Sphere Entertainment’s MSG Could Be Rescued by Amazon
Posted on: February 1, 2025, 08:45h.
Last updated on: February 1, 2025, 08:46h.
Sphere Entertainment (NYSE: SPHR) could find relief from the albatross of MSG Networks’ debt should rumors that the regional sports network (RSN) is holding talks with Amazon (NASDAQ: AMZN) prove true.

Citing unidentified sources familiar with the matter, The New York Post reported late Friday that MSG Networks is in talks with Amazon about a potential deal that could eliminate or reduce the RSN’s $829 million in debt. That amount is nearly half of Sphere’s market capitalization of $1.67 billion as of the close of US markets yesterday, confirming those liabilities have been an overhang on the stock.
When Sphere was spun out of Madison Square Garden Entertainment Corp. (NYSE: MSGE) in April 2023, debt-laden MSG Networks was included as part of the newly formed entity. The RSN broadcasts New York Knicks and Rangers games, but the NBA and NHL teams are controlled by James Dolan’s MSGE.
Currently, MSG Networks is in contract fight with cable provider Optimum, meaning 1 million New York-area residents that use that are Optimum customers can’t see Knicks and Rangers games. Sources told The Post that dispute could be an impetus for the RSN to work with Amazon, rather than seek another extension to repay its debt.
Amazon Has RSN Experience
Should Amazon reach a deal with Sphere’s MSG Networks, it wouldn’t be the first time the retailer has bailed out a troubled sports network.
Amazon Prime has an agreement with Diamond Sports to broadcast professional games across the country. Gaming industry observers are familiar with Diamond Sports because the RSNs controlled by the company previously had the Bally’s Sports name prior to changing to FanDuel branding last year.
Amazon also has a financial stake in the YES Network — the broadcaster of Brooklyn Nets and New York Yankees games. It’s not clear if the company’s exposure to the Nets would be a sticking point in a deal with MSG Networks.
Some analysts have speculated that if Optimum parent Altice — a company that itself is on the brink of bankruptcy– drops MSG Networks outright, the RSN would likely collapse, implying creditors could push the Sphere unit to work with Amazon.
Sphere Stock May Be Pricing In Amazon/MSG Deal
Friday marked another deadline for MSG Networks to pay its debt, but the day came and went with no such move. It’s widely believed that Dolan won’t extend financial support to the RSN, but even with that, shares of Sphere surged 8.55% on the week. The stock is up 15.58% year-to-date.
Some of that performance could be attributable to expectations that creditors may be willing to significantly reduce the RSN’s obligations this year — speculation that surfaced well in advance of the Amazon rumor.
The January ebullience around Sphere stock could also be the result of the Las Vegas venue adding some big names to its 2025 calendar as well as hope among investors that the company will reveal expansion plans this year.
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Last Comments ( 2 )
Gosh, Vince. Such an upbeat message. Kindness abounds.
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