Subsequent Events

12 Months Ended

Jun. 30, 2022

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On August 18, 2022, the Board of Directors approved the exploration of a potential spin-off that would create a separate publicly traded company comprised of its traditional live entertainment business and MSG Networks (collectively, “SpinCo”). The potential spin-off would separate these businesses from the Company’s MSG Sphere and Tao Group Hospitality businesses (collectively, “RemainCo”).

The transaction would be structured as a tax-free spin-off to all shareholders of the Company. In the first step of the transaction, record holders of Company Class A and Class B common stock would receive a pro-rata distribution expected to be equivalent, in aggregate, to an approximately two-thirds economic interest in SpinCo. The one-third economic interest in SpinCo would be available for use in a tax-free exchange offer for the common stock of RemainCo, to raise capital for general corporate purposes, and/or for use to a follow-on pro-rata spin-off to existing shareholders of RemainCo.

SpinCo is expected to include (i) the Company’s portfolio of venues – The Garden, Hulu Theater, Radio City Music Hall, the Beacon Theatre, and The Chicago Theatre, (ii) the Company’s entertainment and sports bookings business, (iii) the Radio City Rockettes and the Christmas Spectacular production, (iv) the Arena License Agreements with the New York Knicks and New York Rangers, and (v) MSG Networks, which owns the two regional sports and entertainment networks – MSG Network and MSG+, and a companion streaming app, MSG GO. If the potential spin-off occurs, RemainCo would be expected to include the first MSG Sphere, currently under construction in Las Vegas, and future MSG Sphere venues, a majority interest in Tao Group Hospitality, a one-third economic interest in SpinCo, and a majority of the Company’s cash and cash equivalents at the time of the spin-off.

Completion of the potential spin-off would be subject to various conditions, including certain league approvals, receipt of a tax opinion from counsel, and final approval by the Board of Directors.