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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________
FORM 10-Q
________________________
(Mark One)
 ☑QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2024
OR
 ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from             to
Commission File Number: 001-41627
msgentcorpcover.jpg
MADISON SQUARE GARDEN ENTERTAINMENT CORP.
(Exact name of registrant as specified in its charter) 
Delaware 92-0318813
(State or other jurisdiction of
incorporation or organization)		 (I.R.S. Employer
Identification No.)
Two Penn PlazaNew York,NY10121
(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (212) 465-6000
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A Common StockMSGENew York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☑ Yes ☐ No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☑ Yes ☐ No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer☑Accelerated filer☐
Non-accelerated filer☐Smaller reporting company☐
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☑ No
Number of shares of common stock outstanding as of October 31, 2024:
Class A Common Stock par value $0.01 per share —41,605,791 
Class B Common Stock par value $0.01 per share —6,866,754 


INDEX TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Page

1

PART I – FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
MADISON SQUARE GARDEN ENTERTAINMENT CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(in thousands, except per share data)
As of
September 30,June 30,
20242024
ASSETS
Current Assets:
Cash, cash equivalents, and restricted cash$37,613 $33,555 
Accounts receivable, net95,525 77,259 
Related party receivables, current20,768 17,469 
Prepaid expenses and other current assets106,490 90,801 
Total current assets260,396 219,084 
Non-Current Assets:
Property and equipment, net642,338 633,533 
Right-of-use lease assets391,058 388,658 
Goodwill69,041 69,041 
Indefinite-lived intangible assets63,801 63,801 
Deferred tax assets, net
81,733 68,307 
Other non-current assets101,960 110,283 
Total assets$1,610,327 $1,552,707 
LIABILITIES AND DEFICIT
Current Liabilities:
Accounts payable, accrued and other current liabilities$159,261 $203,750 
Related party payables, current43,671 42,506 
Long-term debt, current20,313 16,250 
Operating lease liabilities, current27,014 27,736 
Deferred revenue270,955 215,581 
Total current liabilities521,214 505,823 
Non-Current Liabilities:
Long-term debt, net of deferred financing costs646,975 599,248 
Operating lease liabilities, non-current451,071 427,014 
Other non-current liabilities39,765 43,787 
Total liabilities1,659,025 1,575,872 
Commitments and contingencies (see Note 8)
Deficit:
Class A Common Stock (a)
460 456 
Class B Common Stock (b)
69 69 
Additional paid-in-capital26,909 33,481 
Treasury stock at cost (4,365 shares outstanding as of September 30, 2024 and June 30, 2024)
(140,512)(140,512)
Retained earnings
96,282 115,603 
Accumulated other comprehensive loss(31,906)(32,262)
Total deficit(48,698)(23,165)
Total liabilities and deficit$1,610,327 $1,552,707 
_________________
(a)    Class A Common Stock, $0.01 par value per share, 120,000 shares authorized; 45,958 and 45,556 shares issued as of September 30, 2024 and June 30, 2024, respectively.
(b)    Class B Common Stock, $0.01 par value per share, 30,000 shares authorized; 6,867 shares issued as of September 30, 2024 and June 30, 2024.
See accompanying notes to the unaudited condensed consolidated financial statements.

2

MADISON SQUARE GARDEN ENTERTAINMENT CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(in thousands, except per share data)
Three Months Ended
 September 30,
20242023
Revenues (a)
Revenues from entertainment offerings
$115,081 $116,505 
Food, beverage, and merchandise revenues18,975 23,261 
Arena license fees and other leasing revenue
4,658 2,446 
Total revenues138,714 142,212 
Direct operating expenses (a)
Entertainment offerings, arena license fees, and other leasing direct operating expenses
(86,466)(90,559)
Food, beverage, and merchandise direct operating expenses
(11,243)(11,118)
Total direct operating expenses(97,709)(101,677)
Selling, general, and administrative expenses (a)
(45,746)(48,822)
Depreciation and amortization(13,781)(13,585)
Restructuring credits (charges)
40 (11,553)
Operating loss
(18,482)(33,425)
Interest income
372 851 
Interest expense(14,043)(14,287)
Other expense, net
(769)(4,469)
Loss from operations before income taxes
(32,922)(51,330)
Income tax benefit
13,601 659 
Net loss
$(19,321)$(50,671)
Loss per share attributable to MSG Entertainment’s stockholders:
Basic and diluted
$(0.40)$(1.00)
Weighted-average number of shares of common stock:
Basic and diluted
48,217 50,437 
_________________
(a)    See Note 12. Related Party Transactions for further information on related party arrangements.




See accompanying notes to the unaudited condensed consolidated financial statements.


3

MADISON SQUARE GARDEN ENTERTAINMENT CORP.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited)
(in thousands)
Three Months Ended
September 30,
20242023
Net loss
$(19,321)$(50,671)
Other comprehensive income, before income taxes:
Pension plans and postretirement plans
541 238 
Other comprehensive income, before income taxes541 238 
Income tax expense (185)(41)
Other comprehensive income, net of income taxes
356 197 
Comprehensive loss
$(18,965)$(50,474)
 

See accompanying notes to the unaudited condensed consolidated financial statements.
























4

MADISON SQUARE GARDEN ENTERTAINMENT CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(in thousands)
Three Months Ended
September 30,
20242023
OPERATING ACTIVITIES:
Net loss
$(19,321)$(50,671)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization13,781 13,585 
Share-based compensation expense6,262 12,965 
Deferred income tax benefit
(13,612)(659)
Amortization of deferred financing costs852 812 
Net unrealized and realized (gains) losses on equity investments with readily determinable fair value
(124)3,901 
Other non-cash adjustments94 305 
Change in assets and liabilities:
Accounts receivable, net(18,360)(36,610)
Related party receivables and payables, net
(2,134)44,654 
Prepaid expenses and other current and non-current assets(6,457)(10,391)
Accounts payable, accrued and other current, and non-current liabilities
(64,648)(41,184)
Deferred revenue55,374 63,172 
Operating lease right-of-use assets and lease liabilities20,934 1,499 
Net cash (used in) provided by operating activities
$(27,359)$1,378 
INVESTING ACTIVITIES:
Capital expenditures(5,905)(3,334)
Proceeds from sale of investments
55 12,844 
Loan to related parties
— (65,000)
Other investing activities(840)— 
Net cash used in investing activities
$(6,690)$(55,490)
FINANCING ACTIVITIES:
Proceeds from revolving credit facility
55,000 73,000 
Principal repayment on long-term debt
(4,063)— 
Proceeds from related party loan— 126 
Payments for debt financing costs
— (633)
Taxes paid in lieu of shares issued for equity-based compensation
(12,830)(11,834)
Stock repurchases
— (51,386)
Net cash provided by financing activities
$38,107 $9,273 
Net increase (decrease) in cash, cash equivalents, and restricted cash
4,058 (44,839)
Cash, cash equivalents, and restricted cash, beginning of period
33,555 84,355 
Cash, cash equivalents, and restricted cash, end of period
$37,613 $39,516 
Non-cash investing and financing activities:
Capital expenditures incurred but not yet paid or paid by landlord $15,379 $1,291 
Non-cash stock repurchases in lieu of payment of loan due from related party
$— $65,512 
Non-cash financing lease obligation
$(130)$— 
See accompanying notes to the unaudited condensed consolidated financial statements.

5


MADISON SQUARE GARDEN ENTERTAINMENT CORP.
CONDENSED CONSOLIDATED STATEMENTS OF DEFICIT (Unaudited)
(in thousands)
Common Stock
Additional
Paid-in
Capital
Treasury
Stock
Retained earnings (Accumulated deficit)
Accumulated Other Comprehensive Loss
Total Deficit
Balance as of June 30, 2024$525 $33,481 $(140,512)$115,603 $(32,262)$(23,165)
Net loss
— — — (19,321)— (19,321)
Other comprehensive income
— — — — 356 356 
Comprehensive loss
— — — — — (18,965)
Share-based compensation
— 6,262 — — — 6,262 
Tax withholding associated with shares issued for share-based compensation4 (12,834)— — — (12,830)
Balance as of September 30, 2024$529 $26,909 $(140,512)$96,282 $(31,906)$(48,698)
Balance as of June 30, 2023$519 $17,727 $(25,000)$(28,697)$(34,021)$(69,472)
Net loss
— — — (50,671)— (50,671)
Other comprehensive income— — — — 197 197 
Comprehensive loss
— — — — — (50,474)
Share-based compensation— 12,965 — — — 12,965 
Tax withholding associated with shares issues for share-based compensation4 (11,838)— — — (11,834)
Stock repurchases, inclusive of tax— (874)(115,512)— — (116,386)
Balance as of September 30, 2023$523 $17,980 $(140,512)$(79,368)$(33,824)$(235,201)


See accompanying notes to the unaudited condensed consolidated financial statements.


6
MADISON SQUARE GARDEN ENTERTAINMENT CORP.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
All amounts included in the following Notes to Condensed Consolidated Financial Statements (unaudited) are presented in thousands, except per share data or as otherwise noted.
Note 1. Description of Business and Basis of Presentation
Description of Business
Madison Square Garden Entertainment Corp. (together with its subsidiaries, as applicable, the “Company” or “MSG Entertainment”), is a live entertainment company comprised of iconic venues and marquee entertainment content. 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 operates and reports financial information in one reportable segment.
The Company’s portfolio of venues includes: Madison Square Garden (“The Garden”), The Theater at Madison Square Garden, Radio City Music Hall, the Beacon Theatre, and The Chicago Theatre. The Company also owns and produces the original production, the Christmas Spectacular Starring the Radio City Rockettes (the “Christmas Spectacular”). The Company also has an entertainment and sports bookings business, which showcases a broad array of compelling concerts, family shows and special events, as well as a diverse mix of sporting events, for millions of guests annually.
MSG Entertainment Distribution
On April 20, 2023, Sphere Entertainment Co. (together with its subsidiaries, as applicable, “Sphere Entertainment”) distributed approximately 67% of the outstanding common stock of the Company to its stockholders (the “Distribution”), with Sphere Entertainment retaining approximately 33% of the outstanding common stock of the Company in the form of Class A common stock, $0.01 par value per share (“Class A Common Stock”) immediately following the Distribution. As a result, the Company became an independent publicly traded company on April 21, 2023. Following the completion of the secondary offering by Sphere Entertainment of the Company’s Class A Common Stock on September 22, 2023, Sphere Entertainment no longer owns any of the Company’s outstanding common stock. See Note 1. Description of Business and Basis of Presentation to the Company’s audited consolidated and combined financial statements and notes thereto as of June 30, 2024 and 2023 and for the three years ended June 30, 2024, 2023 and 2022 (the “Audited Consolidated and Combined Annual Financial Statements”) included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2024 filed with the Securities and Exchange Commission (the “SEC”) on August 16, 2024 (the “2024 Form 10-K”) for more information regarding the Distribution.
Basis of Presentation
The Company reports on a fiscal year basis ending on June 30th (“Fiscal Year”). In these unaudited condensed consolidated financial statements, the years ending and ended on June 30, 2026, June 30, 2025 and 2024, respectively, are referred to as “Fiscal Year 2026,” “Fiscal Year 2025” and “Fiscal Year 2024,” respectively.
The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and Article 10 of Regulation S-X of the SEC, and should be read in conjunction with the Company’s Audited Consolidated and Combined Annual Financial Statements.
In the opinion of the Company, the accompanying financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of September 30, 2024 and its results of operations and cash flows for the three months ended September 30, 2024 and 2023. The condensed consolidated balance sheet as of June 30, 2024 was derived from the Audited Consolidated and Combined Annual Financial Statements but does not contain all of the footnote disclosures from the Audited Consolidated and Combined Annual Financial Statements.
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. As a result of the production of the Christmas Spectacular, arena license fees in connection with the use of The Garden by the New York Knicks (the “Knicks”) of the National Basketball Association and the New York Rangers (the “Rangers”) of the National Hockey League, the Company generally earns a disproportionate share of its annual revenues in the second and third quarters of its fiscal year.
Reclassifications
For purposes of comparability, certain prior period amounts have been reclassified to conform to the current year presentation in accordance with GAAP. The accompanying unaudited condensed consolidated financial information for the three months ended September 30, 2023 has been revised to change the presentation of our revenue and direct operating expenses from an aggregated to a disaggregated basis.



7
MADISON SQUARE GARDEN ENTERTAINMENT CORP.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Note 2. Summary of Significant Accounting Policies
A. Principles of Consolidation
All significant intercompany accounts and balances within the Company’s consolidated businesses have been eliminated.
B. Use of Estimates
The preparation of the accompanying condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Such estimates include the provision for credit losses, goodwill, intangible assets, other long-lived assets, deferred tax assets, pension and other postretirement benefit obligations and the related net periodic benefit cost, and other liabilities. In addition, estimates are used in revenue recognition, depreciation and amortization, litigation matters and other matters. Management believes its use of estimates in the financial statements to be reasonable.
Management evaluates its estimates on an ongoing basis using historical experience and other factors, including the general economic environment and actions it may take in the future. The Company adjusts such estimates when facts and circumstances dictate. However, these estimates may involve significant uncertainties and judgments and cannot be determined with precision. In addition, these estimates are based on management’s best judgment at a point in time and, as such, these estimates may ultimately differ from actual results. Changes in estimates resulting from weakness in the economic environment or other factors beyond the Company’s control could be material and would be reflected in the Company’s condensed consolidated financial statements in future periods.
C. Revenue Recognition and Direct Operating Expenses
The following reflects an update to the Company’s comprehensive revenue recognition and direct operating expense accounting policies to align with the disaggregation of revenue and direct operating expenses as presented on the condensed consolidated statements of operations.
The Company generates revenue from the provision of services and sale of tangible products, as well as leasing transactions. Revenues are presented under these three categories in the condensed consolidated statements of operations, as described below.
Service revenue, presented as “Revenues from entertainment offerings” primarily includes:
•Ticket sales and other ticket-related revenue
•Venue license fees for events held at the Company’s venues that the Company does not produce or promote/co-promote
•Sponsorship and signage
•Suite licenses and single night suite rentals
•Advertising commissions and related service fees
•Commissions related to the sale of merchandise for which the Company is not the principal in the underlying transaction
Direct operating expenses related to the provision of services and leasing, presented as “Entertainment offerings, arena license fees, and other leasing direct operating expenses”, primarily include:(a)
•Event production costs including direct personnel expenses
•Venue operations and infrastructure costs (a)
•Venue rental costs for venues not owned by the Company
•Sponsorship and signage fulfillment costs
•Contractual revenue sharing expenses related to suite licenses and certain internal signage
•Event-related marketing and advertising costs
Product revenue, presented as “Food, beverage, and merchandise revenues”, includes:
•Sales of food and beverage during events held at the Company’s venues
•Sales of the Company’s merchandise at the Company’s venues and via traditional retail channels
Direct operating expenses related to the sale of products, presented as “Food, beverage, and merchandise direct operating expenses” include:
•Costs of goods sold including direct personnel expenses
•Contractual revenue sharing expenses related to food and beverage sold at events held by Madison Square Garden Sports Corp. (together with its subsidiaries, as applicable, “MSG Sports”) at The Garden
Lease revenue, presented as “Arena license fees and other leasing revenue”, includes:
•Rental fees related to the arena license agreements that require the Knicks and the Rangers to play their home games at The Garden (the “Arena License Agreements”) with MSG Sports



8
MADISON SQUARE GARDEN ENTERTAINMENT CORP.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
•Sublease income
_________________
(a)    Venue operations and infrastructure costs are not specifically allocated to each revenue category, but are instead attributed in their entirety to service revenue, which is the Company’s principal revenue category. Leasing direct operating expenses materially consist of venue operations and infrastructure costs. As a result, the Company combines service and leasing direct operating expenses within “Entertainment offerings, arena license fees, and other leasing direct operating expenses” for presentation purposes.
The Company recognizes revenue when, or as, performance obligations under the terms of a contract are satisfied, which generally occurs when, or as, control of promised goods or services is transferred to customers. Revenue is measured as the amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services (“transaction price”). To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing the most likely amount to which the Company expects to be entitled. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Estimates of variable consideration and the determination of whether to include such estimated amounts in the transaction price are based largely on an assessment of the Company’s anticipated performance and all information that is reasonably available. The Company accounts for taxes collected from customers and remitted to governmental authorities on a net basis and excludes these amounts from revenues.
In addition, the Company defers certain costs to fulfill the Company’s contracts with customers to the extent such costs relate directly to the contracts, are expected to generate resources that will be used to satisfy the Company’s performance obligations under the contracts, and are expected to be recovered through revenue generated under the contracts. Contract fulfillment costs are expensed as the Company satisfies the related performance obligations.
Arrangements with Multiple Performance Obligations
The Company enters into arrangements with multiple performance obligations, such as multi-year sponsorship agreements, which may derive revenues for the Company, as well as Sphere Entertainment and MSG Sports within a single arrangement. The Company also derives revenue from similar types of arrangements which are entered into by Sphere Entertainment and MSG Sports. Payment terms for such arrangements can vary by contract, but payments are generally due in installments throughout the contractual term. The performance obligations included in each sponsorship agreement vary and may include advertising and other benefits such as, but not limited to, signage at The Garden and the Company’s other venues, digital advertising, event or property-specific advertising, as well as non-advertising benefits such as suite licenses and event tickets. To the extent the Company’s multi-year arrangements provide for performance obligations that are consistent over the multi-year contractual term, such performance obligations generally meet the definition of a series as provided for under the accounting guidance. If performance obligations are concluded to meet the definition of a series, the contractual fees for all years during the contract term are aggregated and the related revenue is recognized proportionately as the underlying performance obligations are satisfied.
The timing of revenue recognition for each performance obligation is dependent upon the facts and circumstances surrounding the Company’s satisfaction of its respective performance obligation. The Company allocates the transaction price for such arrangements to each performance obligation within the arrangement based on the estimated relative standalone selling price of the performance obligation. The Company’s process for determining its estimated standalone selling prices involves management’s judgment and considers multiple factors including company specific and market specific factors that may vary depending upon the unique facts and circumstances related to each performance obligation. Key factors considered by the Company in developing an estimated standalone selling price for its performance obligations include, but are not limited to, prices charged for similar performance obligations, the Company’s ongoing pricing strategy and policies, and consideration of pricing of similar performance obligations sold in other arrangements with multiple performance obligations.
The Company may incur costs such as commissions to obtain its multi-year sponsorship agreements. The Company assesses such costs for capitalization on a contract by contract basis. To the extent costs are capitalized, the Company estimates the useful life of the related contract asset, which may be the underlying contract term or the estimated customer life depending on the facts and circumstances surrounding the contract. The contract asset is amortized over the estimated useful life.
Principal versus Agent Revenue Recognition
The Company reports revenue on a gross or net basis based on management’s assessment of whether the Company acts as a principal or agent in the transaction. The determination of whether the Company acts as a principal or an agent in a transaction is based on an evaluation of whether the Company controls the good or service before transfer to the customer. When the Company concludes that it controls the good or service before transfer to the customer, the Company is considered a principal in the transaction and records revenue on a gross basis. When the Company concludes that it does not control the good or service before transfer to the customer but arranges for another entity to provide the good or service, the Company acts as an agent and records revenue on a net basis in the amount it earns for its agency service.



9
MADISON SQUARE GARDEN ENTERTAINMENT CORP.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Contract Balances
Amounts collected in advance of the Company’s satisfaction of its contractual performance obligations are recorded as a contract liability within deferred revenue and are recognized as the Company satisfies the related performance obligations. Amounts collected in advance of events for which the Company is not the promoter or co-promoter do not represent contract liabilities and are recorded within accrued and other current liabilities on the accompanying consolidated balance sheets. Amounts recognized as revenue for which the Company has a right to consideration for goods or services transferred to customers and for which the Company does not have an unconditional right to bill as of the reporting date are recorded as contract assets. Contract assets are transferred to accounts receivable once the Company’s right to consideration becomes unconditional.
Production Costs for the Company’s Original Productions
The Company defers certain costs of productions such as creative design, scenery, wardrobes, rehearsal and other related costs for the Company’s proprietary shows, reported under Prepaid expenses and other current assets and Other non-current assets. Deferred production costs are amortized on a straight-line basis over the course of a production’s performance period using the expected life of a show’s assets and are recorded as a component of Entertainment offerings, arena license fees, and other leasing direct operating expenses on the Company’s condensed consolidated statement of operations. Deferred production costs are subject to recoverability assessments whenever there is an indication of potential impairment.
Revenue Sharing Expenses
Revenue sharing expenses are determined based on contractual agreements between the Company and MSG Sports, primarily related to suite licenses, certain internal signage and in-venue food and beverage sales and are recorded as a component of Entertainment offerings, arena license fees, and other leasing direct operating expenses on the Company’s condensed consolidated statement of operations.
D. Recently Issued and Adopted Accounting Pronouncements
Recently Issued Accounting Pronouncements
In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Improvement to Reportable Segment Disclosures. This ASU aims to improve segment disclosures through enhanced disclosures about significant segment expenses. The standard requires disclosure of significant expense categories and amounts for such expenses, including those segment expenses that are regularly provided to the chief operating decision maker, easily computable from information that is regularly provided, or significant expenses that are expressed in a form other than actual amounts. This standard will be effective for the Company as of and for the Fiscal Year ending June 30, 2025 and is required to be applied retrospectively to all prior periods presented in the financial statements. The Company continues to evaluate the impact of the additional disclosure requirements on the Company’s consolidated financial statements.
In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, a final standard on improvements to income tax disclosures which applies to all entities subject to income taxes. The standard requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The standard is intended to benefit investors by providing more detailed income tax disclosures that would be helpful to understand an entity’s exposure to potential changes in jurisdictional tax legislation and the ensuing risks and opportunities, assess income tax information that affects cash flow forecasts and capital allocation decisions, and identify potential opportunities to increase future cash flows. This standard will be effective for the Company in Fiscal Year 2026 and should be applied prospectively. The Company is currently evaluating the impact of the additional disclosure requirements on the Company’s consolidated financial statements.
In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses, requiring additional disclosures about specified categories of expenses included in certain expense captions presented on the face of the income statement. This standard will be effective for the Company as of and for the Fiscal Year ending June 30, 2028, and may be applied either prospectively to financial statements issued for reporting periods after the effective date of this ASU or retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact of adopting this guidance on the Company’s consolidated financial statements.
Note 3. Revenue Recognition
Contracts with Customers
All revenue recognized in the condensed consolidated statements of operations is considered to be revenue from contracts with customers in accordance with FASB Accounting Standards Codification (“ASC”) Topic 606, Revenue From Contracts with Customers, except for revenues from the Arena License Agreements, leases and subleases that are accounted for in accordance with



10
MADISON SQUARE GARDEN ENTERTAINMENT CORP.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
ASC Topic 842, Leases.
Disaggregation of Revenue
The following table disaggregates the Company’s revenue by major source based upon the timing of satisfaction of the Company’s performance obligations to the customer for the three months ended September 30, 2024 and 2023:
Three Months Ended
September 30,
20242023
Event-related offerings (a)
$89,182 $94,990 
Sponsorship, signage, and suite licenses (b)
38,938 39,815 
Other (c)
5,936 4,961 
Total revenues from contracts with customers
134,056 139,766 
Arena license fees and other leasing revenue 4,658 2,446 
Total revenues
$138,714 $142,212 
_________________
(a)    Event-related offerings revenues are recognized at a point in time.
(b)    See Note 2. Summary of Significant Accounting Policies and Note 4. Revenue Recognition, included in the Company’s Audited Consolidated and Combined Annual Financial Statements 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 and (ii) venue tours.
In addition to the disaggregation of the Company’s revenue as disclosed above, the following table disaggregates the Company’s revenues by revenue category, for the three months ended September 30, 2024 and 2023.
Three Months Ended
September 30,
20242023
Ticketing and venue license fee revenues (a)
$70,206 $71,729 
Sponsorship and signage, suite, and advertising commission revenues
42,890 43,336 
Food, beverage, and merchandise revenues
18,975 23,261 
Other1,985 1,440 
Total revenues from contracts with customers
134,056 139,766 
Arena license fees and other leasing revenue 4,658 2,446 
Total revenues
$138,714 $142,212 
_________________
(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.
Contract Balances
The following table provides information about the opening and closing contract balances from the Company’s contracts with customers as of September 30, 2024 and June 30, 2024:
As of
September 30,
2024		June 30,
2024
Receivables from contracts with customers, net (a)
$100,967 $74,113 
Contract assets, current (b)
$7,255 $7,844 
Deferred revenue, including non-current portion (c)
$270,955 $215,581 
    ________________
(a)    Receivables from contracts with customers, net, which are reported in Accounts receivable, net and Related party receivables, current in the Company’s condensed consolidated balance sheets, represent the Company’s unconditional rights to consideration under its contracts with customers. As of September 30, 2024 and June 30, 2024, the Company’s receivables from contracts with customers above included $5,114 and $2,432, respectively, related to various related parties. See Note 12. Related Party Transactions for further details on related party arrangements.
(b)    Contract assets, current, which are reported as Prepaid expenses and other current assets in the Company’s condensed 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 the customers. Deferred revenue is reduced and the related revenue is recognized once the underlying goods or services are transferred to a customer. Revenue



11
MADISON SQUARE GARDEN ENTERTAINMENT CORP.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
recognized for the three months ended September 30, 2024 relating to the deferred revenue balance as of June 30, 2024 was $85,476.
Transaction Price Allocated to the Remaining Performance Obligations
As of September 30, 2024, the Company’s remaining performance obligations under contracts were approximately $601,000, of which 57% is expected to be recognized over the next two years and an additional 43% of the balance is expected to be recognized thereafter. This primarily relates to performance obligations under sponsorship and suite license agreements that have original expected durations longer than one year and for which the consideration is not variable. 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.
Note 4. Restructuring Credits (Charges)
During the three months ended September 30, 2024, the Company recorded restructuring credits of $40 related to adjustments for previously accrued termination benefits for certain corporate executives and employees. During the three months ended September 30, 2023, the Company recorded restructuring charges of $11,553, inclusive of $6,788 of share-based compensation expenses, shown in accounts payable, accrued and other current liabilities and additional paid-in-capital on the condensed consolidated balance sheet. Changes to the Company’s restructuring liability through September 30, 2024 were as follows:
Restructuring Liability
June 30, 2024
$7,140 
Restructuring credits
(40)
Payments
(3,640)
September 30, 2024$3,460 
Note 5. Investments
As of September 30, 2024, the Company held an investment in Townsquare Media, Inc. (“Townsquare”). The Company also held an investment in DraftKings Inc. (“DraftKings”), which was sold during the first quarter of Fiscal Year 2024:
•    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.”
As of September 30, 2024, the Company also held other equity investments held in trust under the Company’s Executive Deferred Compensation Plan. Refer to Note 10. Pension Plans and Other Postretirement Benefit Plans for further details regarding the plan
The fair value of the Company’s investments in Class A common stock of Townsquare and Class A common stock of DraftKings was 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 carrying value of the Company’s investments, which is reported under Other non-current assets in the accompanying condensed consolidated balance sheets as of September 30, 2024 and June 30, 2024, is as follows:
As of
September 30,
2024		June 30,
2024
Equity investments with readily determinable fair values:
Townsquare Class A common stock$1,287 $1,438 
Other equity investments with readily determinable fair values held in trust under the Company’s Executive Deferred Compensation Plan5,047 4,226 
Equity method investments and equity investments without readily determinable fair values(a)
708 656 
Total investments$7,042 $6,320 
_______________
(a)    Inclusive of the Company’s investment in Oak View Group’s Crown Properties Collection, LLC ("CPC").



12
MADISON SQUARE GARDEN ENTERTAINMENT CORP.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
The following table summarizes the realized and unrealized gain (loss) on equity investments with readily determinable fair value, which is reported in Other income (expense), net for the three months ended September 30, 2024 and 2023:
Three Months Ended
September 30,
20242023
Unrealized loss — Townsquare
$(101)$(5,449)
Unrealized gain (loss) — Executive Deferred Compensation Plan220 (145)
Realized gain from shares sold — DraftKings
— 1,548 
Realized gain from shares sold — Townsquare
5 — 
Total realized and unrealized gain (loss)
$124 $(4,046)
Supplemental information on realized gain:
Shares of common stock sold — DraftKings— 425 
Cash proceeds from common stock sold — DraftKings$— $12,844 
Shares of common stock sold — Townsquare
5 — 
Cash proceeds from common stock sold — Townsquare
$55 $— 
Note 6. Property and Equipment, Net
As of September 30, 2024 and June 30, 2024, property and equipment, net consisted of the following:
As of
September 30,
2024		June 30,
2024
Land$62,768 $62,768 
Buildings1,012,370 1,011,308 
Equipment, furniture, and fixtures
350,351 348,075 
Leasehold improvements
133,267 133,267 
Construction in progress
29,442 10,193 
Total Property and equipment$1,588,198 $1,565,611 
Less: accumulated depreciation and amortization
(945,860)(932,078)
Property and equipment, net$642,338 $633,533 
The Company recorded depreciation expense on property and equipment of $13,781 and $13,585 for the three months ended September 30, 2024 and 2023, respectively, which is recognized in Depreciation and amortization in the condensed consolidated statements of operations.
Note 7. Goodwill and Intangible Assets
As of September 30, 2024 and June 30, 2024, the carrying amount of goodwill was $69,041.
The Company’s indefinite-lived intangible assets as of September 30, 2024 and June 30, 2024 were as follows:
As of
September 30,
2024		June 30,
2024
Trademarks$61,881 $61,881 
Photographic related rights1,920 1,920 
Total indefinite-lived intangible assets$63,801 $63,801 
During the first quarter of Fiscal Year 2025, the Company performed its annual qualitative impairment test of goodwill and indefinite-lived intangible assets and determined that there were no impairments of goodwill and indefinite-lived intangibles identified as of the impairment test date.

13
MADISON SQUARE GARDEN ENTERTAINMENT CORP.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Note 8. Commitments and Contingencies
Commitments
See Note 11. Commitments and Contingencies, included in the Company’s Audited Consolidated and Combined Annual Financial Statements, for details on the Company’s commitments. The Company’s commitments as of June 30, 2024 included a total of $323,178 (primarily related to contractual obligations).
During the three months ended September 30, 2024, the Company did not have any material changes in its non-cancelable contractual obligations (other than activities in the ordinary course of business). See Note 9. Credit Facilities for details of the principal repayments required under the Company’s credit facilities.
Delayed Draw Term Loan Facility
On April 20, 2023, a subsidiary of the Company, MSG Entertainment Holdings, LLC (“MSG Entertainment Holdings”), entered into a delayed draw term loan facility (the “DDTL Facility”) with Sphere Entertainment. Pursuant to the DDTL Facility, MSG Entertainment Holdings committed to lend up to $65,000 in delayed draw term loans to Sphere Entertainment on an unsecured basis until October 20, 2024. See Note 11. Commitments and Contingencies to the Company’s Audited Consolidated and Combined Annual Financial Statements for more information regarding the DDTL Facility. On July 14, 2023, Sphere Entertainment drew down the full amount of $65,000 under the DDTL Facility. On August 9, 2023, Sphere Entertainment repaid the full principal amount of the DDTL Facility and accrued interest and commitment fees by delivering 1,923 shares of the Company’s Class A Common Stock held by Sphere Entertainment, as permitted as payment under the DDTL Facility. Such shares have been classified by the Company pursuant to the Stock Repurchase Program (as defined and further explained in Note 13. Additional Financial Information) as treasury shares and are no longer outstanding on the date of repayment.
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, if any), management does not believe that resolution of these lawsuits will have a material adverse effect on the Company.
Note 9. Credit Facilities
See Note 12. Credit Facilities, included in the Company’s Audited Consolidated and Combined Annual Financial Statements for more information regarding the Company’s credit facilities. The following table summarizes the presentation of the outstanding balances under the Company’s credit agreements as of September 30, 2024 and June 30, 2024:

As of
September 30,
2024		June 30,
2024
Current Portion
National Properties Term Loan Facility
$20,313 $16,250 
Current portion of long-term debt
$20,313 $16,250 
As of
September 30, 2024June 30, 2024
PrincipalUnamortized Deferred Financing CostsNetPrincipalUnamortized Deferred Financing CostsNet
Non-current Portion
National Properties Term Loan Facility
$601,250 $(8,814)$592,436 $609,375 $(9,624)$599,751 
National Properties Revolving Credit Facility
55,000 (461)54,539 — (503)(503)
Long-term debt, net of deferred financing costs
$656,250 $(9,275)$646,975 $609,375 $(10,127)$599,248 

14
MADISON SQUARE GARDEN ENTERTAINMENT CORP.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
National Properties Facilities
General. MSG National Properties, LLC (“MSG National Properties”), MSG Entertainment Holdings and certain subsidiaries of MSG National Properties are party to a credit agreement dated June 30, 2022 (as amended, the “National Properties Credit Agreement”) with JP Morgan Chase Bank, N.A., as administrative agent and the lenders and L/C issuers party thereto, providing for a five-year, $650,000 senior secured term loan facility (the “National Properties Term Loan Facility”) and a five-year, $150,000 revolving credit facility (the “National Properties Revolving Credit Facility” and, together with the National Properties Term Loan Facility, the “National Properties Facilities”). Up to $25,000 of the National Properties Revolving Credit Facility is available for the issuance of letters of credit. As of September 30, 2024, outstanding letters of credit were $18,826 and the remaining balance available under the National Properties Revolving Credit Facility was $76,174.
Interest Rates. Borrowings under the current National Properties Facilities bear interest at a floating rate, which at the option of MSG National Properties may be either (a) a base rate plus an applicable margin ranging from 1.50% to 2.50% per annum, determined based on the total leverage ratio of MSG National Properties and its restricted subsidiaries, or (b) adjusted Term SOFR (i.e., Term SOFR plus 0.10%) plus an applicable margin ranging from 2.50% to 3.50% per annum, determined based on the total leverage ratio of MSG National Properties and its restricted subsidiaries. The National Properties Credit Agreement requires MSG National Properties to pay a commitment fee ranging from 0.30% to 0.50% in respect of the daily unused commitments under the National Properties Revolving Credit Facility. MSG National Properties 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 National Properties Credit Agreement. The interest rate on the National Properties Facilities as of September 30, 2024 was 7.45%.
Principal Repayments. Subject to customary notice and minimum amount conditions, the Company may voluntarily repay outstanding loans under the National Properties Facilities or terminate commitments under the National Properties Revolving Credit Facility, at any time, in whole or in part, subject only to customary breakage costs in the case of prepayment of Term SOFR loans. The National Properties Facilities will mature on June 30, 2027. The principal obligations under the National Properties Term Loan Facility are to be repaid in quarterly installments beginning with the fiscal quarter ended March 31, 2023, in an aggregate amount equal to 2.50% per annum (0.625% per quarter), stepping up to 5.0% per annum (1.25% per quarter) in the fiscal quarter ending September 30, 2025, with the balance due at the maturity of the facility. The principal obligations under the National Properties Revolving Credit Facility are due at the maturity of the facility. Under certain circumstances, MSG National Properties is required to make mandatory prepayments on loans outstanding, including 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), subject to certain exceptions.
Covenants. The National Properties Credit Agreement includes financial covenants requiring MSG National Properties and its restricted subsidiaries to maintain a specified minimum liquidity level, a specified minimum debt service coverage ratio and specified maximum total leverage ratio. The minimum liquidity level is set at $50,000, and is tested based on the level of average daily liquidity, consisting of cash and cash equivalents and available revolving commitments, over the last month of each quarter over the life of the National Properties Facilities. The debt service coverage ratio covenant began testing in the fiscal quarter ended December 31, 2022, and was set at a ratio of 2:1 before stepping up to 2.5:1 in the fiscal quarter ended September 30, 2024. The leverage ratio covenant began testing in the fiscal quarter ended June 30, 2023. It is tested based on the ratio of MSG National Properties and its restricted subsidiaries’ consolidated total indebtedness to adjusted operating income, with an initial maximum ratio of 6:1, which stepped down to 5.5:1 in the fiscal quarter ended June 30, 2024 and steps down to 4.5:1 in the fiscal quarter ending June 30, 2026. As of September 30, 2024, MSG National Properties and its restricted subsidiaries were in compliance with the covenants of the National Properties Credit Agreement.
In addition to the financial covenants discussed above, the National Properties Credit Agreement and the related security agreement contain certain customary representations and warranties, affirmative and negative covenants and events of default. The National Properties Credit Agreement 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 Credit Agreement, 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.
Guarantors and Collateral. All obligations under the National Properties Facilities are guaranteed by MSG Entertainment Holdings and MSG National Properties’ existing and future direct and indirect domestic subsidiaries, other than the subsidiaries that own The Garden and certain other excluded subsidiaries (the “Subsidiary Guarantors”).



15
MADISON SQUARE GARDEN ENTERTAINMENT CORP.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
All obligations under the National Properties Facilities, 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 Theatre.
Interest payments and loan principal repayments made by the Company under the National Properties Credit Agreement were as follows:
Interest PaymentsPrincipal Repayments
Three Months EndedThree Months Ended
September 30,September 30,
2024202320242023
National Properties Facilities
$13,277 $13,193 $4,063 $— 
The carrying value and fair value of the Company’s debt reported in the accompanying condensed consolidated balance sheets were as follows:
As of
September 30, 2024June 30, 2024
Carrying
Value (a)
Fair
Value
Carrying
Value (a)
Fair
Value
National Properties Facilities
$676,563 $672,630 $625,625 $622,497 
________________
(a)    The total carrying value of the Company’s debt as of September 30, 2024 and June 30, 2024 is equal to the current and non-current principal payments for the Company’s credit agreements excluding unamortized deferred financing costs of $9,275 and $10,127, respectively.
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 instruments for which the inputs are readily observable.
Note 10. Pension Plans and Other Postretirement Benefit Plans
See Note 13. Pension Plans and Other Postretirement Benefit Plans, included in the Company’s Audited Consolidated and Combined Annual Financial Statements for more information regarding the Pension Plans, Postretirement Plan, the Madison Square Garden 401(k) Savings Plans, The Madison Square Garden 401(k) Savings Plan (the “401(k) Plan”), the MSG Entertainment Holdings, LLC Excess Savings Plan (together with the 401(k) Plan, the “Savings Plans”), together with the associated excess savings plan, and the Madison Square Garden 401(k) Union Plan (the “Union Savings Plan”).
Defined Benefit Pension Plans and Other Postretirement Benefit Plans
The following table presents components of net periodic benefit cost for the Pension Plans and Postretirement Plan included in the accompanying condensed consolidated statements of operations for the three months ended September 30, 2024 and 2023. 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 Other expense, net.
Pension PlansPostretirement Plan
Three Months EndedThree Months Ended
September 30,September 30,
2024202320242023
Service cost$18 $17 $5 $6 
Interest cost1,668 1,469 30 24 
Expected return on plan assets(1,292)(1,091)— — 
Recognized actuarial loss446 238 6 — 
Net periodic cost
$840 $633 $41 $30 
Contributions for Qualified Defined Benefit Pension Plans
During the three months ended September 30, 2024, the Company contributed $3,300 to a non-contributory, qualified cash balance retirement plan covering the Company’s non-union employees.



16
MADISON SQUARE GARDEN ENTERTAINMENT CORP.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Defined Contribution Plans
For the three months ended September 30, 2024 and 2023, expenses related to the Savings Plans and Union Savings Plan included in the accompanying condensed consolidated statements of operations are as follows:
Three Months Ended
September 30,
20242023
Savings Plans$2,024 $2,034 
Union Savings Plan$82 $50 
Executive Deferred Compensation
See Note 13. Pension Plans and Other Postretirement Benefit Plans, included in the Company’s Audited Consolidated and Combined Annual Financial Statements, for more information regarding the Company’s Executive Deferred Compensation Plan (the “Deferred Compensation Plan”). The Company recorded compensation expense of $220 for the three months ended September 30, 2024 and a compensation cost credit of $145 for the three months ended September 30, 2023, within Selling, general, and administrative expenses to reflect the remeasurement of the Deferred Compensation Plan liability. In addition, the Company recorded a gain of $220 for the three months ended September 30, 2024 and a loss of $145 for the three months ended September 30, 2023, within Other expense, net to reflect remeasurement of the fair value of assets under the Deferred Compensation Plan.
The following table summarizes amounts recognized related to the Deferred Compensation Plan in the condensed consolidated balance sheets:
As of
September 30,
2024		June 30,
2024
Deferred Compensation Plan assets (included in Other non-current assets)
$5,047 $4,226 
Deferred Compensation Plan liabilities (included in Other non-current liabilities)
$(5,063)$(4,226)

Note 11. Share-based Compensation
The Company has two share-based compensation plans: the 2023 Employee Stock Plan and the 2023 Stock Plan for Non-Employee Directors. See Note 14. Share Based Compensation, included in the Company’s Audited Consolidated and Combined Annual Financial Statements, for more information on these plans.
Share-based compensation expense for the Company’s restricted stock units (“RSUs”) and performance stock units (“PSUs”) are recognized in the condensed consolidated statements of operations as a component of direct operating expenses or selling, general, and administrative expenses. The following table summarizes the Company’s share-based compensation expense:
Three Months Ended
September 30,
20242023
Share-based compensation expense (a)
$6,262 $6,177 
Fair value of awards vested (b)
$29,022 $26,400 
________________
(a)    The expense shown excludes $6,788 for the three months ended September 30, 2023, which was reclassified to Restructuring charges in the condensed consolidated statements of operations as detailed in Note 4. Restructuring Credits (Charges).
(b)     To fulfill required statutory tax withholding obligations for the applicable income and other employment taxes, RSUs and PSUs with an aggregate value of $12,808 and $11,817 were retained by the Company during the three months ended September 30, 2024 and 2023, respectively.
For the three months ended September 30, 2024 and 2023 all RSUs and stock options were excluded from the anti-dilutive calculation because the Company reported a net loss for the period and, therefore, their impact on reported loss per share would have been antidilutive.
As of September 30, 2024, there was $55,333 of unrecognized compensation cost related to unvested RSUs and PSUs held by the Company’s direct employees. The cost is expected to be recognized over a weighted-average period of approximately 2.5 years.
Award Activity
RSUs
During the three months ended September 30, 2024 and 2023, 433 and 562 RSUs were granted and 416 and 476 RSUs vested,



17
MADISON SQUARE GARDEN ENTERTAINMENT CORP.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
respectively.
PSUs
During the three months ended September 30, 2024 and 2023, 386 and 506 PSUs were granted and 305 and 241 PSUs vested, respectively.
Note 12. Related Party Transactions
As of September 30, 2024, members of the Dolan family, for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, and members of the Dolan family including trusts for the benefit of members of the Dolan family (collectively, the “Dolan Family Group”) collectively beneficially owned 100% of the Company’s outstanding Class B Common Stock, $0.01 par value per share (“Class B Common Stock”) and approximately 4.1% of the Company’s outstanding Class A Common Stock (inclusive of options exercisable within 60 days of September 30, 2024). Such shares of Class A Common Stock and Class B Common Stock, collectively, represent approximately 63.6% of the aggregate voting power of the Company’s outstanding common stock. Members of the Dolan Family Group are also the controlling stockholders of Sphere Entertainment, MSG Sports, and AMC Networks Inc.
See Note 17. Related Party Transactions, included in the Company’s Audited Consolidated and Combined Annual Financial Statements for a description of the Company’s current related party arrangements. There have been no material changes in such related party arrangements except as described below.
In the third quarter of Fiscal Year 2024, the Company entered into a commercial agreement with CPC, under which CPC provides sponsorship sales services. The Company recorded commission expense of $494 and $0 for the three months ended September 30, 2024 and 2023, respectively. As of September 30, 2024 and June 30, 2024, prepaid expenses associated with this arrangement were $6,998 and $5,993, respectively, and are reported under Prepaid expenses and other current assets, and Other non-current assets in the accompanying condensed consolidated balance sheets. The Company provided a notice of termination with respect to the commercial agreement on September 20, 2024 and is currently negotiating the related wind down.
From time to time the Company enters into arrangements with 605, LLC (“605”). James L. Dolan, the Company’s Executive Chairman, Chief Executive Officer and a director, and his spouse, Kristin A. Dolan, owned 605 until September 13, 2023. Kristin A. Dolan is also the founder and was the Chief Executive Officer of 605. 605 provides audience measurement and data analytics services to the Company and its subsidiaries in the ordinary course of business. In August 2022, a subsidiary of Sphere Entertainment entered into a three-year agreement with 605, valued at $750, covering several customer analysis projects per year in connection with events held at our venues, which was assigned to the Company in connection with the Distribution. Pursuant to this arrangement, the Company recognized $34 of expense for the three months ended September 30, 2023. On September 13, 2023, 605 was sold to iSpot.tv, and James L. Dolan and Kristin A. Dolan now hold a minority interest in iSpot.tv. As a result, as of September 13, 2023, 605 is no longer considered to be a related party.
Revenues and Operating Expenses
The following table summarizes the composition and amounts of the transactions with the Company’s affiliates. The significant components of these amounts are discussed below. These amounts are reflected in revenues and operating expenses in the accompanying condensed consolidated statements of operations for the three months ended September 30, 2024 and 2023:
Three Months
September 30,
20242023
Revenues$7,883 $5,159 
Operating expenses (credits):
Revenue sharing expenses$1,150 $1,152 
Reimbursement under Arena License Arrangements(73)(429)
Cost reimbursement from MSG Sports(8,387)(9,861)
Cost reimbursement from Sphere Entertainment
(22,993)(30,336)
Other operating (credits) expenses, net
(1,117)553 
Total operating expenses (credits), net (a)
$(31,420)$(38,921)
_________________
(a)    Of the total operating expenses (credits), net, $1,294 and $1,310 for the three months ended September 30, 2024 and 2023, respectively, are included in direct operating expenses in the accompanying condensed consolidated statements of operations, and $(32,714) and $(40,231) for the three months ended September 30,



18
MADISON SQUARE GARDEN ENTERTAINMENT CORP.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
2024 and 2023, respectively, are included in selling, general, and administrative expenses.
Revenues
The Company recorded $1,324 of revenues under the Arena License Agreements for the three months ended September 30, 2024. In addition to the Arena License Agreements, during the three months ended September 30, 2024, the Company’s revenues from related parties primarily reflected sponsorship sales and service representation agreements of $2,751, and merchandise sharing revenues of $247, with MSG Sports. The Company also earned sublease revenue from related parties of $3,561 during the three months ended September 30, 2024.
The Company recorded $1,324 of revenues under the Arena License Agreements for the three months ended September 30, 2023. In addition, during the three months ended September 30, 2023, the Company recorded revenues under sponsorship sales and service representation agreements of $2,763, and merchandise sharing revenues of $196, with MSG Sports. The Company also earned sublease revenue from related parties of $759 during the three months ended September 30, 2023.
Note 13. Additional Financial Information
The following table provides a summary of the amounts recorded as cash, cash equivalents, and restricted cash:
As of
September 30,
2024		June 30,
2024
Cash and cash equivalents$37,307 $33,255 
Restricted cash306 300 
Total cash, cash equivalents, and restricted cash
$37,613 $33,555 
The Company’s cash, cash equivalents, and restricted cash are classified within Level I of the fair value hierarchy as it is valued using observable inputs that reflect quoted prices for identical assets in active markets. The Company’s restricted cash includes cash deposited in escrow accounts. The Company has deposited cash in an interest-bearing escrow account related to credit support, debt facilities, and collateral to workers compensation and general liability insurance obligations.
Prepaid expenses and other current assets consisted of the following:
As of
September 30,
2024		June 30,
2024
Prepaid revenue sharing expense
$66,765 $54,326 
Other prepaid expenses
20,189 19,632 
Current contract assets7,255 7,844 
Inventory (a)
4,087 3,871 
Other8,194 5,128 
Total prepaid expenses and other current assets$106,490 $90,801 
_________________
(a)    Inventory is mostly comprised of food and liquor for the venues.
Other non-current assets consisted of the following:
As of
September 30,
2024		June 30,
2024
Unbilled lease receivable (a)
$89,352 $98,473 
Investments (b)
7,042 6,320 
Deferred costs3,723 3,649 
Other1,843 1,841 
Total other non-current assets$101,960 $110,283 
_________________
(a)    Unbilled lease receivable relates to the amounts recorded under the Arena License Agreement.
(b)     See Note 5. Investments for more information on long-term investments.



19
MADISON SQUARE GARDEN ENTERTAINMENT CORP.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Accounts payable, accrued and other current liabilities consisted of the following:
As of
September 30,
2024		June 30,
2024
Accounts payable$21,018 $26,594 
Accrued payroll and employee related liabilities30,579 71,145 
Cash due to promoters65,013 67,697 
Accrued expenses42,651 38,314 
Total accounts payable, accrued and other current liabilities$159,261 $203,750 
Other expense, net includes the following:
Three Months Ended
September 30,
20242023
Gains from shares sold — DraftKings$— $1,548 
Gains from shares sold - TSQ
5 — 
Net unrealized loss on equity investments with readily determinable fair value
(101)(5,449)
Other(673)(568)
Total other expense, net
$(769)$(4,469)
Income Taxes
During the three months ended September 30, 2024 and September 30, 2023, the Company made income tax payments of $381 and $0, respectively. Income tax benefit for the three months ended September 30, 2024 of $13,601, reflects an effective tax rate of 41%. The estimated annual effective tax rate exceeds the statutory federal tax rate of 21% primarily due to state taxes and excess tax deficiencies related to share-based compensation. The Company expects to utilize its net operating losses during Fiscal Year 2025 and as such will become a federal taxpayer by the end of Fiscal Year 2025.
Income tax benefit for the three months ended September 30, 2023 of $659, reflects an effective tax rate of 1%. The estimated annual effective tax rate is lower than the statutory federal tax rate of 21% primarily due to a decrease in the valuation allowance, partially offset by state taxes.
Stock Repurchase Program
On March 29, 2023, the Company’s Board of Directors authorized a share repurchase program to repurchase up to $250,000 of the Company’s Class A Common Stock (the “Stock Repurchase Program”). Pursuant to the Stock Repurchase Program, shares of Class A Common Stock may be purchased from time to time in open market or private transactions, block trades or such other manner as the Company may determine in accordance with applicable insider trading and other securities laws and regulations. The timing and amount of purchases will depend on market conditions and other factors. The Company did not repurchase any shares of Class A Common Stock under the plan in the three months ended September 30, 2024. As of September 30, 2024, the Company had approximately $110,000 remaining available for repurchases.
Note 14. Subsequent Events
In October 2024, the Company paid down $30,000 of outstanding principal under the National Properties Revolving Credit Facility. On November 7, 2024 the Company paid down the remaining outstanding principal balance of $25,000 under the National Properties Revolving Credit Facility.



20

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
This Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In this MD&A, there are statements concerning the future operating and future financial performance of Madison Square Garden Entertainment Corp. (“MSG Entertainment”) and its direct and indirect subsidiaries (collectively, “we,” “us,” “our,” “MSG Entertainment,” or the “Company”). Words such as “expects,” “anticipates,” “believes,” “estimates,” “may,” “will,” “should,” “could,” “potential,” “continue,” “intends,” “plans,” and similar words and terms used in the discussion of future operating and future financial performance identify forward-looking statements. Investors are cautioned that such forward-looking statements are not guarantees of future performance, results or events and involve risks and uncertainties and that actual results or developments may differ materially from the forward-looking statements as a result of various factors. Factors that may cause such differences to occur include, but are not limited to:
•the level of our expenses, including our corporate expenses;
•the level of our revenues, which depends in part on the popularity of the Christmas Spectacular Starring the Radio City Rockettes (the “Christmas Spectacular”), the professional sports teams whose games are played at Madison Square Garden (“The Garden”) and other events which are presented in our venues, and our ability to attract such events;
•the on-ice and on-court performance of the professional sports teams whose games we host in our venues;
•the level of our capital expenditures and other investments;
•general economic conditions, especially in the New York City and Chicago metropolitan areas where we have business activities;
•the demand for sponsorship and suite arrangements;
•competition, for example, from other venues and sports and entertainment options, including of new competing venues;
•the effect of any postponements or cancellations by third-parties or the Company of scheduled events, whether as a result of a pandemic or other public health emergency due to operational challenges and other health and safety concerns or otherwise;
•the extent to which attendance at our venues may be impacted by government actions, renewed health concerns by potential attendees and reduced tourism;
•the impact on the payments we receive under the arena license agreements (the “Arena License Agreements”) 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 as a result of government-mandated capacity restrictions, league restrictions and/or social-distancing or vaccination requirements, if any, at Knicks and Rangers games;
•changes in laws, guidelines, bulletins, directives, policies and agreements, and regulations under which we operate;
•any economic, social or political actions, such as boycotts, protests, work stoppages or campaigns by labor organizations, including the unions representing players and officials of the NBA and NHL, or other work stoppage;
•seasonal fluctuations and other variations in our operating results and cash flow from period to period;
•enhancements or changes to existing productions and the investments associated with such enhancements or changes;
•business, reputational and litigation risk if there is a cyber or other security incident resulting in loss, disclosure or misappropriation of stored personal information, or disclosure of confidential information or other breaches of our information security;
•our ability to effectively manage any impacts of a pandemic or other public health emergency (including COVID-19 variants) as well as renewed actions taken in response by governmental authorities or certain professional sports leagues, including ensuring compliance with rules and regulations imposed upon our venues, to the extent applicable;
•activities or other developments (such as a pandemic or other public health emergency) that discourage or may discourage congregation at prominent places of public assembly, including our venues;
21

•the acquisition or disposition of assets or businesses and/or the impact of, and our ability to successfully pursue, acquisitions or other strategic transactions;
•our ability to successfully integrate acquisitions, new venues or new businesses into our operations;
•our internal control environment and our ability to identify and remedy any future material weaknesses;
•the costs associated with, and the outcome of, litigation, including any negative publicity, and other proceedings to the extent uninsured, including litigation or other claims against companies we invest in or acquire;
•the impact of governmental regulations or laws, changes in how those regulations and laws are interpreted, as well as the continued benefit of certain tax exemptions and the ability to maintain necessary permits or licenses;
•the impact of any government plans to redesign New York City’s Penn Station;
•the impact of sports league rules, regulations and/or agreements and changes thereto;
•the substantial amount of debt incurred, the ability of our subsidiaries to make payments on, or repay or refinance, such debt under the National Properties Credit Agreement and our ability to obtain additional financing, to the extent required;
•financial community perceptions of our business, operations, financial condition and the industries in which we operate;
•the performance by Madison Square Garden Sports Corp. (together with its subsidiaries, as applicable, “MSG Sports”) of its obligations under various agreements with the Company and ongoing commercial arrangements, including the Arena License Agreements;
•the tax-free treatment of the Distribution (as defined below);
•our ability to achieve the intended benefits of the Distribution;
•failure of the Company or Sphere Entertainment Co. (together with its subsidiaries, as applicable, “Sphere Entertainment”) to satisfy its obligations under transition services agreements, or other agreements entered into in connection with the Distribution; and
•the additional factors described under “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended June 30, 2024 filed with the Securities and Exchange Commission (the “SEC”) on August 16, 2024 (the “2024 Form 10-K”).
We disclaim any obligation to update or revise the forward-looking statements contained herein, except as otherwise required by applicable federal securities laws. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this Quarterly Report on Form 10-Q may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.
All dollar amounts included in the following MD&A are presented in thousands, except as otherwise noted.
Introduction
This MD&A is provided as a supplement to, and should be read in conjunction with, the Company’s unaudited financial statements and accompanying notes thereto included in this Quarterly Report on Form 10-Q, as well as the Company’s audited consolidated and combined financial statements and notes thereto as of June 30, 2024 and 2023 and for the three years ended June 30, 2024, 2023 and 2022 (the “Audited Consolidated and Combined Annual Financial Statements”) included in the 2024 Form 10-K, to help provide an understanding of our financial condition, changes in financial condition and results of operations.
The Company reports on a fiscal year basis ending on June 30th (“Fiscal Year”). In this MD&A, the years ending and ended on June 30, 2025, 2024 and 2023, respectively, are referred to as “Fiscal Year 2025,” “Fiscal Year 2024” and “Fiscal Year 2023,” respectively.
Our MD&A is organized as follows:
Business Overview. This section provides a general description of our business, as well as other matters that we believe are important in understanding our results of operations and financial condition and in anticipating future trends.
22

Results of Operations. This section provides an analysis of our unaudited results of operations for the three months ended September 30, 2024 and 2023.
Liquidity and Capital Resources. This section provides a discussion of our financial condition and liquidity, an analysis of our cash flows for the three months ended September 30, 2024 and 2023, as well as certain contractual obligations.
Seasonality of Our Business. This section discusses the seasonal performance of our business.
Recently Issued Accounting Pronouncements and Critical Accounting Estimates. This section discusses accounting pronouncements that have been adopted by the Company and recently issued accounting pronouncements not yet adopted by the Company. This section should be read together with our critical accounting estimates, which are discussed in the 2024 Form 10-K under “Management's Discussion and Analysis of Financial Condition and Results of Operations — Recently Issued Accounting Pronouncements and Critical Accounting Estimates — Critical Accounting Estimates” and in the notes to the Audited Consolidated and Combined Annual Financial Statements of the Company included therein.

Business Overview
We are a live entertainment company comprised of iconic venues and marquee entertainment content. 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.
We manage our business through one reportable segment. The Company’s portfolio of venues includes: The Garden, The Theater at Madison Square Garden, Radio City Music Hall, the Beacon Theatre, and The Chicago Theatre. The Company’s business also includes the original production, the Christmas Spectacular. The Company also has an entertainment and sports bookings business, which showcases a broad array of compelling concerts, family shows and special events, as well as a diverse mix of sporting events, for millions of guests annually.
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, The Theater at Madison Square Garden, and The Chicago Theatre, and leases Radio City Music Hall and the Beacon Theatre.
All of the Company’s revenues and assets are attributed to or located in the United States and are primarily concentrated in the New York City metropolitan area.
MSG Entertainment Distribution
On April 20, 2023, Sphere Entertainment distributed approximately 67% of the outstanding common stock of the Company to its stockholders (the “Distribution”), with Sphere Entertainment retaining approximately 33% of the outstanding common stock of MSG Entertainment in the form of Class A common stock, $0.01 par value per share (“Class A Common Stock”), immediately following the Distribution (the “Retained Interest”). As a result, the Company became an independent publicly traded company on April 21, 2023. Following the completion of the secondary offering by Sphere Entertainment of the Company’s Class A Common Stock on September 22, 2023, Sphere Entertainment no longer owns any of the Company’s outstanding common stock. See Note 1. Description of Business and Basis of Presentation to the Company’s Audited Consolidated and Combined Annual Financial Statements for more information regarding the Distribution.
Factors Affecting Results of Operations
Our operating results are largely dependent on our ability to attract concerts and other events to our venues, revenues under various agreements entered into with MSG Sports, and the continuing popularity of the Christmas Spectacular. Certain of these factors in turn depend on the popularity and/or performance of the professional sports teams whose games we host at The Garden.
Our Company’s future performance is dependent in part on general economic conditions and the effect of these conditions on our customers. Weak economic conditions may lead to lower demand for suite licenses and tickets to our live productions, concerts, family shows and other events, which would also negatively affect concession and merchandise sales, and lower levels of sponsorship and venue signage. These conditions may also affect the number of concerts, family shows and other events that take place in the future. An economic downturn could adversely affect our business and results of operations.

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Results of Operations
Total revenue is presented in three categories consisting of (i) Revenues from entertainment offerings, (ii) Food, beverage, and merchandise revenues, and (iii) Arena license fees and other leasing revenues. In addition, total direct operating expenses is presented in two categories consisting of (i) Entertainment offerings and leasing direct operating expenses and (ii) food, beverage, and merchandise direct operating expenses. Prior period financial information has been revised to conform with the current period presentation.
Comparison of the three months ended September 30, 2024 versus the three months ended September 30, 2023.
 Three Months Ended
September 30,Change
20242023AmountPercentage
Revenues
Revenues from entertainment offerings
$115,081 $116,505 $(1,424)(1)%
Food, beverage, and merchandise revenues18,975 23,261 (4,286)(18)%
Arena license fees and other leasing revenue
4,658 2,446 2,212 90 %
Total revenues138,714 142,212 (3,498)(2)%
Direct operating expenses
Entertainment offerings, arena license fees, and other leasing direct operating expenses
(86,466)(90,559)4,093 5 %
Food, beverage, and merchandise direct operating expenses
(11,243)(11,118)(125)(1)%
Total direct operating expenses
(97,709)(101,677)3,968 4 %
Selling, general, and administrative expenses
(45,746)(48,822)3,076 6 %
Depreciation and amortization(13,781)(13,585)(196)(1)%
Restructuring credits (charges)40 (11,553)11,593 100 %
Operating loss
(18,482)(33,425)14,943 45 %
Interest income 372 851 (479)(56)%
Interest expense(14,043)(14,287)244 2 %
Other expense, net
(769)(4,469)3,700 83 %
Loss from operations before income taxes
(32,922)(51,330)18,408 36 %
Income tax benefit13,601 659 12,942 NM
Net loss attributable to MSG Entertainment’s stockholders
$(19,321)$(50,671)$31,350 62 %
________________________________________________________
NM — Absolute percentages greater than 200% and comparisons from positive to negative values or to zero values are considered not meaningful.
Revenues
Revenues for the three months ended September 30, 2024 decreased $3,498 as compared to the prior year period.
Revenues from Entertainment Offerings
For the three months ended September 30, 2024 the decrease in Revenues from entertainment offerings was primarily due to lower event-related revenues of $1,534.
The decrease in event-related revenues reflects (i) lower revenues from concerts of $990, which reflects lower per-concert revenues due to a shift in the mix of the events at The Garden from promoted events to rentals and a decrease in the number of events at the Company’s theaters, partially offset by an increase in the number of concerts at The Garden, and (ii) lower revenues from other live entertainment and sporting events (excluding the Knicks and Rangers) of $543.
Food, Beverage, and Merchandise Revenues
For the three months ended September 30, 2024, the decrease in food, beverage and merchandise revenues was primarily due to lower food and beverage sales at concerts at the Company’s venues, as compared to the prior year period, which was primarily due to lower
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per-concert food and beverage revenues and, to a lesser extent, the decrease in the number of events at the Company’s theaters, partially offset by the increase in the number of events at the Garden.
Arena License Fees and Other Leasing Revenue
For the three months ended September 30, 2024, the increase in revenues was due to other leasing revenue.
Direct operating expenses
Direct operating expenses for the three months ended September 30, 2024 decreased $3,968 as compared to the prior year period.
Direct Operating Expenses Associated with Entertainment Offerings, Arena License Fees and Other Leasing
For the three months ended September 30, 2024, the decrease in direct operating expenses associated with entertainment offerings, arena license fees, and other leasing primarily reflects lower event-related expenses of $3,488.
The decrease in event-related expenses reflects (i) lower direct operating expenses from concerts of $3,103, primarily due to lower per-concert expenses due to a shift in the mix of events at The Garden from promoted events to rentals, partially offset by an increase in the number of events at The Garden, and (ii) lower direct operating expenses from other live entertainment and sporting events (excluding the Knicks and Rangers) of $385.
Direct Operating Expenses Associated with Food, Beverage, and Merchandise
For the three months ended September 30, 2024, the increase in food, beverage and merchandise direct operating expenses was primarily driven by an increase in food and beverage costs related to concerts held at the Company’s venues partially offset by a decrease in food and beverage costs related to other live entertainment and sporting events held at the Company’s venues.
Selling, general, and administrative expenses
For the three months ended September 30, 2024, selling, general, and administrative expenses decreased $3,076, as compared to the prior year period. The decrease was primarily due to (i) lower professional fees, mainly due to the absence of non-recurring costs incurred and paid by the Company in the prior year period for the sale of the Retained Interest by Sphere Entertainment; (ii) a decrease in employee compensation and benefits; and (iii) lower other costs, partially offset by higher rent expense.
Depreciation and amortization
For the three months ended September 30, 2024, depreciation and amortization increased $196, as compared to the prior year period primarily due to the increase in fixed assets in the first quarter of Fiscal Year 2025.
Restructuring credits (charges)
For the three months ended September 30, 2024, restructuring charges decreased $11,593, as compared to the prior year period, which reflects termination benefits provided in the prior year period due to a workforce reduction of certain executives and employees.
Operating loss
For the three months ended September 30, 2024, operating loss improved by $14,943. The improvement in operating loss for the three months ended September 30, 2024 was primarily due to lower restructuring charges and, to a lesser extent, a decrease in direct operating expenses, and selling, general and administrative expenses, partially offset by a decrease in revenues, as compared to the prior year period.
Interest income
For the three months ended September 30, 2024, interest income decreased $479, as compared to the prior year period primarily due to lower average balances and lower interest rates in the Company’s cash, cash equivalents and restricted cash.
Interest expense
For the three months ended September 30, 2024, interest expense decreased $244, as compared to the prior year period primarily due to lower average borrowings and lower interest rates under the National Properties Facilities (as defined below under Liquidity and Capital Resources).
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Other expense, net
For the three months ended September 30, 2024, other expense, net was $769 as compared to $4,469 for the three months ended September 30, 2023, a decrease of $3,700. The change was primarily due to (i) a change in unrealized gains to an unrealized loss of $5,348, net, associated with the investment in Townsquare Media, Inc., offset by (ii) the absence of a $1,548 gain associated with the investment in DraftKings Inc. recognized in the prior year period, and (iii) higher net periodic benefit costs of $207 associated with the Company’s funded and unfunded and qualified and non-qualified defined benefit plans.
Income tax benefit
In general, the Company is required to use an estimated annual effective tax rate to measure the tax benefit or tax expense recognized in an interim period. Income tax benefit for the three months ended September 30, 2024 of $13,601, reflects an effective tax rate of 41%. The estimated annual effective tax rate exceeds the statutory federal tax rate of 21% primarily due to state taxes and excess tax deficiencies related to share-based compensation. The Company expects to utilize its net operating losses during Fiscal Year 2025 and as such will become a federal taxpayer by the end of Fiscal Year 2025.
Income tax benefit for the three months ended September 30, 2023 of $659, reflects an effective tax rate of 1%. The estimated annual effective tax rate is lower than the statutory federal tax rate of 21% primarily due to a decrease in the valuation allowance, partially offset by state taxes.
Adjusted operating income (loss) (“AOI”)
During the third quarter of Fiscal Year 2024, the Company amended the definition of adjusted operating income so that the non-cash portion of operating lease revenue related to the Company’s Arena License Agreements with MSG Sports is no longer excluded in all periods presented.
The Company evaluates its performance based on several factors, of which the key financial measure is adjusted operating income (loss), a non-GAAP financial measure. We define adjusted operating income (loss) as operating income (loss) excluding:
(i) depreciation, amortization and impairments of property and equipment, goodwill and intangible assets,
(ii) share-based compensation expense,
(iii) restructuring charges or credits,
(iv) merger, spin-off, and acquisition-related costs, including merger-related litigation expenses,
(v) gains or losses on sales or dispositions of businesses and associated settlements,
(vi) the impact of purchase accounting adjustments related to business acquisitions,
(vii) amortization for capitalized cloud computing arrangement costs and,
(viii) gains and losses related to the remeasurement of liabilities under the executive deferred compensation plan.
The Company believes that the exclusion of share-based compensation expense or benefit allows investors to better track the performance of the Company’s business without regard to the settlement of an obligation that is not expected to be made in cash. The Company eliminates merger, spin-off, and acquisition-related costs, when applicable, because the Company does not consider such costs to be indicative of the ongoing operating performance of the Company as they result from an event that is of a non-recurring nature, thereby enhancing comparability. In addition, management believes that the exclusion of gains and losses related to the remeasurement of liabilities under the executive deferred compensation plan, provides investors with a clearer picture of the Company’s operating performance given that, in accordance with GAAP, gains and losses related to the remeasurement of liabilities under the executive deferred compensation plan are recognized in Operating (income) loss whereas gains and losses related to the remeasurement of the assets under the executive deferred compensation plan, which are equal to and therefore fully offset the gains and losses related to the remeasurement of liabilities, are recognized in Other income (expense), net, which is not reflected in Operating income (loss).
The Company believes AOI is an appropriate measure for evaluating the operating performance of the Company on a consolidated basis. AOI 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 AOI measures as the most important indicators of its business performance and evaluates management’s effectiveness with specific reference to these indicators.
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AOI 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 AOI 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 AOI.
The following is a reconciliation of operating loss to adjusted operating income (loss) for the three months ended September 30, 2024 as compared to the prior year periods:
Three Months Ended
September 30,Change
20242023AmountPercentage
Operating loss$(18,482)$(33,425)$14,943 45 %
Share-based compensation (excluding share-based compensation included in restructuring charges)
6,262 6,177 85 1 %
Depreciation and amortization13,781 13,585 196 1 %
Restructuring (credits) charges
(40)11,553 (11,593)(100)%
Merger, spin-off, and acquisition-related costs (a)
— 2,035 (2,035)NM
Amortization for capitalized cloud computing arrangement costs168 — 168 NM
Remeasurement of deferred compensation plan liabilities220 (145)365 NM
Adjusted operating income (loss) (b)
$1,909 $(220)$2,129 NM
________________________________________________________
(a)    This adjustment represents non-recurring costs incurred and paid by the Company for the sale of the Retained Interest by Sphere Entertainment.
(b)     During the third quarter of Fiscal Year 2024, the Company amended the definition of adjusted operating income (loss) so that the non-cash portion of operating lease revenue related to the Company’s Arena License Agreements with MSG Sports is no longer excluded in all periods presented. Pursuant to GAAP, recognition of operating lease revenue is recorded on a straight-line basis over the term of the agreement based upon the value of total future payments under the arrangement. As a result, operating lease revenue is comprised of a contractual cash component plus or minus a non-cash component for each period presented. Adjusted operating income (loss) includes operating lease revenue of (i) $854 and $829 of revenue collected in cash for the three months ended September 30, 2024 and 2023, respectively, and (ii) a non-cash portion of $470 and $495 for the three months ended September 30, 2024 and 2023, respectively.


NM — Absolute percentages greater than 200% and comparisons from positive to negative values or to zero values are considered not meaningful.
Liquidity and Capital Resources
Sources and Uses of Liquidity
Our primary sources of liquidity are cash and cash equivalents, cash flows from our business operations and available borrowing capacity under the National Properties Revolving Credit Facility (as defined below). Our principal uses of cash include working capital-related items (including funding our operations), capital spending, debt service, investments and related loans and advances that we may fund from time to time. We may also use cash to continue to repurchase shares of our Class Common A Stock pursuant to the share repurchase program authorized by our Board of Directors on March 29, 2023, of which there was approximately $110,000 remaining as of September 30, 2024. Our decisions as to the use of our available liquidity will be based upon the ongoing review of the funding needs of the business, the optimal allocation of cash resources, and the timing of cash flow generation. To the extent that we desire to access alternative sources of funding through the capital and credit markets, challenging U.S. and global economic and market conditions could adversely impact our ability to do so at that time.
We regularly monitor and assess our ability to meet our net funding and investing requirements. As of September 30, 2024, the Company’s unrestricted cash and cash equivalents balance was $37,307. The principal balance of the Company’s total debt outstanding as of September 30, 2024 was $676,563 and the Company had $76,174 of available borrowing capacity under the National Properties Revolving Credit Facility. We believe we have sufficient liquidity from cash and cash equivalents, available borrowing capacity under our credit facilities and cash flows from operations to fund our operations and satisfy any obligations for the foreseeable future.
Financing Agreements
See Note 9. Credit Facilities, to the financial statements included in “— Item 1. Financial Statements” of this Quarterly Report on Form 10-Q for discussions of the Company’s debt obligations and financing agreements.
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National Properties Facilities
General. MSG National Properties, LLC (“MSG National Properties”), MSG Entertainment Holdings, LLC (“MSG Entertainment Holdings”) and certain subsidiaries of MSG National Properties are party to a credit agreement dated June 30, 2022 (as amended, the “National Properties Credit Agreement”) with JP Morgan Chase Bank, N.A., as administrative agent and the lenders and L/C issuers party thereto, providing for a five-year, $650,000 senior secured term loan facility (the “National Properties Term Loan Facility”) and a five-year, $150,000 revolving credit facility (the “National Properties Revolving Credit Facility” and, together with the National Properties Term Loan Facility, the “National Properties Facilities”). Up to $25,000 of the National Properties Revolving Credit Facility is available for the issuance of letters of credit. As of September 30, 2024, outstanding letters of credit were $18,826 and the remaining balance available under the National Properties Revolving Credit Facility was $76,174.
Interest Rates. Borrowings under the current National Properties Facilities bear interest at a floating rate, which at the option of MSG National Properties may be either (a) a base rate plus an applicable margin ranging from 1.50% to 2.50% per annum, determined based on the total leverage ratio of MSG National Properties and its restricted subsidiaries, or (b) adjusted Term SOFR (i.e., Term SOFR plus 0.10%) plus an applicable margin ranging from 2.50% to 3.50% per annum, determined based on the total leverage ratio of MSG National Properties and its restricted subsidiaries. The National Properties Credit Agreement requires MSG National Properties to pay a commitment fee ranging from 0.30% to 0.50% in respect of the daily unused commitments under the National Properties Revolving Credit Facility. MSG National Properties 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 National Properties Credit Agreement. The interest rate on the National Properties Facilities as of September 30, 2024 was 7.45%.
Principal Repayments. Subject to customary notice and minimum amount conditions, the Company may voluntarily repay outstanding loans under the National Properties Facilities or terminate commitments under the National Properties Revolving Credit Facility, at any time, in whole or in part, subject only to customary breakage costs in the case of prepayment of Term SOFR loans. The National Properties Facilities will mature on June 30, 2027. The principal obligations under the National Properties Term Loan Facility are to be repaid in quarterly installments beginning with the fiscal quarter ended March 31, 2023, in an aggregate amount equal to 2.50% per annum (0.625% per quarter), stepping up to 5.0% per annum (1.25% per quarter) in the fiscal quarter ending September 30, 2025, with the balance due at the maturity of the facility. Under certain circumstances, MSG National Properties is required to make mandatory prepayments on loans outstanding, including 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), subject to certain exceptions.
Covenants. The National Properties Credit Agreement includes financial covenants requiring MSG National Properties and its restricted subsidiaries to maintain a specified minimum liquidity level, a specified minimum debt service coverage ratio and specified maximum total leverage ratio. The minimum liquidity level is set at $50,000, and is tested based on the level of average daily liquidity, consisting of cash and cash equivalents and available revolving commitments, over the last month of each quarter over the life of the National Properties Facilities. The debt service coverage ratio covenant began testing in the fiscal quarter ended December 31, 2022, and was set at a ratio of 2:1 before stepping up to 2.5:1 in the fiscal quarter ended September 30, 2024. The leverage ratio covenant began testing in the fiscal quarter ended June 30, 2023. It is tested based on the ratio of MSG National Properties and its restricted subsidiaries’ consolidated total indebtedness to adjusted operating income, with an initial maximum ratio of 6:1, which stepped down to 5.5:1 in the fiscal quarter ended June 30, 2024 and steps down to 4.5:1 in the fiscal quarter ending June 30, 2026. As of September 30, 2024, MSG National Properties and its restricted subsidiaries were in compliance with the covenants of the National Properties Credit Agreement.
In addition to the financial covenants discussed above, the National Properties Credit Agreement and the related security agreement contain certain customary representations and warranties, affirmative and negative covenants and events of default. The National Properties Credit Agreement 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 Credit Agreement, 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.
Guarantors and Collateral. All obligations under the National Properties Facilities are guaranteed by MSG Entertainment Holdings and MSG National Properties’ existing and future direct and indirect domestic subsidiaries, other than the subsidiaries that own The Garden and certain other excluded subsidiaries (the “Subsidiary Guarantors”). All obligations under the National Properties Facilities, 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
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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 Theatre.
Contractual Obligations
During the three months ended September 30, 2024, the Company did not have any material changes in its non-cancelable contractual obligations other than the recognition of an additional lease obligation and right-of-use lease asset and activities in the ordinary course of business. See Note 6. Property and Equipment, Net and Note 8. Commitments and Contingencies, to the financial statements included in “— Item 1. Financial Statements” of this Quarterly Report on Form 10-Q for further details on the Company’s contractual obligations.
Cash Flow Discussion
As of September 30, 2024, cash, cash equivalents and restricted cash totaled $37,613, as compared to $33,555 as of June 30, 2024. The following table summarizes the Company’s cash flow activities for the three months ended September 30, 2024 and 2023:
Three Months Ended
September 30,
20242023
Net cash (used in) provided by operating activities
$(27,359)$1,378 
Net cash used in investing activities
(6,690)(55,490)
Net cash provided by financing activities
38,107 9,273 
Net increase (decrease) in cash, cash equivalents and restricted cash
$4,058 $(44,839)
Operating Activities
Net cash flows from operating activities for the three months ended September 30, 2024 decreased by $28,737 as compared to the prior year period, primarily due to (i) an increase in Net income adjusted for non-cash items of $7,695, and (ii) a decrease in cash flows from changes in working capital of $36,432. The decrease in cash flows from changes in working capital were driven by negative net cash outflows from related party receivables and payables as compared to net cash inflows in the prior year period; a larger decrease in accounts payable, accrued and other current and non-current liabilities; and a smaller increase in deferred revenue, in each case as compared to the three months ended September 30, 2023.
Investing Activities
Net cash used in investing activities for the three months ended September 30, 2024 decreased by $48,800 to $6,690 as compared to the prior year period primarily due to (i) the absence of a loan to a related party under the DDTL Facility, partially offset by fewer proceeds received from the sale of investments in the current year period as compared to the prior year period.
Financing Activities
Net cash provided by financing activities for the three months ended September 30, 2024 increased by $28,834 to $38,107 as compared to the prior year period primarily due to (i) the absence of stock repurchases in the current year period, partially offset by a decrease in proceeds received from the National Properties Revolving Credit Facility.
Seasonality of Our Business
The revenues the Company earns from the Christmas Spectacular and arena license fees from MSG Sports in connection with the Knicks’ and Rangers’ use of The Garden generally means the Company earns a disproportionate share of its revenues and operating income in the second and third quarters of the Company’s fiscal year, with the first and fourth fiscal quarters being disproportionately lower.
Recently Issued Accounting Pronouncements and Critical Accounting Estimates
Recently Issued and Adopted Accounting Pronouncements
See Note 2. Summary of Significant Accounting Policies, to the financial statements included in “— Item 1. Financial Statements” of this Quarterly Report on Form 10-Q for discussion of recently issued accounting pronouncements.
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Critical Accounting Estimates
There have been no material changes to the Company’s critical accounting estimates from those set forth in 2024 Form 10-K.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
There were no material changes to the disclosures regarding market risks in connection with our pension and postretirement plans. See Item 7A, “Quantitative and Qualitative Disclosures About Market Risk,” of the 2024 Form 10-K.
Potential Interest Rate Risk Exposure
The Company, through its subsidiary, MSG National Properties, is subject to potential interest rate risk exposure related to borrowings incurred under its credit facilities. Changes in interest rates may increase interest expense payments with respect to any borrowings incurred under these credit facilities. The effect of a hypothetical 200 basis point increase in floating interest rate prevailing as of September 30, 2024 and continuing for a full year would increase the Company’s interest expense on the outstanding amounts under the credit facilities by $13,531.
Item 4. Controls and Procedures
Our management, with the participation of our Executive Chairman and Chief Executive Officer and our Executive Vice President and Chief Financial Officer evaluated the effectiveness of the design and operation of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Based on that evaluation, our Executive Chairman and Chief Executive Officer and our Executive Vice President and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of September 30, 2024.
Changes in Internal Control over Financial Reporting
There were no changes in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter ended September 30, 2024, that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
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PART II - OTHER INFORMATION
Item 1. Legal Proceedings
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, if any), management does not believe that resolution of these lawsuits will have a material adverse effect on the Company.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
On March 29, 2023, the Company’s Board of Directors authorized a share repurchase program to repurchase up to $250 million of the Company’s Class A Common Stock (the “Stock Repurchase Program”). Pursuant to the Stock Repurchase Program, shares of Class A Common Stock may be purchased from time to time in open market or private transactions, block trades or such other manner as the Company may determine in accordance with applicable insider trading and other securities laws and regulations. The timing and amount of purchases will depend on market conditions and other factors. The Company did not repurchase any shares of Class A Common Stock under the plan in the three months ended September 30, 2024. As of September 30, 2024, the Company had approximately $110 million remaining available for repurchases.
Item 6. Exhibits

(a) Index to Exhibits
EXHIBIT
NO.
DESCRIPTION
101
The following materials from the Madison Square Garden Entertainment Corp. Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, formatted in Inline Extensible Business Reporting Language (iXBRL): (i) condensed consolidated balance sheets, (ii) condensed consolidated statements of operations, (iii) condensed consolidated statements of comprehensive loss, (iv) condensed consolidated statements of cash flows, (v) condensed consolidated statements of deficit, and (vi) notes to condensed consolidated financial statements.
104
The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 formatted in Inline XBRL and contained in Exhibit 101.
_________________
† This exhibit is a management contract or a compensatory plan or arrangement.

* Furnished herewith. These exhibits shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that Section. Such exhibits shall not be deemed incorporated into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on the 8th day of November 2024.
Madison Square Garden Entertainment Corp.
By:
/s/    MICHAEL J. GRAU
Name:Michael J. Grau
Title:Executive Vice President and Chief Financial Officer

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Exhibit 31.1
Certification
I, James L. Dolan, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Madison Square Garden Entertainment Corp.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Date: November 8, 2024
/s/ JAMES L. DOLAN
James L. Dolan
Executive Chairman and Chief Executive Officer



Exhibit 31.2
Certification
I, Michael J. Grau, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Madison Square Garden Entertainment Corp.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Date: November 8, 2024
/s/ MICHAEL J. GRAU
Michael J. Grau
Executive Vice President and Chief Financial Officer



Exhibit 32.1
Certification

Pursuant to 18 U.S.C. §1350, the undersigned officer of Madison Square Garden Entertainment Corp. (the “Company”), hereby certifies, to such officer’s knowledge, that the Company’s Quarterly Report on Form 10-Q for the year ended September 30, 2024 (the “Report”) fully complies with the requirements of §13(a) or §15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


Date: November 8, 2024
/s/ JAMES L. DOLAN
James L. Dolan
Executive Chairman and Chief Executive Officer

The foregoing certification is being furnished solely pursuant to 18 U.S.C. §1350 and is not being filed as part of the Report or as a separate disclosure document.



Exhibit 32.2
Certification

Pursuant to 18 U.S.C. §1350, the undersigned officer of Madison Square Garden Entertainment Corp. (the “Company”), hereby certifies, to such officer’s knowledge, that the Company’s Quarterly Report on Form 10-Q for the Quarter ended September 30, 2024 (the “Report”) fully complies with the requirements of §13(a) or §15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


Date: November 8, 2024
/s/ MICHAEL J. GRAU
Michael J. Grau
Executive Vice President and Chief Financial Officer

The foregoing certification is being furnished solely pursuant to 18 U.S.C. §1350 and is not being filed as part of the Report or as a separate disclosure document.



v3.24.3
Cover - shares
 3 Months Ended
Sep. 30, 2024
Oct. 31, 2024
Document Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2024  
Document Transition Report false  
Entity File Number 001-41627  
Entity Registrant Name MADISON SQUARE GARDEN ENTERTAINMENT CORP.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 92-0318813  
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 Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Central Index Key 0001952073  
Current Fiscal Year End Date --06-30  
Document Fiscal Year Focus 2025  
Document Fiscal Period Focus Q1  
Amendment Flag false  
Common Class A    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   41,605,791
Common Class B    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   6,866,754
v3.24.3
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands
Sep. 30, 2024
Jun. 30, 2024
Current Assets:    
Cash, cash equivalents, and restricted cash $ 37,613 $ 33,555
Accounts receivable, net 95,525 77,259
Related party receivables, current 20,768 17,469
Prepaid expenses and other current assets 106,490 90,801
Total current assets 260,396 219,084
Non-Current Assets:    
Property and equipment, net 642,338 633,533
Right-of-use lease assets 391,058 388,658
Goodwill 69,041 69,041
Indefinite-lived intangible assets 63,801 63,801
Deferred tax assets, net 81,733 68,307
Other non-current assets 101,960 110,283
Total assets 1,610,327 1,552,707
Current Liabilities:    
Accounts payable, accrued and other current liabilities 159,261 203,750
Related party payables, current 43,671 42,506
Long-term debt, current 20,313 16,250
Operating lease liabilities, current 27,014 27,736
Deferred revenue 270,955 215,581
Total current liabilities 521,214 505,823
Non-Current Liabilities:    
Long-term debt, net of deferred financing costs 646,975 599,248
Operating lease liabilities, non-current 451,071 427,014
Other non-current liabilities 39,765 43,787
Total liabilities 1,659,025 1,575,872
Commitments and contingencies (see Note 8)
Deficit:    
Additional paid-in-capital 26,909 33,481
Treasury stock at cost (4,365 shares outstanding as of September 30, 2024 and June 30, 2024) (140,512) (140,512)
Retained earnings 96,282 115,603
Accumulated other comprehensive loss (31,906) (32,262)
Total deficit (48,698) (23,165)
Total liabilities and deficit 1,610,327 1,552,707
Common Class A    
Deficit:    
Class A and Class B Common Stock [1] 460 456
Common Class B    
Deficit:    
Class A and Class B Common Stock [2] $ 69 $ 69
[1] Class A Common Stock, $0.01 par value per share, 120,000 shares authorized; 45,958 and 45,556 shares issued as of September 30, 2024 and June 30, 2024, respectively.
[2] Class B Common Stock, $0.01 par value per share, 30,000 shares authorized; 6,867 shares issued as of September 30, 2024 and June 30, 2024.
v3.24.3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares
shares in Thousands
Sep. 30, 2024
Jun. 30, 2024
Treasury stock at cost (in shares)   4,365
Common Class A    
Common stock, par or stated value per share (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 120,000 120,000
Common stock, shares, issued (in shares) 45,958 45,556
Common Class B    
Common stock, par or stated value per share (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 30,000 30,000
Common stock, shares, issued (in shares) 6,867 6,867
v3.24.3
Condensed Consolidated Statements Of Operations (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Revenue from contract with customer $ 134,056 $ 139,766
Arena license fees and other leasing revenue 4,658 2,446
Total revenues [1] 138,714 142,212
Direct operating costs [1] (97,709) (101,677)
Selling, general and administrative expenses [1] (45,746) (48,822)
Depreciation and amortization (13,781) (13,585)
Restructuring credits (charges) 40 (11,553)
Operating loss (18,482) (33,425)
Interest income [1] 372 851
Interest expense (14,043) (14,287)
Other expense, net (769) (4,469)
Loss from operations before income taxes (32,922) (51,330)
Income tax benefit 13,601 659
Net loss $ (19,321) $ (50,671)
Loss per share attributable to MSG Entertainment’s stockholders:    
Basic (in dollars per share) $ (0.40) $ (1.00)
Diluted (in dollars per share) $ (0.40) $ (1.00)
Weighted-average number of shares of common stock:    
Basic (in shares) 48,217 50,437
Diluted (in shares) 48,217 50,437
Revenues from entertainment offerings    
Revenue from contract with customer [1] $ 115,081 $ 116,505
Food, beverage, and merchandise revenues    
Revenue from contract with customer [1] 18,975 23,261
Direct operating costs [1] (11,243) (11,118)
Arena license fees and other leasing revenue    
Arena license fees and other leasing revenue [1] 4,658 2,446
Entertainment offerings, arena license fees, and other leasing direct operating expenses    
Direct operating costs [1] $ (86,466) $ (90,559)
[1] See Note 12. Related Party Transactions for further information on related party arrangements.
v3.24.3
Condensed Consolidated Statements Of Comprehensive Loss (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Statement of Comprehensive Income [Abstract]    
Net loss $ (19,321) $ (50,671)
Other comprehensive income, before income taxes:    
Pension plans and postretirement plans 541 238
Other comprehensive income, before income taxes 541 238
Income tax expense (185) (41)
Other comprehensive income, net of income taxes 356 197
Comprehensive loss $ (18,965) $ (50,474)
v3.24.3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended
Sep. 30, 2024
Sep. 30, 2023
OPERATING ACTIVITIES:    
Net loss $ (19,321) $ (50,671)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:    
Depreciation and amortization 13,781 13,585
Share-based compensation expense 6,262 12,965
Deferred income tax benefit (13,612) (659)
Amortization of deferred financing costs 852 812
Net unrealized and realized (gains) losses on equity investments with readily determinable fair value (124) 3,901
Other non-cash adjustments 94 305
Change in assets and liabilities:    
Accounts receivable, net (18,360) (36,610)
Related party receivables and payables, net (2,134) 44,654
Prepaid expenses and other current and non-current assets (6,457) (10,391)
Accounts payable, accrued and other current, and non-current liabilities (64,648) (41,184)
Deferred revenue 55,374 63,172
Operating lease right-of-use assets and lease liabilities 20,934 1,499
Net cash (used in) provided by operating activities (27,359) 1,378
INVESTING ACTIVITIES:    
Capital expenditures (5,905) (3,334)
Proceeds from sale of investments 55 12,844
Loan to related parties 0 (65,000)
Other investing activities (840) 0
Net cash used in investing activities (6,690) (55,490)
FINANCING ACTIVITIES:    
Proceeds from revolving credit facility 55,000 73,000
Principal repayment on long-term debt (4,063) 0
Proceeds from related party loan 0 126
Payments for debt financing costs 0 (633)
Taxes paid in lieu of shares issued for equity-based compensation (12,830) (11,834)
Stock repurchases 0 (51,386)
Net cash provided by financing activities 38,107 9,273
Net increase (decrease) in cash, cash equivalents, and restricted cash 4,058 (44,839)
Cash, cash equivalents, and restricted cash, beginning of period 33,555 84,355
Cash, cash equivalents, and restricted cash, end of period 37,613 39,516
Non-cash investing and financing activities:    
Capital expenditures incurred but not yet paid or paid by landlord 15,379 1,291
Non-cash stock repurchases in lieu of payment of loan due from related party 0 65,512
Non-cash financing lease obligation $ (130) $ 0
v3.24.3
Condensed Consolidated Statements Of Deficit (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Increase (Decrease) in Stockholders' Equity [Roll Forward]    
Balance at the beginning of the period $ (23,165) $ (69,472)
Net loss (19,321) (50,671)
Other comprehensive income 356 197
Comprehensive loss (18,965) (50,474)
Comprehensive loss   (50,474)
Share-based compensation 6,262 12,965
Tax withholding associated with shares issued for share-based compensation (12,830) (11,834)
Stock repurchases, inclusive of tax   (116,386)
Balance at the end of the period (48,698) (235,201)
Common Stock    
Increase (Decrease) in Stockholders' Equity [Roll Forward]    
Balance at the beginning of the period 525 519
Tax withholding associated with shares issued for share-based compensation 4 4
Balance at the end of the period 529 523
Additional Paid- Capital    
Increase (Decrease) in Stockholders' Equity [Roll Forward]    
Balance at the beginning of the period 33,481 17,727
Share-based compensation 6,262 12,965
Tax withholding associated with shares issued for share-based compensation (12,834) (11,838)
Stock repurchases, inclusive of tax   (874)
Balance at the end of the period 26,909 17,980
Treasury Stock    
Increase (Decrease) in Stockholders' Equity [Roll Forward]    
Balance at the beginning of the period (140,512) (25,000)
Stock repurchases, inclusive of tax   (115,512)
Balance at the end of the period (140,512) (140,512)
Retained earnings (Accumulated deficit)    
Increase (Decrease) in Stockholders' Equity [Roll Forward]    
Balance at the beginning of the period 115,603 (28,697)
Net loss (19,321) (50,671)
Balance at the end of the period 96,282 (79,368)
Accumulated Other Comprehensive Loss    
Increase (Decrease) in Stockholders' Equity [Roll Forward]    
Balance at the beginning of the period (32,262) (34,021)
Other comprehensive income 356 197
Balance at the end of the period $ (31,906) $ (33,824)
v3.24.3
Description of Business and Basis of Presentation
 3 Months Ended
Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Business and Basis of Presentation Description of Business and Basis of Presentation
Description of Business
Madison Square Garden Entertainment Corp. (together with its subsidiaries, as applicable, the “Company” or “MSG Entertainment”), is a live entertainment company comprised of iconic venues and marquee entertainment content. 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 operates and reports financial information in one reportable segment.
The Company’s portfolio of venues includes: Madison Square Garden (“The Garden”), The Theater at Madison Square Garden, Radio City Music Hall, the Beacon Theatre, and The Chicago Theatre. The Company also owns and produces the original production, the Christmas Spectacular Starring the Radio City Rockettes (the “Christmas Spectacular”). The Company also has an entertainment and sports bookings business, which showcases a broad array of compelling concerts, family shows and special events, as well as a diverse mix of sporting events, for millions of guests annually.
MSG Entertainment Distribution
On April 20, 2023, Sphere Entertainment Co. (together with its subsidiaries, as applicable, “Sphere Entertainment”) distributed approximately 67% of the outstanding common stock of the Company to its stockholders (the “Distribution”), with Sphere Entertainment retaining approximately 33% of the outstanding common stock of the Company in the form of Class A common stock, $0.01 par value per share (“Class A Common Stock”) immediately following the Distribution. As a result, the Company became an independent publicly traded company on April 21, 2023. Following the completion of the secondary offering by Sphere Entertainment of the Company’s Class A Common Stock on September 22, 2023, Sphere Entertainment no longer owns any of the Company’s outstanding common stock. See Note 1. Description of Business and Basis of Presentation to the Company’s audited consolidated and combined financial statements and notes thereto as of June 30, 2024 and 2023 and for the three years ended June 30, 2024, 2023 and 2022 (the “Audited Consolidated and Combined Annual Financial Statements”) included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2024 filed with the Securities and Exchange Commission (the “SEC”) on August 16, 2024 (the “2024 Form 10-K”) for more information regarding the Distribution.
Basis of Presentation
The Company reports on a fiscal year basis ending on June 30th (“Fiscal Year”). In these unaudited condensed consolidated financial statements, the years ending and ended on June 30, 2026, June 30, 2025 and 2024, respectively, are referred to as “Fiscal Year 2026,” “Fiscal Year 2025” and “Fiscal Year 2024,” respectively.
The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and Article 10 of Regulation S-X of the SEC, and should be read in conjunction with the Company’s Audited Consolidated and Combined Annual Financial Statements.
In the opinion of the Company, the accompanying financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of September 30, 2024 and its results of operations and cash flows for the three months ended September 30, 2024 and 2023. The condensed consolidated balance sheet as of June 30, 2024 was derived from the Audited Consolidated and Combined Annual Financial Statements but does not contain all of the footnote disclosures from the Audited Consolidated and Combined Annual Financial Statements.
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. As a result of the production of the Christmas Spectacular, arena license fees in connection with the use of The Garden by the New York Knicks (the “Knicks”) of the National Basketball Association and the New York Rangers (the “Rangers”) of the National Hockey League, the Company generally earns a disproportionate share of its annual revenues in the second and third quarters of its fiscal year.
Reclassifications
For purposes of comparability, certain prior period amounts have been reclassified to conform to the current year presentation in accordance with GAAP. The accompanying unaudited condensed consolidated financial information for the three months ended September 30, 2023 has been revised to change the presentation of our revenue and direct operating expenses from an aggregated to a disaggregated basis.
v3.24.3
Summary of Significant Accounting Policies
 3 Months Ended
Sep. 30, 2024
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
A. Principles of Consolidation
All significant intercompany accounts and balances within the Company’s consolidated businesses have been eliminated.
B. Use of Estimates
The preparation of the accompanying condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Such estimates include the provision for credit losses, goodwill, intangible assets, other long-lived assets, deferred tax assets, pension and other postretirement benefit obligations and the related net periodic benefit cost, and other liabilities. In addition, estimates are used in revenue recognition, depreciation and amortization, litigation matters and other matters. Management believes its use of estimates in the financial statements to be reasonable.
Management evaluates its estimates on an ongoing basis using historical experience and other factors, including the general economic environment and actions it may take in the future. The Company adjusts such estimates when facts and circumstances dictate. However, these estimates may involve significant uncertainties and judgments and cannot be determined with precision. In addition, these estimates are based on management’s best judgment at a point in time and, as such, these estimates may ultimately differ from actual results. Changes in estimates resulting from weakness in the economic environment or other factors beyond the Company’s control could be material and would be reflected in the Company’s condensed consolidated financial statements in future periods.
C. Revenue Recognition and Direct Operating Expenses
The following reflects an update to the Company’s comprehensive revenue recognition and direct operating expense accounting policies to align with the disaggregation of revenue and direct operating expenses as presented on the condensed consolidated statements of operations.
The Company generates revenue from the provision of services and sale of tangible products, as well as leasing transactions. Revenues are presented under these three categories in the condensed consolidated statements of operations, as described below.
Service revenue, presented as “Revenues from entertainment offerings” primarily includes:
•Ticket sales and other ticket-related revenue
•Venue license fees for events held at the Company’s venues that the Company does not produce or promote/co-promote
•Sponsorship and signage
•Suite licenses and single night suite rentals
•Advertising commissions and related service fees
•Commissions related to the sale of merchandise for which the Company is not the principal in the underlying transaction
Direct operating expenses related to the provision of services and leasing, presented as “Entertainment offerings, arena license fees, and other leasing direct operating expenses”, primarily include:(a)
•Event production costs including direct personnel expenses
•Venue operations and infrastructure costs (a)
•Venue rental costs for venues not owned by the Company
•Sponsorship and signage fulfillment costs
•Contractual revenue sharing expenses related to suite licenses and certain internal signage
•Event-related marketing and advertising costs
Product revenue, presented as “Food, beverage, and merchandise revenues”, includes:
•Sales of food and beverage during events held at the Company’s venues
•Sales of the Company’s merchandise at the Company’s venues and via traditional retail channels
Direct operating expenses related to the sale of products, presented as “Food, beverage, and merchandise direct operating expenses” include:
•Costs of goods sold including direct personnel expenses
•Contractual revenue sharing expenses related to food and beverage sold at events held by Madison Square Garden Sports Corp. (together with its subsidiaries, as applicable, “MSG Sports”) at The Garden
Lease revenue, presented as “Arena license fees and other leasing revenue”, includes:
•Rental fees related to the arena license agreements that require the Knicks and the Rangers to play their home games at The Garden (the “Arena License Agreements”) with MSG Sports
•Sublease income
_________________
(a)    Venue operations and infrastructure costs are not specifically allocated to each revenue category, but are instead attributed in their entirety to service revenue, which is the Company’s principal revenue category. Leasing direct operating expenses materially consist of venue operations and infrastructure costs. As a result, the Company combines service and leasing direct operating expenses within “Entertainment offerings, arena license fees, and other leasing direct operating expenses” for presentation purposes.
The Company recognizes revenue when, or as, performance obligations under the terms of a contract are satisfied, which generally occurs when, or as, control of promised goods or services is transferred to customers. Revenue is measured as the amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services (“transaction price”). To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing the most likely amount to which the Company expects to be entitled. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Estimates of variable consideration and the determination of whether to include such estimated amounts in the transaction price are based largely on an assessment of the Company’s anticipated performance and all information that is reasonably available. The Company accounts for taxes collected from customers and remitted to governmental authorities on a net basis and excludes these amounts from revenues.
In addition, the Company defers certain costs to fulfill the Company’s contracts with customers to the extent such costs relate directly to the contracts, are expected to generate resources that will be used to satisfy the Company’s performance obligations under the contracts, and are expected to be recovered through revenue generated under the contracts. Contract fulfillment costs are expensed as the Company satisfies the related performance obligations.
Arrangements with Multiple Performance Obligations
The Company enters into arrangements with multiple performance obligations, such as multi-year sponsorship agreements, which may derive revenues for the Company, as well as Sphere Entertainment and MSG Sports within a single arrangement. The Company also derives revenue from similar types of arrangements which are entered into by Sphere Entertainment and MSG Sports. Payment terms for such arrangements can vary by contract, but payments are generally due in installments throughout the contractual term. The performance obligations included in each sponsorship agreement vary and may include advertising and other benefits such as, but not limited to, signage at The Garden and the Company’s other venues, digital advertising, event or property-specific advertising, as well as non-advertising benefits such as suite licenses and event tickets. To the extent the Company’s multi-year arrangements provide for performance obligations that are consistent over the multi-year contractual term, such performance obligations generally meet the definition of a series as provided for under the accounting guidance. If performance obligations are concluded to meet the definition of a series, the contractual fees for all years during the contract term are aggregated and the related revenue is recognized proportionately as the underlying performance obligations are satisfied.
The timing of revenue recognition for each performance obligation is dependent upon the facts and circumstances surrounding the Company’s satisfaction of its respective performance obligation. The Company allocates the transaction price for such arrangements to each performance obligation within the arrangement based on the estimated relative standalone selling price of the performance obligation. The Company’s process for determining its estimated standalone selling prices involves management’s judgment and considers multiple factors including company specific and market specific factors that may vary depending upon the unique facts and circumstances related to each performance obligation. Key factors considered by the Company in developing an estimated standalone selling price for its performance obligations include, but are not limited to, prices charged for similar performance obligations, the Company’s ongoing pricing strategy and policies, and consideration of pricing of similar performance obligations sold in other arrangements with multiple performance obligations.
The Company may incur costs such as commissions to obtain its multi-year sponsorship agreements. The Company assesses such costs for capitalization on a contract by contract basis. To the extent costs are capitalized, the Company estimates the useful life of the related contract asset, which may be the underlying contract term or the estimated customer life depending on the facts and circumstances surrounding the contract. The contract asset is amortized over the estimated useful life.
Principal versus Agent Revenue Recognition
The Company reports revenue on a gross or net basis based on management’s assessment of whether the Company acts as a principal or agent in the transaction. The determination of whether the Company acts as a principal or an agent in a transaction is based on an evaluation of whether the Company controls the good or service before transfer to the customer. When the Company concludes that it controls the good or service before transfer to the customer, the Company is considered a principal in the transaction and records revenue on a gross basis. When the Company concludes that it does not control the good or service before transfer to the customer but arranges for another entity to provide the good or service, the Company acts as an agent and records revenue on a net basis in the amount it earns for its agency service.
Contract Balances
Amounts collected in advance of the Company’s satisfaction of its contractual performance obligations are recorded as a contract liability within deferred revenue and are recognized as the Company satisfies the related performance obligations. Amounts collected in advance of events for which the Company is not the promoter or co-promoter do not represent contract liabilities and are recorded within accrued and other current liabilities on the accompanying consolidated balance sheets. Amounts recognized as revenue for which the Company has a right to consideration for goods or services transferred to customers and for which the Company does not have an unconditional right to bill as of the reporting date are recorded as contract assets. Contract assets are transferred to accounts receivable once the Company’s right to consideration becomes unconditional.
Production Costs for the Company’s Original Productions
The Company defers certain costs of productions such as creative design, scenery, wardrobes, rehearsal and other related costs for the Company’s proprietary shows, reported under Prepaid expenses and other current assets and Other non-current assets. Deferred production costs are amortized on a straight-line basis over the course of a production’s performance period using the expected life of a show’s assets and are recorded as a component of Entertainment offerings, arena license fees, and other leasing direct operating expenses on the Company’s condensed consolidated statement of operations. Deferred production costs are subject to recoverability assessments whenever there is an indication of potential impairment.
Revenue Sharing Expenses
Revenue sharing expenses are determined based on contractual agreements between the Company and MSG Sports, primarily related to suite licenses, certain internal signage and in-venue food and beverage sales and are recorded as a component of Entertainment offerings, arena license fees, and other leasing direct operating expenses on the Company’s condensed consolidated statement of operations.
D. Recently Issued and Adopted Accounting Pronouncements
Recently Issued Accounting Pronouncements
In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Improvement to Reportable Segment Disclosures. This ASU aims to improve segment disclosures through enhanced disclosures about significant segment expenses. The standard requires disclosure of significant expense categories and amounts for such expenses, including those segment expenses that are regularly provided to the chief operating decision maker, easily computable from information that is regularly provided, or significant expenses that are expressed in a form other than actual amounts. This standard will be effective for the Company as of and for the Fiscal Year ending June 30, 2025 and is required to be applied retrospectively to all prior periods presented in the financial statements. The Company continues to evaluate the impact of the additional disclosure requirements on the Company’s consolidated financial statements.
In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, a final standard on improvements to income tax disclosures which applies to all entities subject to income taxes. The standard requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The standard is intended to benefit investors by providing more detailed income tax disclosures that would be helpful to understand an entity’s exposure to potential changes in jurisdictional tax legislation and the ensuing risks and opportunities, assess income tax information that affects cash flow forecasts and capital allocation decisions, and identify potential opportunities to increase future cash flows. This standard will be effective for the Company in Fiscal Year 2026 and should be applied prospectively. The Company is currently evaluating the impact of the additional disclosure requirements on the Company’s consolidated financial statements.
In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses, requiring additional disclosures about specified categories of expenses included in certain expense captions presented on the face of the income statement. This standard will be effective for the Company as of and for the Fiscal Year ending June 30, 2028, and may be applied either prospectively to financial statements issued for reporting periods after the effective date of this ASU or retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact of adopting this guidance on the Company’s consolidated financial statements.
v3.24.3
Revenue Recognition
 3 Months Ended
Sep. 30, 2024
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
Contracts with Customers
All revenue recognized in the condensed consolidated statements of operations is considered to be revenue from contracts with customers in accordance with FASB Accounting Standards Codification (“ASC”) Topic 606, Revenue From Contracts with Customers, except for revenues from the Arena License Agreements, leases and subleases that are accounted for in accordance with
ASC Topic 842, Leases.
Disaggregation of Revenue
The following table disaggregates the Company’s revenue by major source based upon the timing of satisfaction of the Company’s performance obligations to the customer for the three months ended September 30, 2024 and 2023:
Three Months Ended
September 30,
20242023
Event-related offerings (a)
$89,182 $94,990 
Sponsorship, signage, and suite licenses (b)
38,938 39,815 
Other (c)
5,936 4,961 
Total revenues from contracts with customers
134,056 139,766 
Arena license fees and other leasing revenue 4,658 2,446 
Total revenues
$138,714 $142,212 
_________________
(a)    Event-related offerings revenues are recognized at a point in time.
(b)    See Note 2. Summary of Significant Accounting Policies and Note 4. Revenue Recognition, included in the Company’s Audited Consolidated and Combined Annual Financial Statements 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 and (ii) venue tours.
In addition to the disaggregation of the Company’s revenue as disclosed above, the following table disaggregates the Company’s revenues by revenue category, for the three months ended September 30, 2024 and 2023.
Three Months Ended
September 30,
20242023
Ticketing and venue license fee revenues (a)
$70,206 $71,729 
Sponsorship and signage, suite, and advertising commission revenues
42,890 43,336 
Food, beverage, and merchandise revenues
18,975 23,261 
Other1,985 1,440 
Total revenues from contracts with customers
134,056 139,766 
Arena license fees and other leasing revenue 4,658 2,446 
Total revenues
$138,714 $142,212 
_________________
(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.
Contract Balances
The following table provides information about the opening and closing contract balances from the Company’s contracts with customers as of September 30, 2024 and June 30, 2024:
As of
September 30,
2024		June 30,
2024
Receivables from contracts with customers, net (a)
$100,967 $74,113 
Contract assets, current (b)
$7,255 $7,844 
Deferred revenue, including non-current portion (c)
$270,955 $215,581 
    ________________
(a)    Receivables from contracts with customers, net, which are reported in Accounts receivable, net and Related party receivables, current in the Company’s condensed consolidated balance sheets, represent the Company’s unconditional rights to consideration under its contracts with customers. As of September 30, 2024 and June 30, 2024, the Company’s receivables from contracts with customers above included $5,114 and $2,432, respectively, related to various related parties. See Note 12. Related Party Transactions for further details on related party arrangements.
(b)    Contract assets, current, which are reported as Prepaid expenses and other current assets in the Company’s condensed 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 the 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 three months ended September 30, 2024 relating to the deferred revenue balance as of June 30, 2024 was $85,476.
Transaction Price Allocated to the Remaining Performance Obligations
As of September 30, 2024, the Company’s remaining performance obligations under contracts were approximately $601,000, of which 57% is expected to be recognized over the next two years and an additional 43% of the balance is expected to be recognized thereafter. This primarily relates to performance obligations under sponsorship and suite license agreements that have original expected durations longer than one year and for which the consideration is not variable. 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.
v3.24.3
Restructuring Credits (Charges)
 3 Months Ended
Sep. 30, 2024
Restructuring and Related Activities [Abstract]  
Restructuring Credits (Charges) Restructuring Credits (Charges)
During the three months ended September 30, 2024, the Company recorded restructuring credits of $40 related to adjustments for previously accrued termination benefits for certain corporate executives and employees. During the three months ended September 30, 2023, the Company recorded restructuring charges of $11,553, inclusive of $6,788 of share-based compensation expenses, shown in accounts payable, accrued and other current liabilities and additional paid-in-capital on the condensed consolidated balance sheet. Changes to the Company’s restructuring liability through September 30, 2024 were as follows:
Restructuring Liability
June 30, 2024
$7,140 
Restructuring credits
(40)
Payments
(3,640)
September 30, 2024$3,460 
v3.24.3
Investments
 3 Months Ended
Sep. 30, 2024
Investments in and Advances to Affiliates [Abstract]  
Investments Investments
As of September 30, 2024, the Company held an investment in Townsquare Media, Inc. (“Townsquare”). The Company also held an investment in DraftKings Inc. (“DraftKings”), which was sold during the first quarter of Fiscal Year 2024:
•    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.”
As of September 30, 2024, the Company also held other equity investments held in trust under the Company’s Executive Deferred Compensation Plan. Refer to Note 10. Pension Plans and Other Postretirement Benefit Plans for further details regarding the plan
The fair value of the Company’s investments in Class A common stock of Townsquare and Class A common stock of DraftKings was 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 carrying value of the Company’s investments, which is reported under Other non-current assets in the accompanying condensed consolidated balance sheets as of September 30, 2024 and June 30, 2024, is as follows:
As of
September 30,
2024		June 30,
2024
Equity investments with readily determinable fair values:
Townsquare Class A common stock$1,287 $1,438 
Other equity investments with readily determinable fair values held in trust under the Company’s Executive Deferred Compensation Plan5,047 4,226 
Equity method investments and equity investments without readily determinable fair values(a)
708 656 
Total investments$7,042 $6,320 
_______________
(a)    Inclusive of the Company’s investment in Oak View Group’s Crown Properties Collection, LLC ("CPC").
The following table summarizes the realized and unrealized gain (loss) on equity investments with readily determinable fair value, which is reported in Other income (expense), net for the three months ended September 30, 2024 and 2023:
Three Months Ended
September 30,
20242023
Unrealized loss — Townsquare
$(101)$(5,449)
Unrealized gain (loss) — Executive Deferred Compensation Plan220 (145)
Realized gain from shares sold — DraftKings
— 1,548 
Realized gain from shares sold — Townsquare
5 — 
Total realized and unrealized gain (loss)
$124 $(4,046)
Supplemental information on realized gain:
Shares of common stock sold — DraftKings— 425 
Cash proceeds from common stock sold — DraftKings$— $12,844 
Shares of common stock sold — Townsquare
5 — 
Cash proceeds from common stock sold — Townsquare
$55 $— 
v3.24.3
Property and Equipment, Net
 3 Months Ended
Sep. 30, 2024
Property, Plant and Equipment [Abstract]  
Property and Equipment, Net Property and Equipment, Net
As of September 30, 2024 and June 30, 2024, property and equipment, net consisted of the following:
As of
September 30,
2024		June 30,
2024
Land$62,768 $62,768 
Buildings1,012,370 1,011,308 
Equipment, furniture, and fixtures
350,351 348,075 
Leasehold improvements
133,267 133,267 
Construction in progress
29,442 10,193 
Total Property and equipment$1,588,198 $1,565,611 
Less: accumulated depreciation and amortization
(945,860)(932,078)
Property and equipment, net$642,338 $633,533 
The Company recorded depreciation expense on property and equipment of $13,781 and $13,585 for the three months ended September 30, 2024 and 2023, respectively, which is recognized in Depreciation and amortization in the condensed consolidated statements of operations.
v3.24.3
Goodwill and Intangible Assets
 3 Months Ended
Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
As of September 30, 2024 and June 30, 2024, the carrying amount of goodwill was $69,041.
The Company’s indefinite-lived intangible assets as of September 30, 2024 and June 30, 2024 were as follows:
As of
September 30,
2024		June 30,
2024
Trademarks$61,881 $61,881 
Photographic related rights1,920 1,920 
Total indefinite-lived intangible assets$63,801 $63,801 
During the first quarter of Fiscal Year 2025, the Company performed its annual qualitative impairment test of goodwill and indefinite-lived intangible assets and determined that there were no impairments of goodwill and indefinite-lived intangibles identified as of the impairment test date.
v3.24.3
Commitments and Contingencies
 3 Months Ended
Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Commitments
See Note 11. Commitments and Contingencies, included in the Company’s Audited Consolidated and Combined Annual Financial Statements, for details on the Company’s commitments. The Company’s commitments as of June 30, 2024 included a total of $323,178 (primarily related to contractual obligations).
During the three months ended September 30, 2024, the Company did not have any material changes in its non-cancelable contractual obligations (other than activities in the ordinary course of business). See Note 9. Credit Facilities for details of the principal repayments required under the Company’s credit facilities.
Delayed Draw Term Loan Facility
On April 20, 2023, a subsidiary of the Company, MSG Entertainment Holdings, LLC (“MSG Entertainment Holdings”), entered into a delayed draw term loan facility (the “DDTL Facility”) with Sphere Entertainment. Pursuant to the DDTL Facility, MSG Entertainment Holdings committed to lend up to $65,000 in delayed draw term loans to Sphere Entertainment on an unsecured basis until October 20, 2024. See Note 11. Commitments and Contingencies to the Company’s Audited Consolidated and Combined Annual Financial Statements for more information regarding the DDTL Facility. On July 14, 2023, Sphere Entertainment drew down the full amount of $65,000 under the DDTL Facility. On August 9, 2023, Sphere Entertainment repaid the full principal amount of the DDTL Facility and accrued interest and commitment fees by delivering 1,923 shares of the Company’s Class A Common Stock held by Sphere Entertainment, as permitted as payment under the DDTL Facility. Such shares have been classified by the Company pursuant to the Stock Repurchase Program (as defined and further explained in Note 13. Additional Financial Information) as treasury shares and are no longer outstanding on the date of repayment.
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, if any), management does not believe that resolution of these lawsuits will have a material adverse effect on the Company.
v3.24.3
Credit Facilities
 3 Months Ended
Sep. 30, 2024
Debt Disclosure [Abstract]  
Credit Facilities Credit Facilities
See Note 12. Credit Facilities, included in the Company’s Audited Consolidated and Combined Annual Financial Statements for more information regarding the Company’s credit facilities. The following table summarizes the presentation of the outstanding balances under the Company’s credit agreements as of September 30, 2024 and June 30, 2024:

As of
September 30,
2024		June 30,
2024
Current Portion
National Properties Term Loan Facility
$20,313 $16,250 
Current portion of long-term debt
$20,313 $16,250 
As of
September 30, 2024June 30, 2024
PrincipalUnamortized Deferred Financing CostsNetPrincipalUnamortized Deferred Financing CostsNet
Non-current Portion
National Properties Term Loan Facility
$601,250 $(8,814)$592,436 $609,375 $(9,624)$599,751 
National Properties Revolving Credit Facility
55,000 (461)54,539 — (503)(503)
Long-term debt, net of deferred financing costs
$656,250 $(9,275)$646,975 $609,375 $(10,127)$599,248 
National Properties Facilities
General. MSG National Properties, LLC (“MSG National Properties”), MSG Entertainment Holdings and certain subsidiaries of MSG National Properties are party to a credit agreement dated June 30, 2022 (as amended, the “National Properties Credit Agreement”) with JP Morgan Chase Bank, N.A., as administrative agent and the lenders and L/C issuers party thereto, providing for a five-year, $650,000 senior secured term loan facility (the “National Properties Term Loan Facility”) and a five-year, $150,000 revolving credit facility (the “National Properties Revolving Credit Facility” and, together with the National Properties Term Loan Facility, the “National Properties Facilities”). Up to $25,000 of the National Properties Revolving Credit Facility is available for the issuance of letters of credit. As of September 30, 2024, outstanding letters of credit were $18,826 and the remaining balance available under the National Properties Revolving Credit Facility was $76,174.
Interest Rates. Borrowings under the current National Properties Facilities bear interest at a floating rate, which at the option of MSG National Properties may be either (a) a base rate plus an applicable margin ranging from 1.50% to 2.50% per annum, determined based on the total leverage ratio of MSG National Properties and its restricted subsidiaries, or (b) adjusted Term SOFR (i.e., Term SOFR plus 0.10%) plus an applicable margin ranging from 2.50% to 3.50% per annum, determined based on the total leverage ratio of MSG National Properties and its restricted subsidiaries. The National Properties Credit Agreement requires MSG National Properties to pay a commitment fee ranging from 0.30% to 0.50% in respect of the daily unused commitments under the National Properties Revolving Credit Facility. MSG National Properties 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 National Properties Credit Agreement. The interest rate on the National Properties Facilities as of September 30, 2024 was 7.45%.
Principal Repayments. Subject to customary notice and minimum amount conditions, the Company may voluntarily repay outstanding loans under the National Properties Facilities or terminate commitments under the National Properties Revolving Credit Facility, at any time, in whole or in part, subject only to customary breakage costs in the case of prepayment of Term SOFR loans. The National Properties Facilities will mature on June 30, 2027. The principal obligations under the National Properties Term Loan Facility are to be repaid in quarterly installments beginning with the fiscal quarter ended March 31, 2023, in an aggregate amount equal to 2.50% per annum (0.625% per quarter), stepping up to 5.0% per annum (1.25% per quarter) in the fiscal quarter ending September 30, 2025, with the balance due at the maturity of the facility. The principal obligations under the National Properties Revolving Credit Facility are due at the maturity of the facility. Under certain circumstances, MSG National Properties is required to make mandatory prepayments on loans outstanding, including 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), subject to certain exceptions.
Covenants. The National Properties Credit Agreement includes financial covenants requiring MSG National Properties and its restricted subsidiaries to maintain a specified minimum liquidity level, a specified minimum debt service coverage ratio and specified maximum total leverage ratio. The minimum liquidity level is set at $50,000, and is tested based on the level of average daily liquidity, consisting of cash and cash equivalents and available revolving commitments, over the last month of each quarter over the life of the National Properties Facilities. The debt service coverage ratio covenant began testing in the fiscal quarter ended December 31, 2022, and was set at a ratio of 2:1 before stepping up to 2.5:1 in the fiscal quarter ended September 30, 2024. The leverage ratio covenant began testing in the fiscal quarter ended June 30, 2023. It is tested based on the ratio of MSG National Properties and its restricted subsidiaries’ consolidated total indebtedness to adjusted operating income, with an initial maximum ratio of 6:1, which stepped down to 5.5:1 in the fiscal quarter ended June 30, 2024 and steps down to 4.5:1 in the fiscal quarter ending June 30, 2026. As of September 30, 2024, MSG National Properties and its restricted subsidiaries were in compliance with the covenants of the National Properties Credit Agreement.
In addition to the financial covenants discussed above, the National Properties Credit Agreement and the related security agreement contain certain customary representations and warranties, affirmative and negative covenants and events of default. The National Properties Credit Agreement 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 Credit Agreement, 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.
Guarantors and Collateral. All obligations under the National Properties Facilities are guaranteed by MSG Entertainment Holdings and MSG National Properties’ existing and future direct and indirect domestic subsidiaries, other than the subsidiaries that own The Garden and certain other excluded subsidiaries (the “Subsidiary Guarantors”).
All obligations under the National Properties Facilities, 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 Theatre.
Interest payments and loan principal repayments made by the Company under the National Properties Credit Agreement were as follows:
Interest PaymentsPrincipal Repayments
Three Months EndedThree Months Ended
September 30,September 30,
2024202320242023
National Properties Facilities
$13,277 $13,193 $4,063 $— 
The carrying value and fair value of the Company’s debt reported in the accompanying condensed consolidated balance sheets were as follows:
As of
September 30, 2024June 30, 2024
Carrying
Value (a)
Fair
Value
Carrying
Value (a)
Fair
Value
National Properties Facilities
$676,563 $672,630 $625,625 $622,497 
________________
(a)    The total carrying value of the Company’s debt as of September 30, 2024 and June 30, 2024 is equal to the current and non-current principal payments for the Company’s credit agreements excluding unamortized deferred financing costs of $9,275 and $10,127, respectively.
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 instruments for which the inputs are readily observable.
v3.24.3
Pension Plans and Other Postretirement Benefit Plans
 3 Months Ended
Sep. 30, 2024
Retirement Benefits [Abstract]  
Pension Plans and Other Postretirement Benefit Plans Pension Plans and Other Postretirement Benefit Plans
See Note 13. Pension Plans and Other Postretirement Benefit Plans, included in the Company’s Audited Consolidated and Combined Annual Financial Statements for more information regarding the Pension Plans, Postretirement Plan, the Madison Square Garden 401(k) Savings Plans, The Madison Square Garden 401(k) Savings Plan (the “401(k) Plan”), the MSG Entertainment Holdings, LLC Excess Savings Plan (together with the 401(k) Plan, the “Savings Plans”), together with the associated excess savings plan, and the Madison Square Garden 401(k) Union Plan (the “Union Savings Plan”).
Defined Benefit Pension Plans and Other Postretirement Benefit Plans
The following table presents components of net periodic benefit cost for the Pension Plans and Postretirement Plan included in the accompanying condensed consolidated statements of operations for the three months ended September 30, 2024 and 2023. 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 Other expense, net.
Pension PlansPostretirement Plan
Three Months EndedThree Months Ended
September 30,September 30,
2024202320242023
Service cost$18 $17 $5 $6 
Interest cost1,668 1,469 30 24 
Expected return on plan assets(1,292)(1,091)— — 
Recognized actuarial loss446 238 6 — 
Net periodic cost
$840 $633 $41 $30 
Contributions for Qualified Defined Benefit Pension Plans
During the three months ended September 30, 2024, the Company contributed $3,300 to a non-contributory, qualified cash balance retirement plan covering the Company’s non-union employees.
Defined Contribution Plans
For the three months ended September 30, 2024 and 2023, expenses related to the Savings Plans and Union Savings Plan included in the accompanying condensed consolidated statements of operations are as follows:
Three Months Ended
September 30,
20242023
Savings Plans$2,024 $2,034 
Union Savings Plan$82 $50 
Executive Deferred Compensation
See Note 13. Pension Plans and Other Postretirement Benefit Plans, included in the Company’s Audited Consolidated and Combined Annual Financial Statements, for more information regarding the Company’s Executive Deferred Compensation Plan (the “Deferred Compensation Plan”). The Company recorded compensation expense of $220 for the three months ended September 30, 2024 and a compensation cost credit of $145 for the three months ended September 30, 2023, within Selling, general, and administrative expenses to reflect the remeasurement of the Deferred Compensation Plan liability. In addition, the Company recorded a gain of $220 for the three months ended September 30, 2024 and a loss of $145 for the three months ended September 30, 2023, within Other expense, net to reflect remeasurement of the fair value of assets under the Deferred Compensation Plan.
The following table summarizes amounts recognized related to the Deferred Compensation Plan in the condensed consolidated balance sheets:
As of
September 30,
2024		June 30,
2024
Deferred Compensation Plan assets (included in Other non-current assets)
$5,047 $4,226 
Deferred Compensation Plan liabilities (included in Other non-current liabilities)
$(5,063)$(4,226)
v3.24.3
Share-based Compensation
 3 Months Ended
Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Share-based Compensation Share-based Compensation
The Company has two share-based compensation plans: the 2023 Employee Stock Plan and the 2023 Stock Plan for Non-Employee Directors. See Note 14. Share Based Compensation, included in the Company’s Audited Consolidated and Combined Annual Financial Statements, for more information on these plans.
Share-based compensation expense for the Company’s restricted stock units (“RSUs”) and performance stock units (“PSUs”) are recognized in the condensed consolidated statements of operations as a component of direct operating expenses or selling, general, and administrative expenses. The following table summarizes the Company’s share-based compensation expense:
Three Months Ended
September 30,
20242023
Share-based compensation expense (a)
$6,262 $6,177 
Fair value of awards vested (b)
$29,022 $26,400 
________________
(a)    The expense shown excludes $6,788 for the three months ended September 30, 2023, which was reclassified to Restructuring charges in the condensed consolidated statements of operations as detailed in Note 4. Restructuring Credits (Charges).
(b)     To fulfill required statutory tax withholding obligations for the applicable income and other employment taxes, RSUs and PSUs with an aggregate value of $12,808 and $11,817 were retained by the Company during the three months ended September 30, 2024 and 2023, respectively.
For the three months ended September 30, 2024 and 2023 all RSUs and stock options were excluded from the anti-dilutive calculation because the Company reported a net loss for the period and, therefore, their impact on reported loss per share would have been antidilutive.
As of September 30, 2024, there was $55,333 of unrecognized compensation cost related to unvested RSUs and PSUs held by the Company’s direct employees. The cost is expected to be recognized over a weighted-average period of approximately 2.5 years.
Award Activity
RSUs
During the three months ended September 30, 2024 and 2023, 433 and 562 RSUs were granted and 416 and 476 RSUs vested,
respectively.
PSUs
During the three months ended September 30, 2024 and 2023, 386 and 506 PSUs were granted and 305 and 241 PSUs vested, respectively.
v3.24.3
Related Party Transactions
 3 Months Ended
Sep. 30, 2024
Related Party Transactions [Abstract]  
Related Party Transactions Related Party Transactions
As of September 30, 2024, members of the Dolan family, for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, and members of the Dolan family including trusts for the benefit of members of the Dolan family (collectively, the “Dolan Family Group”) collectively beneficially owned 100% of the Company’s outstanding Class B Common Stock, $0.01 par value per share (“Class B Common Stock”) and approximately 4.1% of the Company’s outstanding Class A Common Stock (inclusive of options exercisable within 60 days of September 30, 2024). Such shares of Class A Common Stock and Class B Common Stock, collectively, represent approximately 63.6% of the aggregate voting power of the Company’s outstanding common stock. Members of the Dolan Family Group are also the controlling stockholders of Sphere Entertainment, MSG Sports, and AMC Networks Inc.
See Note 17. Related Party Transactions, included in the Company’s Audited Consolidated and Combined Annual Financial Statements for a description of the Company’s current related party arrangements. There have been no material changes in such related party arrangements except as described below.
In the third quarter of Fiscal Year 2024, the Company entered into a commercial agreement with CPC, under which CPC provides sponsorship sales services. The Company recorded commission expense of $494 and $0 for the three months ended September 30, 2024 and 2023, respectively. As of September 30, 2024 and June 30, 2024, prepaid expenses associated with this arrangement were $6,998 and $5,993, respectively, and are reported under Prepaid expenses and other current assets, and Other non-current assets in the accompanying condensed consolidated balance sheets. The Company provided a notice of termination with respect to the commercial agreement on September 20, 2024 and is currently negotiating the related wind down.
From time to time the Company enters into arrangements with 605, LLC (“605”). James L. Dolan, the Company’s Executive Chairman, Chief Executive Officer and a director, and his spouse, Kristin A. Dolan, owned 605 until September 13, 2023. Kristin A. Dolan is also the founder and was the Chief Executive Officer of 605. 605 provides audience measurement and data analytics services to the Company and its subsidiaries in the ordinary course of business. In August 2022, a subsidiary of Sphere Entertainment entered into a three-year agreement with 605, valued at $750, covering several customer analysis projects per year in connection with events held at our venues, which was assigned to the Company in connection with the Distribution. Pursuant to this arrangement, the Company recognized $34 of expense for the three months ended September 30, 2023. On September 13, 2023, 605 was sold to iSpot.tv, and James L. Dolan and Kristin A. Dolan now hold a minority interest in iSpot.tv. As a result, as of September 13, 2023, 605 is no longer considered to be a related party.
Revenues and Operating Expenses
The following table summarizes the composition and amounts of the transactions with the Company’s affiliates. The significant components of these amounts are discussed below. These amounts are reflected in revenues and operating expenses in the accompanying condensed consolidated statements of operations for the three months ended September 30, 2024 and 2023:
Three Months
September 30,
20242023
Revenues$7,883 $5,159 
Operating expenses (credits):
Revenue sharing expenses$1,150 $1,152 
Reimbursement under Arena License Arrangements(73)(429)
Cost reimbursement from MSG Sports(8,387)(9,861)
Cost reimbursement from Sphere Entertainment
(22,993)(30,336)
Other operating (credits) expenses, net
(1,117)553 
Total operating expenses (credits), net (a)
$(31,420)$(38,921)
_________________
(a)    Of the total operating expenses (credits), net, $1,294 and $1,310 for the three months ended September 30, 2024 and 2023, respectively, are included in direct operating expenses in the accompanying condensed consolidated statements of operations, and $(32,714) and $(40,231) for the three months ended September 30,
2024 and 2023, respectively, are included in selling, general, and administrative expenses.
Revenues
The Company recorded $1,324 of revenues under the Arena License Agreements for the three months ended September 30, 2024. In addition to the Arena License Agreements, during the three months ended September 30, 2024, the Company’s revenues from related parties primarily reflected sponsorship sales and service representation agreements of $2,751, and merchandise sharing revenues of $247, with MSG Sports. The Company also earned sublease revenue from related parties of $3,561 during the three months ended September 30, 2024.
The Company recorded $1,324 of revenues under the Arena License Agreements for the three months ended September 30, 2023. In addition, during the three months ended September 30, 2023, the Company recorded revenues under sponsorship sales and service representation agreements of $2,763, and merchandise sharing revenues of $196, with MSG Sports. The Company also earned sublease revenue from related parties of $759 during the three months ended September 30, 2023.
v3.24.3
Additional Financial Information
 3 Months Ended
Sep. 30, 2024
Additional Financial Information [Abstract]  
Additional Financial Information Additional Financial Information
The following table provides a summary of the amounts recorded as cash, cash equivalents, and restricted cash:
As of
September 30,
2024		June 30,
2024
Cash and cash equivalents$37,307 $33,255 
Restricted cash306 300 
Total cash, cash equivalents, and restricted cash
$37,613 $33,555 
The Company’s cash, cash equivalents, and restricted cash are classified within Level I of the fair value hierarchy as it is valued using observable inputs that reflect quoted prices for identical assets in active markets. The Company’s restricted cash includes cash deposited in escrow accounts. The Company has deposited cash in an interest-bearing escrow account related to credit support, debt facilities, and collateral to workers compensation and general liability insurance obligations.
Prepaid expenses and other current assets consisted of the following:
As of
September 30,
2024		June 30,
2024
Prepaid revenue sharing expense
$66,765 $54,326 
Other prepaid expenses
20,189 19,632 
Current contract assets7,255 7,844 
Inventory (a)
4,087 3,871 
Other8,194 5,128 
Total prepaid expenses and other current assets$106,490 $90,801 
_________________
(a)    Inventory is mostly comprised of food and liquor for the venues.
Other non-current assets consisted of the following:
As of
September 30,
2024		June 30,
2024
Unbilled lease receivable (a)
$89,352 $98,473 
Investments (b)
7,042 6,320 
Deferred costs3,723 3,649 
Other1,843 1,841 
Total other non-current assets$101,960 $110,283 
_________________
(a)    Unbilled lease receivable relates to the amounts recorded under the Arena License Agreement.
(b)     See Note 5. Investments for more information on long-term investments.
Accounts payable, accrued and other current liabilities consisted of the following:
As of
September 30,
2024		June 30,
2024
Accounts payable$21,018 $26,594 
Accrued payroll and employee related liabilities30,579 71,145 
Cash due to promoters65,013 67,697 
Accrued expenses42,651 38,314 
Total accounts payable, accrued and other current liabilities$159,261 $203,750 
Other expense, net includes the following:
Three Months Ended
September 30,
20242023
Gains from shares sold — DraftKings$— $1,548 
Gains from shares sold - TSQ
5 — 
Net unrealized loss on equity investments with readily determinable fair value
(101)(5,449)
Other(673)(568)
Total other expense, net
$(769)$(4,469)
Income Taxes
During the three months ended September 30, 2024 and September 30, 2023, the Company made income tax payments of $381 and $0, respectively. Income tax benefit for the three months ended September 30, 2024 of $13,601, reflects an effective tax rate of 41%. The estimated annual effective tax rate exceeds the statutory federal tax rate of 21% primarily due to state taxes and excess tax deficiencies related to share-based compensation. The Company expects to utilize its net operating losses during Fiscal Year 2025 and as such will become a federal taxpayer by the end of Fiscal Year 2025.
Income tax benefit for the three months ended September 30, 2023 of $659, reflects an effective tax rate of 1%. The estimated annual effective tax rate is lower than the statutory federal tax rate of 21% primarily due to a decrease in the valuation allowance, partially offset by state taxes.
Stock Repurchase Program
On March 29, 2023, the Company’s Board of Directors authorized a share repurchase program to repurchase up to $250,000 of the Company’s Class A Common Stock (the “Stock Repurchase Program”). Pursuant to the Stock Repurchase Program, shares of Class A Common Stock may be purchased from time to time in open market or private transactions, block trades or such other manner as the Company may determine in accordance with applicable insider trading and other securities laws and regulations. The timing and amount of purchases will depend on market conditions and other factors. The Company did not repurchase any shares of Class A Common Stock under the plan in the three months ended September 30, 2024. As of September 30, 2024, the Company had approximately $110,000 remaining available for repurchases.
v3.24.3
Subsequent Events
 3 Months Ended
Sep. 30, 2024
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events
In October 2024, the Company paid down $30,000 of outstanding principal under the National Properties Revolving Credit Facility. On November 7, 2024 the Company paid down the remaining outstanding principal balance of $25,000 under the National Properties Revolving Credit Facility.
v3.24.3
Summary of Significant Accounting Policies (Policies)
 3 Months Ended
Sep. 30, 2024
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
The Company reports on a fiscal year basis ending on June 30th (“Fiscal Year”). In these unaudited condensed consolidated financial statements, the years ending and ended on June 30, 2026, June 30, 2025 and 2024, respectively, are referred to as “Fiscal Year 2026,” “Fiscal Year 2025” and “Fiscal Year 2024,” respectively.
The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and Article 10 of Regulation S-X of the SEC, and should be read in conjunction with the Company’s Audited Consolidated and Combined Annual Financial Statements.
In the opinion of the Company, the accompanying financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of September 30, 2024 and its results of operations and cash flows for the three months ended September 30, 2024 and 2023. The condensed consolidated balance sheet as of June 30, 2024 was derived from the Audited Consolidated and Combined Annual Financial Statements but does not contain all of the footnote disclosures from the Audited Consolidated and Combined Annual Financial Statements.
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. As a result of the production of the Christmas Spectacular, arena license fees in connection with the use of The Garden by the New York Knicks (the “Knicks”) of the National Basketball Association and the New York Rangers (the “Rangers”) of the National Hockey League, the Company generally earns a disproportionate share of its annual revenues in the second and third quarters of its fiscal year.
Reclassifications
Reclassifications
For purposes of comparability, certain prior period amounts have been reclassified to conform to the current year presentation in accordance with GAAP. The accompanying unaudited condensed consolidated financial information for the three months ended September 30, 2023 has been revised to change the presentation of our revenue and direct operating expenses from an aggregated to a disaggregated basis.
Principles of Consolidation Principles of Consolidation
All significant intercompany accounts and balances within the Company’s consolidated businesses have been eliminated.
Use of Estimates Use of Estimates
The preparation of the accompanying condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Such estimates include the provision for credit losses, goodwill, intangible assets, other long-lived assets, deferred tax assets, pension and other postretirement benefit obligations and the related net periodic benefit cost, and other liabilities. In addition, estimates are used in revenue recognition, depreciation and amortization, litigation matters and other matters. Management believes its use of estimates in the financial statements to be reasonable.
Management evaluates its estimates on an ongoing basis using historical experience and other factors, including the general economic environment and actions it may take in the future. The Company adjusts such estimates when facts and circumstances dictate. However, these estimates may involve significant uncertainties and judgments and cannot be determined with precision. In addition, these estimates are based on management’s best judgment at a point in time and, as such, these estimates may ultimately differ from actual results. Changes in estimates resulting from weakness in the economic environment or other factors beyond the Company’s control could be material and would be reflected in the Company’s condensed consolidated financial statements in future periods.
Revenue Recognition
The Company generates revenue from the provision of services and sale of tangible products, as well as leasing transactions. Revenues are presented under these three categories in the condensed consolidated statements of operations, as described below.
Service revenue, presented as “Revenues from entertainment offerings” primarily includes:
•Ticket sales and other ticket-related revenue
•Venue license fees for events held at the Company’s venues that the Company does not produce or promote/co-promote
•Sponsorship and signage
•Suite licenses and single night suite rentals
•Advertising commissions and related service fees
•Commissions related to the sale of merchandise for which the Company is not the principal in the underlying transaction
Product revenue, presented as “Food, beverage, and merchandise revenues”, includes:
•Sales of food and beverage during events held at the Company’s venues
•Sales of the Company’s merchandise at the Company’s venues and via traditional retail channels
Lease revenue, presented as “Arena license fees and other leasing revenue”, includes:
•Rental fees related to the arena license agreements that require the Knicks and the Rangers to play their home games at The Garden (the “Arena License Agreements”) with MSG Sports
•Sublease income
_________________
(a)    Venue operations and infrastructure costs are not specifically allocated to each revenue category, but are instead attributed in their entirety to service revenue, which is the Company’s principal revenue category. Leasing direct operating expenses materially consist of venue operations and infrastructure costs. As a result, the Company combines service and leasing direct operating expenses within “Entertainment offerings, arena license fees, and other leasing direct operating expenses” for presentation purposes.
The Company recognizes revenue when, or as, performance obligations under the terms of a contract are satisfied, which generally occurs when, or as, control of promised goods or services is transferred to customers. Revenue is measured as the amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services (“transaction price”). To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing the most likely amount to which the Company expects to be entitled. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Estimates of variable consideration and the determination of whether to include such estimated amounts in the transaction price are based largely on an assessment of the Company’s anticipated performance and all information that is reasonably available. The Company accounts for taxes collected from customers and remitted to governmental authorities on a net basis and excludes these amounts from revenues.
Arrangements with Multiple Performance Obligations
The Company enters into arrangements with multiple performance obligations, such as multi-year sponsorship agreements, which may derive revenues for the Company, as well as Sphere Entertainment and MSG Sports within a single arrangement. The Company also derives revenue from similar types of arrangements which are entered into by Sphere Entertainment and MSG Sports. Payment terms for such arrangements can vary by contract, but payments are generally due in installments throughout the contractual term. The performance obligations included in each sponsorship agreement vary and may include advertising and other benefits such as, but not limited to, signage at The Garden and the Company’s other venues, digital advertising, event or property-specific advertising, as well as non-advertising benefits such as suite licenses and event tickets. To the extent the Company’s multi-year arrangements provide for performance obligations that are consistent over the multi-year contractual term, such performance obligations generally meet the definition of a series as provided for under the accounting guidance. If performance obligations are concluded to meet the definition of a series, the contractual fees for all years during the contract term are aggregated and the related revenue is recognized proportionately as the underlying performance obligations are satisfied.
The timing of revenue recognition for each performance obligation is dependent upon the facts and circumstances surrounding the Company’s satisfaction of its respective performance obligation. The Company allocates the transaction price for such arrangements to each performance obligation within the arrangement based on the estimated relative standalone selling price of the performance obligation. The Company’s process for determining its estimated standalone selling prices involves management’s judgment and considers multiple factors including company specific and market specific factors that may vary depending upon the unique facts and circumstances related to each performance obligation. Key factors considered by the Company in developing an estimated standalone selling price for its performance obligations include, but are not limited to, prices charged for similar performance obligations, the Company’s ongoing pricing strategy and policies, and consideration of pricing of similar performance obligations sold in other arrangements with multiple performance obligations.
Principal versus Agent Revenue Recognition
The Company reports revenue on a gross or net basis based on management’s assessment of whether the Company acts as a principal or agent in the transaction. The determination of whether the Company acts as a principal or an agent in a transaction is based on an evaluation of whether the Company controls the good or service before transfer to the customer. When the Company concludes that it controls the good or service before transfer to the customer, the Company is considered a principal in the transaction and records revenue on a gross basis. When the Company concludes that it does not control the good or service before transfer to the customer but arranges for another entity to provide the good or service, the Company acts as an agent and records revenue on a net basis in the amount it earns for its agency service.
Contract Balances
Amounts collected in advance of the Company’s satisfaction of its contractual performance obligations are recorded as a contract liability within deferred revenue and are recognized as the Company satisfies the related performance obligations. Amounts collected in advance of events for which the Company is not the promoter or co-promoter do not represent contract liabilities and are recorded within accrued and other current liabilities on the accompanying consolidated balance sheets. Amounts recognized as revenue for which the Company has a right to consideration for goods or services transferred to customers and for which the Company does not have an unconditional right to bill as of the reporting date are recorded as contract assets. Contract assets are transferred to accounts receivable once the Company’s right to consideration becomes unconditional.
Direct Operating Expenses
Direct operating expenses related to the provision of services and leasing, presented as “Entertainment offerings, arena license fees, and other leasing direct operating expenses”, primarily include:(a)
•Event production costs including direct personnel expenses
•Venue operations and infrastructure costs (a)
•Venue rental costs for venues not owned by the Company
•Sponsorship and signage fulfillment costs
•Contractual revenue sharing expenses related to suite licenses and certain internal signage
•Event-related marketing and advertising costs
Direct operating expenses related to the sale of products, presented as “Food, beverage, and merchandise direct operating expenses” include:
•Costs of goods sold including direct personnel expenses
•Contractual revenue sharing expenses related to food and beverage sold at events held by Madison Square Garden Sports Corp. (together with its subsidiaries, as applicable, “MSG Sports”) at The Garden
In addition, the Company defers certain costs to fulfill the Company’s contracts with customers to the extent such costs relate directly to the contracts, are expected to generate resources that will be used to satisfy the Company’s performance obligations under the contracts, and are expected to be recovered through revenue generated under the contracts. Contract fulfillment costs are expensed as the Company satisfies the related performance obligations.
The Company may incur costs such as commissions to obtain its multi-year sponsorship agreements. The Company assesses such costs for capitalization on a contract by contract basis. To the extent costs are capitalized, the Company estimates the useful life of the related contract asset, which may be the underlying contract term or the estimated customer life depending on the facts and circumstances surrounding the contract. The contract asset is amortized over the estimated useful life.
Production Costs for the Company’s Original Productions
The Company defers certain costs of productions such as creative design, scenery, wardrobes, rehearsal and other related costs for the Company’s proprietary shows, reported under Prepaid expenses and other current assets and Other non-current assets. Deferred production costs are amortized on a straight-line basis over the course of a production’s performance period using the expected life of a show’s assets and are recorded as a component of Entertainment offerings, arena license fees, and other leasing direct operating expenses on the Company’s condensed consolidated statement of operations. Deferred production costs are subject to recoverability assessments whenever there is an indication of potential impairment.
Revenue Sharing Expenses
Revenue sharing expenses are determined based on contractual agreements between the Company and MSG Sports, primarily related to suite licenses, certain internal signage and in-venue food and beverage sales and are recorded as a component of Entertainment offerings, arena license fees, and other leasing direct operating expenses on the Company’s condensed consolidated statement of operations.
Recently Issued and Adopted Accounting Pronouncements Recently Issued and Adopted Accounting Pronouncements
Recently Issued Accounting Pronouncements
In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Improvement to Reportable Segment Disclosures. This ASU aims to improve segment disclosures through enhanced disclosures about significant segment expenses. The standard requires disclosure of significant expense categories and amounts for such expenses, including those segment expenses that are regularly provided to the chief operating decision maker, easily computable from information that is regularly provided, or significant expenses that are expressed in a form other than actual amounts. This standard will be effective for the Company as of and for the Fiscal Year ending June 30, 2025 and is required to be applied retrospectively to all prior periods presented in the financial statements. The Company continues to evaluate the impact of the additional disclosure requirements on the Company’s consolidated financial statements.
In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, a final standard on improvements to income tax disclosures which applies to all entities subject to income taxes. The standard requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The standard is intended to benefit investors by providing more detailed income tax disclosures that would be helpful to understand an entity’s exposure to potential changes in jurisdictional tax legislation and the ensuing risks and opportunities, assess income tax information that affects cash flow forecasts and capital allocation decisions, and identify potential opportunities to increase future cash flows. This standard will be effective for the Company in Fiscal Year 2026 and should be applied prospectively. The Company is currently evaluating the impact of the additional disclosure requirements on the Company’s consolidated financial statements.
In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses, requiring additional disclosures about specified categories of expenses included in certain expense captions presented on the face of the income statement. This standard will be effective for the Company as of and for the Fiscal Year ending June 30, 2028, and may be applied either prospectively to financial statements issued for reporting periods after the effective date of this ASU or retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact of adopting this guidance on the Company’s consolidated financial statements.
Revenue, Remaining Performance Obligation In developing the estimated revenue, the Company applies the allowable practical expedient and does not disclose information about remaining performance obligations that have original expected durations of one year or less.
v3.24.3
Revenue Recognition (Tables)
 3 Months Ended
Sep. 30, 2024
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
The following table disaggregates the Company’s revenue by major source based upon the timing of satisfaction of the Company’s performance obligations to the customer for the three months ended September 30, 2024 and 2023:
Three Months Ended
September 30,
20242023
Event-related offerings (a)
$89,182 $94,990 
Sponsorship, signage, and suite licenses (b)
38,938 39,815 
Other (c)
5,936 4,961 
Total revenues from contracts with customers
134,056 139,766 
Arena license fees and other leasing revenue 4,658 2,446 
Total revenues
$138,714 $142,212 
_________________
(a)    Event-related offerings revenues are recognized at a point in time.
(b)    See Note 2. Summary of Significant Accounting Policies and Note 4. Revenue Recognition, included in the Company’s Audited Consolidated and Combined Annual Financial Statements 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 and (ii) venue tours.
In addition to the disaggregation of the Company’s revenue as disclosed above, the following table disaggregates the Company’s revenues by revenue category, for the three months ended September 30, 2024 and 2023.
Three Months Ended
September 30,
20242023
Ticketing and venue license fee revenues (a)
$70,206 $71,729 
Sponsorship and signage, suite, and advertising commission revenues
42,890 43,336 
Food, beverage, and merchandise revenues
18,975 23,261 
Other1,985 1,440 
Total revenues from contracts with customers
134,056 139,766 
Arena license fees and other leasing revenue 4,658 2,446 
Total revenues
$138,714 $142,212 
_________________
(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.
Contract with Customer, Contract Assets and Liabilities
The following table provides information about the opening and closing contract balances from the Company’s contracts with customers as of September 30, 2024 and June 30, 2024:
As of
September 30,
2024		June 30,
2024
Receivables from contracts with customers, net (a)
$100,967 $74,113 
Contract assets, current (b)
$7,255 $7,844 
Deferred revenue, including non-current portion (c)
$270,955 $215,581 
    ________________
(a)    Receivables from contracts with customers, net, which are reported in Accounts receivable, net and Related party receivables, current in the Company’s condensed consolidated balance sheets, represent the Company’s unconditional rights to consideration under its contracts with customers. As of September 30, 2024 and June 30, 2024, the Company’s receivables from contracts with customers above included $5,114 and $2,432, respectively, related to various related parties. See Note 12. Related Party Transactions for further details on related party arrangements.
(b)    Contract assets, current, which are reported as Prepaid expenses and other current assets in the Company’s condensed 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 the 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 three months ended September 30, 2024 relating to the deferred revenue balance as of June 30, 2024 was $85,476.
v3.24.3
Restructuring Credits (Charges) (Tables)
 3 Months Ended
Sep. 30, 2024
Restructuring and Related Activities [Abstract]  
Restructuring and Related Costs Changes to the Company’s restructuring liability through September 30, 2024 were as follows:
Restructuring Liability
June 30, 2024
$7,140 
Restructuring credits
(40)
Payments
(3,640)
September 30, 2024$3,460 
v3.24.3
Investments (Tables)
 3 Months Ended
Sep. 30, 2024
Investments in and Advances to Affiliates [Abstract]  
Cost And Equity Method Investments
The carrying value of the Company’s investments, which is reported under Other non-current assets in the accompanying condensed consolidated balance sheets as of September 30, 2024 and June 30, 2024, is as follows:
As of
September 30,
2024		June 30,
2024
Equity investments with readily determinable fair values:
Townsquare Class A common stock$1,287 $1,438 
Other equity investments with readily determinable fair values held in trust under the Company’s Executive Deferred Compensation Plan5,047 4,226 
Equity method investments and equity investments without readily determinable fair values(a)
708 656 
Total investments$7,042 $6,320 
_______________
(a)    Inclusive of the Company’s investment in Oak View Group’s Crown Properties Collection, LLC ("CPC").
Gain (Loss) on Securities
The following table summarizes the realized and unrealized gain (loss) on equity investments with readily determinable fair value, which is reported in Other income (expense), net for the three months ended September 30, 2024 and 2023:
Three Months Ended
September 30,
20242023
Unrealized loss — Townsquare
$(101)$(5,449)
Unrealized gain (loss) — Executive Deferred Compensation Plan220 (145)
Realized gain from shares sold — DraftKings
— 1,548 
Realized gain from shares sold — Townsquare
5 — 
Total realized and unrealized gain (loss)
$124 $(4,046)
Supplemental information on realized gain:
Shares of common stock sold — DraftKings— 425 
Cash proceeds from common stock sold — DraftKings$— $12,844 
Shares of common stock sold — Townsquare
5 — 
Cash proceeds from common stock sold — Townsquare
$55 $— 
v3.24.3
Property and Equipment, Net (Tables)
 3 Months Ended
Sep. 30, 2024
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment
As of September 30, 2024 and June 30, 2024, property and equipment, net consisted of the following:
As of
September 30,
2024		June 30,
2024
Land$62,768 $62,768 
Buildings1,012,370 1,011,308 
Equipment, furniture, and fixtures
350,351 348,075 
Leasehold improvements
133,267 133,267 
Construction in progress
29,442 10,193 
Total Property and equipment$1,588,198 $1,565,611 
Less: accumulated depreciation and amortization
(945,860)(932,078)
Property and equipment, net$642,338 $633,533 
v3.24.3
Goodwill and Intangible Assets (Tables)
 3 Months Ended
Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Indefinite-Lived Intangible Assets
The Company’s indefinite-lived intangible assets as of September 30, 2024 and June 30, 2024 were as follows:
As of
September 30,
2024		June 30,
2024
Trademarks$61,881 $61,881 
Photographic related rights1,920 1,920 
Total indefinite-lived intangible assets$63,801 $63,801 
v3.24.3
Credit Facilities (Tables)
 3 Months Ended
Sep. 30, 2024
Debt Disclosure [Abstract]  
Schedule of Long-Term Debt Instruments The following table summarizes the presentation of the outstanding balances under the Company’s credit agreements as of September 30, 2024 and June 30, 2024:
As of
September 30,
2024		June 30,
2024
Current Portion
National Properties Term Loan Facility
$20,313 $16,250 
Current portion of long-term debt
$20,313 $16,250 
As of
September 30, 2024June 30, 2024
PrincipalUnamortized Deferred Financing CostsNetPrincipalUnamortized Deferred Financing CostsNet
Non-current Portion
National Properties Term Loan Facility
$601,250 $(8,814)$592,436 $609,375 $(9,624)$599,751 
National Properties Revolving Credit Facility
55,000 (461)54,539 — (503)(503)
Long-term debt, net of deferred financing costs
$656,250 $(9,275)$646,975 $609,375 $(10,127)$599,248 
Schedule of Cash Flow, Supplemental Disclosures
Interest payments and loan principal repayments made by the Company under the National Properties Credit Agreement were as follows:
Interest PaymentsPrincipal Repayments
Three Months EndedThree Months Ended
September 30,September 30,
2024202320242023
National Properties Facilities
$13,277 $13,193 $4,063 $— 
The carrying value and fair value of the Company’s debt reported in the accompanying condensed consolidated balance sheets were as follows:
As of
September 30, 2024June 30, 2024
Carrying
Value (a)
Fair
Value
Carrying
Value (a)
Fair
Value
National Properties Facilities
$676,563 $672,630 $625,625 $622,497 
________________
(a)    The total carrying value of the Company’s debt as of September 30, 2024 and June 30, 2024 is equal to the current and non-current principal payments for the Company’s credit agreements excluding unamortized deferred financing costs of $9,275 and $10,127, respectively.
v3.24.3
Pension Plans and Other Postretirement Benefit Plans (Tables)
 3 Months Ended
Sep. 30, 2024
Retirement Benefits [Abstract]  
Schedule of Net Benefit Costs
The following table presents components of net periodic benefit cost for the Pension Plans and Postretirement Plan included in the accompanying condensed consolidated statements of operations for the three months ended September 30, 2024 and 2023. 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 Other expense, net.
Pension PlansPostretirement Plan
Three Months EndedThree Months Ended
September 30,September 30,
2024202320242023
Service cost$18 $17 $5 $6 
Interest cost1,668 1,469 30 24 
Expected return on plan assets(1,292)(1,091)— — 
Recognized actuarial loss446 238 6 — 
Net periodic cost
$840 $633 $41 $30 
Defined Contribution Plan Disclosures
For the three months ended September 30, 2024 and 2023, expenses related to the Savings Plans and Union Savings Plan included in the accompanying condensed consolidated statements of operations are as follows:
Three Months Ended
September 30,
20242023
Savings Plans$2,024 $2,034 
Union Savings Plan$82 $50 
Deferred Compensation Arrangement with Individual Disclosure, Postretirement Benefits
The following table summarizes amounts recognized related to the Deferred Compensation Plan in the condensed consolidated balance sheets:
As of
September 30,
2024		June 30,
2024
Deferred Compensation Plan assets (included in Other non-current assets)
$5,047 $4,226 
Deferred Compensation Plan liabilities (included in Other non-current liabilities)
$(5,063)$(4,226)
v3.24.3
Share-based Compensation (Tables)
 3 Months Ended
Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity The following table summarizes the Company’s share-based compensation expense:
Three Months Ended
September 30,
20242023
Share-based compensation expense (a)
$6,262 $6,177 
Fair value of awards vested (b)
$29,022 $26,400 
________________
(a)    The expense shown excludes $6,788 for the three months ended September 30, 2023, which was reclassified to Restructuring charges in the condensed consolidated statements of operations as detailed in Note 4. Restructuring Credits (Charges).
(b)     To fulfill required statutory tax withholding obligations for the applicable income and other employment taxes, RSUs and PSUs with an aggregate value of $12,808 and $11,817 were retained by the Company during the three months ended September 30, 2024 and 2023, respectively.
v3.24.3
Related Party Transactions (Tables)
 3 Months Ended
Sep. 30, 2024
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. The significant components of these amounts are discussed below. These amounts are reflected in revenues and operating expenses in the accompanying condensed consolidated statements of operations for the three months ended September 30, 2024 and 2023:
Three Months
September 30,
20242023
Revenues$7,883 $5,159 
Operating expenses (credits):
Revenue sharing expenses$1,150 $1,152 
Reimbursement under Arena License Arrangements(73)(429)
Cost reimbursement from MSG Sports(8,387)(9,861)
Cost reimbursement from Sphere Entertainment
(22,993)(30,336)
Other operating (credits) expenses, net
(1,117)553 
Total operating expenses (credits), net (a)
$(31,420)$(38,921)
_________________
(a)    Of the total operating expenses (credits), net, $1,294 and $1,310 for the three months ended September 30, 2024 and 2023, respectively, are included in direct operating expenses in the accompanying condensed consolidated statements of operations, and $(32,714) and $(40,231) for the three months ended September 30,
2024 and 2023, respectively, are included in selling, general, and administrative expenses.
v3.24.3
Additional Financial Information (Tables)
 3 Months Ended
Sep. 30, 2024
Additional Financial Information [Abstract]  
Schedule Of Cash, Cash Equivalents, And Restricted Cash
The following table provides a summary of the amounts recorded as cash, cash equivalents, and restricted cash:
As of
September 30,
2024		June 30,
2024
Cash and cash equivalents$37,307 $33,255 
Restricted cash306 300 
Total cash, cash equivalents, and restricted cash
$37,613 $33,555 
Schedule of Other Current Assets
Prepaid expenses and other current assets consisted of the following:
As of
September 30,
2024		June 30,
2024
Prepaid revenue sharing expense
$66,765 $54,326 
Other prepaid expenses
20,189 19,632 
Current contract assets7,255 7,844 
Inventory (a)
4,087 3,871 
Other8,194 5,128 
Total prepaid expenses and other current assets$106,490 $90,801 
_________________
(a)    Inventory is mostly comprised of food and liquor for the venues.
Schedule of Other Assets, Noncurrent
Other non-current assets consisted of the following:
As of
September 30,
2024		June 30,
2024
Unbilled lease receivable (a)
$89,352 $98,473 
Investments (b)
7,042 6,320 
Deferred costs3,723 3,649 
Other1,843 1,841 
Total other non-current assets$101,960 $110,283 
_________________
(a)    Unbilled lease receivable relates to the amounts recorded under the Arena License Agreement.
(b)     See Note 5. Investments for more information on long-term investments.
Other Current Liabilities
Accounts payable, accrued and other current liabilities consisted of the following:
As of
September 30,
2024		June 30,
2024
Accounts payable$21,018 $26,594 
Accrued payroll and employee related liabilities30,579 71,145 
Cash due to promoters65,013 67,697 
Accrued expenses42,651 38,314 
Total accounts payable, accrued and other current liabilities$159,261 $203,750 
Schedule of Other Nonoperating Income (Expense)
Other expense, net includes the following:
Three Months Ended
September 30,
20242023
Gains from shares sold — DraftKings$— $1,548 
Gains from shares sold - TSQ
5 — 
Net unrealized loss on equity investments with readily determinable fair value
(101)(5,449)
Other(673)(568)
Total other expense, net
$(769)$(4,469)
v3.24.3
Description of Business and Basis of Presentation (Details)
 3 Months Ended
Sep. 30, 2024
segment
$ / shares
Jun. 30, 2024
$ / shares
Apr. 20, 2023
$ / shares
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]      
Number of reportable segments | segment 1    
Common Class A      
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]      
Common stock, par or stated value per share (in dollars per share) | $ / shares $ 0.01 $ 0.01 $ 0.01
Madison Square Garden Entertainment | Spinoff      
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]      
Noncontrolling interest, ownership percentage by noncontrolling owners     33.00%
Madison Square Garden Entertainment | Spinoff | MSG Stockholders      
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]      
Noncontrolling interest, ownership percentage by parent     67.00%
v3.24.3
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Disaggregation of Revenue [Line Items]    
Revenue from contract with customer $ 134,056 $ 139,766
Arena license fees and other leasing revenue 4,658 2,446
Total revenues [1] 138,714 142,212
Event-related offerings | Transferred at Point in Time    
Disaggregation of Revenue [Line Items]    
Revenue from contract with customer 89,182 94,990
Sponsorship, signage, and suite licenses | Transferred over Time    
Disaggregation of Revenue [Line Items]    
Revenue from contract with customer 38,938 39,815
Arena license fees and other leasing revenue    
Disaggregation of Revenue [Line Items]    
Revenue from contract with customer 1,985 1,440
Arena license fees and other leasing revenue | Transferred at Point in Time    
Disaggregation of Revenue [Line Items]    
Revenue from contract with customer 5,936 4,961
Ticketing and venue license fee revenues    
Disaggregation of Revenue [Line Items]    
Revenue from contract with customer 70,206 71,729
Sponsorship and signage, suite, and advertising commission revenues    
Disaggregation of Revenue [Line Items]    
Revenue from contract with customer 42,890 43,336
Food, beverage, and merchandise revenues    
Disaggregation of Revenue [Line Items]    
Revenue from contract with customer [1] $ 18,975 $ 23,261
[1] See Note 12. Related Party Transactions for further information on related party arrangements.
v3.24.3
Revenue Recognition - Contract Balances (Details) - USD ($)
$ in Thousands
 3 Months Ended
Sep. 30, 2024
Jun. 30, 2024
Capitalized Contract Cost [Line Items]    
Contract with customer, deferred revenue, revenue recognized $ 85,476  
Receivables from contracts with customers, net    
Capitalized Contract Cost [Line Items]    
Contracts with customers, assets, net 100,967 $ 74,113
Contract assets, current    
Capitalized Contract Cost [Line Items]    
Contracts with customers, assets, net 7,255 7,844
Deferred revenue, including non-current portion    
Capitalized Contract Cost [Line Items]    
Deferred revenue, including non-current portion 270,955 215,581
Other receivables, net, current | Related Party    
Capitalized Contract Cost [Line Items]    
Contracts with customers, assets, net $ 5,114 $ 2,432
v3.24.3
Revenue Recognition - Remaining Performance Obligation (Details)
$ in Thousands
Sep. 30, 2024
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, amount $ 601,000
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, percentage 57.00%
Revenue, remaining performance obligation, expected timing of satisfaction, period 2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-10-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, percentage 43.00%
Revenue, remaining performance obligation, expected timing of satisfaction, period
v3.24.3
Restructuring Credits (Charges) - Additional Information (Details) - USD ($)
$ in Thousands
 3 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Restructuring and Related Activities [Abstract]    
Restructuring credits $ (40) $ 11,553
Share-based compensation expense   $ 6,788
v3.24.3
Restructuring Credits (Charges) - Restructuring Liability Rollforward (Details) - USD ($)
$ in Thousands
 3 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Restructuring Reserve [Roll Forward]    
Restructuring reserve, beginning balance $ 7,140  
Restructuring credits (40) $ 11,553
Payments (3,640)  
Restructuring reserve, ending balance $ 3,460  
v3.24.3
Investments - Equity Securities With Readily Determinable Fair Value (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Jun. 30, 2024
Schedule of Investments [Line Items]    
Total investments $ 7,042 $ 6,320
Other equity investments with readily determinable fair values held in trust under the Company’s Executive Deferred Compensation Plan    
Schedule of Investments [Line Items]    
Total investments 5,047 4,226
Equity method investments and equity investments without readily determinable fair values    
Schedule of Investments [Line Items]    
Total investments 708 656
Townsquare | Common Stock | Common Class A    
Schedule of Investments [Line Items]    
Total investments $ 1,287 $ 1,438
v3.24.3
Investments - Schedule With Readily Determinable Fair Values (Details) - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Schedule of Investments [Line Items]    
Unrealized gain (loss) $ (101) $ (5,449)
Total realized and unrealized gain (loss) 124 (4,046)
Supplemental information on realized gain:    
Cash proceeds from common stock sold 55 12,844
Townsquare    
Schedule of Investments [Line Items]    
Unrealized gain (loss) (101) (5,449)
Realized gain from shares sold $ 5 $ 0
Supplemental information on realized gain:    
Shares of common stock sold (in shares) 5 0
Cash proceeds from common stock sold $ 55 $ 0
Executive Deferred Compensation Plan    
Schedule of Investments [Line Items]    
Unrealized gain (loss) 220 (145)
Draftkings    
Schedule of Investments [Line Items]    
Realized gain from shares sold $ 0 $ 1,548
Supplemental information on realized gain:    
Shares of common stock sold (in shares) 0 425
Cash proceeds from common stock sold $ 0 $ 12,844
v3.24.3
Property and Equipment, Net (Details) - USD ($)
$ in Thousands
 3 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Jun. 30, 2024
Property, Plant and Equipment [Line Items]      
Property and equipment $ 1,588,198   $ 1,565,611
Less accumulated depreciation and amortization (945,860)   (932,078)
Property and equipment, net 642,338   633,533
Depreciation and amortization 13,781 $ 13,585  
Land      
Property, Plant and Equipment [Line Items]      
Property and equipment 62,768   62,768
Buildings      
Property, Plant and Equipment [Line Items]      
Property and equipment 1,012,370   1,011,308
Equipment, furniture, and fixtures      
Property, Plant and Equipment [Line Items]      
Property and equipment 350,351   348,075
Leasehold improvements      
Property, Plant and Equipment [Line Items]      
Property and equipment 133,267   133,267
Construction in progress      
Property, Plant and Equipment [Line Items]      
Property and equipment $ 29,442   $ 10,193
v3.24.3
Goodwill and Intangible Assets - Additional Information (Details) - USD ($)
 3 Months Ended
Sep. 30, 2024
Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]    
Goodwill $ 69,041,000 $ 69,041,000
Goodwill and intangible asset impairment $ 0  
v3.24.3
Goodwill and Intangible Assets - Schedule of Indefinite-Lived Intangible Assets (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Jun. 30, 2024
Indefinite-Lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets $ 63,801 $ 63,801
Trademarks    
Indefinite-Lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets 61,881 61,881
Photographic related rights    
Indefinite-Lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets $ 1,920 $ 1,920
v3.24.3
Commitments and Contingencies (Details) - USD ($)
shares in Thousands, $ in Thousands
Aug. 09, 2023
Jul. 14, 2023
Jun. 30, 2024
Apr. 20, 2023
Other Commitments [Line Items]        
Contractual obligation     $ 323,178  
DDTL Facility | Sphere Entertainment | MSG Entertainment | Common Class A        
Other Commitments [Line Items]        
Debt conversion, converted instrument, shares issued (in shares) 1,923      
Secured Debt | DDTL Facility | Line of Credit | Sphere Entertainment        
Other Commitments [Line Items]        
Proceeds from long-term lines of credit   $ 65,000    
Sphere Entertainment | Secured Debt | DDTL Facility | Line of Credit | MSG Entertainment Holdings        
Other Commitments [Line Items]        
Loans receivable, maximum borrowing amount       $ 65,000
v3.24.3
Credit Facilities - Debt Outstanding and Deferred Financing Costs (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Jun. 30, 2024
Debt Instrument [Line Items]    
Long-term debt, current $ 20,313 $ 16,250
Principal 656,250 609,375
Unamortized Deferred Financing Costs (9,275) (10,127)
Net 646,975 599,248
Secured Debt    
Debt Instrument [Line Items]    
Long-term debt, current 20,313 16,250
National Properties Term Loan Facility | Line of Credit | Secured Debt    
Debt Instrument [Line Items]    
Long-term debt, current 20,313 16,250
Principal 601,250 609,375
Unamortized Deferred Financing Costs (8,814) (9,624)
Net 592,436 599,751
National Properties Revolving Credit Facility | Line of Credit | Revolving Credit Facility    
Debt Instrument [Line Items]    
Principal 55,000 0
Unamortized Deferred Financing Costs (461) $ (503)
Net $ 54,539  
v3.24.3
Credit Facilities - Narrative (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Sep. 30, 2024
Jun. 30, 2024
Sep. 15, 2023
Debt Instrument [Line Items]        
Principal   $ 656,250 $ 609,375  
MSG Entertainment Group, LLC. and MSG National Properties And Subsidiaries        
Debt Instrument [Line Items]        
Debt covenant, minimum consolidated liquidity   $ 50,000    
National Properties Facilities | MSG Entertainment Group, LLC. and MSG National Properties And Subsidiaries        
Debt Instrument [Line Items]        
Long-term debt, percentage bearing variable interest rate, percentage rate   7.45%    
National Properties Facilities | MSG Entertainment Group, LLC. and MSG National Properties And Subsidiaries | Debt Instrument, Redemption, Period One | Measurement Input, Leverage Ratio        
Debt Instrument [Line Items]        
Debt instrument, measurement input   2    
National Properties Facilities | MSG Entertainment Group, LLC. and MSG National Properties And Subsidiaries | Debt Instrument, Redemption, Period Two | Measurement Input, Leverage Ratio        
Debt Instrument [Line Items]        
Debt instrument, measurement input   2.5    
National Properties Facilities | MSG Entertainment Group, LLC. and MSG National Properties And Subsidiaries | Debt Instrument, Redemption, Period Three | Measurement Input, Leverage Ratio        
Debt Instrument [Line Items]        
Debt instrument, measurement input   6    
National Properties Facilities | MSG Entertainment Group, LLC. and MSG National Properties And Subsidiaries | Debt Instrument, Redemption, Period Four | Measurement Input, Leverage Ratio        
Debt Instrument [Line Items]        
Debt instrument, measurement input   5.5    
National Properties Facilities | MSG Entertainment Group, LLC. and MSG National Properties And Subsidiaries | Debt Instrument, Redemption, Period Five | Measurement Input, Leverage Ratio        
Debt Instrument [Line Items]        
Debt instrument, measurement input   4.5    
National Properties Facilities | MSG Entertainment Group, LLC. and MSG National Properties And Subsidiaries | Secured Overnight Financing Rate (SOFR)        
Debt Instrument [Line Items]        
Basis spread on variable rate 0.10%      
National Properties Facilities | MSG Entertainment Group, LLC. and MSG National Properties And Subsidiaries | Minimum | Base Rate        
Debt Instrument [Line Items]        
Basis spread on variable rate 1.50%      
National Properties Facilities | MSG Entertainment Group, LLC. and MSG National Properties And Subsidiaries | Minimum | Secured Overnight Financing Rate (SOFR)        
Debt Instrument [Line Items]        
Basis spread on variable rate 2.50%      
National Properties Facilities | MSG Entertainment Group, LLC. and MSG National Properties And Subsidiaries | Maximum | Base Rate        
Debt Instrument [Line Items]        
Basis spread on variable rate 2.50%      
National Properties Facilities | MSG Entertainment Group, LLC. and MSG National Properties And Subsidiaries | Maximum | Secured Overnight Financing Rate (SOFR)        
Debt Instrument [Line Items]        
Basis spread on variable rate 3.50%      
National Properties Facilities | Secured Debt | Debt Instrument, Redemption, Period One        
Debt Instrument [Line Items]        
Prepayment premium, debt instrument, interest rate, stated percentage   2.50%    
Prepayment premium, debt instrument, interest rate per quarter, stated percentage   0.625%    
National Properties Facilities | Secured Debt | Debt Instrument, Redemption, Period Two        
Debt Instrument [Line Items]        
Prepayment premium, debt instrument, interest rate, stated percentage   5.00%    
Prepayment premium, debt instrument, interest rate per quarter, stated percentage   1.25%    
National Properties Facilities | Secured Debt | Line of Credit | MSG Entertainment Group, LLC. and MSG National Properties And Subsidiaries        
Debt Instrument [Line Items]        
Debt instrument term 5 years      
Face amount $ 650,000      
National Properties Facilities | Revolving Credit Facility | MSG Entertainment Group, LLC. and MSG National Properties And Subsidiaries | Minimum        
Debt Instrument [Line Items]        
Commitment fee percentage 0.30%      
National Properties Facilities | Revolving Credit Facility | MSG Entertainment Group, LLC. and MSG National Properties And Subsidiaries | Maximum        
Debt Instrument [Line Items]        
Commitment fee percentage 0.50%      
National Properties Facilities | Revolving Credit Facility | Line of Credit | MSG Entertainment Group, LLC. and MSG National Properties And Subsidiaries        
Debt Instrument [Line Items]        
Debt instrument term 5 years      
Face amount $ 150,000      
Line of credit facility, remaining borrowing capacity   $ 76,174    
National Properties Facilities | Letter of Credit | Line of Credit | MSG Entertainment Group, LLC. and MSG National Properties And Subsidiaries        
Debt Instrument [Line Items]        
Line of credit facility, maximum borrowing capacity       $ 25,000
Principal   $ 18,826    
v3.24.3
Credit Facilities - Schedule of Credit Facilities (Details) - USD ($)
$ in Thousands
 3 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Jun. 30, 2024
Debt Instrument [Line Items]      
Unamortized Deferred Financing Costs $ 9,275   $ 10,127
National Properties Term Loan Facility | Debt      
Debt Instrument [Line Items]      
Carrying Value 676,563   625,625
Fair Value 672,630   $ 622,497
National Properties Term Loan Facility | MSG Entertainment Group, LLC. and MSG National Properties And Subsidiaries      
Debt Instrument [Line Items]      
Interest Payments 13,277 $ 13,193  
Principal Repayments $ 4,063 $ 0  
v3.24.3
Pension Plans and Other Postretirement Benefit Plans - Schedule of Net Periodic Benefit Cost (Details) - USD ($)
$ in Thousands
 3 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Defined Benefit Plan Disclosure [Line Items]    
Recognized actuarial loss $ (220) $ 145
Pension Plans    
Defined Benefit Plan Disclosure [Line Items]    
Service cost 18 17
Interest cost 1,668 1,469
Expected return on plan assets (1,292) (1,091)
Recognized actuarial loss 446 238
Net periodic cost 840 633
Postretirement Plan    
Defined Benefit Plan Disclosure [Line Items]    
Service cost 5 6
Interest cost 30 24
Expected return on plan assets 0 0
Recognized actuarial loss 6 0
Net periodic cost $ 41 $ 30
v3.24.3
Pension Plans and Other Postretirement Benefit Plans - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]    
Deferred compensation arrangement with individual, compensation expense $ 220 $ (145)
Defined benefit plan, amortization of gain (loss) 220 $ (145)
Cash Balance Plan    
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]    
Defined benefit plan, plan assets, contributions by employer $ 3,300  
v3.24.3
Pension Plans and Other Postretirement Benefit Plans - Schedule of Defined Contribution Plans (Details) - USD ($)
$ in Thousands
 3 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Savings Plans    
Defined Contribution Plan Disclosure [Line Items]    
Defined contribution plan (benefit) cost $ 2,024 $ 2,034
Union Savings Plan    
Defined Contribution Plan Disclosure [Line Items]    
Defined contribution plan (benefit) cost $ 82 $ 50
v3.24.3
Pension Plans and Other Postretirement Benefit Plans - Schedule of Deferred Compensation Plan Amounts Recognized On Balance Sheet (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Jun. 30, 2024
Retirement Benefits [Abstract]    
Deferred Compensation Plan assets (included in Other non-current assets) $ 5,047 $ 4,226
Deferred Compensation Plan liabilities (included in Other non-current liabilities) $ (5,063) $ (4,226)
v3.24.3
Share-based Compensation - Narrative (Details)
shares in Thousands, $ in Thousands
 3 Months Ended
Sep. 30, 2024
USD ($)
plan
shares
Sep. 30, 2023
shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Number of share-based compensation plans | plan 2  
Performance Stock Units and Restricted Stock Units | Employee    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Unrecognized compensation cost | $ $ 55,333  
Period for recognition 2 years 6 months  
Restricted Stock Units (RSUs)    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Awards granted (in shares) 433 562
Awards vested (in shares) 416 476
Performance Shares    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Awards granted (in shares) 386 506
Awards vested (in shares) 305 241
v3.24.3
Share-based Compensation - Restricted Stock Units Activity (Details) - USD ($)
$ in Thousands
 3 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Share-based compensation expense   $ 6,788
Tax withholding associated with shares issued for share-based compensation $ 12,830 11,834
Performance Stock Units and Restricted Stock Units    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Share-based compensation expense 6,262 6,177
Fair value of awards vested 29,022 26,400
Tax withholding associated with shares issued for share-based compensation $ 12,808 $ 11,817
v3.24.3
Related Party Transactions - Narrative (Details) - USD ($)
$ / shares in Units, $ in Thousands
 1 Months Ended 3 Months Ended
Aug. 31, 2022
Sep. 30, 2024
Sep. 30, 2023
Jun. 30, 2024
Apr. 20, 2023
Related Party Transaction [Line Items]          
Total revenues [1]   $ 138,714 $ 142,212    
605 LLC | Audience Measurement And Data Analytics Services          
Related Party Transaction [Line Items]          
Related party transaction, amounts of transaction $ 750        
MSG Sports | Sponsorship Sales And Service Representation Agreements          
Related Party Transaction [Line Items]          
Total revenues   2,751 2,763    
MSG Sports | Merchandise Sales Revenue Sharing Arrangement          
Related Party Transaction [Line Items]          
Total revenues   247 196    
Related Party          
Related Party Transaction [Line Items]          
Sales commissions and fees   494 0    
Prepaid expense   6,998   $ 5,993  
Revenue not from contract with customer, other   1,324 1,324    
Total revenues   7,883 5,159    
Sublease income   $ 3,561 759    
Related Party | 605 LLC          
Related Party Transaction [Line Items]          
Subsidiary, related party contract agreement, term 3 years        
Chief Executive Officer | 605 LLC | Audience Measurement And Data Analytics Services          
Related Party Transaction [Line Items]          
Related party transaction, amounts of transaction     $ 34    
Common Class B          
Related Party Transaction [Line Items]          
Common stock, par or stated value per share (in dollars per share)   $ 0.01   $ 0.01  
Common Class A          
Related Party Transaction [Line Items]          
Common stock, par or stated value per share (in dollars per share)   $ 0.01   $ 0.01 $ 0.01
Dolan Family Group          
Related Party Transaction [Line Items]          
Noncontrolling interest, ownership percentage by parent   63.60%      
Common stock exercisable term   60 days      
Dolan Family Group | Common Class B          
Related Party Transaction [Line Items]          
Noncontrolling interest, ownership percentage by parent   100.00%      
Dolan Family Group | Common Class A          
Related Party Transaction [Line Items]          
Noncontrolling interest, ownership percentage by parent   4.10%      
[1] See Note 12. Related Party Transactions for further information on related party arrangements.
v3.24.3
Related Party Transactions - Schedule of Related Party Transactions by Type (Details) - USD ($)
$ in Thousands
 3 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Related Party Transaction [Line Items]    
Revenues [1] $ 138,714 $ 142,212
Operating expenses (credits):    
Related party expense [1] 97,709 101,677
Selling, general and administrative expenses [1] (45,746) (48,822)
Related Party    
Related Party Transaction [Line Items]    
Revenues 7,883 5,159
Operating expenses (credits):    
Related party costs and expenses 31,420 38,921
Related party expense 1,294 1,310
Selling, general and administrative expenses (32,714) (40,231)
Related Party | Revenue sharing expenses    
Operating expenses (credits):    
Related party costs and expenses 1,150 1,152
Related Party | Reimbursement under Arena License Arrangements    
Operating expenses (credits):    
Related party costs and expenses (73) (429)
Related Party | Cost reimbursement from MSG Sports    
Operating expenses (credits):    
Related party costs and expenses (8,387) (9,861)
Related Party | Cost reimbursement from Sphere Entertainment    
Operating expenses (credits):    
Related party costs and expenses (22,993) (30,336)
Related Party | Other operating (credits) expenses, net    
Operating expenses (credits):    
Related party costs and expenses $ (1,117) $ 553
[1] See Note 12. Related Party Transactions for further information on related party arrangements.
v3.24.3
Additional Financial Information - Schedule of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Jun. 30, 2024
Sep. 30, 2023
Jun. 30, 2023
Additional Financial Information [Abstract]        
Cash and cash equivalents $ 37,307 $ 33,255    
Restricted cash 306 300    
Total cash, cash equivalents, and restricted cash $ 37,613 $ 33,555 $ 39,516 $ 84,355
v3.24.3
Additional Financial Information - Schedule of Current Assets (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Jun. 30, 2024
Additional Financial Information [Abstract]    
Prepaid revenue sharing expense $ 66,765 $ 54,326
Other prepaid expenses 20,189 19,632
Current contract assets 7,255 7,844
Inventory 4,087 3,871
Other 8,194 5,128
Total prepaid expenses and other current assets $ 106,490 $ 90,801
v3.24.3
Additional Financial Information - Schedule of Other Noncurrent Assets (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Jun. 30, 2024
Additional Financial Information [Abstract]    
Unbilled lease receivable $ 89,352 $ 98,473
Investments 7,042 6,320
Deferred costs 3,723 3,649
Other 1,843 1,841
Total other non-current assets $ 101,960 $ 110,283
v3.24.3
Additional Financial Information - Schedule of Current Liabilities (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Jun. 30, 2024
Additional Financial Information [Abstract]    
Accounts payable $ 21,018 $ 26,594
Accrued payroll and employee related liabilities 30,579 71,145
Cash due to promoters 65,013 67,697
Accrued expenses 42,651 38,314
Total accounts payable, accrued and other current liabilities $ 159,261 $ 203,750
v3.24.3
Additional Financial Information - Schedule of Other Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Compensating Balances [Line Items]    
Net unrealized loss on equity investments with readily determinable fair value $ (101) $ (5,449)
Other (673) (568)
Total other expense, net (769) (4,469)
Draftkings    
Compensating Balances [Line Items]    
Gains from shares sold 0 1,548
TSQ    
Compensating Balances [Line Items]    
Gains from shares sold 5 0
Net unrealized loss on equity investments with readily determinable fair value $ (101) $ (5,449)
v3.24.3
Additional Financial Information - Additional Information (Details) - USD ($)
$ in Thousands
 3 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Mar. 29, 2023
Class of Stock [Line Items]      
Income taxes paid $ 381 $ 0  
Income tax benefit $ (13,601) $ (659)  
Effective income tax rate reconciliation, percent 41.00% 1.00%  
Common Class A      
Class of Stock [Line Items]      
Stock repurchase program, authorized amount     $ 250,000
Number of shares repurchased (in shares) 0    
Stock repurchase program, remaining authorized repurchase amount $ 110    
v3.24.3
Subsequent Events (Details) - Subsequent Event - National Properties Revolving Credit Facility - USD ($)
$ in Thousands
 1 Months Ended
Nov. 07, 2024
Oct. 31, 2024
Subsequent Event [Line Items]    
Repayments of lines of credit   $ 30,000
Principal Repayments $ 25,000  
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