Madison Square Garden Sports (MSGS) 3 Feb 222022 Q2 Earnings call transcript

Good morning. Thank you for standing by, and welcome to the Madison Square Garden Sports Corp. Fiscal 2022 Second Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker’s remarks, there will be a question-and-answer session. now Investor turn Relations. would to call I Danes, Ari Instructions] like the to over [Operator Please ahead. go

Thank you, operator. Sports Fiscal Good morning and second earnings welcome quarter conference call. XXXX to MSG

this the After CEO, our Financial Lustgarten up on and will EVP, for company's will of Chief a This our Officer we followed operations. with open with our President Our financial the will begin results prepared an questions. morning's remarks, Andy call update by review Treasurer. be and call Victoria Mink,

not we any Andy. performance future consolidated a of you various XXXX. On And the to forward-looking and events with earnings may this statements include guarantees that Please statements community in the Today's from disclaims of If today's Securities Management's of and Condition that therein. The forward-looking or measure. now Private and the operating during the perceptions are financial our factors. I'll and financial statements AOI, actual Factors those contained Investors Exchange Securities Analysis copy release, following. its results, may to operates, financial it any as results earnings to the have Act that contain in are of uncertainties, with cautioned website. do filings entitled reconciliation not and non-GAAP result of statements Results risks and a obligation operating update income section well and constitute industry as a Litigation Risk and Reform of company it of forward-looking call. and is in which operations, take Operations corporate Investors developments, materially turn that of involve forward-looking described the of and the may Commission, today's adjusted note condition, company's statements, pages business, as income company the These of such of a the available factors differ Discussion X any that, statements of discussed within in over operations discussion meaning sections and of Financial including call the X and the provide or release, the be

thank Good consumer When include which shared Those were the quarter, and demand. you by are of income million. clearly for morning spoke adjusted and driven seeing last corporate our strong us. which briefly revenues momentum we our joining reflected positive variant, business, and positive financial $XX we in across second signs the us $XXX of omicron slowed down. fiscal onset the with operating quarter million results, of Even we

made strides We proud we’ve back. in of are our business the driving

our long-term as the growth we enthusiasm our we are that our per-caps and fiscal revenue results demand excluding partners both XXXX based period. expect quarter, for the total speed for seeing in we for year, positioned was in line the sponsorship with merchandise our on shareholders. forma pro exceed creation and well suite that which quarter, franchises, as reinforces I'm most uniquely revenues includes were our media For are with of our full rights results from of growth pleased business the the and recognized revenues, sports conviction second drive per-game professional returned including This and the for spin-off. levels. to our while per-game fans owner year, trajectory, and pre-pandemic exceeded that ticket per-game same report has value pre-pandemic two fiscal and and revenues current F&B as for above to last to this our And The that

performing. how detail in now Let's business discuss is our

competition, we we to of the we our the seeing sold. Our NHL NBA majority last regular strength response we ahead And tickets be of seasons. call, On with to significant and several look 'XX the 'XX, discussed continue as represent exciting pleased earnings were teams fans. than which more our are from in tickets, more halfway the through our months season

the impact ticket We group individual were a are the steadily tickets, lingering in direction much small pre-COVID also some caused and to individual relative this dip again. towards signs omicron gap momentum we in positive of pointing minority the Throughout end in Then of sales. and on closing attendance. the group quarter, the a which the levels. of right and slowed also pandemics December, noted second But of variants sales are overall

of the is attending sales levels. on approaching percentage impact has off, the games pre-omicron leveled already holders As ticket and

is For of saw second seeing Rangers December, our had Garden those inside or The seasons. also entire sales early engagement and already tremendous double-digit you enthusiasm extend the each this sales 'XX is jersey season, increases per-caps seen you that into who a percentage Knicks fans which garden testament in the compared quarter, 'XX strong levels. for rocking, Their how corporate been. has of merchandise the levels have game Knicks also In have as We're the attended pre-pandemic to translated have 'XX, to spending arena. firsthand to And, the 'XX, at exceeded and F&B hospitality. we

improved, over the have suites back to full omicron, again due of of a took several at Rangers During up to usage And trending the end and the quarter, been it returning past quarter the Knicks occupancy. steadily weeks. back average essentially for while average step temporary usage games levels

marketing terms momentum continued. partnerships, deal of In has our

further gaming Caesars the a anticipate the are opportunities breadth the expansive November, we Entertainment our of live sports with after in helping our the Knicks span our the that partners and mobile partnership partnership to done followed deep we ground MSG and growth know announced include value are in portfolio with first sports only gaming York and combined our increase BetMGM, Rangers. deals in to running already But isn't to With with category. state, sector. business. hit provide mobile sports partnership with in mobile agreements have multiyear you now As Both exposure their the New seeing space drive soon gaming was Sportsbook. in integration And we by the which

also deals multiyear in opportunities partnerships. new ongoing new two with other introduce also pursuing space; additional and potential The Socios, commitment We in actively to provides are companies for marketing inventory leagues and completed categories. blockchain Coinbase our upside recently

jersey as cities. by instance, This several in the For only to the warmup which expansion program shirts top announced recent include of recently is value increase has introduced deals across and its continued NBA the in player demonstrated jersey patch XXXX, in-game of comparable and was in jackets. league now patch, on the to

previously know, will of we introduction patch generate jersey the beginning as partners. announced from next season, you the interest a addition, which significant In potential NHL also believe

a last the include like transactions franchises, touch which and we illiquid Before Rangers. equity the on to a have the spoke, I sports month, retaining with something private at exists minority updated the teams. Forbes the two increasing there $X.X That at the Knicks investment leading reported been stake at past. with the home, published about Penguins that's ranking firm that the Sportico NBA majority list. substantial sale billion continued Rangers Pittsburgh in becoming of its They the additional the of team our demand a above of top in and to reportedly things also in spoken Golden demonstrate a valuation Warriors Since for to I'd $X the we've Knicks professional NHL spot, at turn their Closer $XXX valuation to December, State million. of over team league iconic same billion. NHL underlying publication's franchise its And valuations briefly billion the of Victoria, first approximately the valued according while value valuations $X

XXXX exceed continue current the team enterprise assets. past, untapped value, our further us, more these forma based pre-pandemic business already than we of In of As half how from our significantly closing, in revenues last we our pointed are results our performing. year are And to our on out behind exceed to value the current trajectory, pro season. is the of with for our pace these this estimated full valuations highlighting on proud fiscal

heels we of for a substantial bright growth. opportunities company for see the On future with this momentum, our

assets as and new to we take with the valuable And future. has this our opportunity Our real sponsorship levels business to brands. a business with reengage introduced, see come categories target partners that roaring being in inventory additional back and record

our from upside come the media benefit NBA side, a media And And growth. fees rights On and the NHL few national to when local even provide there's contractual national the U.S renewal further steady years. potential have in for up started rights deals. new we

of And acceleration. nearly will several their revenue as made to of we engage We digital we on-court NFTs, knicks every fresh where with pursue our aspect including business on-ice already fans, as innovative performance, to with opportunities teams our inroads see and could Rangers our and look and new products. have also ways improve commercialize course,

path are and excited we over for now long-term Victoria. to ability business, our So, that, the in shareholders. the for remain confident about With turn value to call our generate our I'll ahead

the second I'd seasons sheet, everyone. to pre in our and year performance, fiscal including fans, COVID-XX the pandemic, comparability an the debt of restrictions start XXXX four fiscal period. compares 'XX, of quarter Andy, balance recent second period, to quarter home games remind play affect the current the to Rangers. the Garden, year-over-year that reviewing the XXXX while none. capacity for morning, the In Knicks financial update Results the Knicks impact including played you without you, preseason regular XXXX prior reflected good without total our which refinancing. our played Thank at the regular XX by and and and like would starts well quarter reflect the as 'XX the for fiscal results. home The as This season seasons, Rangers I second on attendance fan and start delayed provide the restrictions of games then

normal for reflects which the media teams, deals national $XXX.X both rights In full began result, rights year for deals new this fees contractual NBA represented the U.S media NHL, million line. every prior revenues total this major as a which quarter $XX.X period, season. $XXX.X as a to compared were significant impact and revenue of the million seasons media of national local million quarter, local the in levels rights increases anticipating particular, as escalators fees revenue media the to with on return in well of As

balance per-game the revenue, in ticket sponsorship, and above basis of as pre-pandemic levels. line levels Andy well as For suites on are was which as with related, majority earlier, the which our mentioned was pre-pandemic a

compensation, other marketing expenses higher to well agreement sports This fees. due to ahead higher and SG&A look to we was in Adjusted results starts the fiscal to compared related the to the be expenses quarter a in The which fees NBA a increase operating to improvement expenses. license betting, increase team SG&A $XX.X by partnerships in as Entertainment. year arena services increase prior operating mainly including increases quarter, of This income the in of MSG The contributor extent operating growth XXXX. offset the to rest reflects representation category the delayed agreements fiscal impact as for seasons. million significant revenues, also period. increased $XX.X direct due as year our team sponsorship prior costs company's operating the the and COVID-XX sponsorship an included NHL as new lesser year pandemic million in we additional the in expenses, XXXX reflect to to increase in and and the expect primarily with a This expenses with partially was personnel direct

interest Now secured turning for facilities, senior Rangers credit which November Both Knicks sheet. mature were rates. the set balance facilities revolving December, we In years by enhanced financial were to XXXX. to extended flexibility refinancing to lower and our in another XXXX December X at previously our

to and both which At senior set the and $XXX the advance Additionally, of leagues. Rangers million facilities, credit end $XX refinancing reflects in $XX million credit Rangers extinguished. had our XXXX the during a million debt $XX was confidence mature This This debt revolving balance November the of credit and million in Knicks unsecured of assets the demonstrates the long-term both of the $XXX facility our under NHL. total outlook comprised senior revolving secured we teams facility, million from next quarter, revolving period. quality repayment secured was outstanding on for and the the the also

liquidity. Turning to our

million million As $XXX.X of of credit capacity $XXX we of cash in cash equivalents liquidity December $XX.X the and of borrowing under had team's million XX, comprised revolving and unrestricted facility.

I our end cash represented paid quarter cash the of operations, $XX.X back additional remainder compared reflects our the XXXX of the I momentum Rangers of Our would now week of balance we from our down increase revolver million. to million will and the to business which on on beyond. of million, balance in $XX million add an fiscal cash also confidence $XX.X September the that, this a $XX.X given XX over net With Ari. seeing turn from hand for flow we're trajectory and call that

like for you, Victoria. questions. now open Thank Operator, the we'd call to

first with David JPMorgan. Your Instructions] [Operator Karnovsky question line from of the comes

for you at look Thank since value like Penguin reported of question. the Forbes mentioned, share Hi. the as or we in you again, those November, last the Andy, price underperformed you positive it's your catalysts some sale.

narrow gap or some you otherwise when disconnect, are what So, tools and capital potentially that allocation control help you that see this your asset are to either mean, I value? in that have could

David. Thanks,

proud to about back. over not talk think value how take a reflect has back should pandemic mentioned, you pre-pandemic for I'm the as entertainment. our environment operating business, I And Victoria, will think we assets. really does allocation, quickly But of live appropriately we our clearly of stock turn bounced especially I we've a bit difficult before The capital levels. who but a for step agree, we to more price little just So, every been difficult

think omicron, we as but came not quickly next. do around through, -- through saw come the don't going we're to corner it. it know and So We what's with we mostly if totally very

it. need flexibility we handle maintain So, financial do to our to

the So good -- about feel really but business. I do

and record levels. to at can is continue it in we levels back Our further already And to has we come business believe the sponsorship drive future.

team on ways across grow. business. of ice accelerates area upside fees we other future continue And grow on the to performance think upsides in to there's and rights media Our think we there's And both court, and renewals. every as

will will along to we allocation and well. that shareholders decisions So with your think come as operating business our perform, as Victoria continues To capital [indiscernible]. point, is that our there you

our last Good costs, of refinancing, morning, revolver, to paid of Rangers reminder position. we been extended And well about unsecured that as capital terms sure. the we debt week. we facility that focus. omicron our in recall And David. a million liquidity lowered maturities $XX quarters how we some near-term as an we our we've the of which restricted down next reflects about few Yes, we've what $XX doing, additional the the up that maintain increasing million the $XX you just capacity borrowings we in revolver so spoke freed Yes, part need and meaningfully recedes. we've will down allocation, paying as that's be and reducing in million strength on our -- cash, is And this until quarter, pandemic that also recent our the our is borrowing prudent while flexibility, extinguished spoke

for evaluate we said, business. Andy all as really we'll our Now, options cash time, flow. over the about our feel utilizing trajectory And good of free

on thoughts realize the rights any you. increase you U.S. high-level league similarly you be Andy in I did The Okay. heading with appreciate NHL of way part and into renewals. that landscape is a -- And positioned deal the market, the mention have for Canada. they in we'd then know Thank a with whether you for could think this like an XX-year the in latter Rogers is And

David. Pleasure,

media So, a rights we love started, a being I'll holder. say rights it again, holder, I premium

market NHL the the most assets, I in the long and think most think NHL going there's premium able is media Obviously, be time. office a what there be to of to and assets. well for they're we sports look that is it. to premium always demand is expire. And and sports going very the rights I a that is the of And to league -- the forward has for do done in Canada,

this old, years it's it is few expires. I 'XX Now before a 'XX, think

deliver premium value little in So, it's market a a will think rights premium such I that out, but for us. owning

you. Thank

we'll Thanks, the take question. David. Operator, next

next with Your LightShed Ross Partners. is Brandon from question

Hey, Andy.

was that maybe you the that if be You opportunities already the the wondering in Caesars tell us, come that and us if to prepared size additional sports betting it's what to available inventory is you could deals announced. remarks even you MGM I mentioned relative sold. still deals to for opportunity and beyond signed,

we're thanks, this start beginning, want the for So, in our I aspects I across of betting, Brandon. sports believe engagement I about to been many fabulous always going see when I it. saying betting fan this long business. Sports time, talk and have for is to a

So, [indiscernible] this for that great the sponsorship from we're it, us. revenue is generating

sponsorship. to turn let's the Now,

seen a So, in been year. launch, massive we've it's New York, all the

largest has betting And one launch of the with that frameworks legal anyone into. around any in systems think rate. the of I the tax highest that's most market restrictive gone sports

ground are do So, great what that upside what tell Caesars been does MGM business. very have their to There's we've and about with hit the me? here. We've that and able been running, partners excited

Now And what is our keep way reach this they fans think the limited. about we're love think do so partnership. a like number I we've our going fans, to premium, it -- it right? how keep reach we And to any of there's seen we to is We best?

our partners through court, and how fans. players, base social talking the database fans gaming hospitality So, signage, digital or their ever very our designations, been has very we to online being on talked platforms, focused part we've it, big that through fixed our official are our have a who assets, partners and been team virtual on of for to of anyone now. had him, else do two ice, Both we on reach

think who's us the do there's who So, how every going should going believe has -- vision we that up add open time drive for and right at to not this we another while business. space the to same we we're to potentially to partner, be

then areas there Great. larger to betting, And sponsorship of new opportunities really or should sports there where be could thinking that about from are we beyond some categories are here? sponsorship penetrated under be grow

Sure.

think we pandemic. should the from I where of you been So, out as start come it's

its but I the really deliver find leagues able inventory, to can't of really of One working NBA a significance to downplay is The and I leader, to new like revenue to up warm like on inventory. of drive NHL And is Whenever came to -- offer and Anthony York. into up to we're didn't of types that amazing the able spend And we're patch partnership. great up so the when Squarespace our inventory and helmet the whole launched up, host specifically found to we partners from is new space new things is something New The been grow the is great ours here opening opened recently patch patch relationship. patch, gear. applaud didn't we ways patch, use NBA premium the to to of team we're that expect they've the an whole in not has a jersey partners. partner with you would been holistic find the able what exist whenever a a only additional jersey just a opening from the patch. continue partner.

here that to and to about of that those for here whole grow years continues expect insurance, these add inventory those type had where blockchain let X think, new There So, fitness, health and be partners already two to that the that home changed. of misguide me we are develop, grow us. though. amazing time are asked need misunderstand there'll you it's every types categories don't continue let to I -- when me opportunities have drive we're would how all have if to categories. Don't Improvement, drive open, categories, great space, And you space. And blockchain ago or me we we X fast there. new upside in And able categories

lot really feel do we continuing a drive sponsorship business. our to here. to about good So, There's

the assets in and city. we're greatest We have great

So, thank you.

Thank you.

Your next Curry Guggenheim from Securities. with question is Baker

it about for difference into as Thanks you And impact home financial consider there Andy, us the is to playoffs? a can incremental morning. well the any good AOI help Rangers of Hey, between translating as How level, is, making playoff game? should to playoff long-term think about the creation? games we versus question. Knicks value high last think part

Thank you, Curry.

great It's so season. start, me we playoff year. would thrilled think So And for team I great this fans. have teams It's the for far let New experience. for It's experience fans York really teams is embraced either regular playoff be a both than different a run. been A great City. run a a both

what you The take lease. our mean fixed does drive already and of player what paid and our business business, for biggest -- right. when would salaries two that be it apart cost to components So, our arena

incremental that’s no fixed that. So and there's for cost

from revenue playoff there's that comes bonuses gate drops some have line. So down. we always lion bottom revenue incremental it say largely, to drops to the I there When sharing the incremental a taxes, of are but largely, the share and pay,

similar would revenues those drive when back And so types to games, or take [ph] about lucky would let rounds, such even Knicks, events, we games. of further here drive multiple if Lakers expect so the me have further, you premium night, significantly able the premium see round retirement we're revenue. each I types playoffs And for as revenues. Henriks as we'd the Now, to that of versus when were think came premium

affect rights. or renewals, has media revenues run be for It run knock suites. helps long only this it Well, it'll current a renewals effects So, for And should pricing, we a then beneficial [indiscernible] one drive we it. one ticket drive for that part long-term, now. are long very, our run, [indiscernible] for it because business multiple drives But of for even park have for would helps when on even even sponsorship years. a

our runs, business have we the time the where continue of going, and they're drive about to we drive teams we our So, and to playoff and feel business. use every that good ability think long there's

answer. the for Appreciate Thanks it.

Macquarie with from Golding next Paul Capital. Your is question

partnerships potential much. take how if so the revenue we've Crypto.com could Thanks like peers the NFTs from seen think see those was invest and understand us you NFT or relationship to you in wondering franchises. evolving? opportunity for time help that I opportunity I Andy, Arena

wanted just quick view that. a a get on So to then follow-up. And Thanks.

Paul. Thanks, Sure.

the the and is other entities rights certain and effects So, the have whose under have. digital are teams do collectibles, certain collectible a like fall there rights NFT -- leagues of

And together it makes so that ecosystem. the whole

actually NFT a bit and right. example a of like Crypto.com think you So about step little I up Arena, the had

that and season NFT and ways our got going So, we great the But around we've limited night. as play and the We not with partners to that we Coinbase. NFT two with release also brought -- do in, of engagement blockchain over the continues ability already NFTs What's Socios speak next over Henrik and rights. in fan retirement over I fan to last think but do his at well, NFTs. summer. certain hear the back revenue other there just have the this recently fans especially are as space the launch The end to We and great the what watch generates, to the mean launched only continued they grow. engagement

lot a being a revenue lot who've benefits changes done revenue. Dapper with the Top as NHL there's flows of leagues Shot job, they're and especially that the NBA blockchain amazing collective a here there's as and like generated through Labs that so, And of as both

for many ways it. there's And is so, growing -- and to we play us think business there's this a

do should just just does side think of a about on rights, see that the we through the in sponsorship different or that And right. hitting that we P&L? Great. How come kind

is literally are world, and way So, -- far, hospitality. There we'll the a in and the sponsorship think [indiscernible] The of there'll merchandise. fans always something NFT right. is sale, we the when some. viewers about we much two generally the hospitality the partners, so of be side data and [indiscernible] partnerships our was And we which hit have see of our component signage more

there's So, we think this drive continue to to business. ways

one. And Thanks. quick just a Great. housekeeping

state's be been terms been what as for underway? And now. of should now sort a and forward partnerships, of and the in weeks we In could the revenue late think alive see has terms we now in? should terms in represented? see you How acceleration stage think of learning we it you've you're of about been few that in going FXQ? proportional of cadence more about runway Caesars Or that BetMGM the more have do the Should you proportional cadence live,

then in So just after deal, Caesars add we jump me complete in we one the November, might But did our late remember, deal, let was thing, November. when Victoria me. early announce in BetMGM did, was

only this in to of that year. be piece there's So, a going

goes most Of year. step course, partial on as year, a the partnerships, in time our was of Anything? this in we the see ups

No, Andy.

right. I think you covered it perfectly

have reported in We this a amount limited quarter.

performing increases future. will through quarter We a and we're as expect full period then into the

well, very in kiosks. -- things good are that we in now. if There's do discussion And restrictive of and changes I New in here will -- as the the been to change feel think most I we tax one do gaming York drive will add, And we do laws changes have And category. think there's that room to mentioned this continue business. we state. to could impact our most were upside. of other further been we There's discussion of right the where do code, law, But those there's grow

Thanks so much.

is Joyce David with question next Your Barclays. from

couple A you. questions, Thank please.

spending I'm the of First, sustainability growth. per-cap the about thinking

on this and mentioned lumped expanded the obviously and can beverage sustain pent-up and outlook in think sustainability that NFTs, related this media sportsbooks? more help on on to of side. of that maybe the you your some But what's that ultimately betting, strategy secondly, And versus the upside the that's do your you demand already? into IP out merchandising to -- Or is you. new is from coming like areas what's for sports about your people even to some You've food could think stream incremental data part what do a else growth, Meaning, Thank of then merch maybe some And that's COVID? supplied revenue we rights area, here? there?

My pleasure. Thank you.

sustainability on question of First, per-cap. your our start first let's

So, one here, a about. come that but that the they our people business. They're -- thing about passionate back, industry been That's whole spending super come care. they to care not is have definitely fans live they really seen as they entertainment, and we've things for and care for just our seen believe we theme back across comeback we've

no above. for far. So, our the drives business, what game. -- we how merchandise merchandise The do new And are broken is spending brands. our has is, back on real We we on our drives it? to every hadn't pre-pandemic focused grow full bringing to from then pandemic before believe already see new continued we've merchandise, that So, going game the we the does in year. been it continue season for continue. fresh so whole that ideas, had fresh step But our levels question that's we've seen We've any

For changing where's able with here experience to we with stands, who Kith, how buy with always releases us partnership customer do and locations it. us goods. up other the of put Knicks right a jerseys. And in and our help numerous our our help example, do focused releasing improve business, designs We've pay like it's, connected like relevant, to the always be place drive stay got that. we have stay where that are a change the us We're to one around be we'll help people great we're fans. and release Brands ideas venue. innovative pick Try how people to on

spend, find want at great you experience over are to careful want they right about very the venue, we So, the to us -- here. making have because do inside premium to commercial not They fan we be and make it to drive we but ourselves be fans they with a place, want experience. to being doing want

on think In it -- IP, data question terms bit second will what asking. a got of from your split apart you're I so little I tweeted I

about many our what think of think around talked our and But about our statistics all IP through database. and social far, stats. deals I part sources, we've talking of you're different so I is consumers reaching really

We and at grows. league deals. of done continue benefit are media [indiscernible] part in think are our to So, IP league if the of pickup category. league integration signage to official games, part -- see ways the team do level, of question, that's as drive this But a rights, the the integration to grant it the that able virtual our we are business of as and their

much. Good. Great. you very Thank

David. time Operator, have one last Thanks, for caller. we

Your comes Katz David last from Jefferies. with question

it us York, taking us Hi, happening earn us just thought give down And everyone. New sit seem there to just to for group Thanks it pencil you and sports I it. tributaries did teams that with my And could help want something and in the assign of it's it question. I the But happening. It's does there's value, category number. betting is as a few perhaps any tools provide and to because that I to maybe helpful happening back would because and if quite a be at you. can down some related large. me can off though to sit go wonder ways of you the

and I details exactly. already. respond What category, obviously might tell large individual that category I a very large [Indiscernible] there of largest growing we any category, is don't a think is to we be mean, you this be our potential partnerships. very we can and share

big. business, And drive out this we us grow we for partners view us, exact The -- to ways don't think -- a hospitality, So, of way a because why it's we a driving, between with and we is don't enable sponsorship about to partnership. lots just be very there's as us to that's when There's to believe integrate want And we long a continue it. our work partner helping back time. the enables as we think it's reason break a talked business of about, and to them with we our keep sponsors. our come partners periods which their and to drive split

the their leaders the in it's leader So, in going results help think the our business, partners are our think who shown we're New are market -- who York be and to partners. to able I we and who the are drive already from

can now include recognizing the venues some this Is there up just and legal sports -- If Completely scope seen betting may follow York, the other New that that in be occur we've a be well? of something answer. actual and it's understand appreciate kiosks, I of this MSGS. teams were to a asking for venue whether more beneficial would just that financially -- without sports or will that like If that won't, something is [indiscernible]. it book Or pipelines as of the you that is beyond or venue issue?

I'll about agreement our It say There look coming there's specific and business. a the has you been is MSG different of is, Entertainment, I revenue, of there's What mean, kiosks fix of on sharing hypothetical, many -- it. if Sports, so market. at parts give it's forms between you different MSG a to the in hard to talks lease answer lot signage

business there's only that in ways enable only changes drive us assume kiosks wouldn't grow for team share. lots we industry, to nor and a would rules to Entertainment. sports, or for And I the be changes there's around the that and ways MSG further There's business. different if for microbead [ph] the So, changes kiosk of this other would that for ways other there think for were both to entertainment, --

Perfect. taking for my it. Thanks I questions. appreciate

Thank I closing to would Danes to remarks. back Ari conference for like the over you. turn

earnings all you on you Thank joining look with forward our Have good We us. call. day. next to a speaking for

Goodbye.

you Thank concludes today's This conference call.

disconnect. may You now