MSGS - Earnings call transcript Q2 2021 | Madison Square Garden Sports Corp.

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Operator

Good morning. My name is Tracea, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Madison Square Garden Sports Corp Fiscal 2021 Second Quarter Earnings Conference Call. At this time, all lines have been placed on mute to prevent any background noise. [Operator Instructions] Thank you. to conference like Danes, to now Relations. Investor would turn over the Ari I sir. ahead, go Please

Ari Danes

Thank and Good quarter you. morning, earnings XXXX Sports conference second fiscal call. welcome to MSG

morning's call our company's operations. Officer EVP, the will CEO, open will questions. Andy our Our review by Chief prepared and This will an Victoria financial up President the begin Financial results be and with this remarks, on we update call for a Lustgarten, After of followed Treasurer. with our Mink,

I'll of Commission, company If and financial forward-looking section a Private copy constitute Reform Act income, turn it adjusted X that of that Exchange the are of Investors over factors. income discussion you Andy. contained operating Securities Litigation statements disclaims operations that Analysis may note financial call. or described this discussed of its perceptions the today's are those including of results a is available industry Today's well and and the in that, provide not have and Factors, the uncertainties, reconciliation that call The future community now statements These condition And do results, non-GAAP a as in operating involve entitled today's Management's corporate guarantees forward-looking take earnings business, consolidated the X differ statements of developments we in condition and statements in of forward-looking Please following. performance any the XXXX. contain be measure. with not release, AOI, the and to pages of of website. factors during may Discussion risks and and within earnings the of various to financial and Investors the or operations a sections any of release, statements may cautioned to events result of and On our the meaning as update from actual results any and the operations, with company therein. the include which such operates it Securities company's materially and as statements financial filings obligation of Risk forward-looking

Andy Lustgarten

good in Ari, that begin near And to and number we morning, last know Rangers rollout our to be than teams of our it there close the compete COVID-XX usual, attention by normal of paying fans the positive have both and been both in again. enjoying call, to though earnings are watching started can't in term, the Lafreniere, the which Garden players NHL leagues. I'd their saying still the the the team. relationships to rosters. their pick leagues teams, we all their and while at means finish Since and seasons. And was forward draft and you, the have completed talented to challenges the used operating vaccine partners. made number The star of two clearly for operations. we're NHL the later are to both and a Rangers everyone. an like presents select welcoming back excited action. our Even one commitment pandemic picks. key what during play draft and player become Rangers Thank the the The their and first season that company return Knicks demonstrated developments The to rounds for shared the they strong and person, have Knicks a Knicks overall with leagues with by Alexi returned The additions XXXX working potential the NBA dynamic followed the each for both This success and XXXX their NBA

guard and named a talented was season the have look strong the and SEC Year them was named each progress Quickley, and Player Rangers Immanuel of forward in we young XXXX Forward Obi last and season. Knicks Year. XXXX- who over the the Toppin, to watching Basketball The +who core College XX the of leadership Player place,

have welcoming excited season. due also Garden for The games start time famous of return played to to marking December are March. arena that to of and working We the fans, the most government January season, towards And the at into the NHL-XX building XX-game restrictions, possible. teams the is since as without first the world's currently soon being safely games start home guests are back we're as NBA the while With the regular

the hosting Bills attendance, fan Buffalo hosting State, In select their for where markets addition playoff to crowds NHL are reduced developments also York following in the limited including we're two NBA and games. watching games with New

that are We fans is could eager Rangers are number how on what their Until success the of interested attendance and in the teams for time right. these mean our illustrate happens, Knicks to when just signs in obviously events person. fan we a are the of cheer seeing that

example, the of of between For the ticket Nevertheless, Rangers that And with combined we're policy, will seeing very uncertainty, and who our level have are once are those are for we average fans. approximately have and renewed, friendly to season by XX%. fan to a interest many we through ticket renewals existing we a season customers, of not refund current the even packages optimistic and Knicks reconsider grateful our and we renewal sale are the rate new loyal with pleased pandemic. customers,

a fan status. significant only ticket payments, minimal and season first deposit to about ticket requiring includes the This ticket member We been which season and pausing has a with Ranger maintain policy, have Knicks flexibility. strict current in environment holders providing

who, have their not be for support our able attend despite the about to thankful continue of fans We passionate games teams. being to remained

seasons, leagues as still launching they come been selling our for is rights retro it creates Rangers Liberty and of became November, league. media new in the the And As just time. for jerseys ratings example, we over one Statue the XXXX renewal the national pleased local one while national believe the after jerseys date, quickly of up with opportunities best in which we've early in to

reminder, the a media Canadian we the maturity NBA's expires enhanced after and strengthen deal taken regular steps an balance that of details expire operations media and sheet to completed business we resume. financial The And through are national until November, further deal borrowing debt more remain ends our a capacity. the confident its our after As will we while fundamentals US flexibility refinancing, our million Victoria extended agreements after XX-XX. season In increased XX-XX. $XXX provide schedule can shortly. have which strong, NHL

$XXX we between credit liquidity hand on in and December million availability under XX, had cash of our As over facilities.

sports the illustration $XXX of potential our for Our the their recent multiple along both $XX teams, in order of included to marketing NBA of further in provide continued in NHL's million to pleased worked as for widening has this $XX continue pool The we're season to leagues. million in these as with interest additional placement Even the approved valuations. quarter and from the billion month, Jazz. evidenced and allowing NBA, to great competence an for equity of partnership we cash also private the our It's a attractive to approximately environment, NBA commitments. drive reminder portion, the teams, a raise liquidity these such to We've long-term and period interest position. league's to to would the the fundamentals, with may for is and Last the the substantial teams, these our December. ability and and assets. positive enhance scarcity $X professional private partners closely with uncertain cash we're both outlook great recently investors to the the franchises. funds is the Utah leagues been which strong our NBA we million for on own provided value demand and be of rates creative new this of assets, completed to NHL pursue which to solutions satisfy terms by and transaction team in create Furthermore, team significant by balance league also The very announced during inventory seeing have following opportunities its NHL debt each had access own which look partners,

arena the And Rangers helmet finally, ever, we've jerseys virtual and court, be arena and vehicles the by example, sponsor. Lexus placed happy first ice, Chase on to were new signage, as first We've seen Health, name we can added practice which Kia the the TV at Knicks floor games. also games, on signage For sponsor. our Northwell and during and audiences clearly as Ranger well Rangers all as Knicks of welcome

the in about opportunity. the have continued teams remain On as the fan we esports to grows. front, interest the pandemic, and engagement throughout compete excited And long-term our sports

the and York the by sponsorship, to confident are safely And strength believe partners, Until We developments fans are fan our this company. encouraged the person. shareholders legalization New to our of remain this thank employees their fans, getting could this about in their of the our day, the the can State. for recent we We call impact then, closer potential to tunnel, turn support. in media to we engagement, bullish rollout end about that, light with and value of over I'll through around teams rights, optimistic mobile our have Victoria. welcome teams. on like of conclusion, time, In ultimately the vaccine future we are a also challenging offers I'd on the and the as continued and back gaming We of cheer navigate incredibly at business, the us our in

Victoria Mink

our to an our morning, company's position. and Andy, and you, good update on discussing Thank going November by debt refinancing begin liquidity I'm providing everyone.

in our completing financial flexibility $XXX borrowing mentioned, by a debt Andy refinancing. and increased As our capacity we November, million enhanced

under $XXX As while revolving the the under million. by increase Rangers million availability of million availability $XXX the by senior their refinancing facility $XX to increase to credit Knicks their part revolver $XXX the million, the secured

dates to extended of teams their November XXXX. facilities both maturity addition, In the

facilities previously XXXX, respectively. new in matures which reminder, into The and entered also a November a Knicks XXXX. and the Knicks XXXX credit Rangers to million As facility, mature $XX unsecured were set January also revolving September. in

had As outstanding, million our $XXX $XXX part drawn the Knicks and Entertainment quarter, term delayed revolver $XXX on million previous senior $XX drawn of and refinancing, end $XXX we of the total with loans unsecured were facility. consisting At our million million secured extinguished. the Rangers on debt Knicks of of this million, revolver MSG the

of of of and facilities. equivalents $XXX team's the as cash and million liquidity; credit XX, million revolving under our $XXX.X of to we capacity $XX.X Turning in borrowing million cash had December liquidity comprised

and teams, operating our of XXXX $XX.X and our the items, balance Entertainment expenses, net number note national by as media to our look refinancing. to million. our that These non compared balance that million to of quarter as to of including XX not a increase end cash and the may inflows represented related Our NHL our a local staff, million including cash related This for due would million agreements, access I seasons, the we well compensation debt was payments were recurring partially amounts debt the mentioned. September draw primarily $XX.X $XX.X MSG net offset grades. from fees as for include increase such and right balance revolvers, end to a senior $XX on the under $XX million Knicks various million our NHL did our and our normal recent approximately Rangers administrative recent $XX combined NBA quarter payments, NBA and secured from commercial corporate Andy that of

being primarily XX, As was September XX. million December $XXX The our revenue $XXX was collected XX, as seasons, December due as local the second fiscal tickets media to pandemic. Results of quarter balance comprised were of as through fans games credits will Both addressed by played the now make financial refunds. on for and NBA and without if was balance the $XX as not this increase but and through local played for mentioned, necessary Andy the began rights million in goods net suites, or rights, billed NBA. significantly payments be and balance which COVID-XX This quarter touch million, of than and currently deferred compared will of primarily usual. and Rangers attendance. performance. revenue the Knicks seasons the and deferred to national media national revenue from our approximately XXXX later yet are in of home I impacted And NHL games

costs. offset decrease media tickets, As impact the and fees, to decreased on lead of and Similar expenses million, to revenues to expenses. in revenues local was played quarter quarter revenue corporate off to $XX.X SG&A second basis. Entertainment, in And reflects were a are decreased direct longer $XX declines With following extent, revenue the rights I start include national not for This operations. to in loss primarily inclusion due the SG&A media $XX the arena and was we without by across for lower partially $XXX The in that a Ari. at due direct of that team year This item, expenses to did signage. and across expenses operating a for note back result, these due million including to other to no decrease decrease call a of the expenses, lower sharing as sponsorship comparable home delayed a reflected total line attendance directly million as million. in would over operating include every distributions, year-over-year not in and the but major results being Revenues now restrictions expenses, significantly of income Adjusted lower as and operating as MSG expense. attendance. results games mainly reminder, discontinued operating Garden. fans compensation turn I license team a was lesser seasons, revenues, suites overhead decline meet overhead the a they reduced that, well The criteria spin certain corporate the fees prior incur which the will

Ari Danes

open would for the Thank now questions. you, Victoria. to We like call

Operator

Wolfe question John comes Research. Janedis Your with from first Instructions] [Operator

JohnJanedis

could the well the Or you. normalized talked as least you've Hi, about and COVID equity the expected? balance about But liquidity private perceived at you NBA bolster talk partner value investments equity? further sheet a to in to on positions teams, what to I in longer think willingness for if appreciated. Andy can thank establish potential than drags bring be minority

AndyLustgarten

private I John. equity, Yes, Thanks, did MBAs some made the mention rule changes.

of comment on now. our in right point view, we're of to a As not going stakes of terms sale on hypothetical

JohnJanedis

of Okay. May a have are also you no about fans be talked step to to seasons? guys in that extent impact not shortened the what the you changes the due past, for season. Can about talk full

AndyLustgarten

question? take want you do that Victoria, to

VictoriaMink

Yes, John. sure, good morning. Hi,

our an a So you're will is attendance financials And at greater impact fan as where in we're currently this Garden at mandates. the operating by restricted have environment government The restrictions same on games said, seasons. impact in shortened compared as impact the year, give can year, I the color. the a to this of just terms of But with certainly fewer little of that you

rights revenue exclusive as perspective, media expect in for currently So of side, delivered from networks we a a a be for reduction on that basis. MSG must have to Rangers local threshold broadcast an games we the fees minimum

sponsorship the in other for camera anticipate visible that fees. But have areas, for example, could licenses, a is So and league would side, don't on side, shortened be basis it local shortened extent reductions we And impacted if other expense We those such game on thresholds the the other compensation. on operating reduces and they arena fees note in Also by right team a a Knicks side. revenues the are wide under pro rata there'll expect see in season the rights reductions media our not we just reduction a to signage seasons. our costs I also on we player in Yes, met, also currently certain expenses. additional reductions expenses. noteworthy in are media reduction right opportunities. anticipate local would as including

Operator

Ross Brandon Your next question comes LightShed with Partners. from

Brandon Ross

you help sports understand York. us mentioned you MSG, book in MSGS mobile or excitement how would sponsorship MSGE? down Could break opportunities sports legalization opportunities betting of onsite an maybe for around some as unpack Andy, and incremental the New earlier your Hey, potential and between

Andy Lustgarten

the we've Thanks in the Jersey, is the country. for what Obviously, research one would I once State but looked this New different by are there to I've Brandon. been New Meadowlands, through opened Governor gaming border gaming we're across Much sports in which a Cuomo's lots this XXXX, you market book We've largest on the time. to questions if of our largest, take of it for legalized. sports we here, not know We suggest has to the are legal. largest York opportunity it. mean regulations think company. where of encouraged recent announcement going in as regarding that places the a there Happy I be long focusing tremendous will extremely of is been -- sports the as flavors seen be. look lots And to are for

the just everybody, to book, there but both have -- a there's the opportunity book a companies of for commercialize out. a they big it's does the of question it. play it between we the it during their therefore us how Washington, a lots what's We highest would it what right big of upside I mean, from and just a ways partners. upside question derive know engagement was regulations to just sponsorship also to have in fan mean, how ways this sports a in it's is to It's top, big how like take having just make engagement. which Washington, there's programming from if of for the they and, implicitly, extra at look from course, for face. come that I money. ability on On media level. other opportunity of you if It's -- would does increased drives terms would a think So And there its - exactly make to here, just there's benefit I play sponsorship But many there's to in building. official or sports eyeballs opportunity.

Brandon Ross

anything you that rights. just the to you've available there media local level, already sports? Besides kind at be out Networks? mentioned would at to of licensed you what is MSG And Yes,

Andy Lustgarten

Do rights? you mean terms of in

Brandon Ross

MSG of that Yes, front? media Networks? Or are really is like in what more on terms additional opportunities for the an MSG the Sports of

Andy Lustgarten

we mean, being look, It's will times, is visible have many have partnerships. long have holder. ways we rights impact a rights holder I these have still will the owning there their as to term a agreements unique rights we always in networks. obviously league up deal will love with networks an Well, a being will a The asset to signage, sports. We come official And right? rights But on opportunity, sports. monetize sports an have when game rights

generate lots if not directly there are So the from of ways to second. even revenue, incremental right it's the fee

Brandon Ross

Got NHL then that right staying the in an And and being how sports more team about and you and rights, of future to? especially playing adjusted obviously to it. other hasn't cutting, and fees, announcement when shying you deal the from away Do how with surprise. kind you owner, could an coming of see been on think then And be yet. Maybe you if needs platforms NHL model the younger generally, the as NBA and length full think on There out. cord comment up local national demos on is games.

Andy Lustgarten

are lots to unpack There there.

I try I as rights media sell both that. but a NHL our me the let XX right? into highest level, be one king. right, on I we league at is the everyone after we fundamental almost And there's evolving. tell going and it's for very a premium as on. there's up for as have platforms of feel I And that's live the So not mean, the patterns do Networks content up league me, Or have mentioned, don't is top -- or you think knows, Brandon, change, MSG live we line, know start XX years deals. I coming like is But years And the is really with their sports But highest opine the good value few level, not as it's thing to can let that the about constantly that. the mentioned content. shortly, at and distribution level, may just that. right, going sports, the know me start MSG is know. what's I NBA The we I coming left more for at something come -- to landscape nothing I There's paradigm, so think media to right, the deals market

out value So platforms platforms I be buyers our the there's going to the product. more there, know and more there's are and in more that

on very the So feel once just that's in and what's about right media it impact a then have of our fact have legalized the you and long sports that of gaming, going being holder. nature term good rights, to I

the term focused year. ratings the and said, expiring on a could say NHL, not have terms liberty at of legalized mean, I it with what legalized the rights. up sports on sports shorter current it's discuss right impact that end I'm as And their I In the love at I to gaming, on everyone's holder; been negotiations. I season. being this media

but And about when feel media you I holder, future NHL more much information, all good give the -- we'll the very itself. rights on of we can't so where more NHL is be has the the

Operator

Next line David with Morgan. question the from comes Karnovsky JP of

David Karnovsky

remarks cycles to City and pandemic York some results in earnings area Prepared fallout how the the it. of New current impact to future the may and on

Andy Lustgarten

beginning you your and a sorry. second here, you over you could out Hey, where again. missed start I for David, cut the question. I start I'm hear, didn't

David Karnovsky

or just that how for future comment current the just resulting area on some and may fallout maybe cycles City Sure. of even It's pandemic to suite impact the the the sponsor can and all. York you New

Andy Lustgarten

consumer as of we're We right all So believe well I both as believe holders friendly. partners. agreements. very We we deals suite in generally in -- with now, being -- being long-term have our sponsor mean, we working with

of partners thinking single we're year on focused and working our ago. more a to very hopeful than partners, long rebounds, city York feel staying very every And today New is close place getting now. in But partners it a right with different our we're Obviously, the lively on So I'm our all term. day the was here.

but we've to feel with season, focused of we're to the take while point this I they've about times. and partners, how us long been been long so able term the And on relationships, and these partners, long really hard good a term our suite view, both holders during and very difficult as working it's term way currently

David Karnovsky

Do then expect NHL NBA if Okay, controlling how be question. up firms untimely further team a first much an as or might to view? interest you maybe your follow overall that And open to so, teams? John's PE impact taking, values in in

Andy Lustgarten

note Okay, it for can the was public pretty on any have stakes controlling both drive comment stakes. but than have buy -- approved pretty recent a multiple league's team minority to stakes. minority a And to which hard detailed believe minority certain obviously it's voting Not stake help you changes multiple well that This who process that. funds T on teams, focused control valuations. own teams. as approved about me we as the in further stakes predictable I'll in will are very

than that. more you much give can't So

Operator

[David from Your with of comes next line the Bernberg.] question Becco

Unidentified Analyst

had that for Great, reopening housekeeping, you perspective some regulators or as a Victoria, thanks are than I'm shed one love the extent you quick phased with any to occurs. the likely so of insights curious the and to local CBA how to once a so will terms Garden and hear fans? not prospective timeline in flows player respect much on could the reopening. of for this I'd share specifically, disease you or for more NHL of thresholds NBA you've question. forward? talks be revised some year on much. a from vaccination could the years the state able a might your And respect regarding the just year? light compensation considered. with going to an Andy, if thoughts incidence capacity reopening accrual accounting being affect And specifics And to for The to And Thanks share with throughout you're for cash if it's

Andy Lustgarten

I you. am happy Thank to.

this, but to So -- Bills increasingly was have was the He on just in a the clear, clear -- regarded as has New City. the of host I'm reopening. fans a the permitted reopening a both here he Cuomo -- you as it always economy, Governor recently recently, in let's York been start New two host It importance state playoff follow Buffalo as sure pilot been their XX% the pretty needed for in but State have wide York with games. success. to well

far I -- addition, has are with the limited announce of very the heels to I'm levels XX% as positivity opening very a moves and we're then restaurants mean, he That the XX. the pattern moves move this In starting to have been comes happy February so the capacity he -- capacity. on as recent able host towards State. here reduced -- York now New of rates in fuller

New increased. And York in I'm So capacities the see to expect going I City. that things that I'm down will continue

as or the in starting followed wedding March. assuming that increase XXX are parties their addition, or protocols state announced such capacity In can gatherings receptions that he people, to announced

positive So increases. towards that's another move moving capacity and

fast very here vaccine clearly The a night of be further vocal the critical And with and delivering of I economy over as and mentioned health been amount everybody. so getting last even is definitely And in three going governor saw this on fully reopened. possible. the to weeks. as next yes, there New vaccines that distributed he focused York vaccine is safety reopening very has when rollout the towards

of to And further our should fans, look, safety important most thing the here is our But mean, drive in so the opening, rollout York. even New athletes, that employees. that's I terms our of our us in vaccine

open including we are, experience. there's testing. going enjoyed stock on to can open, been a protocols contacted safe, this what have great measurement way. are everyone an focused And we're the phase and dialogue do So so that to getting in just And the on a and we and be maintain continue and possible really

Victoria Mink

the question David, then, CBA. and your around the was Okay, mechanics around

me with let first, So the NBA. start

So the flexibility. the collective bargaining for agreement more amended NBA includes

So right. it's the of ensure wide ultimately XX% COVID-XX receive the new to terms added as approximately players a league the result revenues, that still of

lays player XX%, a the with the the minimum So increases cap for flat the seasons CBA XX% now trigger, can is escrow. to year and inclusive the and CBA. XXXX while cap and XXXX-XX remainder the a in through the at compensation a season by example, in luxury salary out up the salary are of with annual the And same last the of escrow for maximum the of be season of XX%, X% reduced or remains

So, and includes CBA the amended NHL year on extension. the a then side four

it September expires So in now XXXX.

includes a some of visibility. COVID-XX. So, also more gives NHL result amendment The obviously, terms also as additional new us that flexibility, adding

for for NHL, example, increases throughout agreed only of average be they'll XXXX kept the in signing their with salary also And NHL season. annual was the a the addition, XXXX last modest the salaries has players XXXX-XX the portion and also defer to bonuses. for And So cap season. flat

new maximum established. with recovery been escrow also having rates So

place of league So with to the ultimately in achieve, wide the XX% revenues. mechanism same the players receiving

So wide the two the generally think with of revenue. players, but when end about XX% results receiving the are ultimately league you different leagues, a the little mechanisms the the is same

Operator

Ben Swinburne comes Stanley. with Morgan Your question next from

Ben Swinburne

of just cash and through revenue around want Andy, the would about move about morning. flows cash thinking can next quarters end you're be through And couple season, of you then, whether Good end the of from about to could of great. year, also the as particularly the sort help am the have year your the us in fiscal tell deferred kind the fiscal rest we think refunds tickets. balance? I of Anything pulling Victoria, some of I be you you if cash Knicks. Thanks. season into us the the around takes but flows going the to over ask you puts

a like to Quickley, team doing, fan on seems it during the try picked excitement. you doing would anything just be what level and I'm draft. to wishing period, in specifically maximize guys share there engagement steal at to can pandemic, during So tough this Thanks. wondering everyone's what have in to I'm looks wondering guys really to But the are great. interest up try And fan engagement maximize they congratulations the you are the were games. obviously, you

Andy Lustgarten

Ben. Thanks

first talk in question flow and why about -- second, flows. don't cash I me that Let so answer can I step

with -- happens a tie had what last our -- we've pushing little actually how it years. for been anyway fans. communicate definitely the with We've to couple we've bit made shift of So we've been we to

groups We've media. and connect on better. been fans, connect people? hard very how social to or That retired focused players, So with either obviously many right directly players But you people, communicate people? very now, our focused our that with And how of slowly or current on the we've access. we've we small getting roundtables we've been So do done better in been increasing with it's coaches do very person. people connect

and with it seen really to was I have I is So a a team our you've great their rounder, there. made the connect got we draft, first Gordon we where really in moment the don't welcomed video. our during really And second our to proud if We're was And people players right it, that round yes, of camera. on the it. And there's Jeff scenes. going, get want first trade bringing behind fans. a NHL team know got we and

I Ranger seems users ways really, on And new people direction. right fastest other times we out NHL, line of released as in a it's of which on. give or fastest the The and clothes, insight record for ratings, roll been sold connect selling we say in with jersey, interactions also a and called and and connect our trending the jersey partnership unique to very they have in the on those how new with the of focused our to everything out Knicks I'd what's we've in branded we're to focused clothes side, of more our be our a / NHL which Liberty and and Retro that Kith so also on types side was design people, jerseys the been And of where such do think quickly selling our became one them. been it of successful. NHL. a jersey, I items Kith, pretty of doing going we've And shows think we how people all

have in So we voice building. trying we'd to we're with it obviously stay We're to would stay when do ways have we to them our connected. people. the different just trying and a give But people to have than touch in we're in trying

say of fan I during way people's rolled that's thing credit had and been teams give very and not there deposit. -- charging haven't, money their We very We to we've earlier, took having keep I On they allowed to, friendly a haven't for we get think Many important And the don't one cards would other cash people's we an won't beginning season We by that a membership allowed a is fan so this remain year. comment Victoria ready people that. flow far really we people that's We believe these far, didn't our next side, year, low people renewal did we've just into will do so decision. people mentioned to just to ticket give treat amount times. we're option. didn't friendly. there, I'll I very is let policy take cycle. people a but we

So obviously, and starts, announced around a charging But once that. the will haven't timing we be of period renewal it. there

We it started philosophy talk to it. But I was that top it important customers, tie we treat Victoria thought how But our close I'll on about soon. of our cash yet. coming to does let very because just on flow. haven't it's

Victoria Mink

to Andy. We in measures date with quarter million $XXX our taken we've a at cost Thank facilities. including in end and about. confident $XX.X Yes, great. our available the capacity liquidity right, million me Rangers Knicks position, step cash the reduction million some Yes, just of the liquidity that talked we've feel back, then of under and and you, balance Ben, a take $XXX.X let

the mentioned remarks approximately also, million. which $XX think access may be of in of billion our portion is that one NHS our placement look the I prepared to items also private we recent $X would

So our XX cash or balance that's December liquidity. reflected in not

position. this about CBA the by is feeling it payments cash are of had of I as recovery. relates liquidity is and the indicated, compensation player we to provided good about And league talking So timing as part our to assist the with

extent, what's to we're and you a think expect lot is about So so in important local record when received the media to and December approach, goods have revenue through and the two we the But national revenue refunds. we necessary friendly played revenue, deferred seasons Andy rights next particularly we've of as at over the we play said, earn to good remember, then we feel a games there but to very I quarters. deferred that through well. position XX, earn as think hope a But or as in make advance would has cash if an like in general fan and

Operator

David Barclays. Your question last with Joyce from is

David Joyce

Thank questions, you. please. Two

trying sports how the aspect. COVID you've on that expenses the that handled of status there via fee you've sports to in the look be gaming concepts that you new into First the And and variability expense, are Thank impacts, lease air can kind the legislation normalcy And purification on what about legally given a of betting going state you. league's Covid, should integrity the a will is the some think also then to of process? the the would got Or out the forward? in that take like is related required equation What like period? in for cleaning? any expenses just discuss the question like inserting we second participate thing

Andy Lustgarten

start expenses? David. revenue Thanks about Victoria, do to you with talking want

Victoria Mink

sure. Yes,

the impacts. COVID me on Let touch

the arena MSG the Entertainment license fee later payments me just seasons have starting that. I through games than Yes, our through touch usual, those with and agreement restrictions think no during both year and XX Knicks on let the obviously impacted December by the December for Rangers starting attendance arena been to only games date, you on referenced fan few to playing first license the a explicitly later games. so

for So these are to at season, the arena really, have fans which attendance fees would restrictions XX% arena And, currently due of games opportunity just some at into situation The reduction we're playing the course, were be we But an back the Garden. license the welcome to great. this point at fluid. the remains if

expense We've then Our quarter fee NHL in just think and on overall, it tickets, relates reductions that bit you a our change some compensation. half for specifically about revenues. have the anticipating et we beverage of shortened But talked talked of food, because of some the lower on to to do bit marketing costs reductions arena accordingly. assessments, player league players better And of little sort COVID. ensure last league season, as receiving only still a the expenses. game revenue both license to would of I about sharing impacts this amending would wide various payments expense side compared we be quarter revenue expense impacts we normal CBA that are cetera and day suites lower season. And A seeing a the leagues we're the right, as expense, and mentioned

forward bulk board back COVID. to. obviously, building what relates across we're think the to savings in seeing that's types of getting as really I the looking But we're it fans is that the of the

Andy Lustgarten

And because to the revenue I'd events put are The marginal fan already. it, already we note, events at one least what have I think on. on is about even

because -- we time make have to -- dollar change or had questions we to our profitable. every do any it's building, about have The we like are marginally actually what sale it remember, new a That a your make we've every changes question ticket it's effective So to built need building. relatively we we revenue, profitable.

it'll safely, a will profit we if additional And filter carefully. there been thinking And our are costs. fans. a some we're we -- there revenue able be starting pretty might positive have be have to is we've related it about very so -- scratch, There's lot marginal and lot be, strong. those not to and But of from a fan system yes,

keep comment up teams, we for sure soon, sponsorship But and including as few media the sports In noted, the terms well matters. as years to as NHL as other is around the well as I opportunities. the for rights commercialize. NBA And in growth fee, that I'm there's of ways legal leagues saying a as coming your I'll said, can't on opportunities, on really I number of provide question the mean, both look, and integrity I believe I gaming

specifically So integrity but I the thing. can't comment on

Operator

like the I turn over to closing back And remarks. to for Ari would call

Ari Danes

look to day. call. a We all on you speaking forward next our Thank for earnings with us. you joining Have good

Operator

gentlemen and ladies participation. you, Thank for your

now disconnect. You may

Madison Square Garden Sports (MSGS) 3 Feb 212021 Q2 Earnings call transcript