Brandon Ross

Brandon Ross asked about the expected number of Sphere expansion projects (full-size vs. smaller scale) in the next few years and the management team's capacity to manage multiple projects simultaneously. He also inquired about the impact of elevated construction costs on discussions with potential partners for the Capital Sphere.

Answer

Executive Chairman and CEO Jim Dolan stated the goal is to pursue as many profitable projects as possible, with the management team designed to handle 5-6 projects concurrently, leveraging separate financing. He added that elevated construction costs have not impacted partner conversations, as the financial model remains robust, and the company is exploring new construction methods to potentially lower costs.

Brandon Ross inquired about Sphere Entertainment's expansion strategy, specifically the number of full-size versus smaller-scale Sphere projects expected to begin in the next few years, and the management team's capacity to handle multiple projects simultaneously, considering the capital-light approach. He also asked if elevated construction costs for the Capital Sphere project (estimated at $1 billion) have impacted discussions with potential partners.

Answer

James Dolan, Executive Chairman and CEO of Sphere Entertainment, stated the company aims for as many profitable projects as possible, limited primarily by management capacity, expecting 5-6 projects in the next few years with separate financing. Regarding construction costs, Mr. Dolan confirmed no impact on partner discussions, as the business model remains robust, and the company is exploring new construction methods to potentially lower costs below the $1 billion estimate.

Asked for an update on capital return plans, including potential share buybacks, and how the situation with MSG Networks influences these plans. Also inquired if selling a minority stake in the teams is still being considered.

Answer

The company's capital allocation priorities remain liquidity, maintaining a strong balance sheet via debt paydown, and opportunistically using cash, with all options including buybacks open. The RSN situation is being evaluated. Regarding a minority stake sale, while it's never ruled out, there is nothing to report at this time.