XML 37 R15.htm IDEA: XBRL DOCUMENT
v3.24.2.u1

Revenue Recognition | 12 Months Ended
--- | ---
Jun. 30, 2024
Revenue from Contract with Customer [Abstract] |
Revenue Recognition | Revenue Recognition For Fiscal Years 2024, 2023 and 2022, all revenue recognized in the consolidated 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 sublease arrangements as disclosed below. In Fiscal Years 2024, 2023, 2022, the Company did not have any material provisions for credit losses on receivables or contract assets arising from contracts with customers. Sphere Segment The Sphere segment earns revenue primarily from ticket sales to our audiences for The Sphere Experience, license fees for our venue paid by third-party promoters or licensees in connection with events that we do not produce or promote/co-promote, sponsorships and signage, advertising on the Exosphere, suite license fees at Sphere, facility and ticketing fees, concessions, and the sale of merchandise. MSG Networks Segment The MSG Networks segment generates revenues principally from distribution fees, as well as from the sale of advertising. Distribution revenue includes both affiliation fee revenue earned from fees charged to cable, satellite, fiber-optic and other platforms (“Distributors”) for the right to carry the Company’s networks as well as revenue earned from subscriptions and single game purchases on MSG+, the Company’s DTC and authenticated streaming product. Advertising revenue is largely derived from the sale of inventory in MSG Networks’ live professional sports programming, and as such, a significant share of this revenue has historically been earned in the second and third fiscal quarters. The performance obligation under affiliation agreements with Distributors is satisfied as MSG Networks provides its programming over the term of the agreement. Media related revenue as presented below includes both distribution revenue earned from Distributors for the right to carry the Company’s networks as well as revenue earned from subscriptions and single game purchases on MSG+. Substantially all of MSG Networks’ affiliation agreements are sales-based and usage-based royalty arrangements; revenue is recognized as the sale or usage occurs. The transaction price is represented by affiliation fees that are generally based upon contractual rates applied to the number of the Distributor’s subscribers who receive or can receive MSG Networks programming. Such subscriber information is generally not received until after the close of the reporting period, and in these cases, the Company estimates the number of subscribers. Historical adjustments to recorded estimates have not been material. The MSG Networks segment also generates advertising revenue primarily through the sale of commercial time and other advertising inventory during its live professional sports programming. In general, these advertising arrangements either do not exceed one year or are primarily multi-year media banks, the elements of which are agreed upon each year. Advertising revenue is recognized as advertising is aired. In certain advertising arrangements, the Company guarantees specified viewer ratings for its programming. In such cases, the promise to deliver the guaranteed viewer ratings by airing the advertising represents MSG Networks’ performance obligation. A contract liability is recognized as deferred revenue to the extent any guaranteed viewer ratings are not met. This permits the customer to exercise a contractual right for additional advertising time. The related deferred revenue is subsequently recognized as revenue either when MSG Networks provides the required additional advertising time, or additional performance requirements become remote, which may be at the time the guarantee obligation contractually expires. Disaggregation of Revenue The following tables disaggregate the Company’s revenue by major source and reportable segment based upon the timing of transfer of goods or services to the customer for Fiscal Years 2024, 2023 and 2022:
|  | Year Ended June 30, 2024
|  | Sphere |  | MSG Networks |  |  |  |  | Total
Event-related (a) |  | $ | 420,327 |  |  | $ | — |  |  |  |  |  | $ | 420,327 |
Sponsorship, signage, Exosphere advertising, and suite licenses (b) |  | 68,876 |  |  | 2,178 |  |  |  |  |  | 71,054 |
Media related, primarily from affiliation agreements (b) |  | — |  |  | 521,611 |  |  |  |  |  | 521,611 |
Other |  | 4,928 |  |  | 5,941 |  |  |  |  |  | 10,869 |
Total revenues from contracts with customers |  | $ | 494,131 |  |  | $ | 529,730 |  |  |  |  |  | $ | 1,023,861 |
Revenues from subleases |  | 3,028 |  |  | — |  |  |  |  |  | 3,028 |
Total revenues |  | $ | 497,159 |  |  | $ | 529,730 |  |  |  |  |  | $ | 1,026,889 |
|  | Year Ended June 30, 2023
|  | Sphere |  | MSG Networks |  |  |  |  |  | Total
Sponsorship, signage, Exosphere advertising, and suite licenses (b) |  | $ | — |  |  | $ | 6,990 |  |  |  |  |  |  | $ | 6,990 |
Media related, primarily from affiliation agreements (b) |  | — |  |  | 558,362 |  |  |  |  |  |  | 558,362 |
Other |  | — |  |  | 5,869 |  |  |  |  |  |  | 5,869 |
Total revenues from contracts with customers |  | $ | — |  |  | $ | 571,221 |  |  |  |  |  |  | $ | 571,221 |
Revenues from subleases |  | 2,610 |  |  | — |  |  |  |  |  |  | 2,610 |
Total revenues |  | $ | 2,610 |  |  | $ | 571,221 |  |  |  |  |  |  | $ | 573,831 |
|  | Year Ended June 30, 2022
|  | Sphere |  | MSG Networks |  |  |  |  | Total
Sponsorship, signage, Exosphere advertising, and suite licenses (b) |  | $ | — |  |  | $ | 6,470 |  |  |  |  |  | $ | 6,470 |
Media related, primarily from affiliation agreements (b) |  | — |  |  | 596,032 |  |  |  |  |  | 596,032 |
Other |  | — |  |  | 5,653 |  |  |  |  |  | 5,653 |
Total revenues from contracts with customers |  | $ | — |  |  | $ | 608,155 |  |  |  |  |  | $ | 608,155 |
Revenues from subleases |  | 1,900 |  |  | — |  |  |  |  |  | 1,900 |
Total revenues |  | $ | 1,900 |  |  | $ | 608,155 |  |  |  |  |  | $ | 610,055 |
_________________ (a) Event-related revenues consists of (i) ticket sales and other revenue directly related to the exhibition of the Sphere Experience, (ii) ticket sales and other ticket-related revenues to other events at our venue, (iii) venue license fees from third-party promoters, and (iv) food, beverage and merchandise sales. Event-related revenues are recognized at a point in time. As such, these revenues have been included in the same category in the table above. (b) See Note 2. Summary of Significant Accounting Policies, Revenue Recognition, for further details on the pattern of recognition of sponsorship signage, Exosphere advertising, suite licenses, and media related revenue. 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 tables disaggregate the Company’s consolidated 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 and the disaggregation of revenue required disclosures in accordance with ASC Subtopic 606-10-50-5 for Fiscal Years 2024, 2023 and 2022.
|  | Year Ended June 30, 2024
|  | Sphere |  | MSG Networks |  |  |  |  | Total
Ticketing and venue license fee revenues (a) |  | $ | 340,256 |  |  | $ | — |  |  |  |  |  | $ | 340,256 |
Sponsorship, signage, Exosphere advertising, and suite revenues |  | 87,173 |  |  | — |  |  |  |  |  | 87,173 |
Food, beverage and merchandise revenues |  | 66,702 |  |  | — |  |  |  |  |  | 66,702 |
Media networks revenues (b) |  | — |  |  | 529,730 |  |  |  |  |  | 529,730 |
Total revenues from contracts with customers |  | $ | 494,131 |  |  | $ | 529,730 |  |  |  |  |  | $ | 1,023,861 |
Revenues from subleases |  | 3,028 |  |  | — |  |  |  |  |  | 3,028 |
Total revenues |  | $ | 497,159 |  |  | $ | 529,730 |  |  |  |  |  | $ | 1,026,889 |
|  | Year Ended June 30, 2023
|  | Sphere |  | MSG Networks |  |  |  |  | Total
Media networks revenues (b) |  | $ | — |  |  | $ | 571,221 |  |  |  |  |  | $ | 571,221 |
Revenues from subleases |  | 2,610 |  |  | — |  |  |  |  |  | 2,610 |
Total revenues |  | $ | 2,610 |  |  | $ | 571,221 |  |  |  |  |  | $ | 573,831 |
|  | Year Ended June 30, 2022
|  | Sphere |  | MSG Networks |  |  |  |  | Total
Media networks revenues (b) |  | $ | — |  |  | $ | 608,155 |  |  |  |  |  | $ | 608,155 |
Revenues from subleases |  | 1,900 |  |  | — |  |  |  |  |  | 1,900 |
Total revenues |  | $ | 1,900 |  |  | $ | 608,155 |  |  |  |  |  | $ | 610,055 |
_________________ (a) Amounts include ticket sales, other ticket-related revenue, and venue license fees from the Company’s events such as (i) concerts, (ii) The Sphere Experience and (iii) other live entertainment and sporting events. (b) Primarily consists of affiliation fees from Distributors (as defined above) and, to a lesser extent, advertising revenues through the sale of commercial time and other advertising inventory during MSG Networks programming. Contract Balances The following table provides information about contract balances from the Company’s contracts with customers as of June 30, 2024, 2023 and 2022.
|  | As of June 30,
|  | 2024 |  | 2023 |  | 2022
Receivables from contracts with customers, net (a) |  | $ | 228,230 |  |  | $ | 115,039 |  |  | $ | 124,319 |
Contract assets, current (b) |  | 1,500 |  |  | 314 |  |  | — |
Contract assets, non-current (b) |  | 907 |  |  | — |  |  | 756 |
Deferred revenue, including non-current portion (c) |  | 97,151 |  |  | 27,397 |  |  | 4,413 |
_________________ (a) As of June 30, 2024, 2023 and 2022 the Company’s receivables from contracts with customers above included $0, $2,730, and $992, respectively, related to various related parties. See Note 18. Related Party Transactions for further details on these related party arrangements. (b) Contract assets current, which are reported as Prepaid expenses and other current assets in the Company’s consolidated balance sheets, primarily relate to the Company’s rights to consideration for goods or services transferred to customers, for which the Company does not have an unconditional right to bill as of the reporting date. Contract assets are transferred to accounts receivable once the Company’s right to consideration becomes unconditional. (c) Revenue recognized for Fiscal Year 2024 relating to the deferred revenue balance as of June 30, 2023 was $21,946. Transaction Price Allocated to the Remaining Performance Obligations The following table depicts the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of June 30, 2024. This primarily relates to performance obligations under sponsorship agreements that have original expected durations longer than one year and for which the respective 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.
|  | As of June 30, 2024
Fiscal year ending June 30, 2025 |  | $ | 56,548 |
Fiscal year ending June 30, 2026 |  | 37,016 |
Fiscal year ending June 30, 2027 |  | 16,244 |
Fiscal year ending June 30, 2028 |  | 4,696 |
Fiscal year ending June 30, 2029 |  | 683 |
|  | $ | 115,187 |

X
- References No definition available. + Details
Name: | us-gaap_RevenueFromContractWithCustomerAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
Name: | us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration