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Revenue Recognition
3 Months Ended
Sep. 30, 2024
Revenue Recognition [Abstract]  
Revenue Recognition Revenue Recognition
Contracts with Customers
See Note 2. Summary of Significant Accounting Policies and Note 4. Revenue Recognition, to the Audited Consolidated Annual Financial Statements included in the 2024 Form 10-K, for more information regarding the details of the Company’s revenue recognition policies. All revenue recognized in the condensed consolidated statements of operations is considered to be revenue from contracts with customers in accordance with Accounting Standards Codification (“ASC”) Topic 606, Revenue From Contracts with Customers, except for revenues from subleases that are accounted for in accordance with ASC Topic 842, Leases.
Disaggregation of Revenue
The following tables disaggregate the Company’s revenue by major source and reportable segment based upon the timing of transfer of goods or services to the customer for the three months ended September 30, 2024 and 2023:
Three Months Ended
September 30, 2024
Sphere
MSG Networks
Total
Event-related (a)
$112,346 $— $112,346 
Sponsorship, signage, ExosphereTM advertising, and suite license revenues (b)
8,476 1,314 9,790 
Media related, primarily from affiliation agreements (b)
— 99,382 99,382 
Other5,482 145 5,627 
Total revenues from contracts with customers126,304 100,841 227,145 
Revenues from subleases768 — 768 
Total revenues $127,072 $100,841 $227,913 
Three Months Ended
September 30, 2023
Sphere
MSG Networks
Total
Event-related (a)
$4,059 $— $4,059 
Sponsorship, signage, Exosphere advertising, and suite license revenues (b)
2,560 218 2,778 
Media related, primarily from affiliation agreements (b)
— 109,795 109,795 
Other431 215 646 
Total revenues from contracts with customers7,050 110,228 117,278 
Revenues from subleases729 — 729 
Total revenues $7,779 $110,228 $118,007 
_________________
(a)     Event-related revenues consist of (i) ticket sales and other revenue directly related to the exhibition of the Sphere Experience, (ii) ticket sales and other ticket-related revenues to other events at our venue, (iii) venue license fees from third-party promoters, and (iv) food, beverage and merchandise sales. Event-related revenues are recognized at a point in time. As such, these revenues have been included in the same category in the tables above.
(b)     See Note 2. Summary of Significant Accounting Policies, Revenue Recognition, and Note 4. Revenue Recognition, to the Audited Consolidated Annual Financial Statements included in the 2024 Form 10-K, for further details on the pattern of recognition of sponsorship, signage, Exosphere advertising, suite licenses, and media related revenue.
In addition to the disaggregation of the Company’s revenue by major source based upon the timing of transfer of goods or services to the customer disclosed above, the following tables disaggregate the Company’s consolidated revenues by type of goods or services in accordance with the required entity-wide disclosure requirements of ASC Subtopic 280-10-50-38 to 40 and the disaggregation of revenue required disclosures in accordance with ASC Subtopic 606-10-50-5 for the three months ended September 30, 2024 and 2023:
Three Months Ended
September 30, 2024
Sphere
MSG Networks
Total
Ticketing and venue license fee revenues (a)
$92,101 $— $92,101 
Sponsorship, signage, Exosphere advertising, and suite license revenues
13,258 — 13,258 
Food, beverage, and merchandise revenues
16,794 — 16,794 
Media networks revenues (b)
— 100,841 100,841 
Other
4,151 — 4,151 
Total revenues from contracts with customers126,304 100,841 227,145 
Revenues from subleases768 — 768 
Total revenues $127,072 $100,841 $227,913 
Three Months Ended
September 30, 2023
Sphere
MSG Networks
Total
Ticketing and venue license fee revenues (a)
$2,807 $— $2,807 
Sponsorship, signage, Exosphere advertising, and suite license revenues
2,900 — 2,900 
Food, beverage, and merchandise revenues
1,343 — 1,343 
Media networks revenues (b)
— 110,228 110,228 
Total revenues from contracts with customers7,050 110,228 117,278 
Revenues from subleases729 — 729 
Total revenues $7,779 $110,228 $118,007 
_________________
(a)    Amounts include ticket sales, other ticket-related revenue, and venue license fees from the Company’s events such as (i) concerts, (ii) The Sphere Experience and (iii) other live entertainment and sporting events.
(b)    Primarily consists of affiliation fees from cable, satellite, fiber-optic and other platforms that distribute MSG Networks’ programming and, to a lesser extent, advertising revenues through the sale of commercial time and other advertising inventory during MSG Networks programming.
Contract Balances
The following table provides information about contract balances from the Company’s contracts with customers as of September 30, 2024 and June 30, 2024:
As of
September 30,June 30,
20242024
Receivables from contracts with customers, net (a)
$114,645 $228,230 
Contract assets, current (b)
1,500 1,500 
Contract assets, non-current (b)
1,247 907 
Deferred revenue, including non-current portion (c)
99,659 97,151 
_________________
(a)    Receivables from contracts with customers, net, which are reported in Accounts receivable, net in the Company’s condensed consolidated balance sheets, represent the Company’s unconditional rights to consideration under its contracts with customers.
(b)     Contract assets current, which are reported as Prepaid expenses and other current assets in the Company’s condensed consolidated balance sheets, primarily relate to the Company’s rights to consideration for goods or services transferred to customers, for which the Company does not have an unconditional right to bill as of the reporting date. Contract assets are transferred to accounts receivable once the Company’s right to consideration becomes unconditional.
(c)    Revenue recognized for the three months ended September 30, 2024 relating to the deferred revenue balance as of June 30, 2024 was $33,705.

Transaction Price Allocated to the Remaining Performance Obligations
As of September 30, 2024, the Company’s remaining performance obligations were $134,332, of which 74% is expected to be recognized over the next two years and 26% of the balance is expected to be recognized thereafter. This primarily relates to performance obligations under sponsorship agreements that have original expected durations longer than one year and for which the respective consideration is not variable. In developing the estimated revenue, the Company applies the allowable practical expedient and does not disclose information about remaining performance obligations that have original expected durations of one year or less.