 2022 USD ($) fiscal_quarter | Nov. 06, 2020 USD ($) | |
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 | 2021 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 | 4.37% | ||||
Interest payment | $ 1,892,000 | ||||
Line of Credit Facility, Expiration Date | Dec. 14, 2026 | ||||
Knicks | Collateral Pledged | 2021 Knicks Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Credit Spread Adjustment | 0.10% | ||||
Knicks | Collateral Pledged | Minimum | 2021 Knicks Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Commitment fee percentage | 0.25% | ||||
Qualified revenues threshold, percentage of available credit facility | 350% | ||||
Knicks | Collateral Pledged | Minimum | 2021 Knicks Revolving Credit Facility | Base Rate | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 0.25% | ||||
Knicks | Collateral Pledged | Minimum | 2021 Knicks Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 1.25% | ||||
Knicks | Collateral Pledged | Maximum | 2021 Knicks Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Commitment fee percentage | 0.30% | ||||
Knicks | Collateral Pledged | Maximum | 2021 Knicks Revolving Credit Facility | Base Rate | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 0.50% | ||||
Knicks | Collateral Pledged | Maximum | 2021 Knicks Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 1.50% | ||||
Knicks | Uncollateralized | 2020 Knicks Holdings Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 75,000,000 | ||||
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 | 2021 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, Expiration Date | Dec. 14, 2026 | ||||
Rangers | Collateral Pledged | 2021 Rangers Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Credit Spread Adjustment | 0.10% | ||||
Rangers | Collateral Pledged | Minimum | 2021 Rangers Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Commitment fee percentage | 0.375% | ||||
Rangers | Collateral Pledged | Minimum | 2021 Rangers Revolving Credit Facility | Base Rate | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 0.50% | ||||
Rangers | Collateral Pledged | Minimum | 2021 Rangers Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 1.50% | ||||
Rangers | Collateral Pledged | Maximum | 2021 Rangers Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Commitment fee percentage | 0.625% | ||||
Qualified revenues threshold, percentage of available credit facility | 17% | ||||
Rangers | Collateral Pledged | Maximum | 2021 Rangers Revolving Credit Facility | Base Rate | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 1% | ||||
Rangers | Collateral Pledged | Maximum | 2021 Rangers Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 2% |
Debt - Rangers Advance Narrativ
Debt - Rangers Advance Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 19, 2021 | |
Debt [Line Items] | |||
Debt | $ 30,000 | $ 30,000 | |
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% | ||
Interest payment | $ 225 |
Debt - Other Deferred Financing
Debt - Other Deferred Financing Costs (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 |
Other current assets | ||
Debt Instrument [Line Items] | ||
Debt issuance costs, net | $ 1,145 | $ 1,145 |
Other assets | ||
Debt Instrument [Line Items] | ||
Debt issuance costs, net | $ 3,668 | $ 3,954 |
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, 2022 | Sep. 30, 2021 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Interest cost | $ 60 | $ 31 |
Recognized actuarial loss | 4 | 33 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Total | $ 64 | $ 64 |
Benefit Plans - Defined Contrib
Benefit Plans - Defined Contribution Plan Schedule of Defined Contribution Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Savings Plans | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined Contribution Plan, Cost | $ 1,065 | $ 939 |
Benefit Plans (Executive Deferr
Benefit Plans (Executive Deferred Compensation Plan) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Jun. 30, 2022 | |
Deferred Compensation Plan [Line Items] | ||
Deferred Compensation Liability, Current | $ (982) | $ (123) |
Deferred Compensation Liability, Classified, Noncurrent | (9,287) | (2,613) |
Deferred Compensation Arrangement with Individual, Compensation Expense | (103) | |
Deferred Compensation Remeasurement Miscellaneous Income (Expense) | (103) | |
Equity Securities | Level I [Member] | ||
Deferred Compensation Plan [Line Items] | ||
Total assets measured at fair value | $ 10,269 | $ 2,736 |
Share-based Compensation - Narr
Share-based Compensation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Share-Based Payment Arrangement [Abstract] | ||
Share-based compensation expense | $ 7,220 | $ 4,851 |
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, 2022 | Sep. 30, 2021 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Beginning balance (USD per share) | [1] | $ 198.21 | ||
Granted (USD per share) | 161.58 | [1] | $ 262.08 | |
Vested (USD per share) | [1] | 222.48 | ||
Forfeited/canceled (USD per share) | [1] | 158.01 | ||
Ending balance (USD per share) | [1] | $ 167.12 | ||
Nonperformance Based Vesting RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Beginning balance (shares) | 199 | |||
Granted (shares) | 57 | |||
Vested (shares) | (119) | |||
Forfeited/canceled (shares) | (1) | |||
Ending balance (shares) | 136 | |||
Performance Based Vesting RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Beginning balance (shares) | 189 | |||
Granted (shares) | 57 | |||
Vested (shares) | (87) | |||
Forfeited/canceled (shares) | (1) | |||
Ending balance (shares) | 158 | |||
[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, 2022 | Sep. 30, 2021 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Payment for tax witholding | $ 10,996 | $ 12,142 | |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Instruments vested in period | $ 31,766 | $ 36,380 | |
Shares withheld for tax withholding obligation, value (shares) | 99 | ||
Payment for tax witholding | $ 15,229 | ||
Granted (USD per share) | $ 161.58 | [1] | $ 262.08 |
Restricted Stock Units (RSUs) | MSG Entertainment | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Payment for tax witholding | $ 4,233 | ||
[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, 2022 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Weighted average remaining contractual term | 5 years 2 months 15 days |
Aggregate intrinsic value | $ | $ 0 |
Exercisable, weighted-average remaining contractual term | 5 years 2 months 15 days |
Exercisable, aggregate intrinsic value | $ | $ 0 |
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, 2022 | Sep. 30, 2021 | 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, 2022 | |
Related Party Transaction [Line Items] | |
Aggregate voting power held by related party | 70.50% |
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% |
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% |
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, 2022 | Sep. 30, 2021 | ||
Related Party Transaction [Line Items] | |||
Revenues | [1] | $ 8,174 | $ 7,247 |
MSG Entertainment | |||
Related Party Transaction [Line Items] | |||
Corporate expenses pursuant to Services Agreement with MSG Entertainment | 9,513 | 8,884 | |
Costs associated with the Sponsorship sales and service representation agreements | 2,933 | 2,733 | |
Related Party Transactions, Arena License Agreements | 970 | 649 | |
Other operating expenses, net | 67 | 113 | |
MSG Entertainment | Arena Lease [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Operating lease expense associated with the Arena License Agreements | 1,311 | 1,311 | |
MSG Entertainment | Office Lease | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Rent Expense | $ 698 | $ 715 | |
[1](a) 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. |
Income Taxes - Rate Reconciliat
Income Taxes - Rate Reconciliation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense (benefit) | $ (20,493) | $ (21,169) |
Effective Income Tax Rate Reconciliation, Percent | 52.50% | 55.60% |
Federal statutory income tax rate, percent | 21% | 21% |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | Oct. 06, 2022 | Sep. 30, 2022 |
Accelerated Share Repurchases [Line Items] | ||
Stock repurchase program, remaining authorized amount | $ 259,639 | |
Subsequent Event | ||
Accelerated Share Repurchases [Line Items] | ||
Dividends, Cash | $ 172,749 | |
Accelerated Share Repurchase Program, Authorized Amount | 75,000 | |
Subsequent Event | 2021 Knicks Revolving Credit Facility | ||
Accelerated Share Repurchases [Line Items] | ||
Proceeds from revolving credit facilities | 55,000 | |
Subsequent Event | 2021 Rangers Revolving Credit Facility | ||
Accelerated Share Repurchases [Line Items] | ||
Proceeds from revolving credit facilities | $ 160,000 |