MSG Networks Overview - MSG Networks, acquired in July 2021, is a leader in sports production and distribution, featuring award-winning networks MSG Network and MSG+[74] - MSG Networks has won more New York Emmy Awards for live sports and original programming than any other regional sports network in the past 10 years[77] - MSG Networks provides access to exclusive live local games and programming for teams like the Knicks and Rangers, airing hundreds of live professional games annually[79] - MSG GO allows subscribers to access content on various devices, currently available to all major distributors[76] - MSG Networks is positioned as a premium destination for sports gaming content, enhancing its programming offerings[80] Tao Group Hospitality - Tao Group Hospitality operates over 70 branded locations across 60 venues in more than 20 markets globally, including major cities like New York and Las Vegas[82] - In Fiscal Year 2022, Tao Group Hospitality opened two new locations and has plans for additional openings, including a waterfront restaurant in Miami[83] - The company has a controlling interest in Tao Group Hospitality, which operates over 70 entertainment dining and nightlife locations across 20 markets globally[131] Employee and Workforce Information - As of June 30, 2022, the company employed approximately 2,200 full-time and 8,700 part-time employees, highlighting its substantial workforce[126] - Approximately 38% of the company's employees are represented by unions, with 7% of union employees under collective bargaining agreements that expired as of June 30, 2022[129] Competition and Market Landscape - The company faces significant competition in the entertainment sector, particularly in New York City, which is one of the most competitive markets globally, with numerous live performances and attractions[108] - The competitive landscape for programming networks is intense, with challenges in securing distribution and programming rights against larger networks and direct-to-consumer services[114] - The company competes for advertising revenue, which is influenced by factors such as viewer preferences and the performance of sports teams[119] Financial and Regulatory Considerations - The Company is subject to potential interest rate risk exposure, with a hypothetical 200 basis point increase in floating interest rates potentially increasing interest expense by $35,247[522] - The GBP/USD exchange rate fluctuated between 1.1999 and 1.3967 during Fiscal Year 2022, with a hypothetical 10% fluctuation resulting in a change of $18,315 in the Company's net asset value[524] - The weighted-average discount rates for the Company's Pension Plans and Postretirement Plan were 4.85% and 4.64% as of June 30, 2022, respectively[527] - A 25 basis point decrease in the assumed discount rates would increase projected benefit obligations by $4,640 for the Pension Plans and $50 for the Postretirement Plan[527] - The expected long-term rate of return on plan assets for the Company's funded pension plans was 4.79% for Fiscal Year 2022[529] - A 25 basis point decrease in the long-term return on pension plan assets assumption would increase net periodic pension benefit cost by $290 for Fiscal Year 2022[530] Community and Social Responsibility - The Company has committed over $5.8 million in aid through the Inspire Scholarship program to support high school seniors with college expenses[90] - The company aims to enhance diversity and inclusion through initiatives led by its Diversity and Inclusion Council, focusing on workforce, workplace, and community[122] Health and Safety Protocols - The company has implemented health and safety protocols in response to COVID-19 to protect employees and guests at its venues[130] Regulatory Compliance - The company is subject to various regulations regarding its websites and mobile applications, including privacy laws and consumer protection regulations[107]
Sphere Entertainment (SPHR) - 2022 Q4 - Annual Report