After news broke late last week that MSG Networks would be restructuring its debt and perhaps prepping for a sale, the media rights implications on the NBA’s New York Knicks and the NHL’s New York Rangers are coming into focus.
On Thursday, the New York Post reported that MSG Networks was nearing a deal with JPMorgan that would allow the ailing regional sports network to restructure its debt and avoid bankruptcy. As part of that agreement, the James Dolan-owned network would reduce media rights payments to its two most high-profile teams, the Knicks and Rangers, which are also owned by Dolan.
The magnitude of those media rights reductions are now public. According to a SEC filing made public on Friday, the Knicks will be taking a 28% haircut on its local media rights fee, while the Rangers will be taking an 18% rights fee cut themselves. Neither team will receive media rights increases for the remainder of their deals, which will now expire after the 2028-29 seasons.
MSG Networks also serves as the television home to three other NHL teams — the Buffalo Sabres, New Jersey Devils, and New York Islanders — whose rights fees may also be impacted as a result of the restructuring. Per a copy of the term sheet, those three teams will be subject to “rights fee concessions,” that have yet to be agreed upon.
With the restructuring finalized, it’s very possible MSG Networks finds itself ripe for a sale, with YES Network reportedly a front-runner according to the Post. The two New York-area regional sports networks already jointly operate the Gotham Sports App, which allows fans to purchase streaming access to both networks for one price.