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Income Taxes
 12 Months Ended
Jun. 30, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income tax benefit (expense) attributable to continuing operations is comprised of the following components:
Years Ended June 30,
 202420232022
Current benefit (expense):
Federal$8,200 $1,389 $1,555 
State and other(5,148)(4,672)9,927 
3,052 (3,283)11,482 
Deferred benefit (expense):
Federal93,322 (59,253)17,665 
State and other39,218 (40,867)683 
132,540 (100,120)18,348 
Income tax benefit (expense)$135,592 $(103,403)$29,830 
The income tax benefit (expense) attributable to continuing operations differs from the amount derived by applying the statutory federal rate to pre-tax income (loss) principally due to the effect of the following items:
Years Ended June 30,
 202420232022
Federal tax benefit (expense) at statutory federal rate 75,648 (57,840)35,213 
State income taxes, net of federal benefit13,337 (35,656)3,970 
Change in the estimated applicable tax rate used to determine deferred taxes60,877 (1,286)1,732 
Change in valuation allowance (29,189)2,053 2,200 
Nondeductible officers’ compensation (5,554)(4,814)(12,759)
Nondeductible expenses(1,564)(291)(172)
Nontaxable gain on repayment of Term Loan13,757 — — 
Return to provision4,881 (672)— 
Excess tax benefit related to share-based payment awards974 (4,678)(320)
Other2,425 (219)(34)
Income tax benefit (expense)$135,592 $(103,403)$29,830 
The tax effects of temporary differences which give rise to significant portions of the deferred tax assets and liabilities at June 30, 2024 and 2023 are as follows:
As of
 June 30,
2024		June 30,
2023
Deferred tax asset:
Net operating loss (“NOL”) carryforwards$229,962 $26,684 
Tax credit carryforwards631 — 
Accrued employee benefits27,601 27,349 
Restricted stock units and stock options6,897 9,231 
Right-of-use lease assets and lease liabilities, net10,309 11,040 
Investments7,941 — 
Accrued litigation4,712 14,991 
Other12,956 3,694 
Total deferred tax assets$301,009 $92,989 
Less valuation allowance(29,219)(30)
Net deferred tax assets$271,790 $92,959 
Deferred tax liabilities:
Intangible and other assets$(232,923)$(264,800)
Property and equipment(235,676)(105,405)
Prepaid expenses(2,913)(5,870)
Deferred interest(25,447)(12,474)
Other investments— (83,962)
Total deferred tax liabilities$(496,959)$(472,511)
Deferred tax liabilities, net$(225,169)$(379,552)
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company’s ability to realize its deferred tax assets depends upon the generation of sufficient future taxable income to allow for the utilization of its federal net operating loss carryforward and its future deductible temporary differences. As of June 30, 2024, based on current facts and circumstances, management believes that it is more likely than not that the Company will not realize its deferred tax assets related to foreign NOLs. The Company will continue to assess the realizability of its deferred tax assets on a quarterly basis.
The federal NOL carryforward as of June 30, 2024 was approximately $927,000 and is carried forward indefinitely.
Prior to the MSGE Distribution, the Company and MSG Entertainment entered into a Tax Disaffiliation Agreement (“TDA”) that governs the parties’ respective rights, responsibilities and obligations with respect to taxes and tax benefits. Under the TDA, the Company will generally be responsible for all U.S. federal, state, local and other applicable income taxes of the Company for any taxable period or portion of such period ending on or before the MSGE Distribution Date.
The Company does not have any recorded tax benefit for uncertain tax positions as of June 30, 2024 and 2023.
Income tax payments (refunds), net, were $18,649, $7,288 and $(1,014) for Fiscal Years 2024, 2023 and 2022, respectively.