Operationally, the 18-28% reductions in Knicks and Rangers rights fees and elimination of escalators materially cut the largest variable expense line for MSG Networks, giving headroom to service debt and fund content. The right-of-first-refusal clause preserves long-term platform optionality despite the shorter contract tenor. Credit negatives include a 100% quarterly excess-cash sweep and obligatory Contingent Interest Units, effectively creating a synthetic PIK toggle that siphons cash after debt repayment. The penny warrant for 19.9% equity is dilutive to SPHR's stake and signals bargaining leverage held by MSG Sports. Still, because SPHR itself is not a guarantor and its assets are unpledged, holding-company risk is limited.