Point72 Asset Management, the hedge fund firm founded by Steve Cohen, has increased its investment in Sphere Entertainment, upping its stake to 7.3% as the company grapples with ongoing debt restructuring negotiations tied to its MSG Networks subsidiary, according to a report by Sportico.
The report cites a regulatory filing made on Friday as revealing that Point72 added more than 400,000 shares of Sphere Entertainment and now holds 2.1 million shares in the company, which is controlled by Jim Dolan, who also owns the New York Knicks and New York Rangers through Madison Square Garden Sports.
Point72 first acquired 1.56 million shares of Sphere in Q2 2023, representing a 5.5% stake, and added another 110,000 shares in the autumn. The hedge fund initially exited its position in early 2024 but has now rebuilt its stake.
With $37bn in assets under management, Point72’s latest move suggests confidence in Sphere’s long-term value, despite ongoing financial uncertainties. A spokesperson for the hedge fund declined to comment on the investment.
Cohen’s increased stake comes at a critical time, as MSG Networks, a key subsidiary of Sphere Entertainment, continues to negotiate terms on its $829m in outstanding debt. The regional sports network, which holds broadcasting rights for the Knicks, Rangers, Islanders, Devils, and Sabres, was due to repay the debt in October 2023 but has since secured multiple deadline extensions. The latest deadline is set for 26 March.
MSG Networks plays a vital role in Sphere’s financials, accounting for 52% of the company’s $1.03bn revenue in its most recent fiscal year. While MSG Networks generated $142.3m in operating profit, the Sphere segment — best known for its high-tech entertainment venue in Las Vegas —reported an adjusted operating loss of $61.5m.
Sphere Entertainment shares closed at $48.20 on Friday, up 16% year to date.
