MSGE

• The Christmas Spectacular production alone generated 18% of Fiscal Year 2026 revenues, and any decline in its popularity could materially reduce ticket, concession, and merchandise sales.
• The business is highly dependent on attracting popular artists and events to its New York City venues, which face intense competition from other entertainment options and venues.
• A repeal of the $45 million New York City real estate tax exemption for the Madison Square Garden Complex could materially increase costs, though the Knicks and Rangers would bear the property tax under the Arena License Agreements.
• The proposed Penn Station redevelopment may disrupt operations at The Garden and the Infosys Theater, and the Company has entered a non-binding memorandum of understanding to transfer the Infosys Theater.
• The Company is highly leveraged with $579 million in total indebtedness, $30 million maturing within a year, and variable interest rate exposure that has already increased interest expense.
• A December 2025 security incident involving the Oracle E-Business Suite system was identified and addressed, but the Company remains exposed to evolving cybersecurity threats and data privacy regulations.

We own the Madison Square Garden Complex, which includes The Garden (with a maximum capacity of approximately 21,000 seats) and the Infosys Theater at Madison Square Garden (with a maximum capacity of approximately 5,600 seats) in New York City, comprising approximately 1,100,000 square feet; and The Chicago Theatre (with a maximum capacity of approximately 3,600 seats) in Chicago comprising approximately 72,600 square feet. Significant properties that are leased in New York City include approximately 367,000 square feet housing Madison Square Garden 24 Entertainment Corp.’s administrative and executive offices with approximately 64,000 square feet of space that is subleased to MSG Sports, approximately 19,000 square feet of space that is subleased to Sphere Entertainment, and approximately 126,000 square feet of space that is subleased to other third parties, approximately 577,000 square feet comprising Radio City Music Hall (with a maximum capacity of approximately 6,000 seats) and approximately 57,000 square feet comprising the Beacon Theatre (with a maximum capacity of approximately 2,800 seats). For more information on our venues, see “Item 1. Business — Our Business — Our Venues.” Our Madison Square Garden Complex is subject to and benefits from various easements, including over the “breezeway” into Madison Square Garden from Seventh Avenue in New York City (which we share with other property owners). Our ability to continue to utilize this and other easements requires us to comply with certain conditions. Moreover, certain adjoining property owners have easements over our property, which we are required to maintain so long as those property owners meet certain conditions.

The Company is a defendant in various lawsuits. Although the outcome of these lawsuits cannot be predicted with certainty (including the extent of available insurance, if any), management does not believe that resolution of these lawsuits will have a material adverse effect on the Company.

• Total revenues increased $118M to $1.06B, led by a $33M rise in concert revenue from more events at The Garden and higher per-concert revenue.
• Christmas Spectacular revenue grew $21M due to 15 additional performances (215 total) and higher per-show attendance and ticket yield, with over 1.2M tickets sold.
• Direct operating expenses rose $47M to $582M, primarily from higher event-related costs for concerts and increased revenue sharing with MSG Sports under the Arena License Agreements.
• Selling, general and administrative expenses increased $38M to $253M, mainly due to higher employee compensation and benefits, including $4M in executive transition costs.
• Net cash from operations surged to $351M from $115M, driven by favorable working capital changes, particularly lower payments to promoters and higher deferred revenue from ticket sales.
• The company had $294M in unrestricted cash and $132M in available credit, with total debt of $579M, and believes it has sufficient liquidity for the foreseeable future.

• A hypothetical 200-bp rise in floating rates would increase annual interest expense on credit-facility borrowings by only $11,578, indicating minimal direct interest-rate exposure.
• A 25-bp decrease in the weighted-average pension discount rate (5.57% at June 30, 2026) would increase projected benefit obligations by $2,820.
• A 25-bp decrease in the expected long-term return on pension plan assets (6.59% for FY2026) would increase net periodic pension cost by $280.
• The Company uses a yield-curve spot-rate approach to measure service and interest costs, aiming to better match liability cash flows with corresponding discount rates.
• No material foreign-currency, commodity-price, or equity-price risk exposures or related hedging activities are disclosed in this section.

The Financial Statements required by this Item 8 appear beginning on page F-1 of this Annual Report on Form 10-K, and are incorporated by reference herein.