MSG Network, a cable TV station that fought to broadcast the New York Knicks and Rangers games, is in consultation on Friday to avoid bankruptcy. And the insider presumed that there could be help from a deep pocket media player like Amazon. I learned the post.
Sports Channel managed by James Doran, the owner of the Knicks of the Million Public Million, is currently powerful to subscribers in the New York area for a contract dispute with the optimal cable network. We are in a hurry to reconstruct debt in the lender group led by JPMORGAN. It was $ 829 million.
The MSG network in October made the loan default, but the lender extended the payment time several times. Recently, it was extended from January 10 to midnight on Friday. This time, according to the sources explained about the discussion, it is not simply extending the deadline again, but reaching the transaction.
“The lecture is ongoing,” said the sources close to the situation on Friday afternoon.
The MSG network did not return the phone, and JPMORGAN refused to comment.
In order to make a transaction, the sources speculate that the MSG will refuse the debt burden and receive cash from a new external investor to hand over the shares of the cable business. According to the sources, it does not affect the ownership of Knicks and Rangers in Dolan.
Charters are currently circulating that one possible solution is a partnership with Amazon. Amazon is to partner with Amazon, which has contracted with Diamond Sports, the largest operator in the so -called RSNS or regional sports network, with a broadcast game for professional sports teams nationwide. 。
Amazon is also an investor in the YES network that broadcasts the Yankees and Nets games, and Prime broadcasts Yankees games every week in the New York area.
Amazon refused to comment.
According to the sources, the important advantage in transactions with Amazon was to give MSG networks the optimal alternative. According to analysts, the distribution dispute with the Altice USA owned cable provider is estimated to be $ 10 million due to the loss of MSG network costs in January.
COMCAST also deleted the MSG network in 2021. On the other hand, the MSG Networks Gothham Sports app, which is a unique streaming service, has charged $ 29.99 per month and does not collect large -scale subscriber base.
When the MSG network shakes, Doran himself does not suggest the possibility of refinancing debts. In fact, according to analysts, Public-Trade-Sphere Entertainment's shares have risen 7.5 % in the past five days, causing a loss in the past five days, causing losses and balancing sheets. Investors are betting when improved.
The spherical shares decreased by 3 % due to off -hours transactions on Friday, as bankruptcy could be avoided.
The information states that if the latest lecture failed and the MSG network fell into bankruptcy, the lender would take over the operation and continue the broadcast game.
In addition, the information states that bankruptcy has a light debt, so that MSG networks can charge the optimal low cost for carrying the game, which may increase the possibility of optimal transactions. Masu.
According to the report, Optimum paid about $ 10 per 10 dollars to the MSG network under the contract that expired on December 31, which is one of the most expensive cable channels. 。
Optimum, which has about one -third of about 3 million subscribers in the New York City area, placing MSGN on the premium layer to make the MSGN subclan much less, reducing costs. I am aiming for.
Altis, the parent company, is also deepening debt.
Analysts said that without Optimum customers, MSG network had lost money even before paying for profits.
“The complete drop will ultimately go bankrupt to the MSG network,” wrote in a report earlier this month said Lightshed Partners media analyst.
Profit from the cable provider is partially reduced due to cord cuts due to much less subcliver.
Verizon's MSG network agreement with FIOS expired in September, leading to another potentially difficult negotiations, and the lender told the post.
According to the public, as part of the 20 -year contract ending in 2035, he has lost his money to pay $ 187 million in 2025 to pay $ 1.87 million in 2025.
“The model is upside down,” said the RSN industry's sources, and the price paid for the media 10 years ago is almost meaningless.
RSN Information has stated that the new MSGN owner in potential bankruptcy may cancel the rights transactions of knicks and rangers media and negotiate a much lower contract.
Doran, which controls Knicks and Ranger, has been able to reduce the rights money as a whole package, which is a more powerful and fiscal basis of MSG networks.
