James Dolan's MSG Networks reaches deal to avoid bankruptcy, sets up potential sale to YES

New York Post

25-04-2025

MSG Networks on Friday announced a deal with its lender JPMorgan that allows the regional sports channel to avoid bankruptcy — and potentially pave the way for a merger with the YES Network.
Under terms of the out-of-court debt restructuring, MSGN — which carries the Knicks, Rangers, Islanders, Devils, Sabres and Gotham FC — slashes a JPMorgan loan to $210 million from more than $800 million.
In exchange, Knicks owner James Dolan — whose Sphere Entertainment owns and controls MSGN — has agreed to reduce the rights fees MSGN pays the Knicks and Rangers, increasing the network's ability to make its interest payment, the sources said.
4 James Dolan's MSG Networks announced a deal with its lender JPMorgan that allows the regional sports channel to avoid bankruptcy.
Charles Wenzelberg/New York Post
Sphere's shares on Friday were recently up 10% at $29 on the news. The company confirmed the news, which was exclusively reported by The Post on Thursday, in securities filings before the market open.
MSG and YES — which airs the Yankees and Brooklyn Nets — now partner on the Gotham Sports App, with access to both networks costing $41.99 a month. Customers can also elect to pay $29.99 a month for MSG or $24.99 a month for YES.
MSGN had faced a deadline at midnight on Monday to avoid bankruptcy, and got an extension to Thursday as the network and bank feverishly tried to hammer out a truce.
4 MSG Networks carries the Knicks, Rangers, Islanders, Devils, Sabres and Gotham FC
Charles Wenzelberg / New York Post
After the JPMorgan restructuring, Dolan is likely to start marketing MSGN for sale, sources said. With this new lighter debt package and lower media rights fees, Dolan hopes to have an easier time finding a buyer.
The cable network was losing money partly because it paid $187 million in 2025 to broadcast Knicks and Rangers games as part of a 20-year agreement that ended in 2035, according to public filings.
4 After the JPMorgan restructuring, Dolan is likely to start marketing MSGN for sale, sources said.
Christopher Sadowski
On the open market, a cable network would pay considerably less for those rights due to cord-cutting, sources said.
Now, the Knicks fees get reduced by 28% and the media contract only runs until the end of the 2028-29 season, and the Rangers fees get reduced by 18% and also end after 2028-29, according to Friday's public filing.
The separately traded Madison Square Garden Sports that owns the Knicks and Rangers gets a 19.9% stake in MSG Networks in return.
4 Jamie Dimon's JPMorgan still owns much of the MSG Networks loan so this is a big loss for the bank, sources said.
AP
MSGN had been in default since October but had not been put in bankruptcy.
JPMorgan was in a tough spot since if it put MSG Networks in bankruptcy the MSGN media rights contract with the Knicks and Rangers could have been terminated, and if a third party then negotiated for those rights MSGN without them would have been nearly worthless.