NEWS

The Madison Square Garden Company Reports Fourth Quarter and Fiscal 2016 Results

New York, NY (August 19, 2016) - The Madison Square Garden Company (NYSE:MSG) today reported financial results for the fourth quarter and fiscal year ended June 30, 2016.

On September 30, 2015, The Madison Square Garden Company completed its spin-off from MSG Networks Inc. The fiscal 2016 fourth quarter and nine months ended June 30, 2016 reflect the Company's financial results on a standalone basis, including the Company's actual corporate general and administrative costs.

Reported results for fiscal 2015 and the fiscal 2016 first quarter reflect the combined results of the sports and entertainment businesses, which, prior to the completion of the spin-off, had been consolidated with MSG Networks Inc. Please note that results for these periods reflect the allocation of corporate general and administrative costs based on accounting requirements for the preparation of carve-out financial statements. As a result, results for fiscal 2015 and the fiscal 2016 first quarter do not reflect all of the actual expenses that the Company would have incurred had it been a standalone public company for those periods.

On a reported basis for fiscal 2016, the Company generated revenues of approximately $1.1 billion, operating loss of $58.6 million and adjusted operating cash flow ("AOCF") (1) of $68.3 million. Excluding the impact of a $41.8 million non-cash write-off recorded during the fiscal 2016 third quarter and $6.9 million in reorganization costs recorded during the fiscal 2016 fourth quarter, fiscal 2016 operating loss would have been $10.0 million and AOCF would have been $117.0 million.

On a reported basis for the fiscal 2016 fourth quarter, the Company generated revenues of $217.8 million, operating loss of $46.2 million and AOCF loss of $13.8 million. Excluding the impact of $6.9 million in reorganization costs recorded during the fiscal 2016 fourth quarter, operating loss would have been $39.3 million and AOCF loss would have been $6.9 million.

President and CEO David O'Connor said, "At the time of our spin-off last September, we laid out a plan on how we would grow our new standalone live sports and entertainment company, and are pleased with the significant progress we've made on executing that strategy. We took significant steps to strengthen our position in live experiences through our investment in Boston Calling Events and our announced plans to expand into Las Vegas, where similar to the Forum, we think we can successfully fill a need by building a groundbreaking venue focused on music and entertainment. As we look ahead, we are excited about the company's future and remain confident that we have ample opportunities, both organic and external, to drive attractive long-term growth for our company."

MSG Entertainment
For the fiscal 2016 fourth quarter as compared to the prior year period, MSG Entertainment revenues of $84.0 million decreased 10%. The decrease was primarily due to lower revenues for the production, now called New York Spectacular Starring the Radio City Rockettes, and the absence of a $3.6 million insurance recovery recorded in the prior year quarter related to lost revenues due to Superstorm Sandy for the Christmas Spectacular Starring the Radio City Rockettes. The decrease in revenues for New York Spectacular Starring the Radio City Rockettes was primarily due to fewer scheduled performances, a result of a shift in the timing of the production's run from the spring to the summer, and, to a lesser extent, lower per-show revenue. This decrease in revenues was partially offset by higher overall event-related revenues, led by The Garden and the Beacon Theatre, along with higher venue-related sponsorship, signage and suite rental fee revenues.

Fiscal 2016 fourth quarter operating loss of $17.9 million increased by $9.5 million and AOCF loss of $13.2 million increased by $8.6 million. The increase in operating loss and AOCF loss primarily reflects the decrease in revenue and higher selling, general and administrative expenses, partially offset by lower direct operating expenses.

The decrease in direct operating expenses was primarily due to lower expenses for the production, now called New York Spectacular Starring the Radio City Rockettes, primarily a result of a shift in the timing of the production's run, partially offset by higher overall event-related expenses at the Company's venues. The increase in selling, general and administrative expenses primarily reflects higher corporate general and administrative costs, professional fees and employee compensation and related benefits. As noted above, selling, general and administrative expenses in the prior year fourth quarter do not include all of the actual expenses that the Company would have incurred had it been a standalone public company for that period.

MSG Sports
For the fiscal 2016 fourth quarter as compared to the prior year period, MSG Sports revenues of $133.5 million decreased 17%. The decrease in revenues was primarily due to lower playoff-related revenues and, to a lesser extent, event-related revenues associated with other live sporting events. This was partially offset by higher media rights fees from MSG Networks Inc. as a result of new long-term media rights agreements between the New York Knicks and New York Rangers and MSG Networks Inc. and, to a lesser extent, the impact from the new advertising sales representation agreement with MSG Networks Inc., as well as higher professional sports teams' regular season ticket-related revenue.

Fiscal 2016 fourth quarter operating income decreased by $27.6 million to $12.8 million and AOCF decreased by $23.5 million to $18.4 million. The decrease in operating income and AOCF was primarily due to the decrease in revenues and, to a lesser extent, higher selling, general and administrative expenses, partially offset by lower direct operating expenses.

The decrease in direct operating expenses was due to lower playoff-related expenses and, to a lesser extent, event-related expenses associated with other live sporting events, partially offset by higher team personnel compensation costs, other team operating costs, net provisions for NBA and NHL revenue sharing expense and NBA luxury tax, and other net increases. The increase in selling, general and administrative expenses was primarily due to higher corporate general and administrative costs, costs associated with the Company's new advertising sales representation agreement with MSG Networks Inc., employee compensation and related benefits and professional fees, partially offset by lower marketing costs. As noted above, selling, general and administrative expenses in the prior year fourth quarter do not include all of the actual expenses that the Company would have incurred had it been a standalone public company for that period.

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About The Madison Square Garden Company
The NBA’s New York Knickerbockers basketball team, entering into its 71st year of operation is part of The Madison Square Garden Company (MSG), a world leader in live sports and entertainment with a portfolio of legendary sports teams, exclusive entertainment productions and celebrated venues. MSG Sports owns and operates some of the most widely recognized sports franchises: the New York Knicks (NBA), the New York Rangers (NHL) and the New York Liberty (WNBA), along with two development league teams -- the Westchester Knicks (NBADL) and the Hartford Wolf Pack (AHL). MSG Sports also presents a broad array of world-class sporting events, including: professional boxing, college basketball, tennis, bull riding and e-gaming events. MSG Entertainment features exclusive, original productions that include the Radio City Christmas Spectacular and New York Spectacular Starring The Radio City Rockettes. MSG Entertainment also presents or hosts a wide variety of live entertainment offerings, including concerts, family shows and special events, in the Company's diverse collection of iconic venues. These venues are: New York's Madison Square Garden, The Theater at Madison Square Garden, Radio City Music Hall and Beacon Theatre; the Forum in Inglewood, California; The Chicago Theatre; and the Wang Theatre in Boston, MA. More information is available at www.themadisonsquaregardencompany.com

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