The shrinking of the once-powerful MSG name has got to be bringing beads of sweat to the brow of owner James Dolan.
James Dolan’s MSG Networks is sounding out suitors, several sources told The Post.
The regional sports network, which has the TV rights for the Knicks, Rangers, Devils, Islanders and other sports teams, collects roughly $5 per subscriber per month — among the highest in the country, SNL Kagan said.
ESPN, a national network, charges $7.86.
The sales process is believed to be rather young and there is no guarantee a deal will be made.
“Dolan’s gone to his friends” to gauge interest, a source said, referring in part to Guggenheim Partners Executive Chairman Alan Schwartz, who is on the board of Madison Square Garden, a company that shares ownership with MSGN.
Investment bank Guggenheim has experience selling media assets.
MSG Networks reaches roughly 7 million homes in New York and adjoining states. Its enterprise value is $3 billion, including a market cap of $1.7 billion and debt.
Its shares have risen 7.2 percent since Feb. 17, to $22.95 at Monday’s close.
If a sale happens, Dolan could use the proceeds to help fund a bid for The Garden — the family-controlled entity that owns the Manhattan arena, the Knicks and Rangers and other arenas and venues across the country , sources said.
In October 2015, The Garden spun off its media assets.
“I think the point of the spin-off was to sell the cable business a year or two later,” said one analyst who requested anonymity.
MSGN is the only stand-alone, publicly traded RSN.
Verizon is one possible buyer for MSGN, two sources said, noting that the wireless giant needs content.
AT&T is seeking to buy RSNs to add to the five it already owns — including Root Sports in Pittsburgh — but might be reluctant to make a purchase now, as it is trying to win regulatory approval to buy Time Warner, one RSN expert said.
An MSGN sale will not be easy, several sources said, as RSNs are considered mature and perhaps even a melting ice cube as viewers opt for skinny bundles and cord-cutting.
Plus, there are some MSGN contracts with local cable companies expiring soon and hammering out deals for more money could be tough.
Fox Sports Networks wants more sports content, but is likely not interested because it already owns New York’s YES Network, which televises Yankees games, sources said.
Comcast, which owns a piece of Mets’ rights-owner SNY, another Big Apple RSN, is said to be looking to exit the sector — not grow it, according to the RSN expert.
Last year, James Dolan, MSGN’s executive chairman, and his family received $2 billion from selling Cablevision and should have little trouble funding a bid for The Garden if they choose to make such a move, the analyst said.
On a positive note, if the board of MSG, which some think is undervalued, were interested in a quick MSGN sale, it might agree to reasonable rights fee increases, the RSN expert said.
MSG Networks and Verizon declined comment.