Latest news with #MSGN
New York Post
25-04-2025
- Business
- New York Post
James Dolan's MSG Networks reaches deal to avoid bankruptcy, sets up potential sale to YES
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.
New York Post
24-04-2025
- Business
- New York Post
MSG Networks nears deal to skirt bankruptcy: sources
MSG Networks is nearing a deal with its lender JPMorgan that will allow the regional sports channel to avoid bankruptcy — and potentially pave the way for a merger with the YES Network, The Post has learned. Under terms of the deal, MSGN — which carries the Knicks, Rangers, Islanders, Devils and Sabres and Gotham FC — will win a debt refinancing in which JPMorgan agrees to reduce it to around $600 million from a current bill of roughly $800 million, sources close to the talks said. In exchange, Knicks owner James Dolan — whose Sphere Entertainment owns and controls MSGN — would agree to reduce the rights fees MSGN pays the Knicks and Rangers, increasing the network's ability to make its interest payment, the sources said. Advertisement James Dolan's MSG Networks is nearing a deal with its lender JPMorgan that will allow the regional sports channel to avoid bankruptcy Charles Wenzelberg / New York Post MSGN and JPMorgan declined to comment. The cable network is losing money partly because it paid $187 million in 2025 to broadcast Knicks and Rangers games as part of a 20-year agreement that ends in 2035, according to public filings. Advertisement On the open market, a cable network would pay considerably less for those rights due to cord-cutting, sources said. After the JPMorgan restructuring, Dolan is likely to start marketing MSGN for sale, sources said. With this new lighter debt package, Dolan hopes to have an easier time finding a buyer. MSG and YES now partner on the Gotham Sports App, which sells access to both networks for $41.99 a month. Customers can also elect to pay $29.99 a month for MSG or $24.99 a month for YES. Jamie Dimon's JPMorgan is working with MSG Networks AP Advertisement MSGN, owned by Knicks owner James Dolan's Sphere Entertainment, had a deadline at midnight on Monday to avoid bankruptcy, and got an extension to Thursday evening as the network and bank feverishly tried to hammer out a truce. Dolan wants to move MSGN out of Sphere Entertainment, where it is hurting the latter's stock price. The best way to do that is to sell after restructuring the debt, a source said. MSGN has been in default since October but has not been put in bankruptcy. Dolan controls the Knicks and Rangers through the separately publicly traded Madison Square Garden Sports.
