Brandon Ross • LightShed Partners

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EVP, CFO & Treasurer Victoria Mink addressed capital returns, stating that while the company's liquidity is strong and they have greater clarity post-media deal, their priorities remain unchanged, though a capital return program isn't ruled out for the future. COO Jamaal Lesane responded to the minority stake question, acknowledging high market valuations and the belief that MSGS stock is undervalued, stating that while they would never rule out a sale, they have nothing to report at this time.

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EVP, CFO & Treasurer Victoria Mink stated that while the company has greater clarity on capital allocation, a return of capital program is not ruled out for the future. COO Jamaal Lesane added that while they see their teams as undervalued, they have nothing to report on a potential minority stake sale at this time.

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Victoria Mink, EVP, Chief Financial Officer and Treasurer, explained that a reduction in rights fees does not have a one-to-one impact on cash flow due to offsetting factors like lower revenue sharing and taxes. She affirmed the company's strong liquidity position, citing over $100 million in cash and $250 million in available borrowing capacity on the Rangers revolver, and expressed confidence in their ability to access other funds if necessary.

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EVP, Chief Financial Officer and Treasurer Victoria Mink stated that the company's liquidity position is strong, with over $100 million in cash and $250 million in available borrowing capacity on the Rangers revolver. She noted that a reduction in rights revenue is partially offset by lower revenue sharing and taxes, and expressed confidence in their ability to secure funds from other sources if needed, despite requiring lender waivers in a potential bankruptcy scenario.

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CFO and Treasurer Victoria Mink reiterated that capital priorities are liquidity, a strong balance sheet with debt paydown, and opportunistic uses of cash, noting the ~$185 million remaining on the share repurchase authorization. Regarding a minority stake sale, COO Jamaal Lesane stated that while they are confident in the teams' value and would not rule it out, they have 'nothing to report at this time.'

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Executive Chairman & CEO James Dolan explained that smaller Spheres will share a similar design and 365-day-a-year operating model with the Las Vegas venue. He detailed a capital-light, franchise-style business model where Sphere Entertainment would not be a primary investor. Dolan also noted that these smaller venues could be built faster, in just over two years, and would play all content created for the larger Spheres.

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The question was not answered due to audio problems. Later in the call, when Brandon Ross was called on again, Executive Chairman and CEO James Dolan gave a prepared statement on Sphere's overall business model, its disruptive nature, and its focus on growth and global expansion rather than returning capital to shareholders.

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Executive Chairman and CEO James Dolan responded that the path to monetizing content like MSG Networks is not yet clear amid the changing media landscape, a challenge faced by all content providers. Regarding cost efficiencies, he stated that as a new business, Sphere has significant opportunities to improve its bottom line through more efficient operations, content production, and scheduling, with substantial improvements expected in the upcoming year.

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Executive Chairman and CEO James Dolan acknowledged a "structural issue" with Exosphere advertising that the company is actively working to improve. He noted seasonal softness in the July-August period but sees strong results picking up. Regarding VU2, Dolan described it as a successful "experiment" and a viable product, though the company is still refining the programming and marketing strategy. He emphasized the long-term value of creating a library of such immersive concert experiences.

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President and CFO Joe Berchtold reaffirmed Ticketmaster's long-term growth prospects, citing international expansion, pricing power, B2B services, and its advertising platform. Regarding AI, Berchtold stated it will be a 'massive change,' driving efficiency in customer service and coding, enhancing B2B pricing tools, and creating opportunities through 'Agentic AI' given Ticketmaster's unique primary ticket inventory.

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President & CFO Joe Berchtold affirmed confidence in Ticketmaster's long-term growth, citing international expansion, increased volume from Live Nation's own growth, mid-single-digit pricing increases, and B2B services. He also detailed AI's role in driving efficiency in customer service and coding, enhancing B2B pricing tools, and creating a unique "agent" for primary tickets, which differentiates it from commodity-based platforms.

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President and CFO Joe Berchtold attributed the Ticketmaster results to a shift in event mix, the timing of on-sales, and foreign exchange headwinds, while noting deferred revenue was strong. President and CEO Michael Rapino stated the company has not yet seen any consumer pullback in ticket demand, sponsorship, or on-site spending, highlighting strong April on-sales.

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President and CFO Joe Berchtold explained the ticket volume discrepancy was due to timing, with strong Live Nation on-sales offset by less activity from other promoters early in the year. President and CEO Michael Rapino addressed pricing by stating that artists are strategically pricing premium tickets closer to market value to capture revenue that would otherwise go to scalpers. He described this as a 'perfect on-sale' model, where most tickets sell quickly while some high-end inventory remains available closer to the show date.

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President and CFO Joe Berchtold projected a strong Q4 and subsequent year for Ticketmaster, driven by stadium and arena on-sales, mirroring 2023's volume. For Concerts, he expects robust revenue and AOI growth. On antitrust, Berchtold expressed hope for a shift to more traditional, targeted remedies and aims to re-engage with the DOJ early next year.

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Mark Shapiro, COO, President & Director, stated the UFC renewal was not more challenging and its timing was a function of negotiating five properties simultaneously. He confirmed they are in the 'home stretch' for the UFC deal and noted that ESPN has not been ruled out as a potential partner, citing recent comments from ESPN's leadership.

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Mark Shapiro, President and COO, explained that the boxing venture involves two separate business lines: "super fights" funded by Saudi partners, where TKO will handle media rights, partnerships, and production; and a separate JV for a regular series of cards (approx. 12 per year). For UFC rights, he reiterated that the company remains flexible, balancing monetization with reach and brand growth, and expressed confidence in the strength of the content in the current market.

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Mark Shapiro, President and COO, confirmed TKO is in its exclusive negotiating window with Disney/ESPN, highlighting the strong market for premium, year-round content like UFC. He stated the company is focused on a long-term strategy that balances maximizing reach and monetization. Regarding boxing, Shapiro detailed a low-risk, value-accretive strategy, noting TKO is close to a deal with Saudi Arabia to produce and promote a boxing league for a significant fee plus potential equity, without committing TKO's own capital.

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President and COO Mark Shapiro explained the UFC's renewal strategy is based on what 'the market will bear,' highlighting the company's flexibility. Regarding boxing, he clarified that it is an 'interesting growth opportunity' but any entry would be done organically and with a partner to fund it, posing no financial risk to TKO.

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EVP and CFO Michael Grau explained that after a year-long trial, the company concluded that its historical in-house sponsorship management model was a better long-term structure. He expressed confidence in the go-forward strategy, citing recent deals with Lenovo and Verizon, and stated an expectation for modest year-over-year growth in fiscal '25, with acceleration expected in the longer term.

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