The New York Knicks are hoping to get back to the NBA finals after dealing for star forward Karl Anthony-Towns in the offseason. The Knicks are sitting at 40-20 and are in third place in the Eastern Conference standings.
Unfortunately, while things are going well on the court, things aren’t going quite so well off the court, according to Awful Announcing.
MSG Network, which broadcasts the Knicks’ local games, is looking down the barrel of bankruptcy. Sphere Entertainment warned that its MSG Networks could be looking at a bleak future.
“As part of negotiations in connection with the work-out of the MSGN Term Loan Facility, MSG Networks has sought to renegotiate media rights agreements prior to expiration, including to reduce the fees thereunder,” Sphere wrote in an SEC filing.
“In the absence of renegotiation and in the event of bankruptcy proceedings, MSG Networks may seek to discharge one or more of those agreements as part of a bankruptcy proceeding.
“If MSG Networks is not able to achieve a refinancing or work-out of its indebtedness, the Company believes it is probable that MSG Networks Inc. and/or its subsidiaries would seek bankruptcy protection or the lenders would foreclose.”
It will be interesting to see how the situation plays out.
In the meantime, the Knicks will focus on getting back to the NBA finals.
