Chase x MSG renewal, 10 years from September 2027

MSG is asking $72MM. The package is worth paying $64.2MM.

At $72MM in Year 1, the New Deal loses $19.9MM over ten years at a 10% return. Keep everything Chase has today, take the new assets and rights, drop three categories that do little for Chase, and the deal clears by $45.9MM at $64.2MM.

$72.0MM
MSG ask, Year 1
Current Deal fee of $56MM plus a $16MM step-up.
$69.8MM
Hard stop
Above this, the full New Deal loses money at 10%.
$64.2MM
iDEAL offer, Year 1
The recommended package at the price MSG can defend.
$7.8MM
Off the ask
In Year 1. Worth $70.8MM in present value across the term.

Where to draw the line

Year 1 fee, 3% escalator after
$56.0MMCurrent Deal
$64.2MMiDEAL offer
$65.1MMWalk-away on add-ons
$66.5MMMSG fair price
$69.8MMHard stop
$72.0MMMSG ask

The walk-away line is the Current Deal fee plus what the new assets, rights and categories are worth to Chase. MSG’s fair price is the new assets at MSG’s own current rate plus what the new categories really cost MSG to give up. Paying above the walk-away hands MSG the surplus Chase earns on the Current Deal.

The three deals side by side

NPV stated at 9/1/2027
Current DealNew Deal at MSG askiDEAL
Year 1 fee$56,000,000$72,000,000$64,226,481
Year 1 Tangible Value$56,696,331$63,762,578$63,762,578
Year 1 Intangible Value$27,060,346$31,488,330$30,802,426
Year 1 Estimated Total Value$83,756,677$95,250,909$94,565,004
Value per $1 of fee, Year 11.501.321.47
NPV at 8%+$89,515,352+$33,485,401+$98,804,746
NPV at 10%+$43,298,221-$19,883,668+$45,878,168
NPV at 12%+$2,721,320-$66,727,116-$577,817
Present value per $1 of fee at 10%1.080.971.08
Break-even Year 1 fee at 10%$60,753,062$69,817,270$69,262,756

Value is discounted at 8%, 10% and 12%, mid-year. The fee is discounted at 5.2%, the 10-year Treasury, because it is fixed by contract and paid at the start of each year.

Ten years of value against the fee

Nominal, by contract year
0$25MM$50MM$75MM$100MM2027-282028-292029-302030-312031-322032-332033-342034-352035-362036-37
Tangible Value, New Deal packageIntangible ValueFee at MSG askFee at iDEAL offer

Tangible Value slips from $63.8MM to $62.7MM as measured media wears and local TV shrinks, while the fee at the ask climbs from $72.0MM to $93.9MM. Intangible Value grows about 3.5% a year, which is what keeps the gap from widening faster.

Where the ask breaks

Year 1 dollars
New assets

Priced about right

The nine new assets add $7.1MM of Tangible Value. At MSG’s own current rate that is worth $6.6MM, and Chase gets about $1.07 for every $1.

New categories

Where the step-up goes wrong

The 26 new categories are worth $1.8MM a year to Chase and would cost MSG $3.9MM to give up. After the new assets, MSG is effectively charging $9.4MM for them.

Playoffs

Not in any figure here

Every value on this page is regular season only. Weighted by the chance of each run, Knicks and Rangers playoff exposure would add about $97MM in present value. It is upside, and it belongs in a per-round bank, not the base fee.

How the value is built

Every asset, then the rights, then ten years
01Asset scorecard

Every asset in the blueprint is valued as impressions x retention x CPM from the CAA rate card. Broadcast placements use measured Relo value from the 2025-26 season. Banks and funds are carried at face.

02Intangible Value

The marks, designation and exclusivity are valued in proportion to each property’s rights-bearing media. Presale and preferred purchase rights, and client hospitality for the Private Bank, are added. No property passes 42.3% intangible.

03Categories

Each category is priced from 25 comparable team deals scaled to all of MSG. Its value to Chase depends on how much of the likely buyer’s business competes with Chase, and on Chase’s 25.5% share of New York deposits.

04Ten-year forecast

Signage and national broadcast drift down about 1% a year. Local TV falls faster as the MSG Networks rights end after 2028-29. Hospitality and the rights grow. Banks rise 3% by contract.

05Discounting

Value is discounted at 8%, 10% and 12% because it is uncertain. The fee is discounted at 5.2% because it is fixed. Using 10% on the fee would make any deal look cheaper than it is.

Regular season basis. Year 1 is contract year 2027-28, rolled forward two seasons from 2025-26 measured metrics. All figures reconcile to the CAA BC valuation model. Items still needing sign-off: the 33% rights share on category deals, the chance MSG sells each category to a rival, presale take-up rates, the 20% business hospitality premium, and whether the marketing funds come out of the fee.