Unidentified Analyst : Yes. And the second question is, how to be thinking about initial profitability in terms of AOI in the near-term, and how quickly that can ramp over time?
James Dolan: Well, let’s see. Are we giving guidance on this, Gautam?
Gautam Ranji: No.
James Dolan: No guidance. Look, without giving you any guidance, because we didn’t intend to do that today. What we need you to understand with that is that it’s a new product. It’s a new medium, et cetera. It’s not going to behave like other products, et cetera, that you see in this kind of space, and we’re learning at the same time. So it’s early to project that. But when you do something like this, the first thing that you look to, right, is to see if you have a product that you think is going to appeal to the public, right? We really, really believe we do. So once you start off with that, with a great product and you introduce it, right, you get people interested in it, you explain it to them, et cetera, and then you reap the benefits of.
But we’re at that point today. I told you this is an interesting time for this call because we’re at the precipice. We’re about to unveil the product to the public, and the next call that we have will have a lot more for you to sink your teeth into.
Ari Danes: Thank you, Ted. Operator, we will take the next caller. Go ahead.
Operator: Certainly. Your next question comes from line of Daniel Duran from Morgan Stanley.
Daniel Duran : So given cord cutting, creating revenue pressures at MSG Networks, how do you weigh whether to refinance the Networks’ term loan coming due next year versus separating Networks from Sphere and leaving Sphere as a live entertainment equity pure play?
James Dolan: I’m going to let Gautam answer that question. But before he does, I want to point something out to all of you who are watching this sector. There’s been no lack of interest in sports. Sports continues to grow and it has great, great appeal, right, to the consumer in the marketplace, particularly in New York. What’s going on with this business, when you take a look at things like Diamond Sports, et cetera, is that the monetization mechanisms that harvest that interest are basically broken. I think I’ve said this before in other calls, et cetera, and it remains true, right? I think we have a plan that addresses that. But underlying all this, right, is the public’s thirst and interest for live sports, and that has not diminished at all. The mechanism — monetizing might not be in such great shape, but the public’s interest is. And so we can regain, I think, the business. Yes, you want to — go ahead, Andrea.
Andrea Greenberg: Yes. I was just going to add to what Jim is saying is that we are the first and only regional sports network going to our direct consumer market with a per game offering. I think that particularly in this market, and particularly with our premier teams, opens up a funnel that brings people into our ecosystem, allows us to super serve them and market and speak directly to them, upsell to them. So when Jim says that we believe we have a very, very strong and viable plan, that’s a key piece of it.
Gautam Ranji : Thanks, Andrea. And just in terms of the refinancing, I think it is important to note, it’s still early in the process. The loan matures in October of 2024, and we have great relationships with our bank group. And as we move forward with this process, all of our options are on the table.
Daniel Duran : And just my second question. Now that Sphere’s retained interest in MSGE has been roughly cut in half and the Sphere is set to open next month, how, if at all, does the operational performance of Sphere impact what you do with Sphere’s remaining MSGE shares? Thank you.
