10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________

FORM 10-Q

________________________

(Mark One)

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2015

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from             to

Commission File Number: 1-34434

________________________

MSG Networks Inc.

(Exact name of registrant as specified in its charter)

Delaware	27-0624498
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

_______________________ 

11 Pennsylvania Plaza

New York, NY 10001

(212) 465-6400

(Address, including zip code, and telephone number, including area code, of registrant's principal executive offices)

_______________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer þ Accelerated filero Non-accelerated filer o Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No þ

Number of shares of common stock outstanding as of January 29, 2016:

Class A Common Stock par value $0.01 per share	—	61,226,341
Class B Common Stock par value $0.01 per share	—	13,588,555

MSG NETWORKS INC.

INDEX TO FORM 10-Q

	Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets as of December 31, 2015 and June 30, 2015 (unaudited)	1
Consolidated Statements of Operations for the three and six months ended December 31, 2015 and 2014 (unaudited)	2
Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended December 31, 2015 and 2014 (unaudited)	3
Consolidated Statements of Cash Flows for the six months ended December 31, 2015 and 2014 (unaudited)	4
Consolidated Statements of Stockholders' Equity (Deficiency) for the six months ended December 31, 2015 and 2014 (unaudited)	5
Notes to Consolidated Financial Statements (unaudited)	6
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3. Quantitative and Qualitative Disclosures About Market Risk	33
Item 4. Controls and Procedures	33
PART II. OTHER INFORMATION
Item 1. Legal Proceedings	34
Item 6. Exhibits	34

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

MSG NETWORKS INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited) (in thousands, except per share data)

	December 31, 2015			June 30, 2015
ASSETS
Current Assets:
Cash and cash equivalents	$	237,833		$	203,768
Restricted cash	—			9,003
Accounts receivable, net	85,740			85,610
Net related party receivables	43,784			27,324
Prepaid expenses	12,135			43,238
Other current assets	2,093			3,514
Current assets of discontinued operations	—			125,896
Total current assets	381,585			498,353
Property and equipment, net	15,963			19,514
Amortizable intangible assets, net	45,853			47,583
Goodwill	424,508			424,508
Other assets	43,080			46,274
Non-current assets of discontinued operations	—			1,983,597
Total assets	$	910,989		$	3,019,829
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)
Current Liabilities:
Accounts payable	$	1,958		$	11,359
Net related party payables	25,463			420
Current portion of long-term debt	88,664			—
Income taxes payable	127,414			—
Accrued liabilities:
Employee related costs	6,828			19,504
Other accrued liabilities	19,798			18,101
Deferred revenue	8,077			4,971
Current liabilities of discontinued operations	—			520,179
Total current liabilities	278,202			574,534
Long-term debt, net of current portion	1,449,052			—
Defined benefit and other postretirement obligations	29,168			28,476
Other employee related costs	4,690			5,318
Related party payable	1,652			—
Other liabilities	3,850			5,951
Deferred tax liability	358,244			351,734
Non-current liabilities of discontinued operations	—			330,294
Total liabilities	2,124,858			1,296,307
Commitments and contingencies (see Note 9)
Stockholders' Equity (Deficiency):
Class A Common stock, par value $0.01, 360,000 shares authorized; 61,226 and 62,207 shares outstanding as of December 31, 2015 and June 30, 2015, respectively	643			643
Class B Common stock, par value $0.01, 90,000 shares authorized; 13,589 shares outstanding as of December 31, 2015 and June 30, 2015	136			136
Preferred stock, par value $0.01, 45,000 shares authorized; none outstanding	—			—
Additional paid-in capital	—			1,084,002
Treasury stock, at cost, 3,033 and 2,052 shares as of December 31, 2015 and June 30, 2015, respectively	(217,812		)	(143,250		)
Retained earnings (accumulated deficit)	(991,014		)	807,563
Accumulated other comprehensive loss	(5,822		)	(25,572		)
Total stockholders' equity (deficiency)	(1,213,869		)	1,723,522
Total liabilities and stockholders' equity (deficiency)	$	910,989		$	3,019,829

See accompanying notes to consolidated financial statements.

1

MSG NETWORKS INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited) (in thousands, except per share data)

	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2015			2014			2015			2014
Revenues (including related party revenues of $41,673 and $42,129 for the three months ended December 31, 2015 and 2014, respectively, and $82,122 and $82,344 for the six months ended December 31, 2015 and 2014, respectively)	$	169,931		$	166,220		$	318,078		$	308,890
Direct operating expenses (including related party expenses of $34,619 and $21,867 for the three months ended December 31, 2015 and 2014, respectively, and $68,273 and $43,008 for the six months ended December 31, 2015 and 2014, respectively)	71,547			59,122			131,649			104,773
Selling, general and administrative expenses (including related party expenses of $10,420 and $1,523 for the three months ended December 31, 2015 and 2014, respectively, and $11,327 and $3,148 for the six months ended December 31, 2015 and 2014, respectively)	22,370			44,012			63,488			81,805
Depreciation and amortization	3,091			4,445			7,770			8,730
Gain on sale of Fuse (see Note 5)	—			(23,764		)	—			(186,178		)
Operating income	72,923			82,405			115,171			299,760
Other income (expense):
Interest income	548			515			1,084			1,000
Interest expense	(9,712		)	(1,042		)	(11,569		)	(2,048		)
	(9,164		)	(527		)	(10,485		)	(1,048		)
Income from continuing operations before income taxes	63,759			81,878			104,686			298,712
Income tax expense	(29,709		)	(32,962		)	(29,305		)	(129,374		)
Income from continuing operations	34,050			48,916			75,381			169,338
Income (loss) from discontinued operations, net of taxes	(137		)	12,314			(161,154		)	(35		)
Net income (loss)	$	33,913		$	61,230		$	(85,773	)	$	169,303
Earnings (loss) per share:
Basic
Income from continuing operations	$	0.45		$	0.63		$	1.00		$	2.18
Income (loss) from discontinued operations	—			0.16			(2.14		)	—
Net income (loss)	$	0.45		$	0.79		$	(1.14	)	$	2.18
Diluted
Income from continuing operations	$	0.45		$	0.63		$	1.00		$	2.16
Income (loss) from discontinued operations	—			0.15			(2.13		)	—
Net income (loss)	$	0.45		$	0.78		$	(1.13	)	$	2.16
Weighted-average number of common shares outstanding:
Basic	74,959			77,727			75,240			77,611
Diluted	75,373			78,252			75,639			78,271

See accompanying notes to consolidated financial statements.

2

MSG NETWORKS INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited) (in thousands)

	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2015			2014			2015			2014
Net income (loss)	$	33,913		$	61,230		$	(85,773	)	$	169,303
Other comprehensive income (loss), before income taxes:
Pension plans and postretirement plan:
Net unamortized losses arising during the period	$	—		$	—		$	(602	)	$	—
Amounts reclassified from accumulated other comprehensive loss:
Amortization of net actuarial loss included in net periodic benefit cost	125			571			501			1,142
Amortization of net prior service credit included in net periodic benefit cost	(11		)	(29		)	(28		)	(58		)
Other comprehensive income (loss) before income taxes	114			542			(129		)	1,084
Income tax expense related to items of other comprehensive income (loss)	(47		)	(234		)	(527		)	(465		)
Other comprehensive income (loss)	67			308			(656		)	619
Comprehensive income (loss)	$	33,980		$	61,538		$	(86,429	)	$	169,922

See accompanying notes to consolidated financial statements.

3

MSG NETWORKS INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited) (in thousands)

	Six Months Ended
	December 31,
	2015			2014
Cash flows from operating activities from continuing operations:
Net income (loss)	$	(85,773	)	$	169,303
Loss from discontinued operations, net of taxes	161,154			35
Income from continuing operations	75,381			169,338
Adjustments to reconcile net income to net cash provided by operating activities from continuing operations:
Depreciation and amortization	7,770			8,730
Amortization of deferred financing costs	1,732			800
Share-based compensation expense	6,899			8,002
Excess tax benefit on share-based awards	(4,420		)	(10,245		)
Gain on sale of Fuse, before income taxes	—			(186,178		)
Change in income taxes payable and deferred income taxes related to the sale of Fuse	—			29,066
Provision for doubtful accounts	430			123
Change in assets and liabilities:
Accounts receivable, net	(560		)	(6,726		)
Net related party receivables	(15,829		)	480
Prepaid expenses and other assets	12,235			3,799
Accounts payable	(9,401		)	6,414
Net related party payables, including payable to MSG	24,455			503
Income taxes payable, excluding the impact of the change in income taxes payable related to the sale of Fuse	38,190			9,595
Accrued and other liabilities	(10,649		)	(9,615		)
Deferred revenue	3,106			(1,021		)
Deferred income taxes, excluding the impact of the change in deferred income taxes related to the sale of Fuse	(10,479		)	6,645
Net cash provided by operating activities from continuing operations	118,860			29,710
Cash flows from investing activities from continuing operations:
Capital expenditures	(1,950		)	(2,859		)
Proceeds from sale of Fuse, net of transaction costs (see Note 5)	—			228,063
Net cash provided by (used in) investing activities from continuing operations	(1,950		)	225,204
Cash flows from financing activities from continuing operations:
Proceeds from Term Loan Facility (see Note 8)	1,550,000			—
Cash distributed with MSG	(1,467,093		)	—
Payments for financing costs	(9,860		)	(70		)
Proceeds from stock option exercises	98			308
Repurchases of common stock	(100,027		)	(1,398		)
Taxes paid in lieu of shares issued for equity-based compensation	(11,114		)	(16,416		)
Excess tax benefit on share-based awards	4,420			10,245
Net cash used in financing activities from continuing operations	(33,576		)	(7,331		)
Net cash provided by continuing operations	83,334			247,583
Cash flows of discontinued operations
Net cash provided by operating activities	4,224			85,335
Net cash used in investing activities	(68,410		)	(46,249		)
Net cash used in financing activities	—			—
Net cash provided by (used) in discontinued operations	(64,186		)	39,086
Cash and cash equivalents at beginning of period, including cash in both continuing operations and discontinued operations	218,685			92,251
Cash and cash equivalents at end of period	$	237,833		$	378,920
Supplemental Data:
Income taxes paid, net	$	193		$	83,499
Interest paid for Revolving Credit Facility	8,922			—
Non-cash investing and financing activities:
Capital expenditures incurred but not yet paid for continuing operations	$	560		$	808
Non-cash net assets of MSG transferred in connection with the Distribution	1,285,658			—

See accompanying notes to consolidated financial statements.

4

MSG NETWORKS INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIENCY)

(Unaudited) (in thousands)

	Common Stock Issued		Additional Paid-In Capital			Treasury Stock			Retained Earnings (Accumulated Deficit)			Accumulated Other Comprehensive Income (Loss)			Total
Balance as of June 30, 2015	$	779	$	1,084,002		$	(143,250	)	$	807,563		$	(25,572	)	$	1,723,522
Net loss	—		—			—			(85,773		)	—			(85,773		)
Other comprehensive loss	—		—			—			—			(656		)	(656		)
Comprehensive loss															(86,429		)
Exercise of stock options	—		(4,633		)	5,390			—			—			757
Share-based compensation	—		7,753			—			—			—			7,753
Tax withholding associated with shares issued for equity-based compensation	—		(11,114		)	—			—			—			(11,114		)
Excess tax benefit on share-based      awards	—		8,586			—			(4,166		)	—			4,420
Repurchases of common stock	—		—			(100,027		)	—			—			(100,027		)
Shares issued upon distribution of Restricted Stock Units	—		(16,626		)	20,075			(3,449		)	—			—
Distribution of The Madison Square Garden Company	—		(1,067,968		)	—			(1,705,189		)	20,406			(2,752,751		)
Balance as of December 31, 2015	$	779	$	—		$	(217,812	)	$	(991,014	)	$	(5,822	)	$	(1,213,869	)

	Common Stock Issued		Additional Paid-In Capital			Treasury Stock			Retained Earnings		Accumulated Other Comprehensive  Income (Loss)			Total
Balance as of June 30, 2014	$	775	$	1,081,055		$	(7,537	)	$	552,862	$	(22,711	)	$	1,604,444
Net income	—		—			—			169,303		—			169,303
Other comprehensive income	—		—			—			—		619			619
Comprehensive income														169,922
Exercise of stock options	1		280			—			—		—			281
Share-based compensation	—		10,644			—			—		—			10,644
Tax withholding associated with shares issued for equity-based compensation	—		(16,416		)	—			—		—			(16,416		)
Excess tax benefit on share-based      awards	—		10,245			—			—		—			10,245
Repurchases of common stock	—		—			(1,398		)	—		—			(1,398		)
Shares issued upon distribution of Restricted Stock Units	3		(406		)	403			—		—			—
Balance as of December 31, 2014	$	779	$	1,085,402		$	(8,532	)	$	722,165	$	(22,092	)	$	1,777,722

See accompanying notes to consolidated financial statements.

5

MSG NETWORKS INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

All amounts included in the following Notes to Consolidated Financial Statements are presented in thousands, except per share data or as otherwise noted.

Note 1. Description of Business and Basis of Presentation

Description of Business

MSG Networks Inc. (together with its subsidiaries, the “Company”) produces, develops and acquires content for multiple distribution platforms and is comprised principally of the Company's regional sports and entertainment networks, MSG Network and MSG+, collectively the “MSG Networks.”

On September 30, 2015 (the “Distribution Date”), the Company distributed to its stockholders all of the outstanding common stock of The Madison Square Garden Company (formerly MSG Spinco, Inc., and referred to herein as “MSG”) (the “Distribution”). MSG owns, directly or indirectly, the sports and entertainment businesses previously owned and operated by the Company's Sports and Entertainment segments, owns, leases or operates the arenas and other venues previously owned, leased or operated by the Company and owns the joint venture interests previously owned by the Company. In the Distribution, each holder of the Company’s Class A common stock, par value $0.01 per share, of record as of the close of business, New York City time, on September 21, 2015 (the “Record Date”), received one share of MSG Class A common stock, par value $0.01 per share, for every three shares of the Company’s Class A common stock held on the Record Date. Each record holder of the Company’s Class B common stock, par value $0.01 per share, received one share of MSG Class B common stock, par value $0.01 per share, for every three shares of the Company's Class B common stock held on the Record Date. Subsequent to the Distribution, the Company no longer consolidates the financial results of MSG for the purpose of its own financial reporting and the historical financial results of MSG have been reflected in the Company's consolidated financial statements as discontinued operations for all periods presented through the Distribution Date.

After giving effect to the Distribution, the Company operates and reports financial information in one segment.

Unaudited Interim Financial Statements

The accompanying interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information and the instructions to Rule 10-01 of Regulation S-X, and should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended June 30, 2015. The financial statements as of December 31, 2015 and for the three and six months ended December 31, 2015 and 2014 presented in this Quarterly Report on Form 10-Q are unaudited; however, in the opinion of management such financial statements reflect all adjustments, consisting solely of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods presented. The results of operations for the periods presented are not necessarily indicative of the results that might be expected for future interim periods or for the full year.

Reclassifications

Certain amounts reported for the prior period in the accompanying unaudited financial statements have been reclassified in order to conform to the current period’s presentation. Assets and liabilities related to the Distribution on the Company's consolidated balance sheet as of June 30, 2015 have been reclassified as assets and liabilities of discontinued operations (See Note 3 for further details). All assets and liabilities related to discontinued operations are excluded from the footnotes unless otherwise noted. In addition, the historical results of MSG have been reflected in the accompanying statements of operations for the three and six months ended December 31, 2014 as discontinued operations.

Note 2. Accounting Policies

Principles of Consolidation

The consolidated financial statements of the Company include the accounts of MSG Networks Inc. and its subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. See Note 3 for a discussion of media rights recognized as revenues by MSG from the licensing of team-related programming to the Company.

Use of Estimates

The preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Such estimates include the valuation of accounts receivable, goodwill, intangible assets, other long-lived assets, tax accruals and other

6

MSG NETWORKS INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Continued)

liabilities. In addition, estimates are used in revenue recognition, income tax expense, performance and share-based compensation, depreciation and amortization, litigation matters and other matters. Management believes its use of estimates in the consolidated financial statements to be reasonable.

Management evaluates its estimates on an ongoing basis using historical experience and other factors, including the general economic environment and actions it may take in the future. The Company adjusts such estimates when facts and circumstances dictate. However, these estimates may involve significant uncertainties and judgments and cannot be determined with precision. In addition, these estimates are based on management's best judgment at a point in time and as such these estimates may ultimately differ from actual results. Changes in estimates resulting from weakness in the economic environment or other factors beyond the Company's control could be material and would be reflected in the Company's financial statements in future periods.

Recently Adopted Accounting Pronouncements

In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which amends the FASB Accounting Standards Codification (“ASC”) to require that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the related liability. In August 2015, the FASB issued ASU No. 2015-15, Interest-Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements-Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting, to clarify that an entity may elect to present debt issuance costs related to a line-of-credit arrangement as an asset, regardless of whether or not there are any outstanding borrowings on the line-of-credit arrangement. These standards were adopted by the Company in the first quarter of fiscal year 2016. See Note 8 for the presentation of the Company's deferred financing costs in accordance with these standards. There was no impact to the prior year consolidated financial statements as the Company's historical deferred financing costs pertaining to its revolving credit facility were presented as assets as permitted under ASU No. 2015-15.

In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes (Topic 740), which eliminates the requirement to present deferred tax assets and liabilities as current and non-current in a classified balance sheet. Instead, companies will be required to classify all deferred tax assets and liabilities as non-current. The Company early adopted this ASU in the second quarter of fiscal year 2016. There was no impact to the prior year financial statements as a result of this adoption.

Recently Issued Accounting Pronouncements Not Yet Adopted

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in FASB ASC Topic 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which defers the effective date of ASU No. 2014-09 for all entities by one year. Early adoption is permitted and the Company can early adopt ASU No. 2014-09 beginning in the first quarter of fiscal year 2018. If the Company does not apply the early adoption provision, ASU No. 2014-09 will be effective for the Company beginning in the first quarter of fiscal year 2019 using one of two retrospective application methods. The Company is currently evaluating the impact this standard will have on its consolidated financial statements.

In April 2015, the FASB issued ASU No. 2015-05, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40):Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement, which provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract and expense the cost as the services are received. This standard will be effective for the Company beginning in the first quarter of fiscal year 2017. Early adoption is permitted. This standard may be adopted retrospectively or prospectively to arrangements entered into, or materially modified, after the effective date. The Company is currently evaluating the impact this standard will have on its consolidated financial statements.

7

MSG NETWORKS INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Continued)

Note 3. Discontinued Operations

As a result of the Distribution, the results of the Company’s MSG operations through the Distribution Date, as well as transaction costs related to the Distribution, have been classified in the consolidated statements of operations as discontinued operations for all periods presented. No gain or loss was recognized in connection with the Distribution. Operating results of discontinued operations for the three and six months ended December 31, 2015 and 2014 are summarized below:

	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2015			2014			2015			2014
Revenues (1)	$	—		$	396,814		$	150,381		$	515,730
Direct operating expenses	—			269,166			71,320			337,042
Selling, general and administrative expenses	137			48,552			57,824			85,645
Depreciation and amortization	—			23,800			23,772			57,116
Operating income (loss)	(137		)	55,296			(2,535		)	35,927
Equity in earnings (loss) of equity-method investments	—			(30,151		)	2,679			(32,755		)
Interest income	—			426			635			875
Interest expense	—			(620		)	(540		)	(1,276		)
Miscellaneous income	—			1,280			—			1,360
Income (loss) from discontinued operations before income taxes	(137		)	26,231			239			4,131
Income tax expense	—			(13,917		)	(161,393		)	(4,166		)
Income (loss) from discontinued operations, net of taxes	$	(137	)	$	12,314		$	(161,154	)	$	(35	)

(1) Revenues for the six months ended December 31, 2015 and for the three and six months ended December 31, 2014 include media rights recognized as revenues by MSG from the licensing of team-related programming to the Company that prior to the Distribution were eliminated in consolidation. However, these amounts are now reflected as revenues in the income (loss) from discontinued operations line with the offsetting expense in direct operating expenses, within continuing operations, in the accompanying statements of operations.

Amounts for the three and six months ended December 31, 2014 presented above differ from historically reported results for the Company's Sports and Entertainment segments due to certain reclassifications and adjustments made to corporate overhead costs for purposes of discontinued operations reporting.

8

MSG NETWORKS INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Continued)

The assets and liabilities of MSG have been classified in the consolidated balance sheet as of June 30, 2015 as assets and liabilities of discontinued operations and consist of the following, by major class:

	June 30, 2015
Cash and cash equivalents	$	14,917
Accounts receivable, net	51,133
Other current assets	59,846
Current assets of discontinued operations	125,896
Investments and loans to nonconsolidated affiliates	249,394
Property and equipment, net	1,188,705
Goodwill	277,166
Intangible assets, net	189,174
Other non-current assets	79,158
Non-current assets of discontinued operations	1,983,597
Accounts payable and accrued liabilities	196,423
Deferred revenue	323,756
Current liabilities of discontinued operations	520,179
Defined benefits and other postretirement obligations	56,740
Other employee related costs	51,687
Deferred tax liability	171,928
Other non-current liabilities	49,939
Non-current liabilities of discontinued operations	330,294
Net assets of discontinued operations	$	1,259,020
The following table summarizes the net impact of the Distribution to Company's stockholders' equity (deficiency):
Decrease in additional paid-in capital	$	(1,067,968	)
Decrease in retained earnings	(1,705,189		)
Decrease in accumulated other comprehensive loss	20,406
	$	(2,752,751	)

Note 4. Computation of Earnings (Loss) per Common Share

Basic earnings (loss) per common share (“EPS”) is based upon net income (loss) available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted EPS reflects the effect of the assumed vesting of restricted stock units (“RSUs”) and exercise of stock options only in the periods in which such effect would have been dilutive.

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(Continued)

The following table presents a reconciliation of the weighted-average number of shares used in the calculations of basic and diluted EPS.

	Three Months Ended		Six Months Ended
	December 31,		December 31,
	2015	2014	2015	2014
Weighted-average number of shares for basic EPS	74,959	77,727	75,240	77,611
Dilutive effect of shares issuable under share-based compensation plans	414	525	399	660
Weighted-average number of shares for diluted EPS	75,373	78,252	75,639	78,271
Anti-dilutive shares	—	—	—	7

Note 5. Disposition

On July 1, 2014, the Company completed its sale of Fuse, a national music television network, to Fuse Media, Inc. for a cash purchase price of $231,995 and a 15% equity interest of approximately $24,000 in Fuse Media, LLC (“Fuse Media”). Upon satisfaction of certain performance goals, the Company recognized its interest in Fuse Media, and finalized a working capital adjustment during the second quarter of fiscal year 2015. The Company recorded a pre-tax gain on the sale of Fuse, which is reflected in operating income in the accompanying consolidated statements of operations for the three and six months ended December 31, 2014, of $23,764 and $186,178 (net of transaction costs of $3,932), respectively.

The equity interest in Fuse Media was transferred to MSG in connection with the Distribution.

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(Continued)

Note 6. Goodwill and Intangible Assets

The goodwill balance reported on the Company's balance sheet as of December 31, 2015 and June 30, 2015, is $424,508.During the first quarter of fiscal year 2016, the Company performed its annual impairment test of goodwill, and there was no impairment of goodwill identified, including the goodwill of the MSG Entertainment and MSG Sports reporting units that was transferred to MSG as a part of Distribution.

During the first quarter of fiscal year 2016, the Company performed its annual impairment test of identifiable indefinite-lived intangible assets, all of which were transferred to MSG in connection with the Distribution, and there was no impairment identified.

The Company's intangible assets subject to amortization are as follows:

	December 31, 2015			June 30, 2015
Affiliate relationships	$	83,044		$	83,044
Less accumulated amortization	(37,191		)	(35,461		)
	$	45,853		$	47,583

Amortization expense for intangible assets was $865 for the three months endedDecember 31, 2015 and 2014, respectively, and $1,730 for the six months ended December 31, 2015 and 2014, respectively.

Note 7. Property and Equipment

As of December 31, 2015 and June 30, 2015, property and equipment consisted of the following assets:

	December 31, 2015			June 30, 2015
Equipment	$	46,992		$	43,277
Furniture and fixtures	1,740			1,723
Leasehold improvements	19,644			19,645
Construction in progress	391			3,103
	68,767			67,748
Less accumulated depreciation and amortization	(52,804		)	(48,234		)
	$	15,963		$	19,514

Depreciation and amortization expense on property and equipment was $2,226 and $3,580 for the three months endedDecember 31, 2015 and 2014, respectively, and $6,040 and $7,000 for the six months endedDecember 31, 2015 and 2014, respectively, which includes depreciation expense on certain corporate property and equipment that was transferred to MSG in connection with the Distribution, but which did not qualify for discontinued operations reporting.

Note 8. Debt

Former Revolving Credit Facility

On May 6, 2014, MSGN Holdings, L.P., formerly MSG Holdings, L.P., (“MSGN L.P.”) and certain of its subsidiaries entered into a credit agreement with a syndicate of lenders providing for a senior secured revolving credit facility of $500,000with a term offiveyears (the “Former Revolving Credit Facility”). In connection with the Distribution, MSGN L.P. terminated the Former Revolving Credit Facility effective on September 28, 2015.

Senior Secured Credit Facilities

On September 28, 2015, MSGN L.P., MSGN Eden, LLC, an indirect subsidiary of the Company and the general partner of MSGN L.P. (“MSGN Eden”), Regional MSGN Holdings LLC, a direct subsidiary of the Company and the limited partner of

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(Continued)

MSGN L.P. (collectively with MSGN Eden, the “Holdings Entities”), and certain subsidiaries of MSGN L.P. entered into a credit agreement (the “Credit Agreement”) with a syndicate of lenders.

The Credit Agreement provides MSGN L.P. with senior secured credit facilities (the “Senior Secured Credit Facilities”) consisting of: (a) an initial$1,550,000term loan facility (the “Term Loan Facility”) and (b) a$250,000revolving credit facility (the “Revolving Credit Facility”), each with a term of five years. In connection with the Distribution,$1,450,000of the proceeds from the Term Loan Facility was contributed to MSG immediately following the closing of the Senior Secured Credit Facilities. Up to $35,000of the Revolving Credit Facility is available for the issuance of letters of credit.

Subject to the satisfaction of certain conditions and limitations, the Credit Agreement allows for the addition of incremental term and/or revolving loan commitments and incremental term and/or revolving loans. Borrowings under the Credit Agreement bear interest at a floating rate, which at the option of MSGN L.P. may be either (a) base rate, representing the higher of: (i) the New York Fed Bank Rate plus 0.50%; (ii) the U.S. Prime Rate; or (iii) the one-month LIBOR rate plus 1.00%, plus an additional rate ranging from 0.50% to 1.25% per annum (determined based on a total leverage ratio) (the “Base Rate”), or (b) a Eurodollar rate plus an additional rate ranging from 1.50% to 2.25% per annum (determined based on a total leverage ratio) (the “Eurodollar Rate”), provided that for the period until the delivery of the compliance certificate for the period ending March 31, 2016, the additional rate used in calculating both floating rates will be (i) 1.00% per annum for borrowings bearing interest at the Base Rate, and (ii) 2.00% per annum for borrowings bearing interest at the Eurodollar Rate. Upon a payment default in respect of principal, interest or other amounts due and payable under the Credit Agreement or related loan documents, default interest will accrue on all overdue amounts at an additional rate of 2.00% per annum. The Credit Agreement requires MSGN L.P. pay a commitment fee of 0.30%in respect of the average daily unused commitments, as well as fronting fees, to banks that issue letters of credit pursuant to the Revolving Credit Facility.

The Credit Agreement generally requires MSGN L.P. to comply with a maximum total leverage ratio of 6.00:1.00 from the closing date until September 30, 2016 and a maximum total leverage ratio of 5.50:1.00 from and after October 1, 2016 until maturity, subject, in each case, to upward adjustment during the continuance of certain events. In addition, there is a minimum interest coverage ratio of 2.00:1.00 for the Holdings Entities, MSGN L.P. and the restricted subsidiaries of MSGN L.P. As of December 31, 2015, MSGN L.P. was in compliance with the financial covenants of the Credit Agreement. All borrowings under the Credit Agreement are subject to the satisfaction of customary conditions, including absence of a default and accuracy of representations and warranties. As of December 31, 2015, there were noletters of credit issued and outstanding under the Revolving Credit Facility, which provides full borrowing capacity of$250,000.

As of December 31, 2015, the principal repayments required for the next five years under the Term Loan Facility are as follows:

Year 1	$	91,250
Year 2	75,000
Year 3	75,000
Year 4	88,125
Year 5	1,220,625
	$	1,550,000

All obligations under the Credit Agreement are guaranteed by the Holdings Entities and MSGN L.P.’s existing and future direct and indirect domestic subsidiaries that are not designated as excluded subsidiaries or unrestricted subsidiaries (the “Subsidiary Guarantors,” and together with the Holdings Entities, the “Guarantors”). All obligations under the Credit Agreement, including the guarantees of those obligations, are secured by certain of the assets of MSGN L.P. and each Guarantor (collectively, “Collateral”), including, but not limited to, a pledge of the equity interests in MSGN L.P. held directly by the Holdings Entities and the equity interests in each Subsidiary Guarantor held directly or indirectly by MSGN L.P. Subject to customary notice and minimum amount conditions, MSGN L.P. may voluntarily prepay outstanding loans under the Credit Agreement at any time, in whole or in part, without premium or penalty (except for customary breakage costs with respect to Eurodollar loans). MSGN L.P. is required to make mandatory prepayments in certain circumstances, including without limitation from the net cash proceeds of certain sales of assets (including Collateral) or casualty insurance and/or condemnation recoveries (subject to

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(Continued)

certain reinvestment, repair or replacement rights) and the incurrence of certain indebtedness, subject to certain exceptions.

In addition to the financial covenants previously discussed, the Credit Agreement and the related security agreement contain certain customary representations and warranties, affirmative covenants and events of default. The Credit Agreement contains certain restrictions on the ability of MSGN L.P. and its restricted subsidiaries to take certain actions as provided in (and subject to various exceptions and baskets set forth in) the Credit Agreement, including the following: (i) incurring additional indebtedness and contingent liabilities; (ii) creating liens on certain assets; (iii) making investments, loans or advances in or to other persons; (iv) paying dividends and distributions or repurchases of capital stock; (v) changing its lines of business; (vi) engaging in certain transactions with affiliates; (vii) amending specified material agreements; (viii) merging or consolidating; (ix) making certain dispositions; and (x) entering into agreements that restrict the granting of liens. The Holdings Entities are subject to customary passive holding company covenants.

The Company is amortizing its deferred financing costs on a straight-line basis over the five-year term of the Senior Secured Credit Facilities which approximates the effective interest method. The following table summarizes the presentation of the Term Loan Facility and the deferred financing costs in accordance with ASU No. 2015-03 and ASU No. 2015-15 (see note 2) in the accompanying consolidated balance sheet as of December 31, 2015:

Reported in	Term Loan Facility		Deferred Financing Costs		Total
Other current assets	$	—	$	417	$	417
Other assets	—		1,564		1,564
Current portion of long-term debt (1)	91,250		2,586		88,664
Long-term debt, net of current portion (1)	1,458,750		9,698		1,449,052
Total	$	1,550,000	$	14,265	$	1,539,697

(1)     Amount presented in the Total column is on a net basis.

Note 9. Commitments and Contingencies

Commitments

As of December 31, 2015, future cash payments required under contracts entered into by the Company in the normal course of business, including future minimum rental payments under leases having noncancelable initial lease terms in excess of one year, are as follows:

	Total		Remainder of the current fiscal year		Fiscal years 2-3		Fiscal years 4-5		Thereafter
Contractual Obligations	$	4,653,820	$	141,307	$	428,484	$	433,144	$	3,650,885

Contractual obligations above consist primarily of the Company's obligations related to professional team rights, which were acquired under license agreements, to telecast certain live sporting events.

In connection with the Distribution, certain contractual obligations, principally those that the Company had under employment agreements with its professional sports teams' personnel and long-term noncancelable operating lease agreements for entertainment venues and certain office and storage space, were transferred to MSG.

In addition, see note 8 for the principal repayments required under the Company's Term Loan Facility.

Legal Matters

The Company is a defendant in various lawsuits. Although the outcome of these matters cannot be predicted with certainty, management does not believe that resolution of these lawsuits will have a material adverse effect on the Company.

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(Continued)

Note 10. Fair Value Measurements

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity's pricing based upon their own market assumptions. The fair value hierarchy consists of the following three levels:

• Level I — Quoted prices for identical instruments in active markets.

• Level II — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

• Level III — Instruments whose significant value drivers are unobservable.

The following table presents for each of these hierarchy levels, the Company's assets that are measured at fair value on a recurring basis, which include cash equivalents:

	Level I		Level II		Level III		Total
December 31, 2015
Assets:
Money market accounts	$	144,506	$	—	$	—	$	144,506
Time deposits	93,319		—		—		93,319
Total assets measured at fair value	$	237,825	$	—	$	—	$	237,825
June 30, 2015
Assets:
Money market accounts	$	89,062	$	—	$	—	$	89,062
Time deposits	113,227		—		—		113,227
Total assets measured at fair value	$	202,289	$	—	$	—	$	202,289

Money market accounts and time deposits are classified within Level 1 of the fair value hierarchy as they are valued using observable inputs that reflect quoted prices for identical assets in active markets. The carrying amount of the Company's money market accounts and time deposits approximates fair value due to their short-term maturities.

Other Financial Instruments

The fair value of the Company's long-term debt (see note 8) was approximately $1,526,750 as of December 31, 2015. The Company's long-term debt is classified within level 2 of the fair value hierarchy as it is valued using quoted prices of such securities for which fair value can also be derived from inputs that are readily observable. 

Note 11. Pension Plans and Other Postretirement Benefit Plan

Prior to the Distribution, the Company sponsored a non-contributory qualified cash balance retirement plan covering its non-union employees (the “MSG Cash Balance Pension Plan”) and an unfunded non-contributory, non-qualified excess cash balance plan covering certain employees who participate in the underlying qualified plan (collectively, the “Cash Balance Plans”). Since March 1, 2011, the Cash Balance Plans have also included the assets and liabilities of a frozen (as of December 31, 2007) non-contributory qualified defined pension plan covering non-union employees hired prior to January 1, 2001.

Also, the Company historically sponsored an unfunded non-contributory non-qualified defined benefit pension plan for the benefit of certain employees who participate in the underlying qualified plan, which was merged into the Cash Balance Pension Plan on March 1, 2011 (the “Excess Plan”). As of December 31, 2007, the Excess Plan was amended to freeze all benefits earned through December 31, 2007 and to eliminate the ability of participants to earn benefits for future service under these plans.

In addition, prior to the Distribution, the Company sponsored two non-contributory qualified defined benefit pension plans covering certain of its union employees (“Union Plans”). Benefits payable to retirees under the Union Plans are based upon years of service and, for one plan, participants’ compensation.

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(Continued)

The Cash Balance Plans, Excess Plan and Union Plans are collectively referred to as the “Pension Plans.”

The Company also sponsors a contributory welfare plan which provides certain postretirement healthcare benefits to certain employees hired prior to January 1, 2001 who are eligible to commence receipt of early or normal Retirement Plan benefits under the MSG Cash Balance Pension Plan and their dependents, as well as certain union employees (“Postretirement Plan”).

As a result of the Distribution, the assets and liabilities of the MSG Cash Balance Pension Plan and one of the Union Plans have been transferred to MSG. In addition, the following have been transferred to MSG: Liabilities related to (1) current MSG employees who are active participants in the Excess Plan and/or the unfunded non-contributory non-qualified excess cash balance plan, (2) current MSG employees who are eligible for participation in the Postretirement Plan, and (3) former MSG employees who are retired participants in the Postretirement Plan. The Company has retained liabilities related to (1) its current employees and former employees of the Company or MSG who are active participants in the Excess Plan and/or the unfunded non-contributory non-qualified excess cash balance plan, (2) its current employees who are eligible for participation in the Postretirement Plan, (3) its former employees who are retired participants in the Postretirement Plan, and (4) the Union Plan that was not transferred to MSG.

Components of net periodic benefit cost for the Company's Pension Plans and Postretirement Plan recognized in direct operating expenses, selling, general and administrative expenses, and Income (loss) from discontinued operations in the accompanying consolidated statements of operations for the three and six months ended December 31, 2015 and 2014 are as follows:

	Pension Plans						Postretirement Plan
	Three Months Ended						Three Months Ended
	December 31,						December 31,
	2015			2014			2015			2014
Service cost	$	121		$	1,738		$	18		$	61
Interest cost	438			1,979			32			93
Expected return on plan assets	(110		)	(916		)	—			—
Recognized actuarial loss (a)	125			565			—			6
Amortization of unrecognized prior service cost (credit) (a)	—			6			(11		)	(35		)
Net periodic benefit cost	$	574		$	3,372		$	39		$	125

	Pension Plans						Postretirement Plan
	Six Months Ended						Six Months Ended
	December 31,						December 31,
	2015			2014			2015			2014
Service cost	$	1,742		$	3,476		$	68		$	122
Interest cost	2,563			3,958			123			186
Expected return on plan assets	(960		)	(1,832		)	—			—
Recognized actuarial loss (a)	501			1,130			—			12
Amortization of unrecognized prior service cost (credit) (a)	14			12			(42		)	(70		)
Net periodic benefit cost	$	3,860		$	6,744		$	149		$	250

^(a) Reflects amounts reclassified from accumulated other comprehensive loss.

Amounts presented in the table above include net periodic benefit cost related to continued operations of $613 and $1,488for the three months endedDecember 31, 2015 and 2014, respectively, and $2,004 and $2,970 for the six months endedDecember 31, 2015 and 2014, respectively. The net periodic benefit cost related to discontinued operations is $2,009 for the

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(Continued)

three months endedDecember 31, 2014, and $1,895 and $4,024 for the six months endedDecember 31, 2015 and 2014, respectively. 

In addition, prior to the Distribution, the Company sponsored the MSG Holdings, L.P. 401(k) Savings Plan (the "MSG Savings Plan") and the MSG Holdings, L.P. Excess Savings Plan ("Excess Savings Plan", together with the MSG Savings Plan, the "Savings Plans"). Expenses related to the Savings Plans included in the accompanying consolidated statements of operations for the three and six months ended December 31, 2015 and 2014 are as follows:

	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2015		2014		2015		2014
Continuing Operations	$	—	$	287	$	334	$	614
Discontinued Operations	—		583		652		1,153
Total Savings Plan Expense	$	—	$	870	$	986	$	1,767

In addition, prior to the Distribution, the Company sponsored the MSG Holdings, L.P. 401(k) Union Plan (the "MSG Union Savings Plan"). Expenses related to the MSG Union Plan included in the accompanying consolidated statements of operations were $112 for the three months endedDecember 31, 2014, and $18 and $124 for the six months endedDecember 31, 2015 and 2014, respectively. These amounts have been classified in the consolidated statements of operations as discontinued operations for all periods presented.

As a result of the Distribution, the MSG Savings Plan and MSG Union Savings Plan were each amended to a) transfer sponsorship of the plans to MSG, and b) become a multiple employer plan in which both MSG and the Company will continue to participate.

As a result of the Distribution, liabilities relating to current MSG employees who were active participants in the Company's Excess Savings Plan have been transferred to MSG.

Note 12. Share-based Compensation

See Note 17 to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended June 30, 2015 for more information regarding the Company's 2010 Employee Stock Plan (the "Employee Stock Plan") and 2010 Stock Plan For Non-Employee Directors (the "Non-Employee Director Plan"), as well as certain share-based payment awards initially granted under Cablevision Systems Corporation ("Cablevision") equity award programs.

In connection with the Distribution, each holder of an employee restricted stock unit ("RSU") that was granted prior to July 1, 2015 received one MSG RSU in respect of every three RSUs owned on the Record Date and continues to be entitled to a share of the Company's Class A Common Stock (or cash or other property) for each RSU in accordance with the existing award agreement. In connection with the Distribution, each employee RSU that was granted after July 1, 2015 was adjusted in accordance with its terms, such that (1) each holder who remained employed by the Company following the Distribution continued to hold Company RSUs, with the number of RSUs adjusted to reflect the Distribution to maintain the value of the RSUs, and (2) each holder who MSG employed following the Distribution received MSG RSUs of the same value as the Company RSUs, and the original Company RSUs were canceled. Any holder of RSUs granted after July 1, 2015 who was employed by both MSG and the Company following the Distribution continues to hold the Company's RSUs, adjusted to reflect the Distribution, and received MSG RSUs in connection with the Distribution, so that the Company's RSUs represent 30% of the value of the original awards and MSG RSUs represent 70% of the value of the original RSU award.

Also in connection with the Distribution, one share of MSG Class A Common Stock was issued under the MSG 2015 Non-Employee Director Plan in respect of every three RSUs outstanding under the Company’s Non-Employee Director Plan.

In connection with the Distribution, each option to purchase the Company's Class A Common Stock became two options: one option to acquire MSG Class A Common Stock and one option to acquire the Company's Class A Common Stock. The existing exercise price was allocated between the existing options and the new MSG options based upon the volume-weighted average prices of the MSG Class A Common Stock and the Company's Class A Common Stock over the ten trading days immediately following the Distribution as reported by Bloomberg Business, and the underlying share amount took into account the one-to-

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(Continued)

three distribution ratio (i.e., one share of MSG Class A Common Stock was issued for every three shares of the Company's Class A Common Stock). Other than the split of the options and the allocation of the existing exercise price, there were no additional adjustments to the existing options in connection with the Distribution and the terms of each employee’s applicable option award agreement will continue to govern the Company's options.

The Company's stock options/RSUs held by MSG, Cablevision and AMC Networks Inc. (“AMC Networks”) employees will not be expensed by the Company; however, such stock options/RSUs do have a dilutive effect on earnings (loss) per share available to the Company's common stockholders.

Share-based compensation expense reduced for estimated forfeitures for continuing operations was $2,652 and $5,626 for the three months endedDecember 31, 2015 and 2014, respectively, and $6,899 and $8,002 for the six months endedDecember 31, 2015 and 2014, respectively. Share-based compensation expense for continuing operations is presented within selling, general and administrative expenses and direct operating expenses. Share-based compensation expense for discontinued operations was $1,401 for the three months endedDecember 31, 2014 and $808 and $2,642 for the six months endedDecember 31, 2015 and 2014, respectively

Stock Options Award Activity

The following table summarizes activity relating to holders (including Company, MSG, Cablevision and AMC Networks employees and directors) of the Company's stock options, all of which were exercisable, for the six months endedDecember 31, 2015:

	Number of				Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term (In Years) (1)	Aggregate Intrinsic Value
	Nonperformance Based Vesting Options		Performance Based Vesting Options
Balance as of June 30, 2015	128		17		$	12.44	0.64	$	10,293
Exercised	(58	)	(17	)	10.07
Balance as of December 31, 2015	70		—		$	2.81	0.43	$	1,256

(1) Weighted-average exercise price per share as of June 30, 2015 and for activity prior to the Distribution Date does not reflect any adjustment associated with the Distribution. See above for a discussion of the treatment of options in connection with the Distribution.

The aggregate intrinsic value is calculated as the difference between (i) the exercise price of the underlying award and (ii) the quoted price of the Company's Class A Common Stock for all options outstanding (and all exercisable) which were all in-the-money at December 31, 2015 and June 30, 2015, as applicable. For the six months endedDecember 31, 2015 the aggregate intrinsic value of the Company's stock options exercised was $4,236, determined as of the date of option exercise.

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(Continued)

Restricted Share Units Award Activity

The following table summarizes activity relating to holders (including Company and MSG employees) of the Company's RSUs for the six months endedDecember 31, 2015:

	Number of
	Nonperformance Based Vesting RSUs		Performance Based Vesting RSUs		Weighted-Average Fair Value Per Share At Date of Grant (1)
Unvested award balance, June 30, 2015	489		98		$	56.51
Granted	270		950		55.34
Vested	(244	)	(42	)	37.14
Canceled	(132	)	(566	)	77.99
Forfeited	(20	)	(2	)	67.05
Unvested award balance, December 31, 2015	363		438		$	39.18

(1) Weighted-average fair value per share at date of grant as of June 30, 2015 and for activity prior to the Distribution Date does not reflect any adjustment associated with the Distribution. See above for a discussion of the treatment of RSUs in connection with the Distribution.

See above for a discussion of the treatment of RSUs granted after July 1, 2015. During the six months endedDecember 31, 2015, the Company granted time-vesting RSUs (the “FY2016 RSUs”) that are generally subject to three-year ratable vesting (and are also, in the case of RSUs granted to executive officers, subject to certain performance conditions), and performance-vesting RSUs (the “FY2016 PSUs”) that will vest in September 2018 subject to the achievement of certain performance conditions.

The fair value of RSUs that vested during the six months endedDecember 31, 2015 was $17,123. Upon delivery, RSUs granted under the Employee Stock Plan were net share-settled to cover the required statutory tax withholding obligations and the remaining number of shares were issued from the Company's treasury shares. To fulfill the employees' statutory minimum tax withholding obligations for the applicable income and other employment taxes, 150 of these RSUs, with an aggregate value of $11,114, were retained by the Company and reflected as financing activity in the accompanying consolidated statement of cash flows for the six months endedDecember 31, 2015.

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(Continued)

Note 13. Stock Repurchase Program

On October 27, 2014, the Company's Board of Directors authorized the repurchase of up to $500,000 of the Company's Class A Common Stock. Under the authorization, shares of Class A Common Stock were able to be purchased from time to time in open market or private transactions, in accordance with applicable insider trading and other securities laws and regulations. On September 11, 2015, the Company's Board of Directors terminated such authorization effective as of the Distribution Date.

For the six months endedDecember 31, 2015, the Company has repurchased 1,336 shares, which are determined based on the settlement date of such trades, for a total cost of $100,027, including commissions and fees. These acquired shares have been classified as treasury stock in the accompanying consolidated balance sheet as of December 31, 2015.

Note 14. Related Party Transactions

As of December 31, 2015, members of the Dolan family group, for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, including trusts for the benefit of the Dolan family group, collectively beneficially own all of the Company's outstanding Class B Common Stock and own approximately 2.5% of the Company's outstanding Class A Common Stock. Such shares of the Company's Class A Common Stock and Class B Common Stock, collectively, represent approximately 69.7% of the aggregate voting power of the Company's outstanding common stock. Members of the Dolan family are also the controlling stockholders of MSG, Cablevision and AMC Networks.

In connection with the Distribution, the Company has entered into various agreements with MSG, including media rights agreements covering New York Knicks ("Knicks") and New York Rangers ("Rangers") games, an advertising sales representation agreement, a trademark license agreement and a transition services agreement ("TSA").

The Company has entered into various agreements with Cablevision and AMC Networks in connection with, and subsequent to, the distribution on February 10, 2010, when Cablevision distributed all of the outstanding common stock of the Company to Cablevision stockholders. These agreements include arrangements with respect to a number of ongoing commercial relationships including affiliation agreements for carriage by Cablevision of MSG Networks.

Revenues and Operating Expenses

The following table summarizes the composition and amounts of related party transactions that are reflected in revenues and operating expenses of continuing operations in the accompanying consolidated statements of operations for the three and six months ended December 31, 2015 and 2014:

	Three Months Ended December 31,					Six Months Ended December 31,
	2015		2014			2015		2014
Revenues	$	41,673	$	42,129		$	82,122	$	82,344
Operating expenses:
Rights fees	$	32,800	$	20,506		$	65,300	$	40,352
Commission	5,498		—			5,498		—
Origination, master control and technical services	1,459		1,423			2,876		2,759
Advertising	2,698		1,616			3,875		3,210
Other	2,584		(155		)	2,051		(165		)

Revenues

Revenues from related parties primarily consist of revenues recognized from the distribution of programming services to subsidiaries of Cablevision and include sponsorship revenue, as well as advertising and promotional benefits received by the Company which is recognized as the benefits are realized.

19

MSG NETWORKS INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Continued)

Rights fees

In connection with the Distribution, the Company has entered into media rights agreements with the Knicks and the Rangers, which provide the Company with exclusive media rights to team games in their local markets. These agreements are retroactively effective to July 1, 2015. Prior to the Distribution, these rights fees were eliminated in consolidation; however these amounts are now reflected prior to the Distribution as revenues in the Loss from Discontinued Operations line with the offsetting expense in Direct Operating Expenses within continuing operations in the accompanying statements of operations.

Commission

In connection with the Distribution, the Company entered into an advertising sales representation agreement, under which MSG has the exclusive right and obligation to sell the Company’s advertising availabilities for a commission.

Origination, Master Control and Technical Services

AMC Networks provides certain origination, master control and technical services to the Company.

Advertising

The Company incurs advertising expenses for services rendered by its related parties, primarily Cablevision, most of which are related to the utilization of advertising and promotional benefits by the Company, with an equal amount being recognized as revenue when the benefits are realized.

Other Operating Expenses

The Company and its related parties enter into transactions with each other in the ordinary course of business. Additionally, in connection with the Distribution, the Company entered into a TSA with MSG, under which the Company began outsourcing to MSG certain business functions that were previously performed by internal resources. These include activities related to information technology, accounting, accounts payable, payroll, tax, legal, human resources, treasury, insurance and risk management, investor relations, corporate communications, benefit plan administration and reporting, and internal audit.

Discontinued operations

Related party transactions included in loss from discontinued operations in the accompanying consolidated statements of operations include the following (i) revenues from related parties of $21,646 for the three months endedDecember 31, 2014 and $33,559 and $42,445 for the six months endedDecember 31, 2015 and 2014, respectively, (ii) operating expenses charged by related parties of $137 and $2,185 for the three months endedDecember 31, 2015 and 2014, respectively, and $964 and $3,074 for the six months endedDecember 31, 2015 and 2014, respectively, (iii) interest income from nonconsolidated affiliates of $426 for the three months endedDecember 31, 2014 and $635 and $875 for the six months endedDecember 31, 2015 and 2014, respectively, and (iv) equity in earnings (loss) of equity-method investments of $(30,151) for the three months endedDecember 31, 2014 and $2,679 and $(32,755) for the six months endedDecember 31, 2015 and 2014, respectively.

Note 15. Income Taxes

Income tax expense attributable to continuing operations for the three months endedDecember 31, 2015 of $29,709 differs from the income tax expense derived from applying the statutory federal rate to pretax income due principally to state and local income taxes of $4,933 (net of federal benefit), an increase in state tax rates used to value deferred taxes resulting from the filing of the Company's state income tax returns of $4,489. These increases were partially offset by the tax benefits of the domestic production activities deduction of $1,715 and other items of $313.

Income tax expense attributable to continuing operations for the three months endedDecember 31, 2014 of $32,962 differs from the income tax expense derived from applying the statutory federal rate to pretax income due principally to state and local income taxes (net of federal benefit) of $4,561, an increase in state tax rates used to value deferred taxes due to the sale of Fuse of $3,989, and other items of $126. These increases were partially offset by the impact of the tax benefits of the domestic production activities deduction of $4,373.

Income tax expense attributable to continuing operations for the six months endedDecember 31, 2015 of $29,305 differs from the income tax expense derived from applying the statutory federal rate to pretax income due principally to a reduction in state tax rates used to value deferred taxes resulting from the Distribution of $16,941 and the tax benefits of the domestic production activities deduction of $2,764. These decreases were partially offset by an increase in state tax rates used to value deferred

20

MSG NETWORKS INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Continued)

taxes resulting from the filing of the Company’s state income tax returns of $4,489, state and local income taxes of $7,731 (net of federal benefit), and other items of $151.

Income tax expense attributable to continuing operations for the six months endedDecember 31, 2014 of $129,374 differs from the income tax expense derived from applying the statutory federal rate to pretax income due principally to state and local income taxes of $22,433 (net of federal benefit), an increase in state tax rates used to value deferred taxes due to the sale of Fuse of $8,122 and other items of $171. These increases were partially offset by the impact of the tax benefits of the domestic production activities deduction of $5,854 and a tax return to book provision adjustment in connection with the filing of the Company's federal income tax return of $48.

Prior to the Distribution, the Company's collection for ticket sales, sponsorships and suite rentals in advance were recorded as deferred revenue and were recognized as revenues when earned for both accounting and tax purposes. In connection with the reorganization transactions related to the Distribution, the tax recognition on most of these deferred revenues was accelerated to the date of the reorganization. The estimated amount of additional tax on the acceleration of such deferred revenue is approximately $152,000 and is reflected in income tax expense of discontinued operations for the six months endedDecember 31, 2015. However, as the related tax will be paid by the Company, and will not be reimbursed by MSG, it is reflected in income taxes payable in the accompanying consolidated balance sheet as of December 31, 2015.

During the third quarter of fiscal year 2015, the Internal Revenue Service notified the Company of its intent to review the federal income tax returns as filed for the tax year ended December 31, 2013. Fieldwork is ongoing.  The Company does not expect the examination, when finalized, to result in material changes to the tax returns as filed.

During the fourth quarter of fiscal year 2015, the State of Connecticut commenced an examination of the Company's State of Connecticut income tax returns as filed for the tax years ended December 31, 2011, 2012, and 2013. The examination is currently nearing completion. The Company does not expect the examination, when finalized, to result in material changes to the tax returns as filed.

During the fourth quarter of fiscal year 2014, the State of New York commenced an examination of the Company's State of New York income tax returns as filed for the tax years ended December 31, 2010, 2011, and 2012. The examination is currently in fieldwork. The Company does not expect the examination, when finalized, to result in material changes to the tax returns as filed.

Note 16. Concentration of Risk

Accounts receivable, net on the accompanying consolidated balance sheets as of December 31, 2015 and June 30, 2015 include amounts due from the following individual non-affiliated customers, which accounted for the noted percentages of the gross balance:

	December 31, 2015		June 30, 2015
Customer A	43	%	29	%
Customer B	25	%	25	%
Customer C	17	%	17	%
Customer D	11	%	11	%

Revenues from continuing operations in the accompanying consolidated statements of operations for the three and six months ended December 31, 2015 and 2014 include amounts from the following individual non-affiliated customers, which accounted for the noted percentages of the total:

	Three Months Ended December 31,				Six Months Ended December 31,
	2015		2014		2015		2014
Customer A	22	%	21	%	23	%	22	%
Customer B	19	%	19	%	20	%	20	%
Customer C	10	%	11	%	11	%	11	%

21

MSG NETWORKS INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Continued)

Revenues from continuing operations in the accompanying consolidated statements of operations include revenues from Cablevision of $41,669 and $42,098 for the three months endedDecember 31, 2015 and 2014, respectively, which represent 25% and 25%, respectively, of the total and $81,447 and $82,297 for the six months endedDecember 31, 2015 and 2014, respectively, which represent, 26% and 25%, respectively, of the total.

The accompanying consolidated balance sheets as of December 31, 2015 and June 30, 2015 include the following approximate amounts that are recorded in connection with the Company's license agreement with the New Jersey Devils:

Reported in	December 31, 2015		June 30, 2015
Prepaid expenses	$	3,000	$	1,000
Other current assets	1,000		2,000
Other assets	42,000		41,000
	$	46,000	$	44,000

22

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

This Management's Discussion and Analysis of Financial Condition and Results of Operations, or MD&A, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “expects,” “anticipates,” “believes,” “estimates,” “may,” “will,” “should,” “could,” “potential,” “continue,” “intends,” “plans,” and similar words and terms used in the discussion of future operating and financial performance and plans identify forward-looking statements. Investors are cautioned that such forward-looking statements are not guarantees of future performance, results or events and involve risks and uncertainties and that actual results or developments may differ materially from the forward-looking statements as a result of various factors. Factors that may cause such differences to occur include, but are not limited to:

• the demand for our programming among cable television systems and satellite, telephone and other multichannel video programming distributors (“Distributors”) and the subscribers thereto, and our ability to renew affiliation agreements with Distributors, as well as the impact of consolidation among Distributors;

• the level of our revenues, which depends in part on the popularity and competitiveness of the sports teams whose games are broadcast on our networks and the popularity of other content aired on our networks;

• the ability of Distributors to maintain subscriber levels;

• the impact of subscribers downgrading their programming packages to levels that do not include our programming services;

• the security of our program signal and electronic data;

• general economic conditions especially in the New York City metropolitan area where we conduct the majority of our operations;

• the demand for sponsorship arrangements and for advertising and viewer ratings for our programming;

• competition, for example, from other regional sports networks;

• the relocation or insolvency of professional sports teams with which we have a rights agreement;

• our ability to maintain, obtain or produce content, together with the cost of such content;

• the acquisition or disposition of assets and/or the impact of, and our ability to, successfully pursue acquisitions or other strategic transactions, and the operating and financial performance thereof (including those that we do not control);

• the costs associated with, and the outcome of, litigation and other proceedings to the extent uninsured;

• the impact of governmental regulations or laws and changes in such regulations or laws;

• the impact of league rules, league regulations and/ or league agreements and changes thereto;

• our substantial debt and high leverage;

• reduced access to capital markets or significant increases in costs to borrow;

• financial community perceptions of our business, operations, financial condition and the industry in which we operate;

• the tax-free treatment of the Distribution; and

• the factors described under "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended June 30, 2015.

We disclaim any obligation to update or revise the forward-looking statements contained herein, except as otherwise required by applicable federal securities laws.

23

All dollar amounts included in the following MD&A are presented in thousands, except as otherwise noted.

Introduction

MD&A is provided as a supplement to, and should be read in conjunction with, the Company's unaudited consolidated financial statements and accompanying notes thereto included in this Quarterly Report on Form 10-Q, as well as our Annual Report on Form 10-K for the year ended June 30, 2015 to help provide an understanding of our financial condition, changes in financial condition and results of operations. Unless the context otherwise requires, all references to “we,” “us,” “our,” “MSG Networks” or the “Company” refer collectively to MSG Networks Inc., a holding company, and its direct and indirect subsidiaries through which substantially all of our operations are actually conducted. The Company produces, develops and acquires content for multiple distribution platforms and is comprised principally of the Company's regional sports and entertainment networks, MSG Network and MSG+, collectively the “MSG Networks.”

On September 30, 2015 (the “Distribution Date”), the Company distributed to its stockholders all of the outstanding common stock of The Madison Square Garden Company (formerly MSG Spinco, Inc., and referred to herein as “MSG”) (the “Distribution”). MSG owns, directly or indirectly, the sports and entertainment businesses previously owned and operated by the Company's Sports and Entertainment segments, owns, leases or operates the arenas and other venues previously owned, leased or operated by the Company and owns the joint venture interests previously owned by the Company. In the Distribution, each holder of the Company’s Class A common stock, par value $0.01 per share, of record as of the close of business, New York City time, on September 21, 2015 (the “Record Date”), received one share of MSG Class A common stock, par value $0.01 per share, for every three shares of the Company’s Class A common stock held on the Record Date. Each record holder of the Company’s Class B common stock, par value $0.01 per share, received one share of MSG Class B common stock, par value $0.01 per share, for every three shares of the Company's Class B common stock held on the Record Date. Subsequent to the Distribution, the Company no longer consolidates the financial results of MSG for the purpose of its own financial reporting and the historical financial results of MSG have been reflected in the Company's consolidated financial statements as discontinued operations for all periods presented through the Distribution Date.

After giving effect to the Distribution, the Company operates and reports financial information in one segment.

This MD&A is organized as follows:

Results of Operations. This section provides an analysis of our unaudited results of operations for the three and six months ended December 31, 2015 as compared with the three and six months ended December 31, 2014.

Liquidity and Capital Resources. This section provides a discussion of our financial condition and liquidity, an analysis of our cash flows for the six months endedDecember 31, 2015 as compared with the six months endedDecember 31, 2014, as well as certain contractual obligations.

Recently Issued Accounting Pronouncements and Critical Accounting Policies. This section discusses recently issued accounting pronouncements, as well as the results of the Company's annual impairment testing of goodwill and identifiable indefinite-lived intangible assets performed during the first quarter of fiscal year 2016. This section should be read together with our critical accounting policies, which are discussed in our Annual Report on Form 10-K for the year ended June 30, 2015 under “Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations — Recently Issued Accounting Pronouncements and Critical Accounting Policies — Critical Accounting Policies” and in the notes to the consolidated financial statements of the Company included therein.

24

Results of Operations

Comparison of the Three Months EndedDecember 31, 2015 versus the Three Months EndedDecember 31, 2014

Consolidated Results of Operations

The table below sets forth, for the periods presented, certain historical financial information and the percentage that those items bear to revenues.

	Three Months Ended December 31,										Increase (Decrease) in Net Income
	2015					2014
	Amount			% of Revenues		Amount			% of Revenues
Revenues	$	169,931		100	%	$	166,220		100	%	$	3,711
Direct operating expenses	71,547			42	%	59,122			36	%	(12,425		)
Selling, general and administrative expenses	22,370			13	%	44,012			26	%	21,642
Depreciation and amortization	3,091			2	%	4,445			3	%	1,354
Gain on sale of Fuse	—			NM		(23,764		)	(14	)%	(23,764		)
Operating income	72,923			43	%	82,405			50	%	(9,482		)
Other income (expense):
Interest expense, net	(9,164		)	(5	)%	(527		)	NM		(8,637		)
Income from continuing operations before income taxes	63,759			38	%	81,878			49	%	(18,119		)
Income tax expense	(29,709		)	(17	)%	(32,962		)	(20	)%	3,253
Income from continuing operations	34,050			20	%	48,916			29	%	(14,866		)
Income (loss) from discontinued operations, net of taxes	(137		)	NM		12,314			7	%	(12,451		)
Net income	$	33,913		20	%	$	61,230		37	%	$	(27,317	)

_________________ 

NM – Percentage is not meaningful

Revenues

Revenues for the three months endedDecember 31, 2015increased$3,711, or 2%, to $169,931 as compared with the prior year period. The net increase is attributable to the following:

Increase in affiliation fee revenue	$	3,257
Increase in advertising revenue	686
Other net decreases	(232		)
	$	3,711

The increase in affiliation fee revenue was primarily due to higher affiliation rates, partially offset by the impact of a low single digit percentage decrease in subscribers as compared with the prior year period and the absence of a favorable affiliate adjustment recorded in the prior year period.

The increase in advertising revenue was primarily due to the absence of national sales commissions as a result of the new advertising sales representation agreement with MSG and a modest increase in overall advertising sales from our networks.

Other net decreases were primarily attributable to the absence of a retroactive royalty payment recorded in the prior year period partially offset by the recognition of certain broadcast revenues.

25

Direct operating expenses

Direct operating expenses for the three months endedDecember 31, 2015increased$12,425, or 21%, to $71,547 as compared with the prior year period due to higher rights fees expense of $13,467 partially offset by other programming-related cost decreases of $1,042. The higher rights fees expense includes a $11,993 increase related to the new long-term media rights agreements with the New York Knicks ("Knicks") and New York Rangers ("Rangers"). In connection with the Distribution, the Company has entered into media rights agreements with the Knicks and the Rangers, which provide the Company with exclusive media rights to team games in their local markets. The Company expects to incur rights expense of approximately $130,000 under these media rights agreements for the year ending June 30, 2016, which will be approximately $49,000 more than the intercompany rights fee expense reflected in the Company's financial statements for the year ended June 30, 2015.

Selling, general and administrative expenses

Selling, general and administrative expenses for the three months endedDecember 31, 2015decreased$21,642, or 49%, to $22,370 as compared with the prior year period primarily due to the absence of certain corporate overhead expenses included in the results of the prior year second quarter. The fiscal 2015 second quarter results include certain corporate expenses that the Company did not incur during the current year second quarter and does not expect to incur in future periods. Partially offsetting this decrease are corporate costs incurred during the fiscal 2016 second quarter by MSG Networks Inc. as a standalone public company. Additionally, the Company's results reflect incremental net expenses associated with commissions incurred by the Company pursuant to an advertising sales representation agreement with MSG as compared to the historical costs of the Company's advertising sales personnel and other associated corporate costs, that the Company will no longer incur as these personnel have been transferred to MSG.

Depreciation and amortization

Depreciation and amortization for the three months endedDecember 31, 2015decreased$1,354, or 30%, to $3,091 as compared with the prior year period primarily due to the absence of depreciation expense included in the results of the prior year second quarter on certain corporate property and equipment that was transferred to MSG in connection with the Distribution, but which did not meet the criteria for inclusion in discontinued operations.

Gain on sale of Fuse

Gain on sale of Fuse for the three months endedDecember 31, 2014 represents the Company's recognition of its 15% equity interest in Fuse Media, LLC (“Fuse Media”) and the finalization of a working capital adjustment. The equity interest in Fuse Media was transferred to MSG in connection with the Distribution. See Note 5 to the consolidated financial statements included in "Part I - Item 1. Financial Statements" of this Quarterly Report on Form 10-Q.

Interest expense, net

Net interest expense for the three months endedDecember 31, 2015increased$8,637 to $9,164 as compared with the prior year period primarily due to interest expense incurred under the Company's new Senior Secured Credit Facilities.

Income taxes

Income tax expense attributable to continuing operations for the three months endedDecember 31, 2015 of $29,709 differs from the income tax expense derived from applying the statutory federal rate to pretax income due principally to state and local income taxes of $4,933 (net of federal benefit), an increase in state tax rates used to value deferred taxes resulting from the filing of the Company's state income tax returns of $4,489. These increases were partially offset by the tax benefits of the domestic production activities deduction of $1,715 and other items of $313.

Income tax expense attributable to continuing operations for the three months endedDecember 31, 2014 of $32,962 differs from the income tax expense derived from applying the statutory federal rate to pretax income due principally to state and local income taxes (net of federal benefit) of $4,561, increases in state tax rates used to value deferred taxes due to the sale of Fuse of $3,989, and other items of $126. These increases were partially offset by the impact of the tax benefits of the domestic production activities deduction of $4,373.

Adjusted operating cash flow ("AOCF")

The Company evaluates its performance based on several factors, of which the key financial measure is operating income (loss) before (i) depreciation, amortization and impairments of property and equipment and intangible assets, (ii) share-based compensation expense or benefit, (iii) restructuring charges or credits and (iv) gains or losses on sales or dispositions of businesses, which is referred to as AOCF, a non-GAAP measure. The Company has presented the components that reconcile AOCF to operating income, an accepted GAAP measure.

26

	Three Months Ended					Increase (Decrease) in AOCF
	December 31,
	2015		2014
Operating income	$	72,923	$	82,405		$	(9,482	)
Share-based compensation	2,652		5,626			(2,974		)
Depreciation and amortization	3,091		4,445			(1,354		)
Gain on sale of Fuse	—		(23,764		)	23,764
AOCF	$	78,666	$	68,712		$	9,954

AOCF for the three months endedDecember 31, 2015 increased $9,954, or 14%, to $78,666 as compared with the prior year period primarily due to (as discussed above) lower selling, general and administrative expenses and, to a lesser extent, higher revenues partially offset by higher direct operating expenses.

Comparison of the Six Months EndedDecember 31, 2015 versus the Six Months EndedDecember 31, 2014

Consolidated Results of Operations

The table below sets forth, for the periods presented, certain historical financial information and the percentage that those items bear to revenues.

	Six Months Ended December 31,										Increase (Decrease) in Net Income
	2015					2014
	Amount			% of Revenues		Amount			% of Revenues
Revenues	$	318,078		100	%	$	308,890		100	%	$	9,188
Direct operating expenses	131,649			41	%	104,773			34	%	(26,876		)
Selling, general and administrative expenses	63,488			20	%	81,805			26	%	18,317
Depreciation and amortization	7,770			2	%	8,730			3	%	960
Gain on sale of Fuse	—			NM		(186,178		)	(60	)%	(186,178		)
Operating income	115,171			36	%	299,760			97	%	(184,589		)
Other income (expense):
Interest expense, net	(10,485		)	(3	)%	(1,048		)	NM		(9,437		)
Income from continuing operations before income taxes	104,686			33	%	298,712			97	%	(194,026		)
Income tax expense	(29,305		)	(9	)%	(129,374		)	(42	)%	100,069
Income from continuing operations	75,381			24	%	169,338			55	%	(93,957		)
Income (loss) from discontinued operations, net of taxes	(161,154		)	(51	)%	(35		)	NM		(161,119		)
Net income (loss)	$	(85,773	)	(27	)%	$	169,303		55	%	$	(255,076	)

_________________ 

NM – Percentage is not meaningful

Revenues

Revenues for the six months endedDecember 31, 2015increased$9,188, or 3%, to $318,078 as compared with the prior year period. The net increase is attributable to the following:

Increase in affiliation fee revenue	$	8,086
Increase in advertising revenue	603
Other net increases	499
	$	9,188

27

The increase in affiliation fee revenue was primarily due to higher affiliation rates, partially offset by the impact of a low single digit percentage decrease in subscribers as compared with the prior year period and, to a lesser extent, the absence of a favorable affiliate adjustment recorded in the prior year period.

The increase in advertising revenue was primarily due to the absence of national sales commissions as a result of the new advertising sales representation agreement with MSG and a modest increase in overall advertising sales from our networks.

Other net increases were primarily attributable to recognition of certain broadcast revenues and certain services provided to Fuse Media, Inc. partially offset by the absence of a retroactive royalty payment recorded in the prior year period.

Direct operating expenses

Direct operating expenses for the six months endedDecember 31, 2015increased$26,876, or 26%, to $131,649 as compared with the prior year period due to higher rights fees expense of $27,486 partially offset by other programming-related cost decreases of $610. The higher rights fees expense includes a $24,647 increase related to the new long-term media rights agreements with the Knicks and Rangers. In connection with the Distribution, the Company has entered into media rights agreements with the Knicks and the Rangers, which provide the Company with exclusive media rights to team games in their local markets. The Company expects to incur rights expense of approximately $130,000 under these media rights agreements for the year ending June 30, 2016, which will be approximately $49,000 more than the intercompany rights fee expense reflected in the Company's financial statements for the year ended June 30, 2015.

Selling, general and administrative expenses

Selling, general and administrative expenses for the six months endedDecember 31, 2015decreased$18,317, or 22%, to $63,488 as compared with the prior year period primarily due to lower corporate overhead costs. The results for the current year first quarter and prior year first and second quarters include certain corporate expenses that the Company did not incur during the current year second quarter and does not expect to incur in future periods. Partially offsetting this decrease are corporate costs incurred during the current year second quarter by MSG Networks Inc. as a standalone public company. Additionally, the Company's results reflect incremental net expenses associated with commissions incurred by the Company pursuant to an advertising sales representation agreement with MSG as compared to the historical costs of the Company's advertising sales personnel and other associated corporate costs, that the Company will no longer incur as these personnel have been transferred to MSG.

Depreciation and amortization

Depreciation and amortization for the six months endedDecember 31, 2015decreased$960, or 11%, to $7,770 as compared with the prior year period primarily due to the absence of depreciation expense included in the prior period results on certain corporate property and equipment that was transferred to MSG in connection with the Distribution, but which did not meet the criteria for inclusion in discontinued operations.

Gain on sale of Fuse

Gain on sale of Fuse for the six months ended December 31, 2014 represents the Company's gain, net of transaction costs, from the sale which was completed on July 1, 2014. See Note 5 to the consolidated financial statements included in "Part I - Item 1. Financial Statements" of this Quarterly Report on Form 10-Q.

Interest expense, net

Net interest expense for the six months endedDecember 31, 2015increased$9,437 to $10,485 as compared with the prior year period primarily due to interest expense incurred under the Company's new Senior Secured Credit Facilities.

Income taxes

Income tax expense attributable to continuing operations for the six months endedDecember 31, 2015 of $29,305 differs from the income tax expense derived from applying the statutory federal rate to pretax income due principally to a reduction in state tax rates used to value deferred taxes resulting from the Distribution of $16,941 and the tax benefits of the domestic production activities deduction of $2,764. These decreases were partially offset by an increase in state tax rates used to value deferred taxes resulting from the filing of the Company’s state income tax returns of $4,489, state and local income taxes of $7,731 (net of federal benefit), and other items of $151.

Income tax expense attributable to continuing operations for the six months endedDecember 31, 2014 of $129,374 differs from the income tax expense derived from applying the statutory federal rate to pretax income due principally to state and local income taxes of $22,433 (net of federal benefit), increases in state tax rates used to value deferred taxes due to the sale of Fuse of $8,122

28

and other items of $171. These increases were partially offset by the impact of the tax benefits of the domestic production activities deduction of $5,854 and a tax return to book provision adjustment in connection with the filing of the Company's federal income tax return of $48.

AOCF

The following is a reconciliation of operating income to AOCF:

	Six Months Ended					Increase (Decrease) in AOCF
	December 31,
	2015		2014
Operating income	$	115,171	$	299,760		$	(184,589	)
Share-based compensation	6,899		8,002			(1,103		)
Depreciation and amortization	7,770		8,730			(960		)
Gain on sale of Fuse	—		(186,178		)	186,178
AOCF	$	129,840	$	130,314		$	(474	)

AOCF for the six months endedDecember 31, 2015decreased$474 to $129,840 as compared with the prior year period primarily due to (as discussed above) higher direct operating expenses largely offset by lower selling, general and administrative expenses and, to a lesser extent, higher revenues.

Liquidity and Capital Resources

Overview

Our primary sources of liquidity are cash and cash equivalents, cash flows from the operations of our business and available borrowing capacity under our $250,000 revolving credit facility with a syndicate of lenders (see “Financing Agreements - Senior Secured Credit Facilities” below). Our principal uses of cash include working capital-related items, capital spending, taxes and debt service. The decisions of the Company as to the use of its available liquidity will be based upon the ongoing review of the funding needs of the business, the optimal allocation of cash resources, and the timing of cash flow generation. Also in connection with the Distribution, the Company's tax obligation for the third quarter of fiscal year 2016 will reflect a one time tax payment which the Company expects to make from cash on hand of approximately $152,000 related to certain historical activities of its former subsidiary, The Madison Square Garden Company.

We believe we have sufficient liquidity, including approximately $238,000 in cash and cash equivalents as of December 31, 2015, along with available borrowing capacity under our revolving credit facility combined with operating cash flows to fund our business operations and service our term loans outstanding (see “Financing Agreements - Senior Secured Credit Facility - Term Loan Facility” below) over the next twelve months. However, potential subscriber reductions at affiliates who distribute our networks and changes in the demand for our programming, advertising revenues declines, our ability to maintain, obtain or produce content and other factors could adversely impact our business and results of operations, which might require that we seek alternative sources of funding through the capital and credit markets that may or may not be available to us.

On October 27, 2014, the Company's Board of Directors authorized the repurchase of up to $500,000 of the Company's Class A Common Stock. Under the authorization, shares of Class A Common Stock were able to be purchased from time to time in open market or private transactions, in accordance with applicable insider trading and other securities laws and regulations. Since the authorization of the repurchase program through December 31, 2015, the Company repurchased 3,159,027 shares, which are determined based on the settlement date of such trades, for a total cost of $240,744, including commissions and fees. These acquired shares have been classified as treasury stock in the Company's consolidated balance sheet. On September 11, 2015, the Company's Board of Directors terminated the repurchase authorization effective as of the Distribution Date.

Financing Agreements

Former Revolving Credit Facility

On May 6, 2014, MSGN Holdings, L.P., formerly MSG Holdings, L.P., (“MSGN L.P.”) and certain of its subsidiaries entered into a credit agreement with a syndicate of lenders providing for a senior secured revolving credit facility of $500,000with a term offiveyears (the “Former Revolving Credit Facility”). In connection with the Distribution, MSGN L.P. terminated the Former Revolving Credit Facility effective on September 28, 2015.

29

Senior Secured Credit Facilities

On September 28, 2015, MSGN L.P., MSGN Eden, LLC, an indirect subsidiary of the Company and the general partner of MSGN L.P. (“MSGN Eden”), Regional MSGN Holdings LLC, a direct subsidiary of the Company and the limited partner of MSGN L.P. (collectively with MSGN Eden, the “Holdings Entities”), and certain subsidiaries of MSGN L.P. entered into a credit agreement (the “Credit Agreement”) with a syndicate of lenders.

The Credit Agreement provides MSGN L.P. with senior secured credit facilities (the “Senior Secured Credit Facilities”) consisting of: (a) an initial$1,550,000term loan facility (the “Term Loan Facility”) and (b) a $250,000 revolving credit facility (the “Revolving Credit Facility”), each with a term of five years. In connection with the Distribution,$1,450,000of the proceeds from the Term Loan Facility was contributed to MSG immediately following the closing of the Senior Secured Credit Facilities. The remainder of the proceeds from the Term Loan Facility were used by MSGN L.P. to pay for certain fees and expenses associated with the Distribution and the Senior Secured Credit Facilities and will be used to fund working capital needs and other general corporate purposes of MSGN L.P. The Revolving Credit Facility was undrawn as of December 31, 2015 and is available to fund working capital needs and other general corporate purposes of MSGN L.P. Up to $35,000of the Revolving Credit Facility is available for the issuance of letters of credit.

The Credit Agreement generally requires MSGN L.P. to comply with a maximum total leverage ratio of 6.00:1.00 from the closing date until September 30, 2016 and a maximum total leverage ratio of 5.50:1.00 from and after October 1, 2016 until maturity, subject, in each case, to upward adjustment during the continuance of certain events. In addition, there is a minimum interest coverage ratio of 2.00:1.00 for the Holdings Entities, MSGN L.P. and the restricted subsidiaries of MSGN L.P. As of December 31, 2015, MSGN L.P. was in compliance with the financial covenants of the Credit Agreement. All borrowings under the Credit Agreement are subject to the satisfaction of customary conditions, including absence of a default and accuracy of representations and warranties. As of December 31, 2015, there were noletters of credit issued and outstanding under the Revolving Credit Facility, which provides full borrowing capacity of$250,000. MSGN L.P. is required to make its first principal payment of $50,000 on or before March 31, 2016, which will reduce the principal amount of the initial Term Loan Facility for subsequent amortization. The initial Term Loan Facility will amortize quarterly in accordance with its terms from June 30, 2016 through June 30, 2020 with a final maturity date on September 28, 2020.

See Note 8 to the consolidated financial statements included in "Part I - Item 1. Financial Statements" of this Quarterly Report on Form 10-Q for more information on the Credit Agreement.

Contractual Obligations

As of December 31, 2015, future cash payments required under contracts entered into by the Company in the normal course of business, including future minimum rental payments under leases having noncancelable initial lease terms in excess of one year, are as follows:

	Total		Remainder of the current fiscal year		Fiscal years 2-3		Fiscal years 4-5		Thereafter
Contractual Obligations	$	4,653,820	$	141,307	$	428,484	$	433,144	$	3,650,885

Contractual obligations above consist primarily of the Company's obligations related to professional team rights, which were acquired under license agreements, to telecast certain live sporting events.

In connection with the Distribution, certain contractual obligations, principally those that the Company had under employment agreements with its professional sports teams' personnel and long-term noncancelable operating lease agreements for entertainment venues and certain office and storage space, were transferred to MSG.

In addition, see Note 8 to the consolidated financial statements included in "Part I - Item 1. Financial Statements" of this Quarterly Report on Form 10-Q for the principal repayments required under the Company's Term Loan Facility.

30

Cash Flow Discussion

Operating Activitiesfrom continuing operations

Net cash provided by operating activities from continuing operations for the six months endedDecember 31, 2015increased by $89,150 to $118,860 as compared with the prior year period primarily driven by lower income taxes paid, including income taxes paid in the prior year period related to the sale of Fuse (the cash proceeds related to the sale are included in investing activities).

Investing Activities from continuing operations

Net cash used in investing activities from continuing operations for the six months endedDecember 31, 2015 was $1,950 as compared with net cash provided by investing activities from continuing operations in the prior year period of $225,204. This change is primarily due to proceeds received during the prior year period from the sale of Fuse, slightly offset by lower capital expenditures in the current year period.

Financing Activities from continuing operations

Net cash used in financing activities from continuing operations for the six months endedDecember 31, 2015 increased by $26,245 to $33,576 as compared with the prior year period primarily due to the cash contribution to MSG, as well as higher cash used for the repurchases of the Company's Class A Common Stock and financing costs in the current year period, largely offset by the proceeds from the Term Loan Facility received in the current year period.

Recently Issued Accounting Pronouncements and Critical Accounting Policies

Recently Adopted Accounting Pronouncements

In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which amends the FASB Accounting Standards Codification (“ASC”) to require that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the related liability. In August 2015, the FASB issued ASU No. 2015-15, Interest-Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements-Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting, to clarify that an entity may elect to present debt issuance costs related to a line-of-credit arrangement as an asset, regardless of whether or not there are any outstanding borrowings on the line-of-credit arrangement. These standards were adopted by the Company in the first quarter of fiscal year 2016. See Note 8 to the consolidated financial statements included in "Part I - Item 1. Financial Statements" of this Quarterly Report on Form 10-Q for the presentation of the Company's deferred financing costs in accordance with these standards. There was no impact to the prior year consolidated financial statements as the Company's historical deferred financing costs pertaining to its revolving credit facility were presented as assets as permitted under ASU No. 2015-15.

In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes (Topic 740), which eliminates the requirement to present deferred tax assets and liabilities as current and non-current in a classified balance sheet. Instead, companies will be required to classify all deferred tax assets and liabilities as non-current. The Company early adopted this ASU in the second quarter of fiscal year 2016. There was no impact to the prior year financial statements as a result of this adoption.

Recently Issued Accounting Pronouncements Not Yet Adopted

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in FASB ASC Topic 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which defers the effective date of ASU No. 2014-09 for all entities by one year. Early adoption is permitted and the Company can early adopt ASU No. 2014-09 beginning in the first quarter of fiscal year 2018. If the Company does not apply the early adoption provision, ASU No. 2014-09 will be effective for the Company beginning in the first quarter of fiscal year 2019 using one of two retrospective application methods. The Company is currently evaluating the impact this standard will have on its consolidated financial statements.

31

In April 2015, the FASB issued ASU No. 2015-05, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40):Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement, which provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract and expense the cost as the services are received. This standard will be effective for the Company beginning in the first quarter of fiscal year 2017. Early adoption is permitted. This standard may be adopted retrospectively or prospectively to arrangements entered into, or materially modified, after the effective date. The Company is currently evaluating the impact this standard will have on its consolidated financial statements.

Critical Accounting Policies

The following discussion has been included only to provide the results of our annual impairment testing of goodwill and identifiable indefinite-lived intangible assets performed during the first quarter of fiscal year 2016. Accordingly, we have not repeated herein a discussion of the Company's critical accounting policies as set forth in our Annual Report on Form 10-K for the year ended June 30, 2015.

Goodwill

Goodwill is tested annually for impairment as of August 31^st and at any time upon the occurrence of certain events or substantive changes in circumstances. After giving effect to the Distribution, the Company has one reporting unit for evaluating goodwill impairment. The goodwill balance reported on the Company's balance sheet as of December 31, 2015 is $424,508.

During the first quarter of fiscal year 2016, the Company performed its annual impairment test of goodwill, and there was no impairment of goodwill identified, including the goodwill of the MSG Entertainment and MSG Sports reporting units that was transferred to MSG as a part of Distribution. Based on these impairment tests, there was sufficient safety margins, representing the excess of the estimated fair value of each reporting unit less its respective carrying value (including goodwill allocated to each respective reporting unit). The Company believes that if the fair value of a reporting unit exceeds its carrying value by greater than 10%, a sufficient safety margin has been realized.

The Company elected to perform the qualitative assessment of impairment for the Media and Sports reporting units. This assessment considered factors such as:

• Macroeconomic conditions;

• Industry and market considerations;

• Cost factors;

• Overall financial performance of the reporting unit;

• Other relevant company-specific factors such as changes in management, strategy or customers; and

• Relevant reporting unit specific events such as changes in the carrying amount of net assets.

The Company performed the quantitative assessment of impairment for the Company's former MSG Entertainment reporting unit. The estimate of the fair value of the MSG Entertainment reporting unit was primarily determined using discounted projected future cash flows. For MSG Entertainment, this valuation includes assumptions for the number and expected financial performance of live entertainment events and productions, which includes, but is not limited to, the level of ticket sales, concessions and sponsorships. Significant judgments inherent in a discounted cash flow valuation include the selection of appropriate discount rates, estimating the amount and timing of estimated future cash flows and identification of appropriate continuing growth rate assumptions. The discount rates used in the analysis are intended to reflect the risk inherent in the projected future cash flows generated by the respective intangible assets.

Identifiable Indefinite-Lived Intangible Assets

Identifiable indefinite-lived intangible assets are tested annually for impairment as of August 31^st and at any time upon the occurrence of certain events or substantive changes in circumstances. During the first quarter of fiscal year 2016, the Company performed its annual impairment test of identifiable indefinite-lived intangible assets, all of which were transferred to MSG in connection with the Distribution, and there was no impairment identified.

32

Item 3. Quantitative and Qualitative Disclosures About Market Risk

There were no material changes to the disclosures on this matter made in the Company's Annual Report on Form 10-K for the year ended June 30, 2015 except the following:

Our market risk exposure to interest rate risk relates to any borrowing we may incur.

Borrowings under our Credit Agreement bear interest, based on our election, at a floating rate based upon LIBOR, the New York Fed Bank Rate or the U.S. Prime Rate, plus, in each case, an additional rate which is fixed for an initial period of time and thereafter dependent upon our total leverage ratio at the time. Accordingly, we are subject to interest rate risk with respect to the tenor of any borrowings we may incur under the Credit Agreement. The effect of a hypothetical 100 basis point increase in floating interest rates prevailing at December 31, 2015 and continuing for a full year would increase interest expense of our Term Loan Facility amount outstanding by $14,780. If appropriate, we may seek to reduce such exposure through the use of interest rate swaps or similar instruments that qualify for hedge accounting treatment. See “Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources - Financing Agreements” for more information on our Credit Agreement.

We have de minimis foreign currency risk exposure as our businesses operate almost entirely in U.S. Dollars, nor do we have any meaningful commodity risk exposures associated with our operations.

Item 4. Controls and Procedures

The Company's principal executive officer and principal financial officer have concluded that the Company's disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) of the Securities Exchange Act of 1934, as amended (the“Exchange Act”)) were effective as of December 31, 2015, based on the evaluation of these controls and procedures required by Rule 13a-15(b) or 15d-15(b) of the Exchange Act.

Changes in Internal Control Over Financial Reporting

Following the Distribution, pursuant to a transition services arrangement, the Company began outsourcing to The Madison Square Garden Company certain business functions that were previously performed by internal resources. These included activities related to information technology, accounting, accounts payable, payroll, tax, legal, human resources, treasury, insurance and risk management, investor relations, corporate communications, benefit plan administration and reporting, and internal audit. The Company continues to review and document its internal controls over financial reporting, and may, from time to time, make changes aimed at enhancing their effectiveness.

Other than those noted above, there were no changes in the Company’s internal control over financial reporting during the fiscal quarter ended December 31, 2015 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

33

PART II—OTHER INFORMATION

Item 1. Legal Proceedings

The Company is a defendant in various lawsuits. Although the outcome of these matters cannot be predicted with certainty, management does not believe that resolution of these lawsuits will have a material adverse effect on the Company.

Item 6. Exhibits

(a) Index to Exhibits

EXHIBIT NO.	DESCRIPTION
31.1	Certification by the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification by the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification by the Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification by the Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document.
101.SCH	XBRL Taxonomy Extension Schema.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase.
101.DEF	XBRL Taxonomy Extension Definition Linkbase.
101.LAB	XBRL Taxonomy Extension Label Linkbase.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase.

34

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on the 5th day of February, 2016.

MSG Networks Inc.
By:	/S/    BRET RICHTER
	Name:	Bret Richter
	Title:	Executive Vice President and
		Chief Financial Officer

35

EX-31.1

Exhibit 31.1

Certification

I, Andrea Greenberg, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of MSG Networks Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: February 5, 2016

/s/ Andrea Greenberg

Andrea Greenberg

President and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification

I, Bret Richter, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of MSG Networks Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: February 5, 2016

/s/ Bret Richter

Bret Richter

Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification

Pursuant to 18 U.S.C. §1350, the undersigned officer of MSG Networks Inc. (the “Company”), hereby certifies, to such officer's knowledge, that the Company's Quarterly Report on Form 10-Q for the Quarter ended December 31, 2015 (the “Report”) fully complies with the requirements of §13(a) or §15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: February 5, 2016

/s/ Andrea Greenberg

Andrea Greenberg

President and Chief Executive Officer

The foregoing certification is being furnished solely pursuant to 18 U.S.C. §1350 and is not being filed as part of the Report or as a separate disclosure document.

EX-32.2

Exhibit 32.2

Certification

Pursuant to 18 U.S.C. §1350, the undersigned officer of MSG Networks Inc. (the “Company”), hereby certifies, to such officer's knowledge, that the Company's Quarterly Report on Form 10-Q for the Quarter ended December 31, 2015 (the “Report”) fully complies with the requirements of §13(a) or §15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: February 5, 2016

/s/ Bret Richter

Bret Richter

Executive Vice President and Chief Financial Officer

The foregoing certification is being furnished solely pursuant to 18 U.S.C. §1350 and is not being filed as part of the Report or as a separate disclosure document.

XML

Document And Entity Information - shares	6 Months Ended
	Dec. 31, 2015	Jan. 29, 2016
Entity Registrant Name	MSG Networks Inc.
Trading Symbol	MSGN
Entity Central Index Key	0001469372
Current Fiscal Year End Date	--06-30
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
Amendment Flag	false
Class A Common Stock [Member]
Entity Common Stock, Shares Outstanding		61,226,341
Class B Common Stock [Member]
Entity Common Stock, Shares Outstanding		13,588,555

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2015	Jun. 30, 2015
Current Assets:
Cash and cash equivalents	$ 237,833	$ 203,768
Restricted cash	0	9,003
Accounts receivable, net	85,740	85,610
Net related party receivables	43,784	27,324
Prepaid expenses	12,135	43,238
Other current assets	2,093	3,514
Current assets of discontinued operations	0	125,896
Total current assets	381,585	498,353
Property and equipment, net	15,963	19,514
Amortizable intangible assets, net	45,853	47,583
Goodwill	424,508	424,508
Other assets	43,080	46,274
Non-current assets of discontinued operations	0	1,983,597
Total assets	910,989	3,019,829
Current Liabilities:
Accounts payable	1,958	11,359
Net related party payables	25,463	420
Current portion of long-term debt	88,664	0
Income taxes payable	127,414	0
Accrued liabilities:
Employee related costs	6,828	19,504
Other accrued liabilities	19,798	18,101
Deferred revenue	8,077	4,971
Current liabilities of discontinued operations	0	520,179
Total current liabilities	278,202	574,534
Long-term debt, net of current portion	1,449,052	0
Defined benefit and other postretirement obligations	29,168	28,476
Other employee related costs	4,690	5,318
Related party payable	1,652	0
Other liabilities	3,850	5,951
Deferred tax liability	358,244	351,734
Non-current liabilities of discontinued operations	0	330,294
Total liabilities	$ 2,124,858	$ 1,296,307
Commitments and contingencies (see Note 9)
Stockholders' Equity (Deficiency):
Preferred stock, par value $0.01, 45,000 shares authorized; none outstanding
Additional paid-in capital	$ 0	$ 1,084,002
Treasury stock, at cost, 3,033 and 2,052 shares as of December 31, 2015 and June 30, 2015, respectively	(217,812)	(143,250)
Retained earnings (accumulated deficit)	(991,014)	807,563
Accumulated other comprehensive loss	(5,822)	(25,572)
Total stockholders' equity (deficiency)	(1,213,869)	1,723,522
Total liabilities and stockholders' equity (deficiency)	910,989	3,019,829
Class A Common Stock [Member]
Stockholders' Equity (Deficiency):
Common stock, value issued	643	643
Class B Common Stock [Member]
Stockholders' Equity (Deficiency):
Common stock, value issued	$ 136	$ 136

XML

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Dec. 31, 2015	Jun. 30, 2015
Preferred stock, par value (dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	45,000	45,000
Preferred stock, shares outstanding	0	0
Treasury stock, shares	3,033	2,052
Class A Common Stock [Member]
Common stock, par value (dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	360,000	360,000
Common stock, shares outstanding	61,226	62,207
Class B Common Stock [Member]
Common stock, par value (dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	90,000	90,000
Common stock, shares outstanding	13,589	13,589

XML

Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Income Statement [Abstract]
Revenues (including related party revenues of $41,673 and $42,129 for the three months ended December 31, 2015 and 2014, respectively, and $82,122 and $82,344 for the six months ended December 31, 2015 and 2014, respectively)	$ 169,931	$ 166,220	$ 318,078	$ 308,890
Direct operating expenses (including related party expenses of $34,619 and $21,041 for the three months ended December 31, 2015 and 2014, respectively, and $68,273 and $42,182 for the six months ended December 31, 2015 and 2014, respectively)	71,547	59,122	131,649	104,773
Selling, general and administrative expenses (including related party expenses of $10,420 and $2,349 for the three months ended December 31, 2015 and 2014, respectively, and $11,327 and $3,974 for the six months ended December 31, 2015 and 2014, respectively)	22,370	44,012	63,488	81,805
Depreciation and amortization	3,091	4,445	7,770	8,730
Gain on sale of Fuse (see Note 5)	0	(23,764)	0	(186,178)
Operating income	72,923	82,405	115,171	299,760
Other income (expense):
Interest income	548	515	1,084	1,000
Interest expense	(9,712)	(1,042)	(11,569)	(2,048)
Nonoperating expense, Total	(9,164)	(527)	(10,485)	(1,048)
Income from continuing operations before income taxes	63,759	81,878	104,686	298,712
Income tax expense	(29,709)	(32,962)	(29,305)	(129,374)
Income from continuing operations	34,050	48,916	75,381	169,338
Loss from discontinued operations, net of taxes	(137)	12,314	(161,154)	(35)
Net income (loss)	$ 33,913	$ 61,230	$ (85,773)	$ 169,303
Basic [Abstract]
Income from continuing operations	$ 0.45	$ 0.63	$ 1.00	$ 2.18
Income (loss) from discontinued operations	0.00	0.16	(2.14)	0.00
Net income (loss)	0.45	0.79	(1.14)	2.18
Diluted [Abstract]
Income from continuing operations	0.45	0.63	1.00	2.16
Income (loss) from discontinued operations	0.00	0.15	(2.13)	0.00
Net income (loss)	$ 0.45	$ 0.78	$ (1.13)	$ 2.16
Weighted-average number of common shares outstanding:
Basic (in shares)	74,959	77,727	75,240	77,611
Diluted (in shares)	75,373	78,252	75,639	78,271

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Consolidated Statements Of Operations (Parenthetical) - Continuing Operations [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Revenue from Related Parties	$ 41,673	$ 42,129	$ 82,122	$ 82,344
Direct operating expenses from related party	34,619	21,867	68,273	43,008
Selling, general and administrative expenses from related party	$ 10,420	$ 1,523	$ 11,327	$ 3,148

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Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Consolidated Statements of Comprehensive Income (Loss) [Abstract]
Net income (loss)	$ 33,913	$ 61,230	$ (85,773)	$ 169,303
Pension plans and postretirement plan:[Abstract]
Net unamortized losses arising during the period	0	0	(602)	0
Amounts reclassified from accumulated other comprehensive loss [Abstract]
Amortization of net actuarial loss included in net periodic benefit cost	125	571	501	1,142
Amortization of net prior service credit included in net periodic benefit cost	(11)	(29)	(28)	(58)
Other comprehensive income (loss) before income taxes	114	542	(129)	1,084
Income tax expense related to items of other comprehensive income (loss)	(47)	(234)	(527)	(465)
Other comprehensive income (loss)	67	308	(656)	619
Comprehensive income (loss)	$ 33,980	$ 61,538	$ (86,429)	$ 169,922

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Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities from continuing operations:
Net income (loss)	$ (85,773)	$ 169,303
Loss from discontinued operations, net of taxes	161,154	35
Income from continuing operations	75,381	169,338
Adjustments to reconcile net income to net cash provided by operating activities from continuing operations:
Depreciation and amortization	7,770	8,730
Amortization of deferred financing costs	1,732	800
Share-based compensation Expense	6,899	8,002
Excess tax benefit on share-based awards	(4,420)	(10,245)
Gain on sale of Fuse, before income taxes	0	(186,178)
Change in income taxes payable and deferred income taxes related to the sale of Fuse	0	29,066
Provision for doubtful accounts	430	123
Change in assets and liabilities:
Accounts receivable, net	(560)	(6,726)
Net related party receivables	(15,829)	480
Prepaid expenses and other assets	12,235	3,799
Accounts payable	(9,401)	6,414
Net related party payables, including payable to MSG	24,455	503
Income taxes payable, excluding the impact of the change in income taxes payable related to the sale of Fuse	38,190	9,595
Accrued and other liabilities	(10,649)	(9,615)
Deferred revenue	3,106	(1,021)
Deferred income taxes, excluding the impact of the change in deferred income taxes related to the sale of Fuse	(10,479)	6,645
Net cash provided by operating activities from continuing operations	118,860	29,710
Cash flows from investing activities from continuing operations:
Capital expenditures	(1,950)	(2,859)
Proceeds from sale of Fuse, net of transaction costs (see Note 5)	0	228,063
Net cash provided by (used in) investing activities from continuing operations	(1,950)	225,204
Cash flows from financing activities from continuing operations:
Proceeds from Term Loan Facility (see Note 8)	1,550,000	0
Cash distributed with MSG	(1,467,093)	0
Payments for financing costs	(9,860)	(70)
Proceeds from stock options exercises	98	308
Repurchases of common stock	(100,027)	(1,398)
Taxes paid in lieu of shares issued for equity-based compensation	(11,114)	(16,416)
Excess tax benefit on share-based awards	4,420	10,245
Net cash used in financing activities from continuing operations	(33,576)	(7,331)
Net cash provided by continuing operations	83,334	247,583
Cash flows of discontinued operations [Abstract]
Net cash provided by operating activities	4,224	85,335
Net cash used in investing activities	(68,410)	(46,249)
Net cash used in financing activities	0	0
Net cash used in discontinued operations	(64,186)	39,086
Cash and cash equivalents at beginning of period, including cash in both continuing operations and discontinued operations	218,685	92,251
Cash and cash equivalents at end of period	237,833	378,920
Supplemental Data [Abstract]
Income Taxes Paid, Net	193	83,499
Interest Paid	8,922	0
Non-cash investing and financing activities: [Abstract]
Capital expenditures incurred but not yet paid for continuing operations	560	808
Non-cash net assets of MSG transferred in connection with the Distribution	$ 1,285,658	$ 0

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Consolidated Statements Of Stockholders' Equity (Deficiency) And Comprehensive Income (Loss) - USD ($) $ in Thousands	Total	Common Stock Issued [Member]	Additional Paid-In Capital [Member]	Treasury Stock [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Balance at Jun. 30, 2014	$ 1,604,444	$ 775	$ 1,081,055	$ (7,537)	$ 552,862	$ (22,711)
Increase (Decrease) in Stockholders' Equity (Deficiency) [Roll Forward]
Net income (loss)	169,303				169,303
Other comprehensive income (loss)	619					619
Comprehensive income (loss)	169,922
Exercise of stock options	281	1	280	0
Share-based Compensation	10,644		10,644
Tax withholding associated with shares issued for equity-based compensation	16,416		16,416
Excess tax benefit on share-based awards	10,245		10,245
Repurchases of common stock	(1,398)			(1,398)
Shares issued upon distribution of Restricted Stock Units	0	3	(406)	403
Balance at Dec. 31, 2014	1,777,722	779	1,085,402	(8,532)	722,165	(22,092)
Balance at Jun. 30, 2015	1,723,522	779	1,084,002	(143,250)	807,563	(25,572)
Increase (Decrease) in Stockholders' Equity (Deficiency) [Roll Forward]
Net income (loss)	(85,773)				(85,773)
Other comprehensive income (loss)	(656)					(656)
Comprehensive income (loss)	(86,429)
Exercise of stock options	757	0	(4,633)	5,390
Share-based Compensation	7,753		7,753
Tax withholding associated with shares issued for equity-based compensation	11,114		11,114
Excess tax benefit on share-based awards	4,420		8,586		(4,166)
Repurchases of common stock	(100,027)			(100,027)
Shares issued upon distribution of Restricted Stock Units	0	0	(16,626)	20,075	(3,449)
Distribution of The Madison Square Garden Company	(2,752,751)		(1,067,968)	0	(1,705,189)	20,406
Balance at Dec. 31, 2015	$ (1,213,869)	$ 779	$ 0	$ (217,812)	$ (991,014)	$ (5,822)

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Description of Business and Basis of Presentation

6 Months Ended

Dec. 31, 2015

Description of Business And Basis of Presentation [Abstract]

Description of Business and Basis of Presentation

Description of Business and Basis of Presentation

Description of Business

MSG Networks Inc. (together with its subsidiaries, the “Company”) produces, develops and acquires content for multiple distribution platforms and is comprised principally of the Company's regional sports and entertainment networks, MSG Network and MSG+, collectively the “MSG Networks.”

On September 30, 2015 (the “Distribution Date”), the Company distributed to its stockholders all of the outstanding common stock of The Madison Square Garden Company (formerly MSG Spinco, Inc., and referred to herein as “MSG”) (the “Distribution”). MSG owns, directly or indirectly, the sports and entertainment businesses previously owned and operated by the Company's Sports and Entertainment segments, owns, leases or operates the arenas and other venues previously owned, leased or operated by the Company and owns the joint venture interests previously owned by the Company. In the Distribution, each holder of the Company’s Class A common stock, par value $0.01 per share, of record as of the close of business, New York City time, on September 21, 2015 (the “Record Date”), received one share of MSG Class A common stock, par value $0.01 per share, for every three shares of the Company’s Class A common stock held on the Record Date. Each record holder of the Company’s Class B common stock, par value $0.01 per share, received one share of MSG Class B common stock, par value $0.01 per share, for every three shares of the Company's Class B common stock held on the Record Date. Subsequent to the Distribution, the Company no longer consolidates the financial results of MSG for the purpose of its own financial reporting and the historical financial results of MSG have been reflected in the Company's consolidated financial statements as discontinued operations for all periods presented through the Distribution Date.

After giving effect to the Distribution, the Company operates and reports financial information in one segment.

Unaudited Interim Financial Statements

The accompanying interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information and the instructions to Rule 10-01 of Regulation S-X, and should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended June 30, 2015. The financial statements as of December 31, 2015 and for the three and six months ended December 31, 2015 and 2014 presented in this Quarterly Report on Form 10-Q are unaudited; however, in the opinion of management such financial statements reflect all adjustments, consisting solely of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods presented. The results of operations for the periods presented are not necessarily indicative of the results that might be expected for future interim periods or for the full year.

Reclassifications

Certain amounts reported for the prior period in the accompanying unaudited financial statements have been reclassified in order to conform to the current period’s presentation. Assets and liabilities related to the Distribution on the Company's consolidated balance sheet as of June 30, 2015 have been reclassified as assets and liabilities of discontinued operations (See Note 3 for further details). All assets and liabilities related to discontinued operations are excluded from the footnotes unless otherwise noted. In addition, the historical results of MSG have been reflected in the accompanying statements of operations for the three and six months ended December 31, 2014 as discontinued operations.

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Accounting Policies

6 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Accounting Policies

Principles of Consolidation

The consolidated financial statements of the Company include the accounts of MSG Networks Inc. and its subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. See Note 3 for a discussion of media rights recognized as revenues by MSG from the licensing of team-related programming to the Company.

Use of Estimates

The preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Such estimates include the valuation of accounts receivable, goodwill, intangible assets, other long-lived assets, tax accruals and other liabilities. In addition, estimates are used in revenue recognition, income tax expense, performance and share-based compensation, depreciation and amortization, litigation matters and other matters. Management believes its use of estimates in the consolidated financial statements to be reasonable.

Management evaluates its estimates on an ongoing basis using historical experience and other factors, including the general economic environment and actions it may take in the future. The Company adjusts such estimates when facts and circumstances dictate. However, these estimates may involve significant uncertainties and judgments and cannot be determined with precision. In addition, these estimates are based on management's best judgment at a point in time and as such these estimates may ultimately differ from actual results. Changes in estimates resulting from weakness in the economic environment or other factors beyond the Company's control could be material and would be reflected in the Company's financial statements in future periods.

Recently Adopted Accounting Pronouncements

In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which amends the FASB Accounting Standards Codification (“ASC”) to require that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the related liability. In August 2015, the FASB issued ASU No. 2015-15, Interest-Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements-Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting, to clarify that an entity may elect to present debt issuance costs related to a line-of-credit arrangement as an asset, regardless of whether or not there are any outstanding borrowings on the line-of-credit arrangement. These standards were adopted by the Company in the first quarter of fiscal year 2016. See Note 8 for the presentation of the Company's deferred financing costs in accordance with these standards. There was no impact to the prior year consolidated financial statements as the Company's historical deferred financing costs pertaining to its revolving credit facility were presented as assets as permitted under ASU No. 2015-15.

In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes (Topic 740), which eliminates the requirement to present deferred tax assets and liabilities as current and non-current in a classified balance sheet. Instead, companies will be required to classify all deferred tax assets and liabilities as non-current. The Company early adopted this ASU in the second quarter of fiscal year 2016. There was no impact to the prior year financial statements as a result of this adoption.

Recently Issued Accounting Pronouncements Not Yet Adopted

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in FASB ASC Topic 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which defers the effective date of ASU No. 2014-09 for all entities by one year. Early adoption is permitted and the Company can early adopt ASU No. 2014-09 beginning in the first quarter of fiscal year 2018. If the Company does not apply the early adoption provision, ASU No. 2014-09 will be effective for the Company beginning in the first quarter of fiscal year 2019 using one of two retrospective application methods. The Company is currently evaluating the impact this standard will have on its consolidated financial statements.

In April 2015, the FASB issued ASU No. 2015-05, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40):Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement, which provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract and expense the cost as the services are received. This standard will be effective for the Company beginning in the first quarter of fiscal year 2017. Early adoption is permitted. This standard may be adopted retrospectively or prospectively to arrangements entered into, or materially modified, after the effective date. The Company is currently evaluating the impact this standard will have on its consolidated financial statements.

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Discontinued Operations

6 Months Ended

Dec. 31, 2015

Discontinued Operations [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Discontinued Operations

As a result of the Distribution, the results of the Company’s MSG operations through the Distribution Date, as well as transaction costs related to the Distribution, have been classified in the consolidated statements of operations as discontinued operations for all periods presented. No gain or loss was recognized in connection with the Distribution. Operating results of discontinued operations for the three and six months ended December 31, 2015 and 2014 are summarized below:

	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2015			2014			2015			2014
Revenues (1)	$	—		$	396,814		$	150,381		$	515,730
Direct operating expenses	—			269,166			71,320			337,042
Selling, general and administrative expenses	137			48,552			57,824			85,645
Depreciation and amortization	—			23,800			23,772			57,116
Operating income (loss)	(137		)	55,296			(2,535		)	35,927
Equity in earnings (loss) of equity-method investments	—			(30,151		)	2,679			(32,755		)
Interest income	—			426			635			875
Interest expense	—			(620		)	(540		)	(1,276		)
Miscellaneous income	—			1,280			—			1,360
Income (loss) from discontinued operations before income taxes	(137		)	26,231			239			4,131
Income tax expense	—			(13,917		)	(161,393		)	(4,166		)
Income (loss) from discontinued operations, net of taxes	$	(137	)	$	12,314		$	(161,154	)	$	(35	)

(1) Revenues for the six months ended December 31, 2015 and for the three and six months ended December 31, 2014 include media rights recognized as revenues by MSG from the licensing of team-related programming to the Company that prior to the Distribution were eliminated in consolidation. However, these amounts are now reflected as revenues in the income (loss) from discontinued operations line with the offsetting expense in direct operating expenses, within continuing operations, in the accompanying statements of operations.

Amounts for the three and six months ended December 31, 2014 presented above differ from historically reported results for the Company's Sports and Entertainment segments due to certain reclassifications and adjustments made to corporate overhead costs for purposes of discontinued operations reporting.

The assets and liabilities of MSG have been classified in the consolidated balance sheet as of June 30, 2015 as assets and liabilities of discontinued operations and consist of the following, by major class:

	June 30, 2015
Cash and cash equivalents	$	14,917
Accounts receivable, net	51,133
Other current assets	59,846
Current assets of discontinued operations	125,896
Investments and loans to nonconsolidated affiliates	249,394
Property and equipment, net	1,188,705
Goodwill	277,166
Intangible assets, net	189,174
Other non-current assets	79,158
Non-current assets of discontinued operations	1,983,597
Accounts payable and accrued liabilities	196,423
Deferred revenue	323,756
Current liabilities of discontinued operations	520,179
Defined benefits and other postretirement obligations	56,740
Other employee related costs	51,687
Deferred tax liability	171,928
Other non-current liabilities	49,939
Non-current liabilities of discontinued operations	330,294
Net assets of discontinued operations	$	1,259,020
The following table summarizes the net impact of the Distribution to Company's stockholders' equity (deficiency):
Decrease in additional paid-in capital	$	(1,067,968	)
Decrease in retained earnings	(1,705,189		)
Decrease in accumulated other comprehensive loss	20,406
	$	(2,752,751	)

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Computation of Earnings Per Common Share

6 Months Ended

Dec. 31, 2015

Earnings Per Share [Abstract]

Computation of Earnings per Common Share

Computation of Earnings (Loss) per Common Share

Basic earnings (loss) per common share (“EPS”) is based upon net income (loss) available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted EPS reflects the effect of the assumed vesting of restricted stock units (“RSUs”) and exercise of stock options only in the periods in which such effect would have been dilutive.

The following table presents a reconciliation of the weighted-average number of shares used in the calculations of basic and diluted EPS.

	Three Months Ended		Six Months Ended
	December 31,		December 31,
	2015	2014	2015	2014
Weighted-average number of shares for basic EPS	74,959	77,727	75,240	77,611
Dilutive effect of shares issuable under share-based compensation plans	414	525	399	660
Weighted-average number of shares for diluted EPS	75,373	78,252	75,639	78,271
Anti-dilutive shares	—	—	—	7

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Disposition

6 Months Ended

Dec. 31, 2015

Discontinued Operations and Disposal Groups [Abstract]

Disposition Excluding Discontinued Operations [Text Block]

Disposition

On July 1, 2014, the Company completed its sale of Fuse, a national music television network, to Fuse Media, Inc. for a cash purchase price of $231,995 and a 15% equity interest of approximately $24,000 in Fuse Media, LLC (“Fuse Media”). Upon satisfaction of certain performance goals, the Company recognized its interest in Fuse Media, and finalized a working capital adjustment during the second quarter of fiscal year 2015. The Company recorded a pre-tax gain on the sale of Fuse, which is reflected in operating income in the accompanying consolidated statements of operations for the three and six months ended December 31, 2014, of $23,764 and $186,178 (net of transaction costs of $3,932), respectively.

The equity interest in Fuse Media was transferred to MSG in connection with the Distribution.

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Goodwill and Intangible Assets

6 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill And Intangible Assets

Goodwill and Intangible Assets

The goodwill balance reported on the Company's balance sheet as of December 31, 2015 and June 30, 2015, is $424,508.During the first quarter of fiscal year 2016, the Company performed its annual impairment test of goodwill, and there was no impairment of goodwill identified, including the goodwill of the MSG Entertainment and MSG Sports reporting units that was transferred to MSG as a part of Distribution.

During the first quarter of fiscal year 2016, the Company performed its annual impairment test of identifiable indefinite-lived intangible assets, all of which were transferred to MSG in connection with the Distribution, and there was no impairment identified.

The Company's intangible assets subject to amortization are as follows:

	December 31, 2015			June 30, 2015
Affiliate relationships	$	83,044		$	83,044
Less accumulated amortization	(37,191		)	(35,461		)
	$	45,853		$	47,583

Amortization expense for intangible assets was $865 for the three months endedDecember 31, 2015 and 2014, respectively, and $1,730 for the six months ended December 31, 2015 and 2014, respectively.

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Property and Equipment

6 Months Ended

Dec. 31, 2015

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and Equipment

As of December 31, 2015 and June 30, 2015, property and equipment consisted of the following assets:

	December 31, 2015			June 30, 2015
Equipment	$	46,992		$	43,277
Furniture and fixtures	1,740			1,723
Leasehold improvements	19,644			19,645
Construction in progress	391			3,103
	68,767			67,748
Less accumulated depreciation and amortization	(52,804		)	(48,234		)
	$	15,963		$	19,514

Depreciation and amortization expense on property and equipment was $2,226 and $3,580 for the three months endedDecember 31, 2015 and 2014, respectively, and $6,040 and $7,000 for the six months endedDecember 31, 2015 and 2014, respectively, which includes depreciation expense on certain corporate property and equipment that was transferred to MSG in connection with the Distribution, but which did not qualify for discontinued operations reporting.

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Debt

6 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Debt

Debt

Former Revolving Credit Facility

On May 6, 2014, MSGN Holdings, L.P., formerly MSG Holdings, L.P., (“MSGN L.P.”) and certain of its subsidiaries entered into a credit agreement with a syndicate of lenders providing for a senior secured revolving credit facility of $500,000with a term offiveyears (the “Former Revolving Credit Facility”). In connection with the Distribution, MSGN L.P. terminated the Former Revolving Credit Facility effective on September 28, 2015.

Senior Secured Credit Facilities

On September 28, 2015, MSGN L.P., MSGN Eden, LLC, an indirect subsidiary of the Company and the general partner of MSGN L.P. (“MSGN Eden”), Regional MSGN Holdings LLC, a direct subsidiary of the Company and the limited partner of MSGN L.P. (collectively with MSGN Eden, the “Holdings Entities”), and certain subsidiaries of MSGN L.P. entered into a credit agreement (the “Credit Agreement”) with a syndicate of lenders.

The Credit Agreement provides MSGN L.P. with senior secured credit facilities (the “Senior Secured Credit Facilities”) consisting of: (a) an initial$1,550,000term loan facility (the “Term Loan Facility”) and (b) a$250,000revolving credit facility (the “Revolving Credit Facility”), each with a term of five years. In connection with the Distribution,$1,450,000of the proceeds from the Term Loan Facility was contributed to MSG immediately following the closing of the Senior Secured Credit Facilities. Up to $35,000of the Revolving Credit Facility is available for the issuance of letters of credit.

Subject to the satisfaction of certain conditions and limitations, the Credit Agreement allows for the addition of incremental term and/or revolving loan commitments and incremental term and/or revolving loans. Borrowings under the Credit Agreement bear interest at a floating rate, which at the option of MSGN L.P. may be either (a) base rate, representing the higher of: (i) the New York Fed Bank Rate plus 0.50%; (ii) the U.S. Prime Rate; or (iii) the one-month LIBOR rate plus 1.00%, plus an additional rate ranging from 0.50% to 1.25% per annum (determined based on a total leverage ratio) (the “Base Rate”), or (b) a Eurodollar rate plus an additional rate ranging from 1.50% to 2.25% per annum (determined based on a total leverage ratio) (the “Eurodollar Rate”), provided that for the period until the delivery of the compliance certificate for the period ending March 31, 2016, the additional rate used in calculating both floating rates will be (i) 1.00% per annum for borrowings bearing interest at the Base Rate, and (ii) 2.00% per annum for borrowings bearing interest at the Eurodollar Rate. Upon a payment default in respect of principal, interest or other amounts due and payable under the Credit Agreement or related loan documents, default interest will accrue on all overdue amounts at an additional rate of 2.00% per annum. The Credit Agreement requires MSGN L.P. pay a commitment fee of 0.30%in respect of the average daily unused commitments, as well as fronting fees, to banks that issue letters of credit pursuant to the Revolving Credit Facility.

The Credit Agreement generally requires MSGN L.P. to comply with a maximum total leverage ratio of 6.00:1.00 from the closing date until September 30, 2016 and a maximum total leverage ratio of 5.50:1.00 from and after October 1, 2016 until maturity, subject, in each case, to upward adjustment during the continuance of certain events. In addition, there is a minimum interest coverage ratio of 2.00:1.00 for the Holdings Entities, MSGN L.P. and the restricted subsidiaries of MSGN L.P. As of December 31, 2015, MSGN L.P. was in compliance with the financial covenants of the Credit Agreement. All borrowings under the Credit Agreement are subject to the satisfaction of customary conditions, including absence of a default and accuracy of representations and warranties. As of December 31, 2015, there were noletters of credit issued and outstanding under the Revolving Credit Facility, which provides full borrowing capacity of$250,000.

As of December 31, 2015, the principal repayments required for the next five years under the Term Loan Facility are as follows:

Year 1	$	91,250
Year 2	75,000
Year 3	75,000
Year 4	88,125
Year 5	1,220,625
	$	1,550,000

All obligations under the Credit Agreement are guaranteed by the Holdings Entities and MSGN L.P.’s existing and future direct and indirect domestic subsidiaries that are not designated as excluded subsidiaries or unrestricted subsidiaries (the “Subsidiary Guarantors,” and together with the Holdings Entities, the “Guarantors”). All obligations under the Credit Agreement, including the guarantees of those obligations, are secured by certain of the assets of MSGN L.P. and each Guarantor (collectively, “Collateral”), including, but not limited to, a pledge of the equity interests in MSGN L.P. held directly by the Holdings Entities and the equity interests in each Subsidiary Guarantor held directly or indirectly by MSGN L.P. Subject to customary notice and minimum amount conditions, MSGN L.P. may voluntarily prepay outstanding loans under the Credit Agreement at any time, in whole or in part, without premium or penalty (except for customary breakage costs with respect to Eurodollar loans). MSGN L.P. is required to make mandatory prepayments in certain circumstances, including without limitation from the net cash proceeds of certain sales of assets (including Collateral) or casualty insurance and/or condemnation recoveries (subject to certain reinvestment, repair or replacement rights) and the incurrence of certain indebtedness, subject to certain exceptions.

In addition to the financial covenants previously discussed, the Credit Agreement and the related security agreement contain certain customary representations and warranties, affirmative covenants and events of default. The Credit Agreement contains certain restrictions on the ability of MSGN L.P. and its restricted subsidiaries to take certain actions as provided in (and subject to various exceptions and baskets set forth in) the Credit Agreement, including the following: (i) incurring additional indebtedness and contingent liabilities; (ii) creating liens on certain assets; (iii) making investments, loans or advances in or to other persons; (iv) paying dividends and distributions or repurchases of capital stock; (v) changing its lines of business; (vi) engaging in certain transactions with affiliates; (vii) amending specified material agreements; (viii) merging or consolidating; (ix) making certain dispositions; and (x) entering into agreements that restrict the granting of liens. The Holdings Entities are subject to customary passive holding company covenants.

The Company is amortizing its deferred financing costs on a straight-line basis over the five-year term of the Senior Secured Credit Facilities which approximates the effective interest method. The following table summarizes the presentation of the Term Loan Facility and the deferred financing costs in accordance with ASU No. 2015-03 and ASU No. 2015-15 (see note 2) in the accompanying consolidated balance sheet as of December 31, 2015:

Reported in	Term Loan Facility		Deferred Financing Costs		Total
Other current assets	$	—	$	417	$	417
Other assets	—		1,564		1,564
Current portion of long-term debt (1)	91,250		2,586		88,664
Long-term debt, net of current portion (1)	1,458,750		9,698		1,449,052
Total	$	1,550,000	$	14,265	$	1,539,697

(1)     Amount presented in the Total column is on a net basis.

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Commitments and Contingencies

6 Months Ended

Dec. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

Commitments and Contingencies

Commitments

As of December 31, 2015, future cash payments required under contracts entered into by the Company in the normal course of business, including future minimum rental payments under leases having noncancelable initial lease terms in excess of one year, are as follows:

	Total		Remainder of the current fiscal year		Fiscal years 2-3		Fiscal years 4-5		Thereafter
Contractual Obligations	$	4,653,820	$	141,307	$	428,484	$	433,144	$	3,650,885

Contractual obligations above consist primarily of the Company's obligations related to professional team rights, which were acquired under license agreements, to telecast certain live sporting events.

In connection with the Distribution, certain contractual obligations, principally those that the Company had under employment agreements with its professional sports teams' personnel and long-term noncancelable operating lease agreements for entertainment venues and certain office and storage space, were transferred to MSG.

In addition, see note 8 for the principal repayments required under the Company's Term Loan Facility.

Legal Matters

The Company is a defendant in various lawsuits. Although the outcome of these matters cannot be predicted with certainty, management does not believe that resolution of these lawsuits will have a material adverse effect on the Company.

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Fair Value Measurements

6 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity's pricing based upon their own market assumptions. The fair value hierarchy consists of the following three levels:

• Level I — Quoted prices for identical instruments in active markets.

• Level II — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

• Level III — Instruments whose significant value drivers are unobservable.

The following table presents for each of these hierarchy levels, the Company's assets that are measured at fair value on a recurring basis, which include cash equivalents:

	Level I		Level II		Level III		Total
December 31, 2015
Assets:
Money market accounts	$	144,506	$	—	$	—	$	144,506
Time deposits	93,319		—		—		93,319
Total assets measured at fair value	$	237,825	$	—	$	—	$	237,825
June 30, 2015
Assets:
Money market accounts	$	89,062	$	—	$	—	$	89,062
Time deposits	113,227		—		—		113,227
Total assets measured at fair value	$	202,289	$	—	$	—	$	202,289

Money market accounts and time deposits are classified within Level 1 of the fair value hierarchy as they are valued using observable inputs that reflect quoted prices for identical assets in active markets. The carrying amount of the Company's money market accounts and time deposits approximates fair value due to their short-term maturities.

Other Financial Instruments

The fair value of the Company's long-term debt (see note 8) was approximately $1,526,750 as of December 31, 2015. The Company's long-term debt is classified within level 2 of the fair value hierarchy as it is valued using quoted prices of such securities for which fair value can also be derived from inputs that are readily observable.

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Pension Plans and Other Postretirement Benefit Plan

6 Months Ended

Dec. 31, 2015

Compensation and Retirement Disclosure [Abstract]

Pension Plans And Other Postretirement Benefit Plan

Pension Plans and Other Postretirement Benefit Plan

Prior to the Distribution, the Company sponsored a non-contributory qualified cash balance retirement plan covering its non-union employees (the “MSG Cash Balance Pension Plan”) and an unfunded non-contributory, non-qualified excess cash balance plan covering certain employees who participate in the underlying qualified plan (collectively, the “Cash Balance Plans”). Since March 1, 2011, the Cash Balance Plans have also included the assets and liabilities of a frozen (as of December 31, 2007) non-contributory qualified defined pension plan covering non-union employees hired prior to January 1, 2001.

Also, the Company historically sponsored an unfunded non-contributory non-qualified defined benefit pension plan for the benefit of certain employees who participate in the underlying qualified plan, which was merged into the Cash Balance Pension Plan on March 1, 2011 (the “Excess Plan”). As of December 31, 2007, the Excess Plan was amended to freeze all benefits earned through December 31, 2007 and to eliminate the ability of participants to earn benefits for future service under these plans.

In addition, prior to the Distribution, the Company sponsored two non-contributory qualified defined benefit pension plans covering certain of its union employees (“Union Plans”). Benefits payable to retirees under the Union Plans are based upon years of service and, for one plan, participants’ compensation.

The Cash Balance Plans, Excess Plan and Union Plans are collectively referred to as the “Pension Plans.”

The Company also sponsors a contributory welfare plan which provides certain postretirement healthcare benefits to certain employees hired prior to January 1, 2001 who are eligible to commence receipt of early or normal Retirement Plan benefits under the MSG Cash Balance Pension Plan and their dependents, as well as certain union employees (“Postretirement Plan”).

As a result of the Distribution, the assets and liabilities of the MSG Cash Balance Pension Plan and one of the Union Plans have been transferred to MSG. In addition, the following have been transferred to MSG: Liabilities related to (1) current MSG employees who are active participants in the Excess Plan and/or the unfunded non-contributory non-qualified excess cash balance plan, (2) current MSG employees who are eligible for participation in the Postretirement Plan, and (3) former MSG employees who are retired participants in the Postretirement Plan. The Company has retained liabilities related to (1) its current employees and former employees of the Company or MSG who are active participants in the Excess Plan and/or the unfunded non-contributory non-qualified excess cash balance plan, (2) its current employees who are eligible for participation in the Postretirement Plan, (3) its former employees who are retired participants in the Postretirement Plan, and (4) the Union Plan that was not transferred to MSG.

Components of net periodic benefit cost for the Company's Pension Plans and Postretirement Plan recognized in direct operating expenses, selling, general and administrative expenses, and Income (loss) from discontinued operations in the accompanying consolidated statements of operations for the three and six months ended December 31, 2015 and 2014 are as follows:

	Pension Plans						Postretirement Plan
	Three Months Ended						Three Months Ended
	December 31,						December 31,
	2015			2014			2015			2014
Service cost	$	121		$	1,738		$	18		$	61
Interest cost	438			1,979			32			93
Expected return on plan assets	(110		)	(916		)	—			—
Recognized actuarial loss (a)	125			565			—			6
Amortization of unrecognized prior service cost (credit) (a)	—			6			(11		)	(35		)
Net periodic benefit cost	$	574		$	3,372		$	39		$	125

	Pension Plans						Postretirement Plan
	Six Months Ended						Six Months Ended
	December 31,						December 31,
	2015			2014			2015			2014
Service cost	$	1,742		$	3,476		$	68		$	122
Interest cost	2,563			3,958			123			186
Expected return on plan assets	(960		)	(1,832		)	—			—
Recognized actuarial loss (a)	501			1,130			—			12
Amortization of unrecognized prior service cost (credit) (a)	14			12			(42		)	(70		)
Net periodic benefit cost	$	3,860		$	6,744		$	149		$	250

^(a) Reflects amounts reclassified from accumulated other comprehensive loss.

Amounts presented in the table above include net periodic benefit cost related to continued operations of $613 and $1,488for the three months endedDecember 31, 2015 and 2014, respectively, and $2,004 and $2,970 for the six months endedDecember 31, 2015 and 2014, respectively. The net periodic benefit cost related to discontinued operations is $2,009 for the three months endedDecember 31, 2014, and $1,895 and $4,024 for the six months endedDecember 31, 2015 and 2014, respectively. 

In addition, prior to the Distribution, the Company sponsored the MSG Holdings, L.P. 401(k) Savings Plan (the "MSG Savings Plan") and the MSG Holdings, L.P. Excess Savings Plan ("Excess Savings Plan", together with the MSG Savings Plan, the "Savings Plans"). Expenses related to the Savings Plans included in the accompanying consolidated statements of operations for the three and six months ended December 31, 2015 and 2014 are as follows:

	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2015		2014		2015		2014
Continuing Operations	$	—	$	287	$	334	$	614
Discontinued Operations	—		583		652		1,153
Total Savings Plan Expense	$	—	$	870	$	986	$	1,767

In addition, prior to the Distribution, the Company sponsored the MSG Holdings, L.P. 401(k) Union Plan (the "MSG Union Savings Plan"). Expenses related to the MSG Union Plan included in the accompanying consolidated statements of operations were $112 for the three months endedDecember 31, 2014, and $18 and $124 for the six months endedDecember 31, 2015 and 2014, respectively. These amounts have been classified in the consolidated statements of operations as discontinued operations for all periods presented.

As a result of the Distribution, the MSG Savings Plan and MSG Union Savings Plan were each amended to a) transfer sponsorship of the plans to MSG, and b) become a multiple employer plan in which both MSG and the Company will continue to participate.

As a result of the Distribution, liabilities relating to current MSG employees who were active participants in the Company's Excess Savings Plan have been transferred to MSG.

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Share-Based Compensation

6 Months Ended

Dec. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-based Compensation

Share-based Compensation

See Note 17 to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended June 30, 2015 for more information regarding the Company's 2010 Employee Stock Plan (the "Employee Stock Plan") and 2010 Stock Plan For Non-Employee Directors (the "Non-Employee Director Plan"), as well as certain share-based payment awards initially granted under Cablevision Systems Corporation ("Cablevision") equity award programs.

In connection with the Distribution, each holder of an employee restricted stock unit ("RSU") that was granted prior to July 1, 2015 received one MSG RSU in respect of every three RSUs owned on the Record Date and continues to be entitled to a share of the Company's Class A Common Stock (or cash or other property) for each RSU in accordance with the existing award agreement. In connection with the Distribution, each employee RSU that was granted after July 1, 2015 was adjusted in accordance with its terms, such that (1) each holder who remained employed by the Company following the Distribution continued to hold Company RSUs, with the number of RSUs adjusted to reflect the Distribution to maintain the value of the RSUs, and (2) each holder who MSG employed following the Distribution received MSG RSUs of the same value as the Company RSUs, and the original Company RSUs were canceled. Any holder of RSUs granted after July 1, 2015 who was employed by both MSG and the Company following the Distribution continues to hold the Company's RSUs, adjusted to reflect the Distribution, and received MSG RSUs in connection with the Distribution, so that the Company's RSUs represent 30% of the value of the original awards and MSG RSUs represent 70% of the value of the original RSU award.

Also in connection with the Distribution, one share of MSG Class A Common Stock was issued under the MSG 2015 Non-Employee Director Plan in respect of every three RSUs outstanding under the Company’s Non-Employee Director Plan.

In connection with the Distribution, each option to purchase the Company's Class A Common Stock became two options: one option to acquire MSG Class A Common Stock and one option to acquire the Company's Class A Common Stock. The existing exercise price was allocated between the existing options and the new MSG options based upon the volume-weighted average prices of the MSG Class A Common Stock and the Company's Class A Common Stock over the ten trading days immediately following the Distribution as reported by Bloomberg Business, and the underlying share amount took into account the one-to-three distribution ratio (i.e., one share of MSG Class A Common Stock was issued for every three shares of the Company's Class A Common Stock). Other than the split of the options and the allocation of the existing exercise price, there were no additional adjustments to the existing options in connection with the Distribution and the terms of each employee’s applicable option award agreement will continue to govern the Company's options.

The Company's stock options/RSUs held by MSG, Cablevision and AMC Networks Inc. (“AMC Networks”) employees will not be expensed by the Company; however, such stock options/RSUs do have a dilutive effect on earnings (loss) per share available to the Company's common stockholders.

Share-based compensation expense reduced for estimated forfeitures for continuing operations was $2,652 and $5,626 for the three months endedDecember 31, 2015 and 2014, respectively, and $6,899 and $8,002 for the six months endedDecember 31, 2015 and 2014, respectively. Share-based compensation expense for continuing operations is presented within selling, general and administrative expenses and direct operating expenses. Share-based compensation expense for discontinued operations was $1,401 for the three months endedDecember 31, 2014 and $808 and $2,642 for the six months endedDecember 31, 2015 and 2014, respectively

Stock Options Award Activity

The following table summarizes activity relating to holders (including Company, MSG, Cablevision and AMC Networks employees and directors) of the Company's stock options, all of which were exercisable, for the six months endedDecember 31, 2015:

	Number of				Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term (In Years) (1)	Aggregate Intrinsic Value
	Nonperformance Based Vesting Options		Performance Based Vesting Options
Balance as of June 30, 2015	128		17		$	12.44	0.64	$	10,293
Exercised	(58	)	(17	)	10.07
Balance as of December 31, 2015	70		—		$	2.81	0.43	$	1,256

(1) Weighted-average exercise price per share as of June 30, 2015 and for activity prior to the Distribution Date does not reflect any adjustment associated with the Distribution. See above for a discussion of the treatment of options in connection with the Distribution.

The aggregate intrinsic value is calculated as the difference between (i) the exercise price of the underlying award and (ii) the quoted price of the Company's Class A Common Stock for all options outstanding (and all exercisable) which were all in-the-money at December 31, 2015 and June 30, 2015, as applicable. For the six months endedDecember 31, 2015 the aggregate intrinsic value of the Company's stock options exercised was $4,236, determined as of the date of option exercise.

Restricted Share Units Award Activity

The following table summarizes activity relating to holders (including Company and MSG employees) of the Company's RSUs for the six months endedDecember 31, 2015:

	Number of
	Nonperformance Based Vesting RSUs		Performance Based Vesting RSUs		Weighted-Average Fair Value Per Share At Date of Grant (1)
Unvested award balance, June 30, 2015	489		98		$	56.51
Granted	270		950		55.34
Vested	(244	)	(42	)	37.14
Canceled	(132	)	(566	)	77.99
Forfeited	(20	)	(2	)	67.05
Unvested award balance, December 31, 2015	363		438		$	39.18

(1) Weighted-average fair value per share at date of grant as of June 30, 2015 and for activity prior to the Distribution Date does not reflect any adjustment associated with the Distribution. See above for a discussion of the treatment of RSUs in connection with the Distribution.

See above for a discussion of the treatment of RSUs granted after July 1, 2015. During the six months endedDecember 31, 2015, the Company granted time-vesting RSUs (the “FY2016 RSUs”) that are generally subject to three-year ratable vesting (and are also, in the case of RSUs granted to executive officers, subject to certain performance conditions), and performance-vesting RSUs (the “FY2016 PSUs”) that will vest in September 2018 subject to the achievement of certain performance conditions.

The fair value of RSUs that vested during the six months endedDecember 31, 2015 was $17,123. Upon delivery, RSUs granted under the Employee Stock Plan were net share-settled to cover the required statutory tax withholding obligations and the remaining number of shares were issued from the Company's treasury shares. To fulfill the employees' statutory minimum tax withholding obligations for the applicable income and other employment taxes, 150 of these RSUs, with an aggregate value of $11,114, were retained by the Company and reflected as financing activity in the accompanying consolidated statement of cash flows for the six months endedDecember 31, 2015.

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Stock Repurchase Program

6 Months Ended

Dec. 31, 2015

Equity [Abstract]

Treasury Stock [Text Block]

Stock Repurchase Program

On October 27, 2014, the Company's Board of Directors authorized the repurchase of up to $500,000 of the Company's Class A Common Stock. Under the authorization, shares of Class A Common Stock were able to be purchased from time to time in open market or private transactions, in accordance with applicable insider trading and other securities laws and regulations. On September 11, 2015, the Company's Board of Directors terminated such authorization effective as of the Distribution Date.

For the six months endedDecember 31, 2015, the Company has repurchased 1,336 shares, which are determined based on the settlement date of such trades, for a total cost of $100,027, including commissions and fees. These acquired shares have been classified as treasury stock in the accompanying consolidated balance sheet as of December 31, 2015.

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Related Party Transactions

6 Months Ended

Dec. 31, 2015

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

As of December 31, 2015, members of the Dolan family group, for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, including trusts for the benefit of the Dolan family group, collectively beneficially own all of the Company's outstanding Class B Common Stock and own approximately 2.5% of the Company's outstanding Class A Common Stock. Such shares of the Company's Class A Common Stock and Class B Common Stock, collectively, represent approximately 69.7% of the aggregate voting power of the Company's outstanding common stock. Members of the Dolan family are also the controlling stockholders of MSG, Cablevision and AMC Networks.

In connection with the Distribution, the Company has entered into various agreements with MSG, including media rights agreements covering New York Knicks ("Knicks") and New York Rangers ("Rangers") games, an advertising sales representation agreement, a trademark license agreement and a transition services agreement ("TSA").

The Company has entered into various agreements with Cablevision and AMC Networks in connection with, and subsequent to, the distribution on February 10, 2010, when Cablevision distributed all of the outstanding common stock of the Company to Cablevision stockholders. These agreements include arrangements with respect to a number of ongoing commercial relationships including affiliation agreements for carriage by Cablevision of MSG Networks.

Revenues and Operating Expenses

The following table summarizes the composition and amounts of related party transactions that are reflected in revenues and operating expenses of continuing operations in the accompanying consolidated statements of operations for the three and six months ended December 31, 2015 and 2014:

	Three Months Ended December 31,					Six Months Ended December 31,
	2015		2014			2015		2014
Revenues	$	41,673	$	42,129		$	82,122	$	82,344
Operating expenses:
Rights fees	$	32,800	$	20,506		$	65,300	$	40,352
Commission	5,498		—			5,498		—
Origination, master control and technical services	1,459		1,423			2,876		2,759
Advertising	2,698		1,616			3,875		3,210
Other	2,584		(155		)	2,051		(165		)

Revenues

Revenues from related parties primarily consist of revenues recognized from the distribution of programming services to subsidiaries of Cablevision and include sponsorship revenue, as well as advertising and promotional benefits received by the Company which is recognized as the benefits are realized.

Rights fees

In connection with the Distribution, the Company has entered into media rights agreements with the Knicks and the Rangers, which provide the Company with exclusive media rights to team games in their local markets. These agreements are retroactively effective to July 1, 2015. Prior to the Distribution, these rights fees were eliminated in consolidation; however these amounts are now reflected prior to the Distribution as revenues in the Loss from Discontinued Operations line with the offsetting expense in Direct Operating Expenses within continuing operations in the accompanying statements of operations.

Commission

In connection with the Distribution, the Company entered into an advertising sales representation agreement, under which MSG has the exclusive right and obligation to sell the Company’s advertising availabilities for a commission.

Origination, Master Control and Technical Services

AMC Networks provides certain origination, master control and technical services to the Company.

Advertising

The Company incurs advertising expenses for services rendered by its related parties, primarily Cablevision, most of which are related to the utilization of advertising and promotional benefits by the Company, with an equal amount being recognized as revenue when the benefits are realized.

Other Operating Expenses

The Company and its related parties enter into transactions with each other in the ordinary course of business. Additionally, in connection with the Distribution, the Company entered into a TSA with MSG, under which the Company began outsourcing to MSG certain business functions that were previously performed by internal resources. These include activities related to information technology, accounting, accounts payable, payroll, tax, legal, human resources, treasury, insurance and risk management, investor relations, corporate communications, benefit plan administration and reporting, and internal audit.

Discontinued operations

Related party transactions included in loss from discontinued operations in the accompanying consolidated statements of operations include the following (i) revenues from related parties of $21,646 for the three months endedDecember 31, 2014 and $33,559 and $42,445 for the six months endedDecember 31, 2015 and 2014, respectively, (ii) operating expenses charged by related parties of $137 and $2,185 for the three months endedDecember 31, 2015 and 2014, respectively, and $964 and $3,074 for the six months endedDecember 31, 2015 and 2014, respectively, (iii) interest income from nonconsolidated affiliates of $426 for the three months endedDecember 31, 2014 and $635 and $875 for the six months endedDecember 31, 2015 and 2014, respectively, and (iv) equity in earnings (loss) of equity-method investments of $(30,151) for the three months endedDecember 31, 2014 and $2,679 and $(32,755) for the six months endedDecember 31, 2015 and 2014, respectively.

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Income Taxes

6 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Income tax expense attributable to continuing operations for the three months endedDecember 31, 2015 of $29,709 differs from the income tax expense derived from applying the statutory federal rate to pretax income due principally to state and local income taxes of $4,933 (net of federal benefit), an increase in state tax rates used to value deferred taxes resulting from the filing of the Company's state income tax returns of $4,489. These increases were partially offset by the tax benefits of the domestic production activities deduction of $1,715 and other items of $313.

Income tax expense attributable to continuing operations for the three months endedDecember 31, 2014 of $32,962 differs from the income tax expense derived from applying the statutory federal rate to pretax income due principally to state and local income taxes (net of federal benefit) of $4,561, an increase in state tax rates used to value deferred taxes due to the sale of Fuse of $3,989, and other items of $126. These increases were partially offset by the impact of the tax benefits of the domestic production activities deduction of $4,373.

Income tax expense attributable to continuing operations for the six months endedDecember 31, 2015 of $29,305 differs from the income tax expense derived from applying the statutory federal rate to pretax income due principally to a reduction in state tax rates used to value deferred taxes resulting from the Distribution of $16,941 and the tax benefits of the domestic production activities deduction of $2,764. These decreases were partially offset by an increase in state tax rates used to value deferred taxes resulting from the filing of the Company’s state income tax returns of $4,489, state and local income taxes of $7,731 (net of federal benefit), and other items of $151.

Income tax expense attributable to continuing operations for the six months endedDecember 31, 2014 of $129,374 differs from the income tax expense derived from applying the statutory federal rate to pretax income due principally to state and local income taxes of $22,433 (net of federal benefit), an increase in state tax rates used to value deferred taxes due to the sale of Fuse of $8,122 and other items of $171. These increases were partially offset by the impact of the tax benefits of the domestic production activities deduction of $5,854 and a tax return to book provision adjustment in connection with the filing of the Company's federal income tax return of $48.

Prior to the Distribution, the Company's collection for ticket sales, sponsorships and suite rentals in advance were recorded as deferred revenue and were recognized as revenues when earned for both accounting and tax purposes. In connection with the reorganization transactions related to the Distribution, the tax recognition on most of these deferred revenues was accelerated to the date of the reorganization. The estimated amount of additional tax on the acceleration of such deferred revenue is approximately $152,000 and is reflected in income tax expense of discontinued operations for the six months endedDecember 31, 2015. However, as the related tax will be paid by the Company, and will not be reimbursed by MSG, it is reflected in income taxes payable in the accompanying consolidated balance sheet as of December 31, 2015.

During the third quarter of fiscal year 2015, the Internal Revenue Service notified the Company of its intent to review the federal income tax returns as filed for the tax year ended December 31, 2013. Fieldwork is ongoing.  The Company does not expect the examination, when finalized, to result in material changes to the tax returns as filed.

During the fourth quarter of fiscal year 2015, the State of Connecticut commenced an examination of the Company's State of Connecticut income tax returns as filed for the tax years ended December 31, 2011, 2012, and 2013. The examination is currently nearing completion. The Company does not expect the examination, when finalized, to result in material changes to the tax returns as filed.

During the fourth quarter of fiscal year 2014, the State of New York commenced an examination of the Company's State of New York income tax returns as filed for the tax years ended December 31, 2010, 2011, and 2012. The examination is currently in fieldwork. The Company does not expect the examination, when finalized, to result in material changes to the tax returns as filed.

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Concentration of Risk

6 Months Ended

Dec. 31, 2015

Concentration of Risk [Abstract]

Concentration Risk Disclosure [Text Block]

Concentration of Risk

Accounts receivable, net on the accompanying consolidated balance sheets as of December 31, 2015 and June 30, 2015 include amounts due from the following individual non-affiliated customers, which accounted for the noted percentages of the gross balance:

	December 31, 2015		June 30, 2015
Customer A	43	%	29	%
Customer B	25	%	25	%
Customer C	17	%	17	%
Customer D	11	%	11	%

Revenues from continuing operations in the accompanying consolidated statements of operations for the three and six months ended December 31, 2015 and 2014 include amounts from the following individual non-affiliated customers, which accounted for the noted percentages of the total:

	Three Months Ended December 31,				Six Months Ended December 31,
	2015		2014		2015		2014
Customer A	22	%	21	%	23	%	22	%
Customer B	19	%	19	%	20	%	20	%
Customer C	10	%	11	%	11	%	11	%

Revenues from continuing operations in the accompanying consolidated statements of operations include revenues from Cablevision of $41,669 and $42,098 for the three months endedDecember 31, 2015 and 2014, respectively, which represent 25% and 25%, respectively, of the total and $81,447 and $82,297 for the six months endedDecember 31, 2015 and 2014, respectively, which represent, 26% and 25%, respectively, of the total.

The accompanying consolidated balance sheets as of December 31, 2015 and June 30, 2015 include the following approximate amounts that are recorded in connection with the Company's license agreement with the New Jersey Devils:

Reported in	December 31, 2015		June 30, 2015
Prepaid expenses	$	3,000	$	1,000
Other current assets	1,000		2,000
Other assets	42,000		41,000
	$	46,000	$	44,000

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Accounting Policies (Policies)

6 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Principles of Consolidation

Principles of Consolidation

The consolidated financial statements of the Company include the accounts of MSG Networks Inc. and its subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation.

Use of Estimates

Use of Estimates

The preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Such estimates include the valuation of accounts receivable, goodwill, intangible assets, other long-lived assets, tax accruals and other liabilities. In addition, estimates are used in revenue recognition, income tax expense, performance and share-based compensation, depreciation and amortization, litigation matters and other matters. Management believes its use of estimates in the consolidated financial statements to be reasonable.

Management evaluates its estimates on an ongoing basis using historical experience and other factors, including the general economic environment and actions it may take in the future. The Company adjusts such estimates when facts and circumstances dictate. However, these estimates may involve significant uncertainties and judgments and cannot be determined with precision. In addition, these estimates are based on management's best judgment at a point in time and as such these estimates may ultimately differ from actual results. Changes in estimates resulting from weakness in the economic environment or other factors beyond the Company's control could be material and would be reflected in the Company's financial statements in future periods.

New Accounting Pronouncement, Early Adoption [Table Text Block]

Recently Adopted Accounting Pronouncements

In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which amends the FASB Accounting Standards Codification (“ASC”) to require that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the related liability. In August 2015, the FASB issued ASU No. 2015-15, Interest-Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements-Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting, to clarify that an entity may elect to present debt issuance costs related to a line-of-credit arrangement as an asset, regardless of whether or not there are any outstanding borrowings on the line-of-credit arrangement. These standards were adopted by the Company in the first quarter of fiscal year 2016. See Note 8 for the presentation of the Company's deferred financing costs in accordance with these standards. There was no impact to the prior year consolidated financial statements as the Company's historical deferred financing costs pertaining to its revolving credit facility were presented as assets as permitted under ASU No. 2015-15.

Recently Issued Acounting Pronouncements Not Yet Adopted [Policy Text Block]

Recently Issued Accounting Pronouncements Not Yet Adopted

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in FASB ASC Topic 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which defers the effective date of ASU No. 2014-09 for all entities by one year. Early adoption is permitted and the Company can early adopt ASU No. 2014-09 beginning in the first quarter of fiscal year 2018. If the Company does not apply the early adoption provision, ASU No. 2014-09 will be effective for the Company beginning in the first quarter of fiscal year 2019 using one of two retrospective application methods. The Company is currently evaluating the impact this standard will have on its consolidated financial statements.

In April 2015, the FASB issued ASU No. 2015-05, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40):Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement, which provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract and expense the cost as the services are received. This standard will be effective for the Company beginning in the first quarter of fiscal year 2017. Early adoption is permitted. This standard may be adopted retrospectively or prospectively to arrangements entered into, or materially modified, after the effective date. The Company is currently evaluating the impact this standard will have on its consolidated financial statements.

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Computation of Earnings Per Common Share (Policies)

6 Months Ended

Dec. 31, 2015

Earnings Per Share [Abstract]

Earnings Per Share, Policy

Basic earnings (loss) per common share (“EPS”) is based upon net income (loss) available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted EPS reflects the effect of the assumed vesting of restricted stock units (“RSUs”) and exercise of stock options only in the periods in which such effect would have been dilutive.

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Discontinued Operations (Tables)

6 Months Ended

Dec. 31, 2015

Discontinued Operations [Abstract]

Disposal Groups, Including Discontinued Operations [Table Text Block]

	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2015			2014			2015			2014
Revenues (1)	$	—		$	396,814		$	150,381		$	515,730
Direct operating expenses	—			269,166			71,320			337,042
Selling, general and administrative expenses	137			48,552			57,824			85,645
Depreciation and amortization	—			23,800			23,772			57,116
Operating income (loss)	(137		)	55,296			(2,535		)	35,927
Equity in earnings (loss) of equity-method investments	—			(30,151		)	2,679			(32,755		)
Interest income	—			426			635			875
Interest expense	—			(620		)	(540		)	(1,276		)
Miscellaneous income	—			1,280			—			1,360
Income (loss) from discontinued operations before income taxes	(137		)	26,231			239			4,131
Income tax expense	—			(13,917		)	(161,393		)	(4,166		)
Income (loss) from discontinued operations, net of taxes	$	(137	)	$	12,314		$	(161,154	)	$	(35	)

(1) Revenues for the six months ended December 31, 2015 and for the three and six months ended December 31, 2014 include media rights recognized as revenues by MSG from the licensing of team-related programming to the Company that prior to the Distribution were eliminated in consolidation. However, these amounts are now reflected as revenues in the income (loss) from discontinued operations line with the offsetting expense in direct operating expenses, within continuing operations, in the accompanying statements of operations.

The assets and liabilities of MSG have been classified in the consolidated balance sheet as of June 30, 2015 as assets and liabilities of discontinued operations and consist of the following, by major class:

	June 30, 2015
Cash and cash equivalents	$	14,917
Accounts receivable, net	51,133
Other current assets	59,846
Current assets of discontinued operations	125,896
Investments and loans to nonconsolidated affiliates	249,394
Property and equipment, net	1,188,705
Goodwill	277,166
Intangible assets, net	189,174
Other non-current assets	79,158
Non-current assets of discontinued operations	1,983,597
Accounts payable and accrued liabilities	196,423
Deferred revenue	323,756
Current liabilities of discontinued operations	520,179
Defined benefits and other postretirement obligations	56,740
Other employee related costs	51,687
Deferred tax liability	171,928
Other non-current liabilities	49,939
Non-current liabilities of discontinued operations	330,294
Net assets of discontinued operations	$	1,259,020
The following table summarizes the net impact of the Distribution to Company's stockholders' equity (deficiency):
Decrease in additional paid-in capital	$	(1,067,968	)
Decrease in retained earnings	(1,705,189		)
Decrease in accumulated other comprehensive loss	20,406
	$	(2,752,751	)

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Computation of Earnings Per Common Share (Tables)

6 Months Ended

Dec. 31, 2015

Earnings Per Share [Abstract]

Reconciliation of Weighted-Average Shares Used in Calculation of Basic and Diluted EPS

The following table presents a reconciliation of the weighted-average number of shares used in the calculations of basic and diluted EPS.

	Three Months Ended		Six Months Ended
	December 31,		December 31,
	2015	2014	2015	2014
Weighted-average number of shares for basic EPS	74,959	77,727	75,240	77,611
Dilutive effect of shares issuable under share-based compensation plans	414	525	399	660
Weighted-average number of shares for diluted EPS	75,373	78,252	75,639	78,271
Anti-dilutive shares	—	—	—	7

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Goodwill and Intangible Assets (Tables)

6 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets Subject to Amortization

The Company's intangible assets subject to amortization are as follows:

	December 31, 2015			June 30, 2015
Affiliate relationships	$	83,044		$	83,044
Less accumulated amortization	(37,191		)	(35,461		)
	$	45,853		$	47,583

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Property and Equipment (Tables)

6 Months Ended

Dec. 31, 2015

Property, Plant and Equipment [Abstract]

Schedule of Property, Plant and Equipment

As of December 31, 2015 and June 30, 2015, property and equipment consisted of the following assets:

	December 31, 2015			June 30, 2015
Equipment	$	46,992		$	43,277
Furniture and fixtures	1,740			1,723
Leasehold improvements	19,644			19,645
Construction in progress	391			3,103
	68,767			67,748
Less accumulated depreciation and amortization	(52,804		)	(48,234		)
	$	15,963		$	19,514

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Debt (Tables)

6 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Schedule of Maturities of Long-term Debt [Table Text Block]

As of December 31, 2015, the principal repayments required for the next five years under the Term Loan Facility are as follows:

Year 1	$	91,250
Year 2	75,000
Year 3	75,000
Year 4	88,125
Year 5	1,220,625
	$	1,550,000

Schedule of Debt [Table Text Block]

The following table summarizes the presentation of the Term Loan Facility and the deferred financing costs in accordance with ASU No. 2015-03 and ASU No. 2015-15 (see note 2) in the accompanying consolidated balance sheet as of December 31, 2015:

Reported in	Term Loan Facility		Deferred Financing Costs		Total
Other current assets	$	—	$	417	$	417
Other assets	—		1,564		1,564
Current portion of long-term debt (1)	91,250		2,586		88,664
Long-term debt, net of current portion (1)	1,458,750		9,698		1,449,052
Total	$	1,550,000	$	14,265	$	1,539,697

(1)     Amount presented in the Total column is on a net basis.

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Commitments (Tables)

6 Months Ended

Dec. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block]

As of December 31, 2015, future cash payments required under contracts entered into by the Company in the normal course of business, including future minimum rental payments under leases having noncancelable initial lease terms in excess of one year, are as follows:

	Total		Remainder of the current fiscal year		Fiscal years 2-3		Fiscal years 4-5		Thereafter
Contractual Obligations	$	4,653,820	$	141,307	$	428,484	$	433,144	$	3,650,885

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Fair Value Measurements (Tables)

6 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets Measured on Recurring Basis

The following table presents for each of these hierarchy levels, the Company's assets that are measured at fair value on a recurring basis, which include cash equivalents:

	Level I		Level II		Level III		Total
December 31, 2015
Assets:
Money market accounts	$	144,506	$	—	$	—	$	144,506
Time deposits	93,319		—		—		93,319
Total assets measured at fair value	$	237,825	$	—	$	—	$	237,825
June 30, 2015
Assets:
Money market accounts	$	89,062	$	—	$	—	$	89,062
Time deposits	113,227		—		—		113,227
Total assets measured at fair value	$	202,289	$	—	$	—	$	202,289

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Pension Plans and Other Postretirement Benefit Plan (Tables)

6 Months Ended

Dec. 31, 2015

Compensation and Retirement Disclosure [Abstract]

Defined Contribution Plan Disclosures [Table Text Block]

	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2015		2014		2015		2014
Continuing Operations	$	—	$	287	$	334	$	614
Discontinued Operations	—		583		652		1,153
Total Savings Plan Expense	$	—	$	870	$	986	$	1,767

Schedule of Net Periodic Benefit Cost

	Pension Plans						Postretirement Plan
	Three Months Ended						Three Months Ended
	December 31,						December 31,
	2015			2014			2015			2014
Service cost	$	121		$	1,738		$	18		$	61
Interest cost	438			1,979			32			93
Expected return on plan assets	(110		)	(916		)	—			—
Recognized actuarial loss (a)	125			565			—			6
Amortization of unrecognized prior service cost (credit) (a)	—			6			(11		)	(35		)
Net periodic benefit cost	$	574		$	3,372		$	39		$	125

	Pension Plans						Postretirement Plan
	Six Months Ended						Six Months Ended
	December 31,						December 31,
	2015			2014			2015			2014
Service cost	$	1,742		$	3,476		$	68		$	122
Interest cost	2,563			3,958			123			186
Expected return on plan assets	(960		)	(1,832		)	—			—
Recognized actuarial loss (a)	501			1,130			—			12
Amortization of unrecognized prior service cost (credit) (a)	14			12			(42		)	(70		)
Net periodic benefit cost	$	3,860		$	6,744		$	149		$	250

^(a) Reflects amounts reclassified from accumulated other comprehensive loss.

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Share Based Compensation (Tables)

6 Months Ended

Dec. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

The following table summarizes activity relating to holders (including Company, MSG, Cablevision and AMC Networks employees and directors) of the Company's stock options, all of which were exercisable, for the six months endedDecember 31, 2015:

	Number of				Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term (In Years) (1)	Aggregate Intrinsic Value
	Nonperformance Based Vesting Options		Performance Based Vesting Options
Balance as of June 30, 2015	128		17		$	12.44	0.64	$	10,293
Exercised	(58	)	(17	)	10.07
Balance as of December 31, 2015	70		—		$	2.81	0.43	$	1,256

(1) Weighted-average exercise price per share as of June 30, 2015 and for activity prior to the Distribution Date does not reflect any adjustment associated with the Distribution. See above for a discussion of the treatment of options in connection with the Distribution.

Schedule of Share-based Compensation, Restricted Stock Units Award Activity

The following table summarizes activity relating to holders (including Company and MSG employees) of the Company's RSUs for the six months endedDecember 31, 2015:

	Number of
	Nonperformance Based Vesting RSUs		Performance Based Vesting RSUs		Weighted-Average Fair Value Per Share At Date of Grant (1)
Unvested award balance, June 30, 2015	489		98		$	56.51
Granted	270		950		55.34
Vested	(244	)	(42	)	37.14
Canceled	(132	)	(566	)	77.99
Forfeited	(20	)	(2	)	67.05
Unvested award balance, December 31, 2015	363		438		$	39.18

(1)

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Related Party Transactions (Tables)

6 Months Ended

Dec. 31, 2015

Related Party Transactions [Abstract]

Schedule of Related Party Transactions [Table Text Block]

The following table summarizes the composition and amounts of related party transactions that are reflected in revenues and operating expenses of continuing operations in the accompanying consolidated statements of operations for the three and six months ended December 31, 2015 and 2014:

	Three Months Ended December 31,					Six Months Ended December 31,
	2015		2014			2015		2014
Revenues	$	41,673	$	42,129		$	82,122	$	82,344
Operating expenses:
Rights fees	$	32,800	$	20,506		$	65,300	$	40,352
Commission	5,498		—			5,498		—
Origination, master control and technical services	1,459		1,423			2,876		2,759
Advertising	2,698		1,616			3,875		3,210
Other	2,584		(155		)	2,051		(165		)

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Concentration of Risk (Tables)

6 Months Ended

Dec. 31, 2015

Concentration of Risk [Abstract]

Schedules of Concentration of Risk, by Risk Factor [Table Text Block]

Accounts receivable, net on the accompanying consolidated balance sheets as of December 31, 2015 and June 30, 2015 include amounts due from the following individual non-affiliated customers, which accounted for the noted percentages of the gross balance:

	December 31, 2015		June 30, 2015
Customer A	43	%	29	%
Customer B	25	%	25	%
Customer C	17	%	17	%
Customer D	11	%	11	%

Revenues from continuing operations in the accompanying consolidated statements of operations for the three and six months ended December 31, 2015 and 2014 include amounts from the following individual non-affiliated customers, which accounted for the noted percentages of the total:

	Three Months Ended December 31,				Six Months Ended December 31,
	2015		2014		2015		2014
Customer A	22	%	21	%	23	%	22	%
Customer B	19	%	19	%	20	%	20	%
Customer C	10	%	11	%	11	%	11	%

Revenues from continuing operations in the accompanying consolidated statements of operations include revenues from Cablevision of $41,669 and $42,098 for the three months endedDecember 31, 2015 and 2014, respectively, which represent 25% and 25%, respectively, of the total and $81,447 and $82,297 for the six months endedDecember 31, 2015 and 2014, respectively, which represent, 26% and 25%, respectively, of the total.

The accompanying consolidated balance sheets as of December 31, 2015 and June 30, 2015 include the following approximate amounts that are recorded in connection with the Company's license agreement with the New Jersey Devils:

Reported in	December 31, 2015		June 30, 2015
Prepaid expenses	$	3,000	$	1,000
Other current assets	1,000		2,000
Other assets	42,000		41,000
	$	46,000	$	44,000

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Description of Business and Basis of Presentation (Details)	6 Months Ended
	Dec. 31, 2015 $ / shares	Sep. 21, 2015 $ / shares shares	Jun. 30, 2015 $ / shares
Class of Stock [Line Items]
Percentage of ownership of MSG business distributed to stockholders	100.00%
Number of reportable segments	1
Class A Common Stock [Member]
Class of Stock [Line Items]
Common stock, par value (dollars per share) | $ / shares	$ 0.01	$ 0.01	$ 0.01
Shares received after Distribution		1
Share Conversion Ratio for Distribution		3
Class B Common Stock [Member]
Class of Stock [Line Items]
Common stock, par value (dollars per share) | $ / shares	$ 0.01	$ 0.01	$ 0.01
Shares received after Distribution		1
Share Conversion Ratio for Distribution		3

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Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Jun. 30, 2015
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax			$ 0
Revenues	$ 0	$ 396,814	150,381	$ 515,730
Direct operating expenses	0	269,166	71,320	337,042
Selling general and administrative expenses	137	48,552	57,824	85,645
Depreciation and amortization	0	23,800	23,772	57,116
Operating loss	(137)	55,296	(2,535)	35,927
Equity in earnings (loss) of equity-method investments	0	(30,151)	2,679	(32,755)
Interest income	0		635
Interest expense	0	(620)	(540)	(1,276)
Miscellaneous income	0	1,280	0	1,360
Income (loss) from discontinued operations, before income taxes	(137)	26,231	239	4,131
Income tax (expense) benefit	0	13,917	161,393	4,166
Loss from discontinued operations, net of taxes	(137)	$ 12,314	(161,154)	$ (35)
Cash and cash equivalents					$ 14,917
Accounts receivable, net					51,133
Other current assets					59,846
Current assets of discontinued operations	0		0		125,896
Investments in and loans to non-consolidated affiliates					249,394
Property and equipment, net					1,188,705
Goodwill					277,166
Intangible Assets					189,174
Other non-current assets					79,158
Non-current assets of discontinued operations	0		0		1,983,597
Accounts Payable and accrued liabilities					196,423
Deferred Revenue					323,756
Current liabilities of discontinued operations	0		0		520,179
Defined benefits and other postretirement obligations					56,740
Other employees related costs					51,687
Deferred tax liability					171,928
Other non-current liabilities					49,939
Non-current liabilities of discontinued operations	$ 0		0		330,294
Net assets of discontinued operations					$ 1,259,020
Distribution of The Madison Square Garden Company			(2,752,751)
Additional Paid-in Capital [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Distribution of The Madison Square Garden Company			(1,067,968)
Retained Earnings [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Distribution of The Madison Square Garden Company			(1,705,189)
Accumulated Other Comprehensive Income (Loss) [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Distribution of The Madison Square Garden Company			$ 20,406

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Computation of Earnings Per Common Share (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Earnings Per Share [Abstract]
Weighted-average shares for basic EPS (in shares)	74,959	77,727	75,240	77,611
Dilutive effect of shares issuable under share-based compensation plans (in shares)	414	525	399	660
Weighted-average shares for diluted EPS (in shares)	75,373	78,252	75,639	78,271
Anti-dilutive shares (in shares)	0	0	0	7

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Disposition Disposition (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
	Jul. 01, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Sale Price for Disposed Entity					$ 231,995
Gain on sale of Fuse		$ 0	$ 23,764	$ 0	186,178
Fuse Media, LLC [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Noncash or Part Noncash Acquisition, Interest Acquired	15.00%
Noncash or Part Noncash Acquisition, Investments Acquired					24,000
Fuse [Member] | Madison Square Garden Media [Member] | Operating Segments [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on sale of Fuse			23,764		186,178
Business Disposition, Transaction Costs			$ 3,932		$ 3,932

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Goodwill and Intangible Assets (Carrying Amount of Goodwill By Reportable Segment) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2015	Dec. 31, 2015	Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill		$ 424,508	$ 424,508
Impairment of goodwill	$ 0

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Goodwill and Intangible Assets (Schedule of Intangible Assets Subject To Amortization) (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Jun. 30, 2015
Finite-Lived Intangible Assets [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		$ 0
Net	$ 45,853			$ 45,853		$ 47,583
Finite-Lived Intangible Assets, Amortization Expense	865		$ 865	1,730	$ 1,730
Affiliate Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Gross	83,044			83,044		83,044
Accumulated Amortization	(37,191)			(37,191)		(35,461)
Net	$ 45,853			$ 45,853		$ 47,583

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Property and Equipment (Schedule of Property, Plant and Equipment) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Jun. 30, 2015
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 68,767	$ 67,748
Less accumulated depreciation and amortization	(52,804)	(48,234)
Property and equipment, net	15,963	19,514
Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	46,992	43,277
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,740	1,723
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	19,644	19,645
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 391	$ 3,103

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Property and Equipment (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense on property and equipment	$ 2,226	$ 3,580	$ 6,040	$ 7,000

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Debt (Narrative) (Details) - USD ($) $ in Thousands		6 Months Ended
		Dec. 31, 2015	Sep. 28, 2015	May. 06, 2014
Debt Instrument [Line Items]
Additional interest Rate when Default		2.00%
Line of Credit Facility, Commitment Fee Percentage		0.30%
Debt instrument, restrictive covenants		The Credit Agreement generally requires MSGN L.P. to comply with a maximum total leverage ratio of 6.00:1.00 from the closing date until September 30, 2016 and a maximum total leverage ratio of 5.50:1.00 from and after October 1, 2016 until maturity, subject, in each case, to upward adjustment during the continuance of certain events. In addition, there is a minimum interest coverage ratio of 2.00:1.00 for the Holdings Entities, MSGN L.P. and the restricted subsidiaries of MSGN L.P.
Long-term Debt, Gross		$ 1,550,000
Deferred Finance Costs, Gross		14,265
Debt outstanding, net of deferred financing costs per ASU 2015-03		$ 1,539,697
Credit Facility - May 6, 2014 [Member]
Debt Instrument [Line Items]
Senior secured revolving credit facility				$ 500,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Senior secured revolving credit facility			$ 250,000
Revolving credit term in years		5 years
Borrowing capacity		$ 250,000
Letters of Credit, maximum capacity			35,000
Letters of credit issued and outstanding under the Revolving Credit Facility		$ 0
Term Loan Facility [Member]
Debt Instrument [Line Items]
Senior secured revolving credit facility			$ 1,550,000
Revolving credit term in years		5 years
Cash distributed to stockholder from cash borrowed in connection with spin off		$ 1,450,000
Year 1		91,250
Year 2		75,000
Year 3		75,000
Year 4		88,125
Year 5		1,220,625
Long-term Debt, Gross		1,550,000
Other Current Assets [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross		0
Deferred Finance Costs, Gross		417
Debt outstanding, net of deferred financing costs per ASU 2015-03		417
Other Noncurrent Assets [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross		0
Deferred Finance Costs, Gross		1,564
Debt outstanding, net of deferred financing costs per ASU 2015-03		1,564
Current portion of long-term debt [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross		91,250
Deferred Finance Costs, Gross		2,586
Debt outstanding, net of deferred financing costs per ASU 2015-03	[1]	88,664
Long-term debt, net of current portion [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross		1,458,750
Deferred Finance Costs, Gross		9,698
Debt outstanding, net of deferred financing costs per ASU 2015-03	[1]	$ 1,449,052
Credit Facility - May 6, 2014 [Member]
Debt Instrument [Line Items]
Revolving credit term in years		5 years
Federal Funds Effective Swap Rate [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate		0.50%
London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Increase (Decrease)		1.00%
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate		0.50%
Minimum [Member] | Eurodollar [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate		1.50%
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate		1.25%
Maximum [Member] | Eurodollar [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate		2.25%
After delivery of Compliance Certificate [Member] | Eurodollar [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Increase (Decrease)		2.00%
After delivery of Compliance Certificate [Member] | Base Rate [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Increase (Decrease)		1.00%

[1] Amount presented in the Total column is on a net basis.

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Commitments and Contingencies Commitments and contingencies (Details)	Dec. 31, 2015 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Contractual Obligation	$ 4,653,820,000
Contractual Obligation, Future Minimum Payments Due, Remainder of Fiscal Year	141,307,000
Contractual Obligation, Due in Second and Third Year	428,484,000
Contractual Obligation, Due in Fourth and Fifth Year	433,144,000
Contractual Obligation, Due after Fifth Year	$ 3,650,885,000

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Fair Value Measurements (Schedule of Fair Value, Assets Measured on Recurring Basis) (Details) - USD ($)	Dec. 31, 2015	Jun. 30, 2015
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets measured at fair value	$ 237,825,000	$ 202,289,000
Long-term Debt, Fair Value	1,526,750
Level I [Member]
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets measured at fair value	237,825,000	202,289,000
Level II [Member]
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Level III [Member]
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Money market accounts [Member]
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets measured at fair value	144,506,000	89,062,000
Money market accounts [Member] | Level I [Member]
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets measured at fair value	144,506,000	89,062,000
Money market accounts [Member] | Level II [Member]
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Money market accounts [Member] | Level III [Member]
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Time deposits [Member]
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets measured at fair value	93,319,000	113,227,000
Time deposits [Member] | Level I [Member]
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets measured at fair value	93,319,000	113,227,000
Time deposits [Member] | Level II [Member]
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Time deposits [Member] | Level III [Member]
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets measured at fair value	$ 0	$ 0

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Pension Plans and Other Postretirement Benefit Plan (Schedule of Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Pension Plans [Member]
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]
Service cost		$ 121	$ 1,738	$ 1,742	$ 3,476
Interest cost		438	1,979	2,563	3,958
Expected return on plan assets		(110)	(916)	(960)	(1,832)
Recognized actuarial loss (gain)	[1]	125	565	501	1,130
Amortization of unrecognized prior service cost (credit)	[1]	0	6	14	12
Net periodic benefit cost		574	3,372	3,860	6,744
Postretirement Plan [Member]
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]
Service cost		18	61	68	122
Interest cost		32	93	123	186
Expected return on plan assets		0	0	0	0
Recognized actuarial loss (gain)	[1]	0	6	0	12
Amortization of unrecognized prior service cost (credit)	[1]	(11)	(35)	(42)	(70)
Net periodic benefit cost		39	125	149	250
Continuing Operations [Member]
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]
Net periodic benefit cost		$ 613	1,488	2,004	2,970
Discontinued Operations [Member]
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]
Net periodic benefit cost			$ 2,009	$ 1,895	$ 4,024

[1] Reflects amounts reclassified from accumulated other comprehensive loss.

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Pension Plans And Other Postretirement Benefit Plan (Narrative) (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Defined Contribution Plan Disclosure [Line Items]
Number of non-contributory qualified defined benefit pension plans sponsored by the company			2
MSG Saving Plans [Member]
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract]
Defined Contribution Plan, Cost Recognized	$ 0	$ 870	$ 986	$ 1,767
MSG Union Plan [Member]
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract]
Defined Contribution Plan, Cost Recognized		112	18	124
Continuing Operations [Member] | MSG Saving Plans [Member]
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract]
Defined Contribution Plan, Cost Recognized	0	287	334	614
Discontinued Operations [Member] | MSG Saving Plans [Member]
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract]
Defined Contribution Plan, Cost Recognized	$ 0	$ 583	$ 652	$ 1,153

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Pension Plans and Other Postretirement Benefit Plan Pension Plans And Other Postretirement Benefit Plan (Non-Contributory Plan) (Details)	6 Months Ended
	Dec. 31, 2015
Pension Plans And Other Postretirement Benefit Plan (Non-Contributory Plan) [Abstract]
Number of non-contributory qualified defined benefit pension plans sponsored by the company	2

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Share-Based Compensation (Share-Based Compensation Expense) (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2015 USD ($) shares	Dec. 31, 2014 USD ($)	Dec. 31, 2015 USD ($) shares	Dec. 31, 2014 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of the original RSU grant value allocated to the Company's RSU awards in connection with the Distribution	30.00%		30.00%
Percentage of the original RSU grant value allocated to the MSG RSU awards in connection with the Distribution	70.00%		70.00%
Stock Option Conversion detail in connection with Distribution / Spin off			In connection with the Distribution, each option to purchase the Company's Class A Common Stock became two options: one option to acquire MSG Class A Common Stock and one option to acquire the Company's Class A Common Stock.
Number shares of RSU awarded and outstanding prior to Distribution to received one share of RSU award from MSG | shares	3		3
Share-based compensation Expense			$ 6,899	$ 8,002
Number of trading days volume weighted average price used to determine the stock option exercise price in connection with the Distribution	10		10
Number shares of common stock and outstanding prior to Distribution to received one share of common stock in connection with spinoff | shares	3		3
Continuing Operations [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation Expense	$ 2,652	$ 5,626	$ 6,899	8,002
Discontinued Operations [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation Expense		$ 1,401	$ 808	$ 2,642

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Share-Based Compensation (Schedule of Share-based Compensation, Stock Options, Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended		12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Jun. 30, 2014	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Options, Oustanding Weighted Average Exercise Price [Roll Forward]
Payments Related to Tax Withholding for Share-based Compensation	$ 11,114	$ 16,416
Options, Exercises in Period, Total Intrinsic Value	$ 4,236
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Oustanding Weighted Average Exercise Price [Roll Forward]
Options, Outstanding, Weighted Average Exercise Price	$ 2.81			$ 12.44
Options, Exercises in Period, Weighted Average Exercise Price	$ 10.07
Options, Outstanding, Weighted Average Remaining Contractual Term	5 months 4 days		7 months 21 days
Options, Outstanding, Intrinsic Value	$ 1,256			$ 10,293
Non-Performance Vesting [Member] | Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options, Outstanding, Number	70			128
Options, Exercises in Period	(58)
Performance Vesting [Member] | Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options, Outstanding, Number	0			17
Options, Exercises in Period	(17)

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Share-Based Compensation (Schedule of Share-based Compensation, Restricted Stock Units Activity) (Details) $ / shares in Units, $ in Thousands	6 Months Ended
	Dec. 31, 2015 USD ($) $ / shares shares	Dec. 31, 2014 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number shares of RSU awarded and outstanding prior to Distribution to received one share of RSU award from MSG	3
Payments Related to Tax Withholding for Share-based Compensation	150,000
Number of trading days volume weighted average price used to determine the stock option exercise price in connection with the Distribution	10
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $	$ 17,123
Number shares of common stock and outstanding prior to Distribution to received one share of common stock in connection with spinoff	3
Payments Related to Tax Withholding for Share-based Compensation | $	$ 11,114	$ 16,416
Restricted Stock Units (RSUs) [Member]
Weighted-Average Fair Value Per Share at Date of Grant - RSUs (in dollars per share):
Unvested award balance (beginning balance) | $ / shares	$ 56.51
Granted | $ / shares	55.34
Vested | $ / shares	37.14
Forfeitures | $ / shares	67.05
Unvested award balance (ending balance) | $ / shares	39.18
EquityInstrumentsOtherThanOptionsCanceledinPeriodGrantdateFairValue | $ / shares	$ 77.99
Restricted Stock Units (RSUs) [Member] | Performance Vesting [Member]
Unvested award (in shares):
Unvested award balance (beginning balance)	98,000
Granted	950,000
Vested	(42,000)
Canceled	(566,000)
Forfeited	(2,000)
Unvested award balance (ending balance)	438,000
Restricted Stock Units (RSUs) [Member] | Non-Performance Vesting [Member]
Unvested award (in shares):
Unvested award balance (beginning balance)	489,000
Granted	270,000
Vested	(244,000)
Canceled	(132,000)
Forfeited	(20,000)
Unvested award balance (ending balance)	363,000

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Stock Repurchase Program (Details) - USD ($) shares in Thousands	6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Equity [Abstract]
Stock Repurchase Program, Authorized Amount	$ 500,000
Treasury Stock, Shares, Acquired	1,336
Treasury Stock, Value, Acquired, Cost Method	$ 100,027,000	$ 1,398,000

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Related Party Transactions (Ownership Percentage) (Details)	Dec. 31, 2015
Related Party Ownership Percentage [Line Items]
Aggregate Voting Power Held By Related Party	69.70%
Common Class A [Member]
Related Party Ownership Percentage [Line Items]
Percentage of Common Stock Owned by Related Party	2.50%
Common Class B [Member]
Related Party Ownership Percentage [Line Items]
Percentage of Common Stock Owned by Related Party	100.00%

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Related Party Transactions (Transactions by Type) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Operating Expenses [Abstract]
Interest income	$ 0		$ 635
Equity in earnings (loss) of equity-method investments	0	$ (30,151)	2,679	$ (32,755)
Discontinued Operations [Member]
Operating Expenses [Abstract]
Revenues		21,646
Operating expenses	137	2,185
Interest Income			635
Interest income		426		875
Equity in earnings (loss) of equity-method investments			33,559	42,445
Equity in earnings (loss) of equity-method investments	(30,151)		2,679	(32,755)
Continuing Operations [Member]
Operating Expenses [Abstract]
Rights Fees	32,800	20,506	65,300	40,352
Related Party Transaction Commissions	5,498	0	5,498	0
Origination, master control and technical services	1,459	1,423	2,876	2,759
Advertising	2,698	1,616	3,875	3,210
Other	2,584	(155)	2,051	(165)
Revenues	$ 41,673	$ 42,129	$ 82,122	$ 82,344

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Income Taxes (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Effective Income Tax Rate Reconciliation, Deferred tax valuation from disposal of business				$ 3,989,000
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount	$ 313,000	$ 126,000	$ 151,000	171,000
Change in income tax payable and deferred income taxes distributed to MSG			152,000
Income Tax Expense (Benefit)	29,709,000	32,962,000	29,305,000	129,374,000
Effective Tax Rate Reconciliation, Change in deferred tax valuation due to distribution of assets to stockholders		8,122,000	16,941,000
Effective Income Tax Rate Reconciliation, Deduction, Qualified Production Activity, Amount	1,715,000	4,373,000	2,764,000	5,854,000
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount				48,000
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount	4,933,000	$ 4,561,000	7,731,000	$ 22,433,000
EffectiveIncomeTaxRateReconciliationDeferredtaxvaluationforStateTaxRates	$ 4,489,000		$ 4,489,000

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Concentration of Risk (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Jun. 30, 2015
Concentration Risk [Line Items]
Customer Concentration In Prepaid Expenses	$ 3,000		$ 3,000		$ 1,000
Customer Concentration In Other Current Assets	1,000		1,000		2,000
Customer Concentration In Other Assets	42,000		42,000		41,000
Customer Concentration	46,000		46,000		$ 44,000
Sales Revenue, Services, Net [Member] | Related Party [Member]
Concentration Risk [Line Items]
Revenue from Related Parties	$ 41,669	$ 42,098	$ 81,447	$ 82,297
Concentration Risk, Percentage	25.00%	25.00%	26.00%	25.00%
Customer A [Member] | Sales Revenue, Services, Net [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	22.00%	21.00%	23.00%	22.00%
Customer A [Member] | Sales Revenue, Services, Net [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration at period end, percentage	43.00%		43.00%		29.00%
Customer B [Member] | Sales Revenue, Services, Net [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	19.00%	19.00%	20.00%	20.00%
Customer B [Member] | Sales Revenue, Services, Net [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration at period end, percentage	25.00%		25.00%		25.00%
Customer C [Member] | Sales Revenue, Services, Net [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	10.00%	11.00%	11.00%	11.00%
Customer C [Member] | Sales Revenue, Services, Net [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration at period end, percentage	17.00%		17.00%		17.00%
Customer D [Member] | Sales Revenue, Services, Net [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration at period end, percentage	11.00%		11.00%		11.00%