James Dolan’s MSG Networks reaches deal to avoid – Business News
MSG Networks on Friday introduced a deal with its lender JPMorgan that permits the regional sports activities channel to avoid chapter — and doubtlessly pave the best way for a merger with the YES Network.
Under phrases 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 proprietor James Dolan — whose Sphere Entertainment owns and controls MSGN — has agreed to scale back the rights charges that MSGN pays the Knicks and Rangers, rising the community’s potential to make its curiosity cost, the sources mentioned.
James Dolan’s MSG Networks introduced a deal with its lender JPMorgan that permits the regional sports activities channel to avoid chapter. Charles Wenzelberg/New York Post
Sphere’s shares on Friday had been not too long ago up 10% at $29 on the information. The company confirmed the information, which was completely reported by The Post on Thursday, in securities filings earlier than the market open.
MSG and YES — which airs the Yankees and Brooklyn Nets — now companion on the Gotham Sports App, with entry to each networks costing $41.99 a month. Customers may also elect to pay $29.99 a month for MSG or $24.99 a month for YES.
MSGN had confronted a deadline at midnight Monday to avoid chapter, and received an extension to Thursday because the community and bank feverishly tried to hammer out a truce.
MSG Networks carries the Knicks, Rangers, Islanders, Devils, Sabres and Gotham FC. Charles Wenzelberg / New York Post
After the JPMorgan restructuring, Dolan is probably going to begin advertising MSGN for sale, sources mentioned. With this new lighter debt package deal and decrease media rights charges, Dolan hopes to have an simpler time discovering a purchaser.
The cable community was dropping money partly as a result of it paid $187 million in 2025 to broadcast Knicks and Rangers video games as half of a 20-year settlement that ended in 2035, in accordance to public filings.
After the JPMorgan restructuring, Dolan is probably going to begin advertising MSGN for sale, sources mentioned. Christopher Sadowski
On the open market, a cable community would pay significantly much less for these rights due to cord-cutting, sources mentioned.
Now, the Knicks charges get decreased by 28% and the media contract solely runs till the tip of the 2028-29 season, and the Rangers charges get decreased by 18% and in addition finish after 2028-29, in accordance to Friday’s public submitting.
The individually traded Madison Square Garden Sports that owns the Knicks and Rangers will get a 19.9% stake in MSG Networks in return.
Jamie Dimon’s JPMorgan nonetheless owns a lot of the MSG Networks loan, so that is a huge loss for the bank, sources mentioned. AP
MSGN had been in default since October however had not been put in chapter.
JPMorgan was in a powerful spot, since if it put MSG Networks in chapter, the MSGN media rights contract with the Knicks and Rangers might have been terminated, and if a third social gathering then negotiated for these rights, MSGN with out them would have been almost nugatory.
