Madison Square Garden Entertainment (MSGE) - 2025 Q3 - Quarterly Report

PART I. FINANCIAL INFORMATION This section presents MSG Entertainment's unaudited condensed consolidated financial statements, including balance sheets, income, cash flow, and equity, with detailed accounting notes Item 1. Financial Statements (Unaudited) This section provides the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, comprehensive income, cash flows, and equity, along with their accompanying notes Condensed Consolidated Balance Sheets This section presents the company's financial position, detailing assets, liabilities, and equity at specific points in time Condensed Consolidated Balance Sheets (in thousands) | Metric | March 31, 2025 (in thousands) | June 30, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :--------------------------- | | Total Assets | $1,739,412 | $1,552,707 | | Total Liabilities | $1,729,886 | $1,575,872 | | Total Equity (Deficit) | $9,526 | $(23,165) | | Cash, cash equivalents, and restricted cash | $89,474 | $33,555 | Condensed Consolidated Statements of Operations This section outlines the company's financial performance over specific periods, including revenues, expenses, and net income Condensed Consolidated Statements of Operations (in thousands) | Metric | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | Nine Months Ended March 31, 2025 (in thousands) | Nine Months Ended March 31, 2024 (in thousands) | | :----------------------------------- | :----------------------------------------------- | :----------------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Total Revenues | $242,465 | $228,313 | $788,596 | $773,191 | | Net Income | $8,036 | $2,795 | $64,608 | $77,373 | | Basic Earnings per share | $0.17 | $0.06 | $1.34 | $1.59 | | Diluted Earnings per share | $0.17 | $0.06 | $1.33 | $1.58 | Condensed Consolidated Statements of Comprehensive Income This section presents the company's total comprehensive income, encompassing net income and other comprehensive income items Condensed Consolidated Statements of Comprehensive Income (in thousands) | Metric | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | Nine Months Ended March 31, 2025 (in thousands) | Nine Months Ended March 31, 2024 (in thousands) | | :----------------------------------- | :----------------------------------------------- | :----------------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Net income | $8,036 | $2,795 | $64,608 | $77,373 | | Other comprehensive income, net of income taxes | $356 | $372 | $1,068 | $1,114 | | Comprehensive income | $8,392 | $3,167 | $65,676 | $78,487 | Condensed Consolidated Statements of Cash Flows This section details the cash inflows and outflows from operating, investing, and financing activities over specific periods Condensed Consolidated Statements of Cash Flows (in thousands) | Metric | Nine Months Ended March 31, 2025 (in thousands) | Nine Months Ended March 31, 2024 (in thousands) | | :------------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | | Net cash provided by operating activities | $142,308 | $111,054 | | Net cash used in investing activities | $(19,379) | $(72,625) | | Net cash used in financing activities | $(67,010) | $(94,476) | | Net increase (decrease) in cash, cash equivalents, and restricted cash | $55,919 | $(56,047) | | Cash, cash equivalents, and restricted cash, end of period | $89,474 | $28,308 | Condensed Consolidated Statements of Equity (Deficit) This section presents changes in the company's equity, including retained earnings and treasury stock, over specific periods Condensed Consolidated Statements of Equity (Deficit) (in thousands) | Metric | March 31, 2025 (in thousands) | June 30, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :--------------------------- | | Total Equity (Deficit) | $9,526 | $(23,165) | | Retained earnings | $180,211 | $115,603 | | Treasury stock at cost | $(180,204) | $(140,512) | - Repurchases of Class A common stock, inclusive of excise tax, for the nine months ended March 31, 2025, totaled $(39,742) thousand compared to $(116,386) thousand for the same period in 2024[18] Notes to the Condensed Consolidated Financial Statements This section provides detailed explanations of the significant accounting policies, estimates, and other financial disclosures underlying the consolidated financial statements Note 1. Description of Business and Basis of Presentation MSG Entertainment operates iconic live entertainment venues and produces marquee content, with its fiscal year ending June 30 and revenues concentrated in Q2 and Q3 - MSG Entertainment is a live entertainment company comprised of iconic venues and marquee entertainment content, operating in one reportable segment[20] - The company's portfolio of venues includes Madison Square Garden, The Theater at Madison Square Garden, Radio City Music Hall, the Beacon Theatre, and The Chicago Theatre[21] - MSG Entertainment became an independent publicly traded company on April 21, 2023, following a distribution from Sphere Entertainment Co., which no longer owns any of the company's common stock[22] - The company generally earns a disproportionate share of its annual revenues in the second and third fiscal quarters due to the Christmas Spectacular and arena license fees from the New York Knicks and Rangers[25] Note 2. Summary of Significant Accounting Policies This note details MSG Entertainment's key accounting policies, including consolidation, estimates, revenue recognition across various offerings, and the impact of recently issued accounting pronouncements - The company's revenue is categorized into 'Revenues from entertainment offerings' (service revenue), 'Food, beverage, and merchandise revenues' (product revenue), and 'Arena license fees and other leasing revenue' (lease revenue)[30][31][33] - Revenue from entertainment offerings includes ticket sales, venue license fees, sponsorship, suite licenses, and advertising commissions[32] - Revenue from arena license fees and other leasing includes rental fees from agreements with MSG Sports for the Knicks and Rangers, and sublease income[39] - ASU 2023-07 (Improvement to Reportable Segment Disclosures) will be effective for Fiscal Year 2025, leading to changes in segment reporting disclosures[44] - ASU 2023-09 (Improvements to Income Tax Disclosures) will be effective for Fiscal Year 2026, requiring more detailed income tax disclosures[45] Note 3. Revenue Recognition This section disaggregates revenues by category, details contract balances like receivables and deferred revenue, and outlines remaining performance obligations from long-term agreements Revenue by Category (in thousands) | Revenue Category | Three Months Ended March 31, 2025 (in thousands) | Nine Months Ended March 31, 2025 (in thousands) | | :------------------------------------------------ | :----------------------------------------------- | :---------------------------------------------- | | Total revenues from entertainment offerings | $160,214 | $593,571 | | Food, beverage, and merchandise revenues | $45,808 | $124,104 | | Arena license fees and other leasing revenue | $36,443 | $70,921 | | Total revenues | $242,465 | $788,596 | Contract Balances (in thousands) | Contract Balance | As of March 31, 2025 (in thousands) | As of June 30, 2024 (in thousands) | | :------------------------------------------ | :---------------------------------- | :--------------------------------- | | Receivables from contracts with customers, net | $93,877 | $74,113 | | Contract assets, current | $8,812 | $7,844 | | Deferred revenue, including non-current portion | $238,293 | $215,581 | - As of March 31, 2025, remaining performance obligations under contracts totaled $577,885 thousand, with 40% expected to be recognized over the next two years and 60% thereafter, primarily from sponsorship and suite license agreements[54] Note 4. Restructuring Charges The company recognized minimal restructuring charges for termination benefits in the current fiscal year, a significant decrease from the prior year's substantial workforce reduction expenses Restructuring Charges (in thousands) | Metric | Three Months Ended March 31, 2025 (in thousands) | Nine Months Ended March 31, 2025 (in thousands) | | :-------------------- | :----------------------------------------------- | :---------------------------------------------- | | Restructuring charges | $84 | $14 | | Restructuring charges (prior year) | $2,362 | $14,803 | - The restructuring liability was reduced to $0 as of March 31, 2025, from $7,140 thousand as of June 30, 2024[55] Note 5. Investments This note details the company's equity investments, primarily in Townsquare Media and Executive Deferred Compensation Plan trusts, summarizing realized and unrealized gains and losses Investment Portfolio (in thousands) | Investment Type | As of March 31, 2025 (in thousands) | As of June 30, 2024 (in thousands) | | :------------------------------------------------------------------------------------------------ | :---------------------------------- | :--------------------------------- | | Townsquare Class A common stock | $1,031 | $1,438 | | Other equity investments with readily determinable fair values held in trust | $4,737 | $4,226 | | Equity method investments and equity investments without readily determinable fair values | $783 | $656 | | Total investments | $6,551 | $6,320 | Realized and Unrealized (Loss) Gain (in thousands) | Realized/Unrealized (Loss) Gain | Three Months Ended March 31, 2025 (in thousands) | Nine Months Ended March 31, 2025 (in thousands) | | :------------------------------------------ | :----------------------------------------------- | :---------------------------------------------- | | Unrealized (loss) gain — Townsquare | $(120) | $(357) | | Unrealized (loss) gain — Executive Deferred Compensation Plan | $(45) | $149 | | Realized gain from shares sold — Townsquare | $0 | $5 | | Total realized and unrealized (loss) gain | $(165) | $(203) | - In the nine months ended March 31, 2024, the company recognized a realized gain of $1,548 thousand from the sale of DraftKings shares, with cash proceeds of $12,844 thousand[61] Note 6. Property and Equipment, Net This note breaks down the company's net property and equipment, including land, buildings, and leasehold improvements, and reports associated depreciation and amortization expenses Property and Equipment, Net (in thousands) | Asset Category | As of March 31, 2025 (in thousands) | As of June 30, 2024 (in thousands) | | :-------------------------------- | :---------------------------------- | :--------------------------------- | | Land | $62,768 | $62,768 | | Buildings | $1,015,673 | $1,011,308 | | Equipment, furniture, and fixtures | $358,211 | $348,075 | | Leasehold improvements | $164,178 | $133,267 | | Construction in progress | $567 | $10,193 | | Total Property and equipment | $1,601,397 | $1,565,611 | | Less: accumulated depreciation and amortization | $(974,415) | $(932,078) | | Property and equipment, net | $626,982 | $633,533 | Depreciation and Amortization Expense (in thousands) | Metric | Three Months Ended March 31, 2025 (in thousands) | Nine Months Ended March 31, 2025 (in thousands) | | :----------------------------------- | :----------------------------------------------- | :---------------------------------------------- | | Depreciation and amortization expense | $14,372 | $42,336 | | Depreciation and amortization expense (prior year) | $13,182 | $39,972 | Note 7. Goodwill and Intangible Assets This note reports the carrying amounts of goodwill and indefinite-lived intangible assets, confirming no impairment charges were identified in Fiscal Year 2025 Goodwill and Indefinite-Lived Intangible Assets (in thousands) | Asset Category | As of March 31, 2025 (in thousands) | As of June 30, 2024 (in thousands) | | :-------------------------------- | :---------------------------------- | :--------------------------------- | | Goodwill | $69,041 | $69,041 | | Trademarks | $61,881 | $61,881 | | Photographic related rights | $1,920 | $1,920 | | Total indefinite-lived intangible assets | $63,801 | $63,801 | - No impairments of Goodwill or Indefinite-lived intangible assets were identified during the annual qualitative impairment test in the first quarter of Fiscal Year 2025[63] Note 8. Commitments and Contingencies This note discusses contractual obligations and legal matters, confirming no material changes to non-cancelable obligations and full repayment of a related party loan, with no anticipated material adverse effect from lawsuits - No material changes in non-cancelable contractual obligations occurred during the nine months ended March 31, 2025, beyond ordinary course activities[65] - The $65,000 thousand Delayed Draw Term Loan Facility with Sphere Entertainment was fully drawn and repaid in Fiscal Year 2024[66] - Management does not believe that the resolution of current lawsuits will have a material adverse effect on the company[67] Note 9. Credit Facilities This note details the National Properties Facilities, including a $650 million term loan and $150 million revolving credit facility, outlining balances, interest rates, and compliance with financial covenants Debt Carrying Value (in thousands) | Metric | As of March 31, 2025 (in thousands) | As of June 30, 2024 (in thousands) | | :------------------------------------------ | :---------------------------------- | :--------------------------------- | | Current portion of long-term debt | $28,438 | $16,250 | | Long-term debt, net of deferred financing costs | $577,409 | $599,248 | | Total carrying value of debt | $613,438 | $625,625 | - The National Properties Facilities consist of a $650,000 thousand senior secured term loan facility and a $150,000 thousand revolving credit facility, maturing on June 30, 2027[69][71] - As of March 31, 2025, the company had $131,633 thousand of available borrowing capacity under the National Properties Revolving Credit Facility, and the interest rate on the facilities was 6.92%[69][70] - MSG National Properties and its restricted subsidiaries were in compliance with all financial covenants (minimum liquidity, debt service coverage ratio, maximum total leverage ratio) as of March 31, 2025[72] Note 10. Pension Plans and Other Postretirement Benefit Plans This note details net periodic benefit costs for pension and postretirement plans, contributions to qualified plans, defined contribution expenses, and Executive Deferred Compensation Plan assets and liabilities Net Periodic Benefit Costs and Expenses (in thousands) | Metric | Nine Months Ended March 31, 2025 (in thousands) | Nine Months Ended March 31, 2024 (in thousands) | | :-------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Net periodic cost for Pension Plans | $2,521 | $2,535 | | Net periodic cost for Postretirement Plan | $122 | $90 | | Savings Plans expenses | $6,352 | $5,825 | | Union Savings Plan expenses | $1,092 | $621 | - The company contributed $3,300 thousand to a non-contributory, qualified cash balance retirement plan for non-union employees during the nine months ended March 31, 2025[82] Deferred Compensation Plan (in thousands) | Deferred Compensation Plan | As of March 31, 2025 (in thousands) | As of June 30, 2024 (in thousands) | | :------------------------------------------ | :---------------------------------- | :--------------------------------- | | Assets (included in Other non-current assets) | $4,737 | $4,226 | | Liabilities (included in Other non-current liabilities) | $(4,760) | $(4,226) | Note 11. Share-based Compensation This note summarizes share-based compensation expense for RSUs and PSUs, fair value of vested awards, unrecognized compensation cost, and details on grants and vesting during the period Share-based Compensation Metrics (in thousands) | Metric | Three Months Ended March 31, 2025 (in thousands) | Nine Months Ended March 31, 2025 (in thousands) | | :------------------------------------------ | :----------------------------------------------- | :---------------------------------------------- | | Share-based compensation expense | $6,250 | $21,834 | | Share-based compensation expense (prior year) | $5,611 | $19,561 | | Fair value of awards vested | $1,130 | $37,028 | | Fair value of awards vested (prior year) | $2,004 | $31,155 | - As of March 31, 2025, there was $40,672 thousand of unrecognized compensation cost related to unvested RSUs and PSUs, expected to be recognized over approximately 2.0 years[90] - During the nine months ended March 31, 2025, 484 RSUs and 386 PSUs were granted, while 542 RSUs and 400 PSUs vested[91] Note 12. Related Party Transactions This note details transactions with related parties, including the Dolan Family Group, Sphere Entertainment, and MSG Sports, summarizing revenues and expenses, and noting changes in commercial agreements and related party status - The Dolan Family Group collectively beneficially owns 100% of the company's Class B Common Stock and approximately 3.6% of Class A Common Stock, representing about 64.1% of the aggregate voting power[92] Related Party Revenues and Operating Credits (Expenses) (in thousands) | Metric | Three Months Ended March 31, 2025 (in thousands) | Nine Months Ended March 31, 2025 (in thousands) | | :-------------------------------- | :----------------------------------------------- | :---------------------------------------------- | | Revenues from related parties | $47,709 | $94,470 | | Total operating credits (expenses), net | $28,158 | $90,150 | - The commercial agreement with CPC for sponsorship sales services is being wound down following a termination notice on September 20, 2024[94] - 605, LLC is no longer considered a related party as of September 13, 2023, following its sale to iSpot.tv[95] Note 13. Additional Financial Information This note provides supplementary financial details, including cash composition, prepaid expenses, other assets/liabilities, risk concentration, lease activities, stock repurchase program status, and income tax expenses Selected Financial Information (in thousands) | Metric | As of March 31, 2025 (in thousands) | As of June 30, 2024 (in thousands) | | :------------------------------------------ | :---------------------------------- | :--------------------------------- | | Cash, cash equivalents, and restricted cash | $89,474 | $33,555 | | Total prepaid expenses and other current assets | $101,756 | $90,801 | | Total other non-current assets | $140,910 | $110,283 | | Total accounts payable, accrued and other current liabilities | $175,470 | $203,750 | - In February 2025, the company recognized a right-of-use lease asset of $116,963 thousand and an additional lease obligation of $115,335 thousand for new office space, followed by a $9,700 thousand impairment[105] - The company repurchased 1,117,601 shares of Class A Common Stock for $39,692 thousand (excluding excise tax) during the nine months ended March 31, 2025, with approximately $70,000 thousand remaining available under the Stock Repurchase Program[106][202] - Income tax expense for the nine months ended March 31, 2025, was $43,124 thousand (effective tax rate of 40%), significantly higher than $397 thousand (effective tax rate of 1%) in the prior year, primarily due to state and local taxes, nondeductible officers' compensation, and the utilization of net operating losses[109][110] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations This section analyzes MSG Entertainment's financial condition and results for the three and nine months ended March 31, 2025, covering business overview, factors affecting results, revenue/expense analysis, adjusted operating income, liquidity, capital resources, and seasonality Introduction This introduction highlights that the MD&A contains forward-looking statements and specifies the company's fiscal year-end - The MD&A contains forward-looking statements that involve risks and uncertainties, and actual results may differ materially[111] - The company reports on a fiscal year basis ending on June 30th[114] Business Overview This section provides an overview of MSG Entertainment as a live entertainment company, its iconic venues, marquee content, and its status as an independent publicly traded entity - MSG Entertainment is a live entertainment company with iconic venues and marquee content, operating as a single reportable segment[119][120] - The company's venues include The Garden, The Theater at Madison Square Garden, Radio City Music Hall, the Beacon Theatre, and The Chicago Theatre, and it produces the Christmas Spectacular[120] - The company became an independent publicly traded entity on April 21, 2023, following a distribution from Sphere Entertainment Co[122] Factors Affecting Results of Operations This section discusses key factors influencing operating results, including event attraction, MSG Sports agreements, Christmas Spectacular popularity, and potential impacts of economic conditions - Operating results are largely dependent on the ability to attract concerts and other events, revenues from agreements with MSG Sports, and the continuing popularity of the Christmas Spectacular[123] - Weak economic conditions, particularly in the New York City and Chicago metropolitan areas, could negatively affect demand for suite licenses, tickets, concessions, merchandise, sponsorship, and the number of events[124] Results of Operations This section provides a detailed analysis of the company's revenues, expenses, operating income, and net income for the current and prior periods Results of Operations (in thousands) | Metric | Three Months Ended March 31, 2025 (in thousands) | Change YoY (%) | Nine Months Ended March 31, 2025 (in thousands) | Change YoY (%) | | :------------------------------------------------------------------------------------------------ | :----------------------------------------------- | :------------- | :---------------------------------------------- | :------------- | | Total Revenues | $242,465 | 6% | $788,596 | 2% | | Revenues from entertainment offerings | $160,214 | 10% | $593,571 | 2% | | Food, beverage, and merchandise revenues | $45,808 | 1% | $124,104 | (3)% | | Arena license fees and other leasing revenue | $36,443 | (1)% | $70,921 | 9% | | Total Direct operating expenses | $(138,870) | 2% | $(433,653) | 3% | | Selling, general, and administrative expenses | $(52,112) | 3% | $(155,047) | (3)% | | Depreciation and amortization | $(14,372) | (9)% | $(42,336) | (6)% | | Impairment of long-lived assets | $(9,700) | NM | $(9,700) | NM | | Restructuring charges | $(84) | 96% | $(14) | 100% | | Operating income | $27,327 | 63% | $147,846 | 22% | | Net income | $8,036 | 188% | $64,608 | (16)% | - The increase in revenues from entertainment offerings for the three months was driven by higher revenues subject to sharing with MSG Sports ($6,250 thousand), Christmas Spectacular production ($4,907 thousand), and venue-related sponsorship/signage/suite fees ($4,628 thousand), partially offset by lower event-related revenues ($3,601 thousand)[130] - The decrease in food, beverage, and merchandise revenues for the nine months was primarily due to lower sales at concerts, partially offset by higher sales at other live entertainment/sporting events, Christmas Spectacular, and Knicks/Rangers games[142] - Operating income increased by $10,524 thousand for the three months and $27,045 thousand for the nine months, primarily due to increased revenues, decreased direct operating expenses, and lower restructuring charges, partially offset by increased impairment of long-lived assets[161] - Interest expense decreased by $2,625 thousand for the three months and $4,963 thousand for the nine months, mainly due to lower average borrowings and lower interest rates under the National Properties Facilities[163] - Income tax expense for the nine months ended March 31, 2025, was $43,124 thousand (40% effective rate), compared to $397 thousand (1% effective rate) in the prior year, reflecting state/local taxes, nondeductible officer compensation, and utilization of net operating losses[168][169] Adjusted Operating Income (Loss) ("AOI") This section defines and reconciles Adjusted Operating Income (AOI), a non-GAAP measure used to evaluate the company's core operating performance - Adjusted Operating Income (AOI) is a non-GAAP financial measure used to evaluate the company's operating performance, excluding items such as depreciation, amortization, impairments, share-based compensation, and restructuring charges[171][173] Adjusted Operating Income (in thousands) | Metric | Three Months Ended March 31, 2025 (in thousands) | Change YoY (%) | Nine Months Ended March 31, 2025 (in thousands) | Change YoY (%) | | :-------------------------------- | :----------------------------------------------- | :------------- | :---------------------------------------------- | :------------- | | Operating income | $27,327 | 63% | $147,846 | 22% | | Adjusted operating income | $57,871 | 50% | $223,792 | 13% | Liquidity and Capital Resources This section discusses the company's primary sources of liquidity, including cash, operating cash flows, and credit facilities, and analyzes changes in cash flows from operating, investing, and financing activities - Primary sources of liquidity include cash and cash equivalents, cash flows from operations, and available borrowing capacity under the National Properties Revolving Credit Facility[178] - As of March 31, 2025, the company had $88,953 thousand in unrestricted cash and cash equivalents, $613,438 thousand in total debt outstanding, and $131,633 thousand in available borrowing capacity under the National Properties Revolving Credit Facility[179] - Net cash provided by operating activities increased by $31,254 thousand for the nine months ended March 31, 2025, primarily due to an increase in net income (adjusted for non-cash items) and improved working capital[189] - Net cash used in investing activities decreased by $53,246 thousand to $19,379 thousand, primarily due to the absence of a loan to a related party under the delayed draw term loan facility[191] - Net cash used in financing activities decreased by $27,466 thousand to $67,010 thousand, mainly due to decreased principal debt repayments and stock repurchases[192] Seasonality of Our Business This section explains the seasonal nature of the company's business, with a disproportionate share of revenues and operating income earned in the second and third fiscal quarters - The company generally earns a disproportionate share of its revenues and operating income in the second and third fiscal quarters[193] - This seasonality is driven by the Christmas Spectacular production and arena license fees from MSG Sports for the Knicks' and Rangers' home games at The Garden[193] Recently Issued Accounting Pronouncements and Critical Accounting Estimates This section refers to Note 2 for recently issued accounting pronouncements and confirms no material changes to critical accounting estimates from the prior fiscal year - Recently issued accounting pronouncements are discussed in Note 2 to the financial statements[194] - There have been no material changes to the company's critical accounting estimates from those set forth in the 2024 Form 10-K[195] Item 3. Quantitative and Qualitative Disclosures About Market Risk This section confirms no material changes to market risk disclosures from the 2024 Form 10-K and quantifies the impact of hypothetical interest rate increases on interest expense - There were no material changes to the disclosures regarding market risks in connection with the company's pension and postretirement plans from the 2024 Form 10-K[196] - A hypothetical 200 basis point increase in floating interest rates as of March 31, 2025, would increase the company's interest expense on outstanding credit facilities by $12,269 thousand annually[197] Item 4. Controls and Procedures Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes in internal control over financial reporting during the quarter - Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[198] - There were no material changes in the company's internal control over financial reporting during the fiscal quarter ended March 31, 2025[199] PART II - OTHER INFORMATION This section provides additional information beyond the financial statements, covering legal proceedings, equity security sales, and required exhibits Item 1. Legal Proceedings The company is involved in various lawsuits, but management does not anticipate a material adverse effect on its financial position from their resolution - The company is a defendant in various lawsuits[201] - Management does not believe that the resolution of these lawsuits will have a material adverse effect on the company[201] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds This section updates the share repurchase program, detailing Class A Common Stock repurchases during the period and the remaining authorization - The Board of Directors authorized a share repurchase program of up to $250 million of Class A Common Stock on March 29, 2023[202] - During the nine months ended March 31, 2025, the company repurchased 1,117,601 shares of Class A Common Stock for approximately $40 million[202] - As of March 31, 2025, approximately $70 million remained available for repurchases under the Stock Repurchase Program[202] - In March 2025, 436,008 shares were repurchased at an average price of $33.70 per share[203] Item 6. Exhibits This section lists all exhibits filed with the Form 10-Q, including CEO/CFO certifications, an employment agreement, and iXBRL-formatted financial statements - The exhibits include certifications by the Chief Executive Officer and Chief Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[206] - An Employment Agreement dated April 7, 2025, between Madison Square Garden Entertainment Corp. and David Collins is included as Exhibit 10.1[206] - The condensed consolidated financial statements are formatted in Inline Extensible Business Reporting Language (iXBRL)[206]