James Dolan’s MSG Networks reaches deal to avoid bankruptcy, sets up potential sale to YES

Source: New York Post

MSG Networks on Friday announced a deal with its lender JPMorgan that allows the regional sports channel to avoid bankruptcy — and potentially pave the way for a merger with the YES Network. Under terms of the out-of-court debt restructuring, MSGN — which carries the Knicks, Rangers, Islanders, Devils, Sabres and Gotham FC — slashes a JPMorgan loan to $210 million from more than $800 million. In exchange, Knicks owner James Dolan — whose Sphere Entertainment owns and controls MSGN — has agreed to reduce the rights fees MSGN pays the Knicks and Rangers, increasing the network’s ability to make its interest payment, the sources said.