Madison Square Garden Sports Corp. (NYSE:MSGS) Q2 2023 Earnings Call Transcript

David Hopkinson: Yes, sure thing, Paul. Those are really good questions. With respect to the three mobile gaming partners that we have, DraftKings, BetMGM, and Caesars, you know we’re €“ that was a big focus for us. When that category was introduced, we want to make sure that we were able to maximize that opportunity and we’re really happy with where we landed. They are not just from a revenue perspective, but also from a brand perspective. We believe we found the right partners and the right mix to fully profit from and benefit from that new opportunity. We think about the partnerships business in those two dimensions that you mentioned. One is category, and one is inventory. I was pleased to introduce Hub as a signature partner of ours new this season, which was an important category for us insurance brokerage is an important strategic category.

I’m glad that we filled that opportunity with such a strong partner and good economics underpinning that deal. So, we’ll continue to look for key categories that we can sell to the right partner on an exclusive basis on the right package. When it comes to inventory, sort of the second half of your question and on jersey patches, we currently are not playing with a patch on the next jersey. We’ve got that opportunity open and available. And we believe that when the right deal presents itself, which we’re working on, on a daily basis, we’ll conclude that. For us, it’s about the right partner, the right economics, and we’re prepared to sit and work that category because it’s such a strategic priority for us. We want to make sure we get the right deal done.

With the ranges we’re taking the exact same approach. The NHL introduced that opportunity just at the beginning of this year. We are watching the marketplace very closely because baseball has also introduced the sleeve opportunity this year. And so, it’s a noisy marketplace out there. I really believe that we’ve got to work this every day and conclude the right deals, not the €“ not necessarily the quickest deal. However, when we do so, whether it’s the Knicks or the Rangers or ultimately both, we’ve got material upside in our partnership’s business.

Paul Golding: Great. Thanks for the color.

Operator: And this ends our question-and-answer session. Mr. Ari Danes, I’ll turn the call back over to you for some final closing comments.

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 conference call. Thank you for your participation. You may now disconnect.