v3.26.1
Leases
 12 Months Ended
Jun. 30, 2026
Leases [Abstract]  
Leases Leases
The following table summarizes the ROU assets and lease liabilities recorded in the consolidated balance sheets as of June 30, 2026 and 2025:
As of June 30,
20262025
ROU assets$448,892 $484,544 
Lease liabilities:
Operating leases, current44,461 35,100 
Operating leases, non-current560,101 566,484 
Total lease liabilities$604,562 $601,584 
The following table summarizes the activity related to lease costs recorded in the consolidated statements of operations for Fiscal Years 2026, 2025 and 2024:
Classification in the Consolidated Statements of OperationsYears Ended June 30,
202620252024
Operating lease cost
Direct operating expenses
$21,291 $21,291 $21,071 
Operating lease costSelling, general and administrative expenses34,290 32,112 26,023 
Variable lease cost
Direct operating expenses
2,382 1,840 716 
Variable lease costSelling, general and administrative expenses403 — — 
Total lease cost$58,366 $55,243 $47,810 
During Fiscal Year 2024, the Company took possession of newly renovated space in its New York office. The Company was not involved in the design or construction of the new space for purposes of the Company’s build out prior to obtaining possession. Upon obtaining possession of the space, the Company recognized an additional lease obligation of $206,410 and a ROU lease asset of $198,294, net of tenant improvement incentives received on the possession date. In Fiscal Year 2025, the Company recognized a right-of-use lease asset of $116,963 and an additional lease obligation of $115,335 as the Company took possession of additional space in its New York office.
The Company recorded impairment of long-lived assets of $13,782 and $11,202 in Fiscal Years 2026 and 2025, respectively, due to impairment losses recognized on the Company’s right-of-use lease assets in its New York corporate office.
While lease payments under the lease agreement are recognized as a lease expense on a straight-line basis over the lease term, the Company began paying full rent in the second half of Fiscal Year 2026 due to certain tenant incentives included in the arrangement. Base rent payments will increase every five years beginning in Fiscal Year 2031 in accordance with the terms of the lease.
Supplemental cash flow information related to operating leases is as follows:
Years Ended June 30,
202620252024
Cash paid for amounts included in the measurement of operating lease liabilities$40,089 $37,829 $37,908 
Lease assets obtained in exchange for new lease obligations$— $116,957 $198,294 
Maturities of operating lease liabilities as of June 30, 2026 were as follows:
As of June 30, 2026
Fiscal year ending June 30, 2027$47,500
Fiscal year ending June 30, 202863,173
Fiscal year ending June 30, 202955,987
Fiscal year ending June 30, 203062,777
Fiscal year ending June 30, 203164,226
Thereafter779,602
Total lease payments1,073,265
Less: imputed interest(468,703)
Total lease liabilities$604,562
The weighted average remaining lease term and weighted average discount rate for our operating leases are as follows:
As of June 30,
20262025
Weighted average remaining lease term (in years)16.2517.08
Weighted average discount rate7.11 %7.11 %
As of June 30, 2026, the Company’s existing operating leases, which are recorded in the consolidated financial statements, had remaining lease terms ranging from 0.3 years to 19.6 years.
Lessor Arrangements
The Company is party to Arena License Agreements with MSG Sports that, among other things, require the Knicks and the Rangers to play their home games at The Garden in exchange for fixed annual license fees scheduled to be paid monthly over the term of the agreements. The Company accounts for these license fees as operating lease revenue given that the Company provides MSG Sports with the right to direct the use of and obtain substantially all of the economic benefit from The Garden during Knicks and Rangers home games. Operating lease revenue is recognized on a straight-line basis over the lease term, adjusted pursuant to the terms of the Arena License Agreements. In the case of the Arena License Agreements, the lease terms relate to non-consecutive periods of use when MSG Sports uses The Garden for their professional sports teams’ home games, and operating lease revenue is therefore recognized ratably as events occur.
The Arena License Agreements provide that license fees are not required to be paid by MSG Sports during periods when The Garden is unavailable for use due to a force majeure event.
The following table summarizes the Company’s revenues recognized under Arena License Agreements and revenues from third party and related party lease and sublease arrangements for Fiscal Years 2026, 2025 and 2024.
Years Ended June 30,
202620252024
Arena License Agreements$68,068 $68,068 $68,068 
Third party and related party lease and sublease arrangements18,178 11,866 5,208 
Total Arena license fees and other leasing revenue$86,246 $79,934 $73,276 
The maturities of operating lease cash flows to be received on an undiscounted basis for the Arena license fees and other leasing revenues were as follows:
As of June 30, 2026
Fiscal year ending June 30, 2027$62,615 
Fiscal year ending June 30, 202864,213 
Fiscal year ending June 30, 202965,673 
Fiscal year ending June 30, 203067,161 
Fiscal year ending June 30, 203169,538 
Thereafter1,960,923 
Total future minimum receipts$2,290,123
Leases Leases
The following table summarizes the ROU assets and lease liabilities recorded in the consolidated balance sheets as of June 30, 2026 and 2025:
As of June 30,
20262025
ROU assets$448,892 $484,544 
Lease liabilities:
Operating leases, current44,461 35,100 
Operating leases, non-current560,101 566,484 
Total lease liabilities$604,562 $601,584 
The following table summarizes the activity related to lease costs recorded in the consolidated statements of operations for Fiscal Years 2026, 2025 and 2024:
Classification in the Consolidated Statements of OperationsYears Ended June 30,
202620252024
Operating lease cost
Direct operating expenses
$21,291 $21,291 $21,071 
Operating lease costSelling, general and administrative expenses34,290 32,112 26,023 
Variable lease cost
Direct operating expenses
2,382 1,840 716 
Variable lease costSelling, general and administrative expenses403 — — 
Total lease cost$58,366 $55,243 $47,810 
During Fiscal Year 2024, the Company took possession of newly renovated space in its New York office. The Company was not involved in the design or construction of the new space for purposes of the Company’s build out prior to obtaining possession. Upon obtaining possession of the space, the Company recognized an additional lease obligation of $206,410 and a ROU lease asset of $198,294, net of tenant improvement incentives received on the possession date. In Fiscal Year 2025, the Company recognized a right-of-use lease asset of $116,963 and an additional lease obligation of $115,335 as the Company took possession of additional space in its New York office.
The Company recorded impairment of long-lived assets of $13,782 and $11,202 in Fiscal Years 2026 and 2025, respectively, due to impairment losses recognized on the Company’s right-of-use lease assets in its New York corporate office.
While lease payments under the lease agreement are recognized as a lease expense on a straight-line basis over the lease term, the Company began paying full rent in the second half of Fiscal Year 2026 due to certain tenant incentives included in the arrangement. Base rent payments will increase every five years beginning in Fiscal Year 2031 in accordance with the terms of the lease.
Supplemental cash flow information related to operating leases is as follows:
Years Ended June 30,
202620252024
Cash paid for amounts included in the measurement of operating lease liabilities$40,089 $37,829 $37,908 
Lease assets obtained in exchange for new lease obligations$— $116,957 $198,294 
Maturities of operating lease liabilities as of June 30, 2026 were as follows:
As of June 30, 2026
Fiscal year ending June 30, 2027$47,500
Fiscal year ending June 30, 202863,173
Fiscal year ending June 30, 202955,987
Fiscal year ending June 30, 203062,777
Fiscal year ending June 30, 203164,226
Thereafter779,602
Total lease payments1,073,265
Less: imputed interest(468,703)
Total lease liabilities$604,562
The weighted average remaining lease term and weighted average discount rate for our operating leases are as follows:
As of June 30,
20262025
Weighted average remaining lease term (in years)16.2517.08
Weighted average discount rate7.11 %7.11 %
As of June 30, 2026, the Company’s existing operating leases, which are recorded in the consolidated financial statements, had remaining lease terms ranging from 0.3 years to 19.6 years.
Lessor Arrangements
The Company is party to Arena License Agreements with MSG Sports that, among other things, require the Knicks and the Rangers to play their home games at The Garden in exchange for fixed annual license fees scheduled to be paid monthly over the term of the agreements. The Company accounts for these license fees as operating lease revenue given that the Company provides MSG Sports with the right to direct the use of and obtain substantially all of the economic benefit from The Garden during Knicks and Rangers home games. Operating lease revenue is recognized on a straight-line basis over the lease term, adjusted pursuant to the terms of the Arena License Agreements. In the case of the Arena License Agreements, the lease terms relate to non-consecutive periods of use when MSG Sports uses The Garden for their professional sports teams’ home games, and operating lease revenue is therefore recognized ratably as events occur.
The Arena License Agreements provide that license fees are not required to be paid by MSG Sports during periods when The Garden is unavailable for use due to a force majeure event.
The following table summarizes the Company’s revenues recognized under Arena License Agreements and revenues from third party and related party lease and sublease arrangements for Fiscal Years 2026, 2025 and 2024.
Years Ended June 30,
202620252024
Arena License Agreements$68,068 $68,068 $68,068 
Third party and related party lease and sublease arrangements18,178 11,866 5,208 
Total Arena license fees and other leasing revenue$86,246 $79,934 $73,276 
The maturities of operating lease cash flows to be received on an undiscounted basis for the Arena license fees and other leasing revenues were as follows:
As of June 30, 2026
Fiscal year ending June 30, 2027$62,615 
Fiscal year ending June 30, 202864,213 
Fiscal year ending June 30, 202965,673 
Fiscal year ending June 30, 203067,161 
Fiscal year ending June 30, 203169,538 
Thereafter1,960,923 
Total future minimum receipts$2,290,123