Exclusive | MSG Networks in talks to avoid bankruptcy possibly with help of Amazon: sources

MSG Networks, the embattled cable TV station that airs New York Knicks and Rangers games, is in talks to reach a deal to avoid bankruptcy as soon as Friday — and insiders speculate that help could be coming from a deep-pocketed media player like Amazon, The Post has learned.The sports channel controlled by billionaire Knicks owner James Dolan — currently blacked out for about 1 million New York-area subscribers because of a contract dispute with the Optimum cable network — is scrambling to restructure its debt with a group of lenders led by JPMorgan who are owed $829 million.MSG Networks in October defaulted on its loans but lenders have extended the payment deadline multiple times, most recently from Jan.10 to Friday at midnight.

This time, the aim is to reach a deal rather than simply extend the deadline again, according to sources briefed on the discussions.“Talks are ongoing,” sources close to the situation said on Friday afternoon.MSG Networks did not return calls and JPMorgan declined to comment.To make a deal happen, sources speculate that MSG will take cash from a new, outside investor to refinance the crippling debt load — and hand over a stake in the cable business in return.No deal would impact Dolan’s ownership of the Knicks and Rangers, the sources added.Chatter is now circulating that one possible solution would be to partner with Amazon, whose Prime video service already has a deal with Diamond Sports, the nation’s largest operator of so-called RSNs, or regional sports networks, to broadcast games for pro sports teams nationwide.Amazon is also an investor in the YES Network that airs Yankees and Nets games, with Prime now airing weekly Yankees games in the New York City area.Amazon declined to comment.Sources said a key benefit in a deal with Amazon would be to give MSG Networks an alternative to Optimum.

The carriage dispute with the Altice USA-owned cable provider cost MSG Networks an estimated $10 million in lost revenue in Januar...