Sphere Entertainment Co.SPHR
Sphere Entertainment Co. Revenue Disclosure
Revenue Recognition
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All revenue recognized in the consolidated statements of operations is considered to be revenue from contracts with customers in accordance with ASC Topic 606 — Revenue From Contracts with Customers, except for revenues from sublease arrangements as disclosed below. For all periods presented, the Company did not have any material provisions for credit losses on receivables or contract assets arising from contracts with customers.
Sphere Segment
The Sphere segment earns revenue primarily from ticket sales to our audiences for The Sphere Experience, license fees for our venue paid by third-party promoters or licensees in connection with events that we do not produce or promote/co-promote, sponsorships and signage, advertising on the Exosphere, suite license fees at Sphere, facility and ticketing fees, concessions, and the sale of merchandise.
MSG Networks Segment
The MSG Networks segment generates revenues principally from distribution fees, as well as from the sale of advertising. Distribution revenue includes both affiliation fee revenue earned from fees charged to cable, satellite, fiber-optic and other platforms (“Distributors”) for the right to carry the Company’s networks as well as revenue earned from subscriptions and single game purchases on MSG+ (which is included in the Gotham Sports streaming product). Advertising revenue is largely derived from the sale of inventory in MSG Networks’ live professional sports programming, and as such, a significant share of this revenue has historically been earned in the three months ending March 31 and December 31. The performance obligation under affiliation agreements with Distributors is satisfied as MSG Networks provides its programming over the term of the agreement. Media related revenue as presented below includes both distribution revenue earned from Distributors for the right to carry the Company’s networks as well as revenue earned from subscriptions and single game purchases on MSG+ (which is included in the Gotham Sports streaming product).
Substantially all of MSG Networks’ affiliation agreements are sales-based and usage-based royalty arrangements; revenue is recognized as the sale or usage occurs. The transaction price is represented by affiliation fees that are generally based upon contractual rates applied to the number of the Distributor’s subscribers who receive or can receive MSG Networks programming. Such subscriber information is generally not received until after the close of the reporting period, and in these cases, the Company estimates the number of subscribers. Historical adjustments to recorded estimates have not been material.
The MSG Networks segment also generates advertising revenue primarily through the sale of commercial time and other advertising inventory during its live professional sports programming. In general, these advertising arrangements either do not exceed one year or are primarily multi-year media banks, the elements of which are agreed upon each year. Advertising revenue is recognized as advertising is aired. In certain advertising arrangements, the Company guarantees specified viewer ratings for its programming. In such cases, the promise to deliver the guaranteed viewer ratings by airing the advertising represents MSG Networks’ performance obligation. A contract liability is recognized as deferred revenue to the extent any guaranteed viewer ratings are not met. This permits the customer to exercise a contractual right for additional advertising time. The related deferred revenue is subsequently recognized as
revenue either when MSG Networks provides the required additional advertising time, or additional performance requirements become remote, which may be at the time the guarantee obligation contractually expires.
Disaggregation of Revenue
The following tables disaggregate the Company’s revenue by major source and reportable segment based upon the timing of transfer of goods or services to the customer for the year ended December 31, 2025, the six months ended December 31, 2024, and the years ended June 30, 2024 and 2023:
| Year Ended December 31, 2025 | ||||||||||||||||||||
| Sphere | MSG Networks | Total | ||||||||||||||||||
Event-related (a) | $ | 689,254 | $ | — | $ | 689,254 | ||||||||||||||
Sponsorship, signage, Exosphere advertising, and suite licenses (b) | 68,103 | 1,584 | 69,687 | |||||||||||||||||
Media related, primarily from affiliation agreements (b) | — | 431,476 | 431,476 | |||||||||||||||||
| Other | 22,233 | 5,573 | 27,806 | |||||||||||||||||
| Total revenues from contracts with customers | $ | 779,590 | $ | 438,633 | $ | 1,218,223 | ||||||||||||||
| Revenues from subleases | 1,822 | — | 1,822 | |||||||||||||||||
| Total revenues | $ | 781,412 | $ | 438,633 | $ | 1,220,045 | ||||||||||||||
| Six Months Ended December 31, 2024 | ||||||||||||||||||||
| Sphere | MSG Networks | Total | ||||||||||||||||||
Event-related (a) | $ | 253,305 | $ | — | $ | 253,305 | ||||||||||||||
Sponsorship, signage, Exosphere advertising, and suite licenses (b) | 28,726 | 723 | 29,449 | |||||||||||||||||
Media related, primarily from affiliation agreements (b) | — | 237,280 | 237,280 | |||||||||||||||||
| Other | 12,614 | 2,108 | 14,722 | |||||||||||||||||
| Total revenues from contracts with customers | $ | 294,645 | $ | 240,111 | $ | 534,756 | ||||||||||||||
| Revenues from subleases | 1,447 | — | 1,447 | |||||||||||||||||
| Total revenues | $ | 296,092 | $ | 240,111 | $ | 536,203 | ||||||||||||||
| Year Ended June 30, 2024 | ||||||||||||||||||||
| Sphere | MSG Networks | Total | ||||||||||||||||||
Event-related (a) | $ | 420,327 | $ | — | $ | 420,327 | ||||||||||||||
Sponsorship, signage, Exosphere advertising, and suite licenses (b) | 68,876 | 2,178 | 71,054 | |||||||||||||||||
Media related, primarily from affiliation agreements (b) | — | 521,611 | 521,611 | |||||||||||||||||
| Other | 4,928 | 5,941 | 10,869 | |||||||||||||||||
| Total revenues from contracts with customers | $ | 494,131 | $ | 529,730 | $ | 1,023,861 | ||||||||||||||
| Revenues from subleases | 3,028 | — | 3,028 | |||||||||||||||||
| Total revenues | $ | 497,159 | $ | 529,730 | $ | 1,026,889 | ||||||||||||||
| Year Ended June 30, 2023 | ||||||||||||||||||||
| Sphere | MSG Networks | Total | ||||||||||||||||||
Sponsorship, signage, Exosphere advertising, and suite licenses (b) | $ | — | $ | 6,990 | $ | 6,990 | ||||||||||||||
Media related, primarily from affiliation agreements (b) | — | 558,362 | 558,362 | |||||||||||||||||
| Other | — | 5,869 | 5,869 | |||||||||||||||||
| Total revenues from contracts with customers | $ | — | $ | 571,221 | $ | 571,221 | ||||||||||||||
| Revenues from subleases | 2,610 | — | 2,610 | |||||||||||||||||
| Total revenues | $ | 2,610 | $ | 571,221 | $ | 573,831 | ||||||||||||||
(a) Event-related revenues consists of (i) ticket sales and other revenue directly related to the exhibition of The Sphere Experience, (ii) ticket sales and other ticket-related revenues to other events at our venue, (iii) venue license fees from third-party promoters, and (iv) food, beverage and merchandise sales. Event-related revenues are recognized at a point in time. As such, these revenues have been included in the same category in the table above.
(b) Sponsorship and signage, Exosphere advertising, suite licenses, and media related revenues are generally recognized over time.
In addition to the disaggregation of the Company’s revenue by major source based upon the timing of transfer of goods or services to the customer disclosed above, the following tables disaggregate the Company’s consolidated 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 the year ended December 31, 2025, the six months ended December 31, 2024, and the years ended June 30, 2024 and 2023.
| Year Ended December 31, 2025 | ||||||||||||||||||||
| Sphere | MSG Networks | Total | ||||||||||||||||||
Ticketing and venue license fee revenues (a) | $ | 560,807 | $ | — | $ | 560,807 | ||||||||||||||
| Sponsorship, signage, Exosphere advertising, and suite revenues | 96,151 | — | 96,151 | |||||||||||||||||
| Food, beverage and merchandise revenues | 100,399 | — | 100,399 | |||||||||||||||||
Media networks revenues (b) | — | 438,633 | 438,633 | |||||||||||||||||
Other | 22,233 | — | $ | 22,233 | ||||||||||||||||
| Total revenues from contracts with customers | $ | 779,590 | $ | 438,633 | $ | 1,218,223 | ||||||||||||||
| Revenues from subleases | 1,822 | — | 1,822 | |||||||||||||||||
| Total revenues | $ | 781,412 | $ | 438,633 | $ | 1,220,045 | ||||||||||||||
| Six Months Ended December 31, 2024 | ||||||||||||||||||||
| Sphere | MSG Networks | Total | ||||||||||||||||||
Ticketing and venue license fee revenues (a) | $ | 207,024 | $ | — | $ | 207,024 | ||||||||||||||
| Sponsorship, signage, Exosphere advertising, and suite revenues | 40,104 | — | 40,104 | |||||||||||||||||
| Food, beverage and merchandise revenues | 34,903 | — | 34,903 | |||||||||||||||||
Media networks revenues (b) | — | 240,111 | 240,111 | |||||||||||||||||
Other | 12,614 | — | 12,614 | |||||||||||||||||
| Total revenues from contracts with customers | $ | 294,645 | $ | 240,111 | $ | 534,756 | ||||||||||||||
| Revenues from subleases | 1,447 | — | 1,447 | |||||||||||||||||
| Total revenues | $ | 296,092 | $ | 240,111 | $ | 536,203 | ||||||||||||||
| Year Ended June 30, 2024 | ||||||||||||||||||||
| Sphere | MSG Networks | Total | ||||||||||||||||||
Ticketing and venue license fee revenues (a) | $ | 335,328 | $ | — | $ | 335,328 | ||||||||||||||
| Sponsorship, signage, Exosphere advertising, and suite revenues | 87,173 | — | 87,173 | |||||||||||||||||
| Food, beverage and merchandise revenues | 66,702 | — | 66,702 | |||||||||||||||||
Media networks revenues (b) | — | 529,730 | 529,730 | |||||||||||||||||
| Other | 4,928 | — | 4,928 | |||||||||||||||||
| Total revenues from contracts with customers | $ | 494,131 | $ | 529,730 | $ | 1,023,861 | ||||||||||||||
| Revenues from subleases | 3,028 | — | 3,028 | |||||||||||||||||
| Total revenues | $ | 497,159 | $ | 529,730 | $ | 1,026,889 | ||||||||||||||
| Year Ended June 30, 2023 | ||||||||||||||||||||
| Sphere | MSG Networks | Total | ||||||||||||||||||
Media networks revenues (b) | $ | — | $ | 571,221 | $ | 571,221 | ||||||||||||||
| Revenues from subleases | 2,610 | — | 2,610 | |||||||||||||||||
| Total revenues | $ | 2,610 | $ | 571,221 | $ | 573,831 | ||||||||||||||
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(a) Amounts include ticket sales, other ticket-related revenue, and venue license fees from the Company’s events such as (i) concerts, (ii) The Sphere Experience (iii) brand events (formerly referred to as corporate events) and (iv) other live entertainment and sporting events.
(b) Primarily consists of affiliation fees from cable, satellite, fiber-optic and other platforms that distribute MSG Networks’ programming and, to a lesser extent, advertising revenues through the sale of commercial time and other advertising inventory during MSG Networks’ programming.
Contract Balances
The following table provides information about contract balances from the Company’s contracts with customers as of December 31, 2025 and 2024 and as of June 30, 2024.
| As of December 31, | As of June 30, | |||||||||||||||||||
| 2025 | 2024 | 2024 | ||||||||||||||||||
Receivables from contracts with customers, net (a) | $ | 173,525 | $ | 154,949 | $ | 228,230 | ||||||||||||||
Contract assets, current (b) | 445 | 1,500 | 1,500 | |||||||||||||||||
Contract assets, non-current (b) | — | 1,307 | 907 | |||||||||||||||||
Deferred revenue, including non-current portion (c) | 250,170 | 138,057 | 97,151 | |||||||||||||||||
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(a) As of December 31, 2025 and 2024 and June 30, 2024 the Company’s receivables from contracts with customers above included $1,895, $325 and $0, respectively, related to various related parties. See Note 19. Related Party Transactions for further details on these related party arrangements.
(b) Contract assets, current and Contract assets, non-current, which are reported as Prepaid expenses and other current assets and Other non-current assets in the Company’s 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 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 the year ended December 31, 2025 relating to the deferred revenue balance as of December 31, 2024 was $92,973.
Transaction Price Allocated to the Remaining Performance Obligations
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 December 31, 2025. This includes performance obligations under sponsorship agreements and the Company’s agreements with DCT Abu Dhabi that have original expected durations longer than one year and for which the respective consideration is 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.
As of December 31, 2025 | ||||||||
| Year ending December 31, 2026 | $ | 116,446 | ||||||
| Year ending December 31, 2027 | 78,737 | |||||||
| Year ending December 31, 2028 | 53,387 | |||||||
| Year ending December 31, 2029 | 33,389 | |||||||
| Year ending December 31, 2030 | 22,083 | |||||||
| Thereafter | 97,792 | |||||||
| $ | 401,834 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Aug 14, 2024 | |
| 2023 | Aug 22, 2023 | |
| 2022 | Aug 19, 2022 | |
| 2021 | Aug 23, 2021 | |
| 2020 | Aug 31, 2020 | |
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.