MSG Networks Gets 1-Week Extension from Lenders as Company Faces Possible Bankruptcy or Foreclosure
The regional sports network, a subsidiary of Sphere Entertainment Co., has been granted an extra week of forbearance.
staff
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.
Related
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.
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.
UPDATE: This story was updated on March 27 at 6:58 p.m. ET to correct an inaccuracy. MSG Networks did not miss a debt repayment prior to being granted the forbearance extension, as a previous version of the story erroneously stated.
