MSG Networks

25 Apr 2025

MSG Networks Negotiates $514 Million of Debt Forgiveness

MSG Networks, a subsidiary of Sphere Entertainment Co., was able to negotiate a reduction in debt and the fees it pays to MSG Sports to broadcast professional basketball and hockey games, the company announced Friday (April 25). 

The regional sports network’s borrowers forgave $514 million of debt. Along with cash contributions by Sphere Entertainment and MSG Networks, the old debt of $804 million was reduced to $210 million. Sphere Entertainment will pay $15 million to the borrowers while MSG Networks will contribute $65 million. 

Sphere Entertainment Co. and MSG Sports are part of the entertainment empire owned by the Dolan family. James Dolan is CEO of both companies as well as live events company MSG Entertainment.

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All parties have agreed to the term sheet. Per the SEC filing, the consenting stakeholders “have agreed to implement the Transactions by June 27, 2025, which date may be extended or waived in writing by each of the Consenting Stakeholders and MSG Networks.”

The news provided a bounce to Sphere Entertainment’s share price, which has fallen sharply since President Trump announced his global tariff policy on April 2. Shares of Sphere Entertainment jumped 13.2% in early morning trading and had settled to $28.70, up 8.4%, by late morning. Even after the bounce on good news, the share price is down 32.4% year to date. 

The fees paid to MSG Sports to broadcast games by the New York Knicks and the New York Rangers dropped by 28% and 18%, respectively. Neither team will receive annual rights fee increases. In return, MSG Networks will issue to MSG Sports penny warrants exercisable for 19.9% of equity interest in MSG Networks. 

Sphere Entertainment Group and its subsidiaries will not be obligated to fund the borrowings of MSG Networks’ new term loan or pledge its assets as security.

The company and its borrowers had agreed to numerous forbearance agreements leading up to the agreement announced Friday. MSG Networks first announced in October it was attempting to refinance its term loan and had entered into a forbearance with its lenders. The latest forbearance period ended Thursday (April 24). 

According to a report at the New York Post, the renegotiated debt paves the way for a merger of MSG Sports and the YES Network, the regional sports network that airs the games of the New York Yankees and Brooklyn Nets.

27 Mar 2025

MSG Networks Misses Debt Payment, Raising Risk of Bankruptcy or Foreclosure

MSG Networks, a subsidiary of Sphere Entertainment Co. and part of the business empire run by James Dolan, has another week to repay more than $800 million of debt without facing consequences from its lenders, the company announced Thursday (March 27) in an SEC filing. The company first announced in October 2024 that it was attempting to refinance its term loan and had entered into a forbearance agreement with its lenders. That forbearance was initially rescheduled to expire on Nov. 8, 2024, and subsequently was extended to March 26. 

If MSG Networks is unable to achieve a “refinancing or work-out of its indebtedness,” the company would seek bankruptcy protection, or the lenders could foreclose on the MSG Networks business, according to the company’s latest annual report. Even if MSG Networks is able to refinance the debt, the new terms would be “on terms materially less favorable to MSG Networks than the current terms,” the report says. 

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In February, MSG Networks, a regional sports cable network with an online subscription offering, made a principal repayment of $25 million. The debt, which currently stands at $804 million, applies only to MSG Networks, not the division that operates the Sphere venue in Las Vegas. In the quarter ended December 31, MSG Networks had revenue of $139.3 million, down 7.1% from the prior-year period, and an operating loss of $35.0 million. MSG Networks is separate from live events company MSG Entertainment, which spun off from the rest of the company in 2023.

Sphere revenue topped $300 million in the latest quarter, slightly lower than the prior-year period. The quarter included shows by rock legends the Eagles and EDM producer Anyma. As for 2025, Sphere has announced residencies by country star Kenny Chesney and ‘90s boy band Backstreet Boys. A second Sphere is in the works in Abu Dhabi, the capital of the United Arab Emirates.