MSG Networks is nearing a cope with its lender JPMorgan that can enable the regional sports activities channel to keep away from chapter — and doubtlessly pave the way in which for a merger with the YES Community, The Submit has realized.
Underneath phrases of the deal, MSGN — which carries the Knicks, Rangers, Islanders, Devils, Sabres and Gotham FC — will win a debt refinancing wherein JPMorgan agrees to scale back it to round $600 million from a present invoice of roughly $800 million, sources near the talks mentioned.
In change, Knicks proprietor James Dolan — whose Sphere Leisure owns and controls MSGN — would agree to scale back the rights charges MSGN pays the Knicks and Rangers, rising the community’s potential to make its curiosity cost, the sources mentioned.
MSGN and JPMorgan declined to remark.
MSG and YES — which airs the Yankees, Nets and Liberty — now associate on the Gotham Sports activities App, with entry to each networks costing $41.99 a month. Prospects can even elect to pay $29.99 a month for MSG or $24.99 a month for YES.
MSGN had a deadline at midnight on Monday to keep away from chapter, and received an extension to Thursday because the community and financial institution feverishly tried to hammer out a truce.
The publicly-traded firm has to announce the phrases of any financing adjustments earlier than the markets open on Friday.
After the JPMorgan restructuring, Dolan is prone to begin advertising MSGN on the market, sources mentioned. With this new lighter debt bundle, Dolan hopes to have a better time discovering a purchaser.
The cable community is dropping cash partly as a result of it paid $187 million in 2025 to broadcast Knicks and Rangers video games as a part of a 20-year settlement that ends in 2035, in response to public filings.
On the open market, a cable community would pay significantly much less for these rights resulting from cord-cutting, sources mentioned.
MSGN has been in default since October however has not been put in chapter.
Dolan controls the Knicks and Rangers via the individually publicly traded Madison Sq. Backyard Sports activities.
