The stock market has tumbled 10% over the past month with President Donald Trump’s escalating trade war creating uncertainty in the economy and pushing the S&P 500 to its first “correction” since 2023.
One of the hardest-hit stocks has been Sphere Entertainment, which operates the eponymous Las Vegas venue and MSG Networks. On Thursday, shares of the Jim Dolan-controlled company closed at $30.94, down 35% over the last month and at a level last seen in January 2024.
Two weeks ago, Sphere reported financial results for the three months ending Dec. 31. Revenue dipped 2% to $308 million with a net loss of $126 million for the quarter. The company also warned that bankruptcy is an option for the regional sports network if can’t refinance its $804 million in debt that originally came due last Oct. 11. The RSN’s debt sits within the MSG Networks arm, and creditors can’t make a claim on Sphere. The company and its lenders have entered into several forbearance agreements to extend the deadline, with the current expiration date on March 26.
The stock sank 14% to $37.69 on March 3 when Sphere reported its earnings.
During the earnings call, Wall Street analysts focused almost exclusively on the Sphere segment in their questions for Dolan, including future acts at the $2.3 billion venue and the company’s next Sphere project, which is being funded by the Department of Culture and Tourism in Abu Dhabi.
On Tuesday, Macquarie analyst Paul Golding published a new research note on the company and reduced his price target from $45 to $40. He cited the continued MSG Networks debt negotiations “potentially raising risk” of some contribution from the parent company to “save Networks and close a refi after a tough Altice fight.”
On Jan. 1, Altice blacked out MSG channels for its Optimum cable subscribers after the two parties were unable to renew their carriage agreement. It took nearly two months to reach a deal.
“Matters like the step-down in Sphere Experience show count, fluctuations in the ad business, and MSGN work-out persisting all weigh [on the stock],” Golding wrote.
Sphere shares closed up 1.87% Friday with the broader market rebounding after a federal government shutdown appeared to be averted.
(This story has been updated in the third paragraph to clarify that the RSN’s debt is within the MSG Networks arm, in the final paragraph with Friday’s closing stock price, and its headline has been adjusted to better reflect MSG Networks’ financial situation.)
