[8-K] Madison Square Garden Sports Corp. Reports Material Event
Madison Square Garden Sports (NYSE: MSGS) filed an Item 7.01 Form 8-K disclosing material changes to its media-rights contracts with MSG Networks, effective January 1, 2025.
- New York Knicks: annual rights fee cut 28%, escalator removed, term extended to end-2028-29 season with MSGN right-of-first-refusal.
- New York Rangers: annual fee cut 18%, escalator removed, same term extension.
- In consideration, MSG Sports received penny warrants exercisable for 19.9% of MSG Networks鈥� equity.
The revisions arise from MSGN鈥檚 lender work-out. While lower guaranteed fees pressure near-term revenue and EBITDA, the equity stake offers upside if MSGN鈥檚 restructuring succeeds.
Madison Square Garden Sports (NYSE: MSGS) ha presentato un modulo 8-K, voce 7.01, per comunicare modifiche significative ai contratti sui diritti media con MSG Networks, valide dal 1掳 gennaio 2025.
- New York Knicks: riduzione del canone annuale del 28%, eliminazione dell'aumento automatico, proroga del contratto fino alla fine della stagione 2028-29 con diritto di prelazione per MSGN.
- New York Rangers: riduzione del canone annuale del 18%, eliminazione dell'aumento automatico, stessa proroga contrattuale.
- In cambio, MSG Sports ha ricevuto penny warrants esercitabili per il 19,9% del capitale di MSG Networks.
Le modifiche derivano dalla ristrutturazione del debito di MSGN. Sebbene la diminuzione delle tariffe garantite riduca i ricavi e l'EBITDA nel breve termine, la partecipazione azionaria offre potenziali benefici se la ristrutturazione avr脿 successo.
Madison Square Garden Sports (NYSE: MSGS) present贸 un formulario 8-K, punto 7.01, divulgando cambios importantes en sus contratos de derechos medi谩ticos con MSG Networks, vigentes a partir del 1 de enero de 2025.
- New York Knicks: reducci贸n del pago anual de derechos en un 28%, eliminaci贸n del ajuste escalonado, extensi贸n del contrato hasta el final de la temporada 2028-29 con derecho de tanteo para MSGN.
- New York Rangers: reducci贸n del pago anual en un 18%, eliminaci贸n del ajuste escalonado, misma extensi贸n del contrato.
- Como contraprestaci贸n, MSG Sports recibi贸 penny warrants ejercitables para el 19,9% del capital de MSG Networks.
Las modificaciones surgen de la reestructuraci贸n de la deuda de MSGN. Aunque las tarifas garantizadas m谩s bajas presionan los ingresos y EBITDA a corto plazo, la participaci贸n accionaria ofrece potencial de crecimiento si la reestructuraci贸n tiene 茅xito.
Madison Square Garden Sports (NYSE: MSGS)電� 2025雲� 1鞗� 1鞚茧秬韯� 氚滍毃霅橂姅 MSG Networks鞕�鞚� 氙鸽敂鞏� 甓岆Μ 瓿勳暯鞐� 欷戨寑頃� 氤�瓴� 靷暛鞚� 瓿店皽頃橂姅 7.01 頃鞚� 8-K 鞏戩嫕鞚� 鞝滌稖頄堨姷雼堧嫟.
- 雺挫殨 雼夓姢(New York Knicks): 鞐瓣皠 甓岆Μ耄� 28% 鞚疙晿, 甓岆Μ耄� 靸侅姽 臁绊暛 鞝滉卑, 瓿勳暯 旮瓣皠鞚� 2028-29 鞁滌 膦呺旯岇 鞐办灔頃橂┌ MSGN鞐� 鞖办劆 順戩儊甓� 攵�鞐�.
- 雺挫殨 霠堨澑鞝�鞀�(New York Rangers): 鞐瓣皠 甓岆Μ耄� 18% 鞚疙晿, 甓岆Μ耄� 靸侅姽 臁绊暛 鞝滉卑, 霃欖澕頃� 瓿勳暯 旮瓣皠 鞐办灔.
- 雽�臧�搿� MSG Sports電� MSG Networks 歆�攵� 19.9%毳� 頄夓偓頃� 靾� 鞛堧姅 韼橂媹 鞗岆煱韸�毳� 氚涭晿鞀惦媹雼�.
鞚措矆 靾橃爼鞚� MSGN鞚� 雽�於滌瀽 甑“臁办爼鞐愳劀 牍勲’霅橃棃鞀惦媹雼�. 氤挫灔霅� 靾橃垬耄� 臧愳唽搿� 雼赴 靾橃澋瓿� EBITDA電� 鞎曤皶鞚� 氚涭毵�, 歆�攵� 彀胳棳電� MSGN 甑“臁办爼 靹标车 鞁� 靸侅姽 鞛犾灛霠レ潉 鞝滉车頃╇媹雼�.
Madison Square Garden Sports (NYSE : MSGS) a d茅pos茅 un formulaire 8-K, point 7.01, r茅v茅lant des modifications importantes de ses contrats de droits m茅dias avec MSG Networks, effectives 脿 partir du 1er janvier 2025.
- New York Knicks : r茅duction de 28 % des frais annuels de droits, suppression de la clause d'indexation, prolongation du contrat jusqu'脿 la fin de la saison 2028-29 avec un droit de premier refus pour MSGN.
- New York Rangers : r茅duction de 18 % des frais annuels, suppression de la clause d'indexation, m锚me prolongation de contrat.
- En contrepartie, MSG Sports a re莽u des penny warrants exer莽ables pour 19,9 % du capital de MSG Networks.
Ces r茅visions r茅sultent du r茅am茅nagement de la dette de MSGN. Bien que la r茅duction des frais garantis p猫se sur les revenus et l'EBITDA 脿 court terme, la participation au capital offre un potentiel de valorisation si la restructuration r茅ussit.
Madison Square Garden Sports (NYSE: MSGS) hat ein Formular 8-K, Punkt 7.01, eingereicht, in dem wesentliche 脛nderungen der Medienrechtevertr盲ge mit MSG Networks offengelegt werden, g眉ltig ab dem 1. Januar 2025.
- New York Knicks: j盲hrliche Rechtegeb眉hr um 28% gesenkt, Steigerungsklausel entfernt, Vertragslaufzeit bis Ende der Saison 2028-29 verl盲ngert mit Vorkaufsrecht f眉r MSGN.
- New York Rangers: j盲hrliche Geb眉hr um 18% gesenkt, Steigerungsklausel entfernt, gleiche Vertragsverl盲ngerung.
- Im Gegenzug erhielt MSG Sports Penny Warrants, die 19,9% der MSG Networks-Anteile aus眉bbar sind.
Die 脛nderungen resultieren aus der Kreditgeber-Restrukturierung von MSGN. Obwohl die niedrigeren garantierten Geb眉hren kurzfristig Umsatz und EBITDA belasten, bietet die Beteiligung ein Aufw盲rtspotenzial, falls die Restrukturierung gelingt.
- Received penny warrants for 19.9% equity stake in MSG Networks, offering potential upside if the network鈥檚 restructuring succeeds
- Extended media-rights agreements through the 2028-29 season, ensuring long-term broadcast stability and right-of-first-refusal protections
- Annual rights fee for the New York Knicks reduced by 28%, materially lowering predictable cash revenue
- Annual rights fee for the New York Rangers reduced by 18%, adding further revenue pressure
- Elimination of the annual rights-fee escalators removes future inflation protection and growth
Insights
TL;DR 鈥� Rights-fee cuts outweigh warrant upside; earnings hit likely.
The Knicks and Rangers collectively generate the bulk of MSGS鈥檚 predictable cash flow, so a 28%/18% fee reduction materially dents high-margin revenue from 2025 forward. Eliminating escalators removes an inflation hedge, compounding the impact. Although the 19.9% penny warrants could yield value if MSGN restructures successfully, their payoff is uncertain and non-cash in the near term. Expect consensus EBITDA estimates to move lower until MSGN valuation clarity emerges. Rating: negative.
TL;DR 鈥� Strategic trade-off: lower fees for equity and term security.
Extending both deals to 2028-29 locks in broadcast continuity, critical for fan engagement and sponsorship. The warrants align MSGS with MSGN鈥檚 turnaround, potentially recapturing lost economics if the network delevers. However, near-term P&L pressure is unavoidable and may limit flexibility for roster spending. Overall impact is mixed but manageable given the organization鈥檚 diversified revenue streams.
Madison Square Garden Sports (NYSE: MSGS) ha presentato un modulo 8-K, voce 7.01, per comunicare modifiche significative ai contratti sui diritti media con MSG Networks, valide dal 1掳 gennaio 2025.
- New York Knicks: riduzione del canone annuale del 28%, eliminazione dell'aumento automatico, proroga del contratto fino alla fine della stagione 2028-29 con diritto di prelazione per MSGN.
- New York Rangers: riduzione del canone annuale del 18%, eliminazione dell'aumento automatico, stessa proroga contrattuale.
- In cambio, MSG Sports ha ricevuto penny warrants esercitabili per il 19,9% del capitale di MSG Networks.
Le modifiche derivano dalla ristrutturazione del debito di MSGN. Sebbene la diminuzione delle tariffe garantite riduca i ricavi e l'EBITDA nel breve termine, la partecipazione azionaria offre potenziali benefici se la ristrutturazione avr脿 successo.
Madison Square Garden Sports (NYSE: MSGS) present贸 un formulario 8-K, punto 7.01, divulgando cambios importantes en sus contratos de derechos medi谩ticos con MSG Networks, vigentes a partir del 1 de enero de 2025.
- New York Knicks: reducci贸n del pago anual de derechos en un 28%, eliminaci贸n del ajuste escalonado, extensi贸n del contrato hasta el final de la temporada 2028-29 con derecho de tanteo para MSGN.
- New York Rangers: reducci贸n del pago anual en un 18%, eliminaci贸n del ajuste escalonado, misma extensi贸n del contrato.
- Como contraprestaci贸n, MSG Sports recibi贸 penny warrants ejercitables para el 19,9% del capital de MSG Networks.
Las modificaciones surgen de la reestructuraci贸n de la deuda de MSGN. Aunque las tarifas garantizadas m谩s bajas presionan los ingresos y EBITDA a corto plazo, la participaci贸n accionaria ofrece potencial de crecimiento si la reestructuraci贸n tiene 茅xito.
Madison Square Garden Sports (NYSE: MSGS)電� 2025雲� 1鞗� 1鞚茧秬韯� 氚滍毃霅橂姅 MSG Networks鞕�鞚� 氙鸽敂鞏� 甓岆Μ 瓿勳暯鞐� 欷戨寑頃� 氤�瓴� 靷暛鞚� 瓿店皽頃橂姅 7.01 頃鞚� 8-K 鞏戩嫕鞚� 鞝滌稖頄堨姷雼堧嫟.
- 雺挫殨 雼夓姢(New York Knicks): 鞐瓣皠 甓岆Μ耄� 28% 鞚疙晿, 甓岆Μ耄� 靸侅姽 臁绊暛 鞝滉卑, 瓿勳暯 旮瓣皠鞚� 2028-29 鞁滌 膦呺旯岇 鞐办灔頃橂┌ MSGN鞐� 鞖办劆 順戩儊甓� 攵�鞐�.
- 雺挫殨 霠堨澑鞝�鞀�(New York Rangers): 鞐瓣皠 甓岆Μ耄� 18% 鞚疙晿, 甓岆Μ耄� 靸侅姽 臁绊暛 鞝滉卑, 霃欖澕頃� 瓿勳暯 旮瓣皠 鞐办灔.
- 雽�臧�搿� MSG Sports電� MSG Networks 歆�攵� 19.9%毳� 頄夓偓頃� 靾� 鞛堧姅 韼橂媹 鞗岆煱韸�毳� 氚涭晿鞀惦媹雼�.
鞚措矆 靾橃爼鞚� MSGN鞚� 雽�於滌瀽 甑“臁办爼鞐愳劀 牍勲’霅橃棃鞀惦媹雼�. 氤挫灔霅� 靾橃垬耄� 臧愳唽搿� 雼赴 靾橃澋瓿� EBITDA電� 鞎曤皶鞚� 氚涭毵�, 歆�攵� 彀胳棳電� MSGN 甑“臁办爼 靹标车 鞁� 靸侅姽 鞛犾灛霠レ潉 鞝滉车頃╇媹雼�.
Madison Square Garden Sports (NYSE : MSGS) a d茅pos茅 un formulaire 8-K, point 7.01, r茅v茅lant des modifications importantes de ses contrats de droits m茅dias avec MSG Networks, effectives 脿 partir du 1er janvier 2025.
- New York Knicks : r茅duction de 28 % des frais annuels de droits, suppression de la clause d'indexation, prolongation du contrat jusqu'脿 la fin de la saison 2028-29 avec un droit de premier refus pour MSGN.
- New York Rangers : r茅duction de 18 % des frais annuels, suppression de la clause d'indexation, m锚me prolongation de contrat.
- En contrepartie, MSG Sports a re莽u des penny warrants exer莽ables pour 19,9 % du capital de MSG Networks.
Ces r茅visions r茅sultent du r茅am茅nagement de la dette de MSGN. Bien que la r茅duction des frais garantis p猫se sur les revenus et l'EBITDA 脿 court terme, la participation au capital offre un potentiel de valorisation si la restructuration r茅ussit.
Madison Square Garden Sports (NYSE: MSGS) hat ein Formular 8-K, Punkt 7.01, eingereicht, in dem wesentliche 脛nderungen der Medienrechtevertr盲ge mit MSG Networks offengelegt werden, g眉ltig ab dem 1. Januar 2025.
- New York Knicks: j盲hrliche Rechtegeb眉hr um 28% gesenkt, Steigerungsklausel entfernt, Vertragslaufzeit bis Ende der Saison 2028-29 verl盲ngert mit Vorkaufsrecht f眉r MSGN.
- New York Rangers: j盲hrliche Geb眉hr um 18% gesenkt, Steigerungsklausel entfernt, gleiche Vertragsverl盲ngerung.
- Im Gegenzug erhielt MSG Sports Penny Warrants, die 19,9% der MSG Networks-Anteile aus眉bbar sind.
Die 脛nderungen resultieren aus der Kreditgeber-Restrukturierung von MSGN. Obwohl die niedrigeren garantierten Geb眉hren kurzfristig Umsatz und EBITDA belasten, bietet die Beteiligung ein Aufw盲rtspotenzial, falls die Restrukturierung gelingt.
FAQ
By how much was MSGS鈥檚 Knicks media rights fee reduced?
What equity interest did MSG Sports obtain in MSG Networks?
When do the new Knicks and Rangers media rights agreements expire?
Why were the media rights agreements amended?
Does the elimination of escalators affect future fee growth for MSGS?
Is this information considered filed under the Exchange Act?
