Related Party Transactions

6 Months Ended

Dec. 31, 2025

As of December 31, 2025, certain members of the Dolan family, including certain trusts for the benefit of members of the Dolan family (collectively, the “Dolan Family Group”), for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, collectively beneficially owned 100% of the Company’s outstanding Class B Common Stock, $0.01 par value per share (“Class B Common Stock”) and approximately 4.1% of the Company’s outstanding Class A Common Stock (inclusive of options exercisable within 60 days of December 31, 2025). Such shares of Class A Common Stock and Class B Common Stock, collectively, represent approximately 64.3% of the aggregate voting power of the Company’s outstanding common stock. Members of the Dolan Family Group are also the controlling stockholders of Sphere Entertainment, MSG Sports, and AMC Networks Inc.

See Note 16. Related Party Transactions, included in the Company’s Audited Consolidated and Combined Annual Financial Statements for a description of the Company’s current related party arrangements. There have been no material changes in such related party arrangements as of December 31, 2025, except as described below.

The Company has arrangements with Sphere Entertainment pursuant to which the Company provides certain advertising sales and representation services to MSGN Holdings, L.P. (“MSG Networks”), a wholly owned subsidiary of Sphere Entertainment, in exchange for a commission and certain cost reimbursements.

Sphere Entertainment provides certain technology services related to Sphere Immersive Sound to certain of the Company’s venues. For the three and six months ended December 31, 2025, gross capital additions associated with these arrangements were approximately $800 and $2,200, respectively, and are reported in Property and equipment, net in the accompanying condensed consolidated balance sheets.

Revenues and Operating Expenses

The following table summarizes the composition and amounts of the transactions with the Company’s related parties. The significant components of these amounts are discussed below. These amounts are reflected in revenues and operating expenses in the accompanying condensed consolidated statements of operations for the three and six months ended December 31, 2025 and 2024:


	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2025		2024		2025		2024
Revenues	$	43,915	$	38,878	$	51,398	$	46,761
Operating credits (expenses):
Revenue sharing expenses(a)	(8,242)		(6,845)		$	(9,786)	$	(7,995)
Reimbursement under Arena License Agreements	12,825		8,678		13,381		8,751
Cost reimbursement from MSG Sports	10,202		8,293		20,957		16,680
Cost reimbursement from Sphere Entertainment	16,057		22,993		32,129		45,986
Other operating (expenses) credits, net	(844)		(2,547)		951		(1,430)
Total operating credits, net (b)	$	29,998	$	30,572	$	57,632	$	61,992

_________________

(a) Amounts exclude revenue sharing expenses of $48,502 and $67,993 for the three and six months ended December 31, 2025 and $42,836 and $62,260 for the three and six months ended December 31, 2024, respectively, related to MSG Sports suites revenue sharing and are included in Direct operating expenses in the accompanying condensed consolidated statements of operations.

(b) Of the total operating credits (expenses), net, $2,379 and $1,039 for the three and six months ended December 31, 2025 and $146 and $(1,148), for the three and six months ended December 31, 2024, respectively, are recognized in direct operating expenses in the accompanying condensed consolidated statements of operations, and $27,619 and $56,593 for the three and six months ended December 31, 2025 and $30,426 and $63,140 for the three and six months ended December 31, 2024, respectively, are recognized in selling, general, and administrative expenses in the accompanying condensed consolidated statements of operations.

Revenues

The Company recorded $30,278 and $31,602 of revenues under the Arena License Agreements for the three and six months ended December 31, 2025, respectively. In addition to the Arena License Agreements, the Company’s revenues from related parties primarily reflected amounts earned under sponsorship sales and service representation agreements of $6,738 and $9,130 for the three and six months ended December 31, 2025, respectively, and merchandise sharing revenues with MSG Sports of $3,289 and $3,574 for the three and six months ended December 31, 2025, respectively. The Company also earned sublease revenue from related parties of $2,604 and $5,248 for the three and six months ended December 31, 2025, respectively.

The Company recorded $26,961 and $28,285 of revenues under the Arena License Agreements for the three and six months ended December 31, 2024, respectively. In addition to the Arena License Agreements, the Company’s revenues from related parties primarily reflected amounts earned under sponsorship sales and service representation agreements of $5,914 and $8,665 for the three and six months ended December 31, 2024, respectively, and merchandise sharing revenues with MSG Sports of $2,724 and $2,971 for the three and six months ended December 31, 2024, respectively. The Company also earned sublease revenue from related parties of $3,079 and $6,640 for the three and six months ended December 31, 2024, respectively.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
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-URI https://asc.fasb.org/1943274/2147483326/850-10-50-1

+ Details

Madison Square Garden Entertainment Corp. 10-Q