MSG 스포츠(MSGS) 2026 회계연도 4분기 실적 발표 콘퍼런스 콜: 닉스 우승으로 매출 증가

핵심 요약

• MSG 스포츠는 2026 회계연도에 11억 5,000만 달러의 매출과 5,870만 달러의 조정 영업이익(AOI)을 기록했습니다.
• 4분기 매출은 전년 동기 2억 400만 달러에서 2억 7,870만 달러로 증가했습니다. AOI는 1,680만 달러의 조정 영업손실에서 3,960만 달러로 개선되었습니다.
• 이벤트 관련 매출은 전년 대비 43% 증가한 2억 70만 달러를 기록했으며, 스위트룸, 스폰서십 및 광고판 매출은 23% 증가한 3,910만 달러를 기록했습니다.
• 닉스는 양 기간 모두 9번의 플레이오프 홈 경기를 치렀음에도 불구하고, 4분기에 전년 동기의 1억 1,520만 달러보다 늘어난 1억 8,200만 달러의 플레이오프 관련 매출을 올렸습니다.
• MSG 스포츠는 이사회 승인 등 조건 충족을 전제로 10월 말까지 추진 중인 레인저스 분사를 완료할 것으로 예상하고 있습니다.
• 경영진은 선수단 연봉, 사치세 및 수익 공유 비용 증가와 함께 2027 회계연도 전 사업 부문에서 매출 성장을 기대하고 있습니다.

주요 재무 데이터

2026 회계연도 전체 기준으로 MSG 스포츠는 매출 11억 5,000만 달러, AOI 5,870만 달러를 기록했습니다. 분기 말 기준 현금은 약 1억 6,450만 달러였으며, 부채는 총 2억 5,850만 달러로 닉스 선순위 담보 회전한도 대출 2억 4,200만 달러와 NHL의 선급금 1,650만 달러로 구성되었습니다.

사업 및 영업 실적

닉스의 NBA 우승 행진이 4분기 성장의 주요 동인이었습니다. 플레이오프 티켓은 라운드가 진행될수록 프리미엄이 높아졌으며, 경기당 입장 수입에서 여러 차례 NBA 기록을 경신했습니다. 우승 시리즈 기간 동안 관중 1인당 식음료 및 상품 지출도 가속화되었습니다.

우승 후에도 상품 수요는 강세를 유지했습니다. 닉스는 우승 확정 후 첫 24시간 동안 역대 최고 일일 상품 매출을 기록했습니다. 2026 회계연도 전체 동안 경기장 내 관중 1인당 상품 및 식음료 지출은 전년 대비 증가했습니다.

닉스와 레인저스는 한 해 동안 220만 명 이상의 순 신규 소셜 미디어 팔로워를 확보하여, 6월 말 기준 합산 팔로워 수가 약 2,200만 명에 달했습니다.

경영진은 합산 시즌 티켓 재갱신율이 90% 이상을 유지할 것으로 예상합니다. MSG 스포츠는 하키팀인 레인저스가 플레이오프 진출에 실패하자 레인저스의 티켓 가격은 동결하고 닉스의 시즌 티켓 가격은 인상했습니다.

포스트시즌 기간 동안 스폰서십 매출은 전년 대비 2배 이상 증가했습니다. 회사는 PwC, 폴리마켓(Polymarket)과 새로운 다년간의 파트너십을 체결했으며, 렉서스(Lexus), 앤하이저부시(Anheuser-Busch), 인포시스(Infosys)와 다년 계약을 갱신했습니다. 경영진은 이번 우승이 2027 회계연도 추가 스폰서십 매출에 기여할 것이라고 밝혔습니다.

더 가든(The Garden)에서는 추가 스위트룸 리노베이션이 진행 중이며, 이는 2027 회계연도에 추가 매출을 창출할 것으로 기대됩니다. 닉스는 다가오는 시즌을 우승 배너 게양식으로 시작하고, 레인저스의 창단 100주년 행사는 11월 몬트리올 카나디앵과의 경기에서 정점에 달할 예정입니다.

경영진 전망

경영진은 입장권, 스폰서십, 스위트룸, 식음료, 상품 판매 등의 호조에 힘입어 2027 회계연도 전 사업 부문에서 매출 성장을 기대하고 있습니다. 회사는 구체적인 매출이나 AOI 가이던스를 제시하지 않았습니다.

2027 회계연도 실적에는 선수단 연봉, NBA 사치세, 수익 공유 비용 증가도 반영될 것으로 예상됩니다. 2026-27 시즌 NBA 샐러리 캡은 1,040만 달러 인상되었으며, NHL 샐러리 캡은 850만 달러 인상되었습니다.

새로운 NHL 단체협약으로 인해 레인저스의 수익 공유 비용이 증가할 것으로 예상됩니다. 또한 2027 회계연도에 레인저스는 정규시즌 홈 경기가 1경기 늘어나고 프리시즌 홈 경기가 1경기 줄어들게 됩니다.

로저스 커뮤니케이션스(Rogers Communications)와의 NHL 새 12년 캐나다 미디어 중계권 계약이 다가오는 시즌부터 시작됩니다. 경영진은 이 중계권료 중 MSG 스포츠의 배분액이 증가할 것으로 예상하고 있습니다.

리스크 및 주목할 점

추진 중인 레인저스 분사는 이사회 승인을 포함한 조건 충족을 전제로 합니다. MSG 스포츠는 수정된 Form 10 등록 신청서를 공개 제출할 예정이며, 현재 10월 말까지 완료를 목표로 하고 있습니다.

개정 세법은 2028년 6월 30일로 끝나는 회계연도부터 적용됩니다. 추진 중인 분사를 제외하면, 경영진은 현재 2028 회계연도에 약 1,600만 달러의 추가 법인세 비용이 발생할 것으로 추정하고 있습니다. 분사가 완료되면 두 회사의 합산 법인세 비용은 더 높아질 것이며, 최종 영향은 당시 선수단 급여 규모에 크게 좌우될 것입니다.

2027 회계연도 비용 증가로 인해 예상 매출 증가분의 일부가 상쇄될 수 있습니다. 경영진은 특히 선수단 연봉, 사치세, 수익 공유를 비용 증가 항목으로 지목했습니다.

MSG 네트워크(MSG Networks)와의 지역 미디어 중계권 계약은 2028-29 시즌까지 유효합니다. 4분기 미디어 중계권 매출은 지역 중계 수익성 감소 및 MSG 네트워크 독점 중계 경기 수 감소가 전국 NBA 미디어 중계권료 증가로 상쇄되어 거의 변동이 없었습니다.

애널리스트 Q&A 하이라이트

레인저스 분사 및 소수 지분: 경영진은 레인저스와 닉스를 분리하면 투자자들이 각 사업을 더 명확하게 평가하는 동시에 전략적·재무적 유연성을 더 크게 확보할 수 있을 것이라고 밝혔습니다. 회사는 향후 소수 지분 매각 가능성을 배제하지 않았으나 업데이트할 내용은 없다고 덧붙였습니다.

우승의 경제적 효과: 닉스는 전년 동기의 1억 1,520만 달러에 비해 4분기에 1억 8,200만 달러의 플레이오프 관련 매출을 올렸습니다. 두 기간 모두 홈 플레이오프 경기 수가 9경기로 동일하여, NBA 파이널에 진출해 우승한 데 따른 실질적 이점이 더욱 두드러졌습니다.

스폰서십 전망: 경영진은 이번 우승으로 파트너 관계가 강화되었으며 향후 계약에 대한 가치 제안이 높아졌다고 언급했습니다. 2026 회계연도 계약에 따른 런레이트(run-rate) 효과와 2027 회계연도의 추가 스폰서십 기회가 모두 기대됩니다.

지역 미디어 유통: MSG 스포츠는 MSG 네트워크가 지역 팬들에게 다가가기 위한 중요한 파트너로 유지되고 있다고 밝혔으며, DAZN과의 파트너십을 포함한 유통 이니셔티브에 대해 지지를 표명했습니다. 경영진은 향후 리그 차원의 유통 모델 가능성에 대해서는 추측하지 않았습니다.

리그 확장: NBA 또는 NHL 리그 확장이 이루어질 경우 경영진은 가입금이 기존 구단들에 분배될 것이라고 설명했습니다. 전국 미디어 중계권 수입을 포함한 이후의 리그 배분금은 확대된 전체 구단 수에 따라 나누어지게 됩니다.

실적 발표 컨퍼런스 콜 전문

전체 실적 발표 컨퍼런스 콜 녹취록

경영진 발표

Operator

Good morning. Thank you for standing by, and welcome to the Madison Square Garden Sports Corp. Fiscal 2026 Fourth Quarter and Year-End Earnings Conference Call. [Operator Instructions]

I would now like to turn the call over to Ari Danes, Investor Relations. Ari, please go ahead.

Ari Danes

Thank you. Good morning, and welcome to MSG Sports Fiscal 2026 Fourth Quarter and Year-End Earnings Conference Call. Our Chief Operating Officer, Jamaal Lesane, will begin this morning's call with a discussion on the company's strategy and operations as well as an update on the company's proposed spin-off of its Rangers business. This will be followed by a review of our financial results with Paul DiCicco, our EVP, Chief Financial Officer and Treasurer. After our prepared remarks, we will open up the call for questions. If you do not have a copy of today's earnings release, it is available in the Investors section of our corporate website.

Please take note of the following. Today's discussion may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Please refer to the company's filings with the SEC for a discussion of risks and uncertainties. The company disclaims any obligation to update any forward-looking statements that may be discussed during this call. On Pages 4 and 5 of today's earnings release, we provide consolidated statements of operations and a reconciliation of operating income to adjusted operating income, or AOI, a non-GAAP financial measure.

And with that, I'll now turn the call over to Jamaal.

Jamaal Lesane

Thank you, Ari, and good morning, everyone. I am pleased to be here with you all today following a fiscal year that culminated with the Knicks winning an NBA championship. Before I dive further into the Knicks season, I would like to take a moment to discuss an important plan that we announced since we last spoke in February, potential spin-off of our Rangers business from our Knicks business. This transaction would create 2 distinct publicly traded companies, enabling shareholders to more clearly evaluate each company's assets and growth prospects. It would also provide both with enhanced strategic and financial flexibility.

In May, we confidentially filed a Form 10 registration statement with the SEC regarding the proposed spin-off. We anticipate publicly filing an updated Form 10 registration statement this week and currently expect to complete the spin-off by the end of October, subject to various conditions, including Board approval. We will continue to keep you updated on our progress.

Now let's discuss our operations in more detail. For fiscal '26, MSG Sports generated full year revenues of approximately $1.2 billion and adjusted operating income of nearly $59 million. These results reflect robust consumer and corporate demand throughout the regular season and, of course, the impact of the Knicks Championship run. The Knicks' playoff run took over New York City from electric crowds in-arena for home games to watch parties at various locations throughout the city to unique activations from our marketing partners, all culminating with the championship parade attended by millions of fans. With this unprecedented momentum, we achieved a number of operational milestones during the postseason.

To share a few highlights, on the ticketing front, the Knicks set new league-wide records with the highest per game gate revenues in NBA history on multiple occasions during the playoffs. With respect to merchandise, within the first 24 hours of clinching the NBA title, the Knicks generated its highest ever single day of merchandise sales with this robust demand continuing in the weeks that have followed. And we added over 2.2 million net new social media followers this past year, bringing the Knicks and Rangers combined following to nearly 22 million by the end of June. And this interest wasn't just limited to New York. Nationwide, the championship series became the most-watched NBA finals in 28 years. While fan enthusiasm reached new highs during the playoffs, the demand for both the Knicks and Rangers was evident throughout the regular seasons, which we expect to carry forward in fiscal '27.

In terms of ticketing, we saw higher per game revenue year-over-year during the 2025-'26 regular seasons. Looking ahead to the upcoming season, we are off to a strong start with season ticket renewals, and we expect our combined season ticket renewal rate to once again reach levels above 90%. I would note that consistent with our past practice, we made the decision to not raise season ticket prices for the Rangers as the team did not qualify for the playoffs, but we did raise season ticket prices for the Knicks. This past fiscal year, we also celebrated the Rangers Centennial season, which will culminate with the Rangers' 100th anniversary Capstone Game at The Garden in November against the Montreal Canadians. That game will also mark the 100th anniversary of the date of the Rangers first-ever game also against the Montreal franchise.

In addition, we continued unique merchandise collaborations with brands such as Kith and New York or Nowhere for both the Knicks and Rangers. These initiatives helped drive robust year-over-year growth in merchandise per cap spending at the arena for fiscal '26 as compared to the prior year. We also saw fan enthusiasm throughout the fiscal year translate into higher food and beverage per cap spending year-over-year at the arena. In terms of marketing partnerships, fiscal '26 was highlighted by a number of significant new sales and renewals. We signed new multiyear partnerships with PwC and Polymarket and reached multiyear renewals with Lexus, Anheuser-Busch and Infosys. And in our premium hospitality business, we also saw strong new sales and renewal activity for suites at The Garden, which included a number of Lexus level suites that were renovated at the start of the fiscal year.

Building on this successful initiative, several more suites are in the process of being renovated, which we expect to drive incremental revenue for our business in fiscal '27. As we look ahead to the upcoming seasons, the Rangers have had a productive summer, including acquiring forward Pavel Dorofeyev and defensemen Marcus Petterson and Sean Durzi. We look forward to the Rangers 2026-'27 regular season campaign getting underway this fall. And the Knicks will begin with the special banner raising celebration in October to tip off the season as defending champions.

So in summary, we are proud to have seen the Knicks deliver this year's championship for our fans, partners, employees and shareholders. And as we pursue a spin-off of our Rangers business, we remain confident in our ability to drive long-term shareholder value. I'd now like to introduce Paul DiCicco, our new EVP, Chief Financial Officer and Treasurer. Paul is a seasoned executive with 30 years of experience in a range of global finance roles. His proven track record of strategic financial leadership is an asset to our company, and we are pleased to have him on board.

With that, I'll now turn the call over to Paul.

Paul DiCicco

Thank you, Jamaal, and good morning, everyone. I'm pleased to join you here today in my new role at MSG Sports during such an exciting time for the company.

For fiscal '26, we generated total revenues of $1.15 billion and adjusted operating income of $58.7 million. Results for the fiscal fourth quarter reflect the same number of regular season and playoff home games as compared to the prior year period. That includes the completion of the '25/'26 regular season, followed by the Knicks playoff run to the finals, which compared to reaching the Eastern conference finals in fiscal '25. For the fiscal '26 fourth quarter, total revenues were $278.7 million as compared to $204 million in the prior year period. Event-related revenues of $200.7 million, which mainly consists of ticket, food, beverage and merchandise revenues, inclusive of playoffs, increased 43% year-over-year. Suites, sponsorship and signage revenues, also inclusive of the playoffs, were $39.1 million, an increase of 23% year-over-year. National and local media rights fees of $27.7 million were essentially unchanged year-over-year. This primarily reflected our amended local telecast rights agreement with MSG Networks as well as a decrease in the number of games exclusively available to MSG Networks during the current year as compared to the prior year.

These decreases were offset by higher national media rights fees due to the NBA's new national media rights deals. Adjusted operating income was $39.6 million as compared to adjusted operating loss of $16.8 million in the prior year quarter, which reflected the increases in revenues, partially offset by higher SG&A and direct operating expenses. The increase in costs primarily reflects higher playoff-related expenses. I would note that SG&A also reflects, to a lesser extent, $2.9 million in expenses related to the proposed spin-off transaction. This overall increase in cost was partially offset by a decrease in net provisions for certain team personnel transactions recognized in the prior year quarter.

As we look ahead, we believe our business is poised to deliver revenue growth across all [ intermediate ] categories in fiscal '27. In addition, we expect our results to also reflect our continued investment in our teams as well as higher revenue sharing expense. I'd also add the NHL's new collective bargaining agreement takes effect in the 2026, '27 season. As a result, we will have one more regular season home game and one fewer preseason home game for the Rangers in fiscal '27.

Turning to our balance sheet. At the end of the quarter, our cash balance was approximately $164.5 million, and our debt balance was $258.5 million. This was comprised of $242 million under the Knicks senior secured revolving credit facility and $16.5 million advanced from the NHL. So in summary, we remain pleased with the demand we are seeing for our teams as we also pursue the potential separation of our businesses, which we are confident will position us well to drive long-term value for our shareholders.

I will now turn the call back over to Ari.

Ari Danes

Operator, can we now open up the call for questions?

Operator

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

질의응답

David Karnovsky

I would be the first to say congrats on the Knicks championship. So regarding the New York Rangers spin-off, can you speak a bit more to the rationale here? And should investors read this as a willingness to sell minority stakes in the teams? And then relatedly, with the pending tax law change, why enter the spin if it now creates a tax challenge across 2 public companies?

Jamaal Lesane

David, thank you for those congratulations. With respect to your first question, we believe that our proposed spin-off, as I mentioned earlier, would enable shareholders to more clearly evaluate each company's assets and growth prospects. As it relates to a minority stake sale or the potential for minority stake in either team, our position hasn't changed from what we've articulated on previous calls. We continue to be confident in the value of our teams. We're as confident as ever in that respect. And there continue to be reported transactions in the marketplace that demonstrate that value and scarcity of these assets. And so as I said before, we would never rule out the possibility of a minority stake sale, but we don't have anything further to report at this time in that regard. The takeaway here, David, is that this transaction will provide both companies with enhanced strategic and financial flexibility.

Paul DiCicco

I'll take the second part of your question. As we discussed earlier just now, we believe the proposed spin will create long-term value for our shareholders. And we're certainly mindful of the implications that the tax laws would have at each company after the separation. But that being said, as Jamaal just said, the proposed spin-off does create -- provides both companies with strategic and financial flexibility, such as enhancing each company's ability to access funding for liquidity, particularly as we take into account the implications for our business from these tax law changes.

Operator

Your next question comes from the line of Cameron Mansson-Perrone with Morgan Stanley.

Cameron Mansson-Perrone

Two, if I could. First, on local media rights, there's a range of evolving approaches across leagues and teams right now between traditional RSN distribution, full DTC as we're seeing with the Braves, leagues trying to centrally manage and package rights. Jamaal, what's your latest thinking about those various options and what makes sense from your perspective for the MSGS teams over time? And are there any league-specific factors we should consider that might make the approach different for the Knicks relative to the Rangers? Or are you thinking about both teams and local rights in a similar -- or from a similar lens? And then I have a follow-up.

Jamaal Lesane

Sure. Thanks for that, Cameron, and great to meet you. As you mentioned, there's a lot going on. But with respect to the Knicks and the Rangers local distribution, we have a great partner in MSG Networks. And our agreements with them run through the '28, '29 seasons. And one of the things that makes them a great partner is that they help us stay connected with our local fans, which is of paramount importance to us.

We're also supportive of what they've been doing on the distribution front, including their new partnership with DAZN, which is a premier streaming platform. And with that, we're not going to speculate on league plans. We believe in the value of local media coverage. We believe in the value of content that's tailored for local markets. And as such, we remain confident in our position as a rights holder for these 2 marquee sports franchises.

Cameron Mansson-Perrone

Great. I appreciate that. Follow-up was just on the question about the future potential tax obligations. Any help quantifying that incremental tax impact for each team when those changes take effect, I guess, assuming current payrolls remain unchanged at each team?

Paul DiCicco

Sure, Cameron. I'll take that one. It's nice to meet you as well. We continue to assess the impact of these tax law changes on our business. But just a quick reminder, these become effective for our fiscal year-end June 30, 2028. So with that in mind, excluding the impact of the proposed spin-off, we currently estimate these changes result in approximately $16 million in additional income tax expense for that fiscal year, that's fiscal year '28. If the proposed spin-off is completed, the combined income tax expense across the 2 companies will certainly be higher. I do think it's important to note, though, as you kind of alluded to, the final impact will largely depend on the team at that point in time.

Operator

Your next question comes from the line of David Joyce with Seaport Research Partners.

David Joyce

Well, that was an exciting quarter. Can you help us understand some more of the financial impacts on the revenues, expenses and AOI from that championship run? And subsequent to the win, there was talk about not encroaching the next apron. So could you please also give us some operating expense outlook for the next fiscal year, including on the player comp?

Paul DiCicco

Sure, David. I'll take those questions and work through those for you. The championship run resulted in a significant incremental business for our company as evidenced in our results today.

To give a little bit more context, I'll touch on a few areas, and I'll start with tickets. Playoff tickets are priced at a premium to the regular season games with increases each round. As Jamaal noted earlier, the Knicks set new NBA records for the per game gate revenues. Our per cap spending on F&B and merchandise during the playoffs is typically higher than regular season averages, but we noted it was a notable acceleration during the championship series. Now what was interesting is we hosted 9 playoff games in this past quarter at The Garden, which is the same number of games as the prior year when the Knicks advanced to the Eastern conference files. And just to compare those results, related playoff revenues for the year's fourth quarter were $182 million as compared to $115.2 million in the prior year period. That's roughly $20.2 million in average per game revenues, including the benefits of robust nongame day merchandise sales.

On the flip side, right, there are additional costs in connection with being in the playoffs. We saw approximately $11 million, $1.2 million on average per game related to direct operating expense as well as marketing and administrative costs. One quick point I want to make. I won't get into all the specifics, but I note that last quarter, there were increased expenses for playoffs associated with making the finals and winning the championship. Just to close out on the thread of where we think about that goes, we expect the increased enthusiasm from our fans and partners to create tailwinds across every aspect of our business for fiscal '27, like tickets, sponsorship, suites, as well as food and beverage and merchandise sales.

The focus on the second part of your question really around operating expenses, I'm not going to provide specific guidance. But I will -- we do expect our results for '27 to reflect higher team compensation and luxury tax. As you know, the NBA salary cap increased $10.4 million for the '26, '27 season, while the NHL cap increased $8.5 million. And in addition to that, the NBA luxury tax threshold for '26, '27 season increased $12.5 million to approximately $200 million to $244 million. It's important reminder that this is measured based on the roster at the end of the season. The other area I mentioned earlier, we also anticipate increased revenue share expense in fiscal '27, really twofold really. One is this reflects our current expectations for ongoing revenue growth, excluding the impact of playoffs. In addition will be due to the impact of the new NHL CBA that goes into effect for the upcoming season. That new CBA slightly changed the calculation for rev share and is expected to result in higher revenue sharing expense for the Rangers.

Operator

Your next question comes from the line of Joe Stauff with Susquehanna.

Joseph Stauff

I just wanted to maybe follow up on David's previous question, a little bit more detail. Can I ask on the sponsorship outlook this coming season, what it looks like, especially considering the Knicks win and what that does for you in terms of both pricing and any added inventory and how we think about that number in particular for fiscal '27?

Jamaal Lesane

Thanks, Joe. Actually, I'm glad you touched on that. And just looking at back just a little bit, we saw overwhelming demand from our partners during the championship run. And that included not just the obvious presence in our arenas for those exhilarating home games, but it also included the opportunity for them to activate at our viewing parties around the city. And then even on the road, where we hosted a number of partners in Cleveland for the Eastern Conference Finals and in San Antonio for the NBA Finals, all culminating with giving many of our partners a presence during the championship parade celebration.

And so all of that had 2 effects. One, that valuable time spent enhances our relationship with our partners, and it improves the value proposition moving forward. And then two, we saw sponsorship revenues more than double year-over-year during the post season. And so looking ahead, not only do we expect to see the run rate benefit from our fiscal year -- fiscal '26 deals in the year ahead, but the Knicks win should actually enable us to sell more sponsorships. So in short, Joe, while we're not providing specific guidance, as we look to fiscal '27, we're seeing great momentum and believe that we are well positioned to drive another year of growth.

Ari Danes

Thanks for the question, Joe. Operator, we'll take one final caller.

Operator

Your last question comes from the line of Tyler DiMatteo with BTIG.

Tyler DiMatteo

I have 2 here. I wanted to start on the NHL side of things. I guess how should we think about the new Rogers deal kicking in this season and the potential financial impact on that? And then along with that, I guess, do you have any early thoughts on the potential new U.S. NHL deal and the renewal of it following the existing deal that concludes next year?

Jamaal Lesane

Thanks, Tyler. I'll take that one. Tyler, to answer the first part of your question, the NHL begins a new 12-year media rights agreement with Rogers Communications this upcoming season. And they, the NHL, will see a step-up in average annual value for its Canadian media rights with annual escalators thereafter. And so we'll see an increase in our share of those media rights -- those media rights fees. And kind of to piggyback into the second part of your question, in terms of the NHL U.S. deals, the current agreements run through the '27, '28 season. And we continue to believe in the value of live professional sports content. We expect the NHL will maximize that opportunity.

Tyler DiMatteo

Okay. Great. And then secondarily, I guess, do you have any early thoughts or how do you think about the potential financial impact of domestic expansion for the NBA or NHL? And I guess what that could mean for your business and the contribution?

Jamaal Lesane

Yes. I won't comment on the NBA, NHL strategy and whether that occurs or not. But I will -- if an expansion does occur, as it has in the past, if expansion were to occur, any potential expansion fees in the NBA would be divided equally among the 30 existing NBA teams and vice versa, any potential expansion fees in the NHL would be divided among the existing 32 NHL teams. From a league distribution perspective, including revenue from the national media rights agreements, those would be divided pro rata amongst the increased number of teams following any potential expansion.

Operator

There are no further questions at this time. I will now turn the call back to Ari for closing remarks.

Ari Danes

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

Operator

This concludes today's call. Thank you for attending. You may now disconnect.