Madison Square Garden Entertainment Corp.MSGE
Madison Square Garden Entertainment Corp. Revenue Disclosure
Revenue Recognition
All revenue recognized in the consolidated and combined statements of operations is considered to be revenue from contracts with customers in accordance with ASC Topic 606, Revenue From Contracts with Customers (“ASC Topic 606”), except for revenues from the Arena License Agreements and leases and subleases that are accounted for in accordance with ASC Topic 842, Leases (“ASC Topic 842”). The Company’s revenues by category are outlined in Note 2. Summary of Significant Accounting Policies. In Fiscal Years 2025 and 2024, the Company did not have any material provisions for credit losses on receivables or contract assets arising from contracts with customers.
Revenues from entertainment offerings
The Company’s performance obligations with respect to revenues from entertainment offerings are generally satisfied at the point in time the related event occurs or as the underlying benefits are delivered over the term of the respective agreements.
Revenues from entertainment offerings include revenue from the license of The Garden’s suites for the Company’s or MSG Sports’ events. Suite license arrangements are generally multi-year fixed-fee arrangements that include annual fee increases. Payment terms for suite license arrangements can vary by contract, but payments are generally due in installments prior to provisions of access to the suite. The Company’s performance obligation under such arrangements is to provide the licensee with access to the suite when events occur at The Garden. The Company accounts for the performance obligation under these types of arrangements as a series and, as a result, the related suite license fees for all years during the license term are aggregated and revenue is recognized proportionately over the license period as the Company satisfies the related performance obligation. Progress toward satisfaction of the Company’s suite license performance obligation is measured as access to the suite is provided to the licensee for each event throughout the contractual term of the license.
Food, beverage, and merchandise revenues
The Company’s performance obligations with respect to revenue from food, beverage, and merchandise are satisfied at the point in time the related goods are transferred to the customer.
Arena License fees and other leasing revenue
In Fiscal Year 2020, the Company entered into Arena License Agreements with MSG Sports that require the Knicks and the Rangers to play their home games at The Garden. These agreements also provide for the provision of certain services by the Company to MSG Sports for MSG Sports events that are held at The Garden and include revenue-sharing provisions for certain agreements entered into by the Company and MSG Sports. The Arena License Agreements contain both lease and non-lease components. The revenue to be recognized with respect to the lease components of the Arena License Agreements is accounted for as operating lease revenue in accordance with ASC Topic 842. The non-lease components are accounted for in accordance with ASC Topic 606, as further discussed below.
During each of Fiscal Year 2025, 2024 and 2023, the Company recognized $68,068 of revenues under the Arena License Agreements.
Principal vs. Agent Considerations
Revenue for the Company’s suite license arrangements is recorded on a gross basis, as the Company is the principal in such transactions and controls the related goods or services before transfer to the customer. MSG Sports is entitled to a 67.5% share of the Company’s suite license revenue pursuant to the terms of the Arena License Agreements, which is recognized in the consolidated and combined statements of operations as a component of Direct operating expenses.
For sponsorship agreements entered into by the Company or by MSG Sports that contain performance obligations satisfied solely by the Company, revenue is recorded on a gross basis as the Company is the principal with respect to such performance obligations and controls the related goods or services before transfer to the customer. In accordance with the Arena License Agreements, MSG Sports is entitled to a share of the revenue generated from certain signage performance obligations where the Company is the principal. The Company records this signage revenue on a gross basis and MSG Sports’ share of such revenue as a component of Direct operating expenses within the consolidated and combined statements of operations.
For Fiscal Years 2025, 2024 and 2023, the Company recorded revenue-sharing expense of $147,008, $137,053 and $119,017, respectively, for MSG Sports’ share of the Company’s revenues from (i) suite licenses, (ii) certain signage and sponsorships, and (iii) food and beverage based upon the provisions of the underlying contractual arrangements, and on the basis of direct usage when specifically identified or allocated proportionally.
In Fiscal Year 2020, the Company entered into advertising sales representation agreements with certain subsidiaries of MSG Sports. Pursuant to these agreements, the Company has the exclusive right and obligation to sell sponsorship assets on behalf of the respective subsidiaries of MSG Sports. The Company is entitled to both fixed and variable commissions under the terms of these agreements. The Company recognizes the fixed component ratably over the term of the arrangement which corresponds with the Company’s satisfaction of its service-based performance obligations. Variable commissions are earned and recognized as the related sponsorship performance obligations are satisfied by MSG Sports. The Company is not the principal in such arrangements as it does not control the related goods or services prior to transfer to the customer. As an agent under these arrangements, the Company recognizes the advertising commission revenue on a net basis in the Revenues from entertainment offerings line in the consolidated and combined statements of operations.
The Company was also party to an advertising sales representation agreement (the “Networks Advertising Sales Representation Agreement”) with MSGN Holdings, L.P. (“MSG Networks”) until December 31, 2022.
See Note 16. Related Party Transactions for more information regarding the advertising sales representation agreements with subsidiaries of MSG Sports and Sphere Entertainment.
Disaggregation of Revenue
The following table disaggregates the Company’s consolidated and combined revenues by type of goods or services in accordance with the required entity-wide disclosure requirements of ASC Subtopic 280-10-50-38 to 40 and the disaggregation of revenue required disclosures in accordance with ASC Subtopic 606-10-50-5 for Fiscal Years 2025, 2024 and 2023. The footnotes to the table provide additional disclosure with respect to the timing of transfer of goods or services to the customer for each category.
| Year Ended June 30, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
Ticketing and venue license fee revenues (a) | $ | 453,242 | $ | 463,272 | $ | 396,375 | ||||||||||||||
Sponsorship and signage, suite license, and advertising commission revenues (b) | 252,665 | 254,079 | 243,079 | |||||||||||||||||
Other(c) | 6,387 | 6,546 | 4,431 | |||||||||||||||||
| Total revenues from entertainment offerings | 712,294 | 723,897 | 643,885 | |||||||||||||||||
Food, beverage, and merchandise revenues(d) | 150,506 | 162,092 | 135,933 | |||||||||||||||||
Total revenues from contracts with customers | 862,800 | 885,989 | 779,818 | |||||||||||||||||
| Arena license fees and other leasing revenue | 79,934 | 73,276 | 71,678 | |||||||||||||||||
| Total revenues | $ | 942,734 | $ | 959,265 | $ | 851,496 | ||||||||||||||
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(a) Amounts include ticket sales, including single night suite rentals and.other ticket-related revenue, and venue license fees from the Company’s events such as (i) concerts, (ii) the presentation of the Christmas Spectacular and (iii) other live entertainment and sporting events. Revenues from entertainment offerings are generally recognized at a point in time.
(b) Sponsorship and signage, suite license, and advertising commission revenues are generally recognized over time.
(c) Other primarily consists of venue tours which are generally recognized at a point in time.
(d) Food, beverage, and merchandise revenues are generally recognized at a point in time.
Contract Balances
The following table provides information about the opening and closing contract balances from the Company’s contracts with customers as of June 30, 2025, 2024 and 2023.
| As of June 30, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
Receivables from contracts with customers, net (a) | $ | 69,513 | $ | 74,113 | $ | 69,295 | ||||||||||||||
Contract assets, current (b) | 7,648 | 7,844 | 11,254 | |||||||||||||||||
Deferred revenue, including non-current portion (c) | 236,043 | 215,581 | 226,029 | |||||||||||||||||
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(a) Receivables from contracts with customers, net, which are reported in Accounts receivable, net and Related party receivables, current in the Company’s accompanying consolidated balance sheets, represent the Company’s unconditional rights to consideration under its contracts with customers. As of June 30, 2025, 2024 and 2023, the Company’s receivables from contracts with customers above included $3,649, $2,432 and $5,397, respectively, related to various related parties. See Note 16. Related Party Transactions for further details on these related party arrangements.
(b) Contract assets, current, which are reported in Prepaid expenses and other current assets in the Company’s accompanying consolidated balance sheets, primarily relate to the Company’s rights to consideration for goods or services transferred to customers, for which the Company does not have an unconditional right to bill as of the reporting date. Contract assets primarily relate to the Company’s rights to consideration for goods or services transferred to customers, for which the Company does not have an unconditional right to bill as of the reporting date. Contract assets are transferred to accounts receivable once the Company’s right to consideration becomes unconditional.
(c) Deferred revenue primarily relates to the Company’s receipt of consideration from customers in advance of the Company’s transfer of goods or services to the customers. Deferred revenue is reduced and the related revenue is recognized once the underlying goods or services are transferred to a customer. Revenue recognized for Fiscal Year 2025 relating to the deferred revenue balance as of June 30, 2024 was $186,696.
Transaction Price Allocated to the Remaining Performance Obligations
The Company’s remaining performance obligations under contracts primarily relate to performance obligations under sponsorship and suite license agreements that have original expected durations longer than one year and for which the considerations are not variable. In developing the estimated revenue, the Company applies the allowable practical expedient and does not disclose information about remaining performance obligations that have original expected durations of one year or less.
The following table depicts the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of June 30, 2025:
| As of June 30, 2025 | ||||||||
| Fiscal year ending June 30, 2026 | $ | 188,996 | ||||||
| Fiscal year ending June 30, 2027 | 138,998 | |||||||
| Fiscal year ending June 30, 2028 | 91,344 | |||||||
| Fiscal year ending June 30, 2029 | 63,541 | |||||||
| Fiscal year ending June 30, 2030 | 42,630 | |||||||
| Thereafter | 32,681 | |||||||
| Total | $ | 558,190 | ||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Aug 13, 2025 | Showing above |
| 2023 | Aug 18, 2023 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.