Cover
Cover - shares | 6 Months Ended | |
Dec. 31, 2020 | Jan. 29, 2021 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-39245 | |
Entity Registrant Name | MADISON SQUARE GARDEN ENTERTAINMENT CORP. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 84-3755666 | |
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 | 465-6000 | |
Title of 12(b) Security | Class A Common Stock | |
Trading Symbol | MSGE | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Ex Transition Period | true | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Shell Company | false | |
Entity Central Index Key | 0001795250 | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Class A [Member] | ||
Entity Common Stock, Shares Outstanding | 19,618,324 | |
Common Class B [Member] | ||
Entity Common Stock, Shares Outstanding | 4,529,517 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 | |
Current Assets: | |||
Cash and cash equivalents | $ 1,451,352 | $ 906,555 | |
Restricted cash | [1] | 26,207 | 17,749 |
Short-term investments | 0 | 337,192 | |
Accounts receivable, net | 73,711 | 57,184 | |
Net related party receivables | 31,170 | 23,062 | |
Prepaid expenses | 56,066 | 62,127 | |
Other current assets | 23,787 | 22,633 | |
Total current assets | 1,662,293 | 1,426,502 | |
Investments in nonconsolidated affiliates | 49,626 | 52,622 | |
Property and equipment, net | 1,837,072 | 1,646,115 | |
Right-of-use lease assets | 198,464 | 220,328 | |
Amortizable intangible assets, net | 144,658 | 150,426 | |
Indefinite-lived intangible assets | 63,801 | 63,801 | |
Goodwill | 74,309 | 74,309 | |
Other assets | 91,616 | 85,103 | |
Total assets | 4,121,839 | 3,719,206 | |
Current Liabilities: | |||
Accounts payable | 4,952 | 17,258 | |
Net related party payables, current | 16,428 | 18,418 | |
Current portion of long-term debt, net of deferred financing costs | 5,115 | 5,429 | |
Accrued liabilities: | |||
Employee related costs | 50,977 | 68,837 | |
Other accrued liabilities | 114,326 | 125,452 | |
Operating lease liabilities, current | 54,963 | 53,388 | |
Collections due to promoters | 19,876 | 31,879 | |
Deferred revenue | 205,641 | 189,308 | |
Total current liabilities | 472,278 | 509,969 | |
Long-term debt, net of deferred financing costs | 649,445 | 28,126 | |
Operating lease liabilities, noncurrent | 155,440 | 174,219 | |
Defined benefit and other postretirement obligations | 25,103 | 26,132 | |
Other employee related costs | 13,481 | 15,591 | |
Collections due to promoters, noncurrent | 5,179 | 0 | |
Deferred tax liabilities, net | 12,927 | 12,450 | |
Other liabilities | 78,138 | 78,279 | |
Total liabilities | 1,411,991 | 844,766 | |
Commitments and contingencies (see Note 10) | |||
Redeemable noncontrolling interests | $ 14,543 | $ 20,600 | |
Madison Square Garden Entertainment Corp. Stockholders’ Equity: | |||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | |
Preferred Stock, Shares Authorized | 15,000 | 15,000 | |
Preferred Stock, Shares Outstanding | 0 | 0 | |
Preferred Stock, Value, Outstanding | $ 0 | $ 0 | |
Additional Paid in Capital | 2,782,042 | 2,751,318 | |
Retained Earnings | (72,768) | 141,936 | |
Accumulated other comprehensive loss | (25,381) | (51,857) | |
Total Madison Square Garden Entertainment Corp. stockholders’ equity | 2,684,134 | 2,841,637 | |
Nonredeemable noncontrolling interests | 11,171 | 12,203 | |
Total equity | 2,695,305 | 2,853,840 | |
Total liabilities, redeemable noncontrolling interests and equity | $ 4,121,839 | $ 3,719,206 | |
Common Class A [Member] | |||
Madison Square Garden Entertainment Corp. Stockholders’ Equity: | |||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | |
Common Stock, Shares Authorized | 120,000 | 120,000 | |
Common Stock, Shares, Outstanding | 19,613 | 19,493 | |
Common Stock, Value, Issued | $ 196 | $ 195 | |
Common Class B [Member] | |||
Madison Square Garden Entertainment Corp. Stockholders’ Equity: | |||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | |
Common Stock, Shares Authorized | 30,000 | 30,000 | |
Common Stock, Shares, Outstanding | 4,530 | 4,530 | |
Common Stock, Value, Issued | $ 45 | $ 45 | |
[1] | See Note 2 to the Company’s audited consolidated and combined financial statements and notes thereto for the year ended June 30, 2020 included in the Company’s Annual Report on Form 10-K for more information regarding the nature of restricted cash. In addition, the restricted cash balance as of December 31, 2020 |
Consolidated and Combined State
Consolidated and Combined Statements Of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | ||||
Income Statement [Abstract] | |||||||
Revenues | [1] | $ 23,137 | $ 394,072 | $ 37,515 | $ 572,035 | ||
Operating expenses: | |||||||
Direct operating expenses | [2] | 35,464 | 210,194 | 69,623 | 341,716 | ||
Selling, general and administrative expenses | [3] | 74,950 | 86,854 | 135,275 | 174,621 | ||
Depreciation and amortization | 23,875 | 27,434 | 50,457 | 54,254 | |||
Restructuring charges | 1,372 | 0 | 21,299 | 0 | |||
Operating income (loss) | (112,524) | 69,590 | (239,139) | 1,444 | |||
Other income (expense): | |||||||
Loss in equity method investments | (1,568) | (1,170) | (3,264) | (2,643) | |||
Interest income | 349 | 6,268 | 644 | 13,583 | |||
Interest expense | (7,675) | (144) | (8,084) | (1,249) | |||
Miscellaneous income (expense), net | [4] | (7,362) | 9,355 | 26,862 | 16,386 | ||
Nonoperating income | (16,256) | 14,309 | 16,158 | 26,077 | |||
Income (loss) from operations before income taxes | (128,780) | 83,899 | (222,981) | 27,521 | |||
Income tax expense | (323) | (1,255) | (486) | (1,440) | |||
Net income (loss) | (129,103) | 82,644 | (223,467) | 26,081 | |||
Less: Net income (loss) attributable to redeemable noncontrolling interests | (3,342) | 885 | (7,231) | 249 | |||
Less: Net income (loss) attributable to nonredeemable noncontrolling interests | (902) | 453 | (1,532) | 493 | |||
Net income (loss) attributable to Madison Square Garden Entertainment Corp.’s stockholders | $ (124,859) | $ 81,306 | $ (214,704) | $ 25,339 | |||
Basic and diluted earnings (loss) per common share attributable to the Company | $ (5.17) | $ 3.39 | $ (8.91) | $ 1.06 | |||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 24,146 | 23,992 | [5] | 24,108 | 23,992 | [5] | |
[1] | Includes revenues from related parties of $5,262 and $984 for the three months ended December 31, 2020 and 2019, respectively, and $9,280 and $7,459 for the six months ended December 31, 2020 and 2019, respectively. | ||||||
[2] | Includes net charges from related parties of $15 and $23,976 for the three months ended December 31, 2020 and 2019, respectively, and $96 and $40,405 for the six months ended December 31, 2020 and 2019, respectively. | ||||||
[3] | Includes net charges to related parties of $(10,086) and $(31,974) for the three months ended December 31, 2020 and 2019, respectively, and $(21,969) and $(65,757) for the six months ended December 31, 2020 and 2019, respectively. | ||||||
[4] | Miscellaneous income (expense), net includes the following: Three Months Ended Six Months Ended December 31, December 31, 2020 2019 2020 2019 Unrealized and unrealized gain (loss) on equity investments with readily determinable fair value $ (7,227) $ 9,432 $ 26,431 $ 14,725 Non-service cost components of net periodic pension and postretirement benefit costs 178 (317) 294 (626) Dividend income from equity investments — 240 — 481 Measurement alternative adjustments for equity investments without readily determinable fair value — — — (532) Others, net. (For the six months ended December 31, 2019, the balance primarily reflected the impact of the elimination of Tao Group Hospitality’s three-month lag in Fiscal Year 2020) (313) — 137 2,338 Total $ (7,362) $ 9,355 $ 26,862 $ 16,386 | ||||||
[5] | On April 17, 2020 (the “Entertainment Distribution Date”), 23,992 common shares were distributed to Madison Square Garden Sports Corp. (“MSG Sports,” formerly known as The Madison Square Garden Company) stockholders as of April 13, 2020. This share amount is being utilized for the calculation of basic and diluted loss per common share attributable to Madison Square Garden Entertainment Corp.’s stockholders for the six months ended December 31, 2019 because Madison Square Garden Entertainment Corp. was a wholly-owned subsidiary of MSG Sports prior to the Entertainment Distribution Date. |
Combined Statements Of Operatio
Combined Statements Of Operations (Unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Apr. 17, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | |||||
Revenues from related parties | $ 5,262 | $ 984 | $ 9,280 | $ 7,459 | |
Direct operating expenses from (to) related parties | 15 | 23,976 | 96 | 40,405 | |
Selling, general and administrative expenses from (to) related parties | $ (10,086) | $ (31,974) | $ (21,969) | $ (65,757) | |
Madison Square Garden Sports [Member] | |||||
Related Party Transaction [Line Items] | |||||
Common shares distributed | 23,992 |
Combined Statements Of Comprehe
Combined Statements Of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (129,103) | $ 82,644 | $ (223,467) | $ 26,081 |
Other comprehensive income, before income taxes: | ||||
Amortization of actuarial loss included in net periodic benefit cost | 290 | 346 | 642 | 685 |
Cumulative translation adjustments | 11,883 | 23,186 | 25,834 | 13,168 |
Other comprehensive income, before income taxes | 12,173 | 23,532 | 26,476 | 13,853 |
Income tax expense related to items of other comprehensive income | 0 | 0 | 0 | 0 |
Other comprehensive income, net of income taxes | 12,173 | 23,532 | 26,476 | 13,853 |
Comprehensive income (loss) | (116,930) | 106,176 | (196,991) | 39,934 |
Less: Comprehensive income (loss) attributable to redeemable noncontrolling interests | (3,342) | 885 | (7,231) | 249 |
Less: Comprehensive income (loss) attributable to nonredeemable noncontrolling interests | (902) | 453 | (1,532) | 493 |
Comprehensive income (loss) attributable to Madison Square Garden Entertainment Corp.’s stockholders | $ (112,686) | $ 104,838 | $ (188,228) | $ 39,192 |
Consolidated and Combined Sta_2
Consolidated and Combined Statements Of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (223,467) | $ 26,081 |
Adjustment to reconcile net income (loss) to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 50,457 | 54,254 |
Provision for deferred income taxes | 476 | 515 |
Share-based compensation expense | 35,091 | 20,458 |
Loss in equity method investments | 3,264 | 2,643 |
Net unrealized and realized gains on equity investments with readily determinable fair value | (26,431) | (14,725) |
Provision for credit losses | 770 | 4,450 |
Other non-cash adjustments | 1,354 | 707 |
Change in assets and liabilities: | ||
Accounts receivable, net | (17,296) | (8,959) |
Receivables from related parties, net of payables | (10,098) | 9,316 |
Prepaid expenses and other assets | (2,264) | (23,217) |
Accounts payable | (12,306) | 17,924 |
Accrued and other liabilities | (27,676) | 19,582 |
Collections due to promoters, including noncurrent portion | (6,824) | (6,397) |
Deferred revenue | 14,658 | (2,913) |
Operating lease right-of-use assets and lease liabilities | 4,660 | 4,039 |
Net cash (used in) provided by operating activities | (215,632) | 103,758 |
Cash flows from investing activities: | ||
Capital expenditures | (219,296) | (208,028) |
Purchase of short-term investments | 0 | (106,063) |
Proceeds from maturity of short-term investments | 339,110 | 106,587 |
Proceeds from sale of equity securities | 20,583 | 0 |
Proceeds from sale of nonconsolidated affiliate | 0 | 18,000 |
Loan repayment received from subordinated debt | 0 | 58,735 |
Cash received for notes receivable | 6,328 | 750 |
Other Investing Activities | (43) | 413 |
Net cash provided by (used in) investing activities | 146,682 | (129,606) |
Cash flows from financing activities: | ||
Proceeds from issuance of term loan, net of issuance discount | 630,500 | 0 |
Proceeds from Lines of Credit | 6,500 | 0 |
Taxes paid in lieu of shares issued for equity-based compensation | (5,975) | 0 |
Noncontrolling interest holders’ capital contribution | 500 | 2,000 |
Distributions to noncontrolling interest holders | 0 | (535) |
Repayment of revolving credit facility | (15,000) | |
Principal repayment on long-term debt | (2,500) | (3,750) |
Payments for financing costs | (14,615) | 0 |
Net transfers from (to) Madison Square Garden Sports Corp. and its subsidiaries | 0 | (23,600) |
Net cash provided by (used in) financing activities | 614,410 | (40,885) |
Effect of exchange rates on cash, cash equivalents and restricted cash | 7,795 | 1,693 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 553,255 | (65,040) |
Cash, cash equivalents and restricted cash at beginning of period | 924,304 | 1,092,065 |
Cash, cash equivalents and restricted cash at end of period | 1,477,559 | 1,027,025 |
Non-cash investing and financing activities: | ||
Capital expenditures incurred but not yet paid | 76,945 | 46,151 |
Share-based compensation capitalized in property and equipment | $ 2,784 | $ 2,482 |
Consolidated and Combined Sta_3
Consolidated and Combined Statements Of Equity And Redeemable Noncontrolling Interests (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Madison Square Garden Sports Corp. Investment | Accumulated Other Comprehensive Loss | Total Company Divisional Equity | Non-redeembable Noncontrolling Interest | Redeemable Noncontrolling Interests |
Balance at the beginning of the period at Jun. 30, 2019 | $ 2,585,838 | $ 2,618,971 | $ (46,923) | $ 2,572,048 | $ 13,790 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) attributable to parent | 25,339 | 25,339 | 25,339 | ||||||
Net income (loss) attributable to nonredeemable noncontrolling interests | 493 | 493 | |||||||
Net income (loss) including portion attributable to nonredeemable noncontrolling interests | 25,832 | ||||||||
Other comprehensive income (loss) | 13,853 | 13,853 | 13,853 | ||||||
Comprehensive income (loss) attributable to parent | 39,192 | 39,192 | |||||||
Comprehensive income (loss) attributable to nonredeemable noncontrolling interests | 493 | ||||||||
Comprehensive income (loss) including portion attributable to nonredeemable noncontrolling interests | 39,685 | ||||||||
Net Increase (decrease) in Parent Company Investment | (663) | (663) | (663) | ||||||
Contributions from noncontrolling interest holders | 3,709 | 3,709 | |||||||
Distributions to noncontrolling interest holders | (535) | (535) | |||||||
Balance at the end of the period at Dec. 31, 2019 | 2,628,034 | 2,643,647 | (33,070) | 2,610,577 | 17,457 | ||||
Balance at the beginning of the period at Jun. 30, 2019 | $ 67,627 | ||||||||
Increase (Decrease) in Redeemable Noncontrolling Interests [Roll Forward] | |||||||||
Net income (loss) attributable to redeemable noncontrolling interests | 249 | 249 | |||||||
Comprehensive income (loss) attributable to redeemable noncontrolling interests | 249 | 249 | |||||||
Distributions to noncontrolling interest holders attributable to redeemable noncontrolling interests | 0 | ||||||||
Balance at the end of the period at Dec. 31, 2019 | 67,876 | ||||||||
Balance at the beginning of the period at Sep. 30, 2019 | 2,498,489 | 2,539,552 | (56,602) | 2,482,950 | 15,539 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) attributable to parent | 81,306 | 81,306 | 81,306 | ||||||
Net income (loss) attributable to nonredeemable noncontrolling interests | 453 | ||||||||
Net income (loss) including portion attributable to nonredeemable noncontrolling interests | 81,759 | ||||||||
Other comprehensive income (loss) | 23,532 | 23,532 | 23,532 | ||||||
Comprehensive income (loss) attributable to parent | 104,838 | 104,838 | |||||||
Comprehensive income (loss) attributable to nonredeemable noncontrolling interests | 453 | ||||||||
Comprehensive income (loss) including portion attributable to nonredeemable noncontrolling interests | 105,291 | ||||||||
Noncontrolling Interest, Increase from Sale of Parent Equity Interest | 22,789 | 22,789 | 22,789 | ||||||
Contributions from noncontrolling interest holders | 2,000 | 2,000 | |||||||
Distributions to noncontrolling interest holders | (535) | (535) | |||||||
Balance at the end of the period at Dec. 31, 2019 | 2,628,034 | 2,643,647 | (33,070) | 2,610,577 | 17,457 | ||||
Balance at the beginning of the period at Sep. 30, 2019 | 66,991 | ||||||||
Increase (Decrease) in Redeemable Noncontrolling Interests [Roll Forward] | |||||||||
Net income (loss) attributable to redeemable noncontrolling interests | 885 | ||||||||
Comprehensive income (loss) attributable to redeemable noncontrolling interests | 885 | 885 | |||||||
Balance at the end of the period at Dec. 31, 2019 | 67,876 | ||||||||
Balance at the beginning of the period at Jun. 30, 2020 | 2,853,840 | $ 240 | $ 2,751,318 | $ 141,936 | (51,857) | 2,841,637 | 12,203 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) attributable to parent | (214,704) | (214,704) | (214,704) | ||||||
Net income (loss) attributable to nonredeemable noncontrolling interests | (1,532) | (1,532) | |||||||
Net income (loss) including portion attributable to nonredeemable noncontrolling interests | (216,236) | ||||||||
Other comprehensive income (loss) | 26,476 | 26,476 | 26,476 | ||||||
Comprehensive income (loss) attributable to parent | (188,228) | (188,228) | |||||||
Comprehensive income (loss) attributable to nonredeemable noncontrolling interests | (1,532) | ||||||||
Comprehensive income (loss) including portion attributable to nonredeemable noncontrolling interests | (189,760) | ||||||||
Share-based compensation | 36,700 | 36,700 | 36,700 | ||||||
Tax withholding associated with shares issued for equity-based compensation | (5,975) | (1) | (5,976) | (5,975) | |||||
Contributions from noncontrolling interest holders | 500 | 500 | |||||||
Balance at the end of the period at Dec. 31, 2020 | 2,695,305 | 241 | 2,782,042 | (72,768) | (72,768) | (25,381) | 2,684,134 | 11,171 | |
Balance at the beginning of the period at Jun. 30, 2020 | 20,600 | 20,600 | |||||||
Increase (Decrease) in Redeemable Noncontrolling Interests [Roll Forward] | |||||||||
Net income (loss) attributable to redeemable noncontrolling interests | (7,231) | (7,231) | |||||||
Comprehensive income (loss) attributable to redeemable noncontrolling interests | (7,231) | (7,231) | |||||||
Accretion of put options | 1,174 | ||||||||
Balance at the end of the period at Dec. 31, 2020 | 14,543 | 14,543 | |||||||
Balance at the beginning of the period at Sep. 30, 2020 | 2,783,706 | 241 | 2,757,155 | 52,091 | (37,554) | 2,771,933 | 11,773 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) attributable to parent | (124,859) | (124,859) | (124,859) | ||||||
Net income (loss) attributable to nonredeemable noncontrolling interests | (902) | (902) | |||||||
Net income (loss) including portion attributable to nonredeemable noncontrolling interests | (125,761) | ||||||||
Other comprehensive income (loss) | 12,173 | 12,173 | 12,173 | ||||||
Comprehensive income (loss) attributable to parent | (112,686) | (112,686) | |||||||
Comprehensive income (loss) attributable to nonredeemable noncontrolling interests | (902) | ||||||||
Comprehensive income (loss) including portion attributable to nonredeemable noncontrolling interests | (113,588) | ||||||||
Share-based compensation | 24,892 | 24,892 | 24,892 | ||||||
Tax withholding associated with shares issued for equity-based compensation | (5) | (5) | (5) | ||||||
Contributions from noncontrolling interest holders | 300 | 300 | |||||||
Balance at the end of the period at Dec. 31, 2020 | 2,695,305 | $ 241 | $ 2,782,042 | $ (72,768) | $ (72,768) | $ (25,381) | $ 2,684,134 | $ 11,171 | |
Balance at the beginning of the period at Sep. 30, 2020 | 17,298 | ||||||||
Increase (Decrease) in Redeemable Noncontrolling Interests [Roll Forward] | |||||||||
Net income (loss) attributable to redeemable noncontrolling interests | (3,342) | (3,342) | |||||||
Comprehensive income (loss) attributable to redeemable noncontrolling interests | (3,342) | (3,342) | |||||||
Accretion of put options | 587 | ||||||||
Balance at the end of the period at Dec. 31, 2020 | $ 14,543 | $ 14,543 |
Description of Business and Bas
Description of Business and Basis of Presentation | 6 Months Ended |
Dec. 31, 2020 | |
Description of Business And Basis of Presentation [Abstract] | |
Description of Business and Basis of Presentation [Text Block] | Description of Business and Basis of Presentation Description of Business Madison Square Garden Entertainment Corp. (together with its subsidiaries, the “Company” or “MSG Entertainment”), is a leader in live experiences comprised of iconic venues; marquee entertainment content; popular dining and nightlife offerings; and a premier music festival. Utilizing the Company’s powerful brands and live entertainment expertise, the Company delivers unique experiences that set the standard for excellence and innovation while forging deep connections with diverse and passionate audiences. The Company’s portfolio of venues includes: Madison Square Garden (“The Garden”), Hulu Theater at Madison Square Garden, Radio City Music Hall, the Beacon Theatre, and The Chicago Theatre. In addition, the Company is constructing a state-of-the-art venue, MSG Sphere, in Las Vegas and plans to build a second MSG Sphere in London, pending necessary approvals. The Company also includes the original production, the Christmas Spectacular Starring the Radio City Rockettes (“ Christmas Spectacular ”), as well as Boston Calling Events, LLC (“BCE”), the entertainment production company that owns and operates the Boston Calling Music Festival, and Tao Group Holdings LLC (“Tao Group Hospitality”), a hospitality group with globally-recognized entertainment dining and nightlife brands. The Company conducts a significant portion of its operations at venues that it either owns or operates under long-term leases. The Company owns The Garden, Hulu Theater at Madison Square Garden and The Chicago Theatre. In addition, the Company leases Radio City Music Hall and the Beacon Theatre in New York City. Additionally, Tao Group Hospitality operates various restaurants, nightlife and hospitality venues under long-term leases and management contracts in New York, Las Vegas, Los Angeles, Chicago, Australia, and Singapore. The Company, formerly named MSG Entertainment Spinco, Inc., was incorporated on November 21, 2019 as a direct, wholly owned subsidiary of Madison Square Garden Sports Corp. (“MSG Sports” or “Former Parent”), formerly known as The Madison Square Garden Company. On March 31, 2020, MSG Sports’ board of directors approved the distribution of all the outstanding common stock of MSG Entertainment to MSG Sports’ stockholders (the “Entertainment Distribution”), which occurred on April 17, 2020 (the “Entertainment Distribution Date”). See Note 1 to the Company’s audited consolidated and combined financial statements and notes thereto for the year ended June 30, 2020 included in the Company’s Annual Report on Form 10-K for more information regarding the Entertainment Distribution. Following the Entertainment Distribution, the Company has two reportable segments (the Entertainment business and the Tao Group Hospitality business) as a result of certain changes in the financial information that is provided to its Chief Operating Decision Maker (“CODM”). Additionally, as part of the Entertainment Distribution, the Company has entered into various agreements with MSG Sports as detailed in Note 17. Basis of Presentation The Company reports on a fiscal year basis ending on June 30th. In these consolidated and combined financial statements, the years ended on June 30, 2021 and 2020 are referred to as “Fiscal Year 2021,” and “Fiscal Year 2020,” respectively. Subsequent to the Entertainment Distribution, the Company’s balance sheets as of December 31, 2020 and June 30, 2020 and for the statement of operations for the three and six months ended December 31, 2020 are presented on a consolidated basis, as the Company became a standalone public company on April 17, 2020. The Company’s financial statements prior to April 17, 2020 that are included in the results of operations for the year ended June 30, 2020, and the interim periods therein, were prepared on a stand-alone basis derived from the consolidated financial statements and accounting records of MSG Sports (“combined financial statements”). These financial statements reflect the combined historical results of operations, financial position and cash flows of the Company in accordance with U.S. generally accepted accounting principles (“GAAP”) and Securities and Exchange Commission (“SEC”) Staff Accounting Bulletin Topic 1-B, Allocation of Expenses and Related Disclosure in Financial Statements of Subsidiaries, Divisions or Lesser Business Components of Another Entity, and Article 10 of Regulation S-X of the SEC for interim financial information. References to GAAP issued by the Financial Accounting Standards Board (“FASB”) in these footnotes are to the FASB Accounting Standards Codification, also referred to as the “Codification” or “ASC.” See Note 1 to the Company’s audited consolidated and combined financial statements and notes thereto for the year ended June 30, 2020 included in the Company’s Annual Report on Form 10-K for more information regarding the assumptions underlying the combined financial statements and additional details on the preparation of such combined financial statements. Management believes that the assumptions underlying the combined financial statements, including the assumptions regarding allocating general corporate expenses, are reasonable. Nevertheless, the combined financial statements may not include all of the actual expenses that would have been incurred by the Company and may not reflect its combined results of operations, financial position, and cash flows had it been a stand-alone company during the periods presented. Actual costs that would have been incurred if the Company had been a stand-alone company would depend on multiple factors, including organizational structure and strategic decisions made in various areas, including information technology and infrastructure. The Company is unable to quantify the amounts that it would have recorded during the historical periods on a stand-alone basis as it is not practicable to do so. See Note 17 for more information regarding allocations of certain costs from the Company to MSG Sports. Unaudited Interim Financial Statements The accompanying interim consolidated and combined financial statements have been prepared in accordance with GAAP for interim financial information and the instruction of Rule 10-01 of Regulation S-X, and should be read in conjunction with the Company’s audited consolidated and combined financial statements and notes thereto for the year ended June 30, 2020 included in the Company’s Annual Report on Form 10-K. The consolidated and combined financial statements as of December 31, 2020 and for the three and six months ended December 31, 2020 and 2019 presented herein 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 Company’s dependence on revenues from the Christmas Spectacular generally means it earns a disproportionate share of its revenues in the second quarter of its fiscal year. In addition, the Company’s operating results in the third and fourth quarters of Fiscal Year 2020 and the first and second quarters of Fiscal Year 2021 were negatively impacted due to the COVID-19 pandemic. Impact of the COVID-19 Pandemic The Company’s operations and operating results have been, and continue to be, materially impacted by the COVID-19 pandemic and actions taken in response by governmental authorities and certain professional sports leagues. As of the date of this Quarterly Report on Form 10-Q, virtually all of the Entertainment business’ operations have been suspended and Tao Group Hospitality is operating at significantly reduced capacity and demand. It is not clear when we will be permitted or able to resume normal business operations. As a result of government-mandated assembly limitations and closures, our performance venues were closed in mid-March 2020, and, subject to limited exceptions, such as the use of The Garden for Knicks and Rangers (as defined below) home games without fans in attendance and our virtual residency in Fall 2020 featuring Phish’s Trey Anastasio live from the Beacon Theatre, as of the date of this filing no events are permitted to be held at The Garden, Hulu Theater at Madison Square Garden, Radio City Music Hall and the Beacon Theatre. Although events are permitted at The Chicago Theatre, current government-mandated capacity restrictions and other safety requirements make it economically unfeasible to do so. Other than Knicks and Rangers home games at the Garden, all events at our venues have been postponed or canceled through at least March 2021, and will likely be impacted through the rest of 2021. We are not recognizing revenue from events that have been canceled or postponed and, while events have been rescheduled into the second half of calendar year 2021, it is unclear whether and to what extent those events will take place. We are actively monitoring government regulations and guidance, and when such regulations permit, and there is an opportunity to reopen our venues for events safely and on economically feasible terms, we expect that we would do so. The impact to our operations included the cancellation of both the 2020 production of the Christmas Spectacular and the 2020 Boston Calling Music Festival. The Company has long-term arena license agreements (the “Arena License Agreements”) with MSG Sports that require the New York Knicks (the “Knicks”) of the National Basketball Association (the “NBA”) and the New York Rangers (the “Rangers”) of the National Hockey League (the “NHL”) to play their home games at The Garden. While the NBA began its 2020-21 regular season in December 2020 and the NHL began its 2020-21 regular season in January 2021, the Knicks and Rangers are currently playing home games at The Garden without fans in attendance due to government-mandated assembly restrictions. Even if fans are permitted to attend in the future, capacity restrictions, use limitations and social distancing requirements may remain in place through, at least, the rest of Fiscal Year 2021, which would continue to affect the payments we receive under the Arena License Agreements. Due to government actions taken in response to the COVID-19 pandemic, virtually all of Tao Group Hospitality’s venues were closed for approximately three months starting in mid-March, and Avenue and Vandal in New York were permanently closed in April and June, respectively. Tao Group Hospitality has resumed limited operations at certain venues, subject to significant regulatory requirements, including limits on capacity, curfews and social distancing requirements for outdoor and indoor dining. As of December 31, 2020, eight of Tao Group Hospitality’s venues were open for outdoor dining and/or limited capacity indoor dining, four were open for delivery and/or takeout only, while sixteen venues remained closed. The COVID-19 pandemic has materially impacted our revenues, most significantly because, as of the date of this filing, we are generating substantially reduced sponsorship and advertising revenue as well as reduced payments under the Arena License Agreements and we are not generating revenue from: • events at The Garden, Hulu Theater at Madison Square Garden, Radio City Music Hall, the Beacon Theatre and The Chicago Theatre; • suite licenses; and • the 2020 production of the Christmas Spectacular . The COVID-19 pandemic is having and will likely continue to have a significant and negative impact on our operations and financial performance. As a result, we have taken several actions to improve our financial flexibility, reduce operating costs and preserve liquidity. • We have revised our processes and construction schedule for MSG Sphere, providing for a substantially reduced spend in Fiscal Year 2021 and a lengthened timetable that enables the Company to preserve cash in the near-term. We now expect to open MSG Sphere in Las Vegas in calendar year 2023; • In connection with our extended construction timeline, we have reduced our expected near-term spending on technology and content development for MSG Sphere; • At the end of May 2020, we ended all financial support that was previously provided for certain event-level employees at the Company’s performance venues, and as a result virtually all venue employees, approximately 6,000 in total, are effectively furloughed; • At the end of March 2020, Tao Group Hospitality eliminated essentially all of its venue line staff and manager positions, with limited numbers of employees returning as operations slowly resume. In August 2020, Tao Group Hospitality reduced its corporate workforce, and made additional reductions in venue and corporate positions during the second quarter of Fiscal Year 2021; • We reduced our regular full-time workforce by approximately 350 positions in August, with a modest additional reduction in November 2020; • We have implemented and are continuing to pursue additional comprehensive cost reduction measures, including terminating certain third-party services, negotiating reduced rates and/or reduced service levels with third parties, and pursuing targeted savings and reductions in spending on marketing and travel and entertainment, and deferring or limiting non-essential operating or other discretionary expenses; • We have successfully negotiated certain relief and deferral of cash payments from landlords and other vendors. Conversations with third parties are ongoing as we continue to pursue additional options, some of which may or may not be successful; and • In November 2020, MSG National Properties, LLC (“MSG National Properties”) and certain of our subsidiaries entered into a five-year $650,000 senior secured term loan facility (“National Properties Term Loan Facility”). See Note 12 for further details of National Properties Term Loan Facility. Disruptions caused by the COVID-19 pandemic have had, and are likely to continue to have, a significant and negative impact on Tao Group Hospitality’s operations and financial performance. In August 2020, Tao Group Hospitality entered into an amendment to the Tao Senior Credit Agreement, which suspended certain financial covenants through December 31, 2021 and increased the minimum liquidity requirement. In addition, in connection with the amendment, our wholly owned subsidiary MSG Entertainment Group, LLC (“MSG Entertainment Group”) entered into a guarantee agreement, which also included a minimum liquidity requirement for MSG Entertainment Group. See Note 12 for more information regarding the amendment to the Tao Senior Credit Agreement. If recovery from the pandemic takes longer than currently estimated, Tao Group Hospitality may need to seek covenant waivers in the future. Tao Group Hospitality's failure to obtain debt covenant waivers could trigger a violation of these covenants and lead to default and acceleration of all of its outstanding debt, which could have a material adverse effect on Tao Group Hospitality and the Company. See Note 1 to the Company’s audited consolidated and combined financial statements and notes thereto for the year ended June 30, 2020 included in the Company’s Annual Report on Form 10-K for impairment charges recorded by the Company for Tao Group Hospitality in Fiscal Year 2020. There was no impairment charge recorded by the Company for the three and six months ended December 31, 2020. However, the duration and impact of the COVID-19 pandemic may result in future impairment charges that management will evaluate as facts and circumstances evolve over time. Refer to Note 7 and Note 9 for further detail of the Company’s intangible assets, long-lived assets and goodwill. |
Accounting Policies
Accounting Policies | 6 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies Principles of Consolidation and Combination For the periods prior to the Entertainment Distribution, the combined financial statements include assets and liabilities that were historically held at Former Parent’s corporate level but were specifically identifiable or otherwise attributable to the Company. All intercompany transactions between the Company and Former Parent have been included in the combined financial statements as components of MSG Sports’ investment. Expenses related to corporate allocations prior to the Entertainment Distribution were considered to be effectively settled in the combined financial statements at the time the transaction was recorded, with the offset recorded against MSG Sports’ investment. All significant intracompany transactions and accounts within the Company's consolidated and combined financial statements have been eliminated. After the Entertainment Distribution, the consolidated financial statements of the Company include the accounts of Madison Square Garden Entertainment Corp. and its subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. In addition, the consolidated and combined financial statements of the Company include the accounts from Tao Group Hospitality and BCE, in which the Company has controlling voting interests. The Company’s consolidation criteria are based on authoritative accounting guidance for voting interest or variable interest entities. Tao Group Hospitality and BCE are consolidated with the equity owned by other stockholders shown as redeemable or nonredeemable noncontrolling interests in the accompanying consolidated balance sheets, and the other stockholders’ portion of net income (loss) and other comprehensive income (loss) shown as net income (loss) or comprehensive income (loss) attributable to redeemable or nonredeemable noncontrolling interests in the accompanying consolidated and combined statements of operations and consolidated and combined statements of comprehensive income (loss), respectively. See Note 2 to the Company’s audited consolidated and combined financial statements and notes thereto for the year ended June 30, 2020 included in the Company’s Annual Report on Form 10-K regarding the classification of redeemable noncontrolling interests of Tao Group Hospitality and the elimination of the three-month lag in the consolidation of Tao Group Hospitality in Fiscal Year 2020. Use of Estimates The preparation of the accompanying consolidated and combined financial statements in conformity with GAAP requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amount of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Such estimates include the valuation of accounts receivable, investments, goodwill, intangible assets, other long-lived assets, tax accruals and other liabilities. In addition, estimates are used in revenue recognition, income tax, performance and share-based compensation, depreciation and amortization, litigation matters and other matters, as well as in the valuation of contingent consideration and noncontrolling interests resulting from business combination transactions. Management believes its use of estimates in the financial statements to be reasonable. Management evaluates its estimates on an ongoing basis using historical experience and other factors, including the general economic environment and actions it may take in the future. The Company adjusts such estimates when facts and circumstances dictate. However, these estimates may involve significant uncertainties and judgments and cannot be determined with precision. In addition, these estimates are based on management’s best judgment at a point in time and, as such, these estimates may ultimately differ from actual results. Changes in estimates resulting from weakness in the economic environment or other factors beyond the Company’s control could be material and would be reflected in the Company’s financial statements in future periods. Recently Issued Accounting Pronouncements Recently Adopted Accounting Pronouncements In June 2016 , the FASB issued Accounting Standards Update (“ ASU ”) No. 2016-13, Financial Instruments — Credit Losses. ASU No. 2016-13 replaced the incurred loss impairment methodology in previous GAAP with a methodology that requires the reflection of expected credit losses and consideration of a broader range of reasonable and supportable information to determine credit loss estimates at inception. In May 2019, the FASB issued ASU No. 2019-05, Targeted Transition Relief, which amends ASC Topic 326 to provide an option to irrevocably elect to measure certain individual financial assets at fair value instead of amortized cost. In November 2019, FASB issued ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments — Credit Losses , to provide clarification guidance in a number of areas, including: (i) expected recoveries for purchased financial assets with credit deterioration, (ii) transition relief for troubled debt restructuring, (iii) disclosures related to accrued interest receivables, and (iv) financial assets secured by collateral maintenance provisions. For most financial instruments, the standard requires the use of a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses, which will generally result in the earlier recognition of credit losses on financial instruments. In February 2020, the FASB issued ASU No. 2020-02, Financial Instruments — Credit Losses and Leases, which includes amendments pursuant to SEC Staff Accounting Bulletin No. 119. This standard was adopted by the Company in the first quarter of Fiscal Year 2021. The adoption of the standard did not have an impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement as part of the FASB’s broader disclosure framework project. ASU No. 2018-13 removes, modifies and adds certain disclosures providing greater focus on requirements that clearly communicate the most important information to the users of the financial statements with respect to fair value measurements. Most of the disclosure requirements in ASU No. 2018-13 are required to be applied on a retrospective basis except for the guidance related to (i) unrealized gains and losses included in other comprehensive income, (ii) disclosure related to range and weighted average Level 3 unobservable inputs and (iii) narrative disclosure requirements on measurement uncertainty, which are required to be applied on a prospective basis. This standard was adopted by the Company in the first quarter of Fiscal Year 2021. The adoption of the standard did not have an impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans — General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans. ASU No. 2018-14 removes certain disclosures that are not considered cost beneficial, clarifies certain required disclosures and adds additional disclosures. This standard was adopted by the Company in the first quarter of Fiscal Year 2021. The adoption of the standard did not have an impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles — Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract . ASU No. 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance also specifies that the balance sheet, income statement, and statement of cash flows presentation of capitalized implementation costs and the related amortization should align with the presentation of the hosting (service) element of the arrangement. This standard was adopted by the Company in the first quarter of Fiscal Year 2021. The adoption of the standard did not have an impact on the Company’s consolidated financial statements. However, to the extent future costs incurred in a cloud computing arrangement are capitalizable, the corresponding amortization will be included in “Direct operating expenses” or “Selling, general and administrative expenses” in the consolidated statements of operations depending on the nature of the related arrangement, rather than “Depreciation and amortization.” In November 2018, the FASB issued ASU No. 2018-17, Targeted Improvements to Related Party Guidance for Variable Interest Entities . ASU No. 2018-17 amends the variable interest entities (“VIE”) guidance to align the evaluation of a decision maker’s or service provider’s fee in assessing a variable interest with the guidance in the primary beneficiary test. Specifically, indirect interests held by a related party that is under common control are to be considered on a proportionate basis, rather than in their entirety, when assessing whether the fee qualifies as a variable interest. The proportionate basis approach is consistent with the treatment of indirect interests held by a related party under common control when evaluating the primary beneficiary of a VIE. When a decision maker or service provider has an interest in a related party, regardless of whether they are under common control, they consider that related party’s interest in a VIE on a proportionate basis throughout the VIE model, for both the assessment of a variable interest and the determination of a primary beneficiary. This standard was adopted by the Company in the first quarter of Fiscal Year 2021. The adoption of the standard did not have an impact on the Company’s consolidated financial statements. In November 2018, the FASB issued ASU No. 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 . ASU No. 2018-18 clarifies that certain transactions between participants in a collaborative arrangement should be accounted for under ASC Topic 606 when the counterparty is a customer. In addition, ASU No. 2018-18 precludes an entity from presenting consideration from a transaction in a collaborative arrangement as revenue from contracts with customers if the counterparty is not a customer for that transaction. This standard was adopted by the Company in the first quarter of Fiscal Year 2021. The adoption of the standard did not have an impact on the Company’s consolidated financial statements. In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments — Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825 — Financial Instruments . This ASU provides narrow-scope amendments to help apply these recent standards. This standard was adopted by the Company in the first quarter of Fiscal Year 2021 in connection with the adoption of ASU No. 2016-13 discussed above. The adoption of the standard did not have an impact on the Company’s consolidated financial statements. In November 2019, the FASB issued ASU No. 2019-08, Compensation — Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Codification Improvements — Share-Based Consideration Payable to a Customer. This ASU requires that share-based payment awards issued to a customer in connection with a revenue arrangement be recorded as a reduction of the transaction price in revenue. The amount recorded as a reduction of the transaction price is measured using the grant-date fair value of the award and is classified in accordance with ASC Topic 718. Changes in the measurement of the share-based payments after the grant date that are due to the form of the consideration are not included in the transaction price and are recorded elsewhere in the statement of operations. The award is measured and classified under ASC Topic 718 for its entire life, unless the award is modified after it vests and the grantee is no longer a customer. This standard was adopted by the Company in the first quarter of Fiscal Year 2021. The adoption of the standard did not have an impact on the Company’s consolidated financial statements. In January 2020, the FASB issued ASU No. 2020-01, Investments-Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. The amendments in this ASU clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying the measurement alternative in accordance with ASC Topic 321 immediately before applying or upon discontinuing the equity method. In addition, the amendments clarify the accounting for certain forward contracts and purchased options accounted for under ASC Topic 815. This standard was adopted by the Company in the first quarter of Fiscal Year 2021. The adoption of the standard did not have an impact on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . This ASU eliminates certain exceptions to the general approach in ASC Topic 740 and includes methods of simplification to the existing guidance. The new guidance is effective for the Company in the first quarter of fiscal year 2022, with early adoption permitted. The adoption of the standard is not expected to have a material impact on the Company’s consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This ASU provides temporary optional expedients and exceptions to the guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from the London Interbank Offered Rate and other interbank offered rates to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, which refines the scope of Topic 848 and clarifies some of its guidance as part of the FASB’s monitoring of global reference rate activities. The new guidance was effective upon issuance, and the Company is allowed to elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the impact this standard will have on its consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Dec. 31, 2020 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Revenue Recognition Contracts with Customers See Note 4 to the Company’s audited consolidated and combined financial statements and notes thereto for the year ended June 30, 2020 included in the Company’s Annual Report on Form 10-K for more information regarding the details of the Company’s revenue recognition policies. All revenue recognized in the consolidated and combined statements of operations is considered to be revenue from contracts with customers in accordance with ASC Topic 606 except for $2,333 and $3,081 of revenues from Arena License Agreements, leases and subleases, which are accounted for in accordance with ASC Topic 842 for the three and six months ended December 31, 2020, respectively. For the three and six months ended December 31, 2020, the Company did not have any material provision for credit losses on receivables or contract assets arising from contracts with customers. The allowance for credit losses associated with contracts with customers was $9,222 and $9,135 as of December 31, 2020 and June 30, 2020, respectively. The change in allowance for credit losses from June 30, 2020 to December 31, 2020 was due to a $770 increase in provisions for credit losses and a $682 accounts receivable write off. Disaggregation of Revenue The following table disaggregates the Company’s revenue by major source and reportable segment based upon the timing of transfer of goods or services to the customer, in accordance with ASC Subtopic 606-10-50-5, for the three and six months ended December 31, 2020 and 2019: Three Months Ended December 31, 2020 Entertainment Tao Group Eliminations Total Event-related and entertainment dining and nightlife offerings (a) $ 1,002 $ 9,179 $ (43) $ 10,138 Sponsorship, signage and suite licenses (b) 6,064 414 21 6,499 Other (c) 3,270 898 (1) 4,167 Total revenues from contracts with customers $ 10,336 $ 10,491 $ (23) $ 20,804 Three Months Ended December 31, 2019 Entertainment Tao Group Eliminations Total Event-related and entertainment dining and nightlife offerings (a) $ 242,545 $ 63,256 $ (83) $ 305,718 Sponsorship, signage and suite licenses (b) 74,630 39 (220) 74,449 Other (c) 8,195 5,809 (99) 13,905 Total revenues from contracts with customers $ 325,370 $ 69,104 $ (402) $ 394,072 Six Months Ended December 31, 2020 Entertainment Tao Group Eliminations Total Event-related and entertainment dining and nightlife offerings (a) $ 1,729 $ 14,839 $ (43) $ 16,525 Sponsorship, signage and suite licenses (b) 8,524 486 (211) 8,799 Other (c) 6,890 2,387 (167) 9,110 Total revenues from contracts with customers $ 17,143 $ 17,712 $ (421) $ 34,434 Six Months Ended December 31, 2019 Entertainment Tao Group Eliminations Total Event-related and entertainment dining and nightlife offerings (a) $ 325,259 $ 115,597 $ (96) $ 440,760 Sponsorship, signage and suite licenses (b) 110,068 223 (437) 109,854 Other (c) 9,695 11,901 (175) 21,421 Total revenues from contracts with customers $ 445,022 $ 127,721 $ (708) $ 572,035 _________________ (a) Consists of (i) ticket sales and other ticket-related revenues, (ii) Tao Group Hospitality’s entertainment dining and nightlife offerings, (iii) venue license fees from third-party promoters, and (iv) food, beverage and merchandise sales. Event-related revenues and entertainment dining and nightlife offerings are recognized at a point in time. As such, these revenues have been included in the same category in the table above. (b) See Note 4 to the Company’s audited consolidated and combined financial statements and notes thereto for the year ended June 30, 2020 included in the Company’s Annual Report on Form 10-K for further details on the pattern of recognition of sponsorship, signage and suite license revenues. (c) Primarily consists of (i) revenues from sponsorship sales and representation agreements with MSG Sports , (ii) advertising commission revenue from MSG Networks Inc. (“MSG Networks”), and (ii) Tao Group Hospitality’s managed venue revenues. In addition to the disaggregation of the Company’s revenue by major source based upon the timing of transfer of goods or services to the customer disclosed above, the following table disaggregates the Company’s consolidated and combined revenues by type of goods or services in accordance with the required entity-wide disclosure requirements of FASB ASC Subtopic 280-10-50-38 to 40 and the disaggregation of revenue required disclosures in accordance with ASC Subtopic 606-10-50-5 for the three and six months ended December 31, 2020 and 2019: Three Months ended December 31, 2020 Entertainment Tao Group Eliminations Total Ticketing and venue license fee revenues (a) $ 968 $ — $ — $ 968 Sponsorship and signage, suite, and advertising commission revenues 9,130 — 21 9,151 Revenues from entertainment dining and nightlife offerings (b) — 10,491 (44) 10,447 Food, beverage and merchandise revenues — — — — Other 238 — — 238 Total revenues from contracts with customers $ 10,336 $ 10,491 $ (23) $ 20,804 Three Months ended December 31, 2019 Entertainment Tao Group Eliminations Total Ticketing and venue license fee revenues (a) $ 199,969 $ — $ — $ 199,969 Sponsorship and signage, suite, and advertising commission revenues 85,250 — (220) 85,030 Revenues from entertainment dining and nightlife offerings (b) — 69,104 (83) 69,021 Food, beverage and merchandise revenues 34,470 — — 34,470 Other 5,681 — (99) 5,582 Total revenues from contracts with customers $ 325,370 $ 69,104 $ (402) $ 394,072 Six Months Ended December 31, 2020 Entertainment Tao Group Eliminations Total Ticketing and venue license fee revenues (a) $ 1,698 $ — $ — $ 1,698 Sponsorship and signage, suite, and advertising commission revenues 14,989 — (211) 14,778 Revenues from entertainment dining and nightlife offerings (b) — 17,712 (210) 17,502 Food, beverage and merchandise revenues — — — — Other 456 — — 456 Total revenues from contracts with customers $ 17,143 $ 17,712 $ (421) $ 34,434 Six Months Ended December 31, 2019 Entertainment Tao Group Eliminations Total Ticketing and venue license fee revenues (a) $ 261,116 $ — $ — $ 261,116 Sponsorship and signage, suite, and advertising commission revenues 123,395 — (437) 122,958 Revenues from entertainment dining and nightlife offerings (b) — 127,721 (96) 127,625 Food, beverage and merchandise revenues 50,741 — — 50,741 Other 9,770 — (175) 9,595 Total revenues from contracts with customers $ 445,022 $ 127,721 $ (708) $ 572,035 _________________ (a) Amounts include ticket sales, including other ticket-related revenue, and venue license fees from the Company’s events such as (i) concerts, (ii) the presentation of the Christmas Spectacular, and (iii) other live entertainment and sporting events. (b) Primarily consist of revenues from (i) entertainment dining and nightlife offerings and (ii) venue management agreements. Contract Balances The timing of revenue recognition, billings and cash collections results in billed receivables, contract assets and contract liabilities on the consolidated balance sheets. The following table provides information about contract balances from the Company’s contracts with customers as of December 31, 2020 and June 30, 2020: December 31, June 30, 2020 2020 Receivables from contracts with customers, net (a) $ 75,367 $ 59,828 Contract assets, current (b) 8,718 3,850 Deferred revenue, including non-current portion (c) 207,770 193,112 _________________ (a) Receivables from contracts with customers, which are reported in Accounts receivable, net and Net related party receivables in the Company’s consolidated balance sheets, represent the Company’s unconditional rights to consideration under its contracts with customers. As of December 31, 2020 and June 30, 2020, the Company’s receivables from contracts with customers above included $1,656 and $2,644, respectively, related to various related parties. See Note 17 for further details on related party arrangements. (b) Contract assets, which are reported as Other current assets in the Company’s consolidated balance sheets, primarily relate to the Company’s rights to consideration for goods or services transferred to customers, for which the Company does not have an unconditional right to bill as of the reporting date. Contract assets are transferred to accounts receivable once the Company’s right to consideration becomes unconditional. (c) Deferred revenue primarily relates to the Company’s receipt of consideration from 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. Revenue recognized for the six months ended December 31, 2020 relating to the deferred revenue balance as of June 30, 2020 was $5,069. Transaction Price Allocated to the Remaining Performance Obligations The following table depicts the estimated revenue expected to be recognized, based on current projections and expectations of our business resuming, in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of December 31, 2020. This primarily relates to performance obligations under sponsorship and suite license arrangements that have original expected durations longer than one year. 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. Fiscal Year 2021 (remainder) $ 8,253 Fiscal Year 2022 114,652 Fiscal Year 2023 77,938 Fiscal Year 2024 54,456 Fiscal Year 2025 45,422 Thereafter 53,688 $ 354,409 |
Restructuring and Related Activ
Restructuring and Related Activities | 6 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure | Restructuring Charges The Company’s operations have been disrupted since March 2020 due to the COVID-19 pandemic. As a direct response to this disruption, on August 4, 2020, the Company implemented cost savings initiatives in order to streamline operations and preserve liquidity. These measures included a reduction in full-time workforce of approximately 350 employees in August and 10 employees in November for a total expense of $21,299. For the three and six months ended December 31, 2020, the Company recorded a total of $1,372 and $21,299, respectively, for restructuring charges related to termination benefits provided to employees in the Entertainment reportable segment and these are reflected in restructuring charges in the accompanying consolidated and combined statements of operations. The Company’s restructuring accrual activity through December 31, 2020 is as follows: June 30, 2020 $ — Restructuring charges 21,299 Payments (19,442) December 31, 2020 $ 1,857 |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 6 Months Ended |
Dec. 31, 2020 | |
Cash, Cash Equivalents and Restricted Cash [Abstract] | |
Cash, Cash Equivalents and Restricted Cash [Text Block] | 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 $ 1,451,352 $ 906,555 $ 1,009,127 $ 1,082,055 Restricted cash (a) 26,207 17,749 17,898 10,010 Cash, cash equivalents and restricted cash on the consolidated and combined statements of cash flows $ 1,477,559 $ 924,304 $ 1,027,025 $ 1,092,065 _________________ (a) See Note 2 to the Company’s audited consolidated and combined financial statements and notes thereto for the year ended June 30, 2020 included in the Company’s Annual Report on Form 10-K for more information regarding the nature of restricted cash. In addition, the restricted cash balance as of December 31, 2020 |
Investments and Loans to Noncon
Investments and Loans to Nonconsolidated Affiliates | 6 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments, Joint Ventures and Cost Method Investments [Abstract] | |
Investments and Loans to Nonconsolidated Affiliates | Investments in Nonconsolidated Affiliates The Company’s investments in nonconsolidated affiliates, which are accounted for under the equity method of accounting and equity investments without readily determinable fair values in accordance with ASC Topic 323, Investments - Equity Method and Joint Ventures and ASC Topic 321, Investments - Equity Securities , respectively, consisted of the following: Ownership Percentage Investment December 31, 2020 Equity method investments: SACO Technologies Inc. (“SACO”) 30 % $ 38,232 Others 7,894 Equity securities without readily determinable fair values (a) 3,500 Total investments in nonconsolidated affiliates $ 49,626 June 30, 2020 Equity method investments: SACO 30 % $ 40,461 Others 8,661 Equity securities without readily determinable fair values (a) 3,500 Total investments in nonconsolidated affiliates $ 52,622 _________________ (a) In accordance with the ASC Topic 321, Investments - Equity Securities, the Company applies the measurement alternative to its equity investments without readily determinable fair values. Under the measurement alternative, equity securities without readily determinable fair values are accounted for at cost, adjusted for impairment and changes resulting from observable price fluctuations in orderly transactions for the identical or a similar investment of the same issuer, which is classified within Level III of the fair value hierarchy. For the three and six months ended December 31, 2020, the Company did not have impairment charges or change in carrying value recorded to its equity securities without readily determinable fair values. For the six months ended December 31, 2019 , the Company recorded an impairment charge of $533 to an equity investment without readily determinable fair value. Equity Investments with Readily Determinable Fair Value In addition to the investments discussed above, the Company holds investments of (i) 3,208 shares of the common stock of Townsquare Media, Inc. (“Townsquare”), and (ii) 894 shares of common stock of DraftKings Inc. (“DraftKings”). Townsquare is a media, entertainment and digital marketing solutions company that is listed on the New York Stock Exchange (“NYSE”) under the symbol “TSQ.” DraftKings is a fantasy sports contest and sports gambling provider that is listed on the NASDAQ Stock Market (“NASDAQ”) under the symbol “DKNG” for its common stock. The fair value of the Company’s investments in Townsquare and DraftKings are determined based on quoted market prices in active markets on the NYSE and NASDAQ, respectively, which are classified within Level I of the fair value hierarchy. The cost basis and the carrying fair value of these investments, which are reported under Other assets in the accompanying consolidated balance sheets as of December 31, 2020 and June 30, 2020, are as follows: December 31, 2020 Equity Investment with Readily Determinable Fair Values Shares / Units Cost Basis Carrying value Townsquare common stock 3,208 $ 23,222 $ 21,366 DraftKings common stock 894 6,209 41,647 Total $ 29,431 $ 63,013 June 30, 2020 Equity Investment with Readily Determinable Fair Values Shares / Units Cost Basis Carrying value Townsquare common stock 3,208 $ 23,222 $ 14,340 DraftKings common stock 1,280 8,798 42,589 DraftKings warrants 9 22 132 Total $ 32,042 $ 57,061 For the three and six months ended December 31, 2020, the Company sold 395 shares of common stock of DraftKings for cash proceeds of $20,583 and recorded a realized loss of $2,659. For the three and six months ended December 31, 2020, the Company recorded a net unrealized loss of $4,568 and a net unrealized gain of $29,090, respectively, on the investments in DraftKings and Townsquare. For the three and six months ended December 31, 2019, the Company recorded an unrealized gain of $9,432 and $14,725, respectively, on the investment in Townsquare. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Dec. 31, 2020 | |
Property and Equipment [Abstract] | |
Property and Equipment | Property and Equipment As of December 31, 2020 and June 30, 2020, property and equipment consisted of the following assets: December 31, June 30, Land $ 149,771 $ 141,638 Buildings 994,826 993,206 Equipment 361,948 345,314 Aircraft 38,090 38,090 Furniture and fixtures 42,059 42,389 Leasehold improvements 169,648 170,585 Construction in progress 895,542 685,382 2,651,884 2,416,604 Less accumulated depreciation and amortization (814,812) (770,489) $ 1,837,072 $ 1,646,115 The increase in Construction in progress is primarily associated with the development and construction of MSG Spheres in Las Vegas and London. The property and equipment balances above include $76,945 and $78,618 of capital expenditure accruals as of December 31, 2020 and June 30, 2020, respectively, which are reflected in Other accrued liabilities in the accompanying consolidated balance sheets. |
Leases
Leases | 6 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company’s leases primarily consist of certain live-performance venues, entertainment dining and nightlife venues, corporate office space, storage and, to a lesser extent, office and other equipment. The Company determines whether an arrangement contains a lease at the inception of the arrangement. If a lease is determined to exist, the lease term is assessed based on the date when the underlying asset is made available by the lessor for the Company’s use. The Company’s assessment of the lease term reflects the non-cancellable term of the lease, inclusive of any rent-free periods and/or periods covered by early-termination options which the Company is reasonably certain not to exercise, as well as periods covered by renewal options which the Company is reasonably certain to exercise. The Company also determines lease classification as either operating or finance at lease commencement, which governs the pattern of expense recognition and the presentation reflected in the consolidated and combined statements of operations and consolidated and combined statements of cash flows over the lease term. For leases with a term exceeding 12 months, a lease liability is recorded on the Company’s consolidated balance sheet at lease commencement reflecting the present value of the fixed minimum payment obligations over the lease term. A corresponding ROU asset equal to the initial lease liability is also recorded, adjusted for any prepaid rent and/or initial direct costs incurred in connection with execution of the lease and reduced by any lease incentives received. The Company includes fixed payment obligations related to non-lease components in the measurement of ROU assets and lease liabilities, as the Company has elected to account for lease and non-lease components together as a single lease component. ROU assets associated with finance leases are presented separate from ROU assets associated with operating leases and are included within Property and equipment, net on the Company’s consolidated balance sheet. For purposes of measuring the present value of the Company’s fixed payment obligations for a given lease, the Company uses its incremental borrowing rate, determined based on information available at lease commencement, as rates implicit in the underlying leasing arrangements are typically not readily determinable. The Company’s incremental borrowing rate reflects the rate it would pay to borrow on a secured basis and incorporates the term and economic environment surrounding the associated lease. For operating leases, fixed lease payments are recognized as lease expense on a straight-line basis over the lease term. For finance leases, the initial ROU asset is depreciated on a straight-line basis over the lease term, along with recognition of interest expense associated with accretion of the lease liability, which is ultimately reduced by the related fixed payments. For leases with a term of 12 months or less (“short-term leases”), any fixed lease payments are recognized on a straight-line basis over the lease term and are not recognized on the consolidated balance sheet. Variable lease costs for both operating and finance leases, if any, are recognized as incurred and such costs are excluded from lease balances recorded on the consolidated balance sheet. In addition, the Company excluded its ground lease with Las Vegas Sands Corp. (“Sands”) associated with MSG Sphere in Las Vegas from the ROU asset and lease liability balance recorded on the consolidated balance sheet as the ground lease will have no fixed rent. Under the ground lease agreement, Sands will receive priority access to purchase tickets to events at the venue for inclusion in hotel packages or other uses, as well as certain rent-free use of the venue to support its Expo Center business. However, if certain return objectives are achieved, Sands will receive 25% of the after-tax cash flow in excess of such objectives. The ground lease is for a term of 50 years, commencing upon substantial completion of the MSG Sphere. As of December 31, 2020, the Company’s existing operating leases, which are recorded on the accompanying financial statements, have remaining lease terms ranging from 10 months to 18 years. In certain instances, leases include options to renew, with varying option terms in each case. The exercise of lease renewal options is generally at the Company’s discretion and is considered in the Company’s assessment of the respective lease term. The Company’s lease agreements do not contain material residual value guarantees or material restrictive covenants. The following table summarizes the ROU assets and lease liabilities recorded on the Company’s consolidated balance sheets as of December 31, 2020 and June 30, 2020: Line Item in the Company’s Consolidated Balance Sheet December 31, June 30, Right-of-use assets: Operating leases Right-of-use lease assets $ 198,464 $ 220,328 Lease liabilities: Operating leases, current Operating lease liabilities, current $ 54,963 $ 53,388 Operating leases, noncurrent Operating lease liabilities, noncurrent 155,440 174,219 Total lease liabilities $ 210,403 $ 227,607 The following table summarizes the activity recorded within the Company’s consolidated and combined statements of operations for the three and six months ended December 31, 2020 and 2019: Three Months Ended Line Item in the Company’s Consolidated and Combined Statement of Operations December 31, 2020 2019 Operating lease cost Direct operating expenses $ 6,545 $ 11,333 Operating lease cost Selling, general and administrative expenses 5,029 5,102 Short-term lease cost Direct operating expenses — 12 Variable lease cost Direct operating expenses 271 1,696 Variable lease cost Selling, general and administrative expenses 15 14 Total lease cost $ 11,860 $ 18,157 Six Months Ended Line Item in the Company’s Consolidated and Combined Statement of Operations December 31, 2020 2019 Operating lease cost Direct operating expenses $ 12,952 $ 19,574 Operating lease cost Selling, general and administrative expenses 10,124 9,917 Short-term lease cost Direct operating expenses — 348 Variable lease cost Direct operating expenses 547 3,230 Variable lease cost Selling, general and administrative expenses 38 27 Total lease cost $ 23,661 $ 33,096 Supplemental Information For the six months ended December 31, 2020, cash paid for amounts included in the measurement of lease liabilities was $25,272. For the six months ended December 31, 2020, the Company did not have new operating lease liabilities arising from obtaining right-of-use lease assets. The weighted average remaining lease term for operating leases recorded on the accompanying consolidated balance sheet as of December 31, 2020 was 5.7 years. The weighted average discount rate was 9.27% as of December 31, 2020 and represented the Company’s estimated incremental borrowing rate, assuming a secured borrowing, based on the remaining lease term at the time of either (i) adoption of the standard or (ii) the period in which the lease term expectation was modified. Maturities of operating lease liabilities as of December 31, 2020 are as follows: Fiscal Year 2021 (remainder) $ 25,115 Fiscal Year 2022 60,298 Fiscal Year 2023 56,801 Fiscal Year 2024 38,529 Fiscal Year 2025 23,356 Thereafter 90,972 Total lease payments 295,071 Less imputed interest 84,668 Total lease liabilities (a) $ 210,403 ________________ (a) Operating lease payments exclude minimum lease payments related to a location associated with the entertainment dining and nightlife offerings as the Company has not yet taken possession of the space. Lessor Arrangements In connection with the Entertainment Distribution, the Company entered into Arena License Agreements with MSG Sports that, among other things, require the Knicks and the Rangers to play their home games at The Garden in exchange for fixed monthly license fees over the term of the agreements. The Company accounts for these license fees as operating lease revenue given that the Company provides MSG Sports with the right to direct the use of and obtain substantially all of the economic benefit from The Garden during Knicks and Rangers home games. Operating lease revenue is recognized on a straight-line basis over the lease term, adjusted pursuant to the terms of the Arena License Agreements. In the case of the Arena License Agreements, the lease terms relate to non-consecutive periods of use when MSG Sports uses The Garden for their professional sports teams’ home games, and operating lease revenue is therefore recognized ratably as events occur. The Arena License Agreements provide that license fees are not required to be paid by MSG Sports during periods when The Garden is unavailable for use due to a force majeure event. As a result of government-mandated suspension of events at The Garden beginning on March 13, 2020 due to the impact of the COVID-19 pandemic, The Garden was not available for use by MSG Sports from the effective date of the Arena License Agreements through the first quarter of Fiscal Year 2021, and, accordingly, the Company did not record any operating lease revenue for this arrangement during the first quarter of Fiscal Year 2021. During a portion of the three months ended December 31, 2020, The Garden reopened for games of the Knicks and the Rangers but fans were not permitted to attend due to governmental restrictions. The Knicks played four games at The Garden in December 2020 and the Company recorded $1,585 of revenues under the Arena License Agreements for the three and six months ended December 31, 2020. In addition, the Company recorded other lease and sublease revenues of $748 and $1,496 for the three and six months ended December 31, 2020, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible AssetsSee Note 10 to the Company’s audited consolidated and combined financial statements and notes thereto for the year ended June 30, 2020 included in the Company’s Annual Report on Form 10-K regarding the details of the $88,583 goodwill impairment in the Tao Group Hospitality segment in Fiscal Year 2020. The carrying amount of goodwill as of December 31, 2020 and June 30, 2020 was $74,309, all of which is within the Entertainment segment. During the first quarter of Fiscal Year 2021, the Company performed its annual impairment test of goodwill and determined that there were no impairments of goodwill identified as of the impairment test date. The carrying amount of indefinite-lived intangible assets, all of which are within the Entertainment segment, as of December 31, 2020 and June 30, 2020 were as follows: Trademarks $ 61,881 Photographic related rights 1,920 Total $ 63,801 During the first quarter of Fiscal Year 2021, the Company performed its annual impairment test of indefinite-lived intangible assets and determined that there were no impairments of indefinite-lived intangibles identified as of the impairment test date. The Company’s intangible assets subject to amortization are as follows: December 31, 2020 Gross Accumulated Net Trade names $ 97,530 $ (23,066) $ 74,464 Venue management contracts 79,000 (17,872) 61,128 Non-compete agreements 9,000 (6,131) 2,869 Festival rights 8,080 (2,426) 5,654 Other intangibles 4,217 (3,674) 543 $ 197,827 $ (53,169) $ 144,658 June 30, 2020 Gross Accumulated Net Trade names $ 97,530 $ (20,774) $ 76,756 Venue management contracts 79,000 (15,590) 63,410 Non-compete agreements 9,000 (5,348) 3,652 Festival rights 8,080 (2,156) 5,924 Other intangibles 4,217 (3,533) 684 $ 197,827 $ (47,401) $ 150,426 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments As more fully described in Note 11 to the Company’s audited consolidated and combined financial statements and notes thereto for the year ended June 30, 2020 included in the Company’s Annual Report on Form 10-K, the Company’s commitments consist primarily of long-term noncancelable operating lease agreements primarily for Company venues, including Tao Group Hospitality venues, and various corporate offices. See Note 8 for more details about the lease liabilities. Except for the National Properties Term Loan Facility entered into in November 2020 and the cancellation in November 2020 of the separate delayed draw term loan credit agreements (the “DDTL Facilities”) entered into on April 17, 2020 between a wholly-owned subsidiary of the Company as lender and each of MSG NYK Holdings, LLC and MSG NYR Holdings, LLC, subsidiaries of MSG Sports, the Company did not have any material changes in its contractual obligations since the end of Fiscal Year 2020 other than activities in the ordinary course of business. See Notes 12 and 17 for further details of National Properties Term Loan Facility repayment requirements and the cancellation of the DDTL Facilities, respectively. 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. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table presents the Company’s assets that are measured at fair value within Level I of the fair value hierarchy on a recurring basis, which include cash equivalents, short-term investments and an equity investment with readily determinable fair value: Fair Value Hierarchy December 31, June 30, Assets: Money market accounts I $ 198,051 $ — Time deposits I 481,011 777 U.S. treasury bills I 314,998 999,887 Equity investments with readily determinable fair value I 63,013 57,061 Total assets measured at fair value $ 1,057,073 $ 1,057,725 All assets listed above are classified within Level I of the fair value hierarchy as they are valued using observable inputs that reflect quoted prices for identical assets in active markets. The carrying amount of the Company’s commercial paper, money market accounts, time deposits and U.S. treasury bills approximates fair value due to their short-term maturities. See Note 6 for more information on the Company’s equity investments with readily determinable fair value. The carrying value and fair value of the Company’s financial instruments reported in the accompanying consolidated balance sheets are as follows: December 31, 2020 June 30, 2020 Carrying Fair Carrying Fair Assets Notes receivable (a) $ — $ — $ 6,328 $ 6,328 Short-term investments (a) — — 337,192 337,192 Equity investments with readily determinable fair value (b) 63,013 63,013 57,061 57,061 Liabilities Current and non-current portion of long-term debt under National Properties Term Loan Facility (c) $ 650,000 $ 657,313 $ — $ — Current and non-current portion of long term debt under Tao Credit Facilities (c) 37,750 37,723 33,750 32,367 _________________ (a) As of June 30, 2020, the Company’s notes receivable were invested with banking institutions as collateral for issuances of letters of credit. In addition, the Company’s short-term investments consisted of investments that (i) had original maturities of greater than three months and (ii) could be converted into cash by the Company within one year. The Company’s short-term investments as of June 30, 2020 included $299,942 in U.S. treasury bills and $37,250 in term deposits. The short-term investments in U.S. treasury bills were classified within Level I of the fair value hierarchy. The Company’s notes receivable and short-term investments in term deposits were carried at cost, including interest accruals, which approximated fair value and were classified within Level I of the fair value hierarchy. For the six months ended December 31, 2020, the changes in term deposits and notes receivable were all related to the settlement upon those investments expirations. No gain or loss was recognized on those notes receivable and term deposits for the six months ended December 31, 2020. (b) See Note 6 for more information on the Company’s equity investments with readily determinable fair value assets under Level I of the fair value hierarchy. |
Credit Facilities
Credit Facilities | 6 Months Ended |
Dec. 31, 2020 | |
Credit Facilities [Abstract] | |
Credit Facilities | Credit Facilities Tao Credit Facilities On May 23, 2019, Tao Group Intermediate Holdings LLC (“TAOIH” or “Intermediate Holdings”) and Tao Group Operating LLC (“TAOG” or “Senior Borrower”), entered into a credit agreement (the “Tao Senior Credit Agreement”) with JPMorgan Chase Bank, N.A., as administrative agent, collateral agent and a letter of credit issuer, and the lenders party thereto. Together the Tao Senior Credit Agreement and a $49,000 intercompany subordinated credit agreement that matures in August 2024 (the “Tao Subordinated Credit Agreement”) between a subsidiary of the Company and Tao Group Sub-Holdings LLC, a subsidiary of Tao Group Hospitality, replaced the Senior Borrower’s prior credit agreement dated January 31, 2017 (“2017 Tao Credit Agreement”). On June 15, 2020, the Company entered into the second amendment to the Tao Subordinated Credit Agreement, which provided an additional $22,000 of intercompany loan borrowing availability under the Tao Subordinated Credit Agreement. The net intercompany loan outstanding balances under the Tao Subordinated Credit Agreement, as amended, were $62,000 and $49,000 as of December 31, 2020 and June 30, 2020, respectively. The balances and interest-related activities pertaining to the Tao Subordinated Credit Agreement, as amended, have been eliminated in the consolidated and combined financial statements in accordance with ASC Topic 810, Consolidation . The Tao Senior Credit Agreement provides TAOG with senior secured credit facilities (the “Tao Senior Secured Credit Facilities”) consisting of: (i) an initial $40,000 term loan facility with a term of five years (the “Tao Term Loan Facility”) and (ii) a $25,000 revolving credit facility with a term of five years (the “Tao Revolving Credit Facility”). Up to $5,000 of the Tao Revolving Credit Facility is available for the issuance of letters of credit. All borrowings under the Tao Revolving Credit Facility, including, without limitation, amounts drawn under the revolving line of credit are subject to the satisfaction of customary conditions. The Tao Senior Secured Credit Facilities were obtained without recourse to the Company or any of its affiliates (other than TAOG, TAOIH and its subsidiaries and in respect of a certain reserve account, each as discussed below). The Tao Senior Credit Agreement requires Intermediate Holdings to comply with a maximum total leverage ratio of 4.00:1.00 and a maximum senior leverage ratio of 3.00:1.00 from the closing date until December 31, 2021 and a maximum total leverage ratio of 3.50:1.00 and a maximum senior leverage ratio of 2.50:1.00 from and after December 31, 2021. In addition, there is a minimum fixed charge coverage ratio of 1.25:1.00 for TAOIH. On August 6, 2020, TAOG and TAOIH entered into an amendment to the Tao Senior Credit Agreement, which suspended the application of the financial maintenance covenants thereunder, modified certain restrictive covenants therein through December 31, 2021, modified the applicable interest rates and increased the minimum liquidity requirement for the outstanding balance of $33,750 under the Tao Term Loan Facility and for the $25,000 availability under the Tao Revolving Credit Facility. In addition, in connection with the amendment, the Company, through its direct wholly owned subsidiary, MSG Entertainment Group, entered into a guarantee and reserve account agreement (i) to guarantee the obligations of TAOG under the Tao Senior Credit Agreement, (ii) to establish and grant a security interest in a reserve account that initially held a deposit of approximately $9,800 and (iii) with a covenant to maintain a minimum liquidity requirement of no less than $75,000 at all times. The balance held in the reserve account was approximately $8,100 as of December 31, 2020. As of December 31, 2020, TAOG, TAOIH and the restricted subsidiaries were in compliance with the covenants of the Tao Senior Credit Agreement. All obligations under the Tao Senior Credit Agreement are guaranteed by MSG Entertainment Group, TAOIH and TAOIH’s existing and future direct and indirect domestic subsidiaries (other than (i) TAOG, (ii) domestic subsidiaries substantially all of whose assets consist of controlled foreign corporations and (iii) subsidiaries designated as immaterial subsidiaries or unrestricted subsidiaries) (the “Tao Subsidiary Guarantors”, and together with TAOIH, the “Tao Guarantors”). All obligations under the Tao Senior Credit Agreement, including the guarantees of those obligations, are secured by the reserve account noted above and substantially all of the assets of TAOG and each Tao Guarantor (collectively, “Tao Collateral”), including, but not limited to, a pledge of the equity interests in TAOG held directly by TAOIH and the equity interests in each Tao Subsidiary Guarantor held directly or indirectly by TAOIH. Borrowings under the Tao Senior Credit Agreement bear interest at a floating rate, which at the option of the Senior Borrower may be either (a) a base rate plus an additional rate ranging from 1.50% to 2.50% per annum (determined based on a total leverage ratio) (the “Base Rate”), or (b) a Eurocurrency rate plus an additional rate ranging from 2.50% to 3.50% per annum (determined based on a total leverage ratio) (the “Eurocurrency Rate”), provided that through December 31, 2021, the additional rate used in calculating the floating rate is (i) 1.50% per annum for borrowings bearing the Base Rate, and (ii) 2.50% per annum for borrowings bearing the Eurocurrency Rate. The Tao Senior Credit Agreement requires TAOG to pay a commitment fee of 0.50% in respect of the daily unused commitments under the Tao Revolving Credit Facility. TAOG is also required to pay customary letter of credit fees, as well as fronting fees, to banks that issue letters of credit pursuant to the Tao Senior Credit Agreement. The interest rate on the Tao Senior Credit Agreement as of December 31, 2020 was 2.65%. There was $6,500 and zero borrowing outstanding under the Tao Revolving Credit Facility as of December 31, 2020 and June 30, 2020, respectively. Tao Group Hospitality utilized $750 of the Tao Revolving Credit Facility for issuance of letters of credit and the remaining borrowing available as of December 31, 2020 was $17,750. During the six months ended December 31, 2020 and 2019, the Company made interest payments of $554 and $1,218, respectively, under the Tao Senior Credit Agreement. In addition to the financial covenants described above, the Tao Senior Credit Agreement and the related security agreements contain certain customary representations and warranties, affirmative covenants and events of default. The Tao Senior Credit Agreement contains certain restrictions on the ability of TAOIH, TAOG and its restricted subsidiaries to take certain actions as provided in (and subject to various exceptions and baskets set forth in) the Tao Senior Credit Agreement, including, without limitation, the following: (i) incurring additional indebtedness and contingent liabilities; (ii) creating liens on certain assets; (iii) making investments, loans or advances in or to other persons; (iv) paying dividends and distributions or repurchasing capital stock; (v) engaging in certain transactions with affiliates; (vi) amending specified agreements; (vii) merging or consolidating; (viii) making certain dispositions; and (ix) entering into agreements that restrict the granting of liens. Intermediate Holdings is subject to a customary passive holding company covenant. Subject to customary notice and minimum amount conditions, TAOG may voluntarily prepay outstanding loans under the Tao Senior Credit Agreement at any time, in whole or in part, without premium or penalty (except for customary breakage costs with respect to Eurocurrency loans). The initial Tao Term Loan Facility amortizes quarterly in accordance with its terms from June 30, 2019 through March 31, 2024 with a final maturity date on May 23, 2024. TAOG is required to make mandatory prepayments of the Tao Term Loan Facility from the net cash proceeds of certain sales of assets (including Tao Collateral) or casualty insurance and/or condemnation recoveries (in each case, subject to certain reinvestment, repair or replacement rights) and the incurrence of certain indebtedness, subject to certain exceptions. See Note 13 to the Company’s audited consolidated and combined financial statements and notes thereto for the year ended June 30, 2020 included in the Company’s Annual Report on Form 10-K for more information regarding the Company’s debt maturities for the Tao Senior Secured Credit Facilities. National Properties Term Loan Facility On November 12, 2020, MSG National Properties, an indirect, wholly-owned subsidiary of the Company, MSG Entertainment Group and certain subsidiaries of MSG National Properties entered into a five-year $650,000 senior secured term loan facility (the “National Properties Term Loan Facility”). The proceeds of the National Properties Term Loan Facility may be used to fund working capital needs, for general corporate purposes of MSG National Properties and its subsidiaries, and to make distributions to MSG Entertainment Group. The National Properties Term Loan Facility includes a minimum liquidity covenant, pursuant to which MSG National Properties and its restricted subsidiaries are required to maintain a specified minimum level of average daily liquidity, consisting of cash and cash equivalents and available revolving commitments, over the last month of each quarter. From the closing date until the first anniversary of the National Properties Term Loan Facility, the minimum liquidity threshold is $450,000, which is reduced each quarter by the amount of cash usage, subject to a minimum liquidity floor of $200,000. After the first anniversary, the minimum liquidity level is reduced to $200,000. If at any time the total leverage ratio of MSG National Properties and its restricted subsidiaries is less than 5.00 to 1.00 as of the end of any four consecutive fiscal quarter period or MSG National Properties obtains an investment grade rating, the minimum liquidity level is permanently reduced to $50,000. The principal obligations under the National Properties Term Loan Facility are to be repaid in quarterly installments in an aggregate amount equal to 1.00% per annum (0.25% per quarter), with the balance due at the maturity of the facility. The National Properties Term Loan Facility will mature on November 12, 2025. Borrowings under the National Properties Term Loan Facility bear interest at a floating rate, which at the option of MSG National Properties may be either (i) a base rate plus a margin of 5.25% per annum or (ii) LIBOR, with a floor of 0.75%, plus a margin of 6.25% per annum. The interest rate on the National Properties Term Loan Facility as of December 31, 2020 was 7.00%. During the six months ended December 31, 2020, the Company was not required to make interest or principal payments under the National Properties Term Loan Facility. All obligations under the National Properties Term Loan Facility are guaranteed by MSG Entertainment Group and MSG National Properties’ existing and future direct and indirect domestic subsidiaries, other than the subsidiaries that own The Garden, BCE and certain other excluded subsidiaries (the “Subsidiary Guarantors”). All obligations under the National Properties Term Loan Facility, including the guarantees of those obligations, are secured by certain of the assets of MSG National Properties and the Subsidiary Guarantors (collectively, “Collateral”) including, but not limited to, a pledge of some or all of the equity interests held directly or indirectly by MSG National Properties in each Subsidiary Guarantor. The Collateral does not include, among other things, any interests in The Garden or the leasehold interests in Radio City Music Hall and the Beacon Theater. Under certain circumstances, MSG National Properties is required to make mandatory prepayments on loans outstanding, including prepayments in an amount equal to a specified percentage of excess cash flow in any fiscal year and prepayments in an amount equal to the net cash proceeds of certain sales of assets or casualty insurance and/or condemnation recoveries (subject to certain reinvestment, repair or replacement rights), in each case subject to certain exceptions. In addition to the minimum liquidity covenant, the National Properties Term Loan Facility and the related security agreement contain certain customary representations and warranties, affirmative and negative covenants and events of default. The National Properties Term Loan Facility contains certain restrictions on the ability of MSG National Properties and its restricted subsidiaries to take certain actions as provided in (and subject to various exceptions and baskets set forth in) the National Properties Term Loan Facility, including the following: (i) incur additional indebtedness; (ii) create liens on certain assets; (iii) make investments, loans or advances in or to other persons; (iv) pay dividends and distributions or repurchase capital stock (which will restrict the ability of MSG National Properties to make cash distributions to the Company); (v) repay, redeem or repurchase certain indebtedness; (vi) change its lines of business; (vii) engage in certain transactions with affiliates; (viii) amend their respective organizational documents; (ix) merge or consolidate; and (x) make certain dispositions. As of December 31, 2020, MSG National Properties and its restricted subsidiaries were in compliance with the covenants of the National Properties Term Loan Facility. As of December 31, 2020, the principal repayments required for the next five years under the National Properties Term Loan Facility are as follows: Fiscal Year 2021 (remainder) $ 3,250 Fiscal Year 2022 6,500 Fiscal Year 2023 6,500 Fiscal Year 2024 6,500 Fiscal Year 2025 6,500 Thereafter 620,750 $ 650,000 Deferred Financing Costs In connection with the National Properties Term Loan Facility, the Company incurred a $19,500 original issue discount and $14,417 of issuance costs (collectively, “deferred financing costs”). The deferred financing costs are amortized, as interest expense, over the term of the National Properties Term Loan Facility on a straight-line basis, which approximates the effective interest method. The following table summarizes the outstanding balances under the Tao Term Loan Facility, the Tao Revolving Credit Facility and the National Properties Term Loan Facility, as well as the related deferred financing costs in the accompanying consolidated balance sheets as of December 31, 2020 and June 30, 2020. December 31, 2020 June 30, 2020 Principal Unamortized Deferred Financing Costs Net (a) Principal Unamortized Deferred Financing Costs Net (a) Current portion Tao Term Loan Facility $ 5,000 $ (239) $ 4,761 $ 5,000 $ (208) $ 4,792 National Properties Term Loan Facility 6,500 (6,783) (283) — — — Current portion of long-term debt, net of deferred financing costs (a) $ 11,500 $ (7,022) $ 4,478 $ 5,000 $ (208) $ 4,792 December 31, 2020 June 30, 2020 Principal Unamortized Deferred Financing Costs Net Principal Unamortized Deferred Financing Costs Net Noncurrent portion Tao Term Loan Facility $ 26,250 $ (595) $ 25,655 $ 28,750 $ (624) $ 28,126 Tao Revolving Credit Facility (b) 6,500 — 6,500 — — — National Properties Term Loan Facility 643,500 (26,210) 617,290 — — — Long-term debt, net of deferred financing costs $ 676,250 $ (26,805) $ 649,445 $ 28,750 $ (624) $ 28,126 _________________ (a) In addition to the outstanding balance associated with the Tao Term Loan Facility, the Tao Revolving Credit Facility and the National Properties Term Loan Facility disclosed above, the Company’s current portion of long-term debt, net of deferred financing costs in the accompanying consolidated balance sheets also includes $637 related to a note with respect to a loan received by BCE from its noncontrolling interest holder that is due in April 2021 as of December 31, 2020 and June 30, 2020. |
Pension Plans and Other Postret
Pension Plans and Other Postretirement Benefit Plan | 6 Months Ended |
Dec. 31, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Pension Plans and Other Postretirement Benefit Plan | Pension Plans and Other Postretirement Benefit Plan See Note 14 to the Company’s audited consolidated and combined financial statements and notes thereto for the year ended June 30, 2020 included in the Company’s Annual Report on Form 10-K for more information regarding the Company’s defined benefit pension plans (“Pension Plans”), postretirement benefit plan (“Postretirement Plan”), The Madison Square Garden 401(k) Savings Plan and the MSG Sports & Entertainment, LLC Excess Savings Plan (collectively, the “Savings Plans”), and The Madison Square Garden 401(k) Union Plan (the “Union Savings Plan”). The Company’s Pension Plans and Postretirement Plan are considered “Shared Plans.” Defined Benefit Pension Plans and Postretirement Benefit Plan The following tables present components of net periodic benefit cost for the Pension Plans and Postretirement Plan included in the accompanying consolidated and combined statements of operations for the three and six months ended December 31, 2020 and 2019. Service cost is recognized in direct operating expenses and selling, general and administrative expenses. All other components of net periodic benefit cost are reported in miscellaneous expense, net. Pension Plans Postretirement Plan Three Months Ended Three Months Ended December 31, December 31, 2020 2019 2020 2019 Service cost $ 22 $ 20 $ 13 $ 17 Interest cost 845 1,328 10 27 Expected return on plan assets (1,324) (1,328) — — Recognized actuarial loss 270 344 20 2 Net periodic benefit cost $ (187) $ 364 $ 43 $ 46 Contributory charge to MSG Sports for participation in the Shared Plans and allocation of costs related to the corporate employees (a) — (52) — (8) Net periodic benefit cost reported in consolidated and combined statements of operations $ (187) $ 312 $ 43 $ 38 Pension Plans Postretirement Plan Six Months Ended Six Months Ended December 31, December 31, 2020 2019 2020 2019 Service cost $ 42 $ 48 $ 26 $ 35 Interest cost 1,690 2,656 20 55 Expected return on plan assets (2,648) (2,659) — — Recognized actuarial loss 602 680 40 5 Net periodic (benefit) cost $ (314) $ 725 $ 86 $ 95 Contributory charge to MSG Sports for participation in the Shared Plans and allocation of costs related to the corporate employees (a) — (102) — (16) Net periodic (benefit) cost reported in consolidated and combined statements of operations $ (314) $ 623 $ 86 $ 79 ________________ (a) The pension expense related to employees of other MSG Sports businesses participating in any of these plans is reflected as a contributory charge from the Company to MSG Sports, resulting in a decrease to the expense recognized in the consolidated and combined statements of operations. Defined Contribution Pension Plans For the three and six months ended December 31, 2020 and 2019, expenses related to the Savings Plans and Union Savings Plan included in the accompanying consolidated and combined statements of operations are as follows: Savings Plans Union Savings Plan Three Months Ended Six Months Ended Three Months Ended Six Months Ended December 31, December 31, December 31, December 31, 2020 2019 (a) 2020 2019 (a) 2020 2019 2020 2019 $ 1,457 $ 2,435 $ 2,647 $ 4,595 $ 10 $ 31 $ 19 $ 53 _________________ |
Share-based Compensation
Share-based Compensation | 6 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation | Share-based Compensation See Note 15 to the Company’s audited consolidated and combined financial statements and notes thereto for the year ended June 30, 2020 included in the Company’s Annual Report on Form 10-K for more information regarding MSG Sports equity award programs (the “MSG Sports Stock Plans”) and MSG Entertainment equity award programs. Share-based compensation expense was $23,562 and $10,373 for the three months ended December 31, 2020 and 2019, respectively, and $35,091 and $20,458 for the six months ended December 31, 2020 and 2019, respectively. In addition, capitalized share-based compensation expense was $2,784 and $2,482 for the six months ended December 31, 2020 and 2019, respectively. These amounts reflect only the expenses for the awards provided to the Company’s direct employees, net of expenses related to the Company’s corporate employees who participate in the MSG Sports Stock Plans that were charged to MSG Sports. The Company recorded previously unrecognized share-based compensation expense of $11,129 for the three and six months ended December 31, 2020 associated with the cancellation of certain awards pursuant to a settlement agreement related to an executive. Restricted Stock Units Award Activity The following table summarizes activity related to holders (including the Company and MSG Sports employees) of the Company’s restricted stock units and performance restricted stock units, collectively referred to as “RSUs,” for the six months ended December 31, 2020: Number of Weighted-Average Nonperformance Performance Unvested award balance, June 30, 2020 277 328 $ 75.34 Granted 387 328 $ 71.60 Vested (134) (85) $ 69.00 Forfeited (26) (29) $ 72.63 Cancelled — (32) $ 88.58 Unvested award balance, December 31, 2020 504 510 $ 73.80 The fair value of RSUs that vested during the six months ended December 31, 2020 was $16,251. Upon delivery, RSUs granted under the Employee Stock Plan were net share-settled to cover the required statutory tax withholding obligations. To fulfill the employees’ required statutory tax withholding obligations for the applicable income and other employment taxes, 81 of these RSUs, with an aggregate value of $5,976, were retained by the Company during the six months ended December 31, 2020, of which 8 of these RSUs, with an aggregate value of $575, related to MSG Sports employees. Stock Options Award Activity The following table summarizes activity related to the Company’s stock options held by employees for the six months ended December 31, 2020: Number of Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value Balance as of June 30, 2020 543 $ 99.68 Cancelled (449) $ 107.07 Balance as of December 31, 2020 94 $ 64.36 6.96 $ 3,817 Exercisable as of December 31, 2020 94 $ 64.36 6.96 $ 3,817 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table details the components of accumulated other comprehensive loss: Three Months Ended December 31, 2020 Pension Plans and Cumulative Translation Adjustments Accumulated Balance as of September 30, 2020 $ (38,970) $ 1,416 $ (37,554) Other comprehensive income before reclassifications — 11,883 11,883 Amounts reclassified from accumulated other comprehensive loss (a) 290 — 290 Other comprehensive income 290 11,883 12,173 Balance as of December 31, 2020 $ (38,680) $ 13,299 $ (25,381) Three Months Ended December 31, 2019 Pension Plans and Cumulative Translation Adjustments Accumulated Balance as of September 30, 2019 $ (41,741) $ (14,861) $ (56,602) Other comprehensive income before reclassifications — 23,186 23,186 Amounts reclassified from accumulated other comprehensive loss (a) 346 — 346 Other comprehensive income 346 23,186 23,532 Balance as of December 31, 2019 $ (41,395) $ 8,325 $ (33,070) Six Months Ended December 31, 2020 Pension Plans and Cumulative Translation Adjustments Accumulated Balance as of June 30, 2020 $ (39,322) $ (12,535) $ (51,857) Other comprehensive income before reclassifications — 25,834 25,834 Amounts reclassified from accumulated other comprehensive loss (a) 642 — 642 Other comprehensive income 642 25,834 26,476 Balance as of December 31, 2020 $ (38,680) $ 13,299 $ (25,381) Six Months Ended December 31, 2019 Pension Plans and Cumulative Translation Adjustments Accumulated Balance as of June 30, 2019 $ (42,080) $ (4,843) $ (46,923) Other comprehensive income before reclassifications — 13,168 13,168 Amounts reclassified from accumulated other comprehensive loss (a) 685 — 685 Other comprehensive income 685 13,168 13,853 Balance as of December 31, 2019 $ (41,395) $ 8,325 $ (33,070) ________________ (a) Amounts reclassified from accumulated other comprehensive loss represent the amortization of net actuarial loss and net unrecognized prior service credit included in net periodic benefit cost, which is reflected under Miscellaneous income (expense), net in the accompanying consolidated and combined statements of operations. |
Income Taxes
Income Taxes | 6 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the periods prior to the Entertainment Distribution, the Company did not file separate tax returns as the Company was included in the tax grouping of other MSG Sports entities within the respective entity’s tax jurisdiction. The income tax provision included in these periods has been calculated using the separate return basis, as if the Company filed a separate tax return. Income tax expense for the three months ended December 31, 2020 of $323 differs from income tax benefit derived from applying the statutory federal rate of 21% to the pretax loss primarily due to tax expenses of (i) $35,819 related to an increase in valuation allowance, (ii) $2,337 resulting from the acceleration of share-based compensation expense in connection with the cancellation of certain awards, and (iii) $891 related to noncontrolling interests, partially offset by state income tax benefit of $12,705. Income tax expense for the six months ended December 31, 2020 of $486 differs from income tax benefit derived from applying the statutory federal rate of 21% to the pretax loss primarily due to tax expenses of (i) $64,251 related to an increase in valuation allowance, (ii) $2,337 resulting from the acceleration of share-based compensation expense in connection with the cancellation of certain awards, (iii) $1,840 related to noncontrolling interests, and (iv) $1,669 resulting from nondeductible officers’ compensation, partially offset by state income tax benefit of $22,519. For the six months ended December 31, 2020, the Company made income tax payments of $15,526 related to taxable income recognized in the fourth quarter of Fiscal Year 2020. Income tax expense for the three months ended December 31, 2019 of $1,255 differs from income tax expense derived from applying the statutory federal rate of 21% to the pretax income primarily due to a tax benefit related to a decrease in valuation allowance of $27,074, partially offset by state income tax expense of $9,621 and tax expense of $1,318 resulting from nondeductible officers’ compensation. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions As of December 31, 2020, members of the Dolan family including trusts for members of the Dolan family (collectively, the “Dolan Family Group”), for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, collectively beneficially owned 100% of the Company’s outstanding Class B Common Stock and approximately 3.1% of the Company’s outstanding Class A Common Stock. Such shares of the Company’s Class A Common Stock and Class B Common Stock, collectively, represent approximately 70.7% of the aggregate voting power of the Company’s outstanding common stock. Members of the Dolan family are also the controlling stockholders of MSG Sports, MSG Networks and AMC Networks Inc. (“AMC Networks”). Current Related Party Arrangements The Company is party to the following agreements and/or arrangements with MSG Sports: • Sponsorship sales and service representation agreements pursuant to which the Company has the exclusive right and obligation to sell MSG Sports’ sponsorships for an initial stated term of ten years for a commission; • Team sponsorship allocation agreement, pursuant to which MSG Sports continues receiving an allocation of sponsorship and signage revenues associated with the sponsorship agreements that existed at the Entertainment Distribution Date; • Arena License Agreements pursuant to which the Company (i) provides MSG Sports the right to use The Garden for games of the Knicks and Rangers for a 35-year term in exchange for venue license fees, (ii) shares revenues collected for suite licenses, (iii) operates and manages the sale of the sports teams merchandise at The Garden for a commission, (iv) operates and manages the sale of food and beverage concessions and catering services during the Knicks and Rangers games for a portion of net profits (as defined under the Arena License Agreements), (v) provides day of game services that were historically provided prior to the Entertainment Distribution, and (vi) provides other general services within The Garden; • Transition Services Agreement (the “TSA”) pursuant to which the Company provides certain corporate and other transition services to MSG Sports, such as information technology, accounting, accounts payable, payroll, tax, certain legal functions, human resources, insurance and risk management, government affairs, investor relations, corporate communications, benefit plan administration and reporting, and internal audit functions as well as certain marketing functions, in exchange for service fees. MSG Sports also provides certain transition services to the Company, in exchange for service fees; • Sublease agreement, pursuant to which the Company subleases office space to MSG Sports; • Group ticket sales representation agreement, pursuant to which the Company appointed MSG Sports as its sales and service representative to sell group ticket packages related to Company events in exchange for a commission; • Single night rental commission agreement, pursuant to which MSG Sports may, from time to time, sell (or make referrals for sales of) licenses for the use of suites at The Garden for individual Company events in exchange for a commission; • The DDTL Facilities providing for a $110,000 and $90,000 senior unsecured delayed draw term loan facilities, for the Knicks and Rangers, respectively, which were terminated on November 6, 2020; • Aircraft time sharing agreements (discussed below); and • Other agreements with MSG Sports entered into in connection with the Entertainment Distribution such as a distribution agreement, a tax disaffiliation agreement, an employee matters agreement, a trademark license agreement and certain other arrangements. In addition, the Company has various agreements with MSG Networks, including an advertising sales representation agreement and a services agreement (the “MSG Networks Services Agreement”). Pursuant to the advertising sales representation agreement, the Company has the exclusive right and obligation to sell advertising on behalf of MSG Networks in exchange for a commission. Pursuant to the MSG Networks Services Agreement, effective July 1, 2020, the Company provides certain services to MSG Networks, such as information technology, accounts payable and payroll, human resources, and other corporate functions, as well as the executive support services described below, in exchange for service fees. MSG Networks also provides certain services to the Company, in exchange for service fees. Further, the Company shares certain executive support costs, including office space, executive assistants, security and transportation costs, for (i) the Company’s Executive Chairman and Chief Executive Officer with MSG Sports and MSG Networks, (ii) the Company’s President with MSG Sports, and (iii) the Company’s Vice Chairman with MSG Sports, MSG Networks and AMC Networks. The Company is a party to various aircraft arrangements. Pursuant to certain Aircraft Support Services Agreements (the “Support Agreements”), the Company provides certain aircraft support services to entities controlled by (i) James L. Dolan, the Company’s Executive Chairman, Chief Executive Officer and a director, (ii) Charles F. Dolan, a director, and certain of his children, who are siblings of James L. Dolan, specifically: Thomas C. Dolan (a director of the Company), Deborah Dolan-Sweeney, Patrick F. Dolan, Marianne Dolan Weber (a director of the Company), and Kathleen M. Dolan, and (iii) Patrick F. Dolan, the son of Charles F. Dolan and brother of James L. Dolan. The Company entered into reciprocal time sharing/dry lease agreements with each of (i) Quart 2C, LLC (“Q2C”), a company controlled by James L. Dolan and Kristin A. Dolan, his spouse and a director of the Company, and (ii) Charles F. Dolan and Sterling2k LLC (collectively, “CFD”), an entity owned and controlled by Deborah Dolan-Sweeney, the daughter of Charles F. Dolan and the sister of James L. Dolan, pursuant to which the Company has agreed from time to time to make its aircraft available to each of Q2C and CFD, and Q2C, and CFD have agreed from time to time to make their aircraft available to the Company. Pursuant to the terms of the agreements, Q2C and/or CFD may lease on a non-exclusive, “time sharing” basis, the Company’s Gulfstream Aerospace G550 aircraft. The Company is also party to a dry lease agreement with Brighid Air, LLC (“Brighid Air”), a company owned and controlled by Patrick F. Dolan, the son of Charles F. Dolan and the brother of James L. Dolan, pursuant to which the Company may lease on a non-exclusive basis Brighid Air’s Bombardier BD100-1A10 Challenger 350 aircraft (the “Challenger”). In connection with the dry lease agreement, the Company also entered into a Flight Crew Services Agreement (the “Flight Crew Agreement”) with Dolan Family Office, LLC (“DFO”), an entity owned and controlled by Charles F. Dolan, pursuant to which the Company may utilize pilots employed by DFO for purposes of flying the Challenger when the Company is leasing that aircraft under the Company’s dry lease agreement with Brighid Air. The Company and each of MSG Sports, MSG Networks and AMC Networks are party to certain aircraft time sharing agreements, pursuant to which the Company has agreed from time to time to make aircraft available to MSG Sports, MSG Networks and/or AMC Networks for lease on a “time sharing” basis. Additionally, the Company, MSG Sports, MSG Networks and AMC Networks have agreed on an allocation of the costs of certain aircraft and helicopter use by their shared executives. In addition to the aircraft arrangements described above, certain executives of the Company are party to aircraft time sharing agreements, pursuant to which the Company has agreed from time to time to make certain aircraft available for lease on a “time sharing” basis for personal use in exchange for payment of actual expenses of the flight (as listed in the agreement). From time to time the Company enters into arrangements with 605, LLC. James L. Dolan, the Company’s Executive Chairman, Chief Executive Officer and a director, and his spouse, Kristin A. Dolan (a director of the Company), own 50% of 605, LLC. Kristin A. Dolan is also the founder and Chief Executive Officer of 605, LLC. 605, LLC provides audience measurement and data analytics services to the Company and its subsidiaries in the ordinary course of business. As of December 31, 2020 and June 30, 2020, BCE had $637 of notes payable with respect to a loan received by BCE from its noncontrolling interest holder. See Note 12 for further information. The Company has also entered into certain commercial agreements with its nonconsolidated affiliates in connection with MSG Sphere. For the six months ended December 31, 2020 and 2019, the Company recorded approximately $24,989 and $7,370, respectively, of capital expenditures in connection with services provided to the Company under these agreements. As of December 31, 2020 and June 30, 2020, accrued capital expenditures associated with related parties were $9,151 and $2,121, respectively, and are reported under other accrued liabilities in the accompanying consolidated balance sheets. Revenues and Operating Expenses (Credits) 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 and combined statements of operations for the three and six months ended December 31, 2020 and 2019: Three Months Ended December 31, Six Months Ended December 31, 2020 2019 2020 2019 Revenues $ 5,262 $ 984 $ 9,280 $ 7,459 Operating expenses (credits): Revenue sharing expenses $ 15 $ 47,214 $ 96 $ 65,502 Allocation of charges for venue usage to MSG Sports — (20,025) — (22,104) Corporate general and administrative expenses, net — MSG Sports (8,445) (32,720) (18,625) (63,813) Corporate general and administrative expenses, net — MSG Networks (2,334) (2,602) (4,877) (5,204) Advertising expenses — 101 — 144 Other operating expenses, net 693 34 1,533 123 Revenues Revenues from related parties primarily consist of commissions earned in connection with the advertising sales representation agreement pursuant to which the Company has the exclusive right and obligation to sell MSG Networks’ advertising availabilities. In addition, amounts disclosed above for Fiscal Year 2021 include the Company’s revenues from sponsorship sales and representation agreements with MSG Sports in connection with the Entertainment Distribution. In connection with the Entertainment Distribution, the Company entered into Arena License Agreements with MSG Sports that, among other things, require the Knicks and the Rangers to play their home games at The Garden in exchange for fixed monthly license fees over the term of the agreements. The Company accounts for these license fees as operating lease revenue given that the Company provides MSG Sports with the right to direct the use of and obtain substantially all of the economic benefit from The Garden during Knicks and Rangers home games, as further detailed in Note 8. The Arena License Agreements provide that license fees are not required to be paid by MSG Sports during periods when The Garden is unavailable for use due to a force majeure event. As a result of government-mandated suspension of events at The Garden beginning on March 13, 2020 due to the impact of the COVID-19 pandemic, The Garden was not available for use by MSG Sports from the effective date of the Arena License Agreements through the first quarter of Fiscal Year 2021 and, accordingly, the Company did not record any operating lease revenue for this arrangement during the first quarter of Fiscal Year 2021. During a portion of the three months ended December 31, 2020, The Garden reopened for games of the Knicks and the Rangers but fans were not permitted to attend due to governmental restrictions. The Knicks played four games at The Garden in December 2020 and the Company recorded $1,585 of revenues under the Arena License Agreements. In addition, the Company recorded $611 and $1,229 of sublease revenue from related parties during the three and six months ended December 31, 2020, respectively. Revenue Sharing Expenses Prior to the Entertainment Distribution, revenue sharing expenses with MSG Sports included the Company’s suite license arrangements and venue signage and sponsorship agreements entered into by the Company and sales of in-venue food and beverages were recorded on a gross basis. MSG Sports’ share of the Company’s revenue related to such arrangements is recognized as a component of direct operating expenses. After the Entertainment Distribution, revenue sharing expenses include MSG Sports’ share of the Company’s suite license arrangements and certain venue signage agreements entered into by the Company. Allocation of Charges for Venue Usage to MSG Sports For purposes of the Company’s combined financial statements prior to the Entertainment Distribution, the Company allocated to MSG Sports certain expenses for the usage of The Garden, which are reported as a reduction of direct operating expense in the accompanying consolidated and combined statements of operations. Fees recognized by the Company under the Arena License Agreements with MSG Sports for use of The Garden are reported as operating lease revenues in accordance with ASC Topic 842, Leases. Because The Garden was closed by government mandate, the Company did not recognize operating lease revenue under the Arena License Agreements for the three months ended September 30, 2020. During a portion of the three months ended December 31, 2020, The Garden reopened for games of the Knicks and the Rangers and the Company recorded $1,585 of revenues under the Arena License Agreements. Corporate General and Administrative Expenses, net — MSG Sports Prior to the Entertainment Distribution, allocations of corporate overhead and shared services expense were recorded by both the Company and MSG Sports for corporate and operational functions based on direct usage or the relative proportion of revenue, headcount or other measures of the Company or MSG Sports. The Company’s corporate overhead expenses primarily related to centralized functions, including executive management, finance, treasury, tax, internal audit, legal, information technology, human resources and risk management functions. After the Entertainment Distribution, corporate general and administrative expenses, net – MSG Sports reflects charges from the Company to MSG Sports pursuant to the TSA of $8,710 and $19,773 for the three and six months ended December 31, 2020, respectively. Corporate General and Administrative Expenses, net — MSG Networks The Company’s corporate overhead expenses that are charged to MSG Networks are primarily related to centralized functions, including executive compensation, finance, treasury, tax, internal audit, legal, information technology, human resources and risk management functions. Corporate general and administrative expenses, net – MSG Networks reflects charges from the Company to MSG Networks under the MSG Networks Services Agreement of $2,374 and $2,641 for the three months ended December 31, 2020 and 2019, respectively. For the six months ended December 31, 2020 and 2019, corporate general and administrative expenses, net – MSG Networks reflects charges from the Company to MSG Networks under the MSG Networks Services Agreement of $4,748 and $5,282, respectively. Advertising Expenses The Company incurs advertising expenses for services rendered by its related parties, primarily MSG Networks, most of which are related to the utilization of advertising and promotional benefits by the Company. Other Operating Expenses, net The Company and its related parties enter into transactions with each other in the ordinary course of business. Amounts charged to the Company for other transactions with its related parties are net of amounts charged by the Company to the Knickerbocker Group, LLC, an entity owned by James L. Dolan, the Executive Chairman, Chief Executive Officer and a director of the Company, for office space and the cost of certain technology services. In addition, other operating expenses include net charges relating to (i) reciprocal aircraft arrangements between the Company and each of Q2C and CFD and (ii) time sharing agreements with MSG Sports, MSG Networks and AMC Networks. Nonoperating Expense Miscellaneous expense, net includes a contributory charge to MSG Sports related to the participation of MSG Sports and corporate employees in the Shared Plans and Postretirement Plan, of $56 and $111 for the three and six months ended December 31, 2019, respectively. Cash Management MSG Sports uses a centralized approach to cash management and financing of operations. The Company and other MSG Sports or MSG Sports subsidiaries’ cash was available for use and was regularly “swept” historically. Transfers of cash both to and from MSG Sports are included as components of MSG Sports Investment on the combined statements of divisional equity and redeemable noncontrolling interests. The main components of the net transfers (to)/from MSG Sports are cash pooling/general financing activities, various expense allocations to/from MSG Sports, and receivables/payables from/to MSG Sports deemed to be effectively settled upon the distribution of the Company by MSG Sports. Related Party Transactions In connection with the Entertainment Distribution, the Company and MSG Sports entered into arrangements with respect to transition services and a number of ongoing commercial relationships, including Arena License Agreements with MSG Sports requiring the Knicks and the Rangers to play their home games at The Garden. Additionally, on April 17, 2020, subsidiaries of MSG Sports, MSG NYK Holdings, LLC and MSG NYR Holdings, LLC, entered into the DDTL Facilities with a wholly-owned subsidiary of the Company as lender. The DDTL Facilities provided for a $110,000 and $90,000 senior unsecured delayed draw term loan facilities, for MSG NYK Holdings, LLC and MSG NYR Holdings, LLC, respectively. On November 6, 2020, each of MSG NYK Holdings, LLC and MSG NYR Holdings, LLC delivered notice to the Company that they had secured third-party debt and, as a result, all commitments under their applicable DDTL Facilities were terminated. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure | Segment Information The Company is comprised of two reportable segments: Entertainment and Tao Group Hospitality. In determining its reportable segments, the Company assessed the guidance of ASC 280-10-50-1, which provides the definition of a reportable segment. In accordance with the FASB’s guidance, the Company takes into account whether two or more operating segments can be aggregated together as one reportable segment as well as the type of discrete financial information that is available and regularly reviewed by its CODM. The Company has evaluated this guidance and determined that there are two reportable segments. In addition, the Company incurs non-capitalizable content development and technology costs associated with the Company’s MSG Sphere initiative, which are reported in “Entertainment.” In addition to event-related operating expenses, Entertainment also includes other expenses such as (a) corporate and supporting department operating costs that are attributable to MSG Sphere development and (b) non-event related operating expenses for the Company’s venues such as (i) rent for the Company’s leased venues, (ii) real estate taxes, (iii) insurance, (iv) utilities, (v) repairs and maintenance, (vi) labor related to the overall management of the venues, and (vii) depreciation and amortization expense related to the Company’s performance venues and certain corporate property, equipment and leasehold improvements. Additionally, the Company does not allocate any purchase accounting adjustments related to business acquisitions to the reporting segments. The Company evaluates segment performance based on several factors, of which the key financial measure is operating income (loss) before (i) adjustments to remove the impact of non-cash straight-line leasing revenue associated with the Arena License Agreements with MSG Sports, (ii) depreciation, amortization and impairments of property and equipment, goodwill and intangible assets, (iii) amortization for capitalized cloud computing arrangement costs (see Note 2 for further details), (iv) share-based compensation expense or benefit, (v) restructuring charges or credits, and (vi) gains or losses on sales or dispositions of businesses and associated settlements, which is referred to as adjusted operating income (loss), a non-GAAP measure. In addition to excluding the impact of the items discussed above, the impact of purchase accounting adjustments related to business acquisitions is also excluded in evaluating the Company’s consolidated and combined adjusted operating income (loss). Because it is based upon operating income (loss), adjusted operating income (loss) also excludes interest expense (including cash interest expense) and other non-operating income and expense items. Management believes that the exclusion of share-based compensation expense or benefit allows investors to better track the performance of the various operating units of the Company’s business without regard to the settlement of an obligation that is not expected to be made in cash. In addition, the Company believes that given the length of the Arena License Agreements and resulting magnitude of the difference in leasing revenue recognized and cash revenue received, the exclusion of non-cash leasing revenue provides investors with a clearer picture of the Company's operating performance. The Company believes adjusted operating income (loss) is an appropriate measure for evaluating the operating performance of its business segments and the Company on a consolidated and combined basis. Adjusted operating income (loss) and similar measures with similar titles are common performance measures used by investors and analysts to analyze the Company’s performance. The Company uses revenues and adjusted operating income (loss) measures as the most important indicators of its business performance, and evaluates management’s effectiveness with specific reference to these indicators. Adjusted operating income (loss) should be viewed as a supplement to and not a substitute for operating income (loss), net income (loss), cash flows from operating activities, and other measures of performance and/or liquidity presented in accordance with GAAP. Since adjusted operating income (loss) is not a measure of performance calculated in accordance with GAAP, this measure may not be comparable to similar measures with similar titles used by other companies. The Company has presented the components that reconcile operating income (loss), the most directly comparable GAAP financial measure, to adjusted operating income (loss). Information as to the operations of the Company’s reportable segments is set forth below. Three Months Ended December 31, 2020 Tao Group Hospitality Purchase Inter-segment eliminations Total Revenues $ 12,669 $ 10,491 $ — $ (23) $ 23,137 Direct operating expenses 23,409 10,980 924 151 35,464 Selling, general and administrative expenses 65,730 9,131 — 89 74,950 Depreciation and amortization 19,246 1,563 3,066 — 23,875 Restructuring charges 1,372 — — — 1,372 Operating loss $ (97,088) $ (11,183) $ (3,990) $ (263) $ (112,524) Loss in equity method investments (1,568) Interest income 349 Interest expense (7,675) Miscellaneous expense, net (a) (7,362) Loss from operations before income taxes $ (128,780) Reconciliation of operating loss to adjusted operating loss: Operating loss $ (97,088) $ (11,183) $ (3,990) $ (263) $ (112,524) Add back: Non-cash portion of arena license fees from MSG Sports (1,176) — — — (1,176) Share-based compensation 22,374 1,188 — — 23,562 Depreciation and amortization 19,246 1,563 3,066 — 23,875 Restructuring charges 1,372 — — — 1,372 Other purchase accounting adjustments — — 924 — 924 Adjusted operating loss $ (55,272) $ (8,432) $ — $ (263) $ (63,967) Other information: Capital expenditures $ 106,945 $ 293 $ — $ — $ 107,238 Three Months Ended December 31, 2019 Tao Group Hospitality Purchase Inter-segment eliminations Total Revenues $ 325,370 $ 69,104 $ — $ (402) $ 394,072 Direct operating expenses 168,241 41,159 1,068 (274) 210,194 Selling, general and administrative expenses 68,869 18,038 — (53) 86,854 Depreciation and amortization 21,128 2,411 3,895 — 27,434 Operating income (loss) $ 67,132 $ 7,496 $ (4,963) $ (75) $ 69,590 Loss in equity method investments (1,170) Interest income 6,268 Interest expense (144) Miscellaneous income, net (a) 9,355 Income from operations before income taxes $ 83,899 Reconciliation of operating income (loss) to adjusted operating income (loss): Operating income (loss) $ 67,132 $ 7,496 $ (4,963) $ (75) $ 69,590 Add back: Share-based compensation 10,373 — — — 10,373 Depreciation and amortization 21,128 2,411 3,895 — 27,434 Other purchase accounting adjustments — — 1,068 — 1,068 Adjusted operating income (loss) $ 98,633 $ 9,907 $ — $ (75) $ 108,465 Other information: Capital expenditures $ 120,529 $ 1,139 $ — $ — $ 121,668 Six Months Ended December 31, 2020 Tao Group Hospitality Purchase Inter-segment eliminations Total Revenues $ 20,224 $ 17,712 $ — $ (421) $ 37,515 Direct operating expenses 47,024 20,808 1,848 (57) 69,623 Selling, general and administrative expenses 118,380 16,734 — 161 135,275 Depreciation and amortization 41,260 2,609 6,588 — 50,457 Restructuring charges 21,299 — — — 21,299 Operating loss $ (207,739) $ (22,439) $ (8,436) $ (525) $ (239,139) Loss in equity method investments (3,264) Interest income 644 Interest expense (8,084) Miscellaneous income, net (a) 26,862 Loss from operations before income taxes $ (222,981) Reconciliation of operating loss to adjusted operating loss: Operating loss $ (207,739) $ (22,439) $ (8,436) $ (525) $ (239,139) Add back: Non-cash portion of arena license fees from MSG Sports (1,176) — — — (1,176) Share-based compensation 32,807 2,284 — — 35,091 Depreciation and amortization 41,260 2,609 6,588 — 50,457 Restructuring charges 21,299 — — — 21,299 Other purchase accounting adjustments — — 1,848 — 1,848 Adjusted operating loss $ (113,549) $ (17,546) $ — $ (525) $ (131,620) Other information: Capital expenditures $ 218,344 $ 952 $ — $ — $ 219,296 Six Months Ended December 31, 2019 Tao Group Hospitality Purchase Inter-segment eliminations Total Revenues $ 445,022 $ 127,721 $ — $ (708) $ 572,035 Direct operating expenses 263,201 76,826 2,182 (493) 341,716 Selling, general and administrative expenses 139,218 35,462 6 (65) 174,621 Depreciation and amortization 42,915 4,590 6,749 — 54,254 Operating income (loss) $ (312) $ 10,843 $ (8,937) $ (150) $ 1,444 Loss in equity method investments (2,643) Interest income 13,583 Interest expense (1,249) Miscellaneous income, net (a) 16,386 Income from operations before income taxes $ 27,521 Reconciliation of operating income (loss) to adjusted operating income (loss): Operating income (loss) $ (312) $ 10,843 $ (8,937) $ (150) $ 1,444 Add back: Share-based compensation 20,430 28 — — 20,458 Depreciation and amortization 42,915 4,590 6,749 — 54,254 Other purchase accounting adjustments — — 2,188 — 2,188 Adjusted operating income (loss) $ 63,033 $ 15,461 $ — $ (150) $ 78,344 Other information: Capital expenditures $ 205,686 $ 2,342 $ — $ — $ 208,028 _________________ (a) Miscellaneous income (expense), net includes the following: Three Months Ended Six Months Ended December 31, December 31, 2020 2019 2020 2019 Unrealized and unrealized gain (loss) on equity investments with readily determinable fair value $ (7,227) $ 9,432 $ 26,431 $ 14,725 Non-service cost components of net periodic pension and postretirement benefit costs 178 (317) 294 (626) Dividend income from equity investments — 240 — 481 Measurement alternative adjustments for equity investments without readily determinable fair value — — — (532) Others, net. (For the six months ended December 31, 2019, the balance primarily reflected the impact of the elimination of Tao Group Hospitality’s three-month lag in Fiscal Year 2020) (313) — 137 2,338 Total $ (7,362) $ 9,355 $ 26,862 $ 16,386 Substantially all revenues and assets of the Company’s reportable segments are attributed to or located in the United States. A majority of the Company’s revenue and assets are concentrated in the New York City metropolitan area. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 6 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation and Combination For the periods prior to the Entertainment Distribution, the combined financial statements include assets and liabilities that were historically held at Former Parent’s corporate level but were specifically identifiable or otherwise attributable to the Company. All intercompany transactions between the Company and Former Parent have been included in the combined financial statements as components of MSG Sports’ investment. Expenses related to corporate allocations prior to the Entertainment Distribution were considered to be effectively settled in the combined financial statements at the time the transaction was recorded, with the offset recorded against MSG Sports’ investment. All significant intracompany transactions and accounts within the Company's consolidated and combined financial statements have been eliminated. After the Entertainment Distribution, the consolidated financial statements of the Company include the accounts of Madison Square Garden Entertainment Corp. and its subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. In addition, the consolidated and combined financial statements of the Company include the accounts from Tao Group Hospitality and BCE, in which the Company has controlling voting interests. The Company’s consolidation criteria are based on authoritative accounting guidance for voting interest or variable interest entities. Tao Group Hospitality and BCE are consolidated with the equity owned by other stockholders shown as redeemable or nonredeemable noncontrolling interests in the accompanying consolidated balance sheets, and the other stockholders’ portion of net income (loss) and other comprehensive income (loss) shown as net income (loss) or comprehensive income (loss) attributable to redeemable or nonredeemable noncontrolling interests in the accompanying consolidated and combined statements of operations and consolidated and combined statements of comprehensive income (loss), respectively. |
Use of Estimates | Use of Estimates The preparation of the accompanying consolidated and combined financial statements in conformity with GAAP requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amount of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Such estimates include the valuation of accounts receivable, investments, goodwill, intangible assets, other long-lived assets, tax accruals and other liabilities. In addition, estimates are used in revenue recognition, income tax, performance and share-based compensation, depreciation and amortization, litigation matters and other matters, as well as in the valuation of contingent consideration and noncontrolling interests resulting from business combination transactions. Management believes its use of estimates in the financial statements to be reasonable. Management evaluates its estimates on an ongoing basis using historical experience and other factors, including the general economic environment and actions it may take in the future. The Company adjusts such estimates when facts and circumstances dictate. However, these estimates may involve significant uncertainties and judgments and cannot be determined with precision. In addition, these estimates are based on management’s best judgment at a point in time and, as such, these estimates may ultimately differ from actual results. Changes in estimates resulting from weakness in the economic environment or other factors beyond the Company’s control could be material and would be reflected in the Company’s financial statements in future periods. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Recently Adopted Accounting Pronouncements In June 2016 , the FASB issued Accounting Standards Update (“ ASU ”) No. 2016-13, Financial Instruments — Credit Losses. ASU No. 2016-13 replaced the incurred loss impairment methodology in previous GAAP with a methodology that requires the reflection of expected credit losses and consideration of a broader range of reasonable and supportable information to determine credit loss estimates at inception. In May 2019, the FASB issued ASU No. 2019-05, Targeted Transition Relief, which amends ASC Topic 326 to provide an option to irrevocably elect to measure certain individual financial assets at fair value instead of amortized cost. In November 2019, FASB issued ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments — Credit Losses , to provide clarification guidance in a number of areas, including: (i) expected recoveries for purchased financial assets with credit deterioration, (ii) transition relief for troubled debt restructuring, (iii) disclosures related to accrued interest receivables, and (iv) financial assets secured by collateral maintenance provisions. For most financial instruments, the standard requires the use of a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses, which will generally result in the earlier recognition of credit losses on financial instruments. In February 2020, the FASB issued ASU No. 2020-02, Financial Instruments — Credit Losses and Leases, which includes amendments pursuant to SEC Staff Accounting Bulletin No. 119. This standard was adopted by the Company in the first quarter of Fiscal Year 2021. The adoption of the standard did not have an impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement as part of the FASB’s broader disclosure framework project. ASU No. 2018-13 removes, modifies and adds certain disclosures providing greater focus on requirements that clearly communicate the most important information to the users of the financial statements with respect to fair value measurements. Most of the disclosure requirements in ASU No. 2018-13 are required to be applied on a retrospective basis except for the guidance related to (i) unrealized gains and losses included in other comprehensive income, (ii) disclosure related to range and weighted average Level 3 unobservable inputs and (iii) narrative disclosure requirements on measurement uncertainty, which are required to be applied on a prospective basis. This standard was adopted by the Company in the first quarter of Fiscal Year 2021. The adoption of the standard did not have an impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans — General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans. ASU No. 2018-14 removes certain disclosures that are not considered cost beneficial, clarifies certain required disclosures and adds additional disclosures. This standard was adopted by the Company in the first quarter of Fiscal Year 2021. The adoption of the standard did not have an impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles — Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract . ASU No. 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance also specifies that the balance sheet, income statement, and statement of cash flows presentation of capitalized implementation costs and the related amortization should align with the presentation of the hosting (service) element of the arrangement. This standard was adopted by the Company in the first quarter of Fiscal Year 2021. The adoption of the standard did not have an impact on the Company’s consolidated financial statements. However, to the extent future costs incurred in a cloud computing arrangement are capitalizable, the corresponding amortization will be included in “Direct operating expenses” or “Selling, general and administrative expenses” in the consolidated statements of operations depending on the nature of the related arrangement, rather than “Depreciation and amortization.” In November 2018, the FASB issued ASU No. 2018-17, Targeted Improvements to Related Party Guidance for Variable Interest Entities . ASU No. 2018-17 amends the variable interest entities (“VIE”) guidance to align the evaluation of a decision maker’s or service provider’s fee in assessing a variable interest with the guidance in the primary beneficiary test. Specifically, indirect interests held by a related party that is under common control are to be considered on a proportionate basis, rather than in their entirety, when assessing whether the fee qualifies as a variable interest. The proportionate basis approach is consistent with the treatment of indirect interests held by a related party under common control when evaluating the primary beneficiary of a VIE. When a decision maker or service provider has an interest in a related party, regardless of whether they are under common control, they consider that related party’s interest in a VIE on a proportionate basis throughout the VIE model, for both the assessment of a variable interest and the determination of a primary beneficiary. This standard was adopted by the Company in the first quarter of Fiscal Year 2021. The adoption of the standard did not have an impact on the Company’s consolidated financial statements. In November 2018, the FASB issued ASU No. 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 . ASU No. 2018-18 clarifies that certain transactions between participants in a collaborative arrangement should be accounted for under ASC Topic 606 when the counterparty is a customer. In addition, ASU No. 2018-18 precludes an entity from presenting consideration from a transaction in a collaborative arrangement as revenue from contracts with customers if the counterparty is not a customer for that transaction. This standard was adopted by the Company in the first quarter of Fiscal Year 2021. The adoption of the standard did not have an impact on the Company’s consolidated financial statements. In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments — Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825 — Financial Instruments . This ASU provides narrow-scope amendments to help apply these recent standards. This standard was adopted by the Company in the first quarter of Fiscal Year 2021 in connection with the adoption of ASU No. 2016-13 discussed above. The adoption of the standard did not have an impact on the Company’s consolidated financial statements. In November 2019, the FASB issued ASU No. 2019-08, Compensation — Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Codification Improvements — Share-Based Consideration Payable to a Customer. This ASU requires that share-based payment awards issued to a customer in connection with a revenue arrangement be recorded as a reduction of the transaction price in revenue. The amount recorded as a reduction of the transaction price is measured using the grant-date fair value of the award and is classified in accordance with ASC Topic 718. Changes in the measurement of the share-based payments after the grant date that are due to the form of the consideration are not included in the transaction price and are recorded elsewhere in the statement of operations. The award is measured and classified under ASC Topic 718 for its entire life, unless the award is modified after it vests and the grantee is no longer a customer. This standard was adopted by the Company in the first quarter of Fiscal Year 2021. The adoption of the standard did not have an impact on the Company’s consolidated financial statements. In January 2020, the FASB issued ASU No. 2020-01, Investments-Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. The amendments in this ASU clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying the measurement alternative in accordance with ASC Topic 321 immediately before applying or upon discontinuing the equity method. In addition, the amendments clarify the accounting for certain forward contracts and purchased options accounted for under ASC Topic 815. This standard was adopted by the Company in the first quarter of Fiscal Year 2021. The adoption of the standard did not have an impact on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . This ASU eliminates certain exceptions to the general approach in ASC Topic 740 and includes methods of simplification to the existing guidance. The new guidance is effective for the Company in the first quarter of fiscal year 2022, with early adoption permitted. The adoption of the standard is not expected to have a material impact on the Company’s consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This ASU provides temporary optional expedients and exceptions to the guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from the London Interbank Offered Rate and other interbank offered rates to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, which refines the scope of Topic 848 and clarifies some of its guidance as part of the FASB’s monitoring of global reference rate activities. The new guidance was effective upon issuance, and the Company is allowed to elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the impact this standard will have on its consolidated financial statements. |
Revenue Recognition (Policies)
Revenue Recognition (Policies) | 6 Months Ended |
Dec. 31, 2020 | |
Revenue Recognition [Abstract] | |
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. |
Investment and Loans to Noncons
Investment and Loans to Nonconsolidated Affiliates (Policies) | 6 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Fair Value Measurement, Policy [Policy Text Block] | In accordance with the ASC Topic 321, Investments - Equity Securities, the Company applies the measurement alternative to its equity investments without readily determinable fair values. Under the measurement alternative, equity securities without readily determinable fair values are accounted for at cost, adjusted for impairment and changes resulting from observable price fluctuations in orderly transactions for the identical or a similar investment of the same issuer, which is classified within Level III of the fair value hierarchy. |
Leases (Policies)
Leases (Policies) | 6 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lessee, Leases [Policy Text Block] | The Company’s leases primarily consist of certain live-performance venues, entertainment dining and nightlife venues, corporate office space, storage and, to a lesser extent, office and other equipment. The Company determines whether an arrangement contains a lease at the inception of the arrangement. If a lease is determined to exist, the lease term is assessed based on the date when the underlying asset is made available by the lessor for the Company’s use. The Company’s assessment of the lease term reflects the non-cancellable term of the lease, inclusive of any rent-free periods and/or periods covered by early-termination options which the Company is reasonably certain not to exercise, as well as periods covered by renewal options which the Company is reasonably certain to exercise. The Company also determines lease classification as either operating or finance at lease commencement, which governs the pattern of expense recognition and the presentation reflected in the consolidated and combined statements of operations and consolidated and combined statements of cash flows over the lease term. For leases with a term exceeding 12 months, a lease liability is recorded on the Company’s consolidated balance sheet at lease commencement reflecting the present value of the fixed minimum payment obligations over the lease term. A corresponding ROU asset equal to the initial lease liability is also recorded, adjusted for any prepaid rent and/or initial direct costs incurred in connection with execution of the lease and reduced by any lease incentives received. The Company includes fixed payment obligations related to non-lease components in the measurement of ROU assets and lease liabilities, as the Company has elected to account for lease and non-lease components together as a single lease component. ROU assets associated with finance leases are presented separate from ROU assets associated with operating leases and are included within Property and equipment, net on the Company’s consolidated balance sheet. For purposes of measuring the present value of the Company’s fixed payment obligations for a given lease, the Company uses its incremental borrowing rate, determined based on information available at lease commencement, as rates implicit in the underlying leasing arrangements are typically not readily determinable. The Company’s incremental borrowing rate reflects the rate it would pay to borrow on a secured basis and incorporates the term and economic environment surrounding the associated lease. |
Lessor, Leases [Policy Text Block] | In connection with the Entertainment Distribution, the Company entered into Arena License Agreements with MSG Sports that, among other things, require the Knicks and the Rangers to play their home games at The Garden in exchange for fixed monthly license fees over the term of the agreements. The Company accounts for these license fees as operating lease revenue given that the Company provides MSG Sports with the right to direct the use of and obtain substantially all of the economic benefit from The Garden during Knicks and Rangers home games. Operating lease revenue is recognized on a straight-line basis over the lease term, adjusted pursuant to the terms of the Arena License Agreements. In the case of the Arena License Agreements, the lease terms relate to non-consecutive periods of use when MSG Sports uses The Garden for their professional sports teams’ home games, and operating lease revenue is therefore recognized ratably as events occur. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue | The following table disaggregates the Company’s revenue by major source and reportable segment based upon the timing of transfer of goods or services to the customer, in accordance with ASC Subtopic 606-10-50-5, for the three and six months ended December 31, 2020 and 2019: Three Months Ended December 31, 2020 Entertainment Tao Group Eliminations Total Event-related and entertainment dining and nightlife offerings (a) $ 1,002 $ 9,179 $ (43) $ 10,138 Sponsorship, signage and suite licenses (b) 6,064 414 21 6,499 Other (c) 3,270 898 (1) 4,167 Total revenues from contracts with customers $ 10,336 $ 10,491 $ (23) $ 20,804 Three Months Ended December 31, 2019 Entertainment Tao Group Eliminations Total Event-related and entertainment dining and nightlife offerings (a) $ 242,545 $ 63,256 $ (83) $ 305,718 Sponsorship, signage and suite licenses (b) 74,630 39 (220) 74,449 Other (c) 8,195 5,809 (99) 13,905 Total revenues from contracts with customers $ 325,370 $ 69,104 $ (402) $ 394,072 Six Months Ended December 31, 2020 Entertainment Tao Group Eliminations Total Event-related and entertainment dining and nightlife offerings (a) $ 1,729 $ 14,839 $ (43) $ 16,525 Sponsorship, signage and suite licenses (b) 8,524 486 (211) 8,799 Other (c) 6,890 2,387 (167) 9,110 Total revenues from contracts with customers $ 17,143 $ 17,712 $ (421) $ 34,434 Six Months Ended December 31, 2019 Entertainment Tao Group Eliminations Total Event-related and entertainment dining and nightlife offerings (a) $ 325,259 $ 115,597 $ (96) $ 440,760 Sponsorship, signage and suite licenses (b) 110,068 223 (437) 109,854 Other (c) 9,695 11,901 (175) 21,421 Total revenues from contracts with customers $ 445,022 $ 127,721 $ (708) $ 572,035 _________________ (a) Consists of (i) ticket sales and other ticket-related revenues, (ii) Tao Group Hospitality’s entertainment dining and nightlife offerings, (iii) venue license fees from third-party promoters, and (iv) food, beverage and merchandise sales. Event-related revenues and entertainment dining and nightlife offerings are recognized at a point in time. As such, these revenues have been included in the same category in the table above. (b) See Note 4 to the Company’s audited consolidated and combined financial statements and notes thereto for the year ended June 30, 2020 included in the Company’s Annual Report on Form 10-K for further details on the pattern of recognition of sponsorship, signage and suite license revenues. (c) Primarily consists of (i) revenues from sponsorship sales and representation agreements with MSG Sports , (ii) advertising commission revenue from MSG Networks Inc. (“MSG Networks”), and (ii) Tao Group Hospitality’s managed venue revenues. In addition to the disaggregation of the Company’s revenue by major source based upon the timing of transfer of goods or services to the customer disclosed above, the following table disaggregates the Company’s consolidated and combined revenues by type of goods or services in accordance with the required entity-wide disclosure requirements of FASB ASC Subtopic 280-10-50-38 to 40 and the disaggregation of revenue required disclosures in accordance with ASC Subtopic 606-10-50-5 for the three and six months ended December 31, 2020 and 2019: Three Months ended December 31, 2020 Entertainment Tao Group Eliminations Total Ticketing and venue license fee revenues (a) $ 968 $ — $ — $ 968 Sponsorship and signage, suite, and advertising commission revenues 9,130 — 21 9,151 Revenues from entertainment dining and nightlife offerings (b) — 10,491 (44) 10,447 Food, beverage and merchandise revenues — — — — Other 238 — — 238 Total revenues from contracts with customers $ 10,336 $ 10,491 $ (23) $ 20,804 Three Months ended December 31, 2019 Entertainment Tao Group Eliminations Total Ticketing and venue license fee revenues (a) $ 199,969 $ — $ — $ 199,969 Sponsorship and signage, suite, and advertising commission revenues 85,250 — (220) 85,030 Revenues from entertainment dining and nightlife offerings (b) — 69,104 (83) 69,021 Food, beverage and merchandise revenues 34,470 — — 34,470 Other 5,681 — (99) 5,582 Total revenues from contracts with customers $ 325,370 $ 69,104 $ (402) $ 394,072 Six Months Ended December 31, 2020 Entertainment Tao Group Eliminations Total Ticketing and venue license fee revenues (a) $ 1,698 $ — $ — $ 1,698 Sponsorship and signage, suite, and advertising commission revenues 14,989 — (211) 14,778 Revenues from entertainment dining and nightlife offerings (b) — 17,712 (210) 17,502 Food, beverage and merchandise revenues — — — — Other 456 — — 456 Total revenues from contracts with customers $ 17,143 $ 17,712 $ (421) $ 34,434 Six Months Ended December 31, 2019 Entertainment Tao Group Eliminations Total Ticketing and venue license fee revenues (a) $ 261,116 $ — $ — $ 261,116 Sponsorship and signage, suite, and advertising commission revenues 123,395 — (437) 122,958 Revenues from entertainment dining and nightlife offerings (b) — 127,721 (96) 127,625 Food, beverage and merchandise revenues 50,741 — — 50,741 Other 9,770 — (175) 9,595 Total revenues from contracts with customers $ 445,022 $ 127,721 $ (708) $ 572,035 _________________ (a) Amounts include ticket sales, including other ticket-related revenue, and venue license fees from the Company’s events such as (i) concerts, (ii) the presentation of the Christmas Spectacular, and (iii) other live entertainment and sporting events. (b) Primarily consist of revenues from (i) entertainment dining and nightlife offerings and (ii) venue management agreements. |
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, 2020 and June 30, 2020: December 31, June 30, 2020 2020 Receivables from contracts with customers, net (a) $ 75,367 $ 59,828 Contract assets, current (b) 8,718 3,850 Deferred revenue, including non-current portion (c) 207,770 193,112 _________________ (a) Receivables from contracts with customers, which are reported in Accounts receivable, net and Net related party receivables in the Company’s consolidated balance sheets, represent the Company’s unconditional rights to consideration under its contracts with customers. As of December 31, 2020 and June 30, 2020, the Company’s receivables from contracts with customers above included $1,656 and $2,644, respectively, related to various related parties. See Note 17 for further details on related party arrangements. (b) Contract assets, which are reported as Other current assets in the Company’s consolidated balance sheets, primarily relate to the Company’s rights to consideration for goods or services transferred to customers, 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. |
Revenue, Remaining Performance Obligation | The following table depicts the estimated revenue expected to be recognized, based on current projections and expectations of our business resuming, in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of December 31, 2020. This primarily relates to performance obligations under sponsorship and suite license arrangements that have original expected durations longer than one year. 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. Fiscal Year 2021 (remainder) $ 8,253 Fiscal Year 2022 114,652 Fiscal Year 2023 77,938 Fiscal Year 2024 54,456 Fiscal Year 2025 45,422 Thereafter 53,688 $ 354,409 |
Restructuring and Related Act_2
Restructuring and Related Activities (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The Company’s restructuring accrual activity through December 31, 2020 is as follows: June 30, 2020 $ — Restructuring charges 21,299 Payments (19,442) December 31, 2020 $ 1,857 |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Cash, Cash Equivalents and Restricted Cash [Abstract] | |
Schedule Of Cash, Cash Equivalents, Restricted Cash And Restricted Cash Equivalents [Table Text Block] | 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 $ 1,451,352 $ 906,555 $ 1,009,127 $ 1,082,055 Restricted cash (a) 26,207 17,749 17,898 10,010 Cash, cash equivalents and restricted cash on the consolidated and combined statements of cash flows $ 1,477,559 $ 924,304 $ 1,027,025 $ 1,092,065 _________________ (a) See Note 2 to the Company’s audited consolidated and combined financial statements and notes thereto for the year ended June 30, 2020 included in the Company’s Annual Report on Form 10-K for more information regarding the nature of restricted cash. In addition, the restricted cash balance as of December 31, 2020 |
Investments and Loans to Nonc_2
Investments and Loans to Nonconsolidated Affiliates (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments, Joint Ventures and Cost Method Investments [Abstract] | |
Cost and Equity Method Investments | The Company’s investments in nonconsolidated affiliates, which are accounted for under the equity method of accounting and equity investments without readily determinable fair values in accordance with ASC Topic 323, Investments - Equity Method and Joint Ventures and ASC Topic 321, Investments - Equity Securities , respectively, consisted of the following: Ownership Percentage Investment December 31, 2020 Equity method investments: SACO Technologies Inc. (“SACO”) 30 % $ 38,232 Others 7,894 Equity securities without readily determinable fair values (a) 3,500 Total investments in nonconsolidated affiliates $ 49,626 June 30, 2020 Equity method investments: SACO 30 % $ 40,461 Others 8,661 Equity securities without readily determinable fair values (a) 3,500 Total investments in nonconsolidated affiliates $ 52,622 _________________ (a) In accordance with the ASC Topic 321, Investments - Equity Securities, the Company applies the measurement alternative to its equity investments without readily determinable fair values. Under the measurement alternative, equity securities without readily determinable fair values are accounted for at cost, adjusted for impairment and changes resulting from observable price fluctuations in orderly transactions for the identical or a similar investment of the same issuer, which is classified within Level III of the fair value hierarchy. For the three and six months ended December 31, 2020, the Company did not have impairment charges or change in carrying value recorded to its equity securities without readily determinable fair values. For the six months ended December 31, 2019 , the Company recorded an impairment charge of $533 to an equity investment without readily determinable fair value. |
Equity Securities with Readily Determinable Fair Value | The cost basis and the carrying fair value of these investments, which are reported under Other assets in the accompanying consolidated balance sheets as of December 31, 2020 and June 30, 2020, are as follows: December 31, 2020 Equity Investment with Readily Determinable Fair Values Shares / Units Cost Basis Carrying value Townsquare common stock 3,208 $ 23,222 $ 21,366 DraftKings common stock 894 6,209 41,647 Total $ 29,431 $ 63,013 June 30, 2020 Equity Investment with Readily Determinable Fair Values Shares / Units Cost Basis Carrying value Townsquare common stock 3,208 $ 23,222 $ 14,340 DraftKings common stock 1,280 8,798 42,589 DraftKings warrants 9 22 132 Total $ 32,042 $ 57,061 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Property and Equipment [Abstract] | |
Property, Plant and Equipment | As of December 31, 2020 and June 30, 2020, property and equipment consisted of the following assets: December 31, June 30, Land $ 149,771 $ 141,638 Buildings 994,826 993,206 Equipment 361,948 345,314 Aircraft 38,090 38,090 Furniture and fixtures 42,059 42,389 Leasehold improvements 169,648 170,585 Construction in progress 895,542 685,382 2,651,884 2,416,604 Less accumulated depreciation and amortization (814,812) (770,489) $ 1,837,072 $ 1,646,115 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Summary of ROU Assets and Lease Liabilities | The following table summarizes the ROU assets and lease liabilities recorded on the Company’s consolidated balance sheets as of December 31, 2020 and June 30, 2020: Line Item in the Company’s Consolidated Balance Sheet December 31, June 30, Right-of-use assets: Operating leases Right-of-use lease assets $ 198,464 $ 220,328 Lease liabilities: Operating leases, current Operating lease liabilities, current $ 54,963 $ 53,388 Operating leases, noncurrent Operating lease liabilities, noncurrent 155,440 174,219 Total lease liabilities $ 210,403 $ 227,607 |
Lease, Cost | The following table summarizes the activity recorded within the Company’s consolidated and combined statements of operations for the three and six months ended December 31, 2020 and 2019: Three Months Ended Line Item in the Company’s Consolidated and Combined Statement of Operations December 31, 2020 2019 Operating lease cost Direct operating expenses $ 6,545 $ 11,333 Operating lease cost Selling, general and administrative expenses 5,029 5,102 Short-term lease cost Direct operating expenses — 12 Variable lease cost Direct operating expenses 271 1,696 Variable lease cost Selling, general and administrative expenses 15 14 Total lease cost $ 11,860 $ 18,157 Six Months Ended Line Item in the Company’s Consolidated and Combined Statement of Operations December 31, 2020 2019 Operating lease cost Direct operating expenses $ 12,952 $ 19,574 Operating lease cost Selling, general and administrative expenses 10,124 9,917 Short-term lease cost Direct operating expenses — 348 Variable lease cost Direct operating expenses 547 3,230 Variable lease cost Selling, general and administrative expenses 38 27 Total lease cost $ 23,661 $ 33,096 |
Operating Lease Maturity Schedule | Maturities of operating lease liabilities as of December 31, 2020 are as follows: Fiscal Year 2021 (remainder) $ 25,115 Fiscal Year 2022 60,298 Fiscal Year 2023 56,801 Fiscal Year 2024 38,529 Fiscal Year 2025 23,356 Thereafter 90,972 Total lease payments 295,071 Less imputed interest 84,668 Total lease liabilities (a) $ 210,403 ________________ |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying Amount of Goodwill by Reportable Segment | See Note 10 to the Company’s audited consolidated and combined financial statements and notes thereto for the year ended June 30, 2020 included in the Company’s Annual Report on Form 10-K regarding the details of the $88,583 goodwill impairment in the Tao Group Hospitality segment in Fiscal Year 2020. The carrying amount of goodwill as of December 31, 2020 and June 30, 2020 was $74,309, all of which is within the Entertainment segment. During the first quarter of Fiscal Year 2021, the Company performed its annual impairment test of goodwill and determined that there were no impairments of goodwill identified as of the impairment test date. |
Schedule of Indefinite-Lived Intangible Assets | The carrying amount of indefinite-lived intangible assets, all of which are within the Entertainment segment, as of December 31, 2020 and June 30, 2020 were as follows: Trademarks $ 61,881 Photographic related rights 1,920 Total $ 63,801 |
Schedule of Intangible Assets Subject to Amortization | The Company’s intangible assets subject to amortization are as follows: December 31, 2020 Gross Accumulated Net Trade names $ 97,530 $ (23,066) $ 74,464 Venue management contracts 79,000 (17,872) 61,128 Non-compete agreements 9,000 (6,131) 2,869 Festival rights 8,080 (2,426) 5,654 Other intangibles 4,217 (3,674) 543 $ 197,827 $ (53,169) $ 144,658 June 30, 2020 Gross Accumulated Net Trade names $ 97,530 $ (20,774) $ 76,756 Venue management contracts 79,000 (15,590) 63,410 Non-compete agreements 9,000 (5,348) 3,652 Festival rights 8,080 (2,156) 5,924 Other intangibles 4,217 (3,533) 684 $ 197,827 $ (47,401) $ 150,426 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
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 within Level I of the fair value hierarchy on a recurring basis, which include cash equivalents, short-term investments and an equity investment with readily determinable fair value: Fair Value Hierarchy December 31, June 30, Assets: Money market accounts I $ 198,051 $ — Time deposits I 481,011 777 U.S. treasury bills I 314,998 999,887 Equity investments with readily determinable fair value I 63,013 57,061 Total assets measured at fair value $ 1,057,073 $ 1,057,725 |
Schedule Of Financial Instruments | The carrying value and fair value of the Company’s financial instruments reported in the accompanying consolidated balance sheets are as follows: December 31, 2020 June 30, 2020 Carrying Fair Carrying Fair Assets Notes receivable (a) $ — $ — $ 6,328 $ 6,328 Short-term investments (a) — — 337,192 337,192 Equity investments with readily determinable fair value (b) 63,013 63,013 57,061 57,061 Liabilities Current and non-current portion of long-term debt under National Properties Term Loan Facility (c) $ 650,000 $ 657,313 $ — $ — Current and non-current portion of long term debt under Tao Credit Facilities (c) 37,750 37,723 33,750 32,367 _________________ (a) As of June 30, 2020, the Company’s notes receivable were invested with banking institutions as collateral for issuances of letters of credit. In addition, the Company’s short-term investments consisted of investments that (i) had original maturities of greater than three months and (ii) could be converted into cash by the Company within one year. The Company’s short-term investments as of June 30, 2020 included $299,942 in U.S. treasury bills and $37,250 in term deposits. The short-term investments in U.S. treasury bills were classified within Level I of the fair value hierarchy. The Company’s notes receivable and short-term investments in term deposits were carried at cost, including interest accruals, which approximated fair value and were classified within Level I of the fair value hierarchy. For the six months ended December 31, 2020, the changes in term deposits and notes receivable were all related to the settlement upon those investments expirations. No gain or loss was recognized on those notes receivable and term deposits for the six months ended December 31, 2020. (b) See Note 6 for more information on the Company’s equity investments with readily determinable fair value assets under Level I of the fair value hierarchy. |
Credit Facilities (Tables)
Credit Facilities (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Credit Facilities [Abstract] | |
Schedule of Maturities of Long-term Debt | As of December 31, 2020, the principal repayments required for the next five years under the National Properties Term Loan Facility are as follows: Fiscal Year 2021 (remainder) $ 3,250 Fiscal Year 2022 6,500 Fiscal Year 2023 6,500 Fiscal Year 2024 6,500 Fiscal Year 2025 6,500 Thereafter 620,750 $ 650,000 |
Schedule of Debt Outstanding and Deferred Financing Costs | The following table summarizes the outstanding balances under the Tao Term Loan Facility, the Tao Revolving Credit Facility and the National Properties Term Loan Facility, as well as the related deferred financing costs in the accompanying consolidated balance sheets as of December 31, 2020 and June 30, 2020. December 31, 2020 June 30, 2020 Principal Unamortized Deferred Financing Costs Net (a) Principal Unamortized Deferred Financing Costs Net (a) Current portion Tao Term Loan Facility $ 5,000 $ (239) $ 4,761 $ 5,000 $ (208) $ 4,792 National Properties Term Loan Facility 6,500 (6,783) (283) — — — Current portion of long-term debt, net of deferred financing costs (a) $ 11,500 $ (7,022) $ 4,478 $ 5,000 $ (208) $ 4,792 December 31, 2020 June 30, 2020 Principal Unamortized Deferred Financing Costs Net Principal Unamortized Deferred Financing Costs Net Noncurrent portion Tao Term Loan Facility $ 26,250 $ (595) $ 25,655 $ 28,750 $ (624) $ 28,126 Tao Revolving Credit Facility (b) 6,500 — 6,500 — — — National Properties Term Loan Facility 643,500 (26,210) 617,290 — — — Long-term debt, net of deferred financing costs $ 676,250 $ (26,805) $ 649,445 $ 28,750 $ (624) $ 28,126 _________________ (a) In addition to the outstanding balance associated with the Tao Term Loan Facility, the Tao Revolving Credit Facility and the National Properties Term Loan Facility disclosed above, the Company’s current portion of long-term debt, net of deferred financing costs in the accompanying consolidated balance sheets also includes $637 related to a note with respect to a loan received by BCE from its noncontrolling interest holder that is due in April 2021 as of December 31, 2020 and June 30, 2020. |
Pension Plans and Other Postr_2
Pension Plans and Other Postretirement Benefit Plan (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Schedule of Net Periodic Benefit Cost | The following tables present components of net periodic benefit cost for the Pension Plans and Postretirement Plan included in the accompanying consolidated and combined statements of operations for the three and six months ended December 31, 2020 and 2019. Service cost is recognized in direct operating expenses and selling, general and administrative expenses. All other components of net periodic benefit cost are reported in miscellaneous expense, net. Pension Plans Postretirement Plan Three Months Ended Three Months Ended December 31, December 31, 2020 2019 2020 2019 Service cost $ 22 $ 20 $ 13 $ 17 Interest cost 845 1,328 10 27 Expected return on plan assets (1,324) (1,328) — — Recognized actuarial loss 270 344 20 2 Net periodic benefit cost $ (187) $ 364 $ 43 $ 46 Contributory charge to MSG Sports for participation in the Shared Plans and allocation of costs related to the corporate employees (a) — (52) — (8) Net periodic benefit cost reported in consolidated and combined statements of operations $ (187) $ 312 $ 43 $ 38 Pension Plans Postretirement Plan Six Months Ended Six Months Ended December 31, December 31, 2020 2019 2020 2019 Service cost $ 42 $ 48 $ 26 $ 35 Interest cost 1,690 2,656 20 55 Expected return on plan assets (2,648) (2,659) — — Recognized actuarial loss 602 680 40 5 Net periodic (benefit) cost $ (314) $ 725 $ 86 $ 95 Contributory charge to MSG Sports for participation in the Shared Plans and allocation of costs related to the corporate employees (a) — (102) — (16) Net periodic (benefit) cost reported in consolidated and combined statements of operations $ (314) $ 623 $ 86 $ 79 ________________ (a) The pension expense related to employees of other MSG Sports businesses participating in any of these plans is reflected as a contributory charge from the Company to MSG Sports, resulting in a decrease to the expense recognized in the consolidated and combined statements of operations. |
Schedule of Defined Contribution Plans | For the three and six months ended December 31, 2020 and 2019, expenses related to the Savings Plans and Union Savings Plan included in the accompanying consolidated and combined statements of operations are as follows: Savings Plans Union Savings Plan Three Months Ended Six Months Ended Three Months Ended Six Months Ended December 31, December 31, December 31, December 31, 2020 2019 (a) 2020 2019 (a) 2020 2019 2020 2019 $ 1,457 $ 2,435 $ 2,647 $ 4,595 $ 10 $ 31 $ 19 $ 53 _________________ |
Share-based Compensation (Table
Share-based Compensation (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement, Restricted Stock Unit, Activity | The following table summarizes activity related to holders (including the Company and MSG Sports employees) of the Company’s restricted stock units and performance restricted stock units, collectively referred to as “RSUs,” for the six months ended December 31, 2020: Number of Weighted-Average Nonperformance Performance Unvested award balance, June 30, 2020 277 328 $ 75.34 Granted 387 328 $ 71.60 Vested (134) (85) $ 69.00 Forfeited (26) (29) $ 72.63 Cancelled — (32) $ 88.58 Unvested award balance, December 31, 2020 504 510 $ 73.80 |
Share-based Payment Arrangement, Option, Activity | The following table summarizes activity related to the Company’s stock options held by employees for the six months ended December 31, 2020: Number of Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value Balance as of June 30, 2020 543 $ 99.68 Cancelled (449) $ 107.07 Balance as of December 31, 2020 94 $ 64.36 6.96 $ 3,817 Exercisable as of December 31, 2020 94 $ 64.36 6.96 $ 3,817 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The following table details the components of accumulated other comprehensive loss: Three Months Ended December 31, 2020 Pension Plans and Cumulative Translation Adjustments Accumulated Balance as of September 30, 2020 $ (38,970) $ 1,416 $ (37,554) Other comprehensive income before reclassifications — 11,883 11,883 Amounts reclassified from accumulated other comprehensive loss (a) 290 — 290 Other comprehensive income 290 11,883 12,173 Balance as of December 31, 2020 $ (38,680) $ 13,299 $ (25,381) Three Months Ended December 31, 2019 Pension Plans and Cumulative Translation Adjustments Accumulated Balance as of September 30, 2019 $ (41,741) $ (14,861) $ (56,602) Other comprehensive income before reclassifications — 23,186 23,186 Amounts reclassified from accumulated other comprehensive loss (a) 346 — 346 Other comprehensive income 346 23,186 23,532 Balance as of December 31, 2019 $ (41,395) $ 8,325 $ (33,070) Six Months Ended December 31, 2020 Pension Plans and Cumulative Translation Adjustments Accumulated Balance as of June 30, 2020 $ (39,322) $ (12,535) $ (51,857) Other comprehensive income before reclassifications — 25,834 25,834 Amounts reclassified from accumulated other comprehensive loss (a) 642 — 642 Other comprehensive income 642 25,834 26,476 Balance as of December 31, 2020 $ (38,680) $ 13,299 $ (25,381) Six Months Ended December 31, 2019 Pension Plans and Cumulative Translation Adjustments Accumulated Balance as of June 30, 2019 $ (42,080) $ (4,843) $ (46,923) Other comprehensive income before reclassifications — 13,168 13,168 Amounts reclassified from accumulated other comprehensive loss (a) 685 — 685 Other comprehensive income 685 13,168 13,853 Balance as of December 31, 2019 $ (41,395) $ 8,325 $ (33,070) ________________ (a) Amounts reclassified from accumulated other comprehensive loss represent the amortization of net actuarial loss and net unrecognized prior service credit included in net periodic benefit cost, which is reflected under Miscellaneous income (expense), net in the accompanying consolidated and combined statements of operations. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following table summarizes the composition and amounts of the transactions with the Company’s affiliates. These amounts are reflected in revenues and operating expenses in the accompanying consolidated and combined statements of operations for the three and six months ended December 31, 2020 and 2019: Three Months Ended December 31, Six Months Ended December 31, 2020 2019 2020 2019 Revenues $ 5,262 $ 984 $ 9,280 $ 7,459 Operating expenses (credits): Revenue sharing expenses $ 15 $ 47,214 $ 96 $ 65,502 Allocation of charges for venue usage to MSG Sports — (20,025) — (22,104) Corporate general and administrative expenses, net — MSG Sports (8,445) (32,720) (18,625) (63,813) Corporate general and administrative expenses, net — MSG Networks (2,334) (2,602) (4,877) (5,204) Advertising expenses — 101 — 144 Other operating expenses, net 693 34 1,533 123 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Information as to the operations of the Company’s reportable segments is set forth below. Three Months Ended December 31, 2020 Tao Group Hospitality Purchase Inter-segment eliminations Total Revenues $ 12,669 $ 10,491 $ — $ (23) $ 23,137 Direct operating expenses 23,409 10,980 924 151 35,464 Selling, general and administrative expenses 65,730 9,131 — 89 74,950 Depreciation and amortization 19,246 1,563 3,066 — 23,875 Restructuring charges 1,372 — — — 1,372 Operating loss $ (97,088) $ (11,183) $ (3,990) $ (263) $ (112,524) Loss in equity method investments (1,568) Interest income 349 Interest expense (7,675) Miscellaneous expense, net (a) (7,362) Loss from operations before income taxes $ (128,780) Reconciliation of operating loss to adjusted operating loss: Operating loss $ (97,088) $ (11,183) $ (3,990) $ (263) $ (112,524) Add back: Non-cash portion of arena license fees from MSG Sports (1,176) — — — (1,176) Share-based compensation 22,374 1,188 — — 23,562 Depreciation and amortization 19,246 1,563 3,066 — 23,875 Restructuring charges 1,372 — — — 1,372 Other purchase accounting adjustments — — 924 — 924 Adjusted operating loss $ (55,272) $ (8,432) $ — $ (263) $ (63,967) Other information: Capital expenditures $ 106,945 $ 293 $ — $ — $ 107,238 Three Months Ended December 31, 2019 Tao Group Hospitality Purchase Inter-segment eliminations Total Revenues $ 325,370 $ 69,104 $ — $ (402) $ 394,072 Direct operating expenses 168,241 41,159 1,068 (274) 210,194 Selling, general and administrative expenses 68,869 18,038 — (53) 86,854 Depreciation and amortization 21,128 2,411 3,895 — 27,434 Operating income (loss) $ 67,132 $ 7,496 $ (4,963) $ (75) $ 69,590 Loss in equity method investments (1,170) Interest income 6,268 Interest expense (144) Miscellaneous income, net (a) 9,355 Income from operations before income taxes $ 83,899 Reconciliation of operating income (loss) to adjusted operating income (loss): Operating income (loss) $ 67,132 $ 7,496 $ (4,963) $ (75) $ 69,590 Add back: Share-based compensation 10,373 — — — 10,373 Depreciation and amortization 21,128 2,411 3,895 — 27,434 Other purchase accounting adjustments — — 1,068 — 1,068 Adjusted operating income (loss) $ 98,633 $ 9,907 $ — $ (75) $ 108,465 Other information: Capital expenditures $ 120,529 $ 1,139 $ — $ — $ 121,668 Six Months Ended December 31, 2020 Tao Group Hospitality Purchase Inter-segment eliminations Total Revenues $ 20,224 $ 17,712 $ — $ (421) $ 37,515 Direct operating expenses 47,024 20,808 1,848 (57) 69,623 Selling, general and administrative expenses 118,380 16,734 — 161 135,275 Depreciation and amortization 41,260 2,609 6,588 — 50,457 Restructuring charges 21,299 — — — 21,299 Operating loss $ (207,739) $ (22,439) $ (8,436) $ (525) $ (239,139) Loss in equity method investments (3,264) Interest income 644 Interest expense (8,084) Miscellaneous income, net (a) 26,862 Loss from operations before income taxes $ (222,981) Reconciliation of operating loss to adjusted operating loss: Operating loss $ (207,739) $ (22,439) $ (8,436) $ (525) $ (239,139) Add back: Non-cash portion of arena license fees from MSG Sports (1,176) — — — (1,176) Share-based compensation 32,807 2,284 — — 35,091 Depreciation and amortization 41,260 2,609 6,588 — 50,457 Restructuring charges 21,299 — — — 21,299 Other purchase accounting adjustments — — 1,848 — 1,848 Adjusted operating loss $ (113,549) $ (17,546) $ — $ (525) $ (131,620) Other information: Capital expenditures $ 218,344 $ 952 $ — $ — $ 219,296 Six Months Ended December 31, 2019 Tao Group Hospitality Purchase Inter-segment eliminations Total Revenues $ 445,022 $ 127,721 $ — $ (708) $ 572,035 Direct operating expenses 263,201 76,826 2,182 (493) 341,716 Selling, general and administrative expenses 139,218 35,462 6 (65) 174,621 Depreciation and amortization 42,915 4,590 6,749 — 54,254 Operating income (loss) $ (312) $ 10,843 $ (8,937) $ (150) $ 1,444 Loss in equity method investments (2,643) Interest income 13,583 Interest expense (1,249) Miscellaneous income, net (a) 16,386 Income from operations before income taxes $ 27,521 Reconciliation of operating income (loss) to adjusted operating income (loss): Operating income (loss) $ (312) $ 10,843 $ (8,937) $ (150) $ 1,444 Add back: Share-based compensation 20,430 28 — — 20,458 Depreciation and amortization 42,915 4,590 6,749 — 54,254 Other purchase accounting adjustments — — 2,188 — 2,188 Adjusted operating income (loss) $ 63,033 $ 15,461 $ — $ (150) $ 78,344 Other information: Capital expenditures $ 205,686 $ 2,342 $ — $ — $ 208,028 _________________ (a) Miscellaneous income (expense), net includes the following: Three Months Ended Six Months Ended December 31, December 31, 2020 2019 2020 2019 Unrealized and unrealized gain (loss) on equity investments with readily determinable fair value $ (7,227) $ 9,432 $ 26,431 $ 14,725 Non-service cost components of net periodic pension and postretirement benefit costs 178 (317) 294 (626) Dividend income from equity investments — 240 — 481 Measurement alternative adjustments for equity investments without readily determinable fair value — — — (532) Others, net. (For the six months ended December 31, 2019, the balance primarily reflected the impact of the elimination of Tao Group Hospitality’s three-month lag in Fiscal Year 2020) (313) — 137 2,338 Total $ (7,362) $ 9,355 $ 26,862 $ 16,386 |
Description of Business and B_2
Description of Business and Basis of Presentation (Details) | 6 Months Ended |
Dec. 31, 2020segments | |
Description of Business And Basis of Presentation [Abstract] | |
Number of Reportable Segments | 2 |
Description of Business and B_3
Description of Business and Basis of Presentation Impact of COVID-19 (Details) $ in Thousands | May 31, 2020employee | Nov. 30, 2020USD ($)employee | Aug. 31, 2020employee | Nov. 30, 2020employee |
Impact of COVID [Line Items] | ||||
Restructuring and Related Cost, Number of Positions Eliminated | 10 | 350 | ||
MSG National Properties LLC [Member] | ||||
Impact of COVID [Line Items] | ||||
Debt Instrument, Increase (Decrease), Other, Net | $ | $ 650,000 | |||
Event Level Employees [Member] | ||||
Impact of COVID [Line Items] | ||||
Restructuring and Related Cost, Number of Positions Eliminated | 6,000 | |||
Corporate Employee [Member] | ||||
Impact of COVID [Line Items] | ||||
Restructuring and Related Cost, Number of Positions Eliminated | 350 |
Revenue Recognition Overview (D
Revenue Recognition Overview (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2020 | Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |||
Revenue Not from Contract with Customer, Other | $ 2,333 | $ 3,081 | |
Accounts Receivable, Allowance for Credit Loss | $ 9,222 | 9,222 | $ 9,135 |
Provision for Other Credit Losses | 770 | ||
Financing Receivable, Allowance for Credit Loss, Writeoff | $ 682 |
Disaggregation of Revenue (Deta
Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | ||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer | $ 20,804 | $ 394,072 | $ 34,434 | $ 572,035 | |||
Intersegment Eliminations | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer | (23) | (402) | (421) | (708) | |||
Madison Square Garden Entertainment [Member] | Operating Segments | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer | 10,336 | 325,370 | 17,143 | 445,022 | |||
Tao [Member] | Operating Segments | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer | 10,491 | 69,104 | 17,712 | 127,721 | |||
Ticketing and Venue License Fee Revenues [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer | [1] | 968 | 199,969 | 1,698 | 261,116 | ||
Ticketing and Venue License Fee Revenues [Member] | Intersegment Eliminations | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer | 0 | 0 | 0 | 0 | |||
Ticketing and Venue License Fee Revenues [Member] | Madison Square Garden Entertainment [Member] | Operating Segments | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer | [1] | 968 | 199,969 | 1,698 | 261,116 | ||
Ticketing and Venue License Fee Revenues [Member] | Tao [Member] | Operating Segments | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer | 0 | 0 | 0 | 0 | |||
Sponsorship and Signage, Suite and Advertising Commission Revenues [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer | 9,151 | 85,030 | 14,778 | 122,958 | |||
Sponsorship and Signage, Suite and Advertising Commission Revenues [Member] | Intersegment Eliminations | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer | 21 | (220) | (211) | (437) | |||
Sponsorship and Signage, Suite and Advertising Commission Revenues [Member] | Madison Square Garden Entertainment [Member] | Operating Segments | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer | 9,130 | 85,250 | 14,989 | 123,395 | |||
Sponsorship and Signage, Suite and Advertising Commission Revenues [Member] | Tao [Member] | Operating Segments | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer | 0 | 0 | 0 | 0 | |||
Revenues from Entertainment Dining and Nightlife Offerings [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer | [2] | 10,447 | 69,021 | 17,502 | 127,625 | ||
Revenues from Entertainment Dining and Nightlife Offerings [Member] | Intersegment Eliminations | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer | (44) | (83) | (210) | [2] | (96) | [2] | |
Revenues from Entertainment Dining and Nightlife Offerings [Member] | Madison Square Garden Entertainment [Member] | Operating Segments | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer | 0 | 0 | 0 | 0 | |||
Revenues from Entertainment Dining and Nightlife Offerings [Member] | Tao [Member] | Operating Segments | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer | [2] | 10,491 | 69,104 | 17,712 | 127,721 | ||
Food, Beverage and Merchandise Revenues [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer | 0 | 34,470 | 0 | 50,741 | |||
Food, Beverage and Merchandise Revenues [Member] | Intersegment Eliminations | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer | 0 | 0 | 0 | 0 | |||
Food, Beverage and Merchandise Revenues [Member] | Madison Square Garden Entertainment [Member] | Operating Segments | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer | 0 | 34,470 | 0 | 50,741 | |||
Food, Beverage and Merchandise Revenues [Member] | Tao [Member] | Operating Segments | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer | 0 | 0 | 0 | 0 | |||
Other [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer | 238 | 5,582 | 456 | 9,595 | |||
Other [Member] | Intersegment Eliminations | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer | 0 | (99) | 0 | (175) | |||
Other [Member] | Madison Square Garden Entertainment [Member] | Operating Segments | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer | 238 | 5,681 | 456 | 9,770 | |||
Other [Member] | Tao [Member] | Operating Segments | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer | 0 | 0 | 0 | 0 | |||
Transferred at Point in Time [Member] | Event-related and entertainment dining and nightlife offerings [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer | [3] | 10,138 | 305,718 | 16,525 | 440,760 | ||
Transferred at Point in Time [Member] | Event-related and entertainment dining and nightlife offerings [Member] | Intersegment Eliminations | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer | [3] | (43) | (83) | (43) | (96) | ||
Transferred at Point in Time [Member] | Event-related and entertainment dining and nightlife offerings [Member] | Madison Square Garden Entertainment [Member] | Operating Segments | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer | [3] | 1,002 | 242,545 | 1,729 | 325,259 | ||
Transferred at Point in Time [Member] | Event-related and entertainment dining and nightlife offerings [Member] | Tao [Member] | Operating Segments | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer | [3] | 9,179 | 63,256 | 14,839 | 115,597 | ||
Transferred at Point in Time [Member] | Other [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer | [4] | 4,167 | 13,905 | 9,110 | 21,421 | ||
Transferred at Point in Time [Member] | Other [Member] | Intersegment Eliminations | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer | [4] | (1) | (99) | (167) | (175) | ||
Transferred at Point in Time [Member] | Other [Member] | Madison Square Garden Entertainment [Member] | Operating Segments | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer | [4] | 3,270 | 8,195 | 6,890 | 9,695 | ||
Transferred at Point in Time [Member] | Other [Member] | Tao [Member] | Operating Segments | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer | [4] | 898 | 5,809 | 2,387 | 11,901 | ||
Transferred over Time [Member] | Sponsorship, signage and suite licenses [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer | [5] | 6,499 | 74,449 | 8,799 | 109,854 | ||
Transferred over Time [Member] | Sponsorship, signage and suite licenses [Member] | Intersegment Eliminations | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer | [5] | 21 | (220) | (211) | (437) | ||
Transferred over Time [Member] | Sponsorship, signage and suite licenses [Member] | Madison Square Garden Entertainment [Member] | Operating Segments | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer | [5] | 6,064 | 74,630 | 8,524 | 110,068 | ||
Transferred over Time [Member] | Sponsorship, signage and suite licenses [Member] | Tao [Member] | Operating Segments | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer | [5] | $ 414 | $ 39 | $ 486 | $ 223 | ||
[1] | Amounts include ticket sales, including other ticket-related revenue, and venue license fees from the Company’s events such as (i) concerts, (ii) the presentation of the Christmas Spectacular, and (iii) other live entertainment and sporting events. | ||||||
[2] | Primarily consist of revenues from (i) entertainment dining and nightlife offerings and (ii) venue management agreements. | ||||||
[3] | Consists of (i) ticket sales and other ticket-related revenues, (ii) Tao Group Hospitality’s entertainment dining and nightlife offerings, (iii) venue license fees from third-party promoters, and (iv) food, beverage and merchandise sales. Event-related revenues and entertainment dining and nightlife offerings are recognized at a point in time. As such, these revenues have been included in the same category in the table above. | ||||||
[4] | Primarily consists of (i) revenues from sponsorship sales and representation agreements with MSG Sports , (ii) advertising commission revenue from MSG Networks Inc. (“MSG Networks”), and (ii) Tao Group Hospitality’s managed venue revenues. | ||||||
[5] | See Note 4 to the Company’s audited consolidated and combined financial statements and notes thereto for the year ended June 30, 2020 included in the Company’s Annual Report on Form 10-K for further details on the pattern of recognition of sponsorship, signage and suite license revenues. |
Contract Balances (Details)
Contract Balances (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Dec. 31, 2020 | Jun. 30, 2020 | ||
Contract Assets and Liabilities [Line Items] | |||
Contract with Customer, Deferred Revenue, Revenue Recognized | $ 5,069 | ||
Accounts Receivable and Related Party Receivables [Member] | |||
Contract Assets and Liabilities [Line Items] | |||
Contracts with customers, assets, net | [1] | 75,367 | $ 59,828 |
Other Current Assets [Member] | |||
Contract Assets and Liabilities [Line Items] | |||
Contracts with customers, assets, net | [2] | 8,718 | 3,850 |
Deferred Revenue and Other Liabilities [Member] | |||
Contract Assets and Liabilities [Line Items] | |||
Deferred revenue, including non-current portion | [3] | 207,770 | 193,112 |
Affiliated Entities [Member] | Net related party receivables [Member] | |||
Contract Assets and Liabilities [Line Items] | |||
Contracts with customers, assets, net | [1] | $ 1,656 | $ 2,644 |
[1] | Receivables from contracts with customers, which are reported in Accounts receivable, net and Net related party receivables in the Company’s consolidated balance sheets, represent the Company’s unconditional rights to consideration under its contracts with customers. As of December 31, 2020 and June 30, 2020, the Company’s receivables from contracts with customers above included $1,656 and $2,644, respectively, related to various related parties. See Note 17 for further details on related party arrangements. | ||
[2] | Contract assets, which are reported as Other current assets in the Company’s consolidated balance sheets, primarily relate to the Company’s rights to consideration for goods or services transferred to customers, for which the Company does not have an unconditional right to bill as of the reporting date. Contract assets are transferred to accounts receivable once the Company’s right to consideration becomes unconditional. | ||
[3] | Deferred revenue primarily relates to the Company’s receipt of consideration from 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. Revenue recognized for the six months ended December 31, 2020 relating to the deferred revenue balance as of June 30, 2020 was $5,069. |
Remaining Performance Obligatio
Remaining Performance Obligation (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 354,409 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 8,253 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 114,652 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 77,938 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 54,456 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 45,422 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, 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] | |
Revenue, Remaining Performance Obligation, Amount | $ 53,688 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Restructuring and Related Act_3
Restructuring and Related Activities (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Nov. 30, 2020employee | Aug. 31, 2020employee | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Restructuring and Related Activities [Abstract] | ||||||
Restructuring and Related Cost, Number of Positions Eliminated | employee | 10 | 350 | ||||
Restructuring charges | $ 1,372 | $ 0 | $ 21,299 | $ 0 | ||
Severance Costs | $ 1,372 | $ 21,299 |
Restructuring Rollforward (Deta
Restructuring Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Roll Forward] | ||||
Restructuring Reserve, Beginning Balance | $ 0 | |||
Restructuring charges | $ 1,372 | $ 0 | 21,299 | $ 0 |
Payments for Restructuring | (19,442) | |||
Restructuring Reserve, Ending Balance | $ 1,857 | $ 1,857 |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | |
Cash, Cash Equivalents and Restricted Cash [Abstract] | |||||
Cash and cash equivalents | $ 1,451,352 | $ 906,555 | $ 1,009,127 | $ 1,082,055 | |
Restricted cash | [1] | 26,207 | 17,749 | 17,898 | 10,010 |
Cash, cash equivalents and restricted cash on the consolidated statements of cash flows | 1,477,559 | 924,304 | 1,027,025 | 1,092,065 | |
Restricted Cash and Cash Equivalents Items [Line Items] | |||||
Restricted cash | [1] | 26,207 | $ 17,749 | $ 17,898 | $ 10,010 |
Debt [Member] | |||||
Cash, Cash Equivalents and Restricted Cash [Abstract] | |||||
Restricted cash | 8,100 | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||
Restricted cash | $ 8,100 | ||||
[1] | See Note 2 to the Company’s audited consolidated and combined financial statements and notes thereto for the year ended June 30, 2020 included in the Company’s Annual Report on Form 10-K for more information regarding the nature of restricted cash. In addition, the restricted cash balance as of December 31, 2020 |
Investments and Loans to Nonc_3
Investments and Loans to Nonconsolidated Affiliates (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2020 | Jun. 30, 2020 | ||
Schedule of Investments [Line Items] | ||||
Investments | $ 49,626 | $ 52,622 | ||
Equity Securities without Readily Determinable Fair Value, Impairment Loss | $ 533 | |||
Equity Method Investments [Member] | SACO [Member] | ||||
Schedule of Investments [Line Items] | ||||
Ownership Percentage | 30.00% | 30.00% | ||
Investments | $ 38,232 | $ 40,461 | ||
Equity Method Investments [Member] | Other Equity Method Investee [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investments | 7,894 | 8,661 | ||
Equity Securities Investment Without Readily Determinable Fair Value [Member] | Other Investees [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investments | [1] | $ 3,500 | $ 3,500 | |
[1] | In accordance with the ASC Topic 321, Investments - Equity Securities, the Company applies the measurement alternative to its equity investments without readily determinable fair values. Under the measurement alternative, equity securities without readily determinable fair values are accounted for at cost, adjusted for impairment and changes resulting from observable price fluctuations in orderly transactions for the identical or a similar investment of the same issuer, which is classified within Level III of the fair value hierarchy. For the three and six months ended December 31, 2020, the Company did not have impairment charges or change in carrying value recorded to its equity securities without readily determinable fair values. For the six months ended December 31, 2019 , the Company recorded an impairment charge of $533 to an equity investment without readily determinable fair value. |
Investments and Loans to Nonc_4
Investments and Loans to Nonconsolidated Affiliates Equity Investment with Readily Determinable Fair Value (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | |
Debt and Equity Securities, FV-NI [Line Items] | |||||
Cost of equity investment with readily determinable fair value | $ 29,431 | $ 29,431 | $ 32,042 | ||
Equity Securities, FV-NI | $ 63,013 | $ 63,013 | $ 57,061 | ||
Shares of investment sold | 395 | 395 | |||
Proceeds from sale of equity securities | $ 20,583 | $ 20,583 | $ 0 | ||
Realized Investment Gains (Losses) | (2,659) | (2,659) | |||
Unrealized Gain on Securities | $ 4,568 | $ 9,432 | $ 29,090 | $ 14,725 | |
Townsquare [Member] | Common Stock | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Investment Owned, Balance, Shares | 3,208 | 3,208 | 3,208 | ||
Cost of equity investment with readily determinable fair value | $ 23,222 | $ 23,222 | $ 23,222 | ||
Equity Securities, FV-NI | $ 21,366 | $ 21,366 | $ 14,340 | ||
Draftkings [Member] | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Investment Owned, Balance, Shares | 1,280 | ||||
Draftkings [Member] | Common Stock | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Investment Owned, Balance, Shares | 894 | 894 | |||
Cost of equity investment with readily determinable fair value | $ 6,209 | $ 6,209 | $ 8,798 | ||
Equity Securities, FV-NI | $ 41,647 | $ 41,647 | $ 42,589 | ||
Draftkings [Member] | Warrant | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Investment Owned, Balance, Shares | 9 | ||||
Cost of equity investment with readily determinable fair value | $ 22 | ||||
Equity Securities, FV-NI | $ 132 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | |
Property, Plant and Equipment [Line Items] | |||||
Property and equipment | $ 2,651,884 | $ 2,651,884 | $ 2,416,604 | ||
Less accumulated depreciation and amortization | (814,812) | (814,812) | (770,489) | ||
Property and equipment, net | 1,837,072 | 1,837,072 | 1,646,115 | ||
Capital expenditures incurred but not yet paid | 76,945 | $ 46,151 | |||
Depreciation | 20,991 | $ 22,490 | 44,689 | $ 46,405 | |
Other Accrued Liabilities, Current | 114,326 | 114,326 | 125,452 | ||
Land [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment | 149,771 | 149,771 | 141,638 | ||
Building [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment | 994,826 | 994,826 | 993,206 | ||
Equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment | 361,948 | 361,948 | 345,314 | ||
Air Transportation Equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment | 38,090 | 38,090 | 38,090 | ||
Furniture and Fixtures [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment | 42,059 | 42,059 | 42,389 | ||
Leasehold Improvements [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment | 169,648 | 169,648 | 170,585 | ||
Construction in Progress [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment | 895,542 | 895,542 | 685,382 | ||
Property, Plant and Equipment, Other Types [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Other Accrued Liabilities, Current | $ 76,945 | $ 76,945 | $ 78,618 |
Leases (Lease term) (Details)
Leases (Lease term) (Details) | 6 Months Ended |
Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |
Option to extend | In certain instances, leases include options to renew, with varying option terms in each case. The exercise of lease renewal options is generally at the Company’s discretion and is considered in the Company’s assessment of the respective lease term. |
Covenant | The Company’s lease agreements do not contain material residual value guarantees or material restrictive covenants. |
Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Term of contract | 10 months |
Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Term of contract | 18 years |
MSG Sphere [Member] | |
Lessee, Lease, Description [Line Items] | |
After tax cash flow in excess of objective, percent | 25.00% |
Ground lease, term | 50 years |
Leases (Assets and Liabilities
Leases (Assets and Liabilities Recognized) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 | |
Lessee, Lease, Description [Line Items] | |||
Right-of-use lease assets | $ 198,464 | $ 220,328 | |
Operating lease liabilities, current | 54,963 | 53,388 | |
Operating lease liabilities, noncurrent | 155,440 | 174,219 | |
Total lease liabilities | 210,403 | [1] | 227,607 |
Right of Use Lease Assets [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Right-of-use lease assets | 198,464 | 220,328 | |
Current portion of right-of-use lease liabilities [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease liabilities, current | 54,963 | 53,388 | |
Long-term right-of-use lease liabilities [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease liabilities, noncurrent | $ 155,440 | $ 174,219 | |
[1] | Operating lease payments exclude minimum lease payments related to a location associated with the entertainment dining and nightlife offerings as the Company has not yet taken possession of the space. |
Leases (Costs incurred in the p
Leases (Costs incurred in the period) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | ||||
Lease, cost | $ 11,860 | $ 18,157 | $ 23,661 | $ 33,096 |
Direct Operating Expenses [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease, cost | 6,545 | 11,333 | 12,952 | 19,574 |
Short-term lease, cost | 0 | 12 | 0 | 348 |
Variable lease, cost | 271 | 1,696 | 547 | 3,230 |
Selling, General and Administrative Expenses [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease, cost | 5,029 | 5,102 | 10,124 | 9,917 |
Variable lease, cost | $ 15 | $ 14 | $ 38 | $ 27 |
Leases (Supplemental Informatio
Leases (Supplemental Information) (Details) $ in Thousands | 6 Months Ended |
Dec. 31, 2020USD ($) | |
Lease, Lessee, Supplemental Information [Line Items] | |
Operating lease, payments | $ 25,272 |
Weighted average remaining lease term | 5 years 8 months 12 days |
Weighted average discount rate, percent | 9.27% |
Operating lease, assumptions and judgments, discount rate | 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 was modified. |
Leases (Remaining liabilities)
Leases (Remaining liabilities) (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Dec. 31, 2020 | Jun. 30, 2020 | ||
Leases [Abstract] | |||
Fiscal Year 2021 (remainder) | $ 25,115 | ||
Fiscal Year 2022 | 60,298 | ||
Fiscal Year 2023 | 56,801 | ||
Fiscal Year 2024 | 38,529 | ||
Fiscal Year 2025 | 23,356 | ||
Thereafter | 90,972 | ||
Total lease payments | 295,071 | ||
Less imputed interest | 84,668 | ||
Total lease liabilities | $ 210,403 | [1] | $ 227,607 |
Lessee, operating lease, lease not yet commenced, description | Operating lease payments exclude minimum lease payments related to a location associated with the entertainment dining and nightlife offerings as the Company has not yet taken possession of the space. | ||
[1] | Operating lease payments exclude minimum lease payments related to a location associated with the entertainment dining and nightlife offerings as the Company has not yet taken possession of the space. |
Leases (Lessor Arrangements) (D
Leases (Lessor Arrangements) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Dec. 31, 2020 | Dec. 31, 2020 | |
Lessor, Lease, Description [Line Items] | ||
Sublease Income | $ 748 | $ 1,496 |
The Garden [Member] | ||
Lessor, Lease, Description [Line Items] | ||
Operating Lease, Lease Income | $ 1,585 | $ 1,585 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Carrying Amount of Goodwill By Reportable Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2020 | |
Goodwill [Line Items] | |||
Goodwill | $ 74,309 | $ 74,309 | |
Tao [Member] | |||
Goodwill [Line Items] | |||
Goodwill, Impairment Loss | $ 0 | 88,583 | |
Madison Square Garden Entertainment [Member] | |||
Goodwill [Line Items] | |||
Goodwill | $ 74,309 | $ 74,309 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Schedule of Indefinite-Lived Intangible Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2020 | Jun. 30, 2020 | |
Indefinite-lived Intangible Assets by Major Class [Line Items] | |||
Indefinite-lived Intangible Assets (Excluding Goodwill) | $ 63,801 | $ 63,801 | |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 0 | ||
Trademarks [Member] | |||
Indefinite-lived Intangible Assets by Major Class [Line Items] | |||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 61,881 | 61,881 | |
Photographic related rights [Member] | |||
Indefinite-lived Intangible Assets by Major Class [Line Items] | |||
Indefinite-lived Intangible Assets (Excluding Goodwill) | $ 1,920 | $ 1,920 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Schedule of Intangible Assets Subject To Amortization) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable Intangible Assets,Gross | $ 197,827 | $ 197,827 |
Amortizable Intangible Assets, Accumulated Amortization | (53,169) | (47,401) |
Amortizable Intangible Assets, Net | 144,658 | 150,426 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable Intangible Assets,Gross | 97,530 | 97,530 |
Amortizable Intangible Assets, Accumulated Amortization | (23,066) | (20,774) |
Amortizable Intangible Assets, Net | 74,464 | 76,756 |
Venue Management Contracts [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable Intangible Assets,Gross | 79,000 | 79,000 |
Amortizable Intangible Assets, Accumulated Amortization | (17,872) | (15,590) |
Amortizable Intangible Assets, Net | 61,128 | 63,410 |
Non-compete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable Intangible Assets,Gross | 9,000 | 9,000 |
Amortizable Intangible Assets, Accumulated Amortization | (6,131) | (5,348) |
Amortizable Intangible Assets, Net | 2,869 | 3,652 |
Festival Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable Intangible Assets,Gross | 8,080 | 8,080 |
Amortizable Intangible Assets, Accumulated Amortization | (2,426) | (2,156) |
Amortizable Intangible Assets, Net | 5,654 | 5,924 |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable Intangible Assets,Gross | 4,217 | 4,217 |
Amortizable Intangible Assets, Accumulated Amortization | (3,674) | (3,533) |
Amortizable Intangible Assets, Net | $ 543 | $ 684 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Amortization Expense - Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of Intangible Assets | $ 2,884 | $ 4,944 | $ 5,768 | $ 7,849 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Assets Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | $ 1,057,073 | $ 1,057,725 |
Money market accounts [Member] | Level I [Member] | ||
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 198,051 | 0 |
Time deposits [Member] | Level I [Member] | ||
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 481,011 | 777 |
US Treasury Bill Securities [Member] | Level I [Member] | ||
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 314,998 | 999,887 |
Equity Securities With Readily Determinable Fair Values [Member] | Level I [Member] | ||
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | $ 63,013 | $ 57,061 |
Fair Value Measurements (Sche_2
Fair Value Measurements (Schedule of Financial Instruments) (Details) - USD ($) $ in Thousands | 1 Months Ended | ||||
Nov. 30, 2020 | Dec. 31, 2020 | Jun. 30, 2020 | May 23, 2019 | ||
Liabilities [Abstract] | |||||
Short-term investments | $ 0 | $ 337,192 | |||
Notes Receivable [Member] | |||||
ASSETS | |||||
Carrying Value | [1] | 0 | 6,328 | ||
Fair Value | [1] | 0 | 6,328 | ||
Short-term Investments [Member] | |||||
ASSETS | |||||
Carrying Value | [1] | 337,192 | |||
Fair Value | [1] | 337,192 | |||
Equity Securities With Readily Determinable Fair Values [Member] | |||||
ASSETS | |||||
Carrying Value | [2] | 63,013 | 57,061 | ||
Fair Value | [2] | 63,013 | 57,061 | ||
Debt [Member] | National Properties Nov2020 Senior Secured Term Loan Agreement [Member] | |||||
Liabilities [Abstract] | |||||
Carrying Value | 650,000 | ||||
Fair Value | 657,313 | ||||
Debt [Member] | TAO 2019 Senior Credit Agreement [Member] | |||||
Liabilities [Abstract] | |||||
Carrying Value | [3] | 37,750 | 33,750 | ||
Fair Value | [3] | $ 37,723 | 32,367 | ||
Deposits [Member] | |||||
Liabilities [Abstract] | |||||
Short-term investments | 37,250 | ||||
US Treasury Bill Securities [Member] | |||||
Liabilities [Abstract] | |||||
Short-term investments | $ 299,942 | ||||
MSG National Properties LLC [Member] | |||||
Liabilities [Abstract] | |||||
Debt Instrument, Increase (Decrease), Other, Net | $ 650,000 | ||||
Secured Debt [Member] | Tao [Member] | |||||
Liabilities [Abstract] | |||||
Face amount | $ 40,000 | ||||
Revolving Credit Facility [Member] | Tao [Member] | |||||
Liabilities [Abstract] | |||||
Face amount | $ 25,000 | ||||
[1] | As of June 30, 2020, the Company’s notes receivable were invested with banking institutions as collateral for issuances of letters of credit. In addition, the Company’s short-term investments consisted of investments that (i) had original maturities of greater than three months and (ii) could be converted into cash by the Company within one year. The Company’s short-term investments as of June 30, 2020 included $299,942 in U.S. treasury bills and $37,250 in term deposits. The short-term investments in U.S. treasury bills were classified within Level I of the fair value hierarchy. The Company’s notes receivable and short-term investments in term deposits were carried at cost, including interest accruals, which approximated fair value and were classified within Level I of the fair value hierarchy. For the six months ended December 31, 2020, the changes in term deposits and notes receivable were all related to the settlement upon those investments expirations. No gain or loss was recognized on those notes receivable and term deposits for the six months ended December 31, 2020. | ||||
[2] | See Note 6 for more information on the Company’s equity investments with readily determinable fair value assets under Level I of the fair value hierarchy. | ||||
[3] | On May 23, 2019, Tao Group Intermediate Holdings LLC and Tao Group Operating LLC entered into a $40,000 five-year term loan facility and a $25,000 five-year term revolving facility. In November 2020, MSG National Properties and certain subsidiaries of the Company entered into the National Properties Term Loan Facility, providing a five-year $650,000 term loan facility. The Company’s long-term debt is classified within Level II of the fair value hierarchy as it is valued using quoted indices of similar securities for which the inputs are readily observable. See Note 12 for more information and outstanding balances on this long-term debt. |
Credit Facilities Credit Facili
Credit Facilities Credit Facilities (TAO Narrative) (Details) $ in Thousands | 6 Months Ended | |||||||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2022 | Nov. 12, 2020USD ($) | Aug. 06, 2020USD ($) | Jun. 30, 2020USD ($) | Jun. 15, 2020USD ($) | May 23, 2019USD ($) | |
Madison Square Garden Entertainment [Member] | Consolidation, Eliminations [Member] | Tao [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Loans payable | $ 62,000 | $ 49,000 | $ 49,000 | |||||
Debt Instrument Additional Borrowing Capacity | $ 22,000 | |||||||
Tao [Member] | TAO 2019 Senior Credit Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Commitment fee percentage | 0.50% | |||||||
Long-term debt, percentage bearing variable interest rate, percentage rate | 2.65% | |||||||
Guarantee And Reserve Account Agreement Initial Deposit | $ 8,100 | $ 9,800 | ||||||
Liquidity Requirement | 75,000 | |||||||
Interest payment | $ 554 | $ 1,218 | ||||||
Restrictive covenants | The Tao Senior Credit Agreement contains certain restrictions on the ability of TAOIH, TAOG and its restricted subsidiaries to take certain actions as provided in (and subject to various exceptions and baskets set forth in) the Tao Senior Credit Agreement, including, without limitation, the following: (i) incurring additional indebtedness and contingent liabilities; (ii) creating liens on certain assets; (iii) making investments, loans or advances in or to other persons; (iv) paying dividends and distributions or repurchasing capital stock; (v) engaging in certain transactions with affiliates; (vi) amending specified agreements; (vii) merging or consolidating; (viii) making certain dispositions; and (ix) entering into agreements that restrict the granting of liens. | |||||||
Payment terms | Subject to customary notice and minimum amount conditions, TAOG may voluntarily prepay outstanding loans under the Tao Senior Credit Agreement at any time, in whole or in part, without premium or penalty (except for customary breakage costs with respect to Eurocurrency loans). The initial Tao Term Loan Facility amortizes quarterly in accordance with its terms from June 30, 2019 through March 31, 2024 with a final maturity date on May 23, 2024. | |||||||
Subjective acceleration clause | TAOG is required to make mandatory prepayments of the Tao Term Loan Facility from the net cash proceeds of certain sales of assets (including Tao Collateral) or casualty insurance and/or condemnation recoveries (in each case, subject to certain reinvestment, repair or replacement rights) and the incurrence of certain indebtedness, subject to certain exceptions. | |||||||
Covenant compliance | TAOG, TAOIH and the restricted subsidiaries were in compliance with the covenants of the Tao Senior Credit Agreement. | |||||||
Interest rate terms | the additional rate used in calculating the floating rate is (i) 1.50% per annum for borrowings bearing the Base Rate, and (ii) 2.50% per annum for borrowings bearing the Eurocurrency Rate. | |||||||
Tao [Member] | Loans Payable [Member] | TAO 2019 Senior Credit Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount | $ 40,000 | |||||||
Long-term debt, term | 5 years | |||||||
Long-term Debt, Outstanding | 33,750 | |||||||
MSG National Properties LLC [Member] | National Properties Nov2020 Senior Secured Term Loan Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, percentage bearing variable interest rate, percentage rate | 7.00% | |||||||
Restrictive covenants | The National Properties Term Loan Facility contains certain restrictions on the ability of MSG National Properties and its restricted subsidiaries to take certain actions as provided in (and subject to various exceptions and baskets set forth in) the National Properties Term Loan Facility, including the following: (i) incur additional indebtedness; (ii) create liens on certain assets; (iii) make investments, loans or advances in or to other persons; (iv) pay dividends and distributions or repurchase capital stock (which will restrict the ability of MSG National Properties to make cash distributions to the Company); (v) repay, redeem or repurchase certain indebtedness; (vi) change its lines of business; (vii) engage in certain transactions with affiliates; (viii) amend their respective organizational documents; (ix) merge or consolidate; and (x) make certain dispositions. | |||||||
Subjective acceleration clause | Under certain circumstances, MSG National Properties is required to make mandatory prepayments on loans outstanding, including prepayments in an amount equal to a specified percentage of excess cash flow in any fiscal year and prepayments in an amount equal to the net cash proceeds of certain sales of assets or casualty insurance and/or condemnation recoveries (subject to certain reinvestment, repair or replacement rights), in each case subject to certain exceptions. | |||||||
Covenant compliance | MSG National Properties and its restricted subsidiaries were in compliance with the covenants of the National Properties Term Loan Facility. | |||||||
MSG National Properties LLC [Member] | Loans Payable [Member] | National Properties Nov2020 Senior Secured Term Loan Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount | $ 650,000 | |||||||
Long-term Debt, Outstanding | $ 650,000 | |||||||
Liquidity Requirement | 450,000 | |||||||
MSG National Properties LLC [Member] | Loans Payable [Member] | National Properties Nov2020 Senior Secured Term Loan Agreement [Member] | Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Liquidity Requirement | $ 200,000 | |||||||
Revolving Credit Facility [Member] | Tao [Member] | TAO 2019 Senior Credit Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount | $ 25,000 | $ 25,000 | ||||||
Long-term debt, term | 5 years | |||||||
Letters of credit outstanding, amount | 750 | |||||||
Revolving credit facility outstanding amount | 6,500 | $ 0 | ||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 17,750 | |||||||
Revolving Credit Facility [Member] | Tao [Member] | TAO 2019 Senior Credit Agreement [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding, amount | $ 5,000 | |||||||
Measurement Input, Leverage Ratio [Member] | TAO 2019 Senior Credit Agreement [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Measurement Input | 4 | |||||||
Measurement Input, Leverage Ratio [Member] | MSG National Properties LLC [Member] | National Properties Nov2020 Senior Secured Term Loan Agreement [Member] | Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Measurement Input | 5 | |||||||
Measurement Input, Senior Leverage Ratio [Member] | TAO 2019 Senior Credit Agreement [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Measurement Input | 3 | |||||||
Measurement Input, Fixed Charge Coverage Ratio [Member] | TAO 2019 Senior Credit Agreement [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Measurement Input | 1.25 | |||||||
Forecast [Member] | Measurement Input, Leverage Ratio [Member] | TAO 2019 Senior Credit Agreement [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Measurement Input | 3.50 | |||||||
Forecast [Member] | Measurement Input, Senior Leverage Ratio [Member] | TAO 2019 Senior Credit Agreement [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Measurement Input | 2.50 | |||||||
Base Rate [Member] | Tao [Member] | TAO 2019 Senior Credit Agreement [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |||||||
Base Rate [Member] | Tao [Member] | TAO 2019 Senior Credit Agreement [Member] | Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||||||
Base Rate [Member] | MSG National Properties LLC [Member] | National Properties Nov2020 Senior Secured Term Loan Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 5.25% | |||||||
Eurocurrency Rate [Member] | Tao [Member] | TAO 2019 Senior Credit Agreement [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.50% | |||||||
Eurocurrency Rate [Member] | Tao [Member] | TAO 2019 Senior Credit Agreement [Member] | Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% |
Credit Facilities - Credit Faci
Credit Facilities - Credit Facilities (National Properties Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Nov. 12, 2020 | Aug. 06, 2020 | May 23, 2019 | |
MSG National Properties LLC [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||||
National Properties Nov2020 Senior Secured Term Loan Agreement [Member] | MSG National Properties LLC [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, percentage bearing variable interest rate, percentage rate | 7.00% | ||||
Debt Instrument, Collateral | All obligations under the National Properties Term Loan Facility, including the guarantees of those obligations, are secured by certain of the assets of MSG National Properties and the Subsidiary Guarantors (collectively, “Collateral”) including, but not limited to, a pledge of some or all of the equity interests held directly or indirectly by MSG National Properties in each Subsidiary Guarantor. The Collateral does not include, among other things, any interests in The Garden or the leasehold interests in Radio City Music Hall and the Beacon Theater. | ||||
Subjective acceleration clause | Under certain circumstances, MSG National Properties is required to make mandatory prepayments on loans outstanding, including prepayments in an amount equal to a specified percentage of excess cash flow in any fiscal year and prepayments in an amount equal to the net cash proceeds of certain sales of assets or casualty insurance and/or condemnation recoveries (subject to certain reinvestment, repair or replacement rights), in each case subject to certain exceptions. | ||||
Restrictive covenants | The National Properties Term Loan Facility contains certain restrictions on the ability of MSG National Properties and its restricted subsidiaries to take certain actions as provided in (and subject to various exceptions and baskets set forth in) the National Properties Term Loan Facility, including the following: (i) incur additional indebtedness; (ii) create liens on certain assets; (iii) make investments, loans or advances in or to other persons; (iv) pay dividends and distributions or repurchase capital stock (which will restrict the ability of MSG National Properties to make cash distributions to the Company); (v) repay, redeem or repurchase certain indebtedness; (vi) change its lines of business; (vii) engage in certain transactions with affiliates; (viii) amend their respective organizational documents; (ix) merge or consolidate; and (x) make certain dispositions. | ||||
Covenant compliance | MSG National Properties and its restricted subsidiaries were in compliance with the covenants of the National Properties Term Loan Facility. | ||||
National Properties Nov2020 Senior Secured Term Loan Agreement [Member] | MSG National Properties LLC [Member] | Loans Payable [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 650,000 | ||||
Liquidity Requirement | 450,000 | ||||
Liquidity Requirement, After first year | 200,000 | ||||
Long-term Debt, Maturities, Repayment Terms | The principal obligations under the National Properties Term Loan Facility are to be repaid in quarterly installments in an aggregate amount equal to 1.00% per annum (0.25% per quarter), with the balance due at the maturity of the facility. | ||||
National Properties Nov2020 Senior Secured Term Loan Agreement [Member] | MSG National Properties LLC [Member] | Base Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 5.25% | ||||
National Properties Nov2020 Senior Secured Term Loan Agreement [Member] | MSG National Properties LLC [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 6.25% | ||||
National Properties Nov2020 Senior Secured Term Loan Agreement [Member] | MSG National Properties LLC [Member] | Minimum [Member] | Measurement Input, Leverage Ratio [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Measurement Input | 5 | ||||
National Properties Nov2020 Senior Secured Term Loan Agreement [Member] | MSG National Properties LLC [Member] | Minimum [Member] | Loans Payable [Member] | |||||
Debt Instrument [Line Items] | |||||
Liquidity Requirement | $ 200,000 | ||||
National Properties Nov2020 Senior Secured Term Loan Agreement [Member] | MSG National Properties LLC [Member] | Minimum [Member] | Loans Payable [Member] | Scenario, Adjustment [Member] | |||||
Debt Instrument [Line Items] | |||||
Liquidity Requirement | $ 50,000 | ||||
TAO 2019 Senior Credit Agreement [Member] | Tao [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, percentage bearing variable interest rate, percentage rate | 2.65% | ||||
Interest payment | $ 554 | $ 1,218 | |||
Liquidity Requirement | $ 75,000 | ||||
Subjective acceleration clause | TAOG is required to make mandatory prepayments of the Tao Term Loan Facility from the net cash proceeds of certain sales of assets (including Tao Collateral) or casualty insurance and/or condemnation recoveries (in each case, subject to certain reinvestment, repair or replacement rights) and the incurrence of certain indebtedness, subject to certain exceptions. | ||||
Restrictive covenants | The Tao Senior Credit Agreement contains certain restrictions on the ability of TAOIH, TAOG and its restricted subsidiaries to take certain actions as provided in (and subject to various exceptions and baskets set forth in) the Tao Senior Credit Agreement, including, without limitation, the following: (i) incurring additional indebtedness and contingent liabilities; (ii) creating liens on certain assets; (iii) making investments, loans or advances in or to other persons; (iv) paying dividends and distributions or repurchasing capital stock; (v) engaging in certain transactions with affiliates; (vi) amending specified agreements; (vii) merging or consolidating; (viii) making certain dispositions; and (ix) entering into agreements that restrict the granting of liens. | ||||
Covenant compliance | TAOG, TAOIH and the restricted subsidiaries were in compliance with the covenants of the Tao Senior Credit Agreement. | ||||
TAO 2019 Senior Credit Agreement [Member] | Tao [Member] | Loans Payable [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 40,000 | ||||
TAO 2019 Senior Credit Agreement [Member] | Tao [Member] | Minimum [Member] | Base Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% |
Credit Facilities - Future Matu
Credit Facilities - Future Maturities (Details) - National Properties Nov2020 Senior Secured Term Loan Agreement [Member] - Loans Payable [Member] - MSG National Properties LLC [Member] $ in Thousands | Dec. 31, 2020USD ($) |
Debt Instrument [Line Items] | |
Long-Term Debt, Maturity, Year One | $ 3,250 |
Long-Term Debt, Maturity, Year Two | 6,500 |
Long-Term Debt, Maturity, Year Three | 6,500 |
Long-Term Debt, Maturity, Year Four | 6,500 |
Long-Term Debt, Maturity, Year Five | 6,500 |
Long-Term Debt, Maturity, after Year Five | 620,750 |
Long-term Debt, Outstanding | $ 650,000 |
Credit Facilities - Other Defer
Credit Facilities - Other Deferred Financing Costs (Details) - Loans Payable [Member] - MSG National Properties LLC [Member] - National Properties Nov2020 Senior Secured Term Loan Agreement [Member] $ in Thousands | Nov. 12, 2020USD ($) |
Debt Instrument [Line Items] | |
Debt Instrument, Unamortized Discount | $ 19,500 |
Debt Issuance Costs, Gross | $ 14,417 |
Credit Facilities (Debt Outstan
Credit Facilities (Debt Outstanding and Deferred Financing Costs) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Aug. 06, 2020 | Jun. 30, 2020 | |
Secured Debt [Member] | Current portion of long-term debt net of deferred financing costs | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | $ 11,500 | $ 5,000 | ||
Debt Issuance Costs, Net | 7,022 | 208 | ||
Debt Outstanding net of unamortized debt issuance cost and unamortized original issue discount | [1] | 4,478 | 4,792 | |
Secured Debt [Member] | Long-term debt net of deferred financing costs | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 676,250 | 28,750 | ||
Debt Issuance Costs, Net | 26,805 | 624 | ||
Debt Outstanding net of unamortized debt issuance cost and unamortized original issue discount | 649,445 | 28,126 | ||
Secured Debt [Member] | Tao [Member] | Current portion of long-term debt net of deferred financing costs | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 5,000 | 5,000 | ||
Debt Issuance Costs, Net | 239 | 208 | ||
Debt Outstanding net of unamortized debt issuance cost and unamortized original issue discount | 4,761 | 4,792 | ||
Secured Debt [Member] | Tao [Member] | Long-term debt net of deferred financing costs | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 26,250 | 28,750 | ||
Debt Issuance Costs, Net | 595 | 624 | ||
Debt Outstanding net of unamortized debt issuance cost and unamortized original issue discount | 25,655 | 28,126 | ||
Secured Debt [Member] | MSG National Properties LLC [Member] | Current portion of long-term debt net of deferred financing costs | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 6,500 | |||
Debt Issuance Costs, Net | 6,783 | |||
Debt Outstanding net of unamortized debt issuance cost and unamortized original issue discount | (283) | |||
Secured Debt [Member] | MSG National Properties LLC [Member] | Long-term debt net of deferred financing costs | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 643,500 | |||
Debt Issuance Costs, Net | 26,210 | |||
Debt Outstanding net of unamortized debt issuance cost and unamortized original issue discount | 617,290 | |||
Revolving Credit Facility [Member] | Tao [Member] | Long-term debt net of deferred financing costs | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | 6,500 | |||
Debt Issuance Costs, Net | [2] | 0 | ||
Debt Outstanding net of unamortized debt issuance cost and unamortized original issue discount | 6,500 | |||
BCE [Member] | ||||
Debt Instrument [Line Items] | ||||
Notes Payable, Related Parties | 637 | $ 637 | ||
TAO 2019 Senior Credit Agreement [Member] | Loans Payable [Member] | Tao [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | $ 33,750 | |||
National Properties Nov2020 Senior Secured Term Loan Agreement [Member] | Loans Payable [Member] | MSG National Properties LLC [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | $ 650,000 | |||
[1] | In addition to the outstanding balance associated with the Tao Term Loan Facility, the Tao Revolving Credit Facility and the National Properties Term Loan Facility disclosed above, the Company’s current portion of long-term debt, net of deferred financing costs in the accompanying consolidated balance sheets also includes $637 related to a note with respect to a loan received by BCE from its noncontrolling interest holder that is due in April 2021 as of December 31, 2020 and June 30, 2020. | |||
[2] | Unamortized deferred financing costs associated with Tao Revolving Credit Facility are presented under the captions Other current assets and Other assets in the accompanying consolidated balance sheets. |
Pension Plans and Other Postr_3
Pension Plans and Other Postretirement Benefit Plan (Schedule of Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Pension Plans [Member] | ||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||||
Service cost | $ 22 | $ 20 | $ 42 | $ 48 | ||
Interest cost | 845 | 1,328 | 1,690 | 2,656 | ||
Expected return on plan assets | (1,324) | (1,328) | (2,648) | (2,659) | ||
Recognized actuarial loss | 270 | 344 | 602 | 680 | ||
Net periodic benefit cost | (187) | 364 | (314) | 725 | ||
Postretirement Plan [Member] | ||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||||
Service cost | 13 | 17 | 26 | 35 | ||
Interest cost | 10 | 27 | 20 | 55 | ||
Expected return on plan assets | 0 | 0 | 0 | 0 | ||
Recognized actuarial loss | 20 | 2 | 40 | 5 | ||
Net periodic benefit cost | 43 | 46 | 86 | 95 | ||
Madison Square Garden Sports [Member] | Pension Plans [Member] | ||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||||
Defined Benefit Plan, Allocated Costs, Divestiture | 0 | 52 | [1] | 0 | 102 | [1] |
Madison Square Garden Sports [Member] | Postretirement Plan [Member] | ||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||||
Defined Benefit Plan, Allocated Costs, Divestiture | 0 | 8 | [1] | 0 | 16 | [1] |
Madison Square Garden Entertainment [Member] | Pension Plans [Member] | ||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||||
Net periodic benefit cost | (187) | 312 | (314) | 623 | ||
Madison Square Garden Entertainment [Member] | Postretirement Plan [Member] | ||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||||
Net periodic benefit cost | $ 43 | $ 38 | $ 86 | $ 79 | ||
[1] | The pension expense related to employees of other MSG Sports businesses participating in any of these plans is reflected as a contributory charge from the Company to MSG Sports, resulting in a decrease to the expense recognized in the consolidated and combined statements of operations. |
Defined Contribution Plan Sched
Defined Contribution Plan Schedule of Defined Contribution Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |||
MSG Saving Plans [Member] | ||||||
Defined Contribution Plan Disclosure [Line Items] | ||||||
Defined contribution plan (benefit) cost | $ 1,457 | $ 2,435 | [1] | $ 2,647 | $ 4,595 | [1] |
MSG Union Plan [Member] | ||||||
Defined Contribution Plan Disclosure [Line Items] | ||||||
Defined contribution plan (benefit) cost | $ 10 | 31 | $ 19 | 53 | ||
Corporate Employee [Member] | MSG Saving Plans [Member] | Madison Square Garden Sports [Member] | ||||||
Defined Contribution Plan Disclosure [Line Items] | ||||||
Defined contribution plan (benefit) cost | $ 891 | $ 1,752 | [1] | |||
[1] | The amounts include expenses of $891 and $1,752 related to the MSG Sports’ corporate employees which were allocated to the Company during the three and six months ended December 31, 2019, respectively. |
Share-based Compensation Narrat
Share-based Compensation Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | ||||
Share-based Payment Arrangement, Expense | $ 23,562 | $ 10,373 | $ 35,091 | $ 20,458 |
Share-based compensation capitalized amount | 2,784 | $ 2,482 | ||
Share-based Payment Arrangement, Accelerated Cost | $ 11,129 | $ 11,129 |
Share-based Compensation, Restr
Share-based Compensation, Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs) [Member] shares in Thousands | 6 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Unvested award balance, June 30, 2020 | $ / shares | $ 75.34 |
Granted | $ / shares | 71.60 |
Vested | $ / shares | 69 |
Forfeited | $ / shares | 72.63 |
Cancelled | $ / shares | 88.58 |
Unvested award balance, December 31, 2020 | $ / shares | $ 73.80 |
Non-Performance Vesting [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Unvested award balance, June 30, 2020 | 277 |
Granted | 387 |
Vested | (134) |
Forfeited | (26) |
Unvested award balance, December 31, 2020 | 504 |
Performance Vesting [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Unvested award balance, June 30, 2020 | 328 |
Granted | 328 |
Vested | (85) |
Forfeited | (29) |
Cancelled | (32) |
Unvested award balance, December 31, 2020 | 510 |
Share-based Compensation, Res_2
Share-based Compensation, Restricted Stock Units Activity Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Payment, tax withholding, share-based payment arrangement | $ 5,975 | $ 0 |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vested in period, fair value | $ 16,251 | |
Shares withheld for tax withholding obligation | 81 | |
Payment, tax withholding, share-based payment arrangement | $ 5,976 | |
Granted | $ 71.60 | |
Restricted Stock Units (RSUs) [Member] | Madison Square Garden Sports [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares withheld for tax withholding obligation | 8 | |
Payment, tax withholding, share-based payment arrangement | $ 575 |
Share-based Compensation, Stock
Share-based Compensation, Stock Options Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended |
Dec. 31, 2020USD ($)$ / sharesshares | |
Weighted-Average Exercise Price Per Share | |
Balance as of June 30, 2020 | $ / shares | $ 99.68 |
Cancelled | $ / shares | 107.07 |
Balance as of December 31, 2020 | $ / shares | 64.36 |
Exercisable as of December 31, 2020 | $ / shares | $ 64.36 |
Weighted-Average Remaining Contractual Term (In Years) | |
Balance as of December 31, 2020 Weighted Average Remaining Contractual Term (in years) | 6 years 11 months 15 days |
Exercisable as of December 31, 2020, Weighted Average Remaining Contractual Term (in years) | 6 years 11 months 15 days |
Aggregate Intrinsic Value (In Thousands) | |
Balance as of December 31, 2020 Aggregate Intrinsic Value | $ | $ 3,817 |
Exercisable as of December 31, 2020 Aggregate Intrinsic Value | $ | $ 3,817 |
Non-Performance Vesting [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Balance as of June 30, 2020 | shares | 543 |
Cancelled | shares | (449) |
Balance as of December 31, 2020 | shares | 94 |
Exercisable as of December 31, 2020 | shares | 94 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Accumulated Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax [Roll Forward] | |||||
Balance at the beginning of the period | $ (38,970) | $ (41,741) | $ (39,322) | $ (42,080) | |
Other comprehensive income before reclassifications | 0 | 0 | |||
Amounts reclassified from accumulated other comprehensive loss | [1] | 290 | 346 | 642 | 685 |
Other comprehensive income | 290 | 346 | 642 | 685 | |
Balance at the end of the period | (38,680) | (41,395) | (38,680) | (41,395) | |
Accumulated Other Comprehensive Income (Loss), Cumulative Translation Adjustments [Roll Forward] | |||||
Balance at the beginning of the period | 1,416 | (14,861) | (12,535) | (4,843) | |
Other comprehensive income before reclassifications | 11,883 | 23,186 | 25,834 | 13,168 | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 | |
Other comprehensive income | 11,883 | 23,186 | 25,834 | 13,168 | |
Balance at the end of the period | 13,299 | 8,325 | 13,299 | 8,325 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Balance at the beginning of the period | (37,554) | (56,602) | (51,857) | (46,923) | |
Other comprehensive income before reclassifications | 11,883 | 23,186 | 25,834 | 13,168 | |
Amounts reclassified from accumulated other comprehensive loss | [1] | 290 | 346 | 642 | 685 |
Other comprehensive income (loss) | 12,173 | 23,532 | 26,476 | 13,853 | |
Balance at the end of the period | $ (25,381) | $ (33,070) | $ (25,381) | $ (33,070) | |
[1] | Amounts reclassified from accumulated other comprehensive loss represent the amortization of net actuarial loss and net unrecognized prior service credit included in net periodic benefit cost, which is reflected under Miscellaneous income (expense), net in the accompanying consolidated and combined statements of operations. |
Income Taxes (Rate Reconciliati
Income Taxes (Rate Reconciliation - Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Income tax benefit | $ 323 | $ 1,255 | $ 486 | $ 1,440 |
Federal statutory income tax rate, percent | 21.00% | 21.00% | 21.00% | 21.00% |
Change in deferred tax assets valuation allowance, amount of expense (benefit) | $ 35,819 | $ (27,074) | $ 64,251 | $ (8,922) |
Tax expense related to noncontrolling interest income (loss), amount | 891 | 1,840 | ||
Nondeductible expense officer compensation, tax expense | 1,318 | 1,669 | 2,550 | |
Effective income tax rate reconciliation, reversal of share-based compensation cancellation, amount of tax expense | 2,337 | 2,337 | ||
State and local income taxes, amount of expense (benefits) | $ (12,705) | $ 9,621 | (22,519) | 4,323 |
Excess tax benefits on share-based compensation, amount of tax benefit | $ (2,481) | |||
Income Taxes Paid | $ 15,526 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 | Apr. 17, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | |||||
Aggregate voting power held by related party | 70.70% | 70.70% | |||
Capital expenditures incurred but not yet paid | $ 76,945 | $ 46,151 | |||
Common Class A [Member] | |||||
Related Party Transaction [Line Items] | |||||
Percentage of common stock owned by related party | 3.10% | 3.10% | |||
Common Class B [Member] | |||||
Related Party Transaction [Line Items] | |||||
Percentage of common stock owned by related party | 100.00% | 100.00% | |||
BCE [Member] | |||||
Related Party Transaction [Line Items] | |||||
Notes payable, related parties, current | $ 637 | $ 637 | $ 637 | ||
Other nonconsolidated affiliate [Member] | |||||
Related Party Transaction [Line Items] | |||||
Property, plant and equipment, additions | $ 24,989 | $ 7,370 | |||
Capital expenditures incurred but not yet paid | $ 9,151 | $ 2,121 | |||
Madison Square Garden Sports [Member] | |||||
Related Party Transaction [Line Items] | |||||
Sponsorship Sales And Services Representation Agreement, Exclusive Right And Obligation To Sell Sponsorships, Initial Stated Term | 10 years | ||||
Arena License Agreement, Right To Use Venue, Term | 35 years | ||||
Madison Square Garden Sports [Member] | Delayed Draw Facilities [Member] | Knicks [Member] | |||||
Related Party Transaction [Line Items] | |||||
Maximum Borrowing Capacity | $ 110,000 | ||||
Madison Square Garden Sports [Member] | Delayed Draw Facilities [Member] | Rangers [Member] | |||||
Related Party Transaction [Line Items] | |||||
Maximum Borrowing Capacity | $ 90,000 |
Related Party Transactions (Tra
Related Party Transactions (Transactions by Type) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | ||||
Revenues | $ 5,262 | $ 984 | $ 9,280 | $ 7,459 |
Advertising expenses | 0 | 101 | 0 | 144 |
Other operating expenses, net | 693 | 34 | 1,533 | 123 |
Madison Square Garden Sports [Member] | ||||
Related Party Transaction [Line Items] | ||||
Corporate general and administrative, net | (8,445) | (32,720) | (18,625) | (63,813) |
MSG Networks [Member] | ||||
Related Party Transaction [Line Items] | ||||
Corporate general and administrative, net | (2,334) | (2,602) | (4,877) | (5,204) |
Venue Usage [Member] [Member] | Madison Square Garden Sports [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction, amount | 0 | (20,025) | 0 | (22,104) |
Revenue-Sharing Expense | Madison Square Garden Sports [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Costs | $ 15 | $ 47,214 | $ 96 | $ 65,502 |
Related Party Transactions (T_2
Related Party Transactions (Transactions by Type Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Apr. 17, 2020 | |
Related Party Transaction [Line Items] | |||||
Sublease Income | $ 748 | $ 1,496 | |||
The Garden [Member] | |||||
Related Party Transaction [Line Items] | |||||
Operating Lease, Lease Income | 1,585 | 1,585 | |||
MSG Networks [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related Party Services Agreement | 2,374 | $ 2,641 | 4,748 | $ 5,282 | |
Madison Square Garden Sports [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related Party Services Agreement | 8,710 | 19,773 | |||
Other Related Parties [Member] | |||||
Related Party Transaction [Line Items] | |||||
Sublease Income | $ 611 | 1,229 | |||
Knicks [Member] | The Garden [Member] | |||||
Related Party Transaction [Line Items] | |||||
Operating Lease, Lease Income | $ 1,585 | ||||
Delayed Draw Facilities [Member] | Madison Square Garden Sports [Member] | Knicks [Member] | |||||
Related Party Transaction [Line Items] | |||||
Maximum Borrowing Capacity | $ 110,000 | ||||
Delayed Draw Facilities [Member] | Madison Square Garden Sports [Member] | Rangers [Member] | |||||
Related Party Transaction [Line Items] | |||||
Maximum Borrowing Capacity | $ 90,000 | ||||
Nonoperating Income (Expense) [Member] | Madison Square Garden Sports [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, amount | $ 56 | $ 111 |
Segment Reporting (Details)
Segment Reporting (Details) | 6 Months Ended |
Dec. 31, 2020segments | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
Segment Reporting (Schedule of
Segment Reporting (Schedule of Segment Reporting) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Segment Reporting Information [Line Items] | |||||
Revenues | [1] | $ 23,137 | $ 394,072 | $ 37,515 | $ 572,035 |
Direct operating expenses | [2] | 35,464 | 210,194 | 69,623 | 341,716 |
Selling, general and administrative expenses | [3] | 74,950 | 86,854 | 135,275 | 174,621 |
Depreciation and amortization | 23,875 | 27,434 | 50,457 | 54,254 | |
Restructuring charges | 1,372 | 0 | 21,299 | 0 | |
Operating Income (Loss) | (112,524) | 69,590 | (239,139) | 1,444 | |
Loss in equity method investments | (1,568) | (1,170) | (3,264) | (2,643) | |
Investment Income, Interest | 349 | 6,268 | 644 | 13,583 | |
Interest Expense | 7,675 | 144 | 8,084 | 1,249 | |
Miscellaneous income (expense), net | [4] | (7,362) | 9,355 | 26,862 | 16,386 |
Income (loss) from operations before income taxes | (128,780) | 83,899 | (222,981) | 27,521 | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | |||||
Operating Income (Loss) | (112,524) | 69,590 | (239,139) | 1,444 | |
Non-cash portion of arena license fees | 1,176 | 1,176 | |||
Share-based Payment Arrangement, Noncash Expense | 23,562 | 10,373 | 35,091 | 20,458 | |
Depreciation and amortization | 23,875 | 27,434 | 50,457 | 54,254 | |
Restructuring charges | 1,372 | 0 | 21,299 | 0 | |
Amortization of Purchase Price Accounting Adjustments | 924 | 1,068 | 1,848 | 2,188 | |
Adjusted Operating Income (Loss) | (63,967) | 108,465 | (131,620) | 78,344 | |
Other information [Abstract] | |||||
Payments to Acquire Property, Plant, and Equipment | 107,238 | 121,668 | 219,296 | 208,028 | |
Operating Segments | Madison Square Garden Entertainment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 12,669 | 325,370 | 20,224 | 445,022 | |
Direct operating expenses | 23,409 | 168,241 | 47,024 | 263,201 | |
Selling, general and administrative expenses | 65,730 | 68,869 | 118,380 | 139,218 | |
Depreciation and amortization | 19,246 | 21,128 | 41,260 | 42,915 | |
Restructuring charges | 1,372 | 21,299 | |||
Operating Income (Loss) | (97,088) | 67,132 | (207,739) | (312) | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | |||||
Operating Income (Loss) | (97,088) | 67,132 | (207,739) | (312) | |
Non-cash portion of arena license fees | 1,176 | 1,176 | |||
Share-based Payment Arrangement, Noncash Expense | 22,374 | 10,373 | 32,807 | 20,430 | |
Depreciation and amortization | 19,246 | 21,128 | 41,260 | 42,915 | |
Restructuring charges | 1,372 | 21,299 | |||
Adjusted Operating Income (Loss) | (55,272) | 98,633 | (113,549) | 63,033 | |
Other information [Abstract] | |||||
Payments to Acquire Property, Plant, and Equipment | 106,945 | 120,529 | 218,344 | 205,686 | |
Operating Segments | Tao [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 10,491 | 69,104 | 17,712 | 127,721 | |
Direct operating expenses | 10,980 | 41,159 | 20,808 | 76,826 | |
Selling, general and administrative expenses | 9,131 | 18,038 | 16,734 | 35,462 | |
Depreciation and amortization | 1,563 | 2,411 | 2,609 | 4,590 | |
Restructuring charges | 0 | 0 | |||
Operating Income (Loss) | (11,183) | 7,496 | (22,439) | 10,843 | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | |||||
Operating Income (Loss) | (11,183) | 7,496 | (22,439) | 10,843 | |
Share-based Payment Arrangement, Noncash Expense | 1,188 | 0 | 2,284 | 28 | |
Depreciation and amortization | 1,563 | 2,411 | 2,609 | 4,590 | |
Restructuring charges | 0 | 0 | |||
Adjusted Operating Income (Loss) | (8,432) | 9,907 | (17,546) | 15,461 | |
Other information [Abstract] | |||||
Payments to Acquire Property, Plant, and Equipment | 293 | 1,139 | 952 | 2,342 | |
Segment Reconciling Items [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Direct operating expenses | 924 | 1,068 | 1,848 | 2,182 | |
Selling, general and administrative expenses | 0 | 0 | 0 | 6 | |
Depreciation and amortization | 3,066 | 3,895 | 6,588 | 6,749 | |
Restructuring charges | 0 | 0 | |||
Operating Income (Loss) | (3,990) | (4,963) | (8,436) | (8,937) | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | |||||
Operating Income (Loss) | (3,990) | (4,963) | (8,436) | (8,937) | |
Share-based Payment Arrangement, Noncash Expense | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 3,066 | 3,895 | 6,588 | 6,749 | |
Restructuring charges | 0 | 0 | |||
Amortization of Purchase Price Accounting Adjustments | 924 | 1,068 | 1,848 | 2,188 | |
Adjusted Operating Income (Loss) | 0 | 0 | 0 | 0 | |
Other information [Abstract] | |||||
Payments to Acquire Property, Plant, and Equipment | 0 | 0 | 0 | 0 | |
Intersegment Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | (23) | (402) | (421) | (708) | |
Direct operating expenses | 151 | (274) | (57) | (493) | |
Selling, general and administrative expenses | 89 | (53) | 161 | (65) | |
Depreciation and amortization | 0 | 0 | 0 | 0 | |
Restructuring charges | 0 | 0 | |||
Operating Income (Loss) | (263) | (75) | (525) | (150) | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | |||||
Operating Income (Loss) | (263) | (75) | (525) | (150) | |
Share-based Payment Arrangement, Noncash Expense | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 0 | 0 | 0 | 0 | |
Restructuring charges | 0 | 0 | |||
Adjusted Operating Income (Loss) | (263) | (75) | (525) | (150) | |
Other information [Abstract] | |||||
Payments to Acquire Property, Plant, and Equipment | $ 0 | $ 0 | $ 0 | $ 0 | |
[1] | Includes revenues from related parties of $5,262 and $984 for the three months ended December 31, 2020 and 2019, respectively, and $9,280 and $7,459 for the six months ended December 31, 2020 and 2019, respectively. | ||||
[2] | Includes net charges from related parties of $15 and $23,976 for the three months ended December 31, 2020 and 2019, respectively, and $96 and $40,405 for the six months ended December 31, 2020 and 2019, respectively. | ||||
[3] | Includes net charges to related parties of $(10,086) and $(31,974) for the three months ended December 31, 2020 and 2019, respectively, and $(21,969) and $(65,757) for the six months ended December 31, 2020 and 2019, respectively. | ||||
[4] | Miscellaneous income (expense), net includes the following: Three Months Ended Six Months Ended December 31, December 31, 2020 2019 2020 2019 Unrealized and unrealized gain (loss) on equity investments with readily determinable fair value $ (7,227) $ 9,432 $ 26,431 $ 14,725 Non-service cost components of net periodic pension and postretirement benefit costs 178 (317) 294 (626) Dividend income from equity investments — 240 — 481 Measurement alternative adjustments for equity investments without readily determinable fair value — — — (532) Others, net. (For the six months ended December 31, 2019, the balance primarily reflected the impact of the elimination of Tao Group Hospitality’s three-month lag in Fiscal Year 2020) (313) — 137 2,338 Total $ (7,362) $ 9,355 $ 26,862 $ 16,386 |
Segment Reporting (Miscellaneou
Segment Reporting (Miscellaneous Income, Net) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Segment Reporting [Abstract] | |||||
Unrealized and unrealized gain (loss) on equity investments with readily determinable fair value | $ (7,227) | $ 9,432 | $ 26,431 | $ 14,725 | |
Non-Service Cost, Periodic Pension and Postretirement benefit costs | 178 | (317) | 294 | (626) | |
Dividend income from equity investments | 0 | 240 | 0 | 481 | |
Equity Investments, Measurement Alternative Adjustments | 0 | 0 | 0 | (532) | |
Other Nonoperating Income | (313) | 0 | 137 | 2,338 | |
Miscellaneous income (expense), net | [1] | $ (7,362) | $ 9,355 | $ 26,862 | $ 16,386 |
[1] | Miscellaneous income (expense), net includes the following: Three Months Ended Six Months Ended December 31, December 31, 2020 2019 2020 2019 Unrealized and unrealized gain (loss) on equity investments with readily determinable fair value $ (7,227) $ 9,432 $ 26,431 $ 14,725 Non-service cost components of net periodic pension and postretirement benefit costs 178 (317) 294 (626) Dividend income from equity investments — 240 — 481 Measurement alternative adjustments for equity investments without readily determinable fair value — — — (532) Others, net. (For the six months ended December 31, 2019, the balance primarily reflected the impact of the elimination of Tao Group Hospitality’s three-month lag in Fiscal Year 2020) (313) — 137 2,338 Total $ (7,362) $ 9,355 $ 26,862 $ 16,386 |