Risk Factors Update Summary

• The principal balance of our consolidated debt outstanding was approximately $1.4 billion, with $849 million due before June 30, 2025. This significant debt may adversely affect our business operations.
• The COVID-19 pandemic and future public health emergencies may materially impact operations. This change highlights ongoing risks to business continuity.
• We incurred operating losses of approximately $341 million, $273 million, and $166 million for Fiscal Years 2024, 2023, and 2022, respectively. Continued losses may limit our ability to raise necessary financing.
• The final construction cost for Sphere in Las Vegas exceeded initial estimates, reaching approximately $1.66 billion. This change might result in increased financial strain on the company.
• The percentage of unionized employees decreased from 29% to 18%. This change may affect labor negotiations and operational stability.
• In June 2023, we launched a DTC streaming product, which could adversely affect our competitive position. The increasing amount of sports programming may impact our distribution and viewer engagement.
• We have incurred substantial operating losses, with adjusted operating losses of $81.4 million, raising concerns about future profitability.
• Legal expenses for data privacy claims may increase significantly due to new regulations. This could lead to substantial financial liabilities.
• Our ability to make a required quarterly amortization payment of $20.6 million on the MSG Networks Credit Facilities is uncertain. This could negatively impact our liquidity and operational flexibility.
• The average revenues per show of The Sphere Experience have declined quarter-over-quarter since its debut, indicating potential challenges in attracting audiences.
• The actions of the NBA and NHL may materially affect our MSG Networks business, impacting revenue and operational results.
• The company may incur significant expenses to enhance security measures against evolving cyber threats. This could impact overall financial health.
• We are subject to extensive governmental regulation, and failure to comply may have a material negative effect on our business and results of operations. Changes in regulations could further complicate our operations.
• The contractual rights fees for media rights agreements increased from $172 million to $174 million for Fiscal Year 2024. This reflects potential revenue growth.
• We may require additional financing to fund obligations and operations, with uncertain availability affecting future growth prospects.