What changed in this filing

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Item 1. Business

2020-08-31 compared with 2019-08-20 · 173 added, 438 removed, 43 unchanged (93% of the section changed)

The Madison Square Garden Company is a Delaware corporation with our principal executive offices at Two Pennsylvania Plaza, New York, NY, 10121.

Unless the context otherwise requires, all references to “we,” “us,” “our,” “Madison Square Garden,” “MSG” or the “Company” refer collectively to The Madison Square Garden Company, a holding company, and its direct and indirect subsidiaries.

We conduct substantially all of our business activities discussed in this Annual Report on Form 10-K through MSG Sports & Entertainment, LLC and its direct and indirect subsidiaries.

Our telephone number is 212-465-6000, our website is http://www.themadisonsquaregardencompany.com and the investor relations section of our web site is http://investor.msg.com.

We make available, free of charge through the investor relations section of our web site, annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, as well as proxy statements, as soon as reasonably practicable after we electronically file such material with, or furnish it to, the Securities and Exchange Commission (“SEC”).

References to our web site in this report are provided as a convenience and the information contained on, or available through, our web site is not part of this or any other report we file with or furnish to the SEC.

Madison Square Garden Sports Corp., formerly The Madison Square Garden Company, is a Delaware corporation with our principal executive offices at Two Pennsylvania Plaza, New York, NY, 10121.

Unless the context otherwise requires, all references to “we,” “us,” “our,” “MSG Sports” or the “Company” refer collectively to Madison Square Garden Sports Corp., a holding company, and its direct and indirect subsidiaries.

We conduct substantially all of our business activities discussed in this Annual Report on Form 10-K through MSG Sports, LLC and its direct and indirect subsidiaries.

Our telephone number is 212-465-1111, our website is http://www.msgsports.com and the investor relations section of our website is http://investor.msgsports.com.

Through the investor relations section of our website, we make available, free of charge, the Company’s annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and proxy statements, as well as any amendments to those reports and other statements filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934.

These materials become available as soon as reasonably practicable after we electronically file such materials with, or furnish them to, the Securities and Exchange Commission (“SEC”).

References to our website in this report are provided as a convenience and the information contained on, or available through, our website is not part of this or any other report we file with or furnish to the SEC.

The Company was incorporated on March 4, 2015 as an indirect, wholly-owned subsidiary of MSG Networks Inc.

(“ MSG Networks ”), formerly known as The Madison Square Garden Company.

All the outstanding common stock of the Company was distributed to MSG Networks shareholders (the “ 2015 Distribution ”) on September 30, 2015 (the “ 2015 Distribution Date ”).

Potential Spin-off Transaction

On June 27, 2018, the Company announced that its board of directors (“ Board ”) has authorized the Company’s management to explore a possible spin-off that would create a separately-traded public company comprised of its sports businesses, including the New York Knicks and New York Rangers professional sports franchises (“ Sports Spinco ”).

We refer to the potential spin-off as the “ Sports Distribution .” On October 4, 2018, in connection with the Sports Distribution, a subsidiary of the Company submitted an initial Registration Statement on Form 10 with the U.S.

Securities and Exchange Commission (which has been amended).

If the Company proceeds with the Sports Distribution , it would be structured as a tax-free transaction to all MSG shareholders.

Upon completion of the contemplated separation, record holders of MSG common stock would receive a pro-rata distribution, expected to be equivalent, in aggregate, to an approximately two-thirds economic interest in Sports Spinco .

The remaining common stock, expected to be equivalent to an approximately one-third economic interest in Sports Spinco , would be retained by the Company.

There can be no assurance that the proposed transaction will be completed in the manner described above, or at all.

The Sports Distribution is expected to be completed in the first quarter of calendar year 2020.

Completion of the transaction is subject to various conditions, including certain league approvals, a private letter ruling from the Internal Revenue Service (the " IRS "), receipt of a tax opinion from counsel and final Board approval.

The Madison Square Garden Company is a leader in live experiences comprised of celebrated venues, legendary sports teams, exclusive entertainment productions, and other entertainment assets which include dining and nightlife venues and music festivals.

Utilizing our powerful assets, brands and live event expertise, the Company delivers premium and unique experiences that set the standard for excellence and innovation while forging deep connections with diverse and passionate audiences.

We manage our business through the following two operating segments:

This segment includes the Company’s professional sports franchises:

the New York Knicks (the “Knicks”) of the National Basketball Association (the “NBA”), the New York Rangers (the “Rangers”) of the National Hockey League (the “NHL”), the Hartford Wolf Pack of the American Hockey League (the “AHL”) and the Westchester Knicks of the NBA G League (the “ NBAGL ”).

Our professional sports franchises are collectively referred to herein as “our sports teams.” The MSG Sports segment also includes Counter Logic Gaming (“ CLG ”) , a premier North American esports organization, and Knicks Gaming, MSG’s franchise that competes in the NBA 2K League.

CLG and Knicks Gaming are collectively referred to herein as “our esports teams,” and, together with our sports teams, “our teams.” In addition, the MSG Sports segment promotes, produces and/or presents a broad array of other live sporting events, including professional boxing, college basketball, college hockey, professional bull riding, mixed martial arts, esports, and college wrestling .

MSG Entertainment:

This segment features the Company’s live entertainment events — including concerts, and other live events such as family shows, performing arts and special events — which we present or host in our diverse collection of venues.

Those venues are:

Madison Square Garden (“ The Garden ”), Hulu Theater at Madison Square Garden , Radio City Music Hall, the Beacon Theatre, the Forum, and The Chicago Theatre.

Our MSG Entertainment segment also includes our original production — Christmas Spectacular Starring the Radio City Rockettes (“ Christmas Spectacular ”) — as well as Boston Calling Events, LLC (“ BCE ”), the entertainment production company that owns and operates the Boston Calling Music Festival, and TAO Group Holdings LLC (“ TAO Group ”), a hospitality group with globally -recognized entertainment dining and nightlife brands.

(“ MSG Networks ”).

All of the outstanding common stock of the Company was distributed to MSG Networks shareholders (the “ MSGS Distribution ”) on September 30, 2015 (the “ MSGS Distribution Date ”).

On April 17, 2020 (the “ MSGE Distribution Date ”), the Company distributed all of the outstanding common stock of Madison Square Garden Entertainment Corp.

(formerly MSG Entertainment Spinco, Inc., and referred to herein as “ MSG Entertainment ”) to its stockholders (the “ MSGE Distribution ”).

MSG Entertainment owns, directly or indirectly, the entertainment businesses previously owned and operated by the Company through its MSG Entertainment business segment and the sports booking business previously owned and operated by the Company through its MSG Sports business segment.

In the MSGE Distribution , (a) each holder of the Company’s Class A common stock received one share of MSG Entertainment Class A common stock, par value $0.01 per share, for every share of the Company’s Class A common stock held of record as of the close of business, New York City time, on April 13, 2020 (the “Record Date”), and (b) each holder of the Company’s Class B common stock received one share of MSG Entertainment Class B common stock, par value $0.01 per share, for every share of the Registrant’s Class B common stock held of record as of the close of business, New York City time, on the Record Date.

The Company owns and operates a portfolio of assets featuring some of the most recognized teams in all of sports, including the New York Knickerbockers (the “Knicks”) of the National Basketball Association (the “NBA”) and the New York Rangers (the “Rangers”) of the National Hockey League (the “NHL”).

Both the Knicks and the Rangers play their home games in Madison Square Garden Arena (“T he Garden ”), also known as The World’s Most Famous Arena.

The Company’s other professional franchises include two development league teams — the Hartford Wolf Pack of the American Hockey League (the “AHL”) and the Westchester Knicks of the NBA G League (the “ NBAGL ”).

In addition, the Company owns Knicks Gaming, an esports franchise that competes in the NBA 2K League, as well as a controlling interest in Counter Logic Gaming (“ CLG ”) , a North American esports organization .

The Company also operates two professional sports team performance centers — the Madison Square Garden Training Center in Greenburgh, NY and the CLG Performance Center in Los Angeles, CA.

Our Strengths

Ownership of legendary sports franchises;

Iconic venues in top live entertainment markets;

Marquee entertainment brands and content, including the Christmas Spectacular and the Radio City Rockettes (“Rockettes”);

Powerful presence in the New York City metropolitan area with established core assets and expertise for strategic expansion;

Strong industry relationships that create opportunities for new content and brand extensions;

Deep connections with loyal and passionate fan bases that span a wide demographic mix;

First-class experience in managing venues, bookings, marketing, sales and hospitality in multiple markets;

Ability to forge strategic partnerships that utilize the Company’s assets, core competencies and scale, while allowing the Company to benefit from growth in those businesses;

Established history of successfully planning and executing comprehensive venue design and construction projects;

Extensive range of proprietary marketing assets, including a customer database that allows us to drive engagement with our brands;

Strong and seasoned management team.

The Madison Square Garden Company pursues opportunities that strengthen our portfolio of live experiences and capitalize on our iconic venues, popular sports franchises and exclusive entertainment content, as well as our expertise in venue management, bookings, marketing, sales and hospitality.

We believe the Company’s unique assets and capabilities, coupled with our deep relationships in the sports and entertainment industries and our strong connection with our diverse and passionate audiences, are what set the Company apart.

We continue to look for ways to improve our core operations, while we explore new opportunities to grow and innovate.

Specific initiatives we are focused on include:

Iconic sports franchises with renowned brands;

Enduring and meaningful presence in the New York metropolitan area, one of the nation’s largest media markets;

Deep connections with large and passionate fan bases that span a wide demographic mix;

Multi-year sponsorship and suite agreements through a strategic partnership with MSG Entertainment ;

Long-term local media rights agreements with MSG Networks;

National media rights agreements through the NBA and NHL;

Long-term arena license agreements with MSG Entertainment under which the Knicks and the Rangers play their home games at The Garden;

World-class organization with expertise in team operations, event presentation and ticketing;

Seasoned management team and committed ownership.

Our strategy is to leverage the strength and popularity of our professional sports franchises and our unique position in one of the nation’s largest media markets to grow our business and increase the long-term value of our sports assets.

Key components of our strategy include:

Developing championship-caliber teams.

The core goal of our sports strategy is to develop teams that consistently compete for championships in their leagues and support and drive revenue streams across the Company.

We continue to explore new ways to increase engagement and revenue opportunities across the teams’ broad consumer and corporate customer bases.

Monetizing our exclusive sports content.

The Company has media rights agreements with MSG Networks that provide a significant recurring and growing revenue stream to the Company, subject to the terms of such agreements.

In addition, these agreements and our relationship with MSG Networks provide our fans with the ability to watch locally televised home and away games of the Knicks and Rangers, as well as other programming related to our teams, on MSG Networks’ award-winning regional sports networks.

Utilizing our integrated approach to marketing and sales.

The Company possesses powerful sports and entertainment assets that can create significant value for our business.

Our integrated approach to marketing partnerships allows us to use and sell our broad array of assets together in order to maximize their collective value, both for the Company and for our marketing partners.

Our ability to offer compelling, broad-based marketing platforms, which we believe are unparalleled in sports and entertainment, enables us to attract world-class partners, such as our “Marquee” marketing partner, JPMorgan Chase, and our “Signature” marketing partners, which include Anheuser-Busch, Charter Communications, Delta Air Lines, DraftKings, Kia, Lexus, PepsiCo, SAP and Squarespace.

We continue to forge deep direct-to-consumer relationships with customers and fans, with a focus on understanding how consumers interact with every aspect of the Company.

A key component of this strategy is our large and growing proprietary customer database, which drives revenue and engagement across segments, benefiting the Company through ticket sales, merchandise sales and sponsorship activation.

This database provides us with an opportunity to cross-promote our products and services, introducing customers to our wide range of assets and brands.

Utilizing a unique strategy for our performance venues.

The Company has a collection of performance venues through which we deliver high-quality live sports and entertainment.

In addition to our New York venues:

The Garden , Hulu Theater at Madison Square Garden , Radio City Music Hall and the Beacon Theatre, our portfolio includes:

the Forum in Inglewood, CA and The Chicago Theatre.

These venues, along with our venue management capabilities, effective bookings strategy and proven expertise in sponsorships, marketing, ticketing and hospitality, have positioned the Company as an industry leader in live entertainment.

We intend to leverage our unique assets, expertise and approach to drive growth and stockholder value, and to ensure we continue to create unmatched experiences for the benefit of all our stakeholders.

Maximizing the live entertainment experience for our customers.

We use our first-class operations, coupled with new innovations and our ability to attract top talent, to deliver unforgettable experiences for our customers — whether they are first-time visitors, repeat customers, season ticket holders, or suite holders — ensuring they return to our venues.

We have a track record of designing world-class facilities that exceed our customers’ expectations.

This includes our renovations of Radio City Music Hall, the Beacon Theatre, The Garden and the Forum to deliver top-quality amenities such as state-of-the-art lighting, sound and staging, a full suite of hospitality offerings and enhanced premium products.

In addition to better onsite amenities, we continue to explore new ways to utilize technology to improve the customer experience and create communities around our live events.

From the way our customers buy their food and beverage;

to how we market and process their tickets;

to the content we provide them to enhance their sports and entertainment experience, we strive to give our customers the best in-venue experience in the industry.

Leveraging our live entertainment expertise to increase productivity across our performance venues.

Part of what drives our success is our “artist first” approach.

This includes our renovation of the Forum, which set a new bar for the artist experience by delivering superior acoustics and an intimate feel, along with amenities such as nine star-caliber dressing rooms and dedicated areas for production and touring crews.

This talent-friendly environment, coupled with more date availability and our top-tier service, is not only attracting artists to our West Coast venue, but also bringing them back for repeat performances.

We will continue to use our “artist first” approach to attract the industry’s top talent with the goal of increasing utilization across all our venues through more multi-night and multi-market concerts and other events, including more recurring high-profile shows that help expand our base of events.

Examples of this strategy include our residencies, which feature legendary performers playing our venues each month, and have included Billy Joel at The Garden and Jerry Seinfeld at the Beacon Theatre.

Selectively expanding our performance venues in key music and entertainment markets.

We believe our proven ability to deliver entertainment-focused venues, coupled with our unique capabilities, technologies and “artist first” approach, can deliver a differentiated experience for artists, fans and partners.

In May 2016, the Company announced plans to build a state-of-the-art new entertainment venue in Las Vegas, one of the world’s most important entertainment destinations.

In February 2018, we further unveiled our vision for MSG Sphere , which we believe will change entertainment by pioneering the next generation of immersive experiences.

The Company broke ground in Las Vegas in September 2018 on its first MSG Sphere venue, which is currently under construction, with the goal to open the venue in calendar year 2021 .

In February 2018, we also announced the purchase of land in Stratford, London, which we expect — once we have received all necessary approvals and have further advanced our design for the venue — will become home to the second MSG Sphere.

MSG Sphere venues will utilize advanced, cutting-edge technologies to create an entirely new platform that is expected to redefine how immersion and storytelling come together in entertainment experiences.

Because of the transformative nature of these venues, we believe there will be other markets — both domestic and international — where MSG Sphere can be successful.

The design of MSG Sphere will be flexible to accommodate a wide range of sizes and capacities — from large-scale to smaller and more intimate — based on the needs of the individual market.

Controlling and booking a network of world-class venues provides the Company with a number of avenues for potential growth, including driving increased bookings and greater marketing and sponsorship opportunities.

As we explore selectively extending the MSG Sphere network, we will be open to multiple types of transaction structures, including owned, operated, and joint ventures.

As we work with various companies to develop the technologies needed for MSG Sphere venues, we are focused on obtaining appropriate strategic rights with respect to intellectual property.

Expanding our entertainment dining and nightlife venues.

The Company owns a controlling interest in TAO Group — a leader in the hospitality industry.

TAO Group currently operates 29 entertainment dining and nightlife venues in New York City, Las Vegas, Los Angeles, Chicago, Singapore and Sydney, Australia with globally -recognized brands that include:

TAO, Marquee, Lavo, Avenue, Beauty & Essex and Vandal.

TAO Group is actively developing opportunities in select markets — both domestically and internationally — to expand.

Over the past year, TAO Group opened TAO Chicago, along with new entertainment dining and nightlife venues as part of Moxy Chelsea hotel in New York City.

TAO Group also debuted three new venues in Singapore — Marquee, Avenue, and KOMA.

Growing our portfolio of proprietary content.

We continue to explore the creation of proprietary content and attractions that enable us to benefit from being both content creator and venue operator.

This includes opportunities to develop theatrical productions for our existing and planned venues.

For our planned MSG Sphere venues, we are developing a set of tools that will allow both MSG and third parties to create content for the platform, making content creation an intuitive experience — whether someone is adapting existing content or developing original creations that maximize the potential of the venues’ technologies.

We expect to use these tools to create our own catalogue of content and original productions, establishing a library of unique and compelling material that can be used across MSG Sphere venues.

Exploring adjacencies that strengthen our business.

As part of our commitment to creating unmatched experiences, we explore adjacencies that strengthen our position in sports and entertainment.

Potential opportunities include new types of events and festivals, and new opportunities in hospitality, clubs, and food and beverage.

Examples over the last several years include the Company’s purchase of a controlling interest in BCE , the entertainment production company known for creating and operating New England’s premier music festival — the Boston Calling Music Festival;

TAO Group , a hospitality group with globally -recognized entertainment dining and nightlife brands;

and CLG , a premier North American esports organization.

Continuing to explore external strategic opportunities .

We continue to seek strategic opportunities to add compelling assets and brands that resonate with our customers and partners, fit with our core competencies and allow new opportunities for growth across the Company.

One of the ways we try to capitalize on our unique combination of dynamic assets, established industry relationships and deep customer connections is through strategic partnerships that bring together the expertise and capabilities of each partner, and enable us to team with recognized leaders in their fields and benefit from growth in those businesses.

Our Company is synonymous with some of the greatest sporting events in history.

Today that tradition continues with our commitment to delivering a broad array of world-class sporting events that create lasting and indelible memories for sports fans.

Our MSG Sports segment includes some of the world’s most recognized sports franchises, as well as a diverse selection of other live sporting events, that the Company promotes, produces and/or presents, primarily at The Garden , Hulu Theater at Madison Square Garden and the Forum.

Our core goal is to develop and maintain teams that consistently compete for championships.

Competitive teams help support and drive revenue streams across the Company during the regular season and, when our teams qualify for the postseason, the Company benefits from incremental home playoff games.

The ownership and operation of NBA and NHL development teams — the Westchester Knicks and the Hartford Wolf Pack — as well as the operation of our two state-of-the-art performance centers, are part of our strategy to develop championship-caliber teams.

Employ a ticketing policy that gives the Company a direct relationship with a broader fanbase.

Our large and loyal fan bases have placed us among the league leaders in ticket sales receipts as our teams consistently play to at-or-near capacity crowds at The Garden.

For the 2016-17 Knicks and Rangers seasons, we introduced a new ticketing policy that significantly reduced our reliance on third party brokers.

Through this ticketing policy, we decreased the number of full season tickets sold and increased the number of partial plans and individual and group tickets sold.

This shift in our ticket mix delivered a positive impact on revenue and provided fans with more opportunities to purchase tickets to home games giving us a direct relationship with a broader fanbase.

In addition, this ticketing policy provided us with more inventory that we could dynamically price to better align with fan demand.

We have continued to utilize this ticketing approach, and plan to build on it further in the seasons ahead by thoughtfully increasing the number of partial plans and individual and group tickets we sell.

Maximize the value of our exclusive live sports content.

With today’s rapidly evolving media landscape, live sports telecasts have become increasingly valuable to distributors and advertisers.

In October 2015, the Knicks and Rangers entered into 20-year local media rights agreements with MSG Networks, creating a significant recurring and growing revenue stream for the Company.

These agreements provide MSG Networks with exclusive local linear and digital rights to home and away games of the Knicks and Rangers, as well as other team-related programming.

MSG Networks makes this content available to our fans on its regional sports networks, MSG Network and MSG+, and through its live streaming and on-demand platform, MSG GO.

In addition, our Company also receives a pro-rata share of fees related to the NBA’s and NHL’s national media rights agreements.

The NHL’s agreements with NBC Sports and Rogers Communications (Canada) expire following the 2020-21 and 2025-26 regular seasons, respectively, while the NBA’s agreements with Disney and WarnerMedia expire after the 2024-25 regular season.

Utilize our unique assets and an integrated approach to drive sponsorship and suite sales.

Our Company possesses powerful and attractive assets that also benefit from being part of a broader sports, entertainment and media offering as a result of our Company’s various agreements with MSG Entertainment .

These agreements enable us to partner with MSG Entertainment and MSG Networks on an integrated approach to marketing partnerships and corporate hospitality solutions to drive sponsorship, signage and suite sales.

Our assets are highly sought after by companies that value the popularity of our sports franchises, the demographic makeup of our fans, and our unique position in the New York market.

The attractiveness of our assets is further strengthened by the Sponsorship Sales and Service Representation Agreements and Arena License Agreements with MSG Entertainment which create compelling, broad-based marketing platforms by combining our professional sports brands and MSG Entertainment ’s live entertainment assets, as well as MSG Networks’ media inventory.

This integrated approach to marketing partnerships — which delivers unrivaled sports, entertainment and media exposure in the New York market — has already attracted world-class partners such as JPMorgan Chase, Anheuser-Busch, Charter Communications, Delta Air Lines, DraftKings, Kia, Lexus, PepsiCo, and Squarespace.

In addition, our presence in esports with CLG and Knicks Gaming provides us with the opportunity to introduce both our existing marketing partners and new brands to esports’ global fan base, primarily comprised of millennials and Generation Z — attractive, yet hard-to reach, demographics for advertisers.

Our Arena License Agreements with MSG Entertainment enable MSG Entertainment to offer corporate hospitality solutions that bring together our live sporting events with MSG Entertainment ’s live entertainment offerings and provide for the sharing of revenues from such offerings.

For example, The Garden offers a variety of suite and club products, including 21 Event Level suites, 58 Lexus Madison Level suites, 18 Signature Level suites, the Madison Club, Suite Sixteen and the Loft Club.

These suites and clubs — which provide exclusive private spaces, first-class amenities and some of the best seats in The Garden — are primarily licensed to corporate customers with the majority being multi-year agreements, most of which have

annual escalators.

We believe the unique combination of our live sporting events and MSG Entertainment ’s live entertainment offerings, along with the continued importance of corporate hospitality to our guests, positions us well to continue to grow this area of the business.

Continue to invest in the fan experience.

The strong loyalty of our fans has been driven in part by our commitment to the fan experience, which we will continue to build on through our relationship with MSG Entertainment , owner and operator of The Garden.

Working with MSG Entertainment , we offer first-class operations, innovative event presentation, premium food and beverage offerings, and unique and exclusive merchandise, as well as venue and team apps designed to create a seamless experience for our fans.

Our goal is to deliver the best in-venue experience in the industry — whether our guests are first-time visitors, repeat customers, season ticket holders, suite holders or club members.

Our Sports Franchises

The Knicks and Rangers are two of the most recognized franchises in professional sports, with storied histories and passionate, multi-generational fan bases.

These teams are the primary occupants of The Garden, playing a combined total of 82 regular season home games, often to at or near capacity attendance.

For all of our sports teams, the number of home games increases if they qualify for the playoffs.

New York Knicks

As an original franchise of the NBA, the Knicks have a rich history that includes eight trips to the NBA Finals and two NBA Championships, as well as some of the greatest athletes to ever play the game.

Under the leadership of head coach, David Fizdale, the Knicks head into the 2019-20 season fielding a young and exciting team that includes Mitchell Robinson, an NBA All-Rookie Second Team selection;

RJ Barrett, the number three overall pick in the 2019 NBA Draft;

and a number of skilled players who were added to the team during the offseason.

The Knicks ranked in the top three in the NBA for ticket sales receipts for the 2018-19 regular season.

With President Leon Rose at the helm and new Head Coach, Tom Thibodeau, the Knicks head into the 2020-21 season fielding a young and exciting team that includes center Mitchell Robinson and guard RJ Barrett.

The team will also have the opportunity to add talented young players through its two first-round picks in the 2020 NBA Draft.

The Knicks, which have a large and passionate fan base that spans a wide demographic mix, ranked in the top three in the NBA for ticket sales receipts for the 2019-20 regular season.

New York Rangers

The Rangers hockey club is one of the NHL’s “Original Six” franchises.

Heading into its 92 nd season, the Rangers are a storied franchise and one of the league’s marquee teams, with four Stanley Cup Championships over its history.

Under the leadership of new President, John Davidson, the Rangers are seeking to build the foundation for its next championship-caliber team, which for the 2019-20 season includes the addition of elite forward, Artemi Panarin, as well as Kaapo Kakko, the second overall pick in the 2019 NHL Entry Draft.

The Rangers are known to have one of the most passionate, loyal and enthusiastic fan bases in all of sports, and ranked in the top three in the NHL for ticket sales receipts for the 2018-19 regular season.

Heading into its 93 rd season, the Rangers are a storied franchise and one of the league’s marquee teams, with four Stanley Cup Championships.

Under the leadership of President, John Davidson, the Rangers are seeking to continue building the foundation for its next championship-caliber team, which for the 2020-21 season includes elite forward Artemi Panarin, as well as dynamic center Mika Zibanejad.

In addition, the Rangers will have the first overall pick in the 2020 NHL Entry Draft.

The Rangers, which have one of the most passionate, loyal and enthusiastic fan bases in all of sports, ranked in the top three in the NHL for ticket sales receipts for the 2019-20 regular season.

Westchester Knicks

The Westchester Knicks, an NBAGL team, play their home games at the Westchester County Center in White Plains, NY and serve as the exclusive NBAGL affiliate of the Knicks.

In the 2018-19 season, the Westchester Knicks finished with the franchise’s second-most wins in a single season, including the first postseason win in its history.

In March 2014, the Company acquired the right to own and operate an NBAGL team, the Westchester Knicks.

The team serves as the exclusive NBAGL affiliate of the Knicks and plays its home games at the Westchester County Center in White Plains, NY.

Hartford Wolf Pack

The Hartford Wolf Pack, a minor-league hockey team, is the player development team for the Rangers and is also competitive in its own right in the AHL.

The Rangers send draft picks and other players to the Hartford Wolf Pack for skill development and injury rehabilitation, and can call up players for the Rangers roster to enhance the team’s competitiveness.

The Company’s portfolio of live experiences includes a presence in the esports industry through a controlling interest in CLG , a premier North American esports organization, as well as Knicks Gaming, our franchise in the NBA 2K Esports League.

Founded in 2010, CLG is one of the most established and successful organizations in the industry, operating six teams across several well-known esports games:

Counter Logic Gaming

Founded in 2010, CLG is a North American esports organization respected for its championship legacy and passionate fanbase.

CLG fields teams across leading esports titles:

“League of Legends,” “Fortnite,” “Counter-Strike:

Global Offensive,” and “Super Smash Bros.” In 2018, Knicks Gaming made its debut as part of the league’s inaugural season and went on to win the first-ever NBA 2K League championship.

Global Offensive,” “Apex Legends,” and “Super Smash Bros.” CLG has won multiple championships throughout its history — most notably the League of Legends LCS North American Championship in Summer 2015 and Spring 2016, and has represented North America in the League of Legends World Championships four times.

Knicks Gaming

Knicks Gaming, our esports franchise that competes in the NBA 2K League, was one of the inaugural teams when the league debuted in 2018.

Knicks Gaming also won the first-ever NBA 2K League Championship title in August 2018.

Arena License Agreements

Madison Square Garden, the World’s Most Famous Arena (“The Garden”), is the home for the Knicks and Rangers pursuant to Arena License Agreements with MSG Entertainment.

The Arena License Agreements provide revenue opportunities through the sharing of certain suite, sponsorship, food and beverage, merchandise and sales arrangements with MSG Entertainment.

Arena License Agreements have a term of 35 years.

See Note 9 to the consolidated financial statements included in Item 8 of this Annual Report on Form 10-K for more information.

Our Performance Centers

The Company owns the state-of-the-art Madison Square Garden Training Center in Greenburgh, NY.

The approximately 114,000 square-foot facility features two basketball courts and one NHL regulation-sized hockey rink, and is equipped with well-appointed private areas and office space and exercise and training rooms with dedicated equipment for each team as well as the latest technology and other first-class amenities.

In addition, the Company operates the CLG Performance Center in Los Angeles, CA, which includes unique competition spaces tailored to the Company’s esports game franchises, as well as a studio and editing bay for video productions and outdoor areas that can be used to hold fan events.

Impact of COVID-19

On March 11 and 12, 2020, the NBA and NHL, respectively, suspended their 2019-20 seasons due to COVID-19.

At the time the seasons were suspended, the Knicks had 16 games remaining, including eight home games, and the Rangers had 12 games remaining, including five home games.

On May 26, 2020, the NHL announced return-to-play plans for 24 teams which began August 1, 2020.

The Rangers were among the teams that returned to play in a 24-team tournament.

On June 4, 2020, the NBA announced plans to resume play on July 30, 2020 with 22 teams.

The Knicks were not among the teams that returned to competition.

As a result of government-mandated assembly limitations and closures due to the COVID-19 pandemic, no events are currently permitted to be held at The Garden where the Knicks and Rangers play their home games, and some or all of these mandated restrictions may remain in effect even after the NBA and/or NHL resume for the 2020-21 seasons.

No assurances can be made that games will be played at The Garden or will be played with any in-arena audiences or without limited-capacity in-arena audiences.

COVID-19 disruptions have materially impacted the Company’s revenues and we are recognizing materially less revenues across a number of areas.

Those areas include:

ticket sales;

media rights fees;

our share of suite licenses;

sponsorships;

signage and in-venue advertising at The Garden;

and food, beverage and merchandise sales.

With the ongoing uncertainty due to COVID-19, earlier this month, the Company implemented cost-reduction measures.

These measures included workforce reductions, limits on third-party vendor use and additional cuts to discretionary spending.

As of June 30, 2020 , we had approximately 450 full-time union and non-union employees and 430 part-time union and non-union employees.

As of August 21, 2020, due to layoffs as a result of the COVID-19 pandemic, we had approximately 420 full-time union and non-union employees and 430 part-time union and non-union employees.

At this time, we are unable to predict when we will be able to resume normal business operations and if there will be any longer-term effects, due to these COVID-related disruptions.

See “Item 1A.

Risk Factors — Our Operations and Operating Results Have Been, and Continue to be, Materially Impacted by the COVID-19 Pandemic and Government and League Actions Taken in Response ” and “Item 7.

Management’s Discussion and Analysis — Introduction — Factors Affecting Results of Operations — Impact of COVID-19 on Our Business .”

The Role of the Leagues in Our Operations

As franchises in professional sports leagues, our teams are members of their respective leagues and, as such, are subject to certain limitations, under certain circumstances, on the control and management of their affairs.

The respective league constitutions of our sports teams, under which each league is operated, together with the collective bargaining agreements (each a “ CBA ”) each league has signed with its players’ association, contain numerous provisions that, as a practical matter in certain circumstances, could impact the manner in which we operate our businesses.

In addition, under the respective league constitutions of our sports teams, the commissioner of each league, either acting alone or with the consent of a majority (or, in some cases, a supermajority) of the other sports teams in the league, may be empowered in certain circumstances to take certain actions felt to be in the best interests of the league, whether or not such actions would benefit our sports teams and whether or not we consent or object to those actions.

While the precise rights and obligations of member teams vary from league to league, the leagues have varying degrees of control exercisable under certain circumstances over the length and format of the playing season, including preseason and playoff schedules;

As franchises in professional sports leagues, our teams are members of their respective leagues and, as such, are subject to certain rules, regulations and limitations on the control and management of their affairs.

The respective league constitutions of our sports teams, under which each league is operated, together with the collective bargaining agreements (each a “CBA”) that each of the NBA and NHL has signed with its players’ association, contain numerous provisions that, as a practical matter, could impact the manner in which we operate our businesses.

In addition, under the respective league constitutions of our sports teams, the commissioner of each league, either acting alone or with the consent of a majority (or, in some cases, a supermajority) of the other sports teams in the league, may be empowered in certain circumstances to take certain actions believed to be in the best interests of the league, whether or not such actions would benefit our sports teams and whether or not we consent or object to those actions.

the number of games in a playing season;

the operating territories of the member teams;

national and international media and other licensing rights;

local, national and international media and other licensing rights;

admission of new members and changes in ownership;

franchise relocations;

indebtedness affecting the franchises;

indebtedness affecting the franchises and their affiliates;

and labor relations with the players’ associations, including collective bargaining, free agency, and rules applicable to player transactions, luxury taxes and revenue sharing.

See “Part II — Item 7 .

Management’s Discussion and Analysis of Financial Condition and Results of Operations — Business Overview — MSG Sports — Expenses .” Additionally, CLG operates multiple teams that participate in several different esports leagues.

The rights and obligations of each CLG team (and member teams generally) vary from league to league.

Management’s Discussion and Analysis of Financial Condition and Results of Operations — Business Overview — Expenses .” Additionally, CLG operates multiple teams that participate in several different esports leagues.

rights and obligations of each CLG team (and member teams generally) vary from league to league.

The leagues are generally empowered to and have implemented rules with respect to our league participation, as well as operation, and monetization of the CLG teams and brand.

From time to time, we may disagree with or challenge actions the leagues take or the power and authority they assert, although the leagues’ governing documents and our agreements with the leagues purport to limit the manner in which we may challenge decisions and actions by a league commissioner or the league itself.

Other Sporting Events

The Company’s MSG Sports segment also includes a broad array of live sporting events that the Company promotes, produces and/or presents, including professional boxing, college basketball, college hockey, professional bull riding, mixed martial arts, esports, and college wrestling.

Many of these events are among the most popular in our history and are perennial highlights on our annual calendar, as well as some of The Garden’s longest-running associations.

Professional boxing, beginning with John L.

Sullivan in 1882, has had a long history with The Garden.

The Arena famously hosted Muhammad Ali and Joe Frazier’s 1971 “Fight of the Century,” considered among the greatest sporting events in modern history, as well as numerous bouts featuring dozens of other boxing greats.

These have included:

Joe Louis, Rocky Marciano, Sugar Ray Robinson, Willie Pep, Emile Griffith, George Foreman, Roberto Duran, Oscar De La Hoya, Sugar Ray Leonard, Lennox Lewis, Roy Jones, Jr., Mike Tyson, Evander Holyfield, Miguel Cotto, and Wladimir Klitschko.

In June 2019, The Garden hosted the World Heavyweight Championship, in a bout that saw champion Anthony Joshua, in his U.S.

debut, fall in a stunning loss to Andy Ruiz Jr.

in front of a sold-out crowd.

Additionally, this past year the Company hosted top fighters Vasiliy Lomachenko, Daniel Jacobs, Demetrius Andrade, Gennady Golovkin, and Terence Crawford, as well as the New York debut of international boxing superstar Canelo Alvarez.

In recent years, the Company has also expanded its presence in the popular sport of mixed martial arts.

In June 2016, the Forum hosted its first-ever Ultimate Fighting Championship (“ UFC ”) event with UFC 199.

Since the return of professional mixed martial arts in New York State in 2016, The Garden has annually hosted UFC events, including the historic UFC 205 in November 2016 during which Conor McGregor knocked out Eddie Alvarez to become the first simultaneous two-weight champion in UFC history.

Bellator MMA has also hosted internationally-broadcasted events at both The Garden and the Forum, including most recently Bellator 222 at The Garden in June 2019, which featured Rory MacDonald vs.

Neiman Gracie in a welterweight title fight.

The Professional Fighters League has also held events at Hulu Theater at Madison Square Garden , including its inaugural World Championships on New Year’s Eve this past year, which featured six world title fights.

College sports have been a mainstay at The Garden for decades, with college basketball celebrating 85 years at The World’s Most Famous Arena during the 2018-19 season.

In addition to St.

John’s University calling The Garden its “home away from home,” this past year the highly-anticipated Big East Tournament celebrated its 37 th consecutive year at The Garden.

Other college basketball highlights this past year included visits from Duke University’s Blue Devils, where phenoms Zion Williamson and RJ Barrett entertained The Garden crowd in a showcase against Texas Tech, as well as the annual Jimmy V Classic and the 2K Empire Classic.

In 2007, The Garden sold out its first college hockey game — Red Hot Hockey featuring Cornell University versus Boston University — which has become a popular biennial event that Cornell won for the first time in 2017.

College hockey has continued to grow at The Garden and become a fan-favorite over the last decade, attracting top national teams such as Boston College, North Dakota, Harvard, Michigan, and Minnesota.

Other recent world-class sporting events have included the NBA All-Star Game, which The Garden last hosted in 2015, marking the fifth time the arena has hosted the illustrious professional basketball event, and the NCAA Division I Men’s Basketball East Regional Finals, which The Garden hosted in 2014 and 2017, and will again in 2020.

These live sporting events are not contemplated to be included as part of the potential Sports Distribution .

MSG Entertainment

Our Company delivers unforgettable entertainment experiences — including live events and spectacular productions — all in extraordinary settings that span some of the country’s largest entertainment markets.

This creates a significant demand for an association with our brands — by artists, premier companies and the public.

And with a foundation of iconic venues, our Company has a proven ability to leverage the strength of our industry relationships, marketing assets, customer database and live event expertise to create performance, promotion and distribution opportunities for artists, events and productions, and to increase utilization of our venues.

Specifically, our MSG Entertainment segment produces, presents and hosts concerts, family shows, performing arts events, special events and wholly-owned productions at our venues, which are:

The Garden , Hulu Theater at Madison Square Garden , Radio City Music Hall, the Beacon Theatre, the Forum and The Chicago Theatre.

With seating capacities and configurations that range from 2,800 to 21,000 , our collection of diverse venues enables us to showcase acts and events that cover a wide spectrum of genres and popular appeal.

Our MSG Entertainment segment also includes the beloved holiday show, the Christmas Spectacular — created for Radio City Music Hall and featuring the world-famous Rockettes.

Over the past several years, the Company has also been executing on its plans to build a robust, diversified portfolio of live experiences.

In July 2016, the Company acquired a controlling interest in BCE, the entertainment production company that owns and operates the Boston Calling Music Festival.

This was followed in January 2017 by the Company’s purchase of a controlling interest in TAO Group, a hospitality group with globally -recognized entertainment dining and nightlife brands.

Our Live Entertainment Bookings

Our Company is an established industry leader that books a wide variety of live entertainment events in our venues, which perennially include some of the biggest names in music and entertainment.

Over the last several years, our venues have been a key destination for artists such as the Eagles, U2, Pearl Jam, Foo Fighters, Paul McCartney, Drake, Bruno Mars, Justin Bieber, Dead and Company, Madonna, Mumford & Sons, Phish, Fleetwood Mac, Adele, Eric Clapton, Bruce Springsteen, Rihanna, Justin Timberlake, P!nk, Kanye West, Stevie Wonder, Ariana Grande and Dave Chappelle.

Our efforts to find new ways to increase the utilization of our venues and create unique experiences for artists and fans has led to the creation of various residencies — including The Garden’s first music franchise:

Billy Joel at The Garden.

As part of this extraordinary residency, Billy Joel has appeared monthly at MSG since January 2014, for a total of 66 shows, bringing his overall performances at The World’s Most Famous Arena to 112 overall (through July 2019).

In 2016, the Company launched its second residency, as legendary New Yorker and comedian Jerry Seinfeld began a successful two-year run at the Beacon Theatre, with all 36 performances — which concluded in December 2017 — selling out.

In 2019 Seinfeld resumed his successful residency, which now includes 56 total performances (through July 2019).

This past year, the Company also announced a new multi-year, dual-city residency with Tedeschi Trucks Band at both the Beacon Theatre and The Chicago Theatre — the first residency to span two cities.

Our venues also attract family shows and theatrical productions, which this past year included:

PAW Patrol Live!, Sesame Street Live!, Dr.

Seuss’ How the Grinch Stole Christmas!, The Lightning Thief:

The Percy Jackson Musical, and Pride & Joy:

The Marvin Gaye Musical .

In addition, we frequently serve as the backdrop for high-profile special events such as the 60 th Annual Grammy Awards, which returned to The Garden for the first time in 15 years in 2018.

Other significant events that have been hosted in our venues include the Tony Awards, “America’s Got Talent,” the final season premiere of HBO’s “Game of Thrones” and the MTV Video Music Awards;

appearances by luminaries such as His Holiness Pope Francis, His Holiness the Dalai Lama and the Prime Minister of India, Narendra Modi;

graduations, television upfronts, product launches and film premieres .

Although we primarily license our venues to third-party promoters for a fee, we also promote or co-promote shows where we have economic risk relating to the event.

MSG Entertainment currently does not promote or co-promote events outside of our venues.

Our Productions

One of the Company’s core properties, the Christmas Spectacular — created for Radio City Music Hall and featuring the world-famous Rockettes — has been performed at Radio City Music Hall for 86 years.

The Rockettes, along with show-stopping performances, festive holiday scenes and state-of-the-art special effects, have played an important role in the critically-acclaimed show’s enduring popularity.

This past year the show featured several new technology enhancements, including an all-new groundbreaking finale scene, “Christmas Lights.” Additionally, large-scale digital projections were incorporated to enhance both the finale and classic numbers throughout the show, creating an immersive environment that extended beyond the stage onto all eight of Radio City’s proscenium arches.

During the 2018 holiday season, the Christmas Spectacular once again sold more than one million tickets.

We acquired the rights to the Christmas Spectacular in 1997, and those rights are separate from, and do not depend on the continuation of, our lease of Radio City Music Hall.

We also hold rights to the Rockettes brand in the same manner.

The Company believes it has a significant and unique asset in the Rockettes and continues to strengthen and broaden the Rockettes brand by targeting the most prominent and effective vehicles that elevate their visibility and underscore their reputation as beloved American cultural icons.

The Rockettes have appeared or performed at high-profile events, including Presidential Inaugurations, the Macy’s Thanksgiving Day Parade, Macy’s 4th of July Fireworks event, the New Year’s Eve Times Square Ball Drop, the Tony Awards, and television shows (“America’s Got Talent,” “Project Runway,” “The Today Show,” “Live with Kelly and Ryan,” and “The Tonight Show with Jimmy Fallon”), among many others.

We continue to pursue opportunities to generate greater brand awareness, including television and public appearances and dance education offerings.

Our Entertainment Dining and Nightlife Offerings

The Company owns a controlling interest in TAO Group, which strengthens the Company’s portfolio of live offerings with a complementary, hospitality group with widely-recognized brands that include:

TAO, Marquee, Lavo, Avenue, Beauty & Essex, and Vandal.

Since 2000, TAO Group has been creating some of the most innovative premium experiences in the entertainment dining and hospitality industry.

Today, TAO Group operates 29 venues – 12 venues in New York City, six venues in Las Vegas, five venues in Los Angeles, one venue in Chicago, four venues in Singapore and one venue in Sydney, Australia — and is actively developing opportunities to expand on their success with new venues.

Over the past year, TAO Group opened TAO Chicago, along with new entertainment dining and nightlife venues as part of Moxy Chelsea hotel in New York City.

TAO Group also debuted three new venues in Singapore — Marquee, Avenue, and KOMA.

Essentially all of the venues have either long-term leases or long-term management agreements with options to renew for multiple years.

Our Festival Offering

The Company owns a controlling interest in BCE , the entertainment production company known for successfully creating and operating New England’s premier music festival — Boston Calling, which this year celebrated its 10 th edition.

The 2019 three-day festival took place over Memorial Day weekend at the Harvard Athletic Complex, and featured more than 50 performances from a diverse array of musicians, bands, and comedians, including headliners Twenty One Pilots, Tame Impala and Travis Scott.

Our Performance Venues

The Company operates a mix of iconic performance venues that continue to build on their historic prominence as destinations for unforgettable experiences and events.

Individually, these venues are each premier showplaces, with a passionate and loyal following of fans, performers and events.

Taken together, we believe they represent an outstanding collection of venues.

We own or operate under long-term leases a total of six venues in New York City, Chicago and Inglewood, CA.

Our New York City venues are the Madison Square Garden Complex (which includes both The Garden and Hulu Theater at Madison Square Garden ), Radio City Music Hall and the Beacon Theatre.

Our portfolio of venues also includes the Forum in Inglewood, CA and The Chicago Theatre.

The Company is also currently building a new venue in Las Vegas, MSG Sphere at The Venetian, and has announced plans to build an MSG Sphere venue in London, once we have received all necessary approvals and have further advanced our design for the venue .

The Garden has been a celebrated center of New York life since it first opened its doors in 1879.

Over its 140 -year history, there have been four Garden buildings, each known for showcasing the best of the era’s live sports and entertainment offerings.

We believe that The Garden has come to epitomize the power and passion of live sports and entertainment to people around the world, with an appearance at The Garden often representing a pinnacle of an athlete’s or performer’s career.

Known as “The World’s Most Famous Arena,” The Garden has been the site of some of the most memorable events in sports and entertainment, and, together with Hulu Theater at Madison Square Garden , has hosted hundreds of events and millions of visitors this past year.

In 2009, Billboard Magazine ranked The Garden the number one venue of the decade in its respective class based upon gross ticket sales.

Music industry subscribers of the trade magazine Pollstar have voted The Garden “Arena of the Year” 22 times since the inception of the awards in 1989.

The Garden is the highest-grossing entertainment venue of its size in the world based on Billboard Magazine’s 2019 mid-year rankings.

The Garden is home to the Knicks and Rangers and is associated with countless “big events,” inspired performances and one-of-a-kind moments.

Highlights include:

“The Fight of the Century” between Muhammad Ali and Joe Frazier in 1971;

the 1970 Knicks’ NBA Championship;

the Rangers’ 1994 Stanley Cup Championship;

three Democratic National Conventions and one Republican National Convention;

Marilyn Monroe’s famous birthday serenade to President John F.

Frank Sinatra’s “Main Event” concert in 1974;

the only U.S.

concerts from the reunited Cream;

the 25 th Anniversary Rock and Roll Hall of Fame concerts;

the 60 th Annual Grammy Awards;

and Billy Joel’s record-breaking 112 total performances at The Garden (through July 2019).

In September 2015, His Holiness Pope Francis celebrated Mass at The Garden as part of his successful U.S.

visit, which marked the first time a current pope has visited The Garden since Pope John Paul II in 1979.

The Garden has also hosted four prominent benefit concerts, which galvanized the public to respond to national and global crises, including the first of its kind, “The Concert for Bangladesh” in 1972, as well as “The Concert for New York City,” following the events of 9/11;

“From the Big Apple to the Big Easy,” held after Hurricane Katrina in 2005;

and “12-12-12, The Concert for Sandy Relief” in 2012.

The current Madison Square Garden Complex, located between 31 st and 33 rd Streets and Seventh and Eighth Avenues on Manhattan’s West Side, opened on February 11, 1968 with a salute to the United Service Organizations hosted by Bob Hope and Bing Crosby.

From a structural standpoint, the construction of the current Garden was considered an engineering wonder for its time, including its famous circular shape and unique, cable-supported ceiling, which contributes to its intimate feel.

It was the first large structure built over an active railroad track.

The builder, R.E.

McKee, had a national reputation and was later recognized as a “Master Builder” by the construction industry.

Architect Charles Luckman had one of the largest firms in the country and designed such buildings as the Prudential Tower in Boston, NASA’s flight center in Houston and the Forum in Inglewood, CA.

Following a three-year, top-to-bottom transformation, in October 2013, the Company debuted a fully-transformed Garden, featuring improved sightlines;

additional entertainment and dining options;

new concourses;

upgraded hospitality areas;

new technology;

unique historic exhibits;

and a completely transformed interior, where the intimacy of the arena bowl and The Garden’s world-famous ceiling were maintained.

Focused on the total fan experience, the transformation was designed to benefit everyone in attendance, whether first time visitors, season ticket subscribers, athletes, artists, suite holders or marketing partners.

The Garden’s transformation ensured that attending an event at “The World’s Most Famous Arena” remained unlike anywhere else.

We own the Madison Square Garden Complex, the platform on which it is built and development rights (including air rights) above our property.

Madison Square Garden sits atop Pennsylvania Station (“ Penn Station ”), a major commuter hub in Manhattan, which is owned by the National Railroad Passenger Corporation (Amtrak).

While the development rights we own would permit us to expand in the future, any such use of development rights would require various approvals from the City of New York.

The Garden seats up to approximately 21,000 spectators for sporting and entertainment events and, along with Hulu Theater at Madison Square Garden , contains approximately 1,100,000 square feet of floor space over 11 levels.

Hulu Theater at Madison Square Garden

Hulu Theater at Madison Square Garden , which has approximately 5,600 seats, opened as part of the fourth Madison Square Garden Complex in 1968 with seven nights of performances by Judy Garland.

Since then, some of the biggest names in live entertainment have played Hulu Theater at Madison Square Garden , including The Who, Bob Dylan, Diana Ross, Elton John, James Taylor, Mary J Blige, Pentatonix, John Legend, Ellie Goulding, Chris Rock, Neil Young, Bill Maher, Radiohead, Jerry Seinfeld and Van Morrison.

Hulu Theater at Madison Square Garden has also hosted boxing events and the NBA Draft;

award shows such as The Daytime Emmys;

and other special events including “Wheel of Fortune” and audition shows for “America’s Got Talent,” as well as a variety of theatrical productions and family shows, including A Christmas Story, Elf The Musical, Paw Patrol Live!, and Sesame Street Live!

In March 2018, the Company and Hulu, a leading premium streaming service, announced a multi-faceted marketing partnership that included exclusive naming rights, after which the venue was rebranded as Hulu Theater at Madison Square Garden .

Hulu Theater at Madison Square Garden is the seventh highest-grossing entertainment venue of its size in the world, based on Billboard Magazine’s 2019 mid-year rankings.

Radio City Music Hall

Radio City Music Hall has a rich history as a national theatrical and cultural mecca since it was first built by theatrical impresario S.L.

“Roxy” Rothafel in 1932.

Known as “The Showplace of the Nation,” it was the first building in the Rockefeller Center complex and, at the time, the largest indoor theater in the world.

Radio City Music Hall, a venue with approximately 6,000 seats, hosts concerts, family shows and special events, and is home to the Christmas Spectacular .

See “— MSG Entertainment — Our Productions .” Over its history, entertainers who have graced the Great Stage include:

Yes, Aretha Franklin, Lady Gaga, Brian Wilson, Harry Styles, Bastille, John Mulaney, Mariah Carey, Nine Inch Nails, Christina Aguilera, Britney Spears, Tony Bennett, Billie Eilish, Sebastian Maniscalco and Dave Chappelle.

In 2009, Billboard Magazine ranked Radio City Music Hall the number one venue of the decade in its respective class based upon gross ticket sales.

Radio City Music Hall is the highest-grossing entertainment venue of its size in the world, based on Billboard Magazine’s 2019 mid-year rankings.

In 1978, Radio City Music Hall was designated a New York City landmark by the NYC Landmarks Preservation Commission and a national landmark on the National Register of Historic Places.

We acquired the lease in 1997, and in 1999, we invested in a complete restoration that returned the legendary theater to its original grandeur.

Our acclaimed restoration touched all aspects of the venue and included burnishing the ceilings of Radio City Music Hall with 720,000 sheets of gold and aluminum leaf, replacing the existing stage curtain with a new 112 -foot wide golden silk curtain, and cleaning the three-story tall mural “The Fountain of Youth,” by Ezra Winter, which looms above the grand staircase.

State-of-the-art sound systems, lighting and HDTV capabilities were also installed.

We lease Radio City Music Hall, located at Sixth Avenue and 50 th Street in Manhattan, pursuant to a long-term lease agreement.

The lease on Radio City Music Hall expires in 2023 .

We have the option to renew the lease for an additional 10 years by providing two years’ notice prior to the initial expiration date.

Beacon Theatre

In November 2006, we entered into a long-term lease agreement to operate the legendary Beacon Theatre, a venue with approximately 2,800 seats, which sits on the corner of Broadway and 74 th Street in Manhattan.

The Beacon Theatre was conceived of by S.

“Roxy” Rothafel and is considered the “older sister” to Radio City Music Hall.

Designed by Chicago architect Walter Ahlschlager, the Beacon Theatre opened in 1929 as a forum for vaudeville acts, musical productions, drama, opera, and movies.

The Beacon Theatre was designated a New York City landmark by the NYC Landmarks Preservation Commission in 1979 and a national landmark on the National Register of Historic Places in 1982.

Over its history, the Beacon Theatre has been a venerable rock and roll room for some of the greatest names in music including Steely Dan, Coldplay, Alice Cooper, Dave Matthews Band, Crosby Stills & Nash, Elton John, John Fogerty, Hozier, Tom Petty and the Heartbreakers, Tedeschi Trucks Band, Eddie Vedder and Bob Dylan, as well as The Allman Brothers Band, which played their 238 th show at the Beacon Theatre in October 2014, marking their final concert as a band.

The venue has also hosted special events such as film premieres for the Tribeca Film Festival and comedy events, including our Jerry Seinfeld residency, along with numerous luminaries such as His Holiness the Dalai Lama in 2009 and 2013, and President Bill Clinton in 2006 when the Rolling Stones played a private concert in honor of his 60 th birthday.

In August of 2008 we closed the Beacon Theatre for a seven-month restoration project to return the theater to its original 1929 grandeur.

The restoration of the Beacon Theatre focused on all historic, interior public spaces of the building, backstage and back-of-house areas, and was based on extensive historic research, as well as detailed, onsite examination of original, decorative painting techniques that had been covered by decades-old layers of paint.

The Beacon Theatre has won several architectural awards recognizing its outstanding restoration.

The widely acclaimed, comprehensive restoration was similar to our restoration of Radio City Music Hall, and reflects our commitment to New York City.

The Beacon Theatre is the sixth highest-grossing entertainment venue of its size in the world, based on Billboard Magazine’s 2019 mid-year rankings.

Our lease on the Beacon Theatre expires in 2026 .

In June 2012, we added a West Coast home with the purchase of the Forum in Inglewood, CA, which serves the Greater Los Angeles area.

Following an extensive reinvention of the historic venue, on January 15, 2014, the Forum re-opened with the first of six concerts by the legendary Eagles and is once again a thriving destination for both artists and music fans.

With both the Forum and The Garden, the Company has an iconic arena in each of the country’s two largest entertainment markets.

The Forum is the only arena-sized venue in the country dedicated to music and entertainment, and offers something exceptional for everyone.

Architecturally, the interior of the bowl has been completely modernized and features superior acoustics, along with flexible seating that ranges from 7,000 seats to 17,600 seats.

Fans seated on the floor have access to one of the largest general admission floors in the country, with approximately 8,000 square feet of event level hospitality offerings.

The Forum also offers exclusive spaces for VIP customers, including the historic Forum Club, and, for artists, delivers a first-class experience that includes nine , star-caliber dressing rooms with high-end amenities.

Among the key features that were resurrected in an effort to replicate the original design is the exterior color of the venue, which was returned to the 1960’s “California sunset red,” and is now known as “Forum Red.” Other outdoor features include the addition of a distinct and iconic Forum marquee and a 40,000-square foot terrace that surrounds the perimeter of the building.

The original Forum was designed by renowned architect, Charles Luckman, who also designed The Garden that opened in 1968.

The historic West Coast venue, which opened in 1967, has played host to some of the greatest musical performers of all time, including The Rolling Stones, The Jackson 5, Bob Dylan, Led Zeppelin, Madonna, Van Halen, Coldplay, Prince and many others.

In addition, the Forum was home to the Los Angeles Lakers and Los Angeles Kings until 1999.

Since re-opening in 2014, the Forum has received several architectural awards recognizing its outstanding restoration.

The venue’s impressive lineup of entertainers since the restoration has included:

the Eagles, Justin Timberlake, U2, Drake, Kanye West, Eric Clapton, Guns N’ Roses, Stevie Wonder, Aerosmith, Steely Dan, Fleetwood Mac, Jennifer Lopez, KISS, Mumford & Sons, Foo Fighters, The Weeknd, P!nk and Rihanna as well as His Holiness the Dalai Lama.

The Forum has also hosted a number of special events such as the MTV Video Music Awards and Nickelodeon’s Kids’ Choice Awards, as well as select sporting events, including Championship Boxing and mixed martial arts.

The Forum is the third highest-grossing entertainment venue of its size in the world, based on Billboard Magazine’s 2019 mid-year rankings.

The Chicago Theatre

In October 2007, to provide us with an anchor for content and distribution in a key market in the Midwest, we purchased the legendary Chicago Theatre, a venue with approximately 3,600 seats.

The Chicago Theatre, which features its famous six-story-high “C-H-I-C-A-G-O” marquee, was built in 1921 and designed in the French Baroque style by architects Cornelius W.

Rapp and George L.

It is the oldest surviving example of this architectural style in Chicago today, and was designated a Chicago landmark building in 1983 by the Mayor of Chicago and the Chicago City Council.

The Chicago Theatre has become a highly attractive destination for concerts, comedy shows and other live events, hosting a wide range of entertainers, including Bob Dylan, Mumford & Sons, David Byrne, Neil Young, Janelle Monae, Jerry Seinfeld, Janet Jackson, Bob Weir, Jim Gaffigan, Conan O’Brien, Amy Schumer and Steely Dan.

The venue has also hosted theatrical tours such as A Christmas Story, The Wizard of Oz, Paw Patrol Live!

Seuss’ How The Grinch Stole Christmas!

The Musical .

The Chicago Theatre is the fifth highest-grossing entertainment venue of its size in the world, based on Billboard Magazine’s 2019 mid-year rankings.

The Company is progressing with its plans to create the “venue of the future” with MSG Sphere, which will utilize cutting-edge technologies to create the next-generation of immersive experiences.

Key design features of MSG Sphere are expected to include:

a fully-programmable LED exterior and an interior bowl that features the world’s largest and highest resolution LED screen known today — more than 160,000 square feet of display surface;

an advanced acoustics system featuring beamforming technology that will deliver crystal clear audio;

a custom video system capable of capturing, curating and distributing both today’s and tomorrow’s content;

an infrasound haptic system that will use deep vibrations so guests can “feel” the experience;

an advanced architecture for connectivity that will enable a broader range of content, greater interaction among guests and more immersive entertainment experiences.

These technologies will come together to create a powerful platform, which we believe will make MSG Sphere the venue of choice for a wide variety of content — including attractions, concerts, residencies, corporate events, award shows, product launches and select sporting events.

The Company will build its first MSG Sphere in Las Vegas on land leased from Las Vegas Sands Corp.

(“Sands”), which is adjacent to The Venetian Resort.

The Company broke ground on the approximately 17,500 -seat venue in September 2018 with the start of site preparations, and construction is currently ongoing.

Our goal is to open MSG Sphere in Las Vegas in calendar year 2021 .

Sands will provide us with $75 million to help fund the construction costs, including the cost of a pedestrian bridge that links MSG Sphere in Las Vegas to the Sands Expo Convention Center.

Sands will receive priority access to purchase tickets to events at the venue for inclusion in hotel packages or other uses, as well as certain rent-free use of the venue to support its Expo Center business.

The ground lease has no fixed rent;

however, if certain return objectives are achieved, Sands will receive 25% of the after-tax cash flow in excess of such objectives.

The lease is for a term of 50 years.

In February 2018, we announced the purchase of land in Stratford, London, which we expect will become home to the Company’s second MSG Sphere and first large-scale international venue.

The Company submitted a planning application to the local planning authority in March 2019 and expects a planning determination by the end of calendar year 2019 (which may become the subject of further discussions with the planning authority).

Our plan is to begin construction on the MSG Sphere venue in London only once we have received all necessary approvals and have further advanced our design for the venue.

We currently expect that MSG Sphere in London will be substantially similar to MSG Sphere in Las Vegas, including having approximately the same seating capacity.

We continue to explore additional domestic and international markets where next-generation venues can be successful.

The design of MSG Sphere will be flexible to accommodate a wide range of sizes and capacities — from large-scale to smaller and more intimate — based on the needs of any individual market.

As we explore selectively extending the MSG Sphere network, we will be open to multiple types of transaction structures, including owned, operated, and joint ventures.

See “Part II — Item 7 .

Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — MSG Spheres .”

Our Interactive Initiatives

The Company has a digital presence that includes web sites, social networking sites and mobile applications for our sports and entertainment properties.

In 2017, the Company consolidated a collection of individual web sites dedicated to our venues into a new platform, MSG.com, designed to deliver greater value to our customers by providing one place where they can explore upcoming events in all our venues, learn more about our brands, and purchase tickets.

Web sites dedicated to our teams (nhl.com/rangers, nba.com/knicks, westchester.gleague.nba.com, hartfordwolfpack.com, clg.gg, knicksgaming.nba.com) remain separate from MSG.com, as do the web sites for TAO Group (taogroup.com) and Boston Calling (bostoncalling.com).

Like our MSG Sports business, the online operations relating to our teams may, in certain circumstances, be subject to certain agreements, rules, policies, regulations and directives of the leagues in which the respective team operates.

See “— Our Business — Regulation .” In addition to driving ticket sales to our events, this interactive business generates revenue for the Company’s segments via the sale of advertising and sponsorships on these digital properties.

Additionally, it offers strategic marketing assets that create opportunities to market directly to our fans and cross-promote our businesses.

Other Investments

We continue to explore additional opportunities that strengthen our existing position within the sports and entertainment landscape and/or allow us to exploit our assets and core competencies for growth.

In July 2018, the Company acquired a 30% interest in SACO, a global provider of high-performance LED video lighting and media solutions for a total consideration of approximately $47.2 million .

The Company is utilizing SACO as a preferred display technology provider for MSG Spheres and is benefiting from agreed upon commercial terms.

In addition, the Company also has other investments in various sports and entertainment companies and related technologies, accounted for either under the equity method or at fair value.

Garden of Dreams Foundation

Our Company has a close association with The Garden of Dreams Foundation (the “Foundation”), a 501(c)(3) non-profit charity that is dedicated to making dreams come true for children facing obstacles.

The Foundation works with 30 partner organizations throughout the tristate area, including hospitals, wish organizations and community-based organizations, to reach children who are facing challenges such as homelessness, extreme poverty, illness and foster care.

Since it began in 2006, Garden of Dreams has used the magic of The Madison Square Garden Company — including the Rangers, Knicks, Rockettes and famed showplaces — to brighten the lives of more than 375,000 children and their families.

The Foundation takes pride in its commitment to truly change lives, hosting more than 500 events and programs each year.

They include:

events with the Knicks and Rangers;

special celebrations and event attendance at The Garden, Radio City Music Hall and the Beacon Theatre;

visits by Madison Square Garden celebrities;

The Garden of Dreams Talent Show, where children perform on the Great Stage at Radio City Music Hall;

The Garden of Dreams Prom, which brings together teens who may not otherwise have the opportunity to attend their own proms;

and the “Make A Dream Come True Program,” where children enjoy unforgettable experiences with celebrities and at events.

In addition, through its Garden of Dreams Giving program, the Foundation helps its partner organizations meet the critical needs of the children they serve through direct support of scholarships and tangible, targeted community projects.

To date, the Foundation has awarded scholarships to 77 children.

Garden of Dreams has also served its partners by refurbishing pediatric wards at area hospitals, activity rooms and gymnasiums at community facilities and by creating brand new spaces such as music and dance studios — with plans for many more vital civic enhancements in the years to come.

We generally license the local media rights for our sports teams’ home and away games.

Subsidiaries of the Company have entered into media rights agreements with MSG Networks covering the local telecast and radio rights for the Knicks and Rangers.

Each agreement has a remaining term of approximately 15 years.

Our Community

The Company is committed to leveraging the power of its brands to benefit communities across the tri-state area.

The Knicks and Rangers both run grassroots programs - Junior Knicks and Junior Rangers - dedicated to creating opportunities for the next generation of athletes to enjoy basketball and hockey.

This commitment includes a wide-ranging series of free clinics, skills development programs, recreational leagues, and an initiative focused on empowering girls of all ages through the sport of hockey.

Both teams also celebrate home-grown heroes throughout the year, recognizing them through awards which pay tribute to individuals who have made a difference in the lives of others and honor the brave men and women who have served or are currently serving in the United States Armed Forces.

Our Company also has a close association with The Garden of Dreams Foundation (the “Foundation”), a non-profit organization that assists young people in need.

In partnership with the Company, MSG Entertainment, and MSG Networks, the Foundation provides young people in our communities with access to educational and skills opportunities;

mentoring programs and memorable experiences that enhance their lives, help shape their futures and create lasting joy.

The Foundation focuses on young people facing illness or financial challenges, as well as children of uniformed personnel who have been lost or injured while serving our communities.

Since it was established in 2006, the Foundation has impacted more than 375,000 children and their families.

Our sports and entertainment businesses are subject to legislation governing the sale and resale of tickets and consumer protection statutes generally.

In addition, our venues, like all public spaces, are subject to building and health codes and fire regulations imposed by the state and local governments in the jurisdictions in which they are located.

Our venues are also subject to zoning and outdoor advertising regulations, and, with respect to Radio City Music Hall and the Beacon Theatre, landmark regulations which restrict us from making certain modifications to our facilities as of right or from operating certain types of businesses.

Our venues also require a number of licenses in order for us to operate, including occupancy permits, exhibition licenses, food and beverage permits, liquor licenses and other authorizations and, with respect to The Garden, a zoning special permit granted by the New York City Planning Commission.

In the jurisdictions in which our venues are located, we are subject to statutes that generally provide that serving alcohol to a visibly intoxicated or minor patron is a violation of the law and may provide for strict liability for certain damages arising out of such violations.

In addition, our venues are subject to the federal Americans with Disabilities Act (and related state and local statutes), which requires us to maintain certain accessibility features at each of our facilities.

We and our venues are also subject to environmental laws and regulations.

In addition, The Garden, like all public spaces, is subject to building and health codes and fire regulations imposed by the state and local governments.

The Garden is subject to zoning and outdoor advertising regulations and requires a number of licenses in order to operate, including occupancy permits, exhibit licenses, food and beverage permits, liquor licenses and other authorizations and a zoning special permit granted by the New York City Planning Commission.

See “Item 1A.

Risk Factors — General Risks — We Are Subject to Extensive Governmental Regulation and Our Failure to Comply with These Regulations May Have a Material Negative Effect on Our Business and Results of Operations.

” The professional sports leagues in which we operate, primarily the NBA and NHL, have the right under certain circumstances to regulate important aspects of our sports business and our team-related online and mobile businesses.

See “— Our Business — MSG Sports — The Role of the Leagues in Our Operations .”

Our sports and entertainment businesses are also subject to certain regulations applicable to our Internet web sites and mobile applications.

We maintain various web sites and mobile applications that provide information and content regarding our businesses, offer merchandise and tickets for sale, make available sweepstakes and/or contests and offer hospitality services.

The operation of these web sites and applications may be subject to a range of federal, state and local laws such as privacy and protection of personal information, accessibility for persons with disabilities and consumer protection regulations.

In addition, to the extent any of our web sites collect information from children under 13 years of age or are intended primarily for children under 13 years of age, we must comply with certain limits on commercial matter.

Our businesses are also subject to regulation regarding working conditions and minimum wage requirements.

Risk Factors — We Do Not Own The Garden and Our Failure to Renew the Arena License Agreements or MSG Entertainment’s Failure to Operate The Garden in Compliance with the Arena License Agreements or Extensive Governmental Regulations May Have a Material Negative Effect on Our Business and Results of Operations .”

The professional sports leagues in which we operate, primarily the NBA and NHL, have the right under certain circumstances to regulate important aspects of our business , including, without limitation, our team-related online and mobile businesses.

See “Item 1A.

Risk Factors — Risks Relating to Our Entertainment Business — Increases in Labor Costs Could Slow the Growth of or Harm TAO Group .”

Our international operations are subject to laws and regulations of the countries in which they operate, as well as international bodies, such as the European Union.

We are subject to laws and regulations relating to, among other things, foreign privacy and data protection, such as the E.U.

General Data Protection Regulation, currency and repatriation of funds, anti-bribery, anti-money laundering and anti-corruption, such as the Foreign Corrupt Practices Act and the U.K.

These laws and regulations apply to the activities of the Company and, in some cases, to individual directors, officers, and employees of the Company and agents acting on our behalf.

Certain of these laws impose stringent requirements on how we can conduct our foreign operations and could place restrictions on our business and partnering activities.

Competition in Our Sports Business

Our sports business operates in a market in which numerous sports and entertainment opportunities are available.

Risk Factors — The Actions of the NBA, NHL and Esports Leagues May Have a Material Negative Effect on Our Business and Results of Operations.

Our business is also subject to certain regulations applicable to our Internet websites and mobile applications, including data privacy laws in various jurisdictions.

These include, but are not limited to, the California Consumer Privacy Act (the “CCPA”).

These laws obligate us to comply with certain consumer and employee rights concerning data we may collect about these individuals.

We maintain various websites and mobile applications that provide information and content regarding our business, offer merchandise and tickets for sale, make available sweepstakes and/or contests and offer hospitality services.

The operation of these websites and applications may be subject to a range of other federal, state and local laws such as accessibility for persons with disabilities and consumer protection regulations.

In addition, to the extent any of our websites collect information from children under 13 years of age or are intended primarily for children under 13 years of age, we must comply with additional federal regulations designed to protect children’s privacy and safety online, including restrictions on marketing.

Our business is also subject to a variety of laws and regulations, including working conditions, labor, immigration and employment laws and health, safety and sanitation requirements.

See “Item 1A.

Risk Factors “— We Are Subject to Governmental Regulation, Which Can Change and Any Failure to Comply With These Regulations May Have a Material Negative Effect on Our Business and Results of Operations .”

Our business operates in a market in which numerous sports and entertainment opportunities are available.

In addition to the NBA, NHL, AHL and NBAGL teams that we own and operate, the New York City metropolitan area is home to two Major League Baseball teams (the New York Yankees (the “ Yankees ”) and the New York Mets (the “ Mets ”)), two National Football League teams (the New York Giants (the “ Giants ”) and the New York Jets (the “ Jets ”)), two additional NHL teams (the New York Islanders (the “ Islanders ”) and the New Jersey Devils (the “ Devils ”)), a second NBA team (the Brooklyn Nets (the “ Nets ”)) and two Major League Soccer franchises (the New York Red Bulls and the New York City Football Club).

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In addition, we also compete to varying degrees with other productions and live entertainment events for advertising and sponsorship dollars.

The amount of revenue we earn is influenced by many factors, including the popularity and on-court or on-ice performance of our sports teams and general economic conditions.

The amount of revenue we earn is influenced by many factors, including the impacts of COVID-19, the popularity and on-court or on-ice performance of our sports teams and general economic conditions.

In particular, when our sports teams have strong on-court and on-ice performance, we benefit from increased demand for tickets, potentially greater food and merchandise sales from increased attendance and increased sponsorship opportunities.

When our sports teams qualify for the playoffs, we also benefit from the attendance and in-game spending at the playoff games.

The year-to-year impact of team performance is somewhat moderated by the fact that a significant portion of our revenue derives from rights fees, suite rental fees and sponsorship and signage revenue, all of which are generally contracted on a multi-year basis.

Nevertheless, the long-term performance of our business is tied to the success and popularity of our sports teams and our ability to attract other compelling sports content.

We own a controlling interest in CLG, a premier North American esports organization.

The year-to-year impact of team performance is somewhat moderated by the fact that a significant portion of our revenue derives from media rights fees, suite rental fees and sponsorship and signage revenue, all of which are generally contracted on a multi-year basis.

Nevertheless, the long-term performance of our business is tied to the success and popularity of our sports teams.

In addition, due to the NBA and NHL playing seasons, revenues from our business are typically concentrated in the second and third quarters of each fiscal year.

The concentration of our revenues and expenses, however, may be different due to the effects of the COVID-19 pandemic.

We own a controlling interest in CLG, a North American esports organization.

Due to the nature of esports, CLG competes with other teams across North America and globally.

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See “ Item 1A.

Risk Factors — Risks Relating to Our Sports Business — Our Sports Business Faces Intense and Wide-Ranging Competition, Which May Have a Material Negative Effect on Our Business and Results of Operations ” and “— Our Businesses Are Substantially Dependent on the Continued Popularity and/or Competitive Success of the Knicks and Rangers, Which Cannot Be Assured .”

Competition in Our Entertainment Business

Our entertainment business competes, in certain respects and to varying degrees, with other live performances, sporting events, movies, home entertainment (including the Internet and online services, social media and social networking platforms, television, video and gaming devices), restaurants and nightlife venues, and the large number of other entertainment and public attraction options available to members of the public.

Our businesses typically represent alternative uses for the public’s entertainment dollars.

The primary geographic area in which we operate, New York City, is among the most competitive entertainment markets in the world, with the world’s largest live theater industry and extensive performing arts venues, 12 major professional sports teams, thousands of restaurants and nightlife venues, numerous museums, galleries and other attractions, and numerous movie theaters available to the public.

We also have significant operations in Los Angeles and Las Vegas.

Our venues and live offerings outside of New York City similarly compete with other entertainment, dining and nightlife options in their respective markets and elsewhere.

We compete with these other entertainment options on the basis of the quality of our productions, the public’s interest in our content, the price of our tickets, the quality, location and atmosphere, including the nature and condition of the setting, of our venues, our service, the price, quality and presentation of our food and the overall experience we provide.

We compete for bookings with a large number of other venues both in the cities in which our venues are located and in alternative locations capable of booking the same productions and events.

Generally, we compete for bookings on the basis of the size, quality, expense and nature of the venue required for the booking.

Some of our competitors may have a larger network of venues and/or greater financial resources.

In addition to competition for ticket sales and bookings, we also compete to varying degrees with other productions and sporting events for advertising and sponsorship dollars.

See “ Item 1A.

Risk Factors — Risks Relating to Our Entertainment Business — Our Entertainment Business Faces Intense and Wide-Ranging Competition Which May Have a Material Negative Effect on Our Business and Results of Operations ,” “— The Success of Our Entertainment Business Depends on the Continued Popularity of Our Live Productions, Particularly the Christmas Spectacular , the Decline of Which Could Have a Material Negative Effect on Our Business and Results of Operations ,” “— The Geographic Concentration of Our Businesses Could Subject Us to Greater Risk Than Our Competitors and Have a Material Negative Effect on Our Business and Results of Operations ” and “ — Negative Publicity with Respect to Any of the Existing or Future TAO Group Brands Could Reduce Sales at One or More of the Existing or Future TAO Group Venues and Make the TAO Group Brands Less Valuable, Which Could Have a Material Negative Effect on Our Business and Results of Operations .”

Risk Factors — Our Business Faces Intense and Wide-Ranging Competition, Which May Have a Material Negative Effect on Our Business and Results of Operations ” and “— Our Business Is Substantially Dependent on the Continued Popularity and/or Competitive Success of the Knicks and Rangers, Which Cannot Be Assured .”

As of June 30, 2020 , we had approximately 450 full-time union and non-union employees and 430 part-time union and non-union employees.

Approximately 52% of our employees were represented by unions as of June 30, 2019 .

Approximately 13% of such union employees are subject to CBAs that were expired as of June 30, 2019 and approximately 36% are subject to CBAs that will expire by June 30, 2020 if they are not extended prior thereto.

Labor relations in general and in the sports and entertainment industry in particular can be volatile, though our current relationships with our unions taken as a whole are positive.

We have from time to time faced labor action or had to make contingency plans because of threatened or potential labor actions.

The NHL players and the NBA players are covered by CBAs between the NHL Players’ Association (“ NHLPA ”) and the NHL and between the National Basketball Players Association (“ NBPA ”) and the NBA, respectively.

Both the NHL and the NBA have experienced labor difficulties in the past and may have labor issues in the future.

Approximately 11% of our employees were represented by unions as of June 30, 2020 , all of whom are our players.

With the ongoing uncertainty due to COVID-19, earlier this month, the Company implemented cost-reduction measures.

These measures included workforce reductions, limits on third-party vendor use and additional cuts to discretionary spending.

As of August 21, 2020, due to layoffs as a result of the COVID-19 pandemic, we had approximately 420 full-time union and non-union employees and 430 part-time union and non-union employees.

There are no union employees subject to CBAs that expired as of June 30, 2020 and no union employees subject to CBAs that will expire by June 30, 2021 if they are not extended prior thereto (although the NBA and the National Basketball Players Association (“NBPA”) currently have the right to terminate the CBA through October 15, 2020 (unless extended)).

See Note 21 to the consolidated financial statements included in Item 8 of this Annual Report on Form 10-K for summary of the principal aspects of the new NHL CBA and revenue sharing plan.

Labor relations in general and in the sports industry in particular can be volatile, though our current relationships with our unions taken as a whole are positive.

The NBA players and the NHL players are covered by CBAs between the NBPA and the NBA and between the NHL Players’ Association (“NHLPA”) and the NHL, respectively.

Both the NBA and the NHL have experienced labor difficulties in the past and may have labor issues in the future.

On June 30, 2011 the prior CBA between the NBA and NBPA expired and there was a work stoppage for approximately five months until a new CBA was entered into in December 2011.

The NBA CBA expires after the 2023-24 season (although each of the NBA and the NBPA has the right to

terminate the CBA effective following the 2022-23 season).

In addition, the NBA and the NBPA currently have the right to terminate the CBA through October 15, 2020 (unless extended).

On September 15, 2012 the prior CBA between the NHL and NHLPA expired and there was a work stoppage for approximately four months until a new CBA was entered into in January 2013.

The current NHL CBA was set to expire on September 15, 2022, but the NHL and NHLPA have recently agreed on terms by which the CBA will be extended through and including September 15, 2026 (with the possibility of an additional one year extension in certain circumstances).

The NBA and NHL playoff games for the 2019-20 seasons have experienced postponements due to player, team and/or league protests and decisions .

See “ Item 1A.

Risk Factors — General Risks — Organized Labor Matters May Have a Material Negative Effect on Our Business and Results of Operations .”

Financial Information about Segments and Geographic Areas

Substantially all of the Company’s revenues and a significant majority of assets are attributed to or located in the United States and are primarily concentrated in the New York City metropolitan area.

Financial information by business segments for each of the years ended June 30, 2019 , 2018 , and 2017 is set forth in “Part II — Item 7 .

Management’s Discussion and Analysis of Financial Condition and Results of Operations ” and “Part II — Item 8 .

Financial Statements and Supplementary Data — Consolidated Financial Statements — Notes to Consolidated Financial Statements — Note 19 .

Segment Information .”

Risk Factors — Organized Labor Matters May Have a Material Negative Effect on Our Business and Results of Operations .”

Financial Information about Geographic Areas

Substantially all of the Company’s revenues and assets are attributed to or located in the United States and are primarily concentrated in the New York City metropolitan area.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business