0001636519-21-000006.txt : 20210506 0001636519-21-000006.hdr.sgml : 20210506 20210505190631 ACCESSION NUMBER: 0001636519-21-000006 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 91 CONFORMED PERIOD OF REPORT: 20210331 FILED AS OF DATE: 20210506 DATE AS OF CHANGE: 20210505 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Madison Square Garden Sports Corp. CENTRAL INDEX KEY: 0001636519 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MISCELLANEOUS AMUSEMENT & RECREATION [7990] IRS NUMBER: 473373056 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-36900 FILM NUMBER: 21895137 BUSINESS ADDRESS: STREET 1: TWO PENNSYLVANIA PLAZA CITY: NEW YORK STATE: NY ZIP: 10121 BUSINESS PHONE: 212-465-4111 MAIL ADDRESS: STREET 1: TWO PENNSYLVANIA PLAZA CITY: NEW YORK STATE: NY ZIP: 10121 FORMER COMPANY: FORMER CONFORMED NAME: Madison Square Garden Sports Corp DATE OF NAME CHANGE: 20200417 FORMER COMPANY: FORMER CONFORMED NAME: Madison Square Garden Co DATE OF NAME CHANGE: 20151001 FORMER COMPANY: FORMER CONFORMED NAME: MSG SPINCO, INC. DATE OF NAME CHANGE: 20150313 10-Q 1 msgs-20210331.htm 10-Q msgs-20210331
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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 March 31, 2021
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: 1-36900
msgs-20210331_g1.jpg
MADISON SQUARE GARDEN SPORTS CORP.
(Exact name of registrant as specified in its charter) 
Delaware 47-3373056
(State or other jurisdiction of
incorporation or organization)
 (I.R.S. Employer
Identification No.)
Two Penn Plaza,New York,NY10121
(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (212) 465-1111

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 StockMSGSNew 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 filerAccelerated filer
Non-accelerated filerSmaller 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 April 30, 2021:
Class A Common Stock par value $0.01 per share —19,587,113 
Class B Common Stock par value $0.01 per share —4,529,517 




MADISON SQUARE GARDEN SPORTS CORP.
INDEX TO FORM 10-Q
 
 Page



PART I – FINANCIAL INFORMATION
Item 1. Financial Statements

MADISON SQUARE GARDEN SPORTS CORP.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)

March 31,
2021
June 30,
2020
(Unaudited) 
ASSETS
Current Assets:
Cash and cash equivalents$69,128 $77,852 
Restricted cash8,896 12,821 
Accounts receivable, net82,518 7,403 
Net related party receivables5,048 135 
Prepaid expenses25,598 20,634 
Other current assets11,176 9,433 
Total current assets202,364 128,278 
Property and equipment, net of accumulated depreciation and amortization of $42,406 and $38,361 as of March 31, 2021 and June 30, 2020, respectively
35,955 39,597 
Right-of-use lease assets707,323 718,051 
Amortizable intangible assets, net1,959 2,754 
Indefinite-lived intangible assets112,144 112,144 
Goodwill226,955 226,955 
Other assets17,740 6,019 
Total assets$1,304,440 $1,233,798 
See accompanying notes to consolidated financial statements.
1


MADISON SQUARE GARDEN SPORTS CORP.
CONSOLIDATED BALANCE SHEETS (Continued)
(in thousands, except per share data)




March 31,
2021
June 30,
2020
(Unaudited) 
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable$1,554 $2,301 
Net related party payables20,700 17,952 
Debt30,000  
Accrued liabilities:
Employee related costs70,993 71,451 
Other accrued liabilities61,587 33,071 
Operating lease liabilities, current34,329 39,131 
Deferred revenue129,390 126,348 
Total current liabilities348,553 290,254 
Long-term debt380,000 350,000 
Operating lease liabilities, noncurrent692,243 679,053 
Defined benefit and other postretirement obligations6,544 7,014 
Other employee related costs41,977 50,027 
Deferred tax liabilities, net57,446 57,721 
Deferred revenue, noncurrent31,978 2,014 
Other liabilities1,000 1,150 
Total liabilities1,559,741 1,437,233 
Commitments and contingencies (see Note 11)
Madison Square Garden Sports Corp. Stockholders’ Equity:
Class A Common stock, par value $0.01, 120,000 shares authorized; 19,587 and 19,466 shares outstanding as of March 31, 2021 and June 30, 2020, respectively
204 204 
Class B Common stock, par value $0.01, 30,000 shares authorized; 4,530 shares outstanding as of March 31, 2021 and June 30, 2020
45 45 
Preferred stock, par value $0.01, 15,000 shares authorized; none outstanding as of March 31, 2021 and June 30, 2020
  
Additional paid-in capital19,327 5,940 
Treasury stock, at cost, 861 and 982 shares as of March 31, 2021 and June 30, 2020, respectively
(146,734)(167,431)
Accumulated deficit(128,518)(43,605)
Accumulated other comprehensive loss(2,062)(2,139)
Total Madison Square Garden Sports Corp. stockholders’ equity(257,738)(206,986)
Nonredeemable noncontrolling interests2,437 3,551 
Total equity(255,301)(203,435)
Total liabilities and equity$1,304,440 $1,233,798 

See accompanying notes to consolidated financial statements.
2

MADISON SQUARE GARDEN SPORTS CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except per share data)
 Three Months EndedNine Months Ended
March 31,March 31,
2021202020212020
Revenues (a)
$183,010 $267,631 $268,819 $610,279 
Operating expenses:
Direct operating expenses (b)
126,510 161,388 182,957 377,590 
Selling, general and administrative expenses (c)
46,803 90,045 138,708 266,283 
Depreciation and amortization1,573 5,573 4,840 15,338 
Operating income (loss)8,124 10,625 (57,686)(48,932)
Other income (expense):
Interest income
9 165 9 691 
Interest expense(2,939)(867)(7,415)(2,240)
Miscellaneous expense, net(46)(142)(236)(316)
(2,976)(844)(7,642)(1,865)
Income (loss) from continuing operations before income taxes5,148 9,781 (65,328)(50,797)
Income tax benefit (expense)(53)(5,598)275 11,132 
Income (loss) from continuing operations5,095 4,183 (65,053)(39,665)
Loss from discontinued operations, net of taxes (145,249) (89,718)
Net income (loss)5,095 (141,066)(65,053)(129,383)
Less: Net loss attributable to nonredeemable noncontrolling interests from continuing operations(373)(785)(1,479)(1,700)
Less: Net loss attributable to redeemable noncontrolling interests from discontinued operations (22,447) (23,851)
Less: Net income attributable to nonredeemable noncontrolling interests from discontinued operations 195  37 
Net income (loss) attributable to Madison Square Garden Sports Corp.’s stockholders$5,468 $(118,029)$(63,574)$(103,869)
Basic
Continuing operations
$0.23 $0.20 $(2.64)$(1.58)
Discontinued operations
 (5.12) (2.76)
Basic income (loss) per common share attributable to Madison Square Garden Sports Corp.’s stockholders$0.23 $(4.92)$(2.64)$(4.34)
Diluted
Continuing operations
$0.22 $0.20 $(2.64)$(1.58)
Discontinued operations
 (5.12) (2.76)
Diluted income (loss) per common share attributable to Madison Square Garden Sports Corp.’s stockholders$0.22 $(4.92)$(2.64)$(4.34)
Weighted-average number of common shares outstanding:
Basic24,156 24,004 24,120 23,914 
Diluted24,344 24,004 24,120 23,914 
_________________
(a)Includes revenues from related parties of $80,322 and $57,827 for the three months ended March 31, 2021 and 2020, respectively, and $103,752 and $125,273 for the nine months ended March 31, 2021 and 2020, respectively.
(b)Includes net charges from (to) related parties of $24,855 and $(125) for the three months ended March 31, 2021 and 2020, respectively, and $28,119 and $(262) for the nine months ended March 31, 2021 and 2020, respectively.
(c)Includes net charges from (to) related parties of $14,957 and $(2,729) for the three months ended March 31, 2021 and 2020, respectively, and $39,214 and $(8,128) for the nine months ended March 31, 2021 and 2020, respectively.
See accompanying notes to consolidated financial statements.
3

MADISON SQUARE GARDEN SPORTS CORP.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
(in thousands)
Three Months EndedNine Months Ended
March 31,March 31,
2021202020212020
Net income (loss)$5,095 $(141,066)$(65,053)$(129,383)
Other comprehensive income (loss), before income taxes:
Pension plans and postretirement plan:
Amounts reclassified from accumulated other comprehensive loss:
Amortization of actuarial loss included in net periodic benefit cost
57 342 77 1,027 
Settlement loss recognized 67  67 
Cumulative translation adjustments— (19,946)— (6,778)
Other comprehensive income (loss), before income taxes57 (19,537)77 (5,684)
Income tax benefit (expense) related to items of other comprehensive income (loss)
    
Other comprehensive income (loss), net of income taxes57 (19,537)77 (5,684)
Comprehensive income (loss)5,152 (160,603)(64,976)(135,067)
Less: Comprehensive loss attributable to nonredeemable noncontrolling interests from continuing operations(373)(785)(1,479)(1,700)
Less: Comprehensive loss attributable to redeemable noncontrolling interests from discontinued operations (22,447) (23,851)
Less: Comprehensive income attributable to nonredeemable noncontrolling interests from discontinued operations 195  37 
Comprehensive income (loss) attributable to Madison Square Garden Sports Corp.’s stockholders$5,525 $(137,566)$(63,497)$(109,553)

See accompanying notes to consolidated financial statements.
4



MADISON SQUARE GARDEN SPORTS CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)

Nine Months Ended
March 31,
20212020
Cash flows from operating activities:
Net loss$(65,053)$(129,383)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization4,840 86,869 
Impairment of intangibles, long-lived assets and goodwill 102,211 
Benefits from deferred income taxes(275)(9,805)
Share-based compensation expense26,193 47,440 
Loss in equity method investments, net of income distributions 3,739 
Purchase accounting adjustments associated with leases
 4,458 
Unrealized loss on equity investment with readily determinable fair value 2,471 
(Recovery of) provision for doubtful accounts(175)6,990 
Other non-cash adjustments806 273 
Change in assets and liabilities:
Accounts receivable, net(74,940)(41,249)
Net related party receivables(4,913)(815)
Prepaid expenses and other assets(14,823)(52,593)
Accounts payable(747)3,222 
Net related party payables2,748 12,593 
Accrued and other liabilities19,700 71,870 
Collections due to promoters 15,924 
Deferred revenue33,156 (12,110)
Operating lease right-of-use assets and lease liabilities19,116 (972)
Net cash (used in) provided by operating activities(54,367)111,133 
Cash flows from investing activities:
Capital expenditures(437)(342,243)
Proceeds from insurance recoveries 476 
Payments for acquisition of assets (1,000)
Purchase of short-term investments (405,935)
Proceeds from maturity of short-term investments 176,661 
Investments and loans to nonconsolidated affiliates (75)
Proceeds from sale of nonconsolidated affiliates 18,000 
Loan repayment received from subordinated note 58,735 
Cash received for notes receivable 750 
Net cash used in investing activities(437)(494,631)
See accompanying notes to consolidated financial statements.
5



MADISON SQUARE GARDEN SPORTS CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(Unaudited)
(in thousands)
Nine Months Ended
March 31,
20212020
Cash flows from financing activities:
Taxes paid in lieu of shares issued for equity-based compensation(13,891)(26,447)
Proceeds from share issuance808  
Noncontrolling interest holders’ capital contribution  4,000 
Distributions to noncontrolling interest holders (535)
Proceeds from revolving credit facilities30,000 350,000 
Proceeds from NHL advance30,000  
Repayment of revolving credit facility (15,000)
Principal repayment on long-term debt (5,000)
Payment of contingent consideration(200)(200)
Payments for financing costs(4,562) 
Net cash provided by financing activities42,155 306,818 
Effect of exchange rates on cash, cash equivalents and restricted cash 3,916 
Net decrease in cash, cash equivalents and restricted cash(12,649)(72,764)
Cash, cash equivalents and restricted cash from continuing operations, beginning of period90,673 25,836 
Cash, cash equivalents and restricted cash from discontinued operations, beginning of period 1,092,065 
Cash, cash equivalents and restricted cash at beginning of period
90,673 1,117,901 
Cash, cash equivalents and restricted cash from continuing operations, end of period78,024 23,289 
Cash, cash equivalents and restricted cash from discontinued operations, end of period 1,021,848 
Cash, cash equivalents and restricted cash at end of period$78,024 $1,045,137 
Non-cash investing and financing activities:
Non-cash acquisition of additional redeemable noncontrolling interests$ $37,715 
Capital expenditures incurred but not yet paid$38 $75,846 
Tenant improvement paid by landlord
$ $195 
Share-based compensation capitalized in property and equipment$ $3,790 

See accompanying notes to consolidated financial statements.

6

MADISON SQUARE GARDEN SPORTS CORP.
CONSOLIDATED STATEMENTS OF EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS
(Unaudited)
(in thousands) 
Three Months Ended March 31, 2021
Common
Stock
Issued
Additional
Paid-In
Capital
Treasury
Stock
Accumulated DeficitAccumulated
Other
Comprehensive
Loss
Total Madison Square Garden Sports Corp. Stockholders Equity
Non -
redeemable
Noncontrolling
Interests
Total Equity
Balance as of December 31, 2020$249 $15,432 $(147,585)$(133,986)$(2,119)$(268,009)$2,881 $(265,128)
Net income (loss)— — — 5,468 — 5,468 (373)5,095 
Other comprehensive income— — — — 57 57 — 57 
Comprehensive income (loss)— — — — — 5,525 (373)5,152 
Share-based compensation
— 3,867 —  — 3,867 — 3,867 
Common stock issued under stock incentive plans
— (43)851 — — 808 — 808 
Adjustments to noncontrolling interests— 71 — — — 71 (71) 
Balance as of March 31, 2021$249 $19,327 $(146,734)$(128,518)$(2,062)$(257,738)$2,437 $(255,301)
See accompanying notes to consolidated financial statements.
7

MADISON SQUARE GARDEN SPORTS CORP.
CONSOLIDATED STATEMENTS OF EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS (Continued)
(Unaudited)
(in thousands)
Three Months Ended March 31, 2020
Common Stock IssuedAdditional
Paid-In
Capital
Treasury
Stock
Retained Earnings (Accumulated Deficit)Accumulated
Other
Comprehensive Loss
Total Madison Square Garden Sports Corp. Stockholders Equity
Non -
redeemable
Noncontrolling
Interests
Total EquityRedeemable
Noncontrolling
 Interests
Balance as of December 31,2019$249 $2,833,867 $(185,893)$43,163 $(33,070)$2,658,316 $20,361 $2,678,677 $66,223 
Net loss— — — (118,029)— (118,029)(590)(118,619)(22,447)
Other comprehensive loss— — — — (19,537)(19,537)— (19,537)— 
Comprehensive loss— — — — — (137,566)(590)(138,156)(22,447)
Share-based compensation
— 15,163 — — — 15,163 — 15,163 — 
Tax withholding associated with shares issued for equity-based compensation
— (183)— — — (183)— (183)— 
Common stock issued under stock incentive plans
— (374)374 — —  —  — 
Adjustments to noncontrolling interests— (1,424)— — — (1,424)1,424  — 
Noncontrolling interest non-cash acquisition
— 20,262 17,453 — — 37,715 — 37,715 (37,715)
Redeemable noncontrolling interest adjustment to redemption fair value
— (16,939)— — — (16,939)— (16,939)16,939 
Balance as of March 31, 2020$249 $2,850,372 $(168,066)$(74,866)$(52,607)$2,555,082 $21,195 $2,576,277 $23,000 
See accompanying notes to consolidated financial statements.
8

MADISON SQUARE GARDEN SPORTS CORP.
CONSOLIDATED STATEMENTS OF EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS (Continued)
(Unaudited)
(in thousands)
Nine Months Ended March 31, 2021
Common
Stock
Issued
Additional
Paid-In
Capital
Treasury
Stock
Accumulated DeficitAccumulated
Other
Comprehensive
Loss
Total Madison Square Garden Sports Corp. Stockholders Equity
Non -
redeemable
Noncontrolling
Interests
Total Equity
Balance as of June 30, 2020$249 $5,940 $(167,431)$(43,605)$(2,139)$(206,986)$3,551 $(203,435)
Net loss— — — (63,574)— (63,574)(1,479)(65,053)
Other comprehensive income— — — — 77 77 — 77 
Comprehensive loss
— — — — — (63,497)(1,479)(64,976)
Share-based compensation
— 26,193 — — — 26,193 — 26,193 
Tax withholding associated with shares issued for equity-based compensation
— (11,023)— (2,868)— (13,891)— (13,891)
Common stock issued under stock incentive plans
— (1,418)20,697 (18,471)— 808 — 808 
Adjustments to noncontrolling interests— (365)— — — (365)365  
Balance as of March 31, 2021$249 $19,327 $(146,734)$(128,518)$(2,062)$(257,738)$2,437 $(255,301)
See accompanying notes to consolidated financial statements.
9

MADISON SQUARE GARDEN SPORTS CORP.
CONSOLIDATED STATEMENTS OF EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS (Continued)
(Unaudited)
(in thousands)
Nine Months Ended March 31, 2020
Common Stock IssuedAdditional
Paid-In
Capital
Treasury
Stock
Retained Earnings (Accumulated Deficit)Accumulated
Other
Comprehensive Loss
Total Madison Square Garden Sports Corp. Stockholders Equity
Non -
redeemable
Noncontrolling
Interests
Total EquityRedeemable
Noncontrolling
 Interests
Balance as of June 30, 2019$249 $2,845,961 $(207,790)$29,003 $(46,923)$2,620,500 $18,260 $2,638,760 $67,627 
Net loss— — (103,869)— (103,869)(1,663)(105,532)(23,851)
Other comprehensive loss— — — — (5,684)(5,684)— (5,684)— 
Comprehensive loss— — — — — (109,553)(1,663)(111,216)(23,851)
Share-based compensation
— 51,230 — — — 51,230 — 51,230 — 
Tax withholding associated with shares issued for equity-based compensation
— (26,447)— — — (26,447)— (26,447)— 
Common stock issued under stock incentive plans
— (22,271)22,271 — —  —  — 
Adjustments to noncontrolling interests— (1,424)— — — (1,424)1,424 — — 
Contribution from noncontrolling interest holders
— — — — — — 3,709 3,709 — 
Distributions to noncontrolling interest holders
— — — — — — (535)(535) 
Noncontrolling interest non-cash acquisition
— 20,262 17,453 — — 37,715 — 37,715 (37,715)
Redeemable noncontrolling interest adjustment to redemption fair value
— (16,939)— — — (16,939)— (16,939)16,939 
Balance as of March 31, 2020$249 $2,850,372 $(168,066)$(74,866)$(52,607)$2,555,082 $21,195 $2,576,277 $23,000 
See accompanying notes to consolidated financial statements.
10

MADISON SQUARE GARDEN SPORTS CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
All amounts included in the following Notes to Consolidated Financial Statements 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 Sports Corp., formerly The Madison Square Garden Company (together with its subsidiaries, the “Company” or “MSG Sports”) owns and operates a portfolio of assets featuring some of the most recognized teams in all of sports, including the New York Knickerbockers (“Knicks”) of the National Basketball Association (“NBA”) and the New York Rangers (“Rangers”) of the National Hockey League (“NHL”). Both the Knicks and the Rangers play their home games in Madison Square Garden Arena (“The Garden”). The Company’s other professional franchises include two development league teams — the Hartford Wolf Pack of the American Hockey League (“AHL”) and the Westchester Knicks of the NBA G League (“NBAGL”). These professional sports franchises are collectively referred to herein as the “sports teams.” In addition, the Company owns Knicks Gaming, an esports franchise that competes in the NBA 2K League, as well as a controlling interest in Counter Logic Gaming (“CLG”), a North American esports organization. The Company also operates two professional sports team performance centers — the Madison Square Garden Training Center in Greenburgh, NY and the CLG Performance Center in Los Angeles, CA. CLG and Knicks Gaming are collectively referred to herein as the “esports teams,” and together with the sports teams, the “teams.”
The Company operates and reports financial information in one segment. The Company’s decision to report in one segment is based upon its internal organizational structure; the manner in which its operations are managed; the criteria used by the Company’s Executive Chairman, its Chief Operating Decision Maker (“CODM”), to evaluate segment performance. The Company’s CODM reviews total company operating results to assess overall performance and allocate resources.
The Company was incorporated on March 4, 2015 as an indirect, wholly-owned subsidiary of MSG Networks Inc. (“MSG Networks”). All the outstanding common stock of the Company was distributed to MSG Networks shareholders (the “MSGS Distribution”) on September 30, 2015.
On April 17, 2020 (the “MSGE Distribution Date”), the Company distributed all of the outstanding common stock of Madison Square Garden Entertainment Corp. (formerly MSG Entertainment Spinco, Inc. and referred to herein as “MSG Entertainment”) to its stockholders (the “MSGE Distribution”). MSG Entertainment owns, directly or indirectly, the entertainment business previously owned and operated by the Company through its MSG Entertainment business segment and the sports booking business previously owned and operated by the Company through its MSG Sports business segment. In the MSGE Distribution, (a) each holder of the Company’s Class A common stock received one share of MSG Entertainment Class A common stock, par value $0.01 per share, for every share of the Company’s Class A common stock held of record as of the close of business, New York City time, on April 13, 2020 (the “Record Date”), and (b) each holder of the Company’s Class B common stock received one share of MSG Entertainment Class B common stock, par value $0.01 per share, for every share of the Registrant’s Class B common stock held of record as of the close of business, New York City time, on the Record Date.
Basis of Presentation
The accompanying unaudited consolidated interim financial statements (referred to as the “Financial Statements” herein) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP“) and Article 10 of Regulation S-X of the SEC for interim financial information, and should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended June 30, 2020 (“fiscal year 2020”). The Financial Statements presented in this Quarterly Report on Form 10-Q are unaudited; however, in the opinion of management, the Financial Statements reflect all adjustments, consisting solely of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods presented. 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. The dependence of MSG Sports on revenues from its NBA and NHL sports teams generally means it earns a disproportionate share of its revenues in the second and third quarters of the Company’s fiscal year. However, on March 11 and 12, 2020, the NBA and NHL, respectively, suspended their 2019-20 seasons due to COVID-19. In July and August 2020, the NBA and NHL, respectively, resumed their seasons. As a result, the Company recognized certain revenues that otherwise would have been recognized during the third and fourth quarter of fiscal year 2020 during the first quarter of fiscal year 2021. In addition, on December 16, 2020 and January 14, 2021, respectively, the Knicks and Rangers resumed playing their home games at The Garden as part of the 2020-21 seasons. Due to the delayed start of the 2020-21 NBA and NHL seasons, the Company recognized certain revenues during the third quarter of fiscal year 2021 and will recognize certain revenues during the fourth quarter of fiscal year 2021, that otherwise would have been recognized during the second and third quarters of fiscal year 2021, respectively.
11

MADISON SQUARE GARDEN SPORTS CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(Continued)