James Dolan’s MSG Networks reach agreement to avoid bankruptcy, decide possible sale in yes

MSG Networks on Friday announced an agreement with its JPMORGAN lender that allows the regional sports channel to avoid bankruptcy – and potentially paved the way for joining the Po network.

Under the terms of debt restructuring outside the court, MSGN carries knicks, rangers, islanders, devils, sabers and Gotham FC-uL A JPMORGA credit to $ 210 million from more than $ 800 million.

In return, the owner of Knicks James Dlan – whose sphere entertainment owns and controls MSGN – has agreed to reduce the rights fees that MSGN pays knicks and rangers, increasing the network’s ability to pay its interest, sources said.

Sphere shares on Friday recently increased 10% to $ 29 in the news. The company confirmed the news, which was reported exclusively by the post on Thursday, on the securities records before the market opens.

MSG and PO – which broadcasts Yankees and Brooklyn Nets – now partner in the Gotham Sports app, with access to both networks costing $ 41.99 a month. Customers can also choose to pay $ 29.99 per month per MSG or $ 24.99 per month for yes.

MSGN had faced a time limit at midnight Monday to avoid bankruptcy, and received an extension on Thursday as the network and bank tried to create a ceasefire.

After the restructuring of JPMORGAN, Dlan is likely to begin MSGN marketing for sale, sources said. With this easier new debt package and lower media rights tariffs, Dollan hopes to have a easier time to find a buyer.

The cable network was losing money in part because it paid $ 187 million in 2025 to broadcast the games of Knicks and Rangers as part of a 20-year deal that ended in 2035, according to public registrations.

In the open market, a cable network would pay significantly less for those rights due to the cutting of the cord, sources said.

Now, the knick tariffs decrease by 28% and the media contract only goes by the end of the 2028-29 season, and Rangers tariffs decrease by 18% and also end after 2028-29, according to Friday’s public appearance.

The sports of the Madison Square kindergarten marketed separately that the Knicks and Rangers take a 19.9% ​​action on MSG networks as a return.

MSGN had been in the default since October, but had not been bankrupt.

JPMORGAN was in a difficult place as if you put MSG networks in bankruptcy, the MSGN media rights contract with Knicks and Rangers could have been completed, and if a third party would negotiate for those rights without them would have been almost worthless.