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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 December 31, 2023
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 January 31, 2024:
Class A Common Stock par value $0.01 per share —41,121,950 
Class B Common Stock par value $0.01 per share —6,866,754 


INDEX TO CONDENSED CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS

Page

1

PART I – FINANCIAL INFORMATION
Item 1. Financial Statements
MADISON SQUARE GARDEN ENTERTAINMENT CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(in thousands, except per share data)
As of
December 31,June 30,
20232023
ASSETS
Current Assets:
Cash, cash equivalents, and restricted cash$37,572 $84,355 
Accounts receivable, net101,955 63,898 
Related party receivables, current41,318 69,466 
Prepaid expenses and other current assets69,408 77,562 
Total current assets250,253 295,281 
Non-Current Assets:
Property and equipment, net626,172 628,888 
Right-of-use lease assets310,219 235,790 
Goodwill69,041 69,041 
Intangible assets, net63,801 63,801 
Other non-current assets100,789 108,356 
Total assets$1,420,275 $1,401,157 
LIABILITIES AND RETAINED EARNINGS (DEFICIT)
Current Liabilities:
Accounts payable, accrued and other current liabilities$197,256 $214,725 
Related party payables, current52,677 47,281 
Long-term debt, current16,250 16,250 
Operating lease liabilities, current35,539 36,529 
Deferred revenue236,349 225,855 
Total current liabilities538,071 540,640 
Non-Current Liabilities:
Long-term debt, net of deferred financing costs605,685 630,184 
Operating lease liabilities, non-current310,952 219,955 
Deferred tax liabilities, net24,070 23,518 
Other non-current liabilities43,544 56,332 
Total liabilities1,522,322 1,470,629 
Commitments and contingencies (see Note 9)
Deficit:
Class A Common Stock (a)
455 450 
Class B Common Stock (b)
69 69 
Additional paid-in-capital25,339 17,727 
Treasury stock at cost (4,365 and 840 shares outstanding as of December 31, 2023 and June 30, 2023, respectively)
(140,512)(25,000)
Retained earnings (deficit)45,881 (28,697)
Accumulated other comprehensive loss(33,279)(34,021)
Total deficit(102,047)(69,472)
Total liabilities and deficit$1,420,275 $1,401,157 
_________________
(a)    Class A Common Stock, $0.01 par value per share, 120,000 shares authorized; 45,487 and 45,024 shares issued as of December 31, 2023 and June 30, 2023, respectively.
(b)    Class B Common Stock, $0.01 par value per share, 30,000 shares authorized; 6,867 shares issued as of December 31, 2023 and June 30, 2023.
See accompanying notes to the unaudited condensed consolidated and combined financial statements.

2

MADISON SQUARE GARDEN ENTERTAINMENT CORP.
CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS (Unaudited)
(in thousands, except per share data)
Three Months EndedSix Months Ended
 December 31,December 31,
2023202220232022
Revenues (a)
$402,666 $355,880 $544,878 $502,332 
Direct operating expenses (a)
(202,761)(180,603)(304,438)(282,265)
Selling, general, and administrative expenses (a)
(48,389)(43,301)(97,211)(83,415)
Depreciation and amortization(13,205)(15,586)(26,789)(31,571)
Gains, net on dispositions— 4,412 — 4,412 
Restructuring charges(888)(7,359)(12,441)(7,359)
Operating income137,423 113,443 103,999 102,134 
Interest income (a)
1,083 1,812 1,935 3,322 
Interest expense(15,049)(13,205)(29,336)(24,632)
Other income (expense), net2,846 (2,172)(1,625)(1,286)
Income from operations before income taxes126,303 99,878 74,973 79,538 
Income tax expense(1,054)(2,797)(395)(731)
Net income125,249 97,081 74,578 78,807 
Less: Net loss attributable to nonredeemable noncontrolling interest— (181)— (553)
Net income attributable to MSG Entertainment’s stockholders$125,249 $97,262 $74,578 $79,360 
Income per share attributable to MSG Entertainment’s stockholders:
Basic$2.61 $1.88 $1.52 $1.53 
Diluted$2.59 $1.88 $1.52 $1.53 
Weighted-average number of shares of common stock:
Basic (b)
48,029 51,768 48,955 51,768 
Diluted (b)
48,293 51,768 49,168 51,768 
_________________
(a)    See Note 14. Related Party Transactions for further information on related party arrangements.
(b)    On April 20, 2023, 51,768 common shares were distributed to Sphere Entertainment Co. stockholders in the MSGE Distribution (as defined in Note 1. Description of Business and Basis of Presentation). This share amount is being utilized for the calculation of basic and diluted loss per common share attributable to Madison Square Garden Entertainment Corp.’s stockholders for the three and six months ended December 31, 2022 because the Company was not a standalone public company prior to the MSGE Distribution.




See accompanying notes to the unaudited condensed consolidated and combined financial statements.


3

MADISON SQUARE GARDEN ENTERTAINMENT CORP.
CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
(in thousands)
Three Months EndedSix Months Ended
December 31,December 31,
2023202220232022
Net income$125,249 $97,081 $74,578 $78,807 
Other comprehensive income, before income taxes:
Amortization of net actuarial gain included in net periodic benefit cost
662 371 899 742 
Other comprehensive income, before income taxes662 371 899 742 
Income tax expense (117)(65)(157)(131)
Other comprehensive income, net of income taxes
545 306 742 611 
Comprehensive income125,794 97,387 75,320 79,418 
Less: Comprehensive loss attributable to nonredeemable noncontrolling interest— (181)— (553)
Comprehensive income attributable to MSG Entertainment$125,794 $97,568 $75,320 $79,971 
 

See accompanying notes to the unaudited condensed consolidated and combined financial statements.
























4

MADISON SQUARE GARDEN ENTERTAINMENT CORP.
CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS (Unaudited)
(in thousands)
Six Months Ended
December 31,
20232022
OPERATING ACTIVITIES:
Net income$74,578 $78,807 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization26,789 31,571 
Share-based compensation expense20,738 16,258 
Deferred income tax expense394 — 
Provision for doubtful accounts305 — 
Amortization of deferred financing costs1,663 1,613 
Related party paid in kind interest(512)(1,804)
Net unrealized and realized loss on equity investments with readily determinable fair value
758 3,203 
Non-cash lease expense
6,755 6,756 
Gains, net on dispositions— (4,412)
Change in assets and liabilities:
Accounts receivable, net(38,362)1,987 
Related party receivables and payables, net
33,544 6,732 
Prepaid expenses and other current and non-current assets1,479 (5,591)
Accounts payable, accrued and other current, and non-current liabilities
(29,771)(44,140)
Deferred revenue10,494 (12,758)
Operating lease right-of-use assets and lease liabilities(3,620)(8,886)
Net cash provided by operating activities$105,232 $69,336 
INVESTING ACTIVITIES:
Capital expenditures(11,215)(9,208)
Proceeds from dispositions, net— 27,904 
Proceeds from sale of investments
13,484 3,694 
Loans to related parties
(65,000)— 
Net cash (used in) provided by investing activities
$(62,731)$22,390 
FINANCING ACTIVITIES:
Proceeds from revolving credit facility
73,000 — 
Principal repayments on long-term debt(98,225)— 
Repayments on related party loan, net
(305)— 
Payments for debt financing costs
(633)— 
Taxes paid in lieu of shares issued for equity-based compensation
(12,247)— 
Stock repurchases
(50,874)— 
Net transfers to Sphere Entertainment and Sphere Entertainment’s subsidiaries— (553)
Net cash used in financing activities$(89,284)$(553)
Net (decrease) increase in cash, cash equivalents, and restricted cash
(46,783)91,173 
Cash, cash equivalents, and restricted cash, beginning of period
84,355 62,573 
Cash, cash equivalents, and restricted cash, end of period
$37,572 $153,746 
Non-cash investing and financing activities:
Capital expenditures incurred but not yet paid or paid by landlord $12,858 $402 
Non-cash stock repurchases in lieu of payment of loan due from related parties
$65,512 $5,350 
See accompanying notes to the unaudited condensed consolidated and combined financial statements.

5


MADISON SQUARE GARDEN ENTERTAINMENT CORP.
CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF (DEFICIT) EQUITY (Unaudited)
(in thousands)
Common Stock
Sphere Entertainment Co. Investment
Additional
Paid-
Capital
Treasury
Stock
Retained Earnings (Deficit)
Accumulated Other Comprehensive Loss
Total Madison Square Garden Entertainment Corp. Stockholders’
(Deficit) Equity
Nonredeemable
Noncontrolling
Interest
Total (Deficit) Equity
Balance as of September 30, 2023$523 $— $17,980 $(140,512)$(79,368)$(33,824)$(235,201)$— $(235,201)
Net income— — — — 125,249 — 125,249 — 125,249 
Other comprehensive income
— — — — — 545 545 — 545 
Comprehensive income— — — — — — 125,794 — 125,794 
Share-based compensation
— — 7,773 — — — 7,773 — 7,773 
Tax withholding associated with shares issued for share-based compensation1 — (414)— — — (413)— (413)
Balance as of December 31, 2023$524 $— $25,339 $(140,512)$45,881 $(33,279)$(102,047)$— $(102,047)
Balance as of September 30, 2022$— $124,746 $— $— $— $(34,435)$90,311 $(486)$89,825 
Net income— 97,262 — — — — 97,262 (181)97,081 
Other comprehensive income— — — — — 306 306 — 306 
BCE Disposition— — — — — — — 667 667 
Comprehensive income— — — — — — 97,568 486 98,054 
Net decrease in Sphere Entertainment Co. Investment— (88,990)— — — — (88,990)— (88,990)
Balance as of December 31, 2022$— $133,018 $— $— $— $(34,129)$98,889 $— $98,889 

6

Common Stock
Sphere Entertainment Co. Investment
Additional
Paid-
Capital
Treasury
Stock
Retained Earnings (Deficit)
Accumulated Other Comprehensive Loss
Total Madison Square Garden Entertainment Corp. Stockholders’
(Deficit) Equity
Nonredeemable
Noncontrolling
Interest
Total (Deficit) Equity
Balance as of June 30, 2023$519 $— $17,727 $(25,000)$(28,697)$(34,021)$(69,472)$— $(69,472)
Net income— — — — 74,578 — 74,578 — 74,578 
Other comprehensive income
— — — — — 742 742 — 742 
Comprehensive income— — — — — — 75,320 — 75,320 
Share-based compensation
— — 20,738 — — — 20,738 — 20,738 
Tax withholding associated with shares issued for share-based compensation5 — (12,252)— — — (12,247)— (12,247)
Stock repurchases, inclusive of tax
— — (874)(115,512)— — (116,386)— (116,386)
Balance as of December 31, 2023$524 $— $25,339 $(140,512)$45,881 $(33,279)$(102,047)$— $(102,047)
Balance as of June 30, 2022$— $33,265 $— $— $— $(34,740)$(1,475)$(114)$(1,589)
Net income— 79,360 — — — — 79,360 (553)78,807 
Other comprehensive income— — — — — 611 611 — 611 
BCE disposition— — — — — — — 667 667 
Comprehensive income— — — — — — 79,971 114 80,085 
Net increase in Sphere Entertainment Co. Investment
— 20,393 — — — — 20,393 — 20,393 
Balance as of December 31, 2022$— $133,018 $— $— $— $(34,129)$98,889 $— $98,889 


See accompanying notes to the unaudited condensed consolidated and combined financial statements.


7
MADISON SQUARE GARDEN ENTERTAINMENT CORP.
NOTES TO CONDENSED CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS (UNAUDITED)
All amounts included in the following Notes to Condensed Consolidated and Combined 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 (the “MSGE Distribution Date”), 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 “MSGE Distribution”), with Sphere Entertainment retaining approximately 33% of the outstanding common stock of the Company in the form of Class A common stock (“Class A Common Stock”) immediately following the MSGE Distribution. As a result, the Company became an independent publicly traded company on April 21, 2023 through the MSGE Distribution. 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, 2023 and 2022 and for the three years ended June 30, 2023, 2022 and 2021 (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, 2023 filed on August 18, 2023 (the “2023 Form 10-K”) for more information regarding the MSGE Distribution.
Basis of Presentation
The Company reports on a fiscal year basis ending on June 30th (“Fiscal Year”). In these unaudited condensed consolidated and combined financial statements, the years ending and ended on June 30, 2024 and 2023, respectively, are referred to as “Fiscal Year 2024” and “Fiscal Year 2023,” 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 Securities and Exchange Commission (“SEC”), and should be read in conjunction with the Company’s Audited Consolidated and Combined Annual Financial Statements.
Subsequent to the MSGE Distribution, the Company’s balance sheets as of December 31, 2023 and June 30, 2023 and for the statement of operations for the three and six months ended December 31, 2023 are presented on a consolidated basis, as the Company became a standalone public company on April 21, 2023. The Company’s financial statements prior to April 21, 2023 that are included in the results of operations for the three and six months ended December 31, 2022 were prepared on a stand-alone basis derived from the consolidated financial statements and accounting records of Sphere Entertainment. These financial statements reflect the combined historical results of operations, financial position and cash flows of the Company in accordance with GAAP and SEC Staff Accounting Bulletin Topic 1-B, Allocation of Expenses and Related Disclosure in Financial Statements of Subsidiaries, Divisions or Lesser Business Components of Another Entity, and Article 10 of Regulation S-X of the SEC for interim financial information. References to GAAP issued by the Financial Accounting Standards Board (“FASB”) in these footnotes are to the FASB Accounting Standards Codification, also referred to as “ASC.”
Management believes the assumptions underlying the combined financial statements, including the assumptions regarding allocating general corporate expenses, are reasonable. Nevertheless, the combined financial statements may not include all of the actual expenses that would have been incurred by the Company and may not reflect its combined results of operations, financial position and cash flows had it been a stand-alone company during the periods presented on a combined basis. Actual costs that would have been incurred if the Company had been a stand-alone company would depend on multiple factors, including organizational structure and strategic decisions made in various areas, including information technology and infrastructure. The Company is unable to quantify the amounts that it would have recorded during the historical periods on a stand-alone basis. See Note 17. Related Party Transactions to the 2023 Form 10-K for further details regarding allocations of certain costs from the Company to Sphere Entertainment.



8
MADISON SQUARE GARDEN ENTERTAINMENT CORP.
NOTES TO CONDENSED CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS (UNAUDITED)
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 December 31, 2023 and its results of operations for the three and six months ended December 31, 2023 and 2022 and cash flows for the six months ended December 31, 2023, and 2022. The condensed consolidated balance sheets were derived from the Audited Consolidated and Combined Annual Financial Statements but do 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 (the “NBA”) and the New York Rangers (the “Rangers”) of the National Hockey League (the “NHL”), 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.
Note 2. Summary of Significant Accounting Policies
A. Principles of Consolidation and Combination
All significant intracompany accounts and balances within the Company’s consolidated businesses have been eliminated.
For the periods prior to the MSGE Distribution Date, the combined financial statements include certain assets and liabilities that were historically held at Sphere Entertainment’s corporate level but were specifically identifiable or otherwise attributable to the Company. Certain historical intercompany transactions between Sphere Entertainment and the Company have been included as components of Sphere Entertainment’s investment in the condensed consolidated and combined financial statements, as they are considered to be effectively settled upon effectiveness of the MSGE Distribution and were not historically settled in cash. Certain other historical intercompany transactions between Sphere Entertainment and the Company have been classified as related party, rather than intercompany, in the condensed consolidated and combined financial statements as they were historically settled in cash. Expenses related to corporate allocations from the Company to Sphere Entertainment prior to the MSGE Distribution are considered to be effectively settled in the condensed consolidated and combined financial statements at the time the transaction is recorded, with the offset recorded against Sphere Entertainment’s investment. See Note 14. Related Party Transactions, for further information on related party arrangements.
The Company disposed of its controlling interest in Boston Calling Events, LLC on December 2, 2022 (the “BCE Disposition”) and these condensed consolidated and combined financial statements reflect the results of operations of BCE until the BCE Disposition. See Note 3. Dispositions for further information on the BCE disposition.
B. Use of Estimates
The preparation of the accompanying condensed consolidated and combined financial statements in conformity with GAAP requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the 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. Recently Issued and Adopted Accounting Pronouncements

Recently Issued Accounting Pronouncements
In November 2023, the FASB issued Accounting Standards Update (“ASU”) No. 2023-07, Improvement to Reportable Segment



9
MADISON SQUARE GARDEN ENTERTAINMENT CORP.
NOTES TO CONDENSED CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS (UNAUDITED)
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 in Fiscal Year 2025 and is required to be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact of the additional disclosure requirements on the Company’s condensed consolidated and combined 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 useful in making capital allocation decisions. 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 condensed consolidated and combined financial statements.
Note 3. Dispositions
The Company has not had any dispositions during Fiscal Year 2024.
Disposition of Our Interest in Boston Calling Events
The Company entered into an agreement on December 1, 2022 to sell its controlling interest in BCE. The transaction closed on December 2, 2022, resulting in a total gain on sale of $8,744, net of transaction costs. BCE meets the definition of a business under SEC Regulation S-X Rule 11-01(d)-1 and FASB ASC Topic 805 — Business Combinations. The BCE Disposition did not represent a strategic shift with a major effect on the Company’s operations, and as such, has not been reflected as a discontinued operation under FASB ASC Subtopic 205-20 — Discontinued Operations. The gain on the BCE Disposition was recorded in Gains, net on dispositions in the condensed combined statements of operations.
Disposition of Corporate Aircraft
On December 30, 2022, the Company sold its owned aircraft for $20,375. In connection with the sale, the Company recognized a loss of $4,383, net of transaction costs. The loss on the aircraft disposition was recorded in Gains, net on dispositions in the condensed combined statements of operations.
Note 4. Revenue Recognition
Contracts with Customers
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 more information regarding the details of the Company’s revenue recognition policies. All revenue recognized in the condensed consolidated and combined statements of operations is considered to be revenue from contracts with customers in accordance with ASC Topic 606, Revenue From Contracts with Customers, except for revenues from the arena license agreements that require the Knicks and the Rangers to play their home games at The Garden (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 transfer of goods or services to the customer for the three and six months ended December 31, 2023 and 2022:
Three Months EndedSix Months Ended
December 31,December 31,
2023202220232022
Event-related and entertainment offerings (a)
$297,462 $238,888 $393,226 $341,678 
Sponsorship, signage, and suite licenses (b)
70,000 68,996 113,494 107,389 
Other (c)
9,575 15,347 10,083 18,462 
Total revenues from contracts with customers
377,037 323,231 516,803 467,529 
Revenues from Arena License Agreements, leases, and subleases
25,629 32,649 28,075 34,803 
Total revenues
$402,666 $355,880 $544,878 $502,332 
_________________
(a)    Event-related and entertainment offerings revenues are recognized at a point in time.



10
MADISON SQUARE GARDEN ENTERTAINMENT CORP.
NOTES TO CONDENSED CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS (UNAUDITED)
(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 with Madison Square Garden Sports Corp. (together with its subsidiaries, as applicable, “MSG Sports”) and (ii) advertising commission revenues recognized under the advertising sales representation agreement (the “Networks Advertising Sales Representation Agreement”) between the Company and Sphere Entertainment’s subsidiary, MSGN Holdings, L.P. (“MSG Networks”). The Networks Advertising Sales Representation Agreement was terminated as of December 31, 2022.
In addition to the disaggregation of the Company’s revenue by major source based upon the timing of transfer of goods or services to the customer disclosed above, the following table disaggregates the Company’s revenues by type of goods or services in accordance with the required entity-wide disclosure requirements of ASC Subtopic 280-10-50-38 to 40, Segment Reporting, and the disaggregation of revenue required disclosures in accordance with ASC Subtopic 606-10-50-5, Revenue From Contracts with Customers-Overall-Disclosures, for the three and six months ended December 31, 2023 and 2022.

Three Months Ended
Six Months Ended
December 31,December 31,
2023202220232022
Ticketing and venue license fee revenues (a)
$222,341 $173,725 $287,509 $245,857 
Sponsorship and signage, suite, and advertising commission revenues (b)
87,441 92,174 134,004 137,308 
Food, beverage, and merchandise revenues
63,797 55,387 89,900 81,690 
Other3,458 1,945 5,390 2,674 
Total revenues from contracts with customers
377,037 323,231 516,803 467,529 
Revenues from Arena License Agreements, leases, and subleases
25,629 32,649 28,075 34,803 
Total revenues
$402,666 $355,880 $544,878 $502,332 
_________________
(a)    Amounts include ticket sales, including other ticket-related revenue, and venue license fees from the Company’s events such as (i) concerts, (ii) the presentation of the Christmas Spectacular and (iii) other live entertainment and sporting events.
(b)    Amounts include (i) revenues from sponsorship sales and representation agreements with MSG Sports and (ii) advertising commission revenues from MSG Networks until the termination of the Networks Advertising Sales Representation Agreement as of December 31, 2022.
Contract Balances
The following table provides information about the opening and closing contract balances from the Company’s contracts with customers as of December 31, 2023 and June 30, 2023:
As of
December 31,
2023		June 30,
2023
Receivables from contracts with customers, net (a)
$100,831 $69,295 
Contract assets, current (b)
$7,889 $11,254 
Deferred revenue, including non-current portion (c)
$236,349 $226,029 
    ________________
(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 December 31, 2023 and June 30, 2023, the Company’s receivables from contracts with customers above included $3,814 and $5,397, respectively, related to various related parties. See Note 14. 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 and six months ended December 31, 2023 relating to the deferred revenue balance as of June 30, 2023 was $65,980 and $135,710, respectively.
Transaction Price Allocated to the Remaining Performance Obligations
As of December 31, 2023, the Company’s remaining performance obligations under contracts were approximately $555,000, of which 49% is expected to be recognized over the next two years and an additional 36% of the balance is expected to be recognized in the following two years. 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



11
MADISON SQUARE GARDEN ENTERTAINMENT CORP.
NOTES TO CONDENSED CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS (UNAUDITED)
that have original expected durations of one year or less.
Note 5. Restructuring Charges
During the six months ended December 31, 2023, the Company recorded restructuring charges related to termination benefits for certain corporate executives and employees. The Company recorded restructuring charges of $888 and $12,441 for the three and six months ended December 31, 2023, respectively, inclusive of $0 and $6,788, respectively, of share-based compensation expenses, which are accrued in accounts payable, accrued and other current liabilities and additional paid-in capital on the condensed consolidated balance sheet. The Company recorded restructuring charges of $7,359, net of contributory credits from the Company to Sphere Entertainment for the Company’s corporate employees, during the three and six months ended December 31, 2022. Changes to the Company’s restructuring liability through December 31, 2023 were as follows:
Restructuring Liability
June 30, 2023
$2,530 
Restructuring charges (excluding share-based compensation expense)
8,458 
Payments
(2,476)
December 31, 2023$8,512 
Note 6. Equity Investments With Readily Determinable Fair Value
As of December 31, 2023, the Company held an investment in Townsquare Media, Inc. (“Townsquare”) and as of June 30, 2023, also held an investment in DraftKings Inc. (“DraftKings”), which was subsequently 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.”
The fair value of the Company’s investments in Class A common stock of Townsquare and Class A common stock of DraftKings is 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. As a holder of Class C common stock of Townsquare, the Company is entitled to convert at any time all or any part of the Company’s shares into an equal number of shares of Class A common stock of Townsquare, subject to restrictions set forth in Townsquare’s certificate of incorporation. Therefore, the fair value of the Company’s investment in Class C common stock of Townsquare is also determined based on the quoted market price in an active market on the NYSE, which is classified as Level I of the fair value hierarchy.
The carrying fair value of these investments, which is reported under Other non-current assets in the accompanying condensed consolidated balance sheets as of December 31, 2023 and June 30, 2023, is as follows:
As of
December 31,
2023		June 30,
2023
Townsquare Class A common stock$6,158 $6,945 
Townsquare Class C common stock11,880 13,399 
DraftKings Class A common stock
— 11,297 
Total Equity Investments with Readily Determinable Fair Value$18,038 $31,641 



12
MADISON SQUARE GARDEN ENTERTAINMENT CORP.
NOTES TO CONDENSED CONSOLIDATED AND COMBINED 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 (expenses), net for the three and six months ended December 31, 2023 and 2022:
Three Months EndedSix Months Ended
December 31,December 31,
2023202220232022
Unrealized gain (loss) — Townsquare$3,143 $(32)$(2,306)$(3,015)
Unrealized loss — DraftKings— (2,512)— (188)
Gain from shares sold — DraftKings— — 1,548 1,489 
Total realized and unrealized gain (loss)
$3,143 $(2,544)$(758)$(1,714)
Supplemental information on realized gain:
Shares of common stock sold — DraftKings— — 425 200 
Cash proceeds from common stock sold — DraftKings$— $— $12,844 $3,819 
Note 7. Property and Equipment, Net
As of December 31, 2023 and June 30, 2023, property and equipment, net consisted of the following:
As of
December 31,
2023		June 30,
2023
Land$62,768 $62,768 
Buildings1,008,051 999,205 
Equipment, furniture, and fixtures
355,909 351,596 
Leasehold improvements105,877 105,877 
Construction in progress (a)
13,734 2,828 
Total Property and equipment$1,546,339 $1,522,274 
Less: accumulated depreciation and amortization
(920,167)(893,386)
Property and equipment, net$626,172 $628,888 
_________________
(a)    In October 2023, the Company took possession of certain floors in the New York corporate office space and will be relocating from the space that the Company currently occupies to newly renovated office space within the same building. The Company was not involved in the design or construction of the new space for purposes of the Company’s build out prior to obtaining possession. The increase in construction in progress primarily relates to these build out costs incurred after possession. Upon obtaining possession of the space, the Company recognized an additional lease obligation of $96,334 and a right-of-use lease asset of $88,602, net of tenant improvement incentives received on possession date. While lease payments under the new lease agreement will be recognized as a lease expense on a straight-line basis over the lease term, the Company will begin paying full rent starting in the second half of Fiscal Year 2026 due to certain tenant incentives included in the arrangement. Base rent payments will increase every five years beginning in Fiscal Year 2031 in accordance with the terms of the lease.
The Company recorded depreciation expense on property and equipment of $13,205 and $26,789 for the three and six months ended December 31, 2023 and $15,281 and $30,817 for the three and six months ended December 31, 2022, respectively, which is recognized in Depreciation and amortization in the condensed consolidated and combined statements of operations.
Note 8. Goodwill and Intangible Assets
As of December 31, 2023 and June 30, 2023, the carrying amount of goodwill was $69,041.
The Company’s indefinite-lived intangible assets as of December 31, 2023 and June 30, 2023 were as follows:
As of
December 31,
2023		June 30,
2023
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 2024, the Company performed its annual 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 AND COMBINED FINANCIAL STATEMENTS (UNAUDITED)
No amortization expense was recognized in the three and six months ended December 31, 2023 for definite lived intangible assets. The Company recorded amortization expense on definite lived intangible assets of $305 and $754 for the three and six months ended December 31, 2022, respectively, which is recognized in Depreciation and amortization in the condensed consolidated and combined statements of operations.
Note 9. 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, 2023 included a total of $926,466 (primarily related to contractual obligations).
During the six months ended December 31, 2023, 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 10. 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. Stockholders’ Equity) 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 10. 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 and other debt agreements as of December 31, 2023 and June 30, 2023:

As of
December 31,
2023		June 30,
2023
Current Portion
National Properties Term Loan Facility
$16,250 $16,250 
Current portion of long-term debt
$16,250 $16,250 

14
MADISON SQUARE GARDEN ENTERTAINMENT CORP.
NOTES TO CONDENSED CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS (UNAUDITED)
As of
December 31, 2023June 30, 2023
PrincipalUnamortized Deferred Financing CostsNetPrincipalUnamortized Deferred Financing CostsNet
Non-current Portion
National Properties Term Loan Facility
$617,500 $(11,228)$606,272 $625,625 $(12,845)$612,780 
National Properties Revolving Credit Facility
— (587)(587)17,100 — 17,100 
Other debt
— — — 304 — 304 
Long-term debt, net of deferred financing costs
$617,500 $(11,815)$605,685 $643,029 $(12,845)$630,184 
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, $100,000 revolving credit facility (the “National Properties Revolving Credit Facility” and, together with the National Properties Term Loan Facility, the “National Properties Facilities”). On September 15, 2023, the National Properties Credit Agreement was amended to, among other things, increase the National Properties Revolving Credit Facility by $50,000 to $150,000. Up to $25,000 of the National Properties Revolving Credit Facility is available for the issuance of letters of credit. As of December 31, 2023, outstanding letters of credit were $17,591 and the remaining balance available under the National Properties Revolving Credit Facility was $132,409.
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 (the “National Properties Base Rate”), 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 SOFR Rate”). 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 December 31, 2023 was 8.46%.
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 ending 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 is set at a ratio of 2:1 before stepping up to 2.5:1 in the fiscal quarter ending 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, stepping down to 5.5:1 in the fiscal quarter ending June 30, 2024 and 4.5:1 in the fiscal quarter ending June 30, 2026. As of December 31, 2023, MSG National Properties and its restricted subsidiaries were in compliance with the covenants of the National Properties Credit Agreement.



15
MADISON SQUARE GARDEN ENTERTAINMENT CORP.
NOTES TO CONDENSED CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS (UNAUDITED)
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 PaymentsLoan Principal Repayments
Six Months EndedSix Months Ended
December 31,December 31,
2023202220232022
National Properties Facilities
$27,424 $22,410 $98,225 $— 
The carrying value and fair value of the Company’s debt reported in the accompanying condensed consolidated balance sheets were as follows:
As of
December 31, 2023June 30, 2023
Carrying
Value (a)
Fair
Value
Carrying
Value (a)
Fair
Value
Liabilities:
National Properties Facilities
$633,750 $630,581 $658,975 $655,509 
Other debt— — 304 304 
Total Long-term debt$633,750 $630,581 $659,279 $655,813 
________________
(a)    The total carrying value of the Company’s debt as of December 31, 2023 and June 30, 2023 is equal to the current and non-current principal payments for the Company’s credit agreements excluding unamortized deferred financing costs of $11,815 and $12,845, 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 11. Pension Plans and Other Postretirement Benefit Plans
Prior to the MSGE Distribution, Sphere Entertainment sponsored both funded and unfunded and qualified and non-qualified defined benefit plans (the “Pension Plans”), as well as a postretirement benefit plan (the “Postretirement Plan”), covering certain full-time employees and retirees of the Company. In connection with the MSGE Distribution, the sponsorship of the Pension Plans and Postretirement Plan was transferred to the Company. 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, together with associated excess savings plan, and the Madison Square Garden 401(k) Union Plan.



16
MADISON SQUARE GARDEN ENTERTAINMENT CORP.
NOTES TO CONDENSED CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS (UNAUDITED)
Defined Benefit Pension Plans and Other Postretirement Benefit Plans
The following table presents components of net periodic benefit cost (benefit) for the Pension Plans and Postretirement Plan included in the accompanying condensed consolidated and combined statements of operations for the three and six months ended December 31, 2023 and 2022. Service cost is recognized in direct operating expenses and selling, general and administrative expenses. All other components of net periodic benefit cost (benefit) are reported in Other income (expense), net.
Pension PlansPostretirement Plan
Three Months EndedThree Months Ended
December 31,December 31,
2023202220232022
Service cost$17 $30 $6 $8 
Interest cost1,469 927 24 11 
Expected return on plan assets(1,091)(1,504)— — 
Recognized actuarial loss662 330 — 9 
Net periodic cost (benefit)
$1,057 $(217)$30 $28 
Pension PlansPostretirement Plan
Six Months EndedSix Months Ended
December 31,December 31,
2023202220232022
Service cost$34 $60 $12 $16 
Interest cost2,938 1,854 48 22 
Expected return on plan assets(2,182)(3,008)— — 
Recognized actuarial loss899 692 — 18 
Net periodic cost (benefit)
$1,689 $(402)$60 $56 
Contributions for Qualified Defined Benefit Pension Plans
During the three and six months ended December 31, 2023, the Company contributed $0 and $12,250 to the Cash Balance Pension Plan, which is reported under Non-current liabilities in the accompanying condensed consolidated balance sheets as of December 31, 2023.
Defined Contribution Plans
For the three and six months ended December 31, 2023 and 2022, expenses related to the Savings Plans and Union Savings Plan included in the accompanying condensed consolidated and combined statements of operations are as follows:
Three Months EndedSix Months Ended
December 31,December 31,
2023202220232022
Savings Plans$2,265 $1,008 $4,299 $2,186 
Union Savings Plan$82 $20 $132 $38 
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 $343 and $198 for the three and six months ended December 31, 2023, respectively, and $160 and $6 for the three and six months ended December 31, 2022, respectively, within Selling, general, and administrative expenses to reflect the remeasurement of the Deferred Compensation Plan liability. In addition, the Company recorded gains of $343 and $198 for the three and six months ended December 31, 2023 and $160 and $6 for the three and six months ended December 31, 2022, respectively, within Other income (expense), net to reflect remeasurement of the fair value of assets under the Deferred Compensation Plan.



17
MADISON SQUARE GARDEN ENTERTAINMENT CORP.
NOTES TO CONDENSED CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS (UNAUDITED)
The following table summarizes amounts recognized related to the Deferred Compensation Plan in the condensed consolidated and combined balance sheets:
As of
December 31,
2023		June 30,
2023
Non-current assets (included in Other non-current assets)
$4,322 $2,954 
Non-current liabilities (included in Other non-current liabilities)
$(4,344)$(2,976)

Note 12. 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 and combined statements of operations as a component of direct operating expenses or selling, general, and administrative expenses. The share-based compensation expense recorded by the Company in Fiscal Year 2023 includes the expenses associated with the employees attributable to the Company, net of contributory credits from the Company to Sphere Entertainment for the Company’s corporate employees. The following table summarizes the Company’s share-based compensation expense:
Three Months EndedSix Months Ended
December 31,December 31,
2023202220232022
Share-based compensation expense (a)
$7,773 $6,555 $13,950 $13,965 
Fair value of awards vested (b)
$2,750 $— $29,150 $2,867 
________________
(a)    The expense shown excludes $0 and $6,788 for the three and six months ended December 31, 2023, respectively, and $2,293 for both the three and six months ended December 31, 2022, that was reclassified to Restructuring charges in the condensed consolidated and combined statements of operations as detailed in Note 5. Restructuring 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 $412 and $12,229, and $0 and $1,147 were retained by the Company during the three and six months ended December 31, 2023 and 2022, respectively.

For the three and six months ended December 31, 2023, weighted-average shares used in the calculation for diluted earnings per share (“EPS”) consisted of 48,293 and 49,168 weighted-average shares of Class A Common Stock for basic EPS, respectively, and the dilutive effect of 264 and 213 shares of Class A Common Stock issuable, respectively, under share-based compensation plans. For the three and six months ended December 31, 2023, weighted-average anti-dilutive shares primarily consisted of approximately 727 and 740 RSUs and stock options, respectively, and were excluded in the calculation of diluted EPS because their effect would have been anti-dilutive.

On April 20, 2023, 51,768 shares of Class A Common Stock were distributed to Sphere Entertainment stockholders in the MSGE Distribution. This share amount is being utilized for the calculation of basic and diluted loss per share of Class A Common Stock attributable to the Company’s stockholders for the three and six months ended December 31, 2022 because the Company was not a standalone public company prior to the MSGE Distribution.
As of December 31, 2023, there was $46,564 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 2.1 years.
Award Activity
RSUs
During the six months ended December 31, 2023 and December 31, 2022, 620 and 66 RSUs were granted and 624 and 40 RSUs vested, respectively.
PSUs
During the six months ended December 31, 2023 and December 31, 2022, 506 and 60 PSUs were granted and 273 and 11 PSUs vested, respectively.



18
MADISON SQUARE GARDEN ENTERTAINMENT CORP.
NOTES TO CONDENSED CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS (UNAUDITED)
Note 13. Stockholders’ Equity
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. For the six months ended December 31, 2023, the Company repurchased 3,525 shares of Class A Common Stock for $115,512. As of December 31, 2023, the Company had approximately $110,000 remaining available for repurchases.
Accumulated Other Comprehensive Loss
The following table details the components of accumulated other comprehensive loss:
Pension Plans and Postretirement Plan
Three Months EndedSix Months Ended
December 31,December 31,
2023202220232022
Balance at beginning of period$(33,824)$(34,435)$(34,021)$(34,740)
Other comprehensive income:
Amounts reclassified from accumulated other comprehensive loss (a)
662 371 899 742 
Income tax expense(117)(65)(157)(131)
Other comprehensive income, net of income taxes
545 306 742 611 
Balance at end of period$(33,279)$(34,129)$(33,279)$(34,129)
________________
(a)    Amounts reclassified from accumulated other comprehensive loss represent the amortization of net actuarial loss included in net periodic benefit cost, which is reflected under Other income (expense), net in the accompanying condensed consolidated and combined statements of operations (see Note 11. Pension Plans and Other Postretirement Benefit Plans).
Note 14. Related Party Transactions
As of December 31, 2023, members of the Dolan family, for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, 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 and approximately 4.8% of the Company’s outstanding Class A Common Stock (inclusive of options exercisable within 60 days of December 31, 2023). Such shares of Class A Common Stock and Class B Common Stock, collectively, represent approximately 64% 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.
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 MSGE Distribution. Pursuant to this arrangement, the Company recognized $0 and $34 of expense for the three and six months ended December 31, 2023, respectively, and $65 and $135 of expense for the three and six months ended December 31, 2022, respectively. 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.
During Fiscal Year 2023 and the first quarter of Fiscal Year 2024, MSG Sports made market rate interest-bearing advances to the Company in connection with the construction of new premium hospitality suites at The Garden. The advances were fully repaid (including interest) in the second quarter of Fiscal Year 2024. As of December 31, 2023 and June 30, 2023, the other debt balance was $0 and $304, respectively.



19
MADISON SQUARE GARDEN ENTERTAINMENT CORP.
NOTES TO CONDENSED CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS (UNAUDITED)
Subsequent to June 30, 2023, the Company entered into arrangements with (i) MSG Sports, pursuant to which MSG Sports provides certain sponsorship, premium hospitality and other business operations services to the Company in exchange for service fees, (ii) Sphere Entertainment, pursuant to which the Company provides certain sponsorship account management services to Sphere Entertainment in exchange for service fees, and (iii) MSG Sports and Sphere Entertainment, pursuant to which the three companies have agreed to allocate expenses in connection with the use by each company of aircraft owned or leased by the Company and MSG Sports.
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 and combined statements of operations for the three and six months ended December 31, 2023 and 2022:
Three MonthsSix Months Ended
December 31,December 31,
2023202220232022
Revenues$33,630 $49,630 $38,789 $55,188 
Operating expenses (credits):
Revenue sharing expenses$6,315 $7,099 $7,467 $8,286 
Reimbursement under Arena License Arrangements(7,878)(9,357)(8,307)(9,850)
Cost reimbursement from MSG Sports(9,527)(9,475)(19,388)(18,992)
Cost reimbursement from Sphere Entertainment (after April 20, 2023) and Corporate allocations to Sphere Entertainment (before April 20, 2023)(26,341)(38,219)(56,677)(73,967)
Other operating expenses, net2,142 2,460 2,695 3,355 
Total operating expenses (credits), net (a)
$(35,289)$(47,492)$(74,210)$(91,168)
_________________
(a)    Of the total operating expenses (credits), net, $1,246 and $2,556 for the three and six months ended December 31, 2023 and $(901) and $(525) for the three and six months ended December 31, 2022, respectively, are included in direct operating expenses in the accompanying condensed consolidated and combined statements of operations, and $(36,535) and $(76,766) for the three and six months ended December 31, 2023 and $(46,591) and $(90,643) for the three and six months ended December 31, 2022, respectively, are included in selling, general, and administrative expenses.
Revenues
The Company recorded $24,529 and $25,853 of revenues under the Arena License Agreements for the three and six months ended December 31, 2023. In addition to the Arena License Agreements, during the three and six months ended December 31, 2023, the Company’s revenues from related parties primarily reflected sponsorship sales and service representation agreements of $5,506 and $8,269, and merchandise sharing revenues of $2,102 and $2,298, respectively, with MSG Sports. The Company also earned sublease revenue from related parties of $738 and $1,497 during the three and six months ended December 31, 2023, respectively.
The Company recorded $31,825 and $33,149 of revenues under the Arena License Agreements for the three and six months ended December 31, 2022. In addition, during the three and six months ended December 31, 2022 the Company recorded revenues under sponsorship sales and service representation agreements of $6,031 and $8,564, and merchandise sharing revenues of $2,176 and $2,291, respectively, with MSG Sports. The Company recorded revenues under the Networks Advertising Sales Representation Agreement of $8,424 and $8,802 for the three and six months ended December 31, 2022, respectively. The Networks Advertising Sales Representation Agreement was terminated effective as of December 31, 2022. As a result, after December 31, 2022, the Company no longer recognizes advertising sales commission revenue or the employee costs related to the Networks Advertising Sales Representation Agreement. The Company also earned sublease revenue from related parties of $527 and $1,222 during the three and six months ended December 31, 2022.



20
MADISON SQUARE GARDEN ENTERTAINMENT CORP.
NOTES TO CONDENSED CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS (UNAUDITED)
Other Related Party Matters
Loans Receivable from Sphere Entertainment
Prior to the MSGE Distribution, the Company’s captive insurance entity, Eden Insurance Company, Inc. (“Eden”), entered into a loan agreement with Sphere Entertainment (the “Eden Loan Agreement”), under which Eden granted Sphere Entertainment an unsecured loan bearing interest at a rate of SOFR plus 350 basis points with a principal amount not exceeding $60,000. This loan was in the form of a demand promissory note, payable immediately upon order from Eden. The loan payable to the Company held by Sphere Entertainment under the Eden Loan Agreement was assigned by Sphere Entertainment to the Company in connection with the MSGE Distribution, and has been eliminated in consolidation by the Company for periods subsequent to the MSGE Distribution.
During Fiscal Year 2023, Eden declared and paid dividends to Sphere Entertainment through a reduction of the loan receivable from Sphere Entertainment. During Fiscal Year 2023, no interest or principal payments were received by Eden. Instead, the accrued but unpaid interest was added to the outstanding principal amount of the loan. The cash flows related to this loan receivable for periods prior to the MSGE Distribution are reflected as investing activities, as these balances represent amounts loaned by the Company to Sphere Entertainment. The Company recorded related party interest income of $0, and $0 related to the Eden Loan Agreement in the three and six months ended December 31, 2023 and $902 and $1,804 in the three and six months ended December 31, 2022, respectively.
Note 15. Additional Financial Information
The following table provides a summary of the amounts recorded as cash, cash equivalents, and restricted cash:
As of
December 31,
2023		June 30,
2023
Cash and cash equivalents$35,229 $76,089 
Restricted cash2,343 8,266 
Total cash, cash equivalents, and restricted cash
$37,572 $84,355 
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
December 31,
2023		June 30,
2023
Prepaid expenses$52,595 $58,588 
Current contract assets7,889 11,254 
Inventory (a)
4,815 2,557 
Other4,109 5,163 
Total prepaid expenses and other current assets$69,408 $77,562 
_________________
(a)    Inventory is mostly comprised of food and liquor for venues.
Other non-current assets consisted of the following:
As of
December 31,
2023		June 30,
2023
Unbilled lease receivable (a)
$71,793 $67,325 
Equity investments with readily determinable fair value (b)
18,038 31,641 
Deferred costs4,254 4,120 
Other6,704 5,270 
Total other non-current assets$100,789 $108,356 
_________________
(a)    Unbilled lease receivable relates to the amounts recorded under the Arena License Agreement.



21
MADISON SQUARE GARDEN ENTERTAINMENT CORP.
NOTES TO CONDENSED CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS (UNAUDITED)
(b)     See Note 6. Equity investments with readily determinable fair value for more information on long-term investments.
Accounts payable, accrued and other current liabilities consisted of the following:
As of
December 31,
2023		June 30,
2023
Accounts payable$34,676 $15,628 
Accrued payroll and employee related liabilities50,566 64,532 
Cash due to promoters56,862 90,538 
Accrued expenses55,152 44,027 
Total accounts payable, accrued and other current liabilities$197,256 $214,725 
Other income (expense), net includes the following:
Three Months EndedSix Months Ended
December 31,December 31,
2023202220232022
Gains from shares sold — DraftKings$— $— $1,548 $1,489 
Net unrealized gains (loss) on equity investments with readily determinable fair value
3,143 (2,544)(2,306)(3,203)
Other(297)372 (867)428 
Total other income (expense), net
$2,846 $(2,172)$(1,625)$(1,286)
Income Taxes
During the six months ended December 31, 2023, the Company made income tax payments of $58. During the six months ended December 31, 2022, the Company received income tax refunds, net of payments, of $2,031.



22

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 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;
•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;
•the effect of any postponements or cancellations by third-parties or the Company as a result of a pandemic or other public health emergency due to operational challenges and other health and safety concerns (such as the partial cancellation of the 2021 production of the Christmas Spectacular);
•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;
•activities or other developments (such as pandemics, including the COVID-19 pandemic) that discourage or may discourage congregation at prominent places of public assembly, including our venues;
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•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 MSGE Distribution (as defined below);
•our ability to achieve the intended benefits of the MSGE 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 MSGE Distribution;
•lack of operating history as a stand-alone public company and costs associated with being an independent public company;
•our status as an emerging growth company; and
•the additional factors described under “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended June 30, 2023 filed on August 18, 2023 (the “2023 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, 2023 and 2022 and for the three years ended June 30, 2023, 2022 and 2021 (“Audited Consolidated and Combined Annual Financial Statements”) included in the 2023 Form 10-K, to help provide an understanding of our financial condition, changes in financial condition and results of operations.
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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 (the “MSGE Distribution Date”), Sphere Entertainment distributed approximately 67% of the outstanding common stock of the Company to its stockholders (the “MSGE Distribution”), with Sphere Entertainment retaining approximately 33% of the outstanding common stock of MSG Entertainment in the form of Class A common stock (“Class A Common Stock”) immediately following the MSGE Distribution (the “Retained Interest”). As a result, the Company became an independent publicly traded company on April 21, 2023 through the MSGE Distribution. 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 MSGE Distribution.
Our MD&A is organized as follows:
Results of Operations. This section provides an analysis of our unaudited results of operations for the three and six months ended December 31, 2023 and 2022.
Liquidity and Capital Resources. This section provides a discussion of our financial condition and liquidity, an analysis of our cash flows for the six months ended December 31, 2023 and 2022, 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 2023 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.
Factors Affecting Results of Operations
The consolidated statement of operations for the three and six months ended December 31, 2023 is presented on a consolidated basis, as the Company became a standalone public company on April 21, 2023. The Company’s combined statement of operations for the three and six months ended December 31, 2022 was prepared on a stand-alone basis derived from the consolidated financial statements and accounting records of Sphere Entertainment, and is presented as a carve-out financial statement, because the Company was not a standalone public company prior to the MSGE Distribution. See Note 1. Description of Business and Basis of Presentation to the consolidated and combined financial statements included in “Part I — Item 1. Financial Statements” of this Quarterly Report on Form 10-Q for additional information.
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.
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In addition, Fiscal Year 2024 has been and will continue to be impacted by increased rent expense relative to Fiscal Year 2023 due to our new corporate office lease, which runs through 2046. 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.
Factors Affecting Comparability
MSGE Distribution
The condensed combined statements of operations for the three and six months ended December 31, 2022 includes allocations for certain support functions that were provided on a centralized basis and not historically recorded at the business unit level by Sphere Entertainment, such as expenses related to executive management, finance, legal, human resources, government affairs, information technology, and venue operations among others. As part of the MSGE Distribution, certain corporate and operational support functions were transferred to the Company and therefore, charges were reflected in order to burden all business units comprising Sphere Entertainment’s historical operations. These expenses were allocated on the basis of direct usage when identifiable, with the remainder allocated on a pro-rata basis of combined assets, headcount or other measures of the Company and Sphere Entertainment, which are recorded as a reduction of either direct operating expenses or selling, general, and administrative expenses.
Management believes the assumptions underlying the combined financial statements, including the assumptions regarding allocating general corporate expenses, are reasonable. Nevertheless, the combined financial statements do not include all of the actual expenses that would have been incurred by the Company and may not reflect its combined results of operations, financial position and cash flows had it been a separate, standalone company during the periods presented. Actual costs that would have been incurred if the Company had been a separate, standalone company would depend on multiple factors, including organizational structure and strategic decisions made in various areas, including information technology and infrastructure. See Note 1. Description of Business and Basis of Presentation to the condensed consolidated and combined financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional information.
The costs to operate our business as an independent, publicly-traded company, including pursuant to terms of the transition services agreement, are expected to vary from those historical allocations. Such costs principally relate to areas that include, but are not limited to:
•corporate personnel overhead expenses as a result of the Company operating on a stand-alone basis;
•professional fees associated with internal and external audits including compliance with Sarbanes-Oxley Act, tax, legal and other services;
•anticipated executive compensation costs related to existing and new executive management and excluding future share-based compensation expense; and
•fees for preparing and distributing periodic filings with the Securities and Exchange Commission.
These costs will not be fully reflected in a complete year of the Company’s financial statements until the year ending Fiscal 2024, because, for periods prior to April 20, 2023, the Company’s financial statements were presented on a carve-out basis.
Advertising Sales Representation Agreement Termination
Prior to December 31, 2022, the Company was a party to an advertising sales representation agreement (the “Networks Advertising Sales Representation Agreement”) with Sphere Entertainment’s subsidiary, MSGN Holdings, L.P. (“MSG Networks”), pursuant to which the Company had the exclusive right and obligation to sell MSG Networks advertising availabilities for a commission. The Networks Advertising Sales Representation Agreement was terminated effective as of December 31, 2022. As a result, after December 31, 2022, the Company no longer recognizes advertising sales commission revenue or the employee costs related to the Networks Advertising Sales Representation Agreement. For the three and six months ended December 31, 2022, the Company recognized $8,424 and $8,802, respectively, of revenues under the Networks Advertising Sales Representation Agreement.
The termination of the Networks Advertising Sales Representation Agreement impacted the operating results of the Company for Fiscal Year 2023 and will impact the operating results of the Company on a go forward basis.
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Results of Operations
Comparison of the three and six months ended December 31, 2023 versus the three and six months ended December 31, 2022.
 Three Months Ended
December 31,Change
20232022AmountPercentage
Revenues $402,666 $355,880 $46,786 13 %
Direct operating expenses(202,761)(180,603)(22,158)(12)%
Selling, general, and administrative expenses
(48,389)(43,301)(5,088)(12)%
Depreciation and amortization(13,205)(15,586)2,381 15 %
Gains, net on dispositions— 4,412 (4,412)NM
Restructuring charges(888)(7,359)6,471 88 %
Operating income137,423 113,443 23,980 21 %
Interest income 1,083 1,812 (729)(40)%
Interest expense(15,049)(13,205)(1,844)(14)%
Other income (expense), net2,846 (2,172)5,018 NM
Income from operations before income taxes126,303 99,878 26,425 26 %
Income tax expense(1,054)(2,797)1,743 62 %
Net income125,249 97,081 28,168 29 %
Less: Net loss attributable to nonredeemable noncontrolling interest— (181)181 NM
Net income attributable to MSG Entertainment’s stockholders$125,249 $97,262 $27,987 29 %
 Six Months Ended
December 31,Change
20232022AmountPercentage
Revenues $544,878 $502,332 $42,546 8 %
Direct operating expenses(304,438)(282,265)(22,173)(8)%
Selling, general, and administrative expenses
(97,211)(83,415)(13,796)(17)%
Depreciation and amortization(26,789)(31,571)4,782 15 %
Gains, net on dispositions— 4,412 (4,412)NM
Restructuring charges(12,441)(7,359)(5,082)(69)%
Operating income103,999 102,134 1,865 2 %
Interest income 1,935 3,322 (1,387)(42)%
Interest expense(29,336)(24,632)(4,704)(19)%
Other expense, net(1,625)(1,286)(339)(26)%
Income from operations before income taxes74,973 79,538 (4,565)(6)%
Income tax expense(395)(731)336 46 %
Net income74,578 78,807 (4,229)(5)%
Less: Net loss attributable to nonredeemable noncontrolling interest— (553)553 NM
Net income attributable to MSG Entertainment’s stockholders$74,578 $79,360 $(4,782)(6)%
_________________
NM — Absolute percentages greater than 200% and comparisons from positive to negative values or to zero values are considered not meaningful.
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Revenues
Revenues for the three and six months ended December 31, 2023 increased $46,786 and $42,546, respectively, as compared to the prior year period. The changes in revenues were attributable to the following:
Three Months EndedSix Months Ended
December 31,
2023
Increase in event-related revenues
$44,263 $35,993 
Increase in revenues from the presentation of the Christmas Spectacular
17,880 17,822 
Decrease in commissions due to termination of the Networks Advertising Sales Representation Agreement(8,424)(8,802)
Decrease in arena license fees from MSG Sports pursuant to the Arena License Agreements(7,296)(7,296)
(Decrease) increase in revenues subject to the sharing of economics with MSG Sports pursuant to the Arena License Agreements(2,479)228 
Other net increases2,842 4,601 
$46,786 $42,546 
For the three and six months ended December 31, 2023, the increase in event-related revenues primarily reflects (i) higher revenues from concerts of $28,851 and $21,534, respectively, and (ii) higher revenues from other live entertainment and sporting events of $15,412 and $14,458, respectively. The increase in event-related revenues was due to an increase in the number of events at the Company’s venues as compared to the prior year period and, to a lesser extent, higher per-event revenues in the current year period.
The Company had 193 Christmas Spectacular performances during this year’s holiday season, of which 183 took place in the second quarter of Fiscal Year 2024, as compared to 181 performances in the prior year’s holiday season, of which 174 took place in the second quarter of Fiscal Year 2023. For this year’s holiday season, more than 1,000,000 tickets were sold, as compared to more than 930,000 tickets sold in the prior year.
For the three and six months ended December 31, 2023, the increase in revenues from the presentation of the Christmas Spectacular production, as compared to the prior year periods, was primarily due to higher ticket-related revenues. This reflected higher per-show revenue and, to a lesser extent, an increase in the number of performances as compared to the prior year periods. The increase in per-show ticket-related revenues was due to higher average ticket yield and higher average per-show attendance as compared to the prior year periods.
For the three and six months ended December 31, 2023, the decrease in arena license fees was due to nine fewer Knicks and Rangers games played at The Garden in the current year period. In the three and six months ended December 31, 2023, the Knicks and Rangers played a combined 32 and 34 pre/regular season games at The Garden, respectively, as compared to 41 and 43 combined pre/regular season games, respectively, in the prior year periods.
For the three months ended December 31, 2023, the decrease in revenues subject to the sharing of economics with MSG Sports pursuant to the Arena License Agreements primarily reflects lower food, beverage and merchandise sales at Knicks and Rangers games, which mainly reflects fewer Knicks and Rangers games played at The Garden as compared to the prior year period, partially offset by higher average per-game revenue. For the six months ended December 31, 2023, the increase in revenues subject to the sharing of economics with MSG Sports pursuant to the Arena License Agreements primarily reflects higher suite license fee revenues, partially offset by lower food, beverage and merchandise sales at Knicks and Rangers games.
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Direct operating expenses
Direct operating expenses for the three and six months ended December 31, 2023 increased $22,158 and $22,173 as compared to the prior year period. The changes in direct operating expenses were attributable to the following:
Three Months EndedSix Months Ended
December 31,
2023
Increase in event-related direct operating expenses$19,843 $15,107 
Increase in direct operating expenses associated with the Christmas Spectacular
3,602 4,055 
(Decrease) increase in expenses associated with the sharing of economics with MSG Sports pursuant to the Arena License Agreements(319)2,060 
Other net (decreases) increases(968)951 
$22,158 $22,173 
For the three and six months ended December 31, 2023, the increase in event-related direct operating expenses reflects (i) higher direct operating expenses from concerts of $12,697 and $8,478, respectively, and (ii) higher direct operating expenses from other live entertainment and sporting events of $7,148 and $6,629, respectively. The increase in event-related direct operating expenses was due to an increase in the number of events at the Company’s venues as compared to the prior year periods and, to a lesser extent, higher per-event expenses in the current year periods.
For the three and six months ended December 31, 2023, the increase in direct operating expenses associated with the Christmas Spectacular production was primarily due to the increase in the number of performances as compared to the prior year periods, partially offset by lower average per-show expenses.
For the three months ended December 31, 2023, the decrease in direct operating expenses subject to the sharing of economics with MSG Sports pursuant to the Arena License Agreements primarily reflects lower food, beverage and merchandise sales at Knicks and Rangers games. For the six months ended December 31, 2023, the increase in direct operating expenses subject to the sharing of economics with MSG Sports pursuant to the Arena License Agreements primarily reflects direct operating expenses incurred as a result of the increase in suite license fee revenues.
Selling, general, and administrative expenses
For the three and six months ended December 31, 2023, selling, general, and administrative expenses increased $5,088 and $13,796, respectively, as compared to the prior year periods. Results for Fiscal Year 2024 reflect MSG Entertainment on a fully standalone basis. Results for the first six months of Fiscal Year 2023 reflect the allocation of corporate and administrative costs based on the accounting requirements for the preparation of carve-out financial statements. These results do not include all of the expenses that would have been incurred by MSG Entertainment had it been a standalone public company for the prior year periods. This was the primary driver of the overall increase in selling, general and administrative expenses, partially offset by the impact of the Company’s transition services agreement with Sphere Entertainment.
Depreciation and amortization
For the three and six months ended December 31, 2023, depreciation and amortization decreased $2,381 and $4,782, respectively, as compared to the prior year period primarily due to certain intangible assets being fully amortized in the current year as well as the disposal of a corporate aircraft during Fiscal Year 2023.
Gains, net on dispositions
Gains, net on dispositions for the three and six months ended December 31, 2023 were $0 as compared to a net gain of $4,412 in the three and six months ended December 31, 2022. The net gain in the prior year periods was due to the gain on sale of the Company’s controlling interest in Boston Calling Events, LLC (the “BCE Disposition”), partially offset by the net loss on the disposal of a corporate aircraft during Fiscal Year 2023.
Restructuring charges
For the three and six months ended December 31, 2023, the Company recorded restructuring charges of $888 and $12,441, respectively, which related to termination benefits for certain corporate executives and employees. For the three and six months ended December 31, 2022, the Company recorded restructuring charges of $7,359 which related to the termination benefits provided due to a
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workforce reduction of certain executives and employees as part of Sphere Entertainment’s cost reduction program implemented in Fiscal Year 2023.
Operating income
For the three and six months ended December 31, 2023, operating income increased by $23,980 and $1,865, respectively. The increase in operating income for the three months ended December 31, 2023 was primarily due to an increase in revenues and lower restructuring charges, partially offset by an increase in direct operating expenses and, to a lesser extent, higher selling, general and administrative expenses, as compared to the prior year period. The increase in operating income for the six months ended December 31, 2023 was primarily due to an increase in revenues, partially offset by an increase in direct operating expenses and, to a lesser extent, higher selling, general and administrative expenses and restructuring charges, as compared to the prior year period.
Interest income
For the three and six months ended December 31, 2023, interest income decreased $729 and $1,387, respectively, as compared to the prior year period primarily due to (i) the impact of the MSGE Distribution, which impacted the year-over-year comparability of results since the prior year period included carve-out allocation costs and (ii) lower average balances in the Company’s cash, cash equivalents and restricted cash, partially offset by higher interest rates.
Interest expense
For the three and six months ended December 31, 2023, interest expense increased $1,844 and $4,704, respectively, as compared to the prior year period primarily due to higher interest rates on borrowings and higher revolver borrowings under the National Properties Facilities.
Other (expense) income, net
For the three months ended December 31, 2023, other income, net was $2,846 as compared to other expenses, net of $2,172 for the three months ended December 30, 2022, an increase of $5,018. The change was primarily due to (i) an increase in unrealized gains of $3,175 associated with the investment in Townsquare Media, Inc., (ii) the absence of a $2,512 unrealized loss associated with the investment in DraftKings Inc. recognized in the prior period, partially offset by (iii) higher net periodic benefit costs of $1,244 associated with the Company’s funded and unfunded and qualified and non-qualified defined benefit plans (the “Pension Plans”).
For the six months ended December 31, 2023, other expense, net increased $339 as compared to the prior year period. The change was primarily due to (i) higher net periodic benefit costs of $2,096 associated with the Pension Plans, partially offset by (ii) a decrease in unrealized loss of $709 associated with the investment in Townsquare Media, Inc., and (iii) an increase in gains of $247 associated with the investment in DraftKings Inc.
Income tax expense
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 expense for the three and six months ended December 31, 2023 of $1,054 and $395, respectively reflects an effective tax rate of 1%.
Income tax expense for the three and six months ended December 31, 2022 of $2,797 and $731, respectively, reflects an effective tax rate of 3% and 1%, respectively.
The estimated annual effective tax rate is lower than the statutory federal tax rate of 21% primarily due to the offset of the valuation allowance. The estimated annual effective tax rate is revised on a quarterly basis.
Adjusted operating income (“AOI”)
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) the impact of non-cash straight-line leasing revenue associated with the Arena License Agreements with MSG Sports,
(ii) depreciation, amortization and impairments of property and equipment, goodwill and intangible assets,
(iii) share-based compensation expense,
(iv) restructuring charges or credits,
(v) merger, spin-off, and acquisition-related costs, including merger-related litigation expenses,
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(vi) gains or losses on sales or dispositions of businesses and associated settlements,
(vii) the impact of purchase accounting adjustments related to business acquisitions,
(viii) gains and losses related to the remeasurement of liabilities under the executive deferred compensation plan, and
(ix) amortization for capitalized cloud computing arrangement costs.
The Company believes that given the length of the Arena License Agreements and resulting magnitude of the difference in leasing revenue recognized and cash revenue received, the exclusion of non-cash leasing revenue provides investors with a clearer picture of the Company’s operating performance. Management believes that this adjustment is beneficial for other incremental reasons as well. This adjustment provides senior management, investors and analysts with important information regarding a long-term related party agreement with MSG Sports. In addition, this adjustment is included under the Company’s debt covenant compliance calculations and is a component of the performance measures used to evaluate, and compensate, senior management of the Company. 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 and combined 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.
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 income to adjusted operating income for the three and six months ended December 31, 2023 as compared to the prior year periods:
Three Months Ended
December 31,Change
20232022AmountPercentage
Operating income$137,423 $113,443 $23,980 21 %
Non-cash portion of arena license fees from MSG Sports (a)
(9,120)(12,410)3,290 27 %
Depreciation and amortization13,205 15,586 (2,381)(15)%
Share-based compensation (excluding share-based compensation in restructuring charges)
7,773 6,555 1,218 19 %
Gains, net on dispositions— (4,412)4,412 NM
Restructuring charges888 7,359 (6,471)(88)%
Amortization for capitalized cloud computing arrangement costs448 29 419 NM
Remeasurement of deferred compensation plan liabilities343 160 183 114 %
Adjusted operating income$150,960 $126,310 $24,650 20 %
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Six Months Ended
December 31,Change
20232022AmountPercentage
Operating income$103,999 $102,134 $1,865 2 %
Non-cash portion of arena license fees from MSG Sports (a)
(9,615)(12,929)3,314 26 %
Depreciation and amortization26,790 31,571 (4,781)(15)%
Share-based compensation (excluding share-based compensation in restructuring charges)
13,950 13,965 (15)NM
Gains, net on dispositions— (4,412)4,412 NM
Restructuring charges12,441 7,359 5,082 69 %
Merger, spin-off, and acquisition-related costs (b)
2,035 — 2,035 NM
Amortization for capitalized cloud computing arrangement costs448 104 344 NM
Remeasurement of deferred compensation plan liabilities198 6 192 NM
Adjusted operating income$150,246 $137,798 $12,448 9 %
_________________
(a)    This adjustment represents the non-cash portion of operating lease revenue related to the Company’s Arena License Agreements with MSG Sports. 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. Operating income on a GAAP basis includes lease income of (i) $15,409 and $16,238 of revenue collected in cash for the three and six months ended December 31, 2023, respectively, and $19,416 and $20,220 of revenue collected in cash for the three and six months ended December 31, 2022, respectively, and (ii) a non-cash portion of $9,120 and $9,615 for the three and six months ended December 31, 2023, respectively, and $12,410 and $12,929 for the three and six months ended December 31, 2022, respectively.
(b)    This adjustment represents non-recurring costs incurred and paid by the Company for the sale of the Retained Interest by Sphere Entertainment.
NM — Absolute percentages greater than 200% and comparisons from positive to negative values or to zero values are considered not meaningful.
Net loss attributable to nonredeemable noncontrolling interests
For the three and six months ended December 31, 2023, the Company recorded $0 of net loss attributable to nonredeemable noncontrolling interests as compared to $181 and $553 of net loss attributable to nonredeemable noncontrolling interests for the three and six months ended December 31, 2022. These amounts represent the share of net loss of BCE that were not attributable to the Company. The Company disposed of its controlling interest in BCE on December 2, 2022.
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 December 31, 2023. 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 December 31, 2023, the Company’s unrestricted cash and cash equivalents balance was $35,229. The principal balance of the Company’s total debt outstanding as of December 31, 2023 was $633,750 and the Company had $132,409 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 10. 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 various 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 with JP Morgan Chase Bank, N.A., as administrative agent and the lenders and L/C issuers party thereto (as amended, the “National Properties Credit Agreement”), providing for a five-year, $650,000 senior secured term loan facility (the “National Properties Term Loan Facility”) and a five-year, $100,000 revolving credit facility (the “National Properties Revolving Credit Facility” and, together with the National Properties Term Loan Facility, the “National Properties Facilities”). On September 15, 2023, the National Properties Credit Agreement was amended to, among other things, increase the National Properties Revolving Credit Facility by $50,000 to $150,000. Up to $25,000 of the National Properties Revolving Credit Facility is available for the issuance of letters of credit. As of December 31, 2023 outstanding letters of credit were $17,591 and the remaining balance available under the National Properties Revolving Credit Facility was $132,409.
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 (the “National Properties Base Rate”), 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 SOFR Rate”). 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 December 31, 2023 was 8.46%.
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 is set at a ratio of 2:1 before stepping up to 2.5:1 in the fiscal quarter ending 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, stepping down to 5.5:1 in the fiscal quarter ending June 30, 2024 and 4.5:1 in the fiscal quarter ending June 30, 2026. As of December 31, 2023, 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
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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.
Contractual Obligations
During the six months ended December 31, 2023, 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 7. Property and Equipment, Net and Note 9. 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 December 31, 2023, cash, cash equivalents and restricted cash totaled $37,572, as compared to $84,355 as of June 30, 2023. The following table summarizes the Company’s cash flow activities for the six months ended December 31, 2023 and 2022:
Six Months Ended
December 31,
20232022
Net cash provided by operating activities
$105,232 $69,336 
Net cash (used in) provided by investing activities
(62,731)22,390 
Net cash used in financing activities
(89,284)(553)
Net (decrease) increase in cash, cash equivalents and restricted cash
$(46,783)$91,173 
Operating Activities
Net cash provided by operating activities for the six months ended December 31, 2023 improved by $35,896 to $105,232 as compared to the prior year period, primarily due to (i) increase in related parties receivables and payables net, and (ii) increase in deferred revenue, partially offset by (i) increase in accounts receivable, net, and (ii) a decrease in accounts payable, accrued and other current and non-current liabilities.
Investing Activities
Net cash used in investing activities for the six months ended December 31, 2023 increased by $85,121 to $62,731 as compared to the prior year period primarily due (i) to a loan to a related party under the DDTL facility, and (ii) the absence of proceeds received from the dispositions of BCE and the corporate aircraft recognized in the prior year period, partially offset by additional proceeds received from the sale of investments in the current year period as compared to the prior year period.
Financing Activities
Net cash used in financing activities for the six months ended December 31, 2023 increased by $88,731 to $89,284 as compared to the prior year period primarily due to (i) an increase in principal debt repayments, (ii) increase in stock repurchases, and (iii) increase in taxes paid in lieu of shares for equity based compensation in the current period, partially offset by proceeds received from the National Properties Revolving Credit Facility and a decrease in net transfers from Sphere Entertainment and Sphere Entertainment’s subsidiaries under carve-out accounting principles in the current period.
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. 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 our Annual Report on Form 10-K for the fiscal year ended June 30, 2023.
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 2023 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 December 31, 2023 and continuing for a full year would increase the Company’s interest expense on the outstanding amounts under the credit facilities by $12,675.
Item 4. Controls and Procedures
Our management, with the participation of our Executive Chairman and Chief Executive Officer and our Executive Vice President and Treasurer (functioning as our principal 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. Based on that evaluation, our Executive Chairman and Chief Executive Officer and Executive Vice President and Treasurer (functioning as our principal financial officer) concluded that the Company's disclosure controls and procedures were effective as of December 31, 2023.
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 Securities Exchange Act of 1934) during the fiscal quarter ended December 31, 2023, 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. For the six months ended December 31, 2023, the Company repurchased 3,525,314 shares of Class A Common Stock for approximately $115 million. As of December 31, 2023, the Company had approximately $110 million remaining available for repurchases. For the three months ended December 31, 2023, the Company did not repurchase any shares of Class A Common Stock.
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 December 31, 2023, formatted in Inline Extensible Business Reporting Language (iXBRL): (i) condensed consolidated balance sheets, (ii) condensed consolidated and combined statements of operations, (iii) condensed consolidated and combined statements of comprehensive income, (iv) condensed consolidated and combined statements of cash flows, (v) condensed consolidated and combined statements of (deficit) equity, and (vi) notes to condensed consolidated and combined financial statements.
104
The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2023 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 7th day of February 2024.
Madison Square Garden Entertainment Corp.
By:/S/    COURTNEY M. ZEPPETELLA
Name:Courtney M. Zeppetella
Title:Senior Vice President, Controller and Chief Accounting Officer

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Exhibit 10.1
imagea.jpg



December 18, 2023
Ms. Laura Franco
c/o Madison Square Garden Entertainment Corp.
Two Pennsylvania Plaza
New York, NY 10121

Dear Laura:    
This letter agreement (the “Agreement”), effective as of the date hereof (the “Effective Date”), will confirm the terms of your employment with the Company which shall commence on February 20, 2024 or such later date as the parties may agree (the “Commencement Date”).
1. Commencing on the Commencement Date, your title will be Executive Vice President and General Counsel and you will report to the Executive Chairman and Chief Executive Officer of the Company. Subject to Paragraph 2 below, you agree to devote such business time and attention to the business and affairs of the Company as is necessary to perform your duties in a diligent, competent, professional and skillful manner and in accordance with applicable law. Notwithstanding the foregoing, nothing herein shall preclude you from (i) serving as a member of the board of directors or advisory board (or their equivalents in the case of a non-corporate entity) of up to two non-competing business with the approval of the Executive Chairman and Chief Executive Officer, which may include your service as a member of the board of Virgin Voyages for which no further approval is required, (ii) engaging in charitable activities and community affairs, and (iii) managing your personal investments and affairs; provided, however, that the activities set out in clauses (i), (ii) and (iii) shall be limited by you so as not to materially interfere, individually or in the aggregate, with the performance of your duties and responsibilities hereunder, including compliance with the covenants set forth in Appendix A.
2. The Company acknowledges that, in addition to your services pursuant to this Agreement, and from and after the commencement of your employment with each such entity, you will simultaneously be employed by, and are expected to devote a portion of your business time and attention to, Sphere Entertainment Co. (“Sphere”). The Company understands that you have entered into, or are concurrent herewith entering into, an employment agreement with Sphere and recognizes and agrees that your responsibilities to Sphere will preclude you from devoting substantially all of your time and attention to the Company’s affairs, but apart from your arrangement with Sphere or as otherwise permitted under Paragraph 1 above you will not undertake any outside business commitments without the Company’s consent and you will, upon request, cooperate with the Company in reviewing your obligations under Paragraph 1 above. In addition, as recognized in Article Tenth of the Company’s Second Amended and Restated



Ms. Laura Franco
Page 2
Certificate of Incorporation (the “Overlap Policy”), there may be certain potential conflicts of interest and fiduciary duty issues associated with your roles at the Company and Sphere. The Company recognizes and agrees that none of (i) your multiple responsibilities at the Company and Sphere (and at their respective controlled affiliates), (ii) your inability to devote substantially all of your time and attention to the Company’s (and its controlled affiliates’) affairs, (iii) the actual or potential conflicts of interest and fiduciary duty issues that are waived in the Overlap Policy, or (iv) any actions taken, or omitted to be taken, by you in good faith to comply with your duties and responsibilities to the Company (and its controlled affiliates) in light of your multiple responsibilities to the Company and Sphere (and their respective controlled affiliates), shall be deemed to be a breach by you of your obligations under this Agreement (including your obligations under Annex A) nor shall any of the foregoing constitute “Cause” as such term is defined in Paragraph 11 hereof.
3. Commencing on the Commencement Date, your annual base salary will be not less than $550,000 annually, paid bi-weekly, subject to annual review and potential increase by the Compensation Committee of the Board of Directors of the Company (the “Compensation Committee”) in its discretion. The Compensation Committee will review your compensation package on an annual basis to ensure that you are paid consistently with other similarly situated executives of the Company as well as external peers.
4.
(a)Commencing with the Company’s fiscal year starting July 1, 2023, you will also participate in our discretionary annual bonus program with an annual target bonus opportunity equal to not less than 100% of your annual base salary. Any annual bonus granted to you with respect to the Company’s fiscal year starting July 1, 2023 will have a pro-rated target value to reflect your mid-year hire (based on the number of full months remaining in the fiscal year as of your actual start date divided by 12; provided, however, that February 2024 shall be included as a full month when pro-rating the target). Bonus payments depend on a number of factors including Company and unit and individual performance. However, the decision of whether or not to pay a bonus, and the amount of that bonus, if any, is made by the Compensation Committee in its sole discretion. Annual bonuses are typically paid early in the subsequent fiscal year. Except as otherwise provided herein, in order to receive a bonus, you must be employed by the Company at the time bonuses are being paid. Notwithstanding the foregoing, if your employment with the Company ends on or after the Scheduled Expiration Date (as defined below), you shall be paid your bonus for the fiscal year starting July 1, 2026 (based on the salary dollars actually paid through the Termination Date (as defined below), and payable at such time as bonuses are paid to the Company’s management employees), if any, which bonus shall be subject to Company and your business unit performance for that fiscal



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Page 3
year as determined by the Company in its sole discretion, but without adjustment for your individual performance.
(b)In addition to the cash compensation described above, you will be entitled to a one-time special cash payment of $237,500, paid within thirty days of the Commencement Date (the “Special Cash Award”). If at any time prior to the first anniversary of the Commencement Date your employment with the Company terminates as a result of (i) your termination of your employment (other than for “Good Reason” or due to your death or Disability (as defined in the Company’s Long Term Disability Plan)), or (b) an involuntary termination by the Company for “Cause” (each as defined below), then you shall promptly refund to the Company the full amount of the Special Cash Award.
5.
(a)Commencing with the Company’s fiscal year starting July 1, 2023, you will also, subject to your continued employment by the Company and actual grant by the Compensation Committee, participate in such equity and other long-term incentive programs that are made available to similarly situated executives at the Company. It is expected that such awards will consist of annual grants of cash and/or equity awards with an annual target value of not less than $700,000, all as determined by the Compensation Committee in its discretion. It is expected that the long-term incentive award(s) granted to you with respect to the Company’s fiscal year starting July 1, 2023 will be made in April 2024 and will have a pro-rated target value to reflect your mid-year hire (based on the number of full months remaining in the fiscal year as of your actual start date divided by 12; provided, however, that February 2024 shall be included as a full month when pro-rating the target). All awards described in this Paragraph, in addition to being subject to actual grant by the Compensation Committee, would be pursuant to the applicable plan document and would be subject to any terms and conditions established by the Compensation Committee in its sole discretion that would be detailed in separate agreements you would receive after any award is actually made; provided, however, that such terms and conditions shall be consistent with those in awards granted to similarly situated executives (subject to any more favorable terms set forth in this Agreement). Long-term incentive awards are currently expected to be subject to three-year vesting.
(b)In addition to your participation in the Company’s regular long-term incentive programs, subject to actual grant by the Compensation Committee, you will receive a one-time special award of restricted stock units with an aggregate grant date value of $923,357.30 (as determined by the Compensation Committee in its discretion) (the “Special RSU Grant”). The Special RSU Grant will be made at the same time mid-year equity awards are granted to active employees of the Company (expected to be in April 2024), will be subject to four-year vesting (with approximately 32% vesting on September 15, 2024,



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Page 4
40% vesting on September 15, 2025, 24% vesting on September 15, 2026 and 4% vesting on September 15, 2027) and have terms consistent with the publicly available Form of Madison Square Garden Entertainment Co. (formerly MSGE Spinco, Inc.) Restricted Stock Units Agreement. The Special RSU Grant will be issued pursuant to the applicable plan document and will be subject to any additional terms and conditions consistent with the foregoing that may be established by the Compensation Committee in its sole discretion and are detailed in a separate agreement you will receive after any award is actually made.
6. You will also be eligible to participate in our standard benefits program, subject to meeting the relevant eligibility requirements, payment of the required premiums, and the terms of the plans themselves. We currently offer medical, dental, vision, life, and accidental death and dismemberment insurance; short- and long- term disability insurance; a savings and retirement program; and ten paid holidays. You will also be eligible for flexible time off in accordance with Company policy and reimbursement of business expenses upon submission of appropriate documentation in accordance with Company policy.
7. If your employment with the Company is terminated on or prior to the third anniversary of the Commencement Date (the “Scheduled Expiration Date”) (i) by the Company (other than for “Cause”); or (ii) by you for “Good Reason” (other than if “Cause” then exists); then, subject to your execution and delivery, within 60 days after the date of termination of your employment, and non-revocation (within any applicable revocation period) of the Separation Agreement (as defined below), the Company will provide you with the following:
(a)Severance in an amount to be determined by the Company (the “Severance Amount”), but in no event less than two (2) times the sum of your annual base salary and your annual target bonus as in effect at the time your employment terminates. Sixty percent (60%) of the Severance Amount will be payable to you on the six-month anniversary of the date your employment so terminates (the “Termination Date”) and the remaining forty percent (40%) of the Severance Amount will be payable to you on the twelve-month anniversary of the Termination Date;
(b)Any unpaid annual bonus for the Company’s fiscal year prior to the fiscal year which includes your Termination Date, and a pro rated bonus based on the amount of your base salary actually earned by you during the Company’s fiscal year through the Termination Date, each of which will be paid to you when such bonuses are generally paid to similarly situated active executives and will be based on your then current annual target bonus as well as Company and your business unit performance for the applicable fiscal year as determined by the Company in its sole discretion, but without adjustment for your individual performance;



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Page 5
(c)Any unpaid portion of the Special Cash Award and, if the Special RSU Grant has not previously been awarded, $923,357.30, which amounts shall be paid within 60 days after the date of termination of your employment;
(d)Each of your outstanding long-term cash awards, if any, granted under the plans of the Company shall immediately vest in full and shall be payable to you at the same time as such awards are paid to active executives of the Company and the payment amount of such award shall be to the same extent that other similarly situated active executives receive payment as determined by the Compensation Committee (subject to satisfaction of any applicable performance criteria but without adjustment for your individual performance);
(e)(i) All of the time-based restrictions on each of your outstanding restricted stock or restricted stock unit awards granted to you under the plans of the Company shall immediately be eliminated, (ii) deliveries with respect to your restricted stock that are not subject to performance criteria or are subject to performance criteria that have previously been satisfied (as certified by the Compensation Committee) shall be made immediately after the effective date of the Separation Agreement, (iii) payment and deliveries with respect to your restricted stock units that are not subject to performance criteria or are subject to performance criteria that have previously been satisfied (as certified by the Compensation Committee) shall be made as soon as reasonably practicable after your execution and delivery of the Separation Agreement (and the expiration of any applicable revocation period) and (iv) payments or deliveries with respect to your restricted stock and restricted stock units that are subject to performance criteria that have not yet been satisfied shall be made at the same time and to the extent that other similarly situated executives receive payment as determined by the Compensation Committee (subject to satisfaction of the applicable performance criteria); and
(f)Each of your outstanding stock options and stock appreciation awards, if any, under the plans of the Company shall immediately vest and become exercisable, and you shall have the right to exercise each of those options and stock appreciation awards for the remainder of the term of such option or award.
If you die after a termination of your employment that is subject to this Paragraph 7, your estate or beneficiaries will be provided with any remaining benefits and rights under this Paragraph 7.
If the Company unilaterally determines that your employment with the Company will not commence (other than due to (i) your inability to commence employment with the Company on the Commencement Date, including without limitation due to a failure to pass the Company’s standard background check and immigration processes, (ii) your death or disability prior to the Commencement Date, or (iii) your commission of any act or omission that results in a




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Page 6
conviction, plea of no contest, plea of nolo contendere, or imposition of unadjudicated probation for any crime involving moral turpitude or any felony, and your employment does not commence as of the Commencement Date, then you will be entitled to the benefits and rights set forth in Paragraph 7(a) (determined based on the annual base salary and target bonus that would have been in effect on the Commencement Date) and Paragraph 7(c), subject to your execution and delivery, within 60 days after the date the Company notifies you of such determination, and non-revocation (within any applicable revocation period) of the Separation Agreement.
8.
(a)If you cease to be an employee of the Company prior to the Scheduled Expiration Date as a result of your death or your Disability, and at such time Cause does not exist then, subject (other than in the case of death) to your execution and delivery, within 60 days after the date of termination of your employment, and non-revocation (within any applicable revocation period) of the Separation Agreement, you or your estate or beneficiary shall be provided with the benefits and rights set forth in Paragraphs 7(b), (c), (e) and (f) above, and each of your outstanding long-term cash awards, if any, granted under the plans of the Company shall immediately vest in full, whether or not subject to performance criteria and shall be payable as soon as reasonably practicable after your execution and delivery of the Separation Agreement (and the expiration of any applicable revocation period); provided, that if any such award is subject to any performance criteria, then (i) if the measurement period for such performance criteria has not yet been fully completed, then the payment amount shall be at the target amount for such award and (ii) if the measurement period for such performance criteria has already been fully completed, then the payment of such award shall be at the same time and to the extent that other similarly situated executives receive payment as determined by the Compensation Committee (subject to satisfaction of the applicable performance criteria).
(b)If after the Scheduled Expiration Date, your employment with the Company is terminated (i) by the Company without Cause, (ii) by you for Good Reason, or (iii) as a result of your death or Disability and at the time of any such termination Cause does not exist, then, subject to your (or, in the case of your death, your representative’s) execution and delivery, within 60 days after the date of termination of your employment, and non-revocation (within any applicable revocation period) of the Separation Agreement, you will be provided with the benefits and rights set forth in Paragraphs 7(b), (d), (e) and (f) above.
9. For purposes hereof, “Separation Agreement” shall mean the Company’s standard severance agreement (modified to reflect the terms of this Agreement) which will include, without



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Page 7
limitation, the provisions set forth in Paragraphs 7, 8 and 10 hereof and Annex A hereto regarding non-compete (limited to one year), non-disparagement, non-hire/non-solicitation, confidentiality (including, without limitation, the last paragraph of Section 3 of Annex A), and further cooperation obligations and restrictions on you (with Company reimbursement of your associated expenses and payment for your services as described in Annex A in connection with any required post-employment cooperation) as well as a general release by you of the Company and its affiliates (and their respective directors and officers) other than Sphere and its controlled affiliates (and their respective directors and officers in their capacities as such), with customary carve-outs but shall otherwise contain no post-employment covenants unless agreed to by you. The Company shall provide you with the form of Separation Agreement within seven days of your termination of employment. For avoidance of doubt, your rights of indemnification under the Company’s Amended and Restated Certificate of Incorporation or the constituent instruments or documents of any of the Company’s affiliates, under your indemnification agreement with the Company and under any insurance policy, or under any other resolution of the Board of Directors of the Company shall not be released, diminished or affected by any Separation Agreement or release or any termination of your employment.
10. Except as otherwise set forth in Paragraphs 7 and 8 hereof, in connection with any termination of your employment, your then outstanding equity and cash incentive awards shall be treated in accordance with their terms and, other than as provided in this Agreement, you shall not be eligible for severance benefits under any other plan, program or policy of the Company. Nothing in this Agreement is intended to limit any more favorable rights that you may be entitled to under your equity and/or cash incentive award agreements, including, without limitation, your rights in the event of a termination of your employment, a “Going Private Transaction” or a “Change of Control” (as those terms are defined in the applicable award agreement).
11. For purposes of this Agreement, “Cause” means your (i) commission of an act of fraud, embezzlement, misappropriation, willful misconduct, gross negligence or breach of fiduciary duty against the Company or an affiliate thereof, or (ii) commission of any act or omission that results in a conviction, plea of no contest, plea of nolo contendere, or imposition of unadjudicated probation for any crime involving moral turpitude or any felony.
For purposes of this Agreement, “Good Reason” means that (1) without your written consent, (A) your annual base salary or annual target bonus (as each may be increased from time to time in the Compensation Committee’s sole discretion) is reduced, (B) your title (as in effect from time to time) is diminished, (C) you report to someone other than to the Executive Chairman and Chief Executive Officer of the Company, (D) you are no longer the Company’s most senior legal officer, (E) the Company requires that your principal office be located outside of the Borough of Manhattan, (F) the Company materially breaches its obligations to you under this Agreement, (G) your responsibilities as in effect immediately after the Commencement Date are thereafter



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materially diminished, or (H) the Company fails to issue the Special RSU Grant at the time mid-year equity awards are granted to active employees of the Company for the fiscal year beginning July 1, 2023 or, if no mid-year awards are granted to active employees, by May 31, 2023, (2) you have given the Company written notice, referring specifically to this Agreement and definition, that you do not consent to such action, (3) the Company has not corrected such action within 15 days of receiving such notice, and (4) you voluntarily terminate your employment with the Company within 90 days following the happening of the action described in subsection (1) above.
12. This Agreement does not constitute a guarantee of employment for any definite period. Your employment is at will and may be terminated by you or the Company at any time, with or without notice or reason; provided, that in order to terminate your employment without Good Reason, you agree to provide the Company with at least 60 days’ prior written notice.
13. The Company may withhold from any payment due to you any taxes required to be withheld under any law, rule or regulation. If any payment otherwise due to you hereunder would result in the imposition of the excise tax imposed by Section 4999 of the Code, the Company will instead pay you either (i) such amount or (ii) the maximum amount that could be paid to you without the imposition of the excise tax, depending on whichever amount results in your receiving the greater amount of aftertax proceeds. In the event that the payments and benefits payable to you would be reduced as provided in the previous sentence, then such reduction will be determined in a manner which has the least economic cost to you and, to the extent the economic cost is equivalent, such payments or benefits will be reduced in the inverse order of when the payments or benefits would have been made to you (i.e. later payments will be reduced first) until the reduction specified is achieved. If the Company elects to retain any accounting or similar firm to provide assistance in calculating any such amounts, the Company shall be responsible for the costs of any such firm.
14. It is intended that this Agreement will comply with Section 409A to the extent this Agreement is subject thereto, and that this Agreement shall be interpreted on a basis consistent with such intent. Any payment or benefit under Paragraphs 7 or 8 of this Agreement that is payable to you by reason of your termination of employment shall be made or provided to you only upon a “separation from service” as defined for purposes of Section 409A under applicable regulation, provided that the service recipient and the employer for this purpose shall be the service recipient as defined by Treasury Regulation Section 1.409A-1(g). If and to the extent that any payment or benefit under this Agreement, or any plan, award or arrangement of the Company or its affiliates, constitutes “non-qualified deferred compensation” subject to Section 409A and is payable to you by reason of your termination of employment, then if you are a “specified employee” (within the meaning of Section 409A as determined by the Company), such payment or benefit shall not be made or provided before the date that is six months after the



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date of your separation from service (or your earlier death). Any amount not paid or benefit not provided in respect of the six month period specified in the preceding sentence will be paid to you, together with interest on such delayed amount at a rate equal to the average of the one-year SOFR fixed rate equivalent for the ten business days prior to the date of your employment termination, in a lump sum or provided to you as soon as practicable after the expiration of such six month period. Each payment or benefit provided under this Agreement shall be treated as a separate payment for purposes of Section 409A to the extent Section 409A applies to such payment.
15. To the extent you are entitled to any expense reimbursement from the Company that is subject to Section 409A, (i) the amount of any such expenses eligible for reimbursement in one calendar year shall not affect the expenses eligible for reimbursement in any other taxable year (except under any lifetime limit applicable to expenses for medical care), (ii) in no event shall any such expense be reimbursed after the last day of the calendar year following the calendar year in which you incurred such expense, and (iii) in no event shall any right to reimbursement be subject to liquidation or exchange for another benefit.
16. The Company will not take any action, or omit to take any action, that would expose any payment or benefit to you to the additional tax of Section 409A, unless (i) the Company is obligated to take the action under an agreement, plan or arrangement to which you are a party, (ii) you request the action, (iii) the Company advises you in writing that the action may result in the imposition of the additional tax and (iv) you subsequently request the action in a writing that acknowledges you will be responsible for any effect of the action under Section 409A. The Company will hold you harmless for any action it may take or omission in violation of this Paragraph 16, including any attorney’s fees you may incur in enforcing your rights.
17. It is our intention that the benefits and rights to which you could become entitled in connection with termination of employment be exempt from or comply with Section 409A. If you or the Company believes, at any time, that any of such benefit or right is not exempt or does not comply, it will promptly advise the other and will negotiate reasonably and in good faith to amend the terms of such arrangement such that it complies (with the most limited possible economic effect on you and on the Company).
18. This Agreement is personal to you and without the prior written consent of the Company shall not be assignable by you other than by the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by your legal representatives. This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns. The rights or obligations of the Company under this Agreement may only be assigned or transferred pursuant to a merger or consolidation in which the Company is not the continuing entity, or the sale or liquidation of all or substantially all of the assets of Company; provided,



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however, that the assignee or transferee is the successor to all or substantially all of the assets of Company and such assignee or transferee assumes the liabilities and duties of Company, as contained in this Agreement, either contractually or as a matter of law.
19. To the extent permitted by law, you and the Company waive any and all rights to a jury trial with respect to any matter relating to this Agreement (including the covenants set forth in Annex A hereof). This Agreement will be governed by and construed in accordance with the law of the State of New York applicable to contracts made and to be performed entirely within that State.
20. Both the Company and you hereby irrevocably submit to the jurisdiction of the courts of the State of New York and the federal courts of the United States of America in each case located in the City of New York, Borough of Manhattan, solely in respect of the interpretation and enforcement of the provisions of this Agreement, and each party hereby waives, and agrees not to assert, as a defense that either party, as appropriate, is not subject thereto or that the venue thereof may not be appropriate. You and the Company each agree that mailing of process or other papers in connection with any such action or proceeding in any manner as may be permitted by law shall be valid and sufficient service thereof.
21. This Agreement may not be amended or modified otherwise than by a written agreement executed by the parties hereto or their respective successors and legal representatives. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement. It is the parties’ intention that this Agreement not be construed more strictly with regard to you or the Company.
22. This Agreement (and exhibits) and your indemnification agreement reflect the entire understanding and agreement of you and the Company with respect to the subject matter hereof and supersedes all prior understandings or agreements relating thereto.
23. The Company hereby agrees that it shall indemnify and hold you harmless to the fullest extent provided in the Company’s Amended and Restated Certificate of Incorporation and on the same terms as those applicable to other similarly situated executives. In addition, the Company agrees to maintain a director’s and officer’s liability insurance policy or policies covering you at a level and on terms and conditions no less favorable than the Company provides its directors and senior level officers currently (subject to any future improvement in such terms and conditions) until such time as legal or regulatory action against you are no longer permitted by law.
24. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and all of which together shall constitute one and the same agreement.



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25. All notices between the parties will be in writing. Any notice to the Company will be directed to the Executive Chairman and Chief Executive Officer via e-mail with a copy to legalnotices@msg.com.
26. This Agreement will automatically terminate, and be of no further force or effect, on the Scheduled Expiration Date; provided, however, that the provisions of Paragraphs 7 through 10, 13 through 26 and Annex A, and any amounts earned but not yet paid to you pursuant to the terms of this Agreement as of the Scheduled Expiration Date shall survive the termination of the Agreement and remain binding on you and the Company in accordance with their terms.
27. You hereby represent and warrant that your execution of this Agreement and your employment by the Company as contemplated herein does not and shall not violate, conflict with or result in a material breach of any covenant restricting competition in an agreement to which you are a party. It is understood and agreed by the Company that it will not require you to violate any confidentiality covenants of any current or former employer with respect to the proprietary information of such other employer obtained prior to the Commencement Date.



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Page 12
Sincerely,
MADISON SQUARE GARDEN ENTERTAINMENT CORP.


_/s/ James L. Dolan__________________________
By: James L. Dolan
Title: Executive Chairman and Chief Executive Officer        

Accepted and Agreed:
_/s/ Laura Franco_____________
Laura Franco

 




Ms. Laura Franco
Page 13


ANNEX A
ADDITIONAL COVENANTS
(This Annex constitutes part of the Agreement)
You agree to comply with the following covenants in addition to those set forth in the Agreement.
1. CONFIDENTIALITY
You agree to retain in strict confidence and not divulge, disseminate, copy or disclose to any third party any Confidential Information, other than for legitimate business purposes of the Company and its subsidiaries or as provided in the exceptions below. As used herein, “Confidential Information” means any non-public information that is material or of a confidential, proprietary, commercially sensitive or personal nature of, or regarding, the Company or any of its subsidiaries or any current or former director, officer or member of senior management of any of the foregoing (collectively “Covered Parties”). The term Confidential Information includes information in written, digital, oral or any other format and includes, but is not limited to (i) information designated or treated as confidential; (ii) budgets, plans, forecasts or other financial or accounting data; (iii) customer, guest, fan, vendor, sponsor, marketing affiliate or shareholder lists or data; (iv) technical or strategic information regarding the Covered Parties’ advertising, entertainment, theatrical, or other businesses; (v) advertising, sponsorship, business, sales or marketing tactics, strategies or information; (vi) policies, practices, procedures or techniques; (vii) trade secrets or other intellectual property; (viii) information, theories or strategies relating to litigation, arbitration, mediation, investigations or matters relating to governmental authorities; (ix) terms of agreements with third parties and third party trade secrets; (x) information regarding employees, talent, players, coaches, agents, consultants, advisors or representatives, including their compensation or other human resources policies and procedures; (xi) information or strategies relating to any potential or actual business development transactions and/or any potential or actual business acquisition, divestiture or joint venture, and (xii) any other information the disclosure of which may have an adverse effect on the Covered Parties’ business reputation, operations or competitive position, reputation or standing in the community.
If disclosed, Confidential Information could have an adverse effect on the Company’s standing in the community, its business reputation, operations or competitive position or the standing, reputation, operations or competitive position of any of its affiliates, subsidiaries, officers, directors, employees, coaches, consultants or agents or any of the Covered Parties.




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Notwithstanding the foregoing, the obligations of this section, other than with respect to subscriber information, shall not apply to Confidential Information which is:
a) already in the public domain or which enters the public domain other than by your breach of this Section 1;
b) disclosed to you by a third party with the right to disclose it in good faith; or
c) specifically exempted in writing by the Company from the applicability of this Agreement.
Notwithstanding anything elsewhere in this Agreement, including this Section 1 and Section 3 below, you are hereby notified that the immunity provisions in Section 1833 of title 18 of the United States Code provide that an individual cannot be held criminally or civilly liable under any federal or state trade secret law for any disclosure of a trade secret that is made (1) in confidence to federal, state or local government officials, either directly or indirectly, or to an attorney, and is solely for the purpose of reporting or investigating a suspected violation of the law, (2) under seal in a complaint or other document filed in a lawsuit or other proceeding, or (3) to your attorney in connection with a lawsuit for retaliation for reporting a suspected violation of law (and the trade secret may be used in the court proceedings for such lawsuit) as long as any document containing the trade secret is filed under seal and the trade secret is not disclosed except pursuant to court order. Furthermore, you are authorized to provide information to, file a charge with and participate in an investigation conducted by any governmental agency, and you do not need the Company’s permission to do so. In addition, it is understood that you are not required to notify the Company of a request for information from any governmental entity or of your decision to file a charge with or participate in an investigation conducted by any governmental entity. In addition, this Agreement in no way restricts or prevents you from providing testimony concerning the Company or any of its affiliates to judicial, administrative, regulatory or other governmental authorities. Notwithstanding the foregoing, you recognize that, in connection with the provision of information to any governmental entity, you must inform such governmental entity that the information you are providing is confidential.
Despite the foregoing, you are not permitted to reveal to any third party, including any governmental entity, information you came to learn during your service to the Company that is protected from disclosure by any applicable privilege, including but not limited to the attorney-client privilege or attorney work product doctrine. The Company does not waive any applicable privileges or the right to continue to protect its privileged attorney-client information, attorney work product, and other privileged information.




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2. NON-COMPETE
You acknowledge that due to your executive position in the Company and the knowledge of the Company’s and its affiliates’ confidential and proprietary information which you will obtain during the term of your employment hereunder, your employment by certain businesses would be irreparably harmful to the Company and/or its affiliates. During your employment with the Company and thereafter through the first anniversary of the date on which your employment with the Company is terminated by the Company or you for any reason, you agree, to the extent permissible under applicable rules of professional responsibility, not to (other than with the prior written consent of the Company), become employed by any Competitive Entity (as defined below). A “Competitive Entity” shall mean any arena or theater (with at least 1,000 seats) that competes in the same city as any of the Company’s arena’s or theaters, respectively. The ownership by you of not more than 1% of the outstanding equity of any publicly traded company shall not, by itself, be a violation of this Section. If you remain continuously employed with the Company through the Scheduled Expiration Date, then this agreement not to compete will expire on the Scheduled Expiration Date.
3. ADDITIONAL UNDERSTANDINGS
You agree, for yourself and others acting on your behalf, that you (and they) have not disparaged and will not disparage, make negative statements about (either “on the record” or “off the record”) or act in any manner which is intended to or does damage to the good will of, or the business or personal reputations of the Company or any of its incumbent or former officers, directors, agents, consultants, employees, successors and assigns or any of the Covered Parties. Notwithstanding the foregoing, you are authorized to provide information to, file a charge with and participate in an investigation conducted by any governmental agency, and you do not need the Company’s permission to do so.
The Company agrees that, except as necessary to comply with applicable law or the rules of the New York Stock Exchange or any other stock exchange on which the Company’s stock may be traded (and any public statements made in good faith by the Company in connection therewith), it and its corporate officers and directors, employees in its public relations department or third party public relations representatives retained by the Company will not disparage you or make negative statements in the press or other media which are damaging to your business or personal reputation. In the event that the Company so disparages you or makes such negative statements, then notwithstanding the “Additional Understandings” provision to the contrary, you may make a proportional response thereto. Notwithstanding the foregoing, the Company is authorized to provide information to, file a charge with and participate in an investigation conducted by any governmental agency, and the Company does not need your permission to do so.



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In addition, you agree that the Company is the owner of all rights, title and interest in and to all documents, tapes, videos, designs, plans, formulas, models, processes, computer programs, inventions (whether patentable or not), schematics, music, lyrics and other technical, business, financial, advertising, sales, marketing, customer or product development plans, forecasts, strategies, information and materials (in any medium whatsoever) developed or prepared by you or with your cooperation in connection with your employment by the Company (the “Materials”). The Company will have the sole and exclusive authority to use the Materials in any manner that it deems appropriate, in perpetuity, without additional payment to you.
If requested by the Company, you agree to deliver to the Company upon the termination of your employment, or at any earlier time the Company may request, all memoranda, notes, plans, files, records, reports, and software and other documents and data (and copies thereof regardless of the form thereof (including electronic copies)) containing, reflecting or derived from Confidential Information or the Materials of the Company or any of its affiliates (other than Sphere or any of its controlled affiliates) which you may then possess or have under your control. If so requested, you shall provide to the Company a signed statement confirming that you have fully complied with this Section. Notwithstanding the foregoing, you shall be entitled to retain your contacts, calendars and personal diaries and any materials needed for your tax return preparation or related to your compensation.
In addition, you agree for yourself and others acting on your behalf, that you (and they) shall not, at any time, participate in any way in the writing or scripting (including, without limitation, any “as told to” publications) of any book, periodical story, movie, play, or other similar written or theatrical work or video that (i) relates to your services to the Company or any of its affiliates or (ii) otherwise refers to the Company or its respective businesses, activities, directors, officers, employees or representatives (other than identifying your biographical information), without the prior written consent of the Company.
4. FURTHER COOPERATION
Following the date of termination of your employment with the Company (the “Expiration Date”), you will no longer provide any regular services to the Company or represent yourself as a Company agent. If, however, the Company so requests, you agree to cooperate fully with the Company in connection with any matter with which you were involved prior to the Expiration Date, or in any litigation or administrative proceedings or appeals (including any preparation therefore) where the Company believes that your personal knowledge, attendance and participation could be beneficial to the Company. This cooperation includes, without limitation, participation on behalf of the Company in any litigation or administrative proceeding brought by any former or existing Company employees, representatives, agents or vendors. For the avoidance of doubt, the term “cooperation” does not mean that you must provide information



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that is favorable to the Company; it means only that you will provide information within your knowledge and possession upon the Company’s request. The Company will pay you for your services rendered under this provision at the rate of $7,000 per day for each day or part thereof, within 30 days of the approval of the invoice therefor; provided that, if you provide services on the same day for any of the Company and Sphere, your daily rate shall not exceed $7,000 in the aggregate.
The Company will provide you with reasonable notice in connection with any cooperation it requires in accordance with this section and will take reasonable steps to schedule your cooperation in any such matters so as not to materially interfere with your other professional and personal commitments. The Company will reimburse you for any reasonable out-of-pocket expenses you reasonably incur in connection with the cooperation you provide hereunder as soon as practicable after you present appropriate documentation evidencing such expenses. You agree to provide the Company with an estimate of such expense before you incur the same.
5. NON-HIRE OR SOLICIT
You agree not to hire, seek to hire, or cause any person or entity to hire or seek to hire (without the prior written consent of the Company), directly or indirectly (whether for your own interest or any other person or entity’s interest) any person who is or was in the prior six months an employee of the Company, or any of its subsidiaries, until the first anniversary of the date on which your employment with the Company is terminated by the Company or you for any reason; provided that engaging in a general solicitation not specifically targeted at such employees shall not be prohibited hereby. This restriction does not apply to any former employee who was discharged by the Company or any of its affiliates. In addition, this restriction will not prevent you from providing references. If you remain continuously employed with the Company through the Scheduled Expiration Date, then this agreement not to solicit will expire on the Scheduled Expiration Date.
6. ACKNOWLEDGMENTS
You acknowledge that the restrictions contained in this Annex A, in light of the nature of the Company’s business and your position and responsibilities, are reasonable and necessary to protect the legitimate interests of the Company. You acknowledge that the Company has no adequate remedy at law and would be irreparably harmed if you breach or threaten to breach the provisions of this Annex A, and therefore agree that the Company shall be entitled to injunctive relief, to prevent any breach or threatened breach of any of those provisions and to specific performance of the terms of each of such provisions in addition to any other legal or equitable remedy it may have. You further agree that you will not, in any equity proceeding relating to the enforcement of the provisions of this Annex A, raise the defense that the Company has an



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adequate remedy at law. Nothing in this Annex A shall be construed as prohibiting the Company from pursuing any other remedies at law or in equity that it may have or any other rights that it may have under any other agreement. If it is determined that any of the provisions of this Annex A or any part thereof, is unenforceable because of the duration or scope (geographic or otherwise) of such provision or because of applicable rules of professional responsibility, it is the intention of the parties that the duration or scope of such provision, as the case may be, shall be reduced so that such provision becomes enforceable and, in its reduced form, such provision shall then be enforceable and shall be enforced.
7. SURVIVAL
The provisions of this Annex A shall survive any termination of your employment by the Company or by you, or the expiration of the Agreement, except as otherwise provided herein.


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: February 7, 2024
/s/ JAMES L. DOLAN
James L. Dolan
Executive Chairman and Chief Executive Officer



Exhibit 31.2
Certification
I, Philip D'Ambrosio, 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: February 7, 2024
/s/ PHILIP D'AMBROSIO
Philip D'Ambrosio
Executive Vice President and Treasurer (Principal 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 December 31, 2023 (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: February 7, 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 December 31, 2023 (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: February 7, 2024
/s/ PHILIP D'AMBROSIO
Philip D'Ambrosio
Executive Vice President and Treasurer (Principal 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.



v3.24.0.1
Cover - shares
 6 Months Ended
Dec. 31, 2023
Jan. 31, 2024
Document Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Dec. 31, 2023  
Document Transition Report false  
Entity File Number 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 Non-accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company true  
Entity Ex Transition Period true  
Entity Shell Company false  
Entity Central Index Key 0001952073  
Current Fiscal Year End Date --06-30  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q2  
Amendment Flag false  
Common Class A    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   41,121,950
Common Class B    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   6,866,754
v3.24.0.1
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands
Dec. 31, 2023
Jun. 30, 2023
Current Assets:    
Cash, cash equivalents, and restricted cash $ 37,572 $ 84,355
Accounts receivable, net 101,955 63,898
Related party receivables, current 41,318 69,466
Prepaid expenses and other current assets 69,408 77,562
Total current assets 250,253 295,281
Non-Current Assets:    
Property and equipment, net 626,172 628,888
Right-of-use lease assets 310,219 235,790
Goodwill 69,041 69,041
Intangible assets, net 63,801 63,801
Other non-current assets 100,789 108,356
Total assets 1,420,275 1,401,157
Current Liabilities:    
Accounts payable, accrued and other current liabilities 197,256 214,725
Related party payables, current 52,677 47,281
Long-term debt, current 16,250 16,250
Operating lease liabilities, current 35,539 36,529
Deferred revenue 236,349 225,855
Total current liabilities 538,071 540,640
Non-Current Liabilities:    
Long-term debt, net of deferred financing costs 605,685 630,184
Operating lease liabilities, non-current 310,952 219,955
Deferred tax liabilities, net 24,070 23,518
Other non-current liabilities 43,544 56,332
Total liabilities 1,522,322 1,470,629
Commitments and contingencies (see Note 9)
Deficit:    
Additional paid-in-capital 25,339 17,727
Treasury stock at cost (4,365 and 840 shares outstanding as of December 31, 2023 and June 30, 2023, respectively) (140,512) (25,000)
Retained earnings (deficit) 45,881 (28,697)
Accumulated other comprehensive loss (33,279) (34,021)
Total deficit (102,047) (69,472)
Total liabilities and deficit 1,420,275 1,401,157
Common Class A    
Deficit:    
Class A and Class B Common Stock [1] 455 450
Treasury stock at cost (4,365 and 840 shares outstanding as of December 31, 2023 and June 30, 2023, respectively) (115,512)  
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; 45,487 and 45,024 shares issued as of December 31, 2023 and June 30, 2023, respectively.
[2] Class B Common Stock, $0.01 par value per share, 30,000 shares authorized; 6,867 shares issued as of December 31, 2023 and June 30, 2023.
v3.24.0.1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares
Dec. 31, 2023
Jun. 30, 2023
Treasury stock at cost (in shares) 4,365,000 840,000
Common Class A    
Treasury stock at cost (in shares) 3,525  
Common stock, par or stated value per share (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 120,000,000 120,000,000
Common stock, shares, issued (in shares) 45,487,000 45,024,000
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) 30,000,000 30,000,000
Common stock, shares, issued (in shares) 6,867,000 6,867,000
v3.24.0.1
Condensed Consolidated And Combined Statements Of Operations (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Revenues [1] $ 402,666 $ 355,880 $ 544,878 $ 502,332
Direct operating costs [1] (202,761) (180,603) (304,438) (282,265)
Selling, general and administrative expenses [1] (48,389) (43,301) (97,211) (83,415)
Depreciation and amortization (13,205) (15,586) (26,789) (31,571)
Gains, net on dispositions 0 4,412 0 4,412
Restructuring charges (888) (7,359) (12,441) (7,359)
Operating income 137,423 113,443 103,999 102,134
Interest income [1] 1,083 1,812 1,935 3,322
Interest expense (15,049) (13,205) (29,336) (24,632)
Other income (expense), net 2,846 (2,172) (1,625) (1,286)
Income from operations before income taxes 126,303 99,878 74,973 79,538
Income tax expense (1,054) (2,797) (395) (731)
Net income 125,249 97,081 74,578 78,807
Less: Net loss attributable to nonredeemable noncontrolling interest 0 (181) 0 (553)
Net income attributable to MSG Entertainment’s stockholders $ 125,249 $ 97,262 $ 74,578 $ 79,360
Income per share attributable to MSG Entertainment’s stockholders:        
Basic (in dollars per share) $ 2.61 $ 1.88 $ 1.52 $ 1.53
Diluted (in dollars per share) $ 2.59 $ 1.88 $ 1.52 $ 1.53
Weighted-average number of shares of common stock:        
Basic (in shares) [2] 48,029 51,768 48,955 51,768
Diluted (in shares) [2] 48,293 51,768 49,168 51,768
[1] See Note 14. Related Party Transactions for further information on related party arrangements.
[2] On April 20, 2023, 51,768 common shares were distributed to Sphere Entertainment Co. stockholders in the MSGE Distribution (as defined in Note 1. Description of Business and Basis of Presentation). This share amount is being utilized for the calculation of basic and diluted loss per common share attributable to Madison Square Garden Entertainment Corp.’s stockholders for the three and six months ended December 31, 2022 because the Company was not a standalone public company prior to the MSGE Distribution.
v3.24.0.1
Condensed Consolidated And Combined Statements Of Comprehensive Income (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Statement of Comprehensive Income [Abstract]        
Net income $ 125,249 $ 97,081 $ 74,578 $ 78,807
Other comprehensive income, before income taxes:        
Amortization of net actuarial gain included in net periodic benefit cost 662 371 899 742
Other comprehensive income, before income taxes 662 371 899 742
Income tax expense (117) (65) (157) (131)
Other comprehensive income, net of income taxes 545 306 742 611
Comprehensive income 125,794 97,387 75,320 79,418
Less: Comprehensive loss attributable to nonredeemable noncontrolling interest 0 (181) 0 (553)
Comprehensive income attributable to MSG Entertainment $ 125,794 $ 97,568 $ 75,320 $ 79,971
v3.24.0.1
Condensed Consolidated And Combined Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
 6 Months Ended
Dec. 31, 2023
Dec. 31, 2022
OPERATING ACTIVITIES:    
Net income $ 74,578 $ 78,807
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 26,789 31,571
Share-based compensation expense 20,738 16,258
Deferred income tax expense 394 0
Provision for doubtful accounts 305 0
Amortization of deferred financing costs 1,663 1,613
Related party paid in kind interest (512) (1,804)
Net unrealized and realized loss on equity investments with readily determinable fair value 758 3,203
Non-cash lease expense 6,755 6,756
Gains, net on dispositions 0 (4,412)
Change in assets and liabilities:    
Accounts receivable, net (38,362) 1,987
Related party receivables and payables, net 33,544 6,732
Prepaid expenses and other current and non-current assets 1,479 (5,591)
Accounts payable, accrued and other current, and non-current liabilities (29,771) (44,140)
Deferred revenue 10,494 (12,758)
Operating lease right-of-use assets and lease liabilities (3,620) (8,886)
Net cash provided by operating activities 105,232 69,336
INVESTING ACTIVITIES:    
Capital expenditures (11,215) (9,208)
Proceeds from dispositions, net 0 27,904
Proceeds from sale of investments 13,484 3,694
Loans to related parties (65,000) 0
Net cash (used in) provided by investing activities (62,731) 22,390
FINANCING ACTIVITIES:    
Proceeds from revolving credit facility 73,000 0
Payments for debt financing costs (98,225) 0
Repayments on related party loan, net (305) 0
Payments for debt financing costs (633) 0
Taxes paid in lieu of shares issued for equity-based compensation (12,247) 0
Stock repurchases (50,874) 0
Net transfers to Sphere Entertainment and Sphere Entertainment’s subsidiaries 0 (553)
Net cash used in financing activities (89,284) (553)
Net (decrease) increase in cash, cash equivalents, and restricted cash (46,783) 91,173
Cash, cash equivalents, and restricted cash, beginning of period 84,355 62,573
Cash, cash equivalents, and restricted cash, end of period 37,572 153,746
Non-cash investing and financing activities:    
Capital expenditures incurred but not yet paid or paid by landlord 12,858 402
Non-cash stock repurchases in lieu of payment of loan due from related parties $ 65,512 $ 5,350
v3.24.0.1
Condensed Consolidated And Combined Statements Of (Deficit) Equity (Unaudited) - USD ($)
$ in Thousands
Total
Total Madison Square Garden Entertainment Corp. Stockholders’ (Deficit) Equity
Common Stock
Sphere Entertainment Co. Investment
Additional Paid- Capital
Treasury Stock
Retained Earnings (Deficit)
Accumulated Other Comprehensive Loss
Nonredeemable Noncontrolling Interest
Balance at the beginning of the period at Jun. 30, 2022 $ (1,589) $ (1,475) $ 0 $ 33,265 $ 0 $ 0 $ 0 $ (34,740) $ (114)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net income 78,807 79,360   79,360         (553)
Other comprehensive income 611 611           611  
BCE Disposition 667               667
Comprehensive income 80,085 79,971             114
Net increase (decrease) in Sphere Entertainment Co. 20,393 20,393   20,393          
Balance at the end of the period at Dec. 31, 2022 98,889 98,889 0 133,018 0 0 0 (34,129) 0
Balance at the beginning of the period at Sep. 30, 2022 89,825 90,311 0 124,746 0 0 0 (34,435) (486)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net income 97,081 97,262   97,262         (181)
Other comprehensive income 306 306           306  
BCE Disposition 667               667
Comprehensive income 98,054 97,568             486
Net increase (decrease) in Sphere Entertainment Co. (88,990) (88,990)   (88,990)          
Balance at the end of the period at Dec. 31, 2022 98,889 98,889 0 133,018 0 0 0 (34,129) 0
Balance at the beginning of the period at Jun. 30, 2023 (69,472) (69,472) 519 0 17,727 (25,000) (28,697) (34,021) 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net income 74,578 74,578         74,578    
Other comprehensive income 742 742           742  
Comprehensive income 75,320 75,320              
Share-based compensation 20,738 20,738     20,738        
Tax withholding associated with shares issued for share-based compensation (12,247) (12,247) 5   (12,252)        
Stock repurchases, inclusive of tax (116,386) (116,386)     (874) (115,512)      
Balance at the end of the period at Dec. 31, 2023 (102,047) (102,047) 524 0 25,339 (140,512) 45,881 (33,279) 0
Balance at the beginning of the period at Sep. 30, 2023 (235,201) (235,201) 523 0 17,980 (140,512) (79,368) (33,824) 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net income 125,249 125,249         125,249    
Other comprehensive income 545 545           545  
Comprehensive income 125,794 125,794              
Share-based compensation 7,773 7,773     7,773        
Tax withholding associated with shares issued for share-based compensation (413) (413) 1   (414)        
Balance at the end of the period at Dec. 31, 2023 $ (102,047) $ (102,047) $ 524 $ 0 $ 25,339 $ (140,512) $ 45,881 $ (33,279) $ 0
v3.24.0.1
Description of Business and Basis of Presentation
 6 Months Ended
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Business and Basis of Presentation Description of Business and Basis of Presentation
Description of Business
Madison Square Garden 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 (the “MSGE Distribution Date”), 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 “MSGE Distribution”), with Sphere Entertainment retaining approximately 33% of the outstanding common stock of the Company in the form of Class A common stock (“Class A Common Stock”) immediately following the MSGE Distribution. As a result, the Company became an independent publicly traded company on April 21, 2023 through the MSGE Distribution. 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, 2023 and 2022 and for the three years ended June 30, 2023, 2022 and 2021 (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, 2023 filed on August 18, 2023 (the “2023 Form 10-K”) for more information regarding the MSGE Distribution.
Basis of Presentation
The Company reports on a fiscal year basis ending on June 30th (“Fiscal Year”). In these unaudited condensed consolidated and combined financial statements, the years ending and ended on June 30, 2024 and 2023, respectively, are referred to as “Fiscal Year 2024” and “Fiscal Year 2023,” 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 Securities and Exchange Commission (“SEC”), and should be read in conjunction with the Company’s Audited Consolidated and Combined Annual Financial Statements.
Subsequent to the MSGE Distribution, the Company’s balance sheets as of December 31, 2023 and June 30, 2023 and for the statement of operations for the three and six months ended December 31, 2023 are presented on a consolidated basis, as the Company became a standalone public company on April 21, 2023. The Company’s financial statements prior to April 21, 2023 that are included in the results of operations for the three and six months ended December 31, 2022 were prepared on a stand-alone basis derived from the consolidated financial statements and accounting records of Sphere Entertainment. These financial statements reflect the combined historical results of operations, financial position and cash flows of the Company in accordance with GAAP and SEC Staff Accounting Bulletin Topic 1-B, Allocation of Expenses and Related Disclosure in Financial Statements of Subsidiaries, Divisions or Lesser Business Components of Another Entity, and Article 10 of Regulation S-X of the SEC for interim financial information. References to GAAP issued by the Financial Accounting Standards Board (“FASB”) in these footnotes are to the FASB Accounting Standards Codification, also referred to as “ASC.”
Management believes the assumptions underlying the combined financial statements, including the assumptions regarding allocating general corporate expenses, are reasonable. Nevertheless, the combined financial statements may not include all of the actual expenses that would have been incurred by the Company and may not reflect its combined results of operations, financial position and cash flows had it been a stand-alone company during the periods presented on a combined basis. Actual costs that would have been incurred if the Company had been a stand-alone company would depend on multiple factors, including organizational structure and strategic decisions made in various areas, including information technology and infrastructure. The Company is unable to quantify the amounts that it would have recorded during the historical periods on a stand-alone basis. See Note 17. Related Party Transactions to the 2023 Form 10-K for further details regarding allocations of certain costs from the Company to Sphere Entertainment.
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 December 31, 2023 and its results of operations for the three and six months ended December 31, 2023 and 2022 and cash flows for the six months ended December 31, 2023, and 2022. The condensed consolidated balance sheets were derived from the Audited Consolidated and Combined Annual Financial Statements but do 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 (the “NBA”) and the New York Rangers (the “Rangers”) of the National Hockey League (the “NHL”), 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.
v3.24.0.1
Summary of Significant Accounting Policies
 6 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
A. Principles of Consolidation and Combination
All significant intracompany accounts and balances within the Company’s consolidated businesses have been eliminated.
For the periods prior to the MSGE Distribution Date, the combined financial statements include certain assets and liabilities that were historically held at Sphere Entertainment’s corporate level but were specifically identifiable or otherwise attributable to the Company. Certain historical intercompany transactions between Sphere Entertainment and the Company have been included as components of Sphere Entertainment’s investment in the condensed consolidated and combined financial statements, as they are considered to be effectively settled upon effectiveness of the MSGE Distribution and were not historically settled in cash. Certain other historical intercompany transactions between Sphere Entertainment and the Company have been classified as related party, rather than intercompany, in the condensed consolidated and combined financial statements as they were historically settled in cash. Expenses related to corporate allocations from the Company to Sphere Entertainment prior to the MSGE Distribution are considered to be effectively settled in the condensed consolidated and combined financial statements at the time the transaction is recorded, with the offset recorded against Sphere Entertainment’s investment. See Note 14. Related Party Transactions, for further information on related party arrangements.
The Company disposed of its controlling interest in Boston Calling Events, LLC on December 2, 2022 (the “BCE Disposition”) and these condensed consolidated and combined financial statements reflect the results of operations of BCE until the BCE Disposition. See Note 3. Dispositions for further information on the BCE disposition.
B. Use of Estimates
The preparation of the accompanying condensed consolidated and combined financial statements in conformity with GAAP requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the 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. Recently Issued and Adopted Accounting Pronouncements

Recently Issued Accounting Pronouncements
In November 2023, the 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 in Fiscal Year 2025 and is required to be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact of the additional disclosure requirements on the Company’s condensed consolidated and combined 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 useful in making capital allocation decisions. This standard will be effective for the Company in Fiscal Year 2026 and should be applied prospectively.
v3.24.0.1
Dispositions
 6 Months Ended
Dec. 31, 2023
Discontinued Operations and Disposal Groups [Abstract]  
Dispositions Dispositions
The Company has not had any dispositions during Fiscal Year 2024.
Disposition of Our Interest in Boston Calling Events
The Company entered into an agreement on December 1, 2022 to sell its controlling interest in BCE. The transaction closed on December 2, 2022, resulting in a total gain on sale of $8,744, net of transaction costs. BCE meets the definition of a business under SEC Regulation S-X Rule 11-01(d)-1 and FASB ASC Topic 805 — Business Combinations. The BCE Disposition did not represent a strategic shift with a major effect on the Company’s operations, and as such, has not been reflected as a discontinued operation under FASB ASC Subtopic 205-20 — Discontinued Operations. The gain on the BCE Disposition was recorded in Gains, net on dispositions in the condensed combined statements of operations.
Disposition of Corporate Aircraft
On December 30, 2022, the Company sold its owned aircraft for $20,375. In connection with the sale, the Company recognized a loss of $4,383, net of transaction costs. The loss on the aircraft disposition was recorded in Gains, net on dispositions in the condensed combined statements of operations.
v3.24.0.1
Revenue Recognition
 6 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
Contracts with Customers
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 more information regarding the details of the Company’s revenue recognition policies. All revenue recognized in the condensed consolidated and combined statements of operations is considered to be revenue from contracts with customers in accordance with ASC Topic 606, Revenue From Contracts with Customers, except for revenues from the arena license agreements that require the Knicks and the Rangers to play their home games at The Garden (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 transfer of goods or services to the customer for the three and six months ended December 31, 2023 and 2022:
Three Months EndedSix Months Ended
December 31,December 31,
2023202220232022
Event-related and entertainment offerings (a)
$297,462 $238,888 $393,226 $341,678 
Sponsorship, signage, and suite licenses (b)
70,000 68,996 113,494 107,389 
Other (c)
9,575 15,347 10,083 18,462 
Total revenues from contracts with customers
377,037 323,231 516,803 467,529 
Revenues from Arena License Agreements, leases, and subleases
25,629 32,649 28,075 34,803 
Total revenues
$402,666 $355,880 $544,878 $502,332 
_________________
(a)    Event-related and entertainment 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 with Madison Square Garden Sports Corp. (together with its subsidiaries, as applicable, “MSG Sports”) and (ii) advertising commission revenues recognized under the advertising sales representation agreement (the “Networks Advertising Sales Representation Agreement”) between the Company and Sphere Entertainment’s subsidiary, MSGN Holdings, L.P. (“MSG Networks”). The Networks Advertising Sales Representation Agreement was terminated as of December 31, 2022.
In addition to the disaggregation of the Company’s revenue by major source based upon the timing of transfer of goods or services to the customer disclosed above, the following table disaggregates the Company’s revenues by type of goods or services in accordance with the required entity-wide disclosure requirements of ASC Subtopic 280-10-50-38 to 40, Segment Reporting, and the disaggregation of revenue required disclosures in accordance with ASC Subtopic 606-10-50-5, Revenue From Contracts with Customers-Overall-Disclosures, for the three and six months ended December 31, 2023 and 2022.

Three Months Ended
Six Months Ended
December 31,December 31,
2023202220232022
Ticketing and venue license fee revenues (a)
$222,341 $173,725 $287,509 $245,857 
Sponsorship and signage, suite, and advertising commission revenues (b)
87,441 92,174 134,004 137,308 
Food, beverage, and merchandise revenues
63,797 55,387 89,900 81,690 
Other3,458 1,945 5,390 2,674 
Total revenues from contracts with customers
377,037 323,231 516,803 467,529 
Revenues from Arena License Agreements, leases, and subleases
25,629 32,649 28,075 34,803 
Total revenues
$402,666 $355,880 $544,878 $502,332 
_________________
(a)    Amounts include ticket sales, including other ticket-related revenue, and venue license fees from the Company’s events such as (i) concerts, (ii) the presentation of the Christmas Spectacular and (iii) other live entertainment and sporting events.
(b)    Amounts include (i) revenues from sponsorship sales and representation agreements with MSG Sports and (ii) advertising commission revenues from MSG Networks until the termination of the Networks Advertising Sales Representation Agreement as of December 31, 2022.
Contract Balances
The following table provides information about the opening and closing contract balances from the Company’s contracts with customers as of December 31, 2023 and June 30, 2023:
As of
December 31,
2023		June 30,
2023
Receivables from contracts with customers, net (a)
$100,831 $69,295 
Contract assets, current (b)
$7,889 $11,254 
Deferred revenue, including non-current portion (c)
$236,349 $226,029 
    ________________
(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 December 31, 2023 and June 30, 2023, the Company’s receivables from contracts with customers above included $3,814 and $5,397, respectively, related to various related parties. See Note 14. 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 and six months ended December 31, 2023 relating to the deferred revenue balance as of June 30, 2023 was $65,980 and $135,710, respectively.
Transaction Price Allocated to the Remaining Performance Obligations
As of December 31, 2023, the Company’s remaining performance obligations under contracts were approximately $555,000, of which 49% is expected to be recognized over the next two years and an additional 36% of the balance is expected to be recognized in the following two years. 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.
v3.24.0.1
Restructuring Charges
 6 Months Ended
Dec. 31, 2023
Restructuring and Related Activities [Abstract]  
Restructuring Charges Restructuring Charges
During the six months ended December 31, 2023, the Company recorded restructuring charges related to termination benefits for certain corporate executives and employees. The Company recorded restructuring charges of $888 and $12,441 for the three and six months ended December 31, 2023, respectively, inclusive of $0 and $6,788, respectively, of share-based compensation expenses, which are accrued in accounts payable, accrued and other current liabilities and additional paid-in capital on the condensed consolidated balance sheet. The Company recorded restructuring charges of $7,359, net of contributory credits from the Company to Sphere Entertainment for the Company’s corporate employees, during the three and six months ended December 31, 2022. Changes to the Company’s restructuring liability through December 31, 2023 were as follows:
Restructuring Liability
June 30, 2023
$2,530 
Restructuring charges (excluding share-based compensation expense)
8,458 
Payments
(2,476)
December 31, 2023$8,512 
v3.24.0.1
Equity Investments With Readily Determinable Fair Value
 6 Months Ended
Dec. 31, 2023
Investments in and Advances to Affiliates [Abstract]  
Equity Investments With Readily Determinable Fair Value Equity Investments With Readily Determinable Fair Value
As of December 31, 2023, the Company held an investment in Townsquare Media, Inc. (“Townsquare”) and as of June 30, 2023, also held an investment in DraftKings Inc. (“DraftKings”), which was subsequently 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.”
The fair value of the Company’s investments in Class A common stock of Townsquare and Class A common stock of DraftKings is 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. As a holder of Class C common stock of Townsquare, the Company is entitled to convert at any time all or any part of the Company’s shares into an equal number of shares of Class A common stock of Townsquare, subject to restrictions set forth in Townsquare’s certificate of incorporation. Therefore, the fair value of the Company’s investment in Class C common stock of Townsquare is also determined based on the quoted market price in an active market on the NYSE, which is classified as Level I of the fair value hierarchy.
The carrying fair value of these investments, which is reported under Other non-current assets in the accompanying condensed consolidated balance sheets as of December 31, 2023 and June 30, 2023, is as follows:
As of
December 31,
2023		June 30,
2023
Townsquare Class A common stock$6,158 $6,945 
Townsquare Class C common stock11,880 13,399 
DraftKings Class A common stock
— 11,297 
Total Equity Investments with Readily Determinable Fair Value$18,038 $31,641 
The following table summarizes the realized and unrealized gain (loss) on equity investments with readily determinable fair value, which is reported in Other income (expenses), net for the three and six months ended December 31, 2023 and 2022:
Three Months EndedSix Months Ended
December 31,December 31,
2023202220232022
Unrealized gain (loss) — Townsquare$3,143 $(32)$(2,306)$(3,015)
Unrealized loss — DraftKings— (2,512)— (188)
Gain from shares sold — DraftKings— — 1,548 1,489 
Total realized and unrealized gain (loss)
$3,143 $(2,544)$(758)$(1,714)
Supplemental information on realized gain:
Shares of common stock sold — DraftKings— — 425 200 
Cash proceeds from common stock sold — DraftKings$— $— $12,844 $3,819 
v3.24.0.1
Property and Equipment, Net
 6 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
Property and Equipment, Net Property and Equipment, Net
As of December 31, 2023 and June 30, 2023, property and equipment, net consisted of the following:
As of
December 31,
2023		June 30,
2023
Land$62,768 $62,768 
Buildings1,008,051 999,205 
Equipment, furniture, and fixtures
355,909 351,596 
Leasehold improvements105,877 105,877 
Construction in progress (a)
13,734 2,828 
Total Property and equipment$1,546,339 $1,522,274 
Less: accumulated depreciation and amortization
(920,167)(893,386)
Property and equipment, net$626,172 $628,888 
_________________
(a)    In October 2023, the Company took possession of certain floors in the New York corporate office space and will be relocating from the space that the Company currently occupies to newly renovated office space within the same building. The Company was not involved in the design or construction of the new space for purposes of the Company’s build out prior to obtaining possession. The increase in construction in progress primarily relates to these build out costs incurred after possession. Upon obtaining possession of the space, the Company recognized an additional lease obligation of $96,334 and a right-of-use lease asset of $88,602, net of tenant improvement incentives received on possession date. While lease payments under the new lease agreement will be recognized as a lease expense on a straight-line basis over the lease term, the Company will begin paying full rent starting in the second half of Fiscal Year 2026 due to certain tenant incentives included in the arrangement. Base rent payments will increase every five years beginning in Fiscal Year 2031 in accordance with the terms of the lease.
The Company recorded depreciation expense on property and equipment of $13,205 and $26,789 for the three and six months ended December 31, 2023 and $15,281 and $30,817 for the three and six months ended December 31, 2022, respectively, which is recognized in Depreciation and amortization in the condensed consolidated and combined statements of operations.
v3.24.0.1
Goodwill and Intangible Assets
 6 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
As of December 31, 2023 and June 30, 2023, the carrying amount of goodwill was $69,041.
The Company’s indefinite-lived intangible assets as of December 31, 2023 and June 30, 2023 were as follows:
As of
December 31,
2023		June 30,
2023
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 2024, the Company performed its annual 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.
No amortization expense was recognized in the three and six months ended December 31, 2023 for definite lived intangible assets. The Company recorded amortization expense on definite lived intangible assets of $305 and $754 for the three and six months ended December 31, 2022, respectively, which is recognized in Depreciation and amortization in the condensed consolidated and combined statements of operations.
v3.24.0.1
Commitments and Contingencies
 6 Months Ended
Dec. 31, 2023
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, 2023 included a total of $926,466 (primarily related to contractual obligations).
During the six months ended December 31, 2023, 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 10. 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. Stockholders’ Equity) 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.
v3.24.0.1
Credit Facilities
 6 Months Ended
Dec. 31, 2023
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 and other debt agreements as of December 31, 2023 and June 30, 2023:

As of
December 31,
2023		June 30,
2023
Current Portion
National Properties Term Loan Facility
$16,250 $16,250 
Current portion of long-term debt
$16,250 $16,250 
As of
December 31, 2023June 30, 2023
PrincipalUnamortized Deferred Financing CostsNetPrincipalUnamortized Deferred Financing CostsNet
Non-current Portion
National Properties Term Loan Facility
$617,500 $(11,228)$606,272 $625,625 $(12,845)$612,780 
National Properties Revolving Credit Facility
— (587)(587)17,100 — 17,100 
Other debt
— — — 304 — 304 
Long-term debt, net of deferred financing costs
$617,500 $(11,815)$605,685 $643,029 $(12,845)$630,184 
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, $100,000 revolving credit facility (the “National Properties Revolving Credit Facility” and, together with the National Properties Term Loan Facility, the “National Properties Facilities”). On September 15, 2023, the National Properties Credit Agreement was amended to, among other things, increase the National Properties Revolving Credit Facility by $50,000 to $150,000. Up to $25,000 of the National Properties Revolving Credit Facility is available for the issuance of letters of credit. As of December 31, 2023, outstanding letters of credit were $17,591 and the remaining balance available under the National Properties Revolving Credit Facility was $132,409.
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 (the “National Properties Base Rate”), 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 SOFR Rate”). 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 December 31, 2023 was 8.46%.
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 ending 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 is set at a ratio of 2:1 before stepping up to 2.5:1 in the fiscal quarter ending 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, stepping down to 5.5:1 in the fiscal quarter ending June 30, 2024 and 4.5:1 in the fiscal quarter ending June 30, 2026. As of December 31, 2023, 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 PaymentsLoan Principal Repayments
Six Months EndedSix Months Ended
December 31,December 31,
2023202220232022
National Properties Facilities
$27,424 $22,410 $98,225 $— 
The carrying value and fair value of the Company’s debt reported in the accompanying condensed consolidated balance sheets were as follows:
As of
December 31, 2023June 30, 2023
Carrying
Value (a)
Fair
Value
Carrying
Value (a)
Fair
Value
Liabilities:
National Properties Facilities
$633,750 $630,581 $658,975 $655,509 
Other debt— — 304 304 
Total Long-term debt$633,750 $630,581 $659,279 $655,813 
________________
(a)    The total carrying value of the Company’s debt as of December 31, 2023 and June 30, 2023 is equal to the current and non-current principal payments for the Company’s credit agreements excluding unamortized deferred financing costs of $11,815 and $12,845, 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.
v3.24.0.1
Pension Plans and Other Postretirement Benefit Plans
 6 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
Pension Plans and Other Postretirement Benefit Plans Pension Plans and Other Postretirement Benefit Plans
Prior to the MSGE Distribution, Sphere Entertainment sponsored both funded and unfunded and qualified and non-qualified defined benefit plans (the “Pension Plans”), as well as a postretirement benefit plan (the “Postretirement Plan”), covering certain full-time employees and retirees of the Company. In connection with the MSGE Distribution, the sponsorship of the Pension Plans and Postretirement Plan was transferred to the Company. 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, together with associated excess savings plan, and the Madison Square Garden 401(k) Union Plan.
Defined Benefit Pension Plans and Other Postretirement Benefit Plans
The following table presents components of net periodic benefit cost (benefit) for the Pension Plans and Postretirement Plan included in the accompanying condensed consolidated and combined statements of operations for the three and six months ended December 31, 2023 and 2022. Service cost is recognized in direct operating expenses and selling, general and administrative expenses. All other components of net periodic benefit cost (benefit) are reported in Other income (expense), net.
Pension PlansPostretirement Plan
Three Months EndedThree Months Ended
December 31,December 31,
2023202220232022
Service cost$17 $30 $6 $8 
Interest cost1,469 927 24 11 
Expected return on plan assets(1,091)(1,504)— — 
Recognized actuarial loss662 330 — 9 
Net periodic cost (benefit)
$1,057 $(217)$30 $28 
Pension PlansPostretirement Plan
Six Months EndedSix Months Ended
December 31,December 31,
2023202220232022
Service cost$34 $60 $12 $16 
Interest cost2,938 1,854 48 22 
Expected return on plan assets(2,182)(3,008)— — 
Recognized actuarial loss899 692 — 18 
Net periodic cost (benefit)
$1,689 $(402)$60 $56 
Contributions for Qualified Defined Benefit Pension Plans
During the three and six months ended December 31, 2023, the Company contributed $0 and $12,250 to the Cash Balance Pension Plan, which is reported under Non-current liabilities in the accompanying condensed consolidated balance sheets as of December 31, 2023.
Defined Contribution Plans
For the three and six months ended December 31, 2023 and 2022, expenses related to the Savings Plans and Union Savings Plan included in the accompanying condensed consolidated and combined statements of operations are as follows:
Three Months EndedSix Months Ended
December 31,December 31,
2023202220232022
Savings Plans$2,265 $1,008 $4,299 $2,186 
Union Savings Plan$82 $20 $132 $38 
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 $343 and $198 for the three and six months ended December 31, 2023, respectively, and $160 and $6 for the three and six months ended December 31, 2022, respectively, within Selling, general, and administrative expenses to reflect the remeasurement of the Deferred Compensation Plan liability. In addition, the Company recorded gains of $343 and $198 for the three and six months ended December 31, 2023 and $160 and $6 for the three and six months ended December 31, 2022, respectively, within Other income (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 and combined balance sheets:
As of
December 31,
2023		June 30,
2023
Non-current assets (included in Other non-current assets)
$4,322 $2,954 
Non-current liabilities (included in Other non-current liabilities)
$(4,344)$(2,976)
v3.24.0.1
Share-based Compensation
 6 Months Ended
Dec. 31, 2023
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 and combined statements of operations as a component of direct operating expenses or selling, general, and administrative expenses. The share-based compensation expense recorded by the Company in Fiscal Year 2023 includes the expenses associated with the employees attributable to the Company, net of contributory credits from the Company to Sphere Entertainment for the Company’s corporate employees. The following table summarizes the Company’s share-based compensation expense:
Three Months EndedSix Months Ended
December 31,December 31,
2023202220232022
Share-based compensation expense (a)
$7,773 $6,555 $13,950 $13,965 
Fair value of awards vested (b)
$2,750 $— $29,150 $2,867 
________________
(a)    The expense shown excludes $0 and $6,788 for the three and six months ended December 31, 2023, respectively, and $2,293 for both the three and six months ended December 31, 2022, that was reclassified to Restructuring charges in the condensed consolidated and combined statements of operations as detailed in Note 5. Restructuring 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 $412 and $12,229, and $0 and $1,147 were retained by the Company during the three and six months ended December 31, 2023 and 2022, respectively.

For the three and six months ended December 31, 2023, weighted-average shares used in the calculation for diluted earnings per share (“EPS”) consisted of 48,293 and 49,168 weighted-average shares of Class A Common Stock for basic EPS, respectively, and the dilutive effect of 264 and 213 shares of Class A Common Stock issuable, respectively, under share-based compensation plans. For the three and six months ended December 31, 2023, weighted-average anti-dilutive shares primarily consisted of approximately 727 and 740 RSUs and stock options, respectively, and were excluded in the calculation of diluted EPS because their effect would have been anti-dilutive.

On April 20, 2023, 51,768 shares of Class A Common Stock were distributed to Sphere Entertainment stockholders in the MSGE Distribution. This share amount is being utilized for the calculation of basic and diluted loss per share of Class A Common Stock attributable to the Company’s stockholders for the three and six months ended December 31, 2022 because the Company was not a standalone public company prior to the MSGE Distribution.
As of December 31, 2023, there was $46,564 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 2.1 years.
Award Activity
RSUs
During the six months ended December 31, 2023 and December 31, 2022, 620 and 66 RSUs were granted and 624 and 40 RSUs vested, respectively.
PSUs
During the six months ended December 31, 2023 and December 31, 2022, 506 and 60 PSUs were granted and 273 and 11 PSUs vested, respectively.
v3.24.0.1
Stockholders’ Equity
 6 Months Ended
Dec. 31, 2023
Equity [Abstract]  
Stockholders’ Equity Stockholders’ Equity
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. For the six months ended December 31, 2023, the Company repurchased 3,525 shares of Class A Common Stock for $115,512. As of December 31, 2023, the Company had approximately $110,000 remaining available for repurchases.
Accumulated Other Comprehensive Loss
The following table details the components of accumulated other comprehensive loss:
Pension Plans and Postretirement Plan
Three Months EndedSix Months Ended
December 31,December 31,
2023202220232022
Balance at beginning of period$(33,824)$(34,435)$(34,021)$(34,740)
Other comprehensive income:
Amounts reclassified from accumulated other comprehensive loss (a)
662 371 899 742 
Income tax expense(117)(65)(157)(131)
Other comprehensive income, net of income taxes
545 306 742 611 
Balance at end of period$(33,279)$(34,129)$(33,279)$(34,129)
________________
(a)    Amounts reclassified from accumulated other comprehensive loss represent the amortization of net actuarial loss included in net periodic benefit cost, which is reflected under Other income (expense), net in the accompanying condensed consolidated and combined statements of operations (see Note 11. Pension Plans and Other Postretirement Benefit Plans).
v3.24.0.1
Related Party Transactions
 6 Months Ended
Dec. 31, 2023
Related Party Transactions [Abstract]  
Related Party Transactions Related Party Transactions
As of December 31, 2023, members of the Dolan family, for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, 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 and approximately 4.8% of the Company’s outstanding Class A Common Stock (inclusive of options exercisable within 60 days of December 31, 2023). Such shares of Class A Common Stock and Class B Common Stock, collectively, represent approximately 64% 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.
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 MSGE Distribution. Pursuant to this arrangement, the Company recognized $0 and $34 of expense for the three and six months ended December 31, 2023, respectively, and $65 and $135 of expense for the three and six months ended December 31, 2022, respectively. 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.
During Fiscal Year 2023 and the first quarter of Fiscal Year 2024, MSG Sports made market rate interest-bearing advances to the Company in connection with the construction of new premium hospitality suites at The Garden. The advances were fully repaid (including interest) in the second quarter of Fiscal Year 2024. As of December 31, 2023 and June 30, 2023, the other debt balance was $0 and $304, respectively.
Subsequent to June 30, 2023, the Company entered into arrangements with (i) MSG Sports, pursuant to which MSG Sports provides certain sponsorship, premium hospitality and other business operations services to the Company in exchange for service fees, (ii) Sphere Entertainment, pursuant to which the Company provides certain sponsorship account management services to Sphere Entertainment in exchange for service fees, and (iii) MSG Sports and Sphere Entertainment, pursuant to which the three companies have agreed to allocate expenses in connection with the use by each company of aircraft owned or leased by the Company and MSG Sports.
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 and combined statements of operations for the three and six months ended December 31, 2023 and 2022:
Three MonthsSix Months Ended
December 31,December 31,
2023202220232022
Revenues$33,630 $49,630 $38,789 $55,188 
Operating expenses (credits):
Revenue sharing expenses$6,315 $7,099 $7,467 $8,286 
Reimbursement under Arena License Arrangements(7,878)(9,357)(8,307)(9,850)
Cost reimbursement from MSG Sports(9,527)(9,475)(19,388)(18,992)
Cost reimbursement from Sphere Entertainment (after April 20, 2023) and Corporate allocations to Sphere Entertainment (before April 20, 2023)(26,341)(38,219)(56,677)(73,967)
Other operating expenses, net2,142 2,460 2,695 3,355 
Total operating expenses (credits), net (a)
$(35,289)$(47,492)$(74,210)$(91,168)
_________________
(a)    Of the total operating expenses (credits), net, $1,246 and $2,556 for the three and six months ended December 31, 2023 and $(901) and $(525) for the three and six months ended December 31, 2022, respectively, are included in direct operating expenses in the accompanying condensed consolidated and combined statements of operations, and $(36,535) and $(76,766) for the three and six months ended December 31, 2023 and $(46,591) and $(90,643) for the three and six months ended December 31, 2022, respectively, are included in selling, general, and administrative expenses.
Revenues
The Company recorded $24,529 and $25,853 of revenues under the Arena License Agreements for the three and six months ended December 31, 2023. In addition to the Arena License Agreements, during the three and six months ended December 31, 2023, the Company’s revenues from related parties primarily reflected sponsorship sales and service representation agreements of $5,506 and $8,269, and merchandise sharing revenues of $2,102 and $2,298, respectively, with MSG Sports. The Company also earned sublease revenue from related parties of $738 and $1,497 during the three and six months ended December 31, 2023, respectively.
The Company recorded $31,825 and $33,149 of revenues under the Arena License Agreements for the three and six months ended December 31, 2022. In addition, during the three and six months ended December 31, 2022 the Company recorded revenues under sponsorship sales and service representation agreements of $6,031 and $8,564, and merchandise sharing revenues of $2,176 and $2,291, respectively, with MSG Sports. The Company recorded revenues under the Networks Advertising Sales Representation Agreement of $8,424 and $8,802 for the three and six months ended December 31, 2022, respectively. The Networks Advertising Sales Representation Agreement was terminated effective as of December 31, 2022. As a result, after December 31, 2022, the Company no longer recognizes advertising sales commission revenue or the employee costs related to the Networks Advertising Sales Representation Agreement. The Company also earned sublease revenue from related parties of $527 and $1,222 during the three and six months ended December 31, 2022.
Other Related Party Matters
Loans Receivable from Sphere Entertainment
Prior to the MSGE Distribution, the Company’s captive insurance entity, Eden Insurance Company, Inc. (“Eden”), entered into a loan agreement with Sphere Entertainment (the “Eden Loan Agreement”), under which Eden granted Sphere Entertainment an unsecured loan bearing interest at a rate of SOFR plus 350 basis points with a principal amount not exceeding $60,000. This loan was in the form of a demand promissory note, payable immediately upon order from Eden. The loan payable to the Company held by Sphere Entertainment under the Eden Loan Agreement was assigned by Sphere Entertainment to the Company in connection with the MSGE Distribution, and has been eliminated in consolidation by the Company for periods subsequent to the MSGE Distribution.
During Fiscal Year 2023, Eden declared and paid dividends to Sphere Entertainment through a reduction of the loan receivable from Sphere Entertainment. During Fiscal Year 2023, no interest or principal payments were received by Eden. Instead, the accrued but unpaid interest was added to the outstanding principal amount of the loan. The cash flows related to this loan receivable for periods prior to the MSGE Distribution are reflected as investing activities, as these balances represent amounts loaned by the Company to Sphere Entertainment. The Company recorded related party interest income of $0, and $0 related to the Eden Loan Agreement in the three and six months ended December 31, 2023 and $902 and $1,804 in the three and six months ended December 31, 2022, respectively.
v3.24.0.1
Additional Financial Information
 6 Months Ended
Dec. 31, 2023
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
December 31,
2023		June 30,
2023
Cash and cash equivalents$35,229 $76,089 
Restricted cash2,343 8,266 
Total cash, cash equivalents, and restricted cash
$37,572 $84,355 
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
December 31,
2023		June 30,
2023
Prepaid expenses$52,595 $58,588 
Current contract assets7,889 11,254 
Inventory (a)
4,815 2,557 
Other4,109 5,163 
Total prepaid expenses and other current assets$69,408 $77,562 
_________________
(a)    Inventory is mostly comprised of food and liquor for venues.
Other non-current assets consisted of the following:
As of
December 31,
2023		June 30,
2023
Unbilled lease receivable (a)
$71,793 $67,325 
Equity investments with readily determinable fair value (b)
18,038 31,641 
Deferred costs4,254 4,120 
Other6,704 5,270 
Total other non-current assets$100,789 $108,356 
_________________
(a)    Unbilled lease receivable relates to the amounts recorded under the Arena License Agreement.
(b)     See Note 6. Equity investments with readily determinable fair value for more information on long-term investments.
Accounts payable, accrued and other current liabilities consisted of the following:
As of
December 31,
2023		June 30,
2023
Accounts payable$34,676 $15,628 
Accrued payroll and employee related liabilities50,566 64,532 
Cash due to promoters56,862 90,538 
Accrued expenses55,152 44,027 
Total accounts payable, accrued and other current liabilities$197,256 $214,725 
Other income (expense), net includes the following:
Three Months EndedSix Months Ended
December 31,December 31,
2023202220232022
Gains from shares sold — DraftKings$— $— $1,548 $1,489 
Net unrealized gains (loss) on equity investments with readily determinable fair value
3,143 (2,544)(2,306)(3,203)
Other(297)372 (867)428 
Total other income (expense), net
$2,846 $(2,172)$(1,625)$(1,286)
Income Taxes
During the six months ended December 31, 2023, the Company made income tax payments of $58. During the six months ended December 31, 2022, the Company received income tax refunds, net of payments, of $2,031.
v3.24.0.1
Summary of Significant Accounting Policies (Policies)
 6 Months Ended
Dec. 31, 2023
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 and combined financial statements, the years ending and ended on June 30, 2024 and 2023, respectively, are referred to as “Fiscal Year 2024” and “Fiscal Year 2023,” 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 Securities and Exchange Commission (“SEC”), and should be read in conjunction with the Company’s Audited Consolidated and Combined Annual Financial Statements.
Subsequent to the MSGE Distribution, the Company’s balance sheets as of December 31, 2023 and June 30, 2023 and for the statement of operations for the three and six months ended December 31, 2023 are presented on a consolidated basis, as the Company became a standalone public company on April 21, 2023. The Company’s financial statements prior to April 21, 2023 that are included in the results of operations for the three and six months ended December 31, 2022 were prepared on a stand-alone basis derived from the consolidated financial statements and accounting records of Sphere Entertainment. These financial statements reflect the combined historical results of operations, financial position and cash flows of the Company in accordance with GAAP and SEC Staff Accounting Bulletin Topic 1-B, Allocation of Expenses and Related Disclosure in Financial Statements of Subsidiaries, Divisions or Lesser Business Components of Another Entity, and Article 10 of Regulation S-X of the SEC for interim financial information. References to GAAP issued by the Financial Accounting Standards Board (“FASB”) in these footnotes are to the FASB Accounting Standards Codification, also referred to as “ASC.”
Management believes the assumptions underlying the combined financial statements, including the assumptions regarding allocating general corporate expenses, are reasonable. Nevertheless, the combined financial statements may not include all of the actual expenses that would have been incurred by the Company and may not reflect its combined results of operations, financial position and cash flows had it been a stand-alone company during the periods presented on a combined basis. Actual costs that would have been incurred if the Company had been a stand-alone company would depend on multiple factors, including organizational structure and strategic decisions made in various areas, including information technology and infrastructure. The Company is unable to quantify the amounts that it would have recorded during the historical periods on a stand-alone basis. See Note 17. Related Party Transactions to the 2023 Form 10-K for further details regarding allocations of certain costs from the Company to Sphere Entertainment.
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 December 31, 2023 and its results of operations for the three and six months ended December 31, 2023 and 2022 and cash flows for the six months ended December 31, 2023, and 2022. The condensed consolidated balance sheets were derived from the Audited Consolidated and Combined Annual Financial Statements but do 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 (the “NBA”) and the New York Rangers (the “Rangers”) of the National Hockey League (the “NHL”), 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.
Principles of Consolidation and Combination Principles of Consolidation and Combination
All significant intracompany accounts and balances within the Company’s consolidated businesses have been eliminated.
For the periods prior to the MSGE Distribution Date, the combined financial statements include certain assets and liabilities that were historically held at Sphere Entertainment’s corporate level but were specifically identifiable or otherwise attributable to the Company. Certain historical intercompany transactions between Sphere Entertainment and the Company have been included as components of Sphere Entertainment’s investment in the condensed consolidated and combined financial statements, as they are considered to be effectively settled upon effectiveness of the MSGE Distribution and were not historically settled in cash. Certain other historical intercompany transactions between Sphere Entertainment and the Company have been classified as related party, rather than intercompany, in the condensed consolidated and combined financial statements as they were historically settled in cash. Expenses related to corporate allocations from the Company to Sphere Entertainment prior to the MSGE Distribution are considered to be effectively settled in the condensed consolidated and combined financial statements at the time the transaction is recorded, with the offset recorded against Sphere Entertainment’s investment. See Note 14. Related Party Transactions, for further information on related party arrangements.
The Company disposed of its controlling interest in Boston Calling Events, LLC on December 2, 2022 (the “BCE Disposition”) and these condensed consolidated and combined financial statements reflect the results of operations of BCE until the BCE Disposition. See Note 3. Dispositions for further information on the BCE disposition.
Use of Estimates Use of Estimates
The preparation of the accompanying condensed consolidated and combined financial statements in conformity with GAAP requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the 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.
Recently Issued and Adopted Accounting Pronouncements Recently Issued and Adopted Accounting Pronouncements
Recently Issued Accounting Pronouncements
In November 2023, the 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 in Fiscal Year 2025 and is required to be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact of the additional disclosure requirements on the Company’s condensed consolidated and combined 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 useful in making capital allocation decisions. This standard will be effective for the Company in Fiscal Year 2026 and should be applied prospectively.
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.
v3.24.0.1
Revenue Recognition (Tables)
 6 Months Ended
Dec. 31, 2023
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 transfer of goods or services to the customer for the three and six months ended December 31, 2023 and 2022:
Three Months EndedSix Months Ended
December 31,December 31,
2023202220232022
Event-related and entertainment offerings (a)
$297,462 $238,888 $393,226 $341,678 
Sponsorship, signage, and suite licenses (b)
70,000 68,996 113,494 107,389 
Other (c)
9,575 15,347 10,083 18,462 
Total revenues from contracts with customers
377,037 323,231 516,803 467,529 
Revenues from Arena License Agreements, leases, and subleases
25,629 32,649 28,075 34,803 
Total revenues
$402,666 $355,880 $544,878 $502,332 
_________________
(a)    Event-related and entertainment 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 with Madison Square Garden Sports Corp. (together with its subsidiaries, as applicable, “MSG Sports”) and (ii) advertising commission revenues recognized under the advertising sales representation agreement (the “Networks Advertising Sales Representation Agreement”) between the Company and Sphere Entertainment’s subsidiary, MSGN Holdings, L.P. (“MSG Networks”). The Networks Advertising Sales Representation Agreement was terminated as of December 31, 2022.
In addition to the disaggregation of the Company’s revenue by major source based upon the timing of transfer of goods or services to the customer disclosed above, the following table disaggregates the Company’s revenues by type of goods or services in accordance with the required entity-wide disclosure requirements of ASC Subtopic 280-10-50-38 to 40, Segment Reporting, and the disaggregation of revenue required disclosures in accordance with ASC Subtopic 606-10-50-5, Revenue From Contracts with Customers-Overall-Disclosures, for the three and six months ended December 31, 2023 and 2022.

Three Months Ended
Six Months Ended
December 31,December 31,
2023202220232022
Ticketing and venue license fee revenues (a)
$222,341 $173,725 $287,509 $245,857 
Sponsorship and signage, suite, and advertising commission revenues (b)
87,441 92,174 134,004 137,308 
Food, beverage, and merchandise revenues
63,797 55,387 89,900 81,690 
Other3,458 1,945 5,390 2,674 
Total revenues from contracts with customers
377,037 323,231 516,803 467,529 
Revenues from Arena License Agreements, leases, and subleases
25,629 32,649 28,075 34,803 
Total revenues
$402,666 $355,880 $544,878 $502,332 
_________________
(a)    Amounts include ticket sales, including other ticket-related revenue, and venue license fees from the Company’s events such as (i) concerts, (ii) the presentation of the Christmas Spectacular and (iii) other live entertainment and sporting events.
(b)    Amounts include (i) revenues from sponsorship sales and representation agreements with MSG Sports and (ii) advertising commission revenues from MSG Networks until the termination of the Networks Advertising Sales Representation Agreement as of December 31, 2022.
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 December 31, 2023 and June 30, 2023:
As of
December 31,
2023		June 30,
2023
Receivables from contracts with customers, net (a)
$100,831 $69,295 
Contract assets, current (b)
$7,889 $11,254 
Deferred revenue, including non-current portion (c)
$236,349 $226,029 
    ________________
(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 December 31, 2023 and June 30, 2023, the Company’s receivables from contracts with customers above included $3,814 and $5,397, respectively, related to various related parties. See Note 14. 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 and six months ended December 31, 2023 relating to the deferred revenue balance as of June 30, 2023 was $65,980 and $135,710, respectively.
v3.24.0.1
Restructuring Charges (Tables)
 6 Months Ended
Dec. 31, 2023
Restructuring and Related Activities [Abstract]  
Restructuring and Related Costs Changes to the Company’s restructuring liability through December 31, 2023 were as follows:
Restructuring Liability
June 30, 2023
$2,530 
Restructuring charges (excluding share-based compensation expense)
8,458 
Payments
(2,476)
December 31, 2023$8,512 
v3.24.0.1
Equity Investments With Readily Determinable Fair Value (Tables)
 6 Months Ended
Dec. 31, 2023
Investments in and Advances to Affiliates [Abstract]  
Equity Securities With Readily Determinable Fair Value
The carrying fair value of these investments, which is reported under Other non-current assets in the accompanying condensed consolidated balance sheets as of December 31, 2023 and June 30, 2023, is as follows:
As of
December 31,
2023		June 30,
2023
Townsquare Class A common stock$6,158 $6,945 
Townsquare Class C common stock11,880 13,399 
DraftKings Class A common stock
— 11,297 
Total Equity Investments with Readily Determinable Fair Value$18,038 $31,641 
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 (expenses), net for the three and six months ended December 31, 2023 and 2022:
Three Months EndedSix Months Ended
December 31,December 31,
2023202220232022
Unrealized gain (loss) — Townsquare$3,143 $(32)$(2,306)$(3,015)
Unrealized loss — DraftKings— (2,512)— (188)
Gain from shares sold — DraftKings— — 1,548 1,489 
Total realized and unrealized gain (loss)
$3,143 $(2,544)$(758)$(1,714)
Supplemental information on realized gain:
Shares of common stock sold — DraftKings— — 425 200 
Cash proceeds from common stock sold — DraftKings$— $— $12,844 $3,819 
v3.24.0.1
Property and Equipment, Net (Tables)
 6 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment
As of December 31, 2023 and June 30, 2023, property and equipment, net consisted of the following:
As of
December 31,
2023		June 30,
2023
Land$62,768 $62,768 
Buildings1,008,051 999,205 
Equipment, furniture, and fixtures
355,909 351,596 
Leasehold improvements105,877 105,877 
Construction in progress (a)
13,734 2,828 
Total Property and equipment$1,546,339 $1,522,274 
Less: accumulated depreciation and amortization
(920,167)(893,386)
Property and equipment, net$626,172 $628,888 
_________________
(a)    In October 2023, the Company took possession of certain floors in the New York corporate office space and will be relocating from the space that the Company currently occupies to newly renovated office space within the same building. The Company was not involved in the design or construction of the new space for purposes of the Company’s build out prior to obtaining possession. The increase in construction in progress primarily relates to these build out costs incurred after possession. Upon obtaining possession of the space, the Company recognized an additional lease obligation of $96,334 and a right-of-use lease asset of $88,602, net of tenant improvement incentives received on possession date. While lease payments under the new lease agreement will be recognized as a lease expense on a straight-line basis over the lease term, the Company will begin paying full rent starting in the second half of Fiscal Year 2026 due to certain tenant incentives included in the arrangement. Base rent payments will increase every five years beginning in Fiscal Year 2031 in accordance with the terms of the lease.
v3.24.0.1
Goodwill and Intangible Assets (Tables)
 6 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Indefinite-Lived Intangible Assets
The Company’s indefinite-lived intangible assets as of December 31, 2023 and June 30, 2023 were as follows:
As of
December 31,
2023		June 30,
2023
Trademarks$61,881 $61,881 
Photographic related rights1,920 1,920 
Total indefinite-lived intangible assets$63,801 $63,801 
v3.24.0.1
Credit Facilities (Tables)
 6 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Schedule of Long-Term Debt Instruments The following table summarizes the presentation of the outstanding balances under the Company’s credit and other debt agreements as of December 31, 2023 and June 30, 2023:
As of
December 31,
2023		June 30,
2023
Current Portion
National Properties Term Loan Facility
$16,250 $16,250 
Current portion of long-term debt
$16,250 $16,250 
As of
December 31, 2023June 30, 2023
PrincipalUnamortized Deferred Financing CostsNetPrincipalUnamortized Deferred Financing CostsNet
Non-current Portion
National Properties Term Loan Facility
$617,500 $(11,228)$606,272 $625,625 $(12,845)$612,780 
National Properties Revolving Credit Facility
— (587)(587)17,100 — 17,100 
Other debt
— — — 304 — 304 
Long-term debt, net of deferred financing costs
$617,500 $(11,815)$605,685 $643,029 $(12,845)$630,184 
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 PaymentsLoan Principal Repayments
Six Months EndedSix Months Ended
December 31,December 31,
2023202220232022
National Properties Facilities
$27,424 $22,410 $98,225 $— 
The carrying value and fair value of the Company’s debt reported in the accompanying condensed consolidated balance sheets were as follows:
As of
December 31, 2023June 30, 2023
Carrying
Value (a)
Fair
Value
Carrying
Value (a)
Fair
Value
Liabilities:
National Properties Facilities
$633,750 $630,581 $658,975 $655,509 
Other debt— — 304 304 
Total Long-term debt$633,750 $630,581 $659,279 $655,813 
________________
(a)    The total carrying value of the Company’s debt as of December 31, 2023 and June 30, 2023 is equal to the current and non-current principal payments for the Company’s credit agreements excluding unamortized deferred financing costs of $11,815 and $12,845, respectively.
v3.24.0.1
Pension Plans and Other Postretirement Benefit Plans (Tables)
 6 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
Schedule of Net Benefit Costs
The following table presents components of net periodic benefit cost (benefit) for the Pension Plans and Postretirement Plan included in the accompanying condensed consolidated and combined statements of operations for the three and six months ended December 31, 2023 and 2022. Service cost is recognized in direct operating expenses and selling, general and administrative expenses. All other components of net periodic benefit cost (benefit) are reported in Other income (expense), net.
Pension PlansPostretirement Plan
Three Months EndedThree Months Ended
December 31,December 31,
2023202220232022
Service cost$17 $30 $6 $8 
Interest cost1,469 927 24 11 
Expected return on plan assets(1,091)(1,504)— — 
Recognized actuarial loss662 330 — 9 
Net periodic cost (benefit)
$1,057 $(217)$30 $28 
Pension PlansPostretirement Plan
Six Months EndedSix Months Ended
December 31,December 31,
2023202220232022
Service cost$34 $60 $12 $16 
Interest cost2,938 1,854 48 22 
Expected return on plan assets(2,182)(3,008)— — 
Recognized actuarial loss899 692 — 18 
Net periodic cost (benefit)
$1,689 $(402)$60 $56 
Defined Contribution Plan Disclosures
For the three and six months ended December 31, 2023 and 2022, expenses related to the Savings Plans and Union Savings Plan included in the accompanying condensed consolidated and combined statements of operations are as follows:
Three Months EndedSix Months Ended
December 31,December 31,
2023202220232022
Savings Plans$2,265 $1,008 $4,299 $2,186 
Union Savings Plan$82 $20 $132 $38 
Schedule of Defined Benefit Plans Disclosures
The following table summarizes amounts recognized related to the Deferred Compensation Plan in the condensed consolidated and combined balance sheets:
As of
December 31,
2023		June 30,
2023
Non-current assets (included in Other non-current assets)
$4,322 $2,954 
Non-current liabilities (included in Other non-current liabilities)
$(4,344)$(2,976)
v3.24.0.1
Share-based Compensation (Tables)
 6 Months Ended
Dec. 31, 2023
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 EndedSix Months Ended
December 31,December 31,
2023202220232022
Share-based compensation expense (a)
$7,773 $6,555 $13,950 $13,965 
Fair value of awards vested (b)
$2,750 $— $29,150 $2,867 
________________
(a)    The expense shown excludes $0 and $6,788 for the three and six months ended December 31, 2023, respectively, and $2,293 for both the three and six months ended December 31, 2022, that was reclassified to Restructuring charges in the condensed consolidated and combined statements of operations as detailed in Note 5. Restructuring 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 $412 and $12,229, and $0 and $1,147 were retained by the Company during the three and six months ended December 31, 2023 and 2022, respectively.
v3.24.0.1
Stockholders' Equity (Tables)
 6 Months Ended
Dec. 31, 2023
Equity [Abstract]  
Schedule of Accumulated Other Comprehensive Income (Loss)
The following table details the components of accumulated other comprehensive loss:
Pension Plans and Postretirement Plan
Three Months EndedSix Months Ended
December 31,December 31,
2023202220232022
Balance at beginning of period$(33,824)$(34,435)$(34,021)$(34,740)
Other comprehensive income:
Amounts reclassified from accumulated other comprehensive loss (a)
662 371 899 742 
Income tax expense(117)(65)(157)(131)
Other comprehensive income, net of income taxes
545 306 742 611 
Balance at end of period$(33,279)$(34,129)$(33,279)$(34,129)
________________
(a)    Amounts reclassified from accumulated other comprehensive loss represent the amortization of net actuarial loss included in net periodic benefit cost, which is reflected under Other income (expense), net in the accompanying condensed consolidated and combined statements of operations (see Note 11. Pension Plans and Other Postretirement Benefit Plans).
v3.24.0.1
Related Party Transactions (Tables)
 6 Months Ended
Dec. 31, 2023
Related Party Transactions [Abstract]  
Schedule of Related Party Transactions
The following table summarizes the composition and amounts of the transactions with the Company’s affiliates. The significant components of these amounts are discussed below. These amounts are reflected in revenues and operating expenses in the accompanying condensed consolidated and combined statements of operations for the three and six months ended December 31, 2023 and 2022:
Three MonthsSix Months Ended
December 31,December 31,
2023202220232022
Revenues$33,630 $49,630 $38,789 $55,188 
Operating expenses (credits):
Revenue sharing expenses$6,315 $7,099 $7,467 $8,286 
Reimbursement under Arena License Arrangements(7,878)(9,357)(8,307)(9,850)
Cost reimbursement from MSG Sports(9,527)(9,475)(19,388)(18,992)
Cost reimbursement from Sphere Entertainment (after April 20, 2023) and Corporate allocations to Sphere Entertainment (before April 20, 2023)(26,341)(38,219)(56,677)(73,967)
Other operating expenses, net2,142 2,460 2,695 3,355 
Total operating expenses (credits), net (a)
$(35,289)$(47,492)$(74,210)$(91,168)
_________________
(a)    Of the total operating expenses (credits), net, $1,246 and $2,556 for the three and six months ended December 31, 2023 and $(901) and $(525) for the three and six months ended December 31, 2022, respectively, are included in direct operating expenses in the accompanying condensed consolidated and combined statements of operations, and $(36,535) and $(76,766) for the three and six months ended December 31, 2023 and $(46,591) and $(90,643) for the three and six months ended December 31, 2022, respectively, are included in selling, general, and administrative expenses.
v3.24.0.1
Additional Financial Information (Tables)
 6 Months Ended
Dec. 31, 2023
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
December 31,
2023		June 30,
2023
Cash and cash equivalents$35,229 $76,089 
Restricted cash2,343 8,266 
Total cash, cash equivalents, and restricted cash
$37,572 $84,355 
Schedule of Other Current Assets
Prepaid expenses and other current assets consisted of the following:
As of
December 31,
2023		June 30,
2023
Prepaid expenses$52,595 $58,588 
Current contract assets7,889 11,254 
Inventory (a)
4,815 2,557 
Other4,109 5,163 
Total prepaid expenses and other current assets$69,408 $77,562 
_________________
(a)    Inventory is mostly comprised of food and liquor for venues.
Schedule of Other Assets, Noncurrent
Other non-current assets consisted of the following:
As of
December 31,
2023		June 30,
2023
Unbilled lease receivable (a)
$71,793 $67,325 
Equity investments with readily determinable fair value (b)
18,038 31,641 
Deferred costs4,254 4,120 
Other6,704 5,270 
Total other non-current assets$100,789 $108,356 
_________________
(a)    Unbilled lease receivable relates to the amounts recorded under the Arena License Agreement.
(b)     See Note 6. Equity investments with readily determinable fair value for more information on long-term investments.
Other Current Liabilities
Accounts payable, accrued and other current liabilities consisted of the following:
As of
December 31,
2023		June 30,
2023
Accounts payable$34,676 $15,628 
Accrued payroll and employee related liabilities50,566 64,532 
Cash due to promoters56,862 90,538 
Accrued expenses55,152 44,027 
Total accounts payable, accrued and other current liabilities$197,256 $214,725 
Schedule of Other Nonoperating Income (Expense)
Other income (expense), net includes the following:
Three Months EndedSix Months Ended
December 31,December 31,
2023202220232022
Gains from shares sold — DraftKings$— $— $1,548 $1,489 
Net unrealized gains (loss) on equity investments with readily determinable fair value
3,143 (2,544)(2,306)(3,203)
Other(297)372 (867)428 
Total other income (expense), net
$2,846 $(2,172)$(1,625)$(1,286)
v3.24.0.1
Description of Business and Basis of Presentation (Details) - segment
 6 Months Ended
Dec. 31, 2023
Apr. 20, 2023
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]    
Number of reportable segments 1  
Madison Square Garden Entertainment | Spinoff    
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]    
Noncontrolling interest, ownership percentage by noncontrolling owners   33.00%
Madison Square Garden Entertainment | Spinoff | MSG Stockholders    
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]    
Noncontrolling interest, ownership percentage by parent   67.00%
v3.24.0.1
Dispositions (Details) - Disposal Group, Disposed of by Sale, Not Discontinued Operations - USD ($)
$ in Thousands
Dec. 30, 2022
Dec. 02, 2022
BCE    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]    
Disposal group, not discontinued operation, gain (loss) on disposal   $ 8,744
The Aircraft    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]    
Disposal group, not discontinued operation, gain (loss) on disposal $ (4,383)  
Consideration to be received for disposal $ 20,375  
v3.24.0.1
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Disaggregation of Revenue [Line Items]        
Revenue from contract with customer $ 377,037 $ 323,231 $ 516,803 $ 467,529
Revenues from Arena License Agreements, leases, and subleases 25,629 32,649 28,075 34,803
Revenues [1] 402,666 355,880 544,878 502,332
Event-related and entertainment offerings | Transferred at Point in Time        
Disaggregation of Revenue [Line Items]        
Revenue from contract with customer 297,462 238,888 393,226 341,678
Sponsorship, signage, and suite licenses | Transferred over Time        
Disaggregation of Revenue [Line Items]        
Revenue from contract with customer 70,000 68,996 113,494 107,389
Other        
Disaggregation of Revenue [Line Items]        
Revenue from contract with customer 3,458 1,945 5,390 2,674
Other | Transferred at Point in Time        
Disaggregation of Revenue [Line Items]        
Revenue from contract with customer 9,575 15,347 10,083 18,462
Ticketing and venue license fee revenues        
Disaggregation of Revenue [Line Items]        
Revenue from contract with customer 222,341 173,725 287,509 245,857
Sponsorship and signage, suite, and advertising commission revenues        
Disaggregation of Revenue [Line Items]        
Revenue from contract with customer 87,441 92,174 134,004 137,308
Food, beverage, and merchandise revenues        
Disaggregation of Revenue [Line Items]        
Revenue from contract with customer $ 63,797 $ 55,387 $ 89,900 $ 81,690
[1] See Note 14. Related Party Transactions for further information on related party arrangements.
v3.24.0.1
Revenue Recognition - Contract Balances (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2023
Dec. 31, 2023
Jun. 30, 2023
Capitalized Contract Cost [Line Items]      
Contract with customer, deferred revenue, revenue recognized $ 65,980 $ 135,710  
Receivables from contracts with customers, net      
Capitalized Contract Cost [Line Items]      
Contracts with customers, assets, net 100,831 100,831 $ 69,295
Contract assets, current      
Capitalized Contract Cost [Line Items]      
Contracts with customers, assets, net 7,889 7,889 11,254
Deferred revenue, including non-current portion      
Capitalized Contract Cost [Line Items]      
Deferred revenue, including non-current portion 236,349 236,349 226,029
Other receivables, net, current | Related Party      
Capitalized Contract Cost [Line Items]      
Contracts with customers, assets, net $ 3,814 $ 3,814 $ 5,397
v3.24.0.1
Revenue Recognition - Remaining Performance Obligation (Details)
$ in Thousands
Dec. 31, 2023
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, amount $ 555,000
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, percentage 49.00%
Revenue, remaining performance obligation, expected timing of satisfaction, period 2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, percentage 36.00%
Revenue, remaining performance obligation, expected timing of satisfaction, period 2 years
v3.24.0.1
Restructuring Charges - Additional Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Restructuring and Related Activities [Abstract]        
Restructuring charges $ 888 $ 7,359 $ 12,441 $ 7,359
Share-based compensation expense $ 0   $ 6,788  
v3.24.0.1
Restructuring Charges - Restructuring Liability Rollforward (Details)
$ in Thousands
 6 Months Ended
Dec. 31, 2023
USD ($)
Restructuring Reserve [Roll Forward]  
Restructuring reserve, beginning balance $ 2,530
Restructuring charges (excluding share-based compensation expense) 8,458
Payments (2,476)
Restructuring reserve, ending balance $ 8,512
v3.24.0.1
Equity Investments With Readily Determinable Fair Value - Equity Securities With Readily Determinable Fair Value (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Jun. 30, 2023
Schedule of Investments [Line Items]    
Equity investments with readily determinable fair value $ 18,038 $ 31,641
Townsquare | Common Stock | Common Class A    
Schedule of Investments [Line Items]    
Equity investments with readily determinable fair value 6,158 6,945
Townsquare | Common Stock | Townsquare Class C common stock    
Schedule of Investments [Line Items]    
Equity investments with readily determinable fair value 11,880 13,399
Draftkings | Common Stock | Common Class A    
Schedule of Investments [Line Items]    
Equity investments with readily determinable fair value $ 0 $ 11,297
v3.24.0.1
Equity Investments With Readily Determinable Fair Value - Schedule With Readily Determinable Fair Values (Details) - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Schedule of Investments [Line Items]        
Unrealized gain (loss) $ 3,143 $ (2,544) $ (2,306) $ (3,203)
Total realized and unrealized gain (loss) 3,143 (2,544) (758) (1,714)
Supplemental information on realized gain:        
Cash proceeds from common stock sold — DraftKings     13,484 3,694
Townsquare        
Schedule of Investments [Line Items]        
Unrealized gain (loss) 3,143 (32) (2,306) (3,015)
Draftkings        
Schedule of Investments [Line Items]        
Unrealized gain (loss) 0 (2,512) 0 (188)
Gains from shares sold — DraftKings $ 0 $ 0 $ 1,548 $ 1,489
Supplemental information on realized gain:        
Shares of common stock sold - DraftKings (in shares) 0 0 425 200
Cash proceeds from common stock sold — DraftKings $ 0 $ 0 $ 12,844 $ 3,819
v3.24.0.1
Property and Equipment, Net (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Oct. 31, 2023
Jun. 30, 2023
Property, Plant and Equipment [Line Items]            
Property and equipment $ 1,546,339   $ 1,546,339     $ 1,522,274
Less accumulated depreciation and amortization (920,167)   (920,167)     (893,386)
Property and equipment, net 626,172   626,172     628,888
Right-of-use lease assets 310,219   310,219     235,790
Lessee, operating lease, lease not yet commenced, rent payment increase, term         5 years  
Depreciation and amortization 13,205 $ 15,281 26,789 $ 30,817    
New York Corporate Office Space            
Property, Plant and Equipment [Line Items]            
Operating lease, liability         $ 96,334  
Right-of-use lease assets         $ 88,602  
Land            
Property, Plant and Equipment [Line Items]            
Property and equipment 62,768   62,768     62,768
Buildings            
Property, Plant and Equipment [Line Items]            
Property and equipment 1,008,051   1,008,051     999,205
Equipment, furniture, and fixtures            
Property, Plant and Equipment [Line Items]            
Property and equipment 355,909   355,909     351,596
Leasehold improvements            
Property, Plant and Equipment [Line Items]            
Property and equipment 105,877   105,877     105,877
Construction in progress            
Property, Plant and Equipment [Line Items]            
Property and equipment $ 13,734   $ 13,734     $ 2,828
v3.24.0.1
Goodwill and Intangible Assets - Additional Information (Details) - USD ($)
 3 Months Ended 6 Months Ended
Dec. 31, 2023
Sep. 30, 2023
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]            
Goodwill $ 69,041,000     $ 69,041,000   $ 69,041,000
Goodwill and intangible asset impairment   $ 0        
Amortization of intangible assets $ 0   $ 305,000 $ 0 $ 754,000  
v3.24.0.1
Goodwill and Intangible Assets - Schedule of Indefinite-Lived Intangible Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Jun. 30, 2023
Indefinite-Lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets (excluding goodwill) $ 63,801 $ 63,801
Trademarks    
Indefinite-Lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets (excluding goodwill) 61,881 61,881
Photographic related rights    
Indefinite-Lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets (excluding goodwill) $ 1,920 $ 1,920
v3.24.0.1
Commitments and Contingencies (Details) - USD ($)
shares in Thousands, $ in Thousands
Aug. 09, 2023
Jul. 14, 2023
Jun. 30, 2023
Apr. 20, 2023
Other Commitments [Line Items]        
Contractual obligation     $ 926,466  
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
v3.24.0.1
Credit Facilities - Debt Outstanding and Deferred Financing Costs (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Jun. 30, 2023
Debt Instrument [Line Items]    
Long-term debt, current $ 16,250 $ 16,250
Principal 617,500 643,029
Unamortized Deferred Financing Costs (11,815) (12,845)
Net 605,685 630,184
Secured Debt    
Debt Instrument [Line Items]    
Long-term debt, current 16,250 16,250
Other Debt Obligations    
Debt Instrument [Line Items]    
Principal 0 304
Unamortized Deferred Financing Costs 0 0
Net 0 304
National Properties Term Loan Facility | Line of Credit | Secured Debt    
Debt Instrument [Line Items]    
Long-term debt, current 16,250 16,250
Principal 617,500 625,625
Unamortized Deferred Financing Costs (11,228) (12,845)
Net 606,272 612,780
National Properties Revolving Credit Facility | Line of Credit | Revolving Credit Facility    
Debt Instrument [Line Items]    
Principal 0 17,100
Unamortized Deferred Financing Costs $ (587) 0
Net   $ 17,100
v3.24.0.1
Credit Facilities - Narrative (Details) - USD ($)
$ in Thousands
Sep. 15, 2023
Jun. 30, 2022
Dec. 31, 2023
Jun. 30, 2023
Debt Instrument [Line Items]        
Principal     $ 617,500 $ 643,029
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     8.46%  
National Properties Facilities | Debt Instrument, Redemption, Period One | Measurement Input, Leverage Ratio | MSG Entertainment Group, LLC. and MSG National Properties And Subsidiaries        
Debt Instrument [Line Items]        
Debt instrument, measurement input     2  
National Properties Facilities | Debt Instrument, Redemption, Period Two | Measurement Input, Leverage Ratio | MSG Entertainment Group, LLC. and MSG National Properties And Subsidiaries        
Debt Instrument [Line Items]        
Debt instrument, measurement input     2.5  
National Properties Facilities | Debt Instrument, Redemption, Period Three | Measurement Input, Leverage Ratio | MSG Entertainment Group, LLC. and MSG National Properties And Subsidiaries        
Debt Instrument [Line Items]        
Debt instrument, measurement input     6  
National Properties Facilities | Debt Instrument, Redemption, Period Four | Measurement Input, Leverage Ratio | MSG Entertainment Group, LLC. and MSG National Properties And Subsidiaries        
Debt Instrument [Line Items]        
Debt instrument, measurement input     5.5  
National Properties Facilities | Debt Instrument, Redemption, Period Five | Measurement Input, Leverage Ratio | MSG Entertainment Group, LLC. and MSG National Properties And Subsidiaries        
Debt Instrument [Line Items]        
Debt instrument, measurement input     4.5  
National Properties Facilities | Secured Overnight Financing Rate (SOFR) | MSG Entertainment Group, LLC. and MSG National Properties And Subsidiaries        
Debt Instrument [Line Items]        
Basis spread on variable rate   0.10%    
National Properties Facilities | Minimum | Revolving Credit Facility | MSG Entertainment Group, LLC. and MSG National Properties And Subsidiaries        
Debt Instrument [Line Items]        
Commitment fee percentage   0.30%    
National Properties Facilities | Minimum | Base Rate | MSG Entertainment Group, LLC. and MSG National Properties And Subsidiaries        
Debt Instrument [Line Items]        
Basis spread on variable rate   1.50%    
National Properties Facilities | Minimum | Secured Overnight Financing Rate (SOFR) | MSG Entertainment Group, LLC. and MSG National Properties And Subsidiaries        
Debt Instrument [Line Items]        
Basis spread on variable rate   2.50%    
National Properties Facilities | Maximum | Revolving Credit Facility | MSG Entertainment Group, LLC. and MSG National Properties And Subsidiaries        
Debt Instrument [Line Items]        
Commitment fee percentage   0.50%    
National Properties Facilities | Maximum | Base Rate | MSG Entertainment Group, LLC. and MSG National Properties And Subsidiaries        
Debt Instrument [Line Items]        
Basis spread on variable rate   2.50%    
National Properties Facilities | Maximum | Secured Overnight Financing Rate (SOFR) | MSG Entertainment Group, LLC. and MSG National Properties And Subsidiaries        
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 | Line of Credit | Revolving Credit Facility | MSG Entertainment Group, LLC. and MSG National Properties And Subsidiaries        
Debt Instrument [Line Items]        
Debt instrument term   5 years    
Face amount $ 150,000 $ 100    
Debt instrument, increase 50,000      
Line of credit facility, remaining borrowing capacity     $ 132,409  
National Properties Facilities | Line of Credit | Secured Debt | MSG Entertainment Group, LLC. and MSG National Properties And Subsidiaries        
Debt Instrument [Line Items]        
Debt instrument term   5 years    
Face amount   $ 650    
National Properties Facilities | Line of Credit | Letter 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     17,591  
National Properties Term Loan Facility | Line of Credit | Secured Debt        
Debt Instrument [Line Items]        
Principal     $ 617,500 $ 625,625
v3.24.0.1
Credit Facilities - Schedule of Credit Facilities (Details) - USD ($)
$ in Thousands
 6 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Jun. 30, 2023
Debt Instrument [Line Items]      
Total long-term debt, carrying value $ 633,750   $ 659,279
Total long-term debt, fair value 630,581   655,813
Debt issuance costs, net 11,815   12,845
National Properties Term Loan Facility | MSG Entertainment Group, LLC. and MSG National Properties And Subsidiaries      
Debt Instrument [Line Items]      
Interest Payments 27,424 $ 22,410  
Loan Principal Repayments 98,225 $ 0  
National Properties Term Loan Facility | Debt      
Debt Instrument [Line Items]      
Carrying Value 633,750   658,975
Fair Value 630,581   655,509
Other Debt Obligations | Debt      
Debt Instrument [Line Items]      
Carrying Value 0   304
Fair Value $ 0   $ 304
v3.24.0.1
Pension Plans and Other Postretirement Benefit Plans - Schedule of Net Periodic Benefit Cost (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Defined Benefit Plan Disclosure [Line Items]        
Recognized actuarial loss $ (343) $ (160) $ (198) $ (6)
Pension Plans        
Defined Benefit Plan Disclosure [Line Items]        
Service cost 17 30 34 60
Interest cost 1,469 927 2,938 1,854
Expected return on plan assets (1,091) (1,504) (2,182) (3,008)
Recognized actuarial loss 662 330 899 692
Net periodic cost (benefit) 1,057 (217) 1,689 (402)
Postretirement Plan        
Defined Benefit Plan Disclosure [Line Items]        
Service cost 6 8 12 16
Interest cost 24 11 48 22
Expected return on plan assets 0 0 0 0
Recognized actuarial loss 0 9 0 18
Net periodic cost (benefit) $ 30 $ 28 $ 60 $ 56
v3.24.0.1
Pension Plans and Other Postretirement Benefit Plans - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]        
Deferred compensation arrangement with individual, compensation expense $ 343 $ 160 $ 198 $ 6
Defined benefit plan, amortization of gain (loss) 343 $ 160 198 $ 6
Cash Balance Plan        
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]        
Defined benefit plan, plan assets, contributions by employer $ 0   $ 12,250  
v3.24.0.1
Pension Plans and Other Postretirement Benefit Plans - Schedule of Defined Contribution Plans (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Savings Plans        
Defined Contribution Plan Disclosure [Line Items]        
Defined contribution plan (benefit) cost $ 2,265 $ 1,008 $ 4,299 $ 2,186
Union Savings Plan        
Defined Contribution Plan Disclosure [Line Items]        
Defined contribution plan (benefit) cost $ 82 $ 20 $ 132 $ 38
v3.24.0.1
Pension Plans and Other Postretirement Benefit Plans - Schedule of Deferred Compensation Plan Amounts Recognized On Balance Sheet (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Jun. 30, 2023
Retirement Benefits [Abstract]    
Non-current assets (included in Other non-current assets) $ 4,322 $ 2,954
Non-current liabilities (included in Other non-current liabilities) $ (4,344) $ (2,976)
v3.24.0.1
Share-based Compensation - Restricted Stock Units Activity (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Share-based compensation expense $ 0   $ 6,788  
Severance costs 0 $ 2,293 6,788 $ 2,293
Tax withholding associated with shares issued for share-based compensation 413   12,247  
Performance Stock Units and Restricted Stock Units        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Share-based compensation expense 7,773 6,555 13,950 13,965
Fair value of awards vested 2,750 0 29,150 2,867
Tax withholding associated with shares issued for share-based compensation $ 412 $ 0 $ 12,229 $ 1,147
v3.24.0.1
Share-based Compensation - Narrative (Details)
$ in Thousands
 3 Months Ended 6 Months Ended
Apr. 20, 2023
shares
Dec. 31, 2023
USD ($)
shares
Dec. 31, 2022
shares
Dec. 31, 2023
USD ($)
plan
shares
Dec. 31, 2022
shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]          
Number of share-based compensation plans | plan       2  
Diluted (in shares) [1]   48,293,000 51,768,000 49,168,000 51,768,000
Incremental common shares attributable to dilutive effect of share-based payment arrangements (in shares)   264   213  
Sphere Entertainment Stockholders          
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]          
Stock issued during period, shares, new issues (in shares) 51,768,000        
Restricted Stock Units And Stock Options          
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]          
Antidilutive securities excluded from computation of earnings per share (in shares)   727   740  
Restricted Stock Units (RSUs)          
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]          
Awards granted (in shares)       620,000 66,000
Awards vested (in shares)       624,000 40,000
Performance Shares          
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]          
Awards granted (in shares)       506,000 60,000
Awards vested (in shares)       273,000 11,000
Employee | Performance Stock Units and Restricted Stock Units          
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]          
Unrecognized compensation cost | $   $ 46,564   $ 46,564  
Period for recognition       2 years 1 month 6 days  
[1] On April 20, 2023, 51,768 common shares were distributed to Sphere Entertainment Co. stockholders in the MSGE Distribution (as defined in Note 1. Description of Business and Basis of Presentation). This share amount is being utilized for the calculation of basic and diluted loss per common share attributable to Madison Square Garden Entertainment Corp.’s stockholders for the three and six months ended December 31, 2022 because the Company was not a standalone public company prior to the MSGE Distribution.
v3.24.0.1
Stockholders’ Equity - Additional Information (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Jun. 30, 2023
Mar. 29, 2023
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Treasury stock at cost (in shares) 4,365,000 840,000  
Treasury stock, common, value $ 140,512 $ 25,000  
Common Class A      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Stock repurchase program, authorized amount     $ 250,000
Treasury stock at cost (in shares) 3,525    
Treasury stock, common, value $ 115,512    
Stock repurchase program, remaining authorized repurchase amount $ 110    
v3.24.0.1
Stockholders’ Equity - Accumulated Other Comprehensive Income Rollforward (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]        
Balance at the beginning of the period $ (235,201) $ 89,825 $ (69,472) $ (1,589)
Other comprehensive income:        
Balance at the end of the period (102,047) 98,889 (102,047) 98,889
Accumulated Other Comprehensive Loss        
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]        
Balance at the beginning of the period (33,824) (34,435) (34,021) (34,740)
Other comprehensive income:        
Amounts reclassified from accumulated other comprehensive loss 662 371 899 742
Income tax expense (117) (65) (157) (131)
Other comprehensive income, net of income taxes 545 306 742 611
Balance at the end of the period $ (33,279) $ (34,129) $ (33,279) $ (34,129)
v3.24.0.1
Related Party Transactions - Narrative (Details) - USD ($)
$ in Thousands
 1 Months Ended 3 Months Ended 6 Months Ended
Dec. 31, 2023
Aug. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Jun. 30, 2023
Apr. 19, 2023
Related Party Transaction [Line Items]                
Principal $ 617,500   $ 617,500   $ 617,500   $ 643,029  
Revenues [1]     402,666 $ 355,880 544,878 $ 502,332    
Other Debt Obligations                
Related Party Transaction [Line Items]                
Principal 0   0   0   304  
605 LLC | Audience Measurement And Data Analytics Services                
Related Party Transaction [Line Items]                
Related party transaction, amounts of transaction   $ 750            
MSG Sports | Merchandise Sales Revenue Sharing Arrangement                
Related Party Transaction [Line Items]                
Revenues     2,102 2,176 2,298 2,291    
MSG Sports | Sponsorship Sales And Service Representation Agreements                
Related Party Transaction [Line Items]                
Revenues     5,506 6,031 8,269 8,564    
MSG Networks | Networks Advertising Sales Representation Agreement                
Related Party Transaction [Line Items]                
Revenues       8,424   8,802    
Chief Executive Officer | 605 LLC | Audience Measurement And Data Analytics Services                
Related Party Transaction [Line Items]                
Related party transaction, amounts of transaction     0 65 34 135    
Related Party                
Related Party Transaction [Line Items]                
Revenue not from contract with customer, other     24,529 31,825 25,853 33,149    
Revenues     33,630 49,630 38,789 55,188    
Sublease income     738 527 1,497 1,222    
Related Party | Eden Loan Agreement                
Related Party Transaction [Line Items]                
Interest and fee income, loans and leases     0 $ 902 0 $ 1,804    
Related Party | 605 LLC                
Related Party Transaction [Line Items]                
Subsidiary, related party contract agreement, term   3 years            
Related Party | MSG Sports | Other Debt Obligations                
Related Party Transaction [Line Items]                
Principal $ 0   $ 0   $ 0   $ 304  
Related Party | Sphere Entertainment | Eden Loan Agreement | Secured Overnight Financing Rate (SOFR)                
Related Party Transaction [Line Items]                
Basis spread on variable rate 3.50%              
Related Party | Sphere Entertainment | Eden Loan Agreement | Notes Payable, Other Payables                
Related Party Transaction [Line Items]                
Notes receivable, maximum lending capacity               $ 60
Dolan Family Group                
Related Party Transaction [Line Items]                
Noncontrolling interest, ownership percentage by parent 64.00%   64.00%   64.00%      
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%   100.00%   100.00%      
Dolan Family Group | Common Class A                
Related Party Transaction [Line Items]                
Noncontrolling interest, ownership percentage by parent 4.80%   4.80%   4.80%      
[1] See Note 14. Related Party Transactions for further information on related party arrangements.
v3.24.0.1
Related Party Transactions - Schedule of Related Party Transactions by Type (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Related Party Transaction [Line Items]        
Revenues [1] $ 402,666 $ 355,880 $ 544,878 $ 502,332
Operating expenses (credits):        
Operating income 137,423 113,443 103,999 102,134
Related party expense [1] 202,761 180,603 304,438 282,265
Selling, general and administrative expenses [1] 48,389 43,301 97,211 83,415
Related Party        
Related Party Transaction [Line Items]        
Revenues 33,630 49,630 38,789 55,188
Operating expenses (credits):        
Operating income (35,289) (47,492) (74,210) (91,168)
Related party expense 1,246 (901) 2,556 (525)
Selling, general and administrative expenses 36,535 46,591 76,766 90,643
Related Party | Revenue sharing expenses        
Operating expenses (credits):        
Related party costs and expenses 6,315 7,099 7,467 8,286
Related Party | Reimbursement under Arena License Arrangements        
Operating expenses (credits):        
Related party costs and expenses (7,878) (9,357) (8,307) (9,850)
Related Party | Cost reimbursement from MSG Sports        
Operating expenses (credits):        
Related party costs and expenses (9,527) (9,475) (19,388) (18,992)
Related Party | Cost reimbursement from Sphere Entertainment (after April 20, 2023) and Corporate allocations to Sphere Entertainment (before April 20, 2023)        
Operating expenses (credits):        
Related party costs and expenses (26,341) (38,219) (56,677) (73,967)
Related Party | Other operating expenses, net        
Operating expenses (credits):        
Related party costs and expenses $ 2,142 $ 2,460 $ 2,695 $ 3,355
[1] See Note 14. Related Party Transactions for further information on related party arrangements.
v3.24.0.1
Additional Financial Information - Schedule of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Jun. 30, 2023
Dec. 31, 2022
Jun. 30, 2022
Additional Financial Information [Abstract]        
Cash and cash equivalents $ 35,229 $ 76,089    
Restricted cash 2,343 8,266    
Total cash, cash equivalents, and restricted cash $ 37,572 $ 84,355 $ 153,746 $ 62,573
v3.24.0.1
Additional Financial Information - Schedule of Current Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Jun. 30, 2023
Additional Financial Information [Abstract]    
Prepaid expenses $ 52,595 $ 58,588
Current contract assets 7,889 11,254
Inventory 4,815 2,557
Other 4,109 5,163
Total prepaid expenses and other current assets $ 69,408 $ 77,562
v3.24.0.1
Additional Financial Information - Schedule of Other Noncurrent Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Jun. 30, 2023
Additional Financial Information [Abstract]    
Unbilled lease receivable $ 71,793 $ 67,325
Equity investments with readily determinable fair value 18,038 31,641
Deferred costs 4,254 4,120
Other 6,704 5,270
Total other non-current assets $ 100,789 $ 108,356
v3.24.0.1
Additional Financial Information - Schedule of Current Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Jun. 30, 2023
Additional Financial Information [Abstract]    
Accounts payable $ 34,676 $ 15,628
Accrued payroll and employee related liabilities 50,566 64,532
Cash due to promoters 56,862 90,538
Accrued expenses 55,152 44,027
Total accounts payable, accrued and other current liabilities $ 197,256 $ 214,725
v3.24.0.1
Additional Financial Information - Schedule of Other Income (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Compensating Balances [Line Items]        
Net unrealized gains (loss) on equity investments with readily determinable fair value $ 3,143 $ (2,544) $ (2,306) $ (3,203)
Other (297) 372 (867) 428
Total other income (expense), net 2,846 (2,172) (1,625) (1,286)
Draftkings        
Compensating Balances [Line Items]        
Gains from shares sold — DraftKings 0 0 1,548 1,489
Net unrealized gains (loss) on equity investments with readily determinable fair value $ 0 $ (2,512) $ 0 $ (188)
v3.24.0.1
Additional Financial Information - Additional Information (Details) - USD ($)
$ in Thousands
 6 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Additional Financial Information [Abstract]    
Income taxes paid $ 58  
Income tax refunds, net of payments   $ 2,031
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