Content Production ChallengesThe Sphere Experience content is prohibitively expensive to produce, with only one or two shows developed per year, limiting monetization.
Financial RiskEvery core component of the Sphere platform relies on the Las Vegas ecosystem, and attempting to expand beyond it only magnifies the flaws and increases financial risk.
Valuation ConcernsThe NPV of cash flows for MSG Networks is lower than the net debt, leading to a valuation of $0 in base and bull cases.