Sphere Entertainment Stock Drops as Firm Says MSG Networks Bankruptcy Possible

Shares of Sphere Entertainment (

SPHR

) slid Monday after the company reported declining second-quarter revenue and said its MSG Networks unit may pursue bankruptcy if it can’t refinance its debt.

Sphere, which operates the eponymous concert and entertainment arena in Las Vegas, posted quarterly revenue that fell 2% year-over-year to $308.3 million, although it was higher than Visible Alpha estimates. The company registered a loss of $3.49 per share, more than a dollar wider than analysts’ expectations.

While revenue at the Sphere venue ticked 1% higher to $169.0 million, it fell 5% to $139.3 million at the firm’s MSG Networks division. Sphere Entertainment said if it can’t refinance the regional sports network’s debt that came due Oct. 11, “it is probable that MSG Networks and/or its subsidiaries would seek bankruptcy protection or the lenders would foreclose on the MSG Networks collateral securing the credit facilities.”

Sphere Entertainment shares fell more than 5% to $41.43 intraday Monday. They are
down nearly 7%
over the past 12 months but up roughly 2.7% since the start of 2025.

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