On Sunday, Juan Soto—the New York Mets’ pricey offseason acquisition—reported to spring training. Mets owner Steve Cohen may have won over Soto from the New York Yankees, but baseball’s richest owner is allied with another fellow New York sports owner in a different investment.
Cohen’s Point72 Asset Management hedge fund recently added more than 400,000 shares to its position in Sphere Entertainment, according to a Friday night SEC filing. Sphere is controlled by Jim Dolan, who also has voting control of the New York Knicks and Rangers via Madison Square Garden Sports. Point72 now owns 2.1 million shares, or a 7.3% stake in Sphere.
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Last year, Point72 acquired 1.56 million shares in Sphere during the second quarter, representing a 5.5% stake, and the fund added another 110,000 shares in the fall. Cohen first invested in Sphere at the end of 2023, but the firm sold the entire stake during the first quarter of 2024.
Point72 has roughly $37 billion in assets under management. A Point72 spokesperson declined to comment on the investment.
Cohen bumped his stake as lenders and Sphere Entertainment subsidiary MSG Networks continue negotiating terms of its unpaid debt. In October, $829 million in debt came due for the regional sports network, which broadcasts the NBA’s Knicks and NHL’s Rangers, Islanders, Devils and Sabres. MSG Networks and its lenders have agreed to multiple extensions, with the latest pushing the deadline for a deal to March 26. The rights fees for the Knicks and Rangers from MSG Networks are roughly $180 million this year.
“The nearest-term catalyst for Sphere shares hinges on the MSG Networks’ debt work-out outcome,” David Joyce, Seaport Research analyst, said in December research note. “Every $100 million of debt reduction could be worth nearly $3 a share to Sphere.”
MSG Networks represented 52% of Sphere Entertainment’s $1.03 billion in revenue for its latest fiscal year. The Sphere segment had an adjusted operating loss of $61.5 million, while MSG Networks had an operating profit of $142.3 million.
Sphere Entertainment shares closed at $48.20 on Friday, up 16% year to date.
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