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Related Party Transactions
 9 Months Ended
Mar. 31, 2020
Related Party Transactions [Abstract]  
Related Party Transactions Related Party Transactions
As of March 31, 2020, members of the Dolan family group, for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, including trusts for the benefit of the Dolan family group (collectively, the “Dolan Family Group”), collectively beneficially own all of the Company’s outstanding Class B common stock, par value $0.01 per share (“Class B Common Stock”) and own approximately 6.6% of the Company’s outstanding Class A Common Stock (inclusive of options exercisable within 60 days of the date hereof). Such shares of the Company’s Class A Common Stock and Class B Common Stock, collectively, represent approximately 76.8% of the aggregate voting power of the Company’s outstanding common stock. On April 17, 2020, MSG distributed to its stockholders all of the outstanding common stock of Madison Square Garden Entertainment Corp. (together with its Subsidiaries, “MSGE”) (the “Entertainment Distribution”) and changed its name to Madison Square Garden Sports Corp. The Dolan Family Group also controls MSG and AMC Networks Inc. ("AMC Networks"), and as a result of the Entertainment Distribution, MSGE.
Prior to September 2018, the Company had an arrangement with the Dolan Family Office, LLC (“DFO”), MSG, and AMC Networks providing for the sharing of certain expenses associated with executive office space which is available to Charles F. Dolan (a director of the Company, MSG, and MSGE, and the Executive Chairman and a director of AMC Networks), James L. Dolan (the Executive Chairman and a director of the Company, the Executive Chairman, Chief Executive Officer, and a director of MSGE, and the Executive Chairman and a director of MSG, and a director of AMC Networks), and the DFO, which is controlled by Charles F. Dolan. Effective September 2018, the Company is no longer party to this arrangement.
The Company shares certain executive support costs, including office space, executive assistants, security and transportation costs for (i) the Company’s Executive Chairman with MSG and (ii) the Company’s Vice Chairman with MSG and AMC Networks. In connection with the Entertainment Distribution, the Company will now also share such costs with MSGE.
The Company and MSG are also party to aircraft time sharing agreements, pursuant to which MSG has agreed from time to time to make certain aircraft available to the Company for use on a “time sharing” basis. Following the Entertainment Distribution, the Company is party to such time sharing agreements with MSGE. Additionally, the Company, MSG and AMC Networks, and following the Entertainment Distribution, MSGE, have agreed on an allocation of the costs of certain other aircraft, including helicopter, use by shared executives.
The Company has various agreements with MSG, including media rights agreements covering the New York Knicks (the “Knicks”) and the New York Rangers (the “Rangers”) games and a tax disaffiliation agreement. As a result of the Entertainment Distribution, certain of the agreements which were previously between the Company and MSG are, as of April 17, 2020, between the Company and MSGE, including an advertising sales representation agreement, a trademark license agreement, and certain other arrangements, including a services agreement (the “Services Agreement”) pursuant to which the Company outsources, and provides, certain business functions. The services currently outsourced include information technology, accounts payable, payroll, tax, certain legal functions, human resources, insurance and risk management, investor relations, corporate communications, benefit plan administration and reporting and, internal audit, as well as certain executive support services described above. In connection with the Entertainment Distribution, the Company entered into a services agreement with MSG, pursuant to which MSG will provide the Company certain legal services previously provided under the Services Agreement.
The Company has also entered into various agreements with AMC Networks with respect to a number of ongoing commercial relationships.
Related Party Transactions
Rights Fees
The Company’s media rights agreements with the Knicks and the Rangers, effective as of July 1, 2015, provide the Company with exclusive media rights to the teams’ games in their local markets. Rights fees included in the accompanying consolidated statements of operations for the three months ended March 31, 2020 and 2019 were $38,611 and $37,094, respectively, and $115,242 and $110,746 for the nine months ended March 31, 2020 and 2019, respectively.
Origination, Master Control and Technical Services
AMC Networks provides certain origination, master control, and technical services to the Company. Amounts incurred by the Company for the three months ended March 31, 2020 and 2019 were $1,184 and $1,161, respectively, and $3,506 and $3,471 for the nine months ended March 31, 2020 and 2019, respectively.
Commission
The Company’s advertising sales representation agreement with MSG, which has a term through June 30, 2022, provides for MSG to act as the Company’s advertising sales representative and includes the exclusive right and obligation to sell certain advertising availabilities on the Company’s behalf for a commission. The amounts incurred by the Company for the three months ended March 31, 2020 and 2019 were $5,865 and $6,880, respectively, and $12,289 and $13,325 for the nine months ended March 31, 2020 and 2019, respectively. Following the Entertainment Distribution, the Company is party to such advertising sales representation agreement with MSGE.
General and Administrative Expenses
Amounts incurred by the Company for expenses associated with the Services Agreement, net, amounted to $2,499 and $2,590 for the three months ended March 31, 2020 and 2019, respectively, and $7,813 and $7,735 for the nine months ended March 31, 2020 and 2019, respectively.
Other Operating Expenses
The Company and its related parties enter into other transactions with each other in the ordinary course of business. Net amounts incurred by the Company for other related party transactions amounted to $98 and $297 for the three months ended March 31, 2020 and 2019, respectively, and $311 and $773 for the nine months ended March 31, 2020 and 2019, respectively.