Cover
Cover - shares | 6 Months Ended | |
Dec. 31, 2023 | Feb. 02, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2023 | |
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 | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 19,416,405 | |
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 | Dec. 31, 2023 | Jun. 30, 2023 | |
Current Assets: | |||
Cash and cash equivalents | $ 37,880 | $ 40,398 | |
Restricted cash | [1] | 3,352 | 61 |
Prepaid expenses | 55,661 | 24,768 | |
Other current assets | 28,738 | 27,898 | |
Total current assets | 215,633 | 149,233 | |
Property and equipment, net of accumulated depreciation and amortization of $50,701 and $49,117 as of December 31, 2023 and June 30, 2023, respectively | 29,697 | 30,501 | |
Right-of-use lease assets | 706,569 | 715,283 | |
Indefinite-lived intangible assets | 103,644 | 103,644 | |
Goodwill | 226,523 | 226,523 | |
Investments | 62,112 | 67,374 | |
Other assets | 24,271 | 22,459 | |
Total assets | 1,368,449 | 1,315,017 | |
Current Liabilities: | |||
Debt | 30,000 | 30,000 | |
Accrued liabilities: | |||
Employee related costs | 90,987 | 144,310 | |
League-related accruals | 110,904 | 106,926 | |
Other accrued liabilities | 9,653 | 17,561 | |
Operating lease liabilities, current | [2] | 50,683 | 49,745 |
Deferred revenue | 257,626 | 157,051 | |
Total current liabilities | 560,437 | 520,528 | |
Long-term debt | 330,000 | 295,000 | |
Operating lease liabilities, noncurrent | [2] | 741,003 | 746,437 |
Defined benefit obligations | 4,539 | 4,526 | |
Other employee related costs | 50,719 | 49,070 | |
Deferred tax liabilities, net | 19,535 | 24,024 | |
Deferred revenue, noncurrent | 1,405 | 12,666 | |
Total liabilities | 1,707,638 | 1,652,251 | |
Commitments and contingencies (see Note 11) | |||
Madison Square Garden Sports Corp. Stockholders’ Equity: | |||
Preferred stock, par value $0.01, 15,000 shares authorized; none outstanding as of December 31, 2023 and June 30, 2023 | 0 | 0 | |
Additional paid-in capital | 11,471 | 16,846 | |
Treasury stock, at cost, 1,036 and 1,084 shares as of December 31, 2023 and June 30, 2023, respectively | (171,400) | (179,410) | |
Accumulated deficit | (178,512) | (173,910) | |
Accumulated other comprehensive loss | (997) | (1,009) | |
Total equity | (339,189) | (337,234) | |
Total liabilities and equity | 1,368,449 | 1,315,017 | |
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 | |
Nonrelated Party | |||
Current Assets: | |||
Accounts receivable, net | 72,668 | 40,139 | |
Current Liabilities: | |||
Accounts payable | 4,969 | 9,093 | |
Related Party | |||
Current Assets: | |||
Accounts receivable, net | 17,334 | 15,969 | |
Current Liabilities: | |||
Accounts payable | $ 5,615 | $ 5,842 | |
[1] Restricted cash as of December 31, 2023, June 30, 2023 and December 31, 2022 included cash deposited in an escrow account (see Note 2 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2023 for more information). As of December 31, 2023, Operating lease liabilities, current and Operating lease liabilities, noncurrent included balances o f $44,104 and $704,361, r espectively, that are payable to MSG Entertainment. As of June 30, 2023, Operating lease liabilities, current and Operating lease liabilities, noncurrent included balances of $43,700 and $707,124, respectively, that are payable to MSG Entertainment. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Accounts receivable, allowance for credit loss | $ 0 | $ 0 |
Accumulated depreciation and amortization | $ 50,701 | $ 49,117 |
Preferred stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 15,000 | 15,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Treasury stock (in shares) | 1,036 | 1,084 |
Class A Common Stock | ||
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 120,000 | 120,000 |
Common stock, shares outstanding (in shares) | 19,412 | 19,364 |
Class B Common Stock | ||
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 30,000 | 30,000 |
Common stock, shares outstanding (in shares) | 4,530 | 4,530 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | ||
Income Statement [Abstract] | |||||
Revenues | [1] | $ 326,898 | $ 353,694 | $ 369,944 | $ 377,783 |
Operating expenses: | |||||
Direct operating expenses | [2] | 232,225 | 225,702 | 235,745 | 229,383 |
Selling, general and administrative expenses | [3] | 65,066 | 75,636 | 118,622 | 130,917 |
Depreciation and amortization | 790 | 838 | 1,584 | 1,863 | |
Operating income | 28,817 | 51,518 | 13,993 | 15,620 | |
Other income (expense): | |||||
Interest income | 619 | 567 | 1,072 | 923 | |
Interest expense | (7,419) | (6,079) | (14,348) | (9,391) | |
Miscellaneous income (expense), net | 2,991 | 385 | (9,674) | 219 | |
Nonoperating income (loss) | (3,809) | (5,127) | (22,950) | (8,249) | |
Income (loss) before income taxes | 25,008 | 46,391 | (8,957) | 7,371 | |
Income tax (expense) benefit | (10,784) | (24,555) | 4,360 | (4,062) | |
Net income (loss) | 14,224 | 21,836 | (4,597) | 3,309 | |
Less: Net loss attributable to nonredeemable noncontrolling interests | 0 | (655) | 0 | (1,362) | |
Net income (loss) attributable to Madison Square Garden Sports Corp.’s stockholders | $ 14,224 | $ 22,491 | $ (4,597) | $ 4,671 | |
Basic earnings (loss) per common share, attributable to Madison Square Garden Sports Corp.'s stockholders (in USD per share) | $ 0.59 | $ 0.85 | $ (0.19) | $ 0.11 | |
Diluted earnings (loss) per common share attributable to Madison Square Garden Sports Corp.'s stockholders (in USD per share) | $ 0.59 | $ 0.84 | $ (0.19) | $ 0.11 | |
Weighted-average number of common shares outstanding: | |||||
Basic (in shares) | 24,017 | 24,130 | 23,994 | 24,213 | |
Diluted (in shares) | 24,065 | 24,189 | 23,994 | 24,306 | |
[1] Includes revenues from related parties of $77,658 and $74,950 for the three months ended December 31, 2023 and 2022, respectively, and $86,475 and $83,124 for the six months ended December 31, 2023 and 2022, respectively. Includes net charges from related parties of $35,683 and $45,485 for the three months ended December 31, 2023 and 2022, respectively, and $38,299 and $47,669 for the six months ended December 31, 2023 and 2022, respectively. Includes net charges from related parties of $16,630 and $17,433 for the three months ended December 31, 2023 and 2022, respectively, and $28,755 and $30,741 for the six months ended December 31, 2023 and 2022, respectively. |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | ||
Total revenues from contracts with customers | $ 326,898 | $ 353,694 | $ 369,944 | $ 377,783 | |
Direct operating expenses from related parties | 35,683 | 45,485 | 38,299 | 47,669 | |
Selling, general and administrative expenses from related parties | 16,630 | 17,433 | 28,755 | 30,741 | |
Related Party | |||||
Total revenues from contracts with customers | [1] | $ 77,658 | $ 74,950 | $ 86,475 | $ 83,124 |
[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 | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 14,224 | $ 21,836 | $ (4,597) | $ 3,309 |
Amounts reclassified from accumulated other comprehensive loss: | ||||
Amortization of actuarial loss included in net periodic benefit cost | 9 | 5 | 18 | 9 |
Other comprehensive income, before income taxes | 9 | 5 | 18 | 9 |
Income tax expense related to items of other comprehensive income | (3) | (2) | (6) | (3) |
Other comprehensive income, net of income taxes | 6 | 3 | 12 | 6 |
Comprehensive income (loss) | 14,230 | 21,839 | (4,585) | 3,315 |
Less: Comprehensive loss attributable to nonredeemable noncontrolling interests | 0 | (655) | 0 | (1,362) |
Comprehensive income (loss) attributable to Madison Square Garden Sports Corp.’s stockholders | $ 14,230 | $ 22,494 | $ (4,585) | $ 4,677 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (4,597) | $ 3,309 |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 1,584 | 1,863 |
Provision for deferred income taxes | (4,495) | 4,009 |
Share-based compensation expense | 10,719 | 18,839 |
Unrealized loss (gain) on equity investments with readily determinable fair value and warrants | 8,397 | (346) |
Other non-cash adjustments | 2,120 | 572 |
Change in assets and liabilities: | ||
Accounts receivable, net | (32,529) | (27,736) |
Net related party receivables | (1,365) | 4,749 |
Prepaid expenses and other assets | (32,117) | (21,881) |
Investments | (1,700) | (9,044) |
Accounts payable | (4,132) | (3,495) |
Net related party payables | (62) | (11,654) |
Accrued and other liabilities | (55,612) | 4,866 |
Deferred revenue | 89,314 | 55,722 |
Operating lease right-of-use assets and lease liabilities | 4,218 | 11,804 |
Net cash (used in) provided by operating activities | (20,257) | 31,577 |
Cash flows from investing activities: | ||
Capital expenditures | (990) | (662) |
Purchases of investments | (4,248) | (652) |
Net cash used in investing activities | (5,238) | (1,314) |
Cash flows from financing activities: | ||
Accelerated share repurchase | 0 | (75,000) |
Dividends paid | (648) | (170,683) |
Taxes paid in lieu of shares issued for equity-based compensation | (8,084) | (15,440) |
Proceeds from revolving credit facilities | 75,000 | 215,000 |
Repayment of revolving credit facilities | (40,000) | (30,000) |
Net cash provided by (used in) financing activities | 26,268 | (76,123) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 773 | (45,860) |
Cash, cash equivalents and restricted cash at beginning of period | 40,459 | 91,018 |
Cash, cash equivalents and restricted cash at end of period | 41,232 | 45,158 |
Non-cash investing and financing activities: | ||
Capital expenditures incurred but not yet paid | $ 45 | $ 417 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Total Madison Square Garden Sports Corp. Stockholders’ Equity | Common Stock Issued | Additional Paid-In Capital | Treasury Stock | Accumulated Deficit | Accumulated Other Comprehensive Loss | Non - redeemable Noncontrolling Interests |
Beginning balance at Jun. 30, 2022 | $ (145,377) | $ (147,089) | $ 249 | $ 17,573 | $ (128,026) | $ (35,699) | $ (1,186) | $ 1,712 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 3,309 | 4,671 | 4,671 | (1,362) | ||||
Other comprehensive income | 6 | 6 | 6 | |||||
Comprehensive income (loss) | 3,315 | 4,677 | (1,362) | |||||
Share-based compensation | 18,839 | 18,839 | 18,839 | |||||
Tax withholding associated with shares issued for equity-based compensation | (15,440) | (15,440) | (15,440) | |||||
Common stock issued under stock incentive plans | 0 | 0 | (9,326) | 18,254 | (8,928) | |||
Dividends declared ($7.00 per share) | (172,749) | (172,749) | (172,749) | |||||
Accelerated share repurchase | (75,000) | (75,000) | (10,658) | (60,000) | (4,342) | |||
Adjustments to noncontrolling interests | (988) | (988) | 988 | |||||
Ending balance at Dec. 31, 2022 | (386,412) | (387,750) | 249 | 0 | (169,772) | (217,047) | (1,180) | 1,338 |
Beginning balance at Sep. 30, 2022 | (171,910) | (173,362) | 249 | 0 | (109,981) | (62,447) | (1,183) | 1,452 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 21,836 | 22,491 | 22,491 | (655) | ||||
Other comprehensive income | 3 | 3 | 3 | |||||
Comprehensive income (loss) | 21,839 | 22,494 | (655) | |||||
Share-based compensation | 11,619 | 11,619 | 11,619 | |||||
Tax withholding associated with shares issued for equity-based compensation | (211) | (211) | (211) | |||||
Common stock issued under stock incentive plans | 0 | 0 | (209) | 209 | ||||
Dividends declared ($7.00 per share) | (172,749) | (172,749) | (172,749) | |||||
Accelerated share repurchase | (75,000) | (75,000) | (10,658) | (60,000) | (4,342) | |||
Adjustments to noncontrolling interests | 0 | (541) | (541) | 541 | ||||
Ending balance at Dec. 31, 2022 | (386,412) | (387,750) | 249 | 0 | (169,772) | (217,047) | (1,180) | $ 1,338 |
Beginning balance at Jun. 30, 2023 | (337,234) | (337,234) | 249 | 16,846 | (179,410) | (173,910) | (1,009) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (4,597) | (4,597) | ||||||
Other comprehensive income | 12 | 12 | 12 | |||||
Comprehensive income (loss) | (4,585) | (4,585) | ||||||
Share-based compensation | 10,719 | 10,719 | ||||||
Tax withholding associated with shares issued for equity-based compensation | (8,084) | (8,084) | ||||||
Common stock issued under stock incentive plans | 0 | (8,010) | 8,010 | |||||
Dividends declared ($7.00 per share) | (5) | (5) | ||||||
Ending balance at Dec. 31, 2023 | (339,189) | (339,189) | 249 | 11,471 | (171,400) | (178,512) | (997) | |
Beginning balance at Sep. 30, 2023 | (358,543) | 249 | 7,553 | (172,605) | (192,737) | (1,003) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 14,224 | 14,224 | ||||||
Other comprehensive income | 6 | 6 | ||||||
Comprehensive income (loss) | 14,230 | |||||||
Share-based compensation | 6,570 | 6,570 | ||||||
Tax withholding associated with shares issued for equity-based compensation | (1,447) | (1,447) | ||||||
Common stock issued under stock incentive plans | 0 | (1,205) | 1,205 | |||||
Dividends declared ($7.00 per share) | 1 | 1 | ||||||
Ending balance at Dec. 31, 2023 | $ (339,189) | $ (339,189) | $ 249 | $ 11,471 | $ (171,400) | $ (178,512) | $ (997) |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared (in USD per share) | $ 7 | $ 7 | $ 7 | $ 7 |
Description of Business and Bas
Description of Business and Basis of Presentation | 6 Months Ended |
Dec. 31, 2023 | |
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 previously owned a controlling interest in Counter Logic Gaming (“CLG”), a North American esports organization. In April 2023, the Company sold its controlling interest in CLG to Hard Carry Gaming Inc. (“NRG”), a professional gaming and entertainment company in exchange for a noncontrolling equity interest in the combined NRG/CLG company. CLG and the sports teams are collectively referred to herein as the “teams.” The Company also operates a professional sports team performance center — the Madison Square Garden Training Center in Greenburgh, NY. 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; and 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 of 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 Company distributed all of the outstanding common stock of Sphere Entertainment Co. (formerly Madison Square Garden Entertainment Corp. and referred to herein as “Sphere Entertainment”) to its stockholders (the “Sphere Distribution”). On April 20, 2023 (the “MSGE Distribution Date”), Sphere Entertainment distributed to its stockholders approximately 67% of the issued and outstanding shares of common stock of Madison Square Garden Entertainment Corp. (referred to herein as “MSG Entertainment”) to its stockholders (the “MSGE Distribution”). All agreements between the Company and MSG Entertainment described herein were between the Company and Sphere Entertainment prior to the MSGE Distribution (except agreements entered into after the MSGE Distribution Date). Unless the context otherwise requires, all references to MSG Entertainment, Sphere Entertainment and MSG Networks refer to such entity, together with its direct and indirect subsidiaries. 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 Securities and Exchange Commission (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, 2023 (“fiscal year 2023”). 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, which is when the majority of the sports teams’ games are played. Reclassifications Certain reclassifications have been made in order to conform to the current period’s presentation and relate to the separation of Investments and unrealized loss (gain) on equity investments with readily determinable fair value and warrants on the consolidated statements of cash flows for the six months ended December 31, 2022. |
Accounting Policies
Accounting Policies | 6 Months Ended |
Dec. 31, 2023 | |
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. For consolidated subsidiaries where the Company’s ownership is less than 100%, the relevant amounts attributable to investors other than the Company are reflected under “Nonredeemable noncontrolling interests,” “Net income (loss) attributable to nonredeemable noncontrolling interests” and “Comprehensive income (loss) attributable to nonredeemable noncontrolling interests” in the accompanying consolidated balance sheets, 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, fair value of investments, deferred tax valuation allowance, tax accruals, and other liabilities. In addition, estimates are used in revenue recognition, revenue sharing expense (net of escrow and excluding playoffs), luxury tax expense, income tax expense, performance and share-based compensation, depreciation and amortization, litigation matters and other matters. Management believes its use of estimates in the Financial Statements to be reasonable. Management evaluates its estimates on an ongoing basis using historical experience and other factors, including the general economic environment and actions it may take in the future. The Company adjusts such estimates when facts and circumstances dictate. However, these estimates may involve significant uncertainties and judgments and cannot be determined with precision. In addition, these estimates are based on management’s best judgment at a point in time and, as such, these estimates may ultimately differ from actual results. Changes in estimates resulting from weakness in the economic environment or other factors beyond the Company’s control could be material and would be reflected in the Company’s financial statements in future periods. Recently Issued Accounting Pronouncements Recently Issued Accounting Pronouncements Not Yet Adopted In March 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-01, Leases (Topic 842): Common Control Arrangements. This ASU amends certain provisions of Accounting Standards Codification (“ASC”) 842, Leases that apply to arrangements between related parties under common control. The new guidance is effective for the Company in the first quarter of fiscal year 2025. The Company is currently evaluating the impact this standard will have on its consolidated financial statements. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The ASU expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the CODM and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. All disclosure requirements under ASU 2023-07 are also required for public entities with a single reportable segment. The ASU is effective for the Company’s Annual Report on Form 10-K for the fiscal year ending June 30, 2025 and subsequent interim periods, with early adoption permitted. The Company is currently evaluating the impact this standard will have on its segment disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The ASU enhances annual disclosures related to the effective income tax rate reconciliation and income taxes paid. The ASU is effective for the Company’s Annual Report on Form 10-K for the fiscal year ending June 30, 2026 and subsequent interim periods, with early adoption permitted. The Company is currently evaluating the impact this standard will have on its income tax disclosures. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Dec. 31, 2023 | |
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 and six months ended December 31, 2023 and 2022, 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 and six months ended December 31, 2023 and 2022: Three Months Ended Six Months Ended December 31, December 31, 2023 2022 2023 2022 Event-related (a) $ 122,449 $ 142,308 $ 128,270 $ 147,654 Media rights (b) 122,547 118,158 129,766 125,144 Sponsorship, signage and suite licenses 69,316 81,021 74,630 85,835 League distributions and other 12,586 12,207 37,278 19,150 Total revenues from contracts with customers $ 326,898 $ 353,694 $ 369,944 $ 377,783 _________________ (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 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 December 31, 2023 and June 30, 2023. December 31, June 30, 2023 2023 Receivables from contracts with customers, net (a) $ 65,963 $ 20,134 Contract assets, current (b) 19,134 19,465 Deferred revenue, including non-current portion (c), (d) 259,031 169,717 _________________ (a) Receivables from contracts with customers, net, which are reported in Accounts receivable, net and Net related party receivables in the accompanying consolidated balance sheets, represent the Company’s unconditional rights to consideration under its contracts with customers. As of December 31, 2023 and June 30, 2023, the Company’s receivables reported above incl uded $2,012 and $0 , respectively, related to contracts with customers who are related parties. See Note 16 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 December 31, 2023 and June 30, 2023, the Company had receivable balances related to escrow and player compensation recoveries of $2,197 and $1,544, respectively, reco rded in Accounts receivable, net. (b) Contract assets, current, which are reported as Other current assets in the 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 Company’s deferred revenue related to local media rights was $10,013 and $0 as of December 31, 2023 and June 30, 2023, respectively. See Note 16 for further details on these related party arrangements. (d) Revenue recognized for the six months ended December 31, 2023 relating to the deferred revenue balance as of June 30, 2023 was $77,945. 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 December 31, 2023 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 2024 (remainder) $ 112,924 Fiscal Year 2025 123,978 Fiscal Year 2026 77,120 Fiscal Year 2027 38,711 Fiscal Year 2028 19,697 Thereafter 16,936 $ 389,366 |
Computation of Earnings (Loss)
Computation of Earnings (Loss) per Common Share | 6 Months Ended |
Dec. 31, 2023 | |
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 earnings (loss) allocated to common shares and 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 Six Months Ended December 31, December 31, 2023 2022 2023 2022 Net earnings (loss) allocable to common shares, basic and diluted (numerator): Net income (loss) attributable to Madison Square Garden Sports Corp.’s stockholders $ 14,224 $ 22,491 $ (4,597) $ 4,671 Less: Dividends to other-than-common stockholders (a) (1) 2,056 5 2,056 Net earnings (loss) allocable to common shares, basic and diluted (numerator): $ 14,225 $ 20,435 $ (4,602) $ 2,615 Weighted-average shares (denominator): Weighted-average shares for basic EPS 24,017 24,130 23,994 24,213 Dilutive effect of shares issuable under share-based compensation plans 48 59 — 93 Weighted-average shares for diluted EPS 24,065 24,189 23,994 24,306 Weighted-average shares excluded from diluted EPS — — 71 — Basic earnings (loss) per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ 0.59 $ 0.85 $ (0.19) $ 0.11 Diluted earnings (loss) per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ 0.59 $ 0.84 $ (0.19) $ 0.11 _________________ (a) Dividends to other-than-common stockholders consists of forfeitable rights to dividends declared and payable to holders of the Company’s unvested restricted stock units and performance restricted stock units. |
Team Personnel Transactions
Team Personnel Transactions | 6 Months Ended |
Dec. 31, 2023 | |
Team Personnel Transactions [Abstract] | |
Team Personnel Transactions | Team Personnel Transactions Direct operating and selling, general and administrative expenses in the accompanying consolidated statements of operations include a net provision or credit for transactions relating to the Company’s teams for waiver/contract termination costs, player trades and season-ending injuries (“Team personnel transactions”). There were no Team personnel transactions for the three and six months ended December 31, 2023. Team personnel transactions were a net provision of $29 for the three months ended December 31, 2022 and net credit of $300 for the six months ended December 31, 2022. |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 6 Months Ended |
Dec. 31, 2023 | |
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 December 31, June 30, December 31, June 30, Captions on the consolidated balance sheets: Cash and cash equivalents $ 37,880 $ 40,398 $ 43,912 $ 91,018 Restricted cash (a) 3,352 61 1,246 — Cash, cash equivalents and restricted cash on the consolidated statements of cash flows $ 41,232 $ 40,459 $ 45,158 $ 91,018 _________________ (a) Restricted cash as of December 31, 2023, June 30, 2023 and December 31, 2022 included cash deposited in an escrow account (see Note 2 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2023 for more information). |
Leases
Leases | 6 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases As of December 31, 2023, 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 a lease agreement for an aircraft. Prior to the MSGE Distribution Date, the Sublease Agreement was between the Company and Sphere Entertainment. In addition, the Company accounts for the rights of use of The Garden pursuant to the Arena License Agreements (as defined below) as leases under the ASC Topic 842, Leases. See Note 7 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2023 for more information regarding the Company’s accounting policies associated with its leases. As of December 31, 2023, the Company’s exis ting operating leases, which are recorded in the accompanying financial statements, have remaining lease terms ranging from 10 months to 32 years. In certain ins tances, 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 right-of-use assets and lease liabilities recorded in the accompanying consolidated balance sheets as of December 31, 2023 and June 30, 2023: Line Item in the Company’s Consolidated Balance Sheet December 31, June 30, Right-of-use assets: Operating leases Right-of-use lease assets $ 706,569 $ 715,283 Lease liabilities: Operating leases, current (a) Operating lease liabilities, current $ 50,683 $ 49,745 Operating leases, noncurrent (a) Operating lease liabilities, noncurrent 741,003 746,437 Total lease liabilities $ 791,686 $ 796,182 _________________ (a) As of December 31, 2023, Operating lease liabilities, current and Operating lease liabilities, noncurrent included balances o f $44,104 and $704,361, r espectively, that are payable to MSG Entertainment. As of June 30, 2023, Operating lease liabilities, current and Operating lease liabilities, noncurrent included balances of $43,700 and $707,124, respectively, that are payable to MSG Entertainment. The following table summarizes the activity recorded within the accompanying consolidated statements of operations for the three and six months ended December 31, 2023 and 2022: Line Item in the Company’s Consolidated Statement of Operations Three Months Ended December 31, Six Months Ended December 31, 2023 2022 2023 2022 Operating lease cost Direct operating expenses $ 24,362 $ 31,811 $ 25,673 $ 33,214 Operating lease cost Selling, general and administrative expenses 2,320 613 4,640 1,226 Short-term lease cost Direct operating expenses — 70 — 115 Total lease cost $ 26,682 $ 32,494 $ 30,313 $ 34,555 Supplemental Information For the six months ended December 31, 2023 and 2022, cash paid for amounts included in the measurement of lease liabilities was $26,095 and $22,526, respectively. The weighted average remaining lease term for operating leases recorded in the accompanying consolidated balance sheet as of December 31, 2023 was 30.2 years. The weighted average discount rate was 7.1% as of December 31, 2023 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 December 31, 2023 are as follows: Fiscal Year 2024 (remainder) $ 26,047 Fiscal Year 2025 51,681 Fiscal Year 2026 52,155 Fiscal Year 2027 53,516 Fiscal Year 2028 54,919 Thereafter 2,041,609 Total lease payments 2,279,927 Less imputed interest (1,488,241) Total lease liabilities $ 791,686 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets During the first quarter of fiscal year 2024, 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 December 31, 2023 and June 30, 2023 was $226,523. The Company’s indefinite-lived intangible assets as of December 31, 2023 and June 30, 2023 are as follows: Sports franchises $ 102,564 Photographic related rights 1,080 $ 103,644 During the first quarter of fiscal year 2024, 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. For the three and six months ended December 31, 2022, amortization expense o f intangible assets was $30 and $138, respectively. There was no amortization expense for the three and six months ended December 31, 2023 |
Investments
Investments | 6 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments The Company’s investments in nonconsolidated affiliates which are accounted for under the equity method of accounting, equity investments with readily determinable fair values, equity investments without readily determinable fair values, and derivative instruments, which are reported within Investments in the accompanying consolidated balance sheets, consisted of the following: December 31, June 30, Equity method investments: NRG $ 11,091 $ 11,948 Other equity method investments 2,000 — Equity investments with readily determinable fair values: Xtract One Technologies Inc. (“Xtract One”) common stock 17,616 22,408 Other equity investments with readily determinable fair values held in trust under the Company’s Executive Deferred Compensation Plan 16,842 14,406 Equity investments without readily determinable fair values (a) 5,761 5,514 Derivative instruments: Xtract One warrants 8,802 13,098 Total investments $ 62,112 $ 67,374 _________________ (a) For the three and six months ended December 31, 2023 and 2022, the Company did not record any impairment charges or changes in carrying value of its equity securities without readily determinable fair values in the accompanying consolidated statements of operations. Equity Method Investments The Company determined that it has the ability to exert significant influence over the investee and therefore accounts for this investment under the equity method of accounting. NRG In April 2023, the Company sold its controlling interest in CLG to NRG, a professional gaming and entertainment company, in exchange for a noncontrolling equity interest in the combined NRG/CLG company. The Company received preferred shares representing approximately 25% of the capital stock of NRG. The Company deconsolidated the CLG business and recorded the investment in NRG at fair value as an equity method investment in the fourth quarter of fiscal year 2023. During the three and six months ended December 31, 2023, the Company recognized its net share of losses of $442 and $857, respectively, in Miscellaneous income (expense), net within the Company’s consolidated statement of operations. As of December 31, 2023 and June 30, 2023, the Company’s ownership in NRG was approximately 25%. Equity Investments with Readily Determinable Fair Values The Company holds investments in equity instruments with readily determinable fair value: • Xtract One, a technology-driven threat detection and security solution company that is listed on the Toronto Stock Exchange under the symbol “XTRA”. The Company holds common stock of Xtract One and holds warrants entitling the Company to acquire additional shares of common stock of Xtract One which are considered derivative instruments. Refer to Note 10 for further details regarding the Company’s warrants, including the inputs used in determining the fair value of the warrants. • Other equity investments held in trust under the Company’s Executive Deferred Compensation Plan. Refer to Note 13 for further details regarding the plan. The fair value of the Company’s investments in common stock of Xtract One and other investments held in trust are determined based on quoted market prices in active markets, which are classified within Level I of the fair value hierarchy. The cost basis and carrying value of equity investments with readily determinable fair values are as follows: December 31, 2023 June 30, 2023 Cost Basis Carrying Value/Fair Value Cost Basis Carrying Value/Fair Value Xtract One common stock $ 6,783 $ 17,616 $ 6,783 $ 22,408 Other equity investments with readily determinable fair values 15,518 16,842 13,772 14,406 $ 22,301 $ 34,458 $ 20,555 $ 36,814 The following table summarizes the realized and unrealized gains (losses) on equity investments with readily determinable fair values, recorded within Miscellaneous income (expense), net within the Company’s consolidated statement of operations, for the three and six months ended December 31, 2023 and 2022. Three Months Ended December 31, Six Months Ended December 31, 2023 2022 2023 2022 Unrealized gain (loss) - Xtract One common stock $ 1,761 $ — $ (4,792) $ — Unrealized gain - other equity investments with readily determinable fair values 821 449 691 346 Realized gain - other equity investments with readily determinable fair values 18 — 44 — $ 2,600 $ 449 $ (4,057) $ 346 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Dec. 31, 2023 | |
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 December 31, June 30, Assets: Money market accounts I $ 36,842 $ 17,330 Time deposit I 353 1,457 Equity investments I 34,458 36,814 Warrants III 8,802 13,098 Total assets measured at fair value $ 80,455 $ 68,699 Level I Inputs Assets that are classified within Level I of the fair value hierarchy 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. Refer to Note 9 for further details regarding equity investments. Level III Inputs The Company’s level III assets consist of warrants entitling the Company to acquire additional common stock of Xtract One. The Company’s warrants are included within Investments in the accompanying consolidated balance sheets. Changes in the fair value of derivative instruments are measured at each reporting date and are recorded within Miscellaneous income (expense), net in the accompanying consolidated statements of operations. The fair value of the Company’s warrants in Xtract One were determined using the Black-Scholes option pricing model. The following are key assumptions used to calculate the fair value of the warrants as of December 31, 2023 and June 30, 2023: December 31, June 30, Expected term 2.09 years 2.34 years Expected volatility 75.87 % 74.43 % Risk-free interest rate 4.23 % 4.68 % The following table presents additional information about our assets for which we utilize Level III inputs to determine fair value: Three Months Ended Six Months Ended December 31, 2023 December 31, 2023 Balance at beginning of period $ 7,680 $ 13,098 Unrealized gain (loss) on warrants 1,122 (4,296) Balance at end of period $ 8,802 $ 8,802 The carrying value and fair value of the Company’s debt reported in the accompanying consolidated balance sheets are as follows: December 31, 2023 June 30, 2023 Carrying Fair Carrying Fair Liabilities Debt, current (a) $ 30,000 $ 30,000 $ 30,000 $ 30,000 Long-term debt (b) $ 330,000 $ 330,000 $ 295,000 $ 295,000 _________________ (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 based on valuation of similar securities. See Note 12 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 12 for further details. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Dec. 31, 2023 | |
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, 2023, 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 2023 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 | 6 Months Ended |
Dec. 31, 2023 | |
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 to fund working capital needs and for general corporate purposes. 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 (as amended and restated, the “Knicks Credit Agreement”). The Knicks Credit Agreement provides for a senior secured revolving credit facility of up to $275,000 (the “Knicks Revolving Credit Facility”) to fund working capital needs and for general corporate purposes. The maturity date of the 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 Knicks Revolving Credit Facility are subject to the satisfaction of certain customary conditions. Borrowings under the 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 Knicks Revolving Credit Facility. During the six months ended December 31, 2023, the Company borrowed an additional $40,000 under the Knicks Revolving Credit Facility. The outstanding balance under the Knicks Revolving Credit Facility was $275,000 as of December 31, 2023, which was recorded as Long-term debt in the accompanying consolidated balance sheet. The interest rate on the Knicks Revolving Credit Facility as of December 31, 2023 was 6.71% . During the six months ended December 31, 2023 the Company made interest payments of $9,073 in respect of the Knicks Revolving Credit Facility. All obligations under the Knicks Revolving Credit Facility are secured by a first lien security interest in certain of Knicks LLC’s assets, including, but not limited to, (i) the Knicks LLC’s membership rights in the NBA, (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 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 Knicks Revolving Credit Facility is greater than 350% of qualified revenues. In addition to the financial covenant described above, the Knicks Credit Agreement and related security agreement contain certain customary representations and warranties, affirmative covenants and events of default. The Knicks Revolving Credit Facility contains certain restrictions on the ability of Knicks LLC to take certain actions as provided in (and subject to various exceptions and baskets set forth in) the Knicks Revolving Credit Facility, including the following: (i) incurring additional indebtedness and contingent liabilities; (ii) creating liens on certain assets; (iii) making restricted payments during the continuance of an event of default under the Knicks Revolving Credit Facility; (iv) engaging in sale and leaseback transactions; (v) merging or consolidating; and (vi) taking certain actions that would invalidate the secured lenders’ liens on any Knicks LLC’s collateral. The 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 December 31, 2023, Knicks LLC was in compliance with this financial covenant. 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 to fund working capital needs and for general corporate purposes. 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 (as amended and restated, the “Rangers Credit Agreement”). The Rangers Credit Agreement provides for a senior secured revolving credit facility of up to $250,000 (the “Rangers Revolving Credit Facility”) to fund working capital needs and for general corporate purposes. The maturity date of the 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 Rangers Revolving Credit Facility are subject to the satisfaction of certain customary conditions. Borrowings under the 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 Rangers Revolving Credit Facility. During the six months ended December 31, 2023, the Company borrowed an additional $35,000 and made principal repayments of $40,000 under the Rangers Revolving Credit Facility. The outstanding balance under the Rangers Revolving Credit Facility wa s $55,000 as of December 31, 2023, which was recorded as Long-term debt in the accompanying consolidated balance sheet. The interest rate on the Rangers Revolving Credit Facility as of December 31, 2023 wa s 7.21% . During the six months ended December 31, 2023 the Company made interest payments of $2,815 in respect of the Rangers Revolving Credit Facility. All obligations under the Rangers Revolving Credit Facility are, subject to the 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 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 Rangers Revolving Credit Facility. In addition to the financial covenant described above, the Rangers Credit Agreement and related security agreement contain certain customary representations and warranties, affirmative covenants and events of default. The Rangers Revolving Credit Facility contains certain restrictions on the ability of Rangers LLC to take certain actions as provided in (and subject to various exceptions and baskets set forth in) the Rangers Revolving Credit Facility, including the following: (i) incurring additional indebtedness and contingent liabilities; (ii) creating liens on certain assets; (iii) making restricted payments during the continuance of an event of default under the Rangers Revolving Credit Facility; (iv) engaging in sale and leaseback transactions; (v) merging or consolidating; and (vi) taking certain actions that would invalidate the secured lenders’ liens on any of Rangers LLC’s assets securing the obligations under the Rangers Revolving Credit Facility. The 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 December 31, 2023, Rangers LLC was in compliance with this financial covenant. 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 “Rangers NHL Advance Agreement”) pursuant to which the NHL advanced $30,000 to Rangers LLC. The advance is required to be utilized solely and exclusively to pay for Rangers LLC operating expenses. All obligations under the 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 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 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 Rangers NHL Advance Agreement was $30,000 as of December 31, 2023 and was recorded as Debt in the accompanying consolidated balance sheet. During the six months ended December 31, 2023 the Company made interest p ayments of $675. Deferred Financing Costs The following table summarizes deferred financing costs, net of amortization, related to the Company’s credit facilities as reported in the accompanying consolidated balance sheets: December 31, June 30, Other current assets $ 1,145 $ 1,145 Other assets 2,237 2,810 |
Benefit Plans
Benefit Plans | 6 Months Ended |
Dec. 31, 2023 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Benefit Plans | Benefit Plans Defined Benefit Pension Plans The Company sponsors the MSG Sports, LLC Excess Cash Balance Plan (the “Excess Cash Balance Plan”), an unfunded non-contributory, non-qualified excess cash balance plan and the MSG Sports, LLC Excess Retirement Plan, an unfunded non-contributory, non-qualified defined benefit pension plan for the benefit of certain employees (collectively referred to as the “Pension Plans”). All benefits in the Pension Plans are frozen and participants are not able to earn benefits for future service under these plans, and no employee of the Company who was not already a participant as of the date the respective plan was frozen may become a participant in the Pension Plans. Existing account balances under the Excess Cash Balance Plan are credited with monthly interest in accordance with the terms of the plan. The following table presents components of net periodic benefit cost for the Pension Plans included in the accompanying consolidated statements of operations for the three and six months ended December 31, 2023 and 2022. Components of net periodic benefit cost are reported in Miscellaneous income (expense), net. Three Months Ended Six Months Ended December 31, December 31, 2023 2022 2023 2022 Interest cost $ 68 $ 60 $ 136 $ 120 Recognized actuarial loss 9 4 18 8 Net periodic benefit cost $ 77 $ 64 $ 154 $ 128 Defined Contribution Plans MSG Sports employees participate in The Madison Square Garden 401(k) Savings Plan (the “401(k) Plan”), which is a multiple employer plan sponsored by MSG Entertainment Holdings, LLC, a wholly owned subsidiary of MSG Entertainment. In addition, the Company sponsors the MSG Sports LLC, Excess Savings Plan (the “Excess Savings Plan”), which provides non-qualified retirement benefits to eligible MSG Sports employees. Expense related to the 401(k) Plan and Excess Savings Plan for the three and six months ended December 31, 2023 was $1,314 and $2,608, respectively, and $1,072 and $2,137 for the three and six months ended December 31, 2022, 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, 2023 for more information regarding the Company’s E xecutive Deferred Compensation Plan (the “Deferred Compensation Plan”). The Company recorded compensation expense of $839 and $735 for the three and six months ended December 31, 2023 , respectively, and $449 and $346 for the three and six months ended December 31, 2022, respectively, within Selling, general and administrative expenses to reflect the remeasurement of the Deferred Compensation Plan liability. In addition, the Company recorded gains of $839 and $735 for the three and six months ended December 31, 2023 , respectively, and $449 and $346 for the three and six months ended December 31, 2022, respectively, within Miscellaneous income (expense), net to reflect t he 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: December 31, June 30, Non-current assets (included in investments) $ 16,842 $ 14,406 Current liabilities (included in accrued employee related costs) (476) (1,358) Non-current liabilities (included in other employee related costs) (16,366) (13,048) |
Share-based Compensation
Share-based Compensation | 6 Months Ended |
Dec. 31, 2023 | |
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, 2023 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 is recognized in the consolidated statements of operations as a component of Selling, general and administrative expenses. Share-based compensation expense was $6,570 and $10,719 for the three and six months ended December 31, 2023, respectively and $11,619 and $18,839 for the three and six months ended December 31, 2022, respectively. There were no costs related to share-based compensation that were capitalized for the three and six months ended December 31, 2023 and 2022, 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 current and former employees of the Company and non-employee directors, for the six months ended December 31, 2023: Number of Weighted-Average Fair Value Per Share at Date of Grant (a) Nonperformance Performance Unvested award balance, June 30, 2023 124 160 $ 167.08 Granted 63 48 $ 177.39 Vested (57) (52) $ 162.69 Forfeited / Cancelled (3) (3) $ 176.52 Unvested award balance, December 31, 2023 127 153 $ 172.64 _____________________ (a) Weighted-average fair value per share at date of grant does not reflect any adjustments to awards granted prior to the Sphere Distribution. The fair value of RSUs that vested during the six months ended December 31, 2023 was $19,195. 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 current and former employees’ required statutory tax withholding obligations for the applicable income and other employment taxes, 46 of these RSUs, with an aggregate value of $8,084, inclusive of $4 related to the Company’s former 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 six months ended December 31, 2023. The fair value of RSUs that vested during the six months ended December 31, 2022 was $34,233. The weighted-average fair value per share at grant date of RSUs granted during the six months ended December 31, 2022 was $161.41. Stock Options Award Activity The following table summarizes activity related to the Company’s stock options for the six months ended December 31, 2023: Number of Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value Balance as of June 30, 2023 94 $ 138.78 Granted — $ — Cancelled — $ — Balance as of December 31, 2023 94 $ 138.78 3.96 $ 4,039 Exercisable as of December 31, 2023 94 $ 138.78 3.96 $ 4,039 |
Stock Repurchase Program
Stock Repurchase Program | 6 Months Ended |
Dec. 31, 2023 | |
Stock Repurchase Program [Abstract] | |
Stock Repurchase Program | Stock Repurchase Program Amounts in this footnote are in thousands, except for the number of shares repurchased and per share data. 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 (“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. On October 6, 2022, the Company’s Board of Directors authorized a $75,000 accelerated share repurchase (“ASR”) program under the Company’s existing share repurchase authorization. On October 28, 2022, the Company entered into a $75,000 ASR agreement with JPMorgan Chase Bank, National Association (“JP Morgan”). Pursuant to the ASR agreement, the Company made a payment of $75,000 to JP Morgan and JP Morgan delivered 388,777 initial shares of Class A Common Stock to the Company on November 1, 2022, representing 80% of the total shares expected to be repurchased under the ASR (determined based on the closing price of the Company’s Class A Common Stock of $154.33 on October 28, 2022). The ASR was completed on January 31, 2023 with JP Morgan delivering 67,681 additional shares of Class A Common Stock to the Company upon final settlement. The average purchase price per share for shares of Class A Common Stock purchased by the Company pursuant to the ASR was $164.31. The ASR was accounted for as a repurchase of shares and as an equity forward contract indexed to the Company’s Class A Common Stock. The equity forward contract was classified as an equity instrument under ASC Subtopic 815-40. The Company has treated the initial and final shares of Class A Common Stock delivered as treasury shares as of the date the shares were physically delivered in computing the weighted average shares of outstanding Class A Common Stock for both basic and diluted earnings per share. During the six months ended December 31, 2023 , the Company did not make any share repurchases under its share repurchase program. As of December 31, 2023, the Company had $184,639 of availability remaining under its stock repurchase authorization . |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions As of December 31, 2023, for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, members of the Dolan family, including trusts for members of the Dolan family (collectively, the “Dolan Family Group”), collectively beneficially own 100% of the Company’s outstanding Class B Common Stock and own approximately 3.3% of the Company’s outstanding Class A Common Stock. Such shares of the Company’s Class A Common Stock and Class B Common Stock, collectively, represent approximately 71.0% of the aggregate voting power of the Company’s outstanding common stock. Members of the Dolan Family Group are also the controlling stockholders of Sphere Entertainment, MSG Entertainment and AMC Networks Inc. (“AMC Networks”). The Company was party to the following agreements and/or arrangements with MSG Entertainment as of December 31, 2023: • Arena license agreements, entered into in April 2020 (the “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 and club 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 sales and catering services during Knicks and Rangers home games, (v) shares revenues collected for the sale of venue indoor signage space and sponsorship rights at The Garden that are not specific to our teams, (vi) provides day of game services, and (vii) provides other general services within The Garden; • 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 the teams receive an allocation of sponsorship and signage revenues associated with sponsorship agreements that include the assets of both the Company and MSG Entertainment; • 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 and executive support services, in exchange for service fees and (ii) provides certain services to MSG Entertainment, such as certain communications, legal and ticketing services, in exchange for service fees; • Arrangements pursuant to which the Company provides certain sponsorship, premium hospitality and other business operations services; • The 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; and • Other agreements with MSG Entertainment entered into in connection with the Sphere Distribution, including a trademark license agreement and certain other arrangements. The Company is also party to the following agreements and/or arrangements with Sphere Entertainment (including through its subsidiary MSG Networks) as of December 31, 2023 : • Media rights agreements between the Company and MSG Networks, entered into in July 2015, with stated terms of 20 years providing MSG Networks with local telecast rights for Knicks and Rangers games in exchange for media rights fees; • Arrangements with MSG Networks pursuant to which the Knicks and the Rangers have allocated revenues with MSG Networks related to virtual advertising inventory; • Arrangements pursuant to which the Company provides Sphere Entertainment with certain sponsorship and other business operations services; • Arrangements pursuant to which the Company provides sponsorship rights to Sphere Entertainment; • Other agreements with Sphere Entertainment in connection with the Sphere Distribution, including a distribution agreement, a tax disaffiliation agreement and an employee matters agreement and certain other arrangements; and • Other agreements with MSG Networks entered into in connection with the MSGS Distribution, including an employee matters agreement, agreements related to audio-only distribution rights for Knicks and Rangers games, and certain other arrangements. The Company is also party to arrangements with MSG Entertainment and Sphere Entertainment pursuant to which the three companies have agreed to allocate expenses in connection with the use by each company of aircraft owned or leased by the Company and MSG Entertainment. 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 Sphere Entertainment and, following the MSGE Distribution, with MSG Entertainment as well; (ii) the Company’s Vice Chairman with AMC Networks, Sphere Entertainment and following the MSGE Distribution, with MSG Entertainment as well, and (iii) the Company’s Executive Vice President with Sphere Entertainment and AMC Networks. Additionally, the Company, Sphere Entertainment, AMC Networks, and, following the MSGE Distribution, MSG Entertainment, allocate the costs of certain personal aircraft and helicopter usage by their shared executives. 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 and six months ended December 31, 2023 and 2022: Three Months Ended December 31, Six Months Ended December 31, 2023 2022 2023 2022 Revenues (a) $ 77,658 $ 74,950 $ 86,475 $ 83,124 Operating expenses: Expense pursuant to the Services Agreement $ 9,539 $ 9,817 $ 19,426 $ 19,330 Rent expense pursuant to Sublease agreement with MSG Entertainment 752 723 1,502 1,421 Costs associated with the Sponsorship sales and service representation agreements 5,550 5,726 8,151 8,659 Operating lease expense associated with the Arena License Agreements 24,362 31,617 25,673 32,928 Other costs associated with the Arena License Agreements 12,817 15,097 13,621 16,067 Other operating (credits) expenses, net (707) (62) (1,319) 5 ___________________ (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 | 6 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In general, the Company is required to use an estimated annual effective tax rate to measure the tax benefit or tax expense recognized in an interim period. The estimated annual effective tax rate exceeds the statutory federal tax rate of 21% primarily due to state taxes, nondeductible officers’ compensation, and players’ disability insurance premiums expense. The estimated annual effective tax rate is revised on a quarterly basis. Income tax expense for the three months ended December 31, 2023 of $10,784 reflects an effective tax rate of 43%. Income tax benefit for the six months ended December 31, 2023 of $4,360 reflects an effective tax rate of 49%. Income tax expense for the three and six months ended December 31, 2022 of $24,555 and $4,062, respectively, reflects an effective tax rate of 53% and 55%, respectively. The Company was notified in April 2020 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. The audit was finalized in January 2024 and resulted in no material changes. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 6 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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 Securities and Exchange Commission (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, 2023 (“fiscal year 2023”). 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, which is when the majority of the sports teams’ games are played. Reclassifications Certain reclassifications have been made in order to conform to the current period’s presentation and relate to the separation of Investments and unrealized loss (gain) on equity investments with readily determinable fair value and warrants on the consolidated statements of cash flows for the six months ended December 31, 2022. |
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. For consolidated subsidiaries where the Company’s ownership is less than 100%, the relevant amounts attributable to investors other than the Company are reflected under “Nonredeemable noncontrolling interests,” “Net income (loss) attributable to nonredeemable noncontrolling interests” and “Comprehensive income (loss) attributable to nonredeemable noncontrolling interests” in the accompanying consolidated balance sheets, 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, fair value of investments, deferred tax valuation allowance, tax accruals, and other liabilities. In addition, estimates are used in revenue recognition, revenue sharing expense (net of escrow and excluding playoffs), luxury tax expense, income tax expense, performance and share-based compensation, depreciation and amortization, litigation matters and other matters. Management believes its use of estimates in the Financial Statements to be reasonable. Management evaluates its estimates on an ongoing basis using historical experience and other factors, including the general economic environment and actions it may take in the future. The Company adjusts such estimates when facts and circumstances dictate. However, these estimates may involve significant uncertainties and judgments and cannot be determined with precision. In addition, these estimates are based on management’s best judgment at a point in time and, as such, these estimates may ultimately differ from actual results. Changes in estimates resulting from weakness in the economic environment or other factors beyond the Company’s control could be material and would be reflected in the Company’s financial statements in future periods. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Recently Issued Accounting Pronouncements Not Yet Adopted In March 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-01, Leases (Topic 842): Common Control Arrangements. This ASU amends certain provisions of Accounting Standards Codification (“ASC”) 842, Leases that apply to arrangements between related parties under common control. The new guidance is effective for the Company in the first quarter of fiscal year 2025. The Company is currently evaluating the impact this standard will have on its consolidated financial statements. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The ASU expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the CODM and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. All disclosure requirements under ASU 2023-07 are also required for public entities with a single reportable segment. The ASU is effective for the Company’s Annual Report on Form 10-K for the fiscal year ending June 30, 2025 and subsequent interim periods, with early adoption permitted. The Company is currently evaluating the impact this standard will have on its segment disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The ASU enhances annual disclosures related to the effective income tax rate reconciliation and income taxes paid. The ASU is effective for the Company’s Annual Report on Form 10-K for the fiscal year ending June 30, 2026 and subsequent interim periods, with early adoption permitted. The Company is currently evaluating the impact this standard will have on its income tax disclosures. |
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. |
Equity Method Investments | Equity Method Investments |
Fair Value Measurement | The fair value of the Company’s investments in common stock of Xtract One and other investments held in trust are determined based on quoted market prices in active markets, which are classified within Level I of the fair value hierarchy. |
Valuation of Warrants | The Company’s level III assets consist of warrants entitling the Company to acquire additional common stock of Xtract One. The Company’s warrants are included within Investments in the accompanying consolidated balance sheets. Changes in the fair value of derivative instruments are measured at each reporting date and are recorded within Miscellaneous income (expense), net in the accompanying consolidated statements of operations. The fair value of the Company’s warrants in Xtract One were determined using the Black-Scholes option pricing model. |
Stock Repurchase Program | The ASR was accounted for as a repurchase of shares and as an equity forward contract indexed to the Company’s Class A Common Stock. The equity forward contract was classified as an equity instrument under ASC Subtopic 815-40. The Company has treated the initial and final shares of Class A Common Stock delivered as treasury shares as of the date the shares were physically delivered in computing the weighted average shares of outstanding Class A Common Stock for both basic and diluted earnings per share. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Revenue Recognition [Abstract] | |
Schedule of 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 and six months ended December 31, 2023 and 2022: Three Months Ended Six Months Ended December 31, December 31, 2023 2022 2023 2022 Event-related (a) $ 122,449 $ 142,308 $ 128,270 $ 147,654 Media rights (b) 122,547 118,158 129,766 125,144 Sponsorship, signage and suite licenses 69,316 81,021 74,630 85,835 League distributions and other 12,586 12,207 37,278 19,150 Total revenues from contracts with customers $ 326,898 $ 353,694 $ 369,944 $ 377,783 _________________ (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 television contracts, and (iii) other local radio rights fees. |
Schedule of Contract with Customer, Contract Assets and Liabilities | The following table provides information about contract balances from the Company’s contracts with customers as of December 31, 2023 and June 30, 2023. December 31, June 30, 2023 2023 Receivables from contracts with customers, net (a) $ 65,963 $ 20,134 Contract assets, current (b) 19,134 19,465 Deferred revenue, including non-current portion (c), (d) 259,031 169,717 _________________ (a) Receivables from contracts with customers, net, which are reported in Accounts receivable, net and Net related party receivables in the accompanying consolidated balance sheets, represent the Company’s unconditional rights to consideration under its contracts with customers. As of December 31, 2023 and June 30, 2023, the Company’s receivables reported above incl uded $2,012 and $0 , respectively, related to contracts with customers who are related parties. See Note 16 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 December 31, 2023 and June 30, 2023, the Company had receivable balances related to escrow and player compensation recoveries of $2,197 and $1,544, respectively, reco rded in Accounts receivable, net. (b) Contract assets, current, which are reported as Other current assets in the 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 Company’s deferred revenue related to local media rights was $10,013 and $0 as of December 31, 2023 and June 30, 2023, respectively. See Note 16 for further details on these related party arrangements. (d) |
Schedule of 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 December 31, 2023 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 2024 (remainder) $ 112,924 Fiscal Year 2025 123,978 Fiscal Year 2026 77,120 Fiscal Year 2027 38,711 Fiscal Year 2028 19,697 Thereafter 16,936 $ 389,366 |
Computation of Earnings (Loss_2
Computation of Earnings (Loss) per Common Share (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Reconciliation of Earnings (Loss) Allocated to Common Shares and Weighted-Average Shares | The following table presents a reconciliation of earnings (loss) allocated to common shares and 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 Six Months Ended December 31, December 31, 2023 2022 2023 2022 Net earnings (loss) allocable to common shares, basic and diluted (numerator): Net income (loss) attributable to Madison Square Garden Sports Corp.’s stockholders $ 14,224 $ 22,491 $ (4,597) $ 4,671 Less: Dividends to other-than-common stockholders (a) (1) 2,056 5 2,056 Net earnings (loss) allocable to common shares, basic and diluted (numerator): $ 14,225 $ 20,435 $ (4,602) $ 2,615 Weighted-average shares (denominator): Weighted-average shares for basic EPS 24,017 24,130 23,994 24,213 Dilutive effect of shares issuable under share-based compensation plans 48 59 — 93 Weighted-average shares for diluted EPS 24,065 24,189 23,994 24,306 Weighted-average shares excluded from diluted EPS — — 71 — Basic earnings (loss) per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ 0.59 $ 0.85 $ (0.19) $ 0.11 Diluted earnings (loss) per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ 0.59 $ 0.84 $ (0.19) $ 0.11 _________________ (a) Dividends to other-than-common stockholders consists of forfeitable rights to dividends declared and payable to holders of the Company’s unvested restricted stock units and performance restricted stock units. |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
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 December 31, June 30, December 31, June 30, Captions on the consolidated balance sheets: Cash and cash equivalents $ 37,880 $ 40,398 $ 43,912 $ 91,018 Restricted cash (a) 3,352 61 1,246 — Cash, cash equivalents and restricted cash on the consolidated statements of cash flows $ 41,232 $ 40,459 $ 45,158 $ 91,018 _________________ (a) Restricted cash as of December 31, 2023, June 30, 2023 and December 31, 2022 included cash deposited in an escrow account (see Note 2 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2023 for more information). |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information | The following table summarizes the right-of-use assets and lease liabilities recorded in the accompanying consolidated balance sheets as of December 31, 2023 and June 30, 2023: Line Item in the Company’s Consolidated Balance Sheet December 31, June 30, Right-of-use assets: Operating leases Right-of-use lease assets $ 706,569 $ 715,283 Lease liabilities: Operating leases, current (a) Operating lease liabilities, current $ 50,683 $ 49,745 Operating leases, noncurrent (a) Operating lease liabilities, noncurrent 741,003 746,437 Total lease liabilities $ 791,686 $ 796,182 _________________ (a) As of December 31, 2023, Operating lease liabilities, current and Operating lease liabilities, noncurrent included balances o f $44,104 and $704,361, r espectively, that are payable to MSG Entertainment. As of June 30, 2023, Operating lease liabilities, current and Operating lease liabilities, noncurrent included balances of $43,700 and $707,124, respectively, that are payable to MSG Entertainment. |
Schedule of Supplemental Income Statement Information | The following table summarizes the activity recorded within the accompanying consolidated statements of operations for the three and six months ended December 31, 2023 and 2022: Line Item in the Company’s Consolidated Statement of Operations Three Months Ended December 31, Six Months Ended December 31, 2023 2022 2023 2022 Operating lease cost Direct operating expenses $ 24,362 $ 31,811 $ 25,673 $ 33,214 Operating lease cost Selling, general and administrative expenses 2,320 613 4,640 1,226 Short-term lease cost Direct operating expenses — 70 — 115 Total lease cost $ 26,682 $ 32,494 $ 30,313 $ 34,555 |
Schedule of Lease Maturity | Maturities of operating lease liabilities as of December 31, 2023 are as follows: Fiscal Year 2024 (remainder) $ 26,047 Fiscal Year 2025 51,681 Fiscal Year 2026 52,155 Fiscal Year 2027 53,516 Fiscal Year 2028 54,919 Thereafter 2,041,609 Total lease payments 2,279,927 Less imputed interest (1,488,241) Total lease liabilities $ 791,686 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Indefinite-Lived Intangible Assets | The Company’s indefinite-lived intangible assets as of December 31, 2023 and June 30, 2023 are as follows: Sports franchises $ 102,564 Photographic related rights 1,080 $ 103,644 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Investments | The Company’s investments in nonconsolidated affiliates which are accounted for under the equity method of accounting, equity investments with readily determinable fair values, equity investments without readily determinable fair values, and derivative instruments, which are reported within Investments in the accompanying consolidated balance sheets, consisted of the following: December 31, June 30, Equity method investments: NRG $ 11,091 $ 11,948 Other equity method investments 2,000 — Equity investments with readily determinable fair values: Xtract One Technologies Inc. (“Xtract One”) common stock 17,616 22,408 Other equity investments with readily determinable fair values held in trust under the Company’s Executive Deferred Compensation Plan 16,842 14,406 Equity investments without readily determinable fair values (a) 5,761 5,514 Derivative instruments: Xtract One warrants 8,802 13,098 Total investments $ 62,112 $ 67,374 _________________ (a) |
Schedule of Debt Securities, Trading, and Equity Securities, FV-NI | The cost basis and carrying value of equity investments with readily determinable fair values are as follows: December 31, 2023 June 30, 2023 Cost Basis Carrying Value/Fair Value Cost Basis Carrying Value/Fair Value Xtract One common stock $ 6,783 $ 17,616 $ 6,783 $ 22,408 Other equity investments with readily determinable fair values 15,518 16,842 13,772 14,406 $ 22,301 $ 34,458 $ 20,555 $ 36,814 The following table summarizes the realized and unrealized gains (losses) on equity investments with readily determinable fair values, recorded within Miscellaneous income (expense), net within the Company’s consolidated statement of operations, for the three and six months ended December 31, 2023 and 2022. Three Months Ended December 31, Six Months Ended December 31, 2023 2022 2023 2022 Unrealized gain (loss) - Xtract One common stock $ 1,761 $ — $ (4,792) $ — Unrealized gain - other equity investments with readily determinable fair values 821 449 691 346 Realized gain - other equity investments with readily determinable fair values 18 — 44 — $ 2,600 $ 449 $ (4,057) $ 346 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets Measured on a Recurring Basis | The following table presents the Company’s assets that are measured at fair value on a recurring basis, which include cash equivalents: Fair Value Hierarchy December 31, June 30, Assets: Money market accounts I $ 36,842 $ 17,330 Time deposit I 353 1,457 Equity investments I 34,458 36,814 Warrants III 8,802 13,098 Total assets measured at fair value $ 80,455 $ 68,699 |
Schedule of Fair Value Measurement Inputs and Valuation Techniques | The following are key assumptions used to calculate the fair value of the warrants as of December 31, 2023 and June 30, 2023: December 31, June 30, Expected term 2.09 years 2.34 years Expected volatility 75.87 % 74.43 % Risk-free interest rate 4.23 % 4.68 % |
Schedule of Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table presents additional information about our assets for which we utilize Level III inputs to determine fair value: Three Months Ended Six Months Ended December 31, 2023 December 31, 2023 Balance at beginning of period $ 7,680 $ 13,098 Unrealized gain (loss) on warrants 1,122 (4,296) Balance at end of period $ 8,802 $ 8,802 |
Schedule of Financial Instruments | The carrying value and fair value of the Company’s debt reported in the accompanying consolidated balance sheets are as follows: December 31, 2023 June 30, 2023 Carrying Fair Carrying Fair Liabilities Debt, current (a) $ 30,000 $ 30,000 $ 30,000 $ 30,000 Long-term debt (b) $ 330,000 $ 330,000 $ 295,000 $ 295,000 _________________ (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 based on valuation of similar securities. See Note 12 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 12 for further details. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
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 in the accompanying consolidated balance sheets: December 31, June 30, Other current assets $ 1,145 $ 1,145 Other assets 2,237 2,810 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
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 Pension Plans included in the accompanying consolidated statements of operations for the three and six months ended December 31, 2023 and 2022. Components of net periodic benefit cost are reported in Miscellaneous income (expense), net. Three Months Ended Six Months Ended December 31, December 31, 2023 2022 2023 2022 Interest cost $ 68 $ 60 $ 136 $ 120 Recognized actuarial loss 9 4 18 8 Net periodic benefit cost $ 77 $ 64 $ 154 $ 128 |
Schedule of Deferred Compensation Plan | The following table summarizes amounts recognized related to the Deferred Compensation Plan in the consolidated balance sheets: December 31, June 30, Non-current assets (included in investments) $ 16,842 $ 14,406 Current liabilities (included in accrued employee related costs) (476) (1,358) Non-current liabilities (included in other employee related costs) (16,366) (13,048) |
Share-based Compensation (Table
Share-based Compensation (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of RSU and PSU 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 current and former employees of the Company and non-employee directors, for the six months ended December 31, 2023: Number of Weighted-Average Fair Value Per Share at Date of Grant (a) Nonperformance Performance Unvested award balance, June 30, 2023 124 160 $ 167.08 Granted 63 48 $ 177.39 Vested (57) (52) $ 162.69 Forfeited / Cancelled (3) (3) $ 176.52 Unvested award balance, December 31, 2023 127 153 $ 172.64 _____________________ (a) Weighted-average fair value per share at date of grant does not reflect any adjustments to awards granted prior to the Sphere Distribution. |
Schedule of Stock Option Activity | The following table summarizes activity related to the Company’s stock options for the six months ended December 31, 2023: Number of Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value Balance as of June 30, 2023 94 $ 138.78 Granted — $ — Cancelled — $ — Balance as of December 31, 2023 94 $ 138.78 3.96 $ 4,039 Exercisable as of December 31, 2023 94 $ 138.78 3.96 $ 4,039 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
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 and six months ended December 31, 2023 and 2022: Three Months Ended December 31, Six Months Ended December 31, 2023 2022 2023 2022 Revenues (a) $ 77,658 $ 74,950 $ 86,475 $ 83,124 Operating expenses: Expense pursuant to the Services Agreement $ 9,539 $ 9,817 $ 19,426 $ 19,330 Rent expense pursuant to Sublease agreement with MSG Entertainment 752 723 1,502 1,421 Costs associated with the Sponsorship sales and service representation agreements 5,550 5,726 8,151 8,659 Operating lease expense associated with the Arena License Agreements 24,362 31,617 25,673 32,928 Other costs associated with the Arena License Agreements 12,817 15,097 13,621 16,067 Other operating (credits) expenses, net (707) (62) (1,319) 5 ___________________ (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) | 6 Months Ended | |
Dec. 31, 2023 segment team | Apr. 20, 2020 | |
Noncontrolling Interest [Line Items] | ||
Number of development league teams | team | 2 | |
Number of operating segments | 1 | |
Number of reportable segments | 1 | |
Madison Square Garden Entertainment Corp | Related Party | ||
Noncontrolling Interest [Line Items] | ||
Common stock issued percentage | 67% | |
Common stock outstanding percentage | 67% |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | ||
Disaggregation of Revenue [Line Items] | |||||
Total revenues from contracts with customers | $ 326,898 | $ 353,694 | $ 369,944 | $ 377,783 | |
Event-related | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues from contracts with customers | [1] | 122,449 | 142,308 | 128,270 | 147,654 |
Media rights | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues from contracts with customers | [2] | 122,547 | 118,158 | 129,766 | 125,144 |
Sponsorship, signage and suite licenses | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues from contracts with customers | 69,316 | 81,021 | 74,630 | 85,835 | |
League distributions and other | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues from contracts with customers | $ 12,586 | $ 12,207 | $ 37,278 | $ 19,150 | |
[1] Consists of (i) ticket sales and other ticket-related revenues, and (ii) food, beverage and merchandise sales at The Garden. Consists of (i) local media rights fees, (ii) revenue from the distribution through league-wide national television contracts, and (iii) other local radio rights fees. |
Revenue Recognition - Contract
Revenue Recognition - Contract Balances (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Dec. 31, 2023 | Jun. 30, 2023 | ||
Contract Assets and Liabilities [Line Items] | |||
Contract with customer, deferred revenue, revenue recognized | $ 77,945 | ||
Receivables from contracts with customers, net | |||
Contract Assets and Liabilities [Line Items] | |||
Contracts with customers, assets, net | [1] | 65,963 | $ 20,134 |
Contract assets, current | |||
Contract Assets and Liabilities [Line Items] | |||
Contracts with customers, assets, net | [2] | 19,134 | 19,465 |
Net related party receivables | Related Party | |||
Contract Assets and Liabilities [Line Items] | |||
Contracts with customers, assets, net | 2,012 | 0 | |
Accounts receivable, net | |||
Contract Assets and Liabilities [Line Items] | |||
Escrow and player compensation recoveries | 2,197 | 1,544 | |
Deferred Revenue | |||
Contract Assets and Liabilities [Line Items] | |||
Deferred revenue, including non-current portion | [3],[4] | 259,031 | 169,717 |
Deferred Revenue | Related Party | Local media rights | |||
Contract Assets and Liabilities [Line Items] | |||
Deferred revenue, including non-current portion | $ 10,013 | $ 0 | |
[1] Receivables from contracts with customers, net, which are reported in Accounts receivable, net and Net related party receivables in the accompanying consolidated balance sheets, represent the Company’s unconditional rights to consideration under its contracts with customers. As of December 31, 2023 and June 30, 2023, the Company’s receivables reported above incl uded $2,012 and $0 , respectively, related to contracts with customers who are related parties. See Note 16 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 December 31, 2023 and June 30, 2023, the Company had receivable balances related to escrow and player compensation recoveries of $2,197 and $1,544, respectively, reco rded in Accounts receivable, net. Contract assets, current, which are reported as Other current assets in the 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. 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 Company’s deferred revenue related to local media rights was $10,013 and $0 as of December 31, 2023 and June 30, 2023, respectively. See Note 16 for further details on these related party arrangements. |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligation (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 389,366 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 112,924 |
Remaining performance obligation period | 6 months |
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 | $ 123,978 |
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 | $ 77,120 |
Remaining performance obligation period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 38,711 |
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 | $ 19,697 |
Remaining performance obligation period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 16,936 |
Remaining performance obligation period | 1 year |
Computation of Earnings (Loss_3
Computation of Earnings (Loss) per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | ||
Net earnings (loss) allocable to common shares, basic and diluted (numerator): | |||||
Net income (loss) attributable to Madison Square Garden Sports Corp.’s stockholders | $ 14,224 | $ 22,491 | $ (4,597) | $ 4,671 | |
Less: Dividends to other-than-common stockholders | [1] | (1) | 2,056 | 5 | 2,056 |
Net earnings (loss) allocable to common shares, basic and diluted (numerator): | $ 14,225 | $ 20,435 | $ (4,602) | $ 2,615 | |
Weighted-average shares (denominator): | |||||
Weighted-average shares for basic EPS (in shares) | 24,017 | 24,130 | 23,994 | 24,213 | |
Dilutive effect of shares issuable under share-based compensation plans (in shares) | 48 | 59 | 0 | 93 | |
Weighted-average shares for diluted EPS (in shares) | 24,065 | 24,189 | 23,994 | 24,306 | |
Weighted-average shares excluded from diluted EPS (in shares) | 0 | 0 | 71 | 0 | |
Basic earnings (loss) per common share attributable to Madison Square Garden Sports Corp.’s stockholders (in USD per share) | $ 0.59 | $ 0.85 | $ (0.19) | $ 0.11 | |
Diluted earnings (loss) per common share attributable to Madison Square Garden Sports Corp.’s stockholders (in USD per share) | $ 0.59 | $ 0.84 | $ (0.19) | $ 0.11 | |
[1] Dividends to other-than-common stockholders consists of forfeitable rights to dividends declared and payable to holders of the Company’s unvested restricted stock units and performance restricted stock units. |
Team Personnel Transactions (De
Team Personnel Transactions (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Team Personnel Transactions [Abstract] | ||||
Team personnel transaction expense (credit) | $ 0 | $ 29,000 | $ 0 | $ (300,000) |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract] | |||||
Cash and cash equivalents | $ 37,880 | $ 40,398 | $ 43,912 | $ 91,018 | |
Restricted cash | [1] | 3,352 | 61 | 1,246 | 0 |
Cash, cash equivalents and restricted cash on the consolidated statements of cash flows | $ 41,232 | $ 40,459 | $ 45,158 | $ 91,018 | |
[1] Restricted cash as of December 31, 2023, June 30, 2023 and December 31, 2022 included cash deposited in an escrow account (see Note 2 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2023 for more information). |
Leases - Lease Term (Details)
Leases - Lease Term (Details) | Dec. 31, 2023 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 10 months |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 32 years |
Leases - Assets and Liabilities
Leases - Assets and Liabilities Recognized (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 | |
Lessee, Lease, Description [Line Items] | |||
Right-of-use lease assets | $ 706,569 | $ 715,283 | |
Operating lease liabilities, current | [1] | 50,683 | 49,745 |
Operating lease liabilities, noncurrent | [1] | 741,003 | 746,437 |
Total lease liabilities | 791,686 | 796,182 | |
MSG Entertainment | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease liabilities, current | 44,104 | 43,700 | |
Operating lease liabilities, noncurrent | $ 704,361 | $ 707,124 | |
[1] As of December 31, 2023, Operating lease liabilities, current and Operating lease liabilities, noncurrent included balances o f $44,104 and $704,361, r espectively, that are payable to MSG Entertainment. As of June 30, 2023, Operating lease liabilities, current and Operating lease liabilities, noncurrent included balances of $43,700 and $707,124, respectively, that are payable to MSG Entertainment. |
Leases - Costs Incurred in the
Leases - Costs Incurred in the Period (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Lessee, Lease, Description [Line Items] | ||||
Total lease cost | $ 26,682 | $ 32,494 | $ 30,313 | $ 34,555 |
Direct operating expenses | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease cost | 24,362 | 31,811 | 25,673 | 33,214 |
Short-term lease cost | 0 | 70 | 0 | 115 |
Selling, general and administrative expenses | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease cost | $ 2,320 | $ 613 | $ 4,640 | $ 1,226 |
Leases - Supplemental Informati
Leases - Supplemental Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Operating lease payments | $ 26,095 | $ 22,526 |
Operating lease, weighted average remaining term | 30 years 2 months 12 days | |
Operating lease, weighted average discount rate (as a percent) | 7.10% |
Leases - Remaining Liabilities
Leases - Remaining Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Leases [Abstract] | ||
Fiscal Year 2024 (remainder) | $ 26,047 | |
Fiscal Year 2025 | 51,681 | |
Fiscal Year 2026 | 52,155 | |
Fiscal Year 2027 | 53,516 | |
Fiscal Year 2028 | 54,919 | |
Thereafter | 2,041,609 | |
Total lease payments | 2,279,927 | |
Less imputed interest | (1,488,241) | |
Total lease liabilities | $ 791,686 | $ 796,182 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Dec. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||
Goodwill impairment | $ 0 | |||||
Goodwill | $ 226,523,000 | $ 226,523,000 | $ 226,523,000 | |||
Impairment of indefinite-lived intangible assets | $ 0 | |||||
Amortization of intangible assets | $ 0 | $ 30,000 | $ 0 | $ 138,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Indefinite-lived Intangible Assets by Major Class [Line Items] | ||
Indefinite-lived intangible assets | $ 103,644 | $ 103,644 |
Sports franchises | ||
Indefinite-lived Intangible Assets by Major Class [Line Items] | ||
Indefinite-lived intangible assets | 102,564 | 102,564 |
Photographic related rights | ||
Indefinite-lived Intangible Assets by Major Class [Line Items] | ||
Indefinite-lived intangible assets | $ 1,080 | $ 1,080 |
Investments - Schedule of Equit
Investments - Schedule of Equity Method Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 | |
Schedule of Equity Method Investments [Line Items] | |||
Equity investments with readily determinable fair values: | $ 34,458 | $ 36,814 | |
Equity investments without readily determinable fair values | [1] | 5,761 | 5,514 |
Xtract one warrants, warrants and rights outstanding | 8,802 | 13,098 | |
Total investments | 62,112 | 67,374 | |
NRG | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments: | 11,091 | 11,948 | |
Other equity method investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments: | 2,000 | 0 | |
Xtract One Technologies Inc. (“Xtract One”) common stock | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity investments with readily determinable fair values: | 17,616 | 22,408 | |
Other equity investments with readily determinable fair values held in trust under the Company’s Executive Deferred Compensation Plan | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity investments with readily determinable fair values: | $ 16,842 | $ 14,406 | |
[1]For the three and six months ended December 31, 2023 and 2022, the Company did not record any impairment charges or changes in carrying value of its equity securities without readily determinable fair values in the accompanying consolidated statements of operations. |
Investments - Narrative (Detail
Investments - Narrative (Details) - NRG - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2023 | Jun. 30, 2023 | Apr. 30, 2023 | |
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 25% | 25% | 25% | 25% |
Loss from equity method investments | $ 442 | $ 857 |
Investments - Cost Basis and Ca
Investments - Cost Basis and Carrying Value of Equity Investments with Readily Determinable Fair Values (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Schedule of Equity Method Investments [Line Items] | ||
Cost Basis | $ 22,301 | $ 20,555 |
Carrying Value/Fair Value | 34,458 | 36,814 |
Xtract One Technologies Inc. (“Xtract One”) common stock | ||
Schedule of Equity Method Investments [Line Items] | ||
Cost Basis | 6,783 | 6,783 |
Carrying Value/Fair Value | 17,616 | 22,408 |
Other equity investments with readily determinable fair values held in trust under the Company’s Executive Deferred Compensation Plan | ||
Schedule of Equity Method Investments [Line Items] | ||
Cost Basis | 15,518 | 13,772 |
Carrying Value/Fair Value | $ 16,842 | $ 14,406 |
Investments - Realized and Unre
Investments - Realized and Unrealized Gains on Equity Investments with Readily Determinable Fair Values (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Equity Method Investments [Line Items] | ||||
Gain (loss) | $ 2,600 | $ 449 | $ (4,057) | $ 346 |
Xtract One Technologies Inc. (“Xtract One”) common stock | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Unrealized gain (loss) | 1,761 | 0 | (4,792) | 0 |
Other equity investments with readily determinable fair values held in trust under the Company’s Executive Deferred Compensation Plan | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Unrealized gain (loss) | 821 | 449 | 691 | 346 |
Realized gain (loss) | $ 18 | $ 0 | $ 44 | $ 0 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | $ 80,455 | $ 68,699 |
Level I | Money market accounts | ||
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 36,842 | 17,330 |
Level I | Time deposit | ||
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 353 | 1,457 |
Level I | Equity investments | ||
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 34,458 | 36,814 |
Level 3 | Warrants | ||
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | $ 8,802 | $ 13,098 |
Fair Value Measurements - Valua
Fair Value Measurements - Valuation Inputs (Details) - Level 3 | Dec. 31, 2023 | Jun. 30, 2023 |
Expected term | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants and rights outstanding term | 2 years 1 month 2 days | 2 years 4 months 2 days |
Expected volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants and rights outstanding, measurement input | 0.7587 | 0.7443 |
Risk-free interest rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants and rights outstanding, measurement input | 0.0423 | 0.0468 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information About Level 3 Inputs (Details) - Warrants - Level 3 - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Dec. 31, 2023 | Dec. 31, 2023 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | $ 7,680 | $ 13,098 |
Unrealized gain (loss) on warrants | 1,122 | (4,296) |
Balance at end of period | $ 8,802 | $ 8,802 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 | |
Carrying Value | |||
Schedule Of Financial Instruments [Line Items] | |||
Debt, current | [1] | $ 30,000 | $ 30,000 |
Long-term debt | [2] | 330,000 | 295,000 |
Fair Value | |||
Schedule Of Financial Instruments [Line Items] | |||
Debt, current | [1] | 30,000 | 30,000 |
Long-term debt | [2] | $ 330,000 | $ 295,000 |
[1] 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 based on valuation of similar securities. See Note 12 for further details. |
Debt - Knicks and Rangers Credi
Debt - Knicks and Rangers Credit Facilities (Details) - Secured Debt | 6 Months Ended | |||
Jan. 25, 2017 USD ($) | Sep. 30, 2016 USD ($) | Dec. 31, 2023 USD ($) fiscal_quarter | Dec. 14, 2021 USD ($) | |
Knicks Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Proceeds from debt | $ 40,000,000 | |||
Line of credit facility amount outstanding | $ 275,000,000 | |||
Effective interest rate | 6.71% | |||
Interest payments | $ 9,073,000 | |||
Rangers Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Proceeds from debt | 35,000,000 | |||
Annual principal payment | 40,000,000 | |||
Line of credit facility amount outstanding | $ 55,000,000 | |||
Effective interest rate | 7.21% | |||
Interest payments | $ 2,815,000 | |||
Knicks | 2016 Knicks Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 200,000,000 | |||
Debt instrument, term | 5 years | |||
Knicks | Knicks Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 275,000,000 | |||
Debt instrument collateral | All obligations under the Knicks Revolving Credit Facility are secured by a first lien security interest in certain of Knicks LLC’s assets, including, but not limited to, (i) the Knicks LLC’s membership rights in the NBA, (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. | |||
Subjective acceleration clause | Knicks LLC is required to make mandatory prepayments in certain circumstances, including without limitation if the maximum available amount under the Knicks Revolving Credit Facility is greater than 350% of qualified revenues. | |||
Debt instrument, covenant, mandatory prepayment clause, threshold of qualified revenues | 350% | |||
Restrictive covenants | The Knicks Revolving Credit Facility contains certain restrictions on the ability of Knicks LLC to take certain actions as provided in (and subject to various exceptions and baskets set forth in) the Knicks Revolving Credit Facility, including the following: (i) incurring additional indebtedness and contingent liabilities; (ii) creating liens on certain assets; (iii) making restricted payments during the continuance of an event of default under the Knicks Revolving Credit Facility; (iv) engaging in sale and leaseback transactions; (v) merging or consolidating; and (vi) taking certain actions that would invalidate the secured lenders’ liens on any Knicks LLC’s collateral. | |||
Debt service ratio | 1.5 | |||
Debt service ratio, terms, number of trailing quarters | fiscal_quarter | 4 | |||
Covenant compliance | Knicks LLC was in compliance with this financial covenant. | |||
Knicks | Secured Overnight Financing Rate (SOFR) | Knicks Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Credit spread adjustment | 0.10% | |||
Knicks | Minimum | Knicks Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Commitment fee percentage | 0.25% | |||
Knicks | Minimum | Base Rate | Knicks Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 0.25% | |||
Knicks | Minimum | Secured Overnight Financing Rate (SOFR) | Knicks Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.25% | |||
Knicks | Maximum | Knicks Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Commitment fee percentage | 0.30% | |||
Knicks | Maximum | Base Rate | Knicks Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 0.50% | |||
Knicks | Maximum | Secured Overnight Financing Rate (SOFR) | Knicks Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.50% | |||
Rangers | 2017 Rangers Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 150,000,000 | |||
Debt instrument, term | 5 years | |||
Rangers | Rangers Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 250,000,000 | |||
Debt instrument collateral | All obligations under the Rangers Revolving Credit Facility are, subject to the 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. | |||
Subjective acceleration clause | Rangers LLC is required to make mandatory prepayments in certain circumstances, including without limitation if qualified revenues are less than 17% of the maximum available amount under the Rangers Revolving Credit Facility. | |||
Restrictive covenants | The Rangers Revolving Credit Facility contains certain restrictions on the ability of Rangers LLC to take certain actions as provided in (and subject to various exceptions and baskets set forth in) the Rangers Revolving Credit Facility, including the following: (i) incurring additional indebtedness and contingent liabilities; (ii) creating liens on certain assets; (iii) making restricted payments during the continuance of an event of default under the Rangers Revolving Credit Facility; (iv) engaging in sale and leaseback transactions; (v) merging or consolidating; and (vi) taking certain actions that would invalidate the secured lenders’ liens on any of Rangers LLC’s assets securing the obligations under the Rangers Revolving Credit Facility. | |||
Debt service ratio | 1.5 | |||
Debt service ratio, terms, number of trailing quarters | fiscal_quarter | 4 | |||
Rangers | Secured Overnight Financing Rate (SOFR) | Rangers Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Credit spread adjustment | 0.10% | |||
Rangers | Minimum | Rangers Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Commitment fee percentage | 0.375% | |||
Rangers | Minimum | Base Rate | Rangers Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 0.50% | |||
Rangers | Minimum | Secured Overnight Financing Rate (SOFR) | Rangers Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.50% | |||
Rangers | Maximum | 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 | Maximum | Base Rate | Rangers Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1% | |||
Rangers | Maximum | Secured Overnight Financing Rate (SOFR) | Rangers Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 2% |
Debt - Rangers Advance Agreemen
Debt - Rangers Advance Agreement (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Dec. 31, 2023 | Jun. 30, 2023 | Mar. 19, 2021 | |
Debt [Line Items] | |||
Debt | $ 30,000 | $ 30,000 | |
Secured Debt | Rangers | 2021 Rangers NHL Advance | |||
Debt [Line Items] | |||
Maximum capacity | $ 30,000 | ||
Fixed interest rate | 3% | ||
Short-term debt, terms | Advances received under the Rangers NHL Advance Agreement are payable upon demand by the NHL. | ||
Debt | $ 30,000 | ||
Interest payments | $ 675 |
Debt - Other Deferred Financing
Debt - Other Deferred Financing Costs (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
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 | $ 2,237 | $ 2,810 |
Benefit Plans - Schedule of Net
Benefit Plans - Schedule of Net Periodic Benefit Cost (Details) - Pension Plan - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | $ 68 | $ 60 | $ 136 | $ 120 |
Recognized actuarial loss | 9 | 4 | 18 | 8 |
Net periodic benefit cost | $ 77 | $ 64 | $ 154 | $ 128 |
Benefit Plans - Narrative (Deta
Benefit Plans - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Deferred compensation arrangement with individual, compensation credits | $ 839 | $ 449 | $ 735 | $ 346 |
Gains (losses) recorded for the remeasurement of fair value of assets under the deferred compensation plan | 839 | 449 | 735 | 346 |
Savings Plans | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Savings plan expense | $ 1,314 | $ 1,072 | $ 2,608 | $ 2,137 |
Benefit Plans - Executive Defer
Benefit Plans - Executive Deferred Compensation Plan (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Retirement Benefits [Abstract] | ||
Non-current assets (included in investments) | $ 16,842 | $ 14,406 |
Current liabilities (included in accrued employee related costs) | (476) | (1,358) |
Non-current liabilities (included in other employee related costs) | $ (16,366) | $ (13,048) |
Share-based Compensation - Narr
Share-based Compensation - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||||
Share-based compensation expense | $ 6,570,000 | $ 11,619,000 | $ 10,719,000 | $ 18,839,000 |
Share-based compensation capitalized in property and equipment | $ 0 | $ 0 | $ 0 | $ 0 |
Share-based Compensation - Rest
Share-based Compensation - Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs) - $ / shares shares in Thousands | 6 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Beginning balance (USD per share) | [1] | $ 167.08 | ||
Granted (USD per share) | 177.39 | [1] | $ 161.41 | |
Vested (USD per share) | [1] | 162.69 | ||
Forfeited / Cancelled (USD per share) | [1] | 176.52 | ||
Ending balance (USD per share) | [1] | $ 172.64 | ||
Nonperformance Based Vesting RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Beginning balance (in shares) | 124 | |||
Granted (in shares) | 63 | |||
Vested (in shares) | (57) | |||
Forfeited / Cancelled (in shares) | (3) | |||
Ending balance (in shares) | 127 | |||
Performance Based Vesting RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Beginning balance (in shares) | 160 | |||
Granted (in shares) | 48 | |||
Vested (in shares) | (52) | |||
Forfeited / Cancelled (in shares) | (3) | |||
Ending balance (in shares) | 153 | |||
[1] Weighted-average fair value per share at date of grant does not reflect any adjustments to awards granted prior to the Sphere Distribution. |
Share-based Compensation - Re_2
Share-based Compensation - Restricted Stock Units Activity Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Payment for tax withholding | $ 8,084 | $ 15,440 | |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Instruments vested in period | $ 19,195 | $ 34,233 | |
Shares withheld for tax withholding obligation, value (shares) | 46 | ||
Payment for tax withholding | $ 8,084 | ||
Granted (USD per share) | $ 177.39 | [1] | $ 161.41 |
Restricted Stock Units (RSUs) | Related Party | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Payment for tax withholding | $ 4 | ||
[1] Weighted-average fair value per share at date of grant does not reflect any adjustments to awards granted prior to the Sphere Distribution. |
Share-based Compensation - Stoc
Share-based Compensation - Stock Options Activity (Details) - Time Vesting Options $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended |
Dec. 31, 2023 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Beginning balance (in shares) | shares | 94 |
Granted (in shares) | shares | 0 |
Cancelled (in shares) | shares | 0 |
Ending balance (in shares) | shares | 94 |
Exercisable (in shares) | shares | 94 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Beginning balance (USD per share) | $ / shares | $ 138.78 |
Granted (USD per share) | $ / shares | 0 |
Cancelled (USD per share) | $ / shares | 0 |
Ending balance (USD per share) | $ / shares | 138.78 |
Exercisable (USD per share) | $ / shares | $ 138.78 |
Weighted average remaining contractual term | 3 years 11 months 15 days |
Exercisable, weighted-average remaining contractual term | 3 years 11 months 15 days |
Aggregate intrinsic value | $ | $ 4,039 |
Exercisable, aggregate intrinsic value | $ | $ 4,039 |
Stock Repurchase Program (Detai
Stock Repurchase Program (Details) - USD ($) | 6 Months Ended | |||||
Nov. 01, 2022 | Dec. 31, 2023 | Jan. 31, 2023 | Oct. 28, 2022 | Oct. 06, 2022 | Oct. 01, 2015 | |
Class of Stock [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 525,000,000 | |||||
Accelerated share repurchase program, authorized amount | $ 75,000,000 | |||||
Repurchases of common stock (in shares) | 0 | |||||
Stock repurchase program, remaining authorized amount | $ 184,639,000 | |||||
Class A Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Accelerated share repurchase program, authorized (in shares) | 388,777 | |||||
Accelerated share repurchase program, percentage of shares expected to repurchase | 80% | |||||
Accelerated share repurchase program (in USD per share) | $ 154.33 | |||||
Accelerated share repurchase program, additional shares authorized (in shares) | 67,681 | |||||
Accelerated share repurchase program average purchase price (in USD per share) | $ 164.31 | |||||
Accelerated Share Repurchase Program With JPMorgan Chase Bank, National Association | ||||||
Class of Stock [Line Items] | ||||||
Accelerated share repurchase program, authorized amount | $ 75,000,000 | |||||
Payments for repurchase of common stock | $ 75,000,000 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) | 6 Months Ended |
Dec. 31, 2023 | |
Related Party Transaction [Line Items] | |
Aggregate voting power held by related party (as a percent) | 71% |
Arena License Agreements | MSG Entertainment | |
Related Party Transaction [Line Items] | |
License agreement term | 35 years |
Related party transaction, percentage of net profits from sales and catering services (as a percent) | 50% |
Sponsorship Sales And Service Representation Agreements | MSG Entertainment | |
Related Party Transaction [Line Items] | |
License agreement term | 10 years |
Media rights | MSG Networks | |
Related Party Transaction [Line Items] | |
License agreement term | 20 years |
Class B Common Stock | |
Related Party Transaction [Line Items] | |
Percentage of common stock owned by related party (as a percent) | 100% |
Class A Common Stock | |
Related Party Transaction [Line Items] | |
Percentage of common stock owned by related party (as a percent) | 3.30% |
Related Party Transactions - Tr
Related Party Transactions - Transactions by Type Table (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | ||
Related Party Transaction [Line Items] | |||||
Revenues | $ 326,898 | $ 353,694 | $ 369,944 | $ 377,783 | |
Other operating (credits) expenses, net | (707) | (62) | (1,319) | 5 | |
MSG Entertainment | |||||
Related Party Transaction [Line Items] | |||||
Revenues | [1] | 77,658 | 74,950 | 86,475 | 83,124 |
Expense pursuant to the Services Agreement | 9,539 | 9,817 | 19,426 | 19,330 | |
Rent expense pursuant to Sublease agreement with MSG Entertainment | 752 | 723 | 1,502 | 1,421 | |
Costs associated with the Sponsorship sales and service representation agreements | 5,550 | 5,726 | 8,151 | 8,659 | |
Operating lease expense associated with the Arena License Agreements | 24,362 | 31,617 | 25,673 | 32,928 | |
Other costs associated with the Arena License Agreements | $ 12,817 | $ 15,097 | $ 13,621 | $ 16,067 | |
[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 - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Federal statutory income tax rate (as a percent) | 21% | 21% | ||
Income tax expense (benefit) | $ 10,784 | $ 24,555 | $ (4,360) | $ 4,062 |
Effective income tax rate (as a percent) | 43% | 53% | 49% | 55% |
Income taxes paid | $ 14,259 |